1、PROBLEM SOLVING WITH THE MCKINSEY METHODMembrane,For Better TomorrowMembrane,For Better TomorrowMCKINSEY PROBLEM SOLVING APPROACHIntuitionDataProblemSolutionBusiness Need Competitive Organizational Financial OperationalAnalyzing Framing Designing Gathering InterpretingPresenting Structure Buy-inImpl
2、ementation Dedication Reaction Completion IterationLeadership Vision Inspiration DelegationManaging Team Client SelfFocus of todays discussionFRAMING THE PROBLEM KEY TIPS Start with structure,not data Break the problem into“MECE”parts(using issue trees)Form a sound hypothesis as to the answer Identi
3、fy what conditions are necessary and sufficient to prove the hypothesis(using hypothesis trees)Membrane,For Better TomorrowMembrane,For Better TomorrowFRAMING THE PROBLEM ISSUE TREE EXAMPLEProblem:How can the Acme Widget Company increase profits from its existing business lines?Membrane,For Better T
4、omorrowMembrane,For Better TomorrowFRAMING THE PROBLEM ISSUE TREE EXAMPLEHow can Acme increase profits from existing business lines?Membrane,For Better TomorrowMembrane,For Better TomorrowFRAMING THE PROBLEM ISSUE TREE EXAMPLEHow can Acme increase profits from existing business lines?From WidgetsFro
5、m Thrum-mats From GrommetsWhich Business Lines?Membrane,For Better TomorrowMembrane,For Better TomorrowFRAMING THE PROBLEM ISSUE TREE EXAMPLEHow can Acme increase profits from existing business lines?From WidgetsFrom Thrum-mats From GrommetsIncrease RevenuesDecrease ExpensesWhich Business Lines?How?
6、Membrane,For Better TomorrowMembrane,For Better TomorrowFRAMING THE PROBLEM ISSUE TREE EXAMPLEHow can Acme increase profits from existing business lines?From WidgetsFrom Thrum-mats From GrommetsIncrease RevenuesDecrease ExpensesDecrease raw material costsDecrease labor costsDecrease overhead costsWh
7、ich Business Lines?How?How?Membrane,For Better TomorrowMembrane,For Better TomorrowFRAMING THE PROBLEM ISSUE TREE EXAMPLEHow can Acme increase profits from existing business lines?From WidgetsFrom Thrum-mats From GrommetsIncrease RevenuesDecrease ExpensesDecrease raw material costsDecrease labor cos
8、tsDecrease overhead costsNegotiate wage concessionsImplement a labor-saving production processWhich Product Lines?How?How?How?Negotiate higher productivity quotasFRAMING THE PROBLEM ISSUE TREE ASSIGNMENTProblem:How can I have more money at the end of each month without incurring debt?Membrane,For Be
9、tter TomorrowMembrane,For Better TomorrowISSUE TREES VS.HYPOTHESIS TREES Issue trees identify all potential ideas Issue trees ask“How”we could meet a desired outcome Issue trees are excellent for organizing ideas in a“MECE”manner Complete issue trees uncover all potential ideas Hypothesis trees focu
10、s and build up an argument or conclusion Hypothesis trees ask“Why”we believe something to be true Hypothesis trees are excellent for narrowing down investigation to essentials Complete hypothesis trees build up a complete argument Hypothesis trees focus on the“so what”of any data that is presentedMe
11、mbrane,For Better TomorrowMembrane,For Better TomorrowFRAMING THE PROBLEM HYPOTHESIS TREE EXAMPLEHypothesis:We can increase the profitability of the Acme Widget Company through a streamlined production process for thrum-mats.Membrane,For Better TomorrowMembrane,For Better TomorrowFRAMING THE PROBLEM
12、 HYPOTHESIS TREE EXAMPLEWe can increase thrum-mat profitability with the new production process.Membrane,For Better TomorrowMembrane,For Better TomorrowFRAMING THE PROBLEM HYPOTHESIS TREE EXAMPLEWe can increase thrum-mat profitability with the new production process.It will reduce our costs.Our orga
13、nization can implement the necessary changes.We can maintain product quality while implementing the process.Why?Membrane,For Better TomorrowMembrane,For Better TomorrowFRAMING THE PROBLEM HYPOTHESIS TREE EXAMPLEWe can increase thrum-mat profitability with the new production process.It will reduce ou
14、r costs.Our organization can implement the necessary changes.We can maintain product quality while implementing the process.The process does not require new facilities.The process does not require new skills.Why?Why?FRAMING THE PROBLEM HYPOTHESIS TREE ASSIGNMENTHypothesis:The best way for me to have
15、 more money at the end of the month is to spend less through comparison shopping.DESIGNING THE ANALYSIS KEY TIPS Lay out the issues in a written workplan by priority Identify the essential analyses necessary to draw conclusions on each issue Disregard analyses that are“interesting”but not essential
16、to prove/disprove the hypothesis Avoid time-consuming analyses designed for more precision than necessary Begin each analysis with the end(specific end products and timing)in mindDESIGNING THE ANALYSIS WORKPLAN EXAMPLEIssue/HypothesisCan we implement the new production process?YesDoes the process re
17、quire new facilities?NoIf it does require new facilities,can we acquire them economically?YesAnalysesTechnical specificationsList of facilities that meet new criteriaMap of“facilities gap”Sources of required facilities/equipmentCost to fill gapsEffect on project rate of returnData SourcesArticles,in
18、terviewsFacilities management,interviewsFacilities management,thrum-mat line supervisors,interviewsOperations,trade publicationsOperations,contractors,interviewsFinance department,prior analysisEnd ProductChartListChartListTableSpreadsheetResponsibilityTomTomBelindaBelindaBelindaTerryDue dates3-Jun5
19、-Jun7-Jun7-Jun10-Jun12-JunGATHERING THE DATA KEY TIPS Use the workplan to focus the search Search the web and other public sources for essential facts Identify and interview experts to uncover hard-to-find facts and deeper insights Conduct primary research only if unavoidableMembrane,For Better Tomo
20、rrowMembrane,For Better TomorrowINTERPRETING THE RESULTS KEY TIPS Look for the 80/20 opportunities Always ask,“whats the so what?”Perform sanity checks Draw a chart for each insight Dont make the facts fit your hypothesis Pull together“the story”Membrane,For Better TomorrowMembrane,For Better Tomorr
21、owBACKUPMembrane,For Better TomorrowMembrane,For Better Tomorrow22ISSUE TREE SAVING MONEYHow?How?.How?How?How can I have more money at the end of each month without incurring a debt?Increase incomeReduce expensesReceive a windfallReceive more$from investmentsReceive more$from workPay less for same a
22、mount of itemsBuy lessLegallyIllegallyWork more hoursMake more per hourBuy lower quality itemsShop around for specialsFoodClothingUtensilsEntertainmentTravelOtherBetter paid industryHigher job levelAdditional jobOvertimeWin lotteryInherit23HYPOTHESIS-DRIVEN TREE SAVING MONEYThe best way for me to ha
23、ve more money at the end of the month is to spend less through comparison shoppingWhy?Why?Why?Which?Comparisonshopping is an interesting opportunityChanging my lifestyle is not an optionAdditional investments do not wipe out savingsSavings are feasibleTo compensate for demanding workload,I need to i
24、nvest in weekly visits to the spa and the operaMy profession does not allow me to wear lower quality clothesTo balance the junk food I eat during the week,I need at least one three-course meal on the weekendSavings in$Opportunity cost of additional time taken up by comparison shoppingNew formats offer same quality at lower priceKey spending categories have competition in new formatsHypermarketsPrice ClubHome DepotAuto mall
