The McKinsey Mind (Book Summary)

The book is structured according to a six part strategic problem-solving model:

I.      Business Need (not covered in depth in the book)

A.    Competitive

B.    Organizational

C.     Financial

D.    Operational

II.     Analyzing

A.    Framing the problem

1. Resist the temptation of accepting the client’s diagnosis of the problem, esp. when the client starts by asking for a specific solution
2. Separate the problem into MECE (mutually exclusive & collectively exhaustive) issue (logic trees)
3. Formulate an initial hypothesis prior to performing analysis (for the sake of efficiency)
4. Establish what assumptions must be true in order for your hypothesis to be correct (referred to in the book as the Quick & Dirty Test = QDT). The recommended approach for this is an issue tree of (preferably yes or no) questions.

B.    Designing the analysis

1. Determine which analyses you need to conduct in order to prove or disprove the initial hypothesis (without having to boil the ocean).
2. Prioritize the analyses so that the “dominant” questions are answered first
3. Assign the analyses, availing yourself with as much analytical support for your decisions as your situation (time, resources) allows. Include: responsible party; likely data sources; brief description of the expected end product; due date
4. In most situations, scientific exactitude is counterproductive

C.     Gathering the data

1. Pay particular attention to outliers (esp. high performers – aka “bright spots” who apply best practices that low performers on are not)
2. When interviewing

• Draft a brief interview guide comprising the three or four most important questions.
• Share the interview guide with the interviewee ahead of time
• Interview in pairs
• Set the interviewee at ease by explaining the ultimate positive objection that the information will be used for. Avoid sensitive issues as the beginning.
• Listen, don’t lead. You do not need to cover every question with every interviewee; if you strike gold on a question, stay there until the vein is exhausted.
• Close with, “Is there anything I forgot to ask?”
• Follow up with a specific thank-you note

D.    Interpreting the results

1. Always ask, “What is the so-what?” from the perspective/focus of the CEO
2. Perform sanity checks (via back-of-the-envelope math)
3. When the facts contradict your hypothesis, don’t suppress them; instead, change your hypothesis
4. Prioritize the CEO-focused recommendations that (a) have the most impact for the client (b) fit the client’s capabilities / ability to implement
5. Ensure solutions can be explained concisely (“elevator test”)
6. Ensure solutions consider outside forces – competitors, suppliers, customers, and regulators.  

III.   Presenting

A.    Structure the presentation

1. Your first slide, the agenda slide, should preview the structure of the presentation
2. Provide a brief background of the problem (“Recent Content” = situation and complication/root causes)
3. After stating the problem, lead with the conclusion (inductive reasoning – “ We recommend X because of reasons A, B, and C”)
4. One message per chart
5. Document all data sources

B.    Generate buy-in for your solution

1. Never shock your audience; preview the presentation with relevant decision makers in advance of presenting to larger groups. When previewing, encourage people to expose any errors you made or opportunities you missed.
2. With small groups of executives, print outs often work better than electronic presentations

IV.   Managing

A.    Team: Assembling, motivating, & developing

1. Select your team based on intellect, experience, and interpersonal skills
2. Keep information flowing – overcommunication is better than under-communication
3. A little bonding (in a non-work location) goes a long way
4. Offer praise and recognition
5. Set high expectations
6. Evaluate with balance, regularity, and structure using a grid of key skill areas (analytical, interpersonal, …) and include specific expectations for consultants at each level; include 360 input. [With regard to “balance”, strive for the volume of positive feedback to be at least 2x negative feedback.]

B.    Client: Informing, involving; & inspiring

1. Put the client first
2. Share thought leadership
3. Perform community service
4. Do not over-promise
5. Proactively involve the client (in interviewing, problem solving, etc.), even though this will likely add some inefficiency
6. Focus on the ability of the client to be able to implement your solution; provide a clear implementation plan with exactly what should be done, by whom, and when; also establish goals for what success looks like
7. Share, then transfer responsibility
8. Make the client a hero
9. Pluck low hanging fruit (quick wins) with a pilot program

C.     Self

1. Find your own mentor(s)
2. Hit singles – “Getting on base consistently is better than trying to hit home runs and striking out nine times out of ten.”
3. Make your boss look good
4. If you feel a power vacuum, fill it before somebody else does
5. Delegate around your limitations
6. Respect your time to avoid burn-out; keep work and family separate

V.    Implementation (not covered in depth in the book)

A.    Dedication of sufficient resources

B.    Reaction to stumbling blocks

C.     Completion of necessary tasks

D.    Iteration to drive continual improvement

VI.   Leadership (not covered in depth in the book)

A.    Conceiving a strategic vision

B.    Inspiring the organization

C.     Delegating authority