The mckinsey method how to solve any problem. The McKinsey method. How to solve any problem. About the McKinsey Method. Using the techniques of leading strategic consultants to solve personal and business problems." Ethan Rasiel

McKinsey Tools. Best Practice for Business Problem Solving Friga Paul

The McKinsey Method

When analyzing data, the Mackinsians apply the following principles.

"80/20". The 80/20 rule is one of the great truths in business. According to this rule, 20% of the analyzed examples will create 80% of the studied effect. This rule was discovered by the economist Vilfredo Pareto. While researching economic conditions in his native Italy, Pareto determined that 20% of her population owned 80% of the land. Later, while working in his garden, he discovered that about 80% of the pea crop grew from only 20% of the plants. On the basis of these and other observations, he determined that for any series of elements studied, a small fraction of them accounted for a significant proportion of the effect. Over time, Pareto's observations were generalized as the 80/20 rule.

Although this rule has been around much longer than McKinsey, it was the Firm's consultants who made it the basis of all their thinking. By looking at your organization's key numbers, you will almost always find examples of the 80/20 ratio. For example, you might determine that 80% of your sales come from 20% of your customers, 80% of your profits come from 20% of the salespeople, and 80% of your time is spent doing 20% of the work.

The heart of the 80/20 rule is data. When analyzing them on a computer, play a little with the numbers, sorting them in different ways. Every time you see the 80/20 rule in action, look for the possibilities it contains. If 80% of your sales come from 20% of salespeople, what exactly are these people doing right and how can you transfer that to others? And are these inefficient others really needed? As you can see, the application of this rule can be of great benefit.

Take notes daily. At the end of each day, ask yourself, “What are the three most important things I learned today?” Set aside half an hour before leaving work to get these things down on paper; beautiful decoration is not necessary, it is enough to quickly sketch a diagram or short list from several points. This exercise will give an impetus to your thoughts. You won't forget what you've drawn in this diagram, even if you don't use it later. If you do not fix your thoughts, then they will be erased from memory by the time you leave the office.

Don't force the facts to fit the decision. Let's say you and your team come up with a brilliant hypothesis; but be prepared for facts and analysis to prove you wrong. In this case, it is the hypothesis that should change, not the facts.

This text is an introductory piece. From the McKinsey Tools book. Best Practice for Business Problem Solving by Friga Paul

The McKinsey Method First, let's list the rules by which McKinsey consultants structure business problems. Follow the MECE principle. The concept of MECE (abbreviation for Mutually Exclusive, Collectively Exhaustive - “mutually exclusive, jointly exhaustive”) is a basic principle

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The McKinsey Method As with structuring, let's start with the McKinsey principles. Solve the problem at the first meeting. Mackinsians know that analyzing facts with the intention of confirming or disproving a primary hypothesis is much more powerful.

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The McKinsey Method The following guidelines help McKinseys plan their analysis. Find the key factors. The success of most companies depends on a number of factors, but not all of them are equally important. With limited time and resources, you cannot afford the luxury of

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The McKinsey Method Let's take a quick look at McKinsey's research principles. Facts are your friends. At McKinsey, problem solving is based on fact analysis. Facts compensate the consultant for experience and intuition, which he does not yet have, in contrast to the head of the client company,

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The McKinsey Method McKinsey emphasizes the importance of being prepared and courteous when conducting an interview. Prepare: Write a preliminary outline. Make a written list of the questions you want to ask in the order you plan to ask them. The plan is needed for two

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The McKinsey Method The central tenet of knowledge management at McKinsey is: don't reinvent the wheel. Whatever problem you're working on, chances are that someone else has already done something similar. McKinsey understands the value of collecting and using this

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The McKinsey Method McKinsey's 80/20 principles apply to data analysis. The 80/20 rule is one of the great truths in business. According to this rule, 20% of the analyzed examples will create 80% of the studied effect. This rule was discovered by the economist Vilfredo Pareto.

From the author's book

The McKinsey Method McKinsey has a principle: make sure the solution you offer is right for the client. Make sure the solution you propose is right for the client. Management, like politics, is the art of the possible. The most beautiful solution based on the analysis of a huge

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The McKinsey Method McKinsey emphasizes the need for consistency and simplicity in the structure of presentations. Be structured. To successfully present your ideas, you must lead the audience through logical reasoning, step by step, so that you are easy to follow. Your

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The McKinsey Method Former McKinsey employees firmly believe that to convince a customer, you need to take care of everything in advance. Take care of everything in advance. A good business presentation should not contain new information that will shock the audience. Before holding a ceremony

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The McKinsey Method Consider how McKinsey approaches team building and hiring. Form teams correctly. If you have the luxury of choosing your team members, be thoughtful about it. McKinsey selects people for a project based on

