Cracking The McKinsey Mind_Part Two: Designing The Analysis

 Cracking The McKinsey Mind_Part Two: Designing The Analysis

 

2.      Designing the Analysis

 

2.1          The McKinsey Way

a.           Find the key drivers.

Drill down to the core of the problem instead of picking apart each and every piece.

b.           Look at the big picture.

c.           Don’t boil the ocean.

Work smarter, not harder.

d.           Sometimes you have to let the solution come to you.

 

2.2          Lesson learned and implementation illustration

a.           Let your hypothesis determine you analysis.

b.           Get your analytical priorities straight.

c.           Forget about absolute precision.

We don’t need to have the perfect model. We just need to have something that’s better than what we have today. Let’s go out and make some money, and then we can continue to make it better over time.

d.           Triangulate around the tough problems

2.3          Implementation Guidance

For each issue or subissue, you should list the following elements:

a.           Your initial hypothesis as to the answer

b.           The analyses that must be done to prove or disprove that hypothesis, in order of priority

c.           The data necessary to perform the analysis

d.           The likely sources of the data (e.g., Census data, focus groups, interviews)

e.           A brief description of the likely end product of each analysis

f.            The person responsible for each end product (you or a member of your team)

g.           The due date for each end product

 

Issue/Hypothesis	Analyses	Data Sources	End Product	Responsibility	Due Date
Can we implement the necessary changes to the production process? Yes
Does the new process require special facilites? No	Technical Specifications	Articles, Interviews	Chart	Tom	3-Jun
	List of facilities that meet new criteria	Facilities management, interviews	List	Tom	5-Jun
If it does require special facilities, can we acquire them? Yes	Map of “facilities gap”	Facilities management, thrum-mat line supervisors, interviews	Chart	Belinda	7-Jun
	Souces of required facilities/equipment	Operations, trade publications	List	Belinda	7-Jun
	Costs to fill gaps	Operations, contractors, publications	Table	Belinda	10-Jun
	Effect on project rate of return	Finance department, prior analysis	Spreadsheet	Terry	12-Jun

Keep crackin’

Jeff Wang Best

31 Dec, 2008

 

Self Re-Evaluation

Well, I was doing a great job before. But, that’s BEFORE, NOT now.

I found myself not as passionate as I used to be and was distracted by other affairs. I have to say that’s too bad and it’s now the right time for me to re-evaluate myself and get back to the right track. Otherwise, my dream, my personal development, were just like talking. Nothing will be achieved.

Good oppotunities are ahead, I gotta do something and make everything back to the right track.

Well, I am not doing great these days. But I will work hard and be the Jeffwangbest.

Keep workin’

Jeff

28 Dec, 2008

 

Cracking The McKinsey Mind_Part One: Framing The Problem

Cracking The McKinsey Mind_Part One: Framing The Problem

 

The McKinsey Mind is definitely a great book to read. Starting from today, I will try to crack this book, even learning at a low speed (which could make the learning more effective and fruitful), while at the same time jot down some notes here for possible future use.

 

Part One: Framing The Problem:

 

1.         Framing the Problem

 

1.1        Structure

Although McKinsey & Company often uses the term fact-based to describe it, the McKinsey problem-solving process begins not with facts but with structure. Structure can refer to particular problem-solving frameworks or more generally to defining the boundaries of a problem and then breaking it down into its component elements.

 

a.        Without Structure, your ideas won’t stand up.

b.        Use structure to strengthen your thinking.

 

1.2        MECE

Mutually Exclusive, Collectively Exhaustive

 

1.3        Hypothesis

Having reduced the problem to its essential components through the use of appropriate frameworks, you are ready to embark on the next step in the process of framing it: forming a hypothesis as to its likely solution.

 

For a start, a hypothesis provides you and your team with a problem-solving road map that will lead you to ask the right questions and perform the correct analyses to get to your answer.

 

a.        An initial hypothesis will save your time.

b.        An initial hypothesis will make your decision making more effective.

 

1.4        Issue tree & Logic tree

The most common tool McKinsey-ites use to break problems apart is the logic tree, a hierarchical listing of all the components of a problem.

 

An issue tree is the evolved cousin of the logic tree.

 

Where a logic tree is simply a hierarchical grouping of elements, an issue tree is the series of questions or issues that must be addressed to prove or disprove a hypothesis. Issue trees bridge the gap between structure and hypothesis.

 

1.5        QDT (Quick and Dirty Test)

The QDT is simply this: what assumptions are you making that need to be true in order for your hypothesis to be true? If any of these assumptions is false, then the hypothesis is false.

 

Conclusion

 

By using structured frameworks to create an initial hypothesis, you will enable yourself and your team to select the analyses and areas of research that will allow you to reach a robust conclusion in the shortest possible time.

 

The flow of the McKinsey Way:

1.      There should be a problem to resolve

2.      Build a logic tree to break it apart

3.      Come up with some initial hypotheses as likely solution

4.      Found some initial hypotheses that passed that QDT (Quick Dirty Test)

5.      Build an issue tree for each hypotheses and try to get the problem resolved

 

Keep crackin’

Jeff Wang Best

15 Dec, 2008