Business Consulting

By McKinsey & Company

How to solve problems?

1. Big questions(clear objective) -> sub-questions -> next sub-questions(issue tree): it's a kind of disaggregation method to approach problems. Pyramid style or hierarchical approach to handle big questions. Interview, survey, consumer research, modeling and other methodology could be applied to answer each disaggregated questions. After getting answer each small answers, synthesizing will be done at the last stage to prepare for the answer to big questions.

1. define problem(Think impact : what does the client need to know?)  -> 2. structure problem(Think disaggregation and early hypothesis: what could be the key elements of the problem?)  -> 3. prioritize issues(speed) -> 4. develop issue analysis and work plan(efficient) -> 5. Conduct analysis(evidence) -> 6. Synthesize findings(so what?) -> 7. Develop recommendations(potential solution)

Issue Tree : MECE - Mutually Exclusive Collectively Exhaustive -> Like puzzle piece

MECE principle should be applied to disaggregate questions and develop issue tree. 

Using issue tree, consultant can answer to each issues.

At least one very unique approach or survey needed.

1. Top down approach, 2. Judgement based, 3. Creative

Problem statement worksheet template

>> Basic question to be resolved <<  SMART : Specific, Measurable, Action-oriented, Relevant, Time-bound

1. Perspective/context 

2. Decision maker

3. Decision stakeholder

4. Criteria for success

5. Constraints within solution space

6. Scope of solution space

Exercise : 

1. Problem Statement Worksheet

2. Issue Tree Developing 

After prioritization of issues, PM will assign jobs to each team members. This is To-Do list. And then each consultant will do his/her job under scheduled work plan. 

Synthesis should include implications of fact, findings, that is different point of just summary. 

How to convert pyramid structure consulting material into executive summary.

Rule of 3.(How to compose storyline

1. Major Message

 1.1 Fact or findings

1.1.1 bla, bla, bla

* supporting evidence

* supporting evidence

* supporting evidence

 1.2 Fact or findings

 1.3 Fact or findings

2. Major Message

3. Major Message

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This lecture covered the McKinsey’s toolkit to approach & solve customers’ problems. Since we can define all the business activities as problem solving processes with limited time, resources to increase customers’ value and in return increase profit of company, McKinsey’s approach was very interesting and useful to understand how to solve the problems systematically. Actually McKinsey’s 7 steps approach to solve problem is based on so called ‘Divide & conquer’ method. It starts with definition of problems at first and then it divide problems into several pieces of sub questions to be answered separately. By prioritization and answering sub questions raised in the project, consultants could approach the original big problems efficiently with allocation of consultant to respective sub questions. So, all the sub questions should be divided in MECE(Mutually Exclusive Collectively Exhaustive) way to reduce redundancy and to increase efficiency. During lecture, 3 words captured my mind, those are ‘Measurable’ and ‘Actionable’ and ‘Creative.’ In real business we sometimes approach problem with immeasurable way and then we feel that we are handling problem well. However without concrete measurable goals or standards, we couldn’t evaluate the results of those immeasurable approaches. Also we couldn’t convince other outside stakeholder whether we resolve the problem clearly or not. So, only measurable approach will work finally. In terms of ‘Actionable’, however the solutions are measurable if the solutions are not actionable, the solutions are meaningless. We are doing business within limited resources framework, so we should consider actionable solution always. Since ‘Actionable’ is related with the ‘Scope of solution space’, ‘Actionable’ is also related with the way how we approach the problems, that is ‘Creativity.’ I think the most important factor to approach problems is creativity. Generally speaking, answers are guided by and directed by the raised questions. If we raised the wrong questions to solve problems and then we’ll get wrong answers & solutions however those are ‘Measurable & Actionable.’ So creativity will play very important role to approach problems and also to extract action items. 

2010년 9월 28일