1、PROBLEM SOLVING WITH THE MCKINSEY METHOD,Membrane, For Better Tomorrow,MCKINSEY PROBLEM SOLVING APPROACH,Data,Problem,Solution,Business NeedCompetitiveOrganizationalFinancialOperational,AnalyzingFramingDesigningGatheringInterpreting,PresentingStructureBuy-in,ImplementationDedicationReactionCompletio
2、nIteration,LeadershipVisionInspirationDelegation,ManagingTeamClientSelf,Focus of todays discussion,FRAMING 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 Identify what conditions are necessary and s
3、ufficient to prove the hypothesis (using hypothesis trees),Membrane, For Better Tomorrow,FRAMING THE PROBLEM ISSUE TREE EXAMPLE,Problem: How can the Acme Widget Company increase profits from its existing business lines?,Membrane, For Better Tomorrow,FRAMING THE PROBLEM ISSUE TREE EXAMPLE,How can Acm
4、e increase profits from existing business lines?,Membrane, For Better Tomorrow,FRAMING THE PROBLEM ISSUE TREE EXAMPLE,How can Acme increase profits from existing business lines?,From Widgets,From Thrum-mats,From Grommets,Which Business Lines?,Membrane, For Better Tomorrow,FRAMING THE PROBLEM ISSUE T
5、REE EXAMPLE,How can Acme increase profits from existing business lines?,From Widgets,From Thrum-mats,From Grommets,Increase Revenues,Decrease Expenses,Which Business Lines?,How?,Membrane, For Better Tomorrow,FRAMING THE PROBLEM ISSUE TREE EXAMPLE,How can Acme increase profits from existing business
6、lines?,From Widgets,From Thrum-mats,From Grommets,Increase Revenues,Decrease Expenses,Decrease raw material costs,Decrease labor costs,Decrease overhead costs,Which Business Lines?,How?,How?,Membrane, For Better Tomorrow,FRAMING THE PROBLEM ISSUE TREE EXAMPLE,How can Acme increase profits from exist
7、ing business lines?,From Widgets,From Thrum-mats,From Grommets,Increase Revenues,Decrease Expenses,Decrease raw material costs,Decrease labor costs,Decrease overhead costs,Negotiate wage concessions,Implement a labor-saving production process,Which Product Lines?,How?,How?,How?,Negotiate higher prod
8、uctivity quotas,FRAMING THE PROBLEM ISSUE TREE ASSIGNMENT,Problem: How can I have more money at the end of each month without incurring debt?,Membrane, For Better Tomorrow,ISSUE TREES VS. HYPOTHESIS TREES,Issue trees identify all potential ideasIssue trees ask “How” we could meet a desired outcomeIs
9、sue trees are excellent for organizing ideas in a “MECE” mannerComplete issue trees uncover all potential ideas Hypothesis trees focus and build up an argument or conclusionHypothesis trees ask “Why” we believe something to be trueHypothesis trees are excellent for narrowing down investigation to es
10、sentialsComplete hypothesis trees build up a complete argumentHypothesis trees focus on the “so what” of any data that is presented,Membrane, For Better Tomorrow,FRAMING THE PROBLEM HYPOTHESIS TREE EXAMPLE,Hypothesis: We can increase the profitability of the Acme Widget Company through a streamlined
11、 production process for thrum-mats.,Membrane, For Better Tomorrow,FRAMING THE PROBLEM HYPOTHESIS TREE EXAMPLE,We can increase thrum-mat profitability with the new production process.,Membrane, For Better Tomorrow,FRAMING THE PROBLEM HYPOTHESIS TREE EXAMPLE,We can increase thrum-mat profitability wit
12、h the new production process.,It will reduce our costs.,Our organization can implement the necessary changes.,We can maintain product quality while implementing the process.,Why?,Membrane, For Better Tomorrow,FRAMING THE PROBLEM HYPOTHESIS TREE EXAMPLE,We can increase thrum-mat profitability with th
13、e new production process.,It will reduce our 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 TRE
14、E ASSIGNMENT,Hypothesis: The best way for me to have 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 Disre
15、gard analyses that are “interesting” but not essential 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 mind,DESIGNING THE ANALYSIS WORKPLAN EXAMPLE,Issue/HypothesisCan we
16、implement the new production process? YesDoes the process require new facilities? NoIf it does require new facilities, can we acquire them economically? Yes,AnalysesTechnical specifications List of facilities that meet new criteriaMap of “facilities gap”Sources of required facilities/equipment Cost
17、to fill gapsEffect on project rate of return,Data SourcesArticles, interviewsFacilities management, interviewsFacilities management, thrum-mat line supervisors, interviews Operations, trade publications Operations, contractors, interviews Finance department, prior analysis,End ProductChartListChartL
18、istTableSpreadsheet,ResponsibilityTomTomBelindaBelindaBelindaTerry,Due dates3-Jun5-Jun7-Jun7-Jun10-Jun12-Jun,GATHERING 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 d
19、eeper insights Conduct primary research only if unavoidable,Membrane, For Better Tomorrow,INTERPRETING 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
20、 story”,Membrane, For Better Tomorrow,BACKUP,Membrane, For Better Tomorrow,22,ISSUE TREE SAVING MONEY,. . .,How can I have more money at the end of each month without incurring a debt?,Increase income,Reduce expenses,Receive a windfall,Receive more $ from investments,Receive more $ from work,Pay les
21、s for same amount of items,Buy less,Legally,Illegally,Work more hours,Make more per hour,Buy lower quality items,Shop around for specials,Food Clothing Utensils Entertainment Travel Other,Better paid industry,Higher job level,Additional job,Overtime,Win lottery,Inherit,23,HYPOTHESIS-DRIVEN TREE SAVI
22、NG MONEY,The best way for me to have more money at the end of the month is to spend less through comparison shopping,Why?,Why?,Why?,Which?,Comparison shopping is an interesting opportunity,Changing my lifestyle is not an option,Additional investments do not wipe out savings,Savings are feasible,To c
23、ompensate for demanding workload, I need to invest in weekly visits to the spa and the opera,My profession does not allow me to wear lower quality clothes,To balance the junk food I eat during the week, I need at least one three-course meal on the weekend,Savings in $,Opportunity cost of additional time taken up by comparison shopping,New formats offer same quality at lower price,Key spending categories have competition in new formats,Hypermarkets,Price Club,Home Depot,Auto mall,