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The McKinsey Method The importance of communications at McKinsey is expressed in the principle of “keep the information flowing”. Keep information flowing. Information is power. Unlike other resources, its value increases when more people use it. For your team

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The McKinsey Method There are two lessons from McKinsey about team building. Keep your finger on the pulse to keep morale high in the team. It is extremely important to be in constant contact with the team in order to know their level of motivation and enthusiasm during the project, especially when

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The McKinsey Method McKinsey takes a unique approach to customer acquisition. How to sell without selling. If you ask a McKinsey consultant how the Firm sells its services, you will be told in a slightly arrogant tone that McKinsey does not sell them. This is only partly true. Actually McKinsey

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The McKinsey Method thorny path to success in the firm. Find yourself a mentor. Take advantage of the experience of others - find among the senior staff of the organization someone who can be your mentor. Even if in your

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The McKinsey Method McKinseys often complain that they don't have time for their personal lives. Still, they were able to offer two recommendations on the subject. How to deal with business trips. IN modern business travel is inevitable. Try to see interesting business trips

Name: The McKinsey method. How to solve any problem
Authors): Ethan Rasiel
Publisher: "Alpina Publisher", — 2018

Description:
Original (English): "The McKinsey Way: Using the Techniques of the World"s Top Strategic Consultants to Help You and Your Business" by Ethan M. Rasiel

To date, there is no other such well-known, successful and sought-after consulting firm in the world as McKinsey & Company. Most of the world's leading corporations are its clients. Many of the greatest business leaders and management thinkers have come from this company. Among them are Tom Peters, Louis Gerstner, Jon Katzenbach and many others.

For the first time, the book reveals the management practices that McKinsey has long guarded and demonstrates the tools to enable managers at all levels to think like McKinsey consultants and find solutions to the most complex business problems.

Why the book is worth reading:

If you are the CEO of a company that has turned to McKinsey or another consulting firm for help, this book will give you an idea of what these strange people are up to. Although each consulting firm has its own way of working, the essence of management consulting is the same everywhere - it is an objective look at the client's situation. It's entirely possible that other firms operate very differently from McKinsey, but their consultants' mindsets are similar.

This work will be useful not only to representatives consulting companies and students of business schools, but also all those who solve business problems.

Ethan M. Rasiel(Ethan M. Rasiel) joined McKinsey in 1989 and worked there until 1992. His clients were large companies from finance, telecommunications, IT and consumer goods. In addition, Rasiel worked as an investment banker and asset manager. He holds a bachelor's degree from Princeton University and MBA Business School Wharton.

Preface translators
"The McKinsey Method" - expanding the boundaries of the screen of your world...
Preface to the Russian edition
Thanks
Introduction
Part I: Understanding Business Problems Using the McKinsey Method
1. Building a solution
2. Development of approaches to problem solving
3. The 80/20 principle and other rules
Part II. Solving Business Problems: The McKinsey Method
4. Sales
5. Team building
6. Hierarchy Management
7. Conducting research
8. Conducting an interview
9. Brainstorm
Part III. McKinsey's approach to "selling referrals"
10. Presentations
11. Display data with charts
12. Management of internal communications
13. Working with clients
Part IV. How to survive in McKinsey

The McKinsey method. Using the techniques of leading strategic consultants to solve personal and business tasks Ethan Rasiel

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Title: The McKinsey Method. Using the techniques of leading strategic consultants to solve personal and business problems
Author: Ethan Rasiel
Year: 2012
Genre: Management, recruitment, Corporate culture, Foreign business literature

About the McKinsey Method. Using the techniques of leading strategic consultants to solve personal and business problems." Ethan Rasiel

The book reveals for the first time the management practices that McKinsey has long guarded and demonstrates the tools to enable managers at all levels to think like McKinsey consultants and find solutions to the most complex business problems.

This work will be useful not only to representatives of consulting companies and students of business schools, but also to all those who solve business problems.

On our site about books, you can download the site for free without registration or read online book The McKinsey method. Using the Techniques of Leading Strategic Consultants to Solve Personal and Business Problems” by Ethan Rasiel in epub, fb2, txt, rtf, pdf formats for iPad, iPhone, Android and Kindle. The book will give you a lot of pleasant moments and a real pleasure to read. Buy full version you can have our partner. Also, here you will find last news from the literary world, learn the biography of your favorite authors. For beginner writers there is a separate section with useful tips and recommendations interesting articles, thanks to which you yourself can try your hand at literary skills.

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GE matrix, or McKinsey matrix used in assessing the attractiveness of individual strategic economic units based on two coordinates: the x-axis characterizes the strength of the position of a strategic economic unit in the industry, the y-axis - the attractiveness of the industry. Each of these coordinates is determined taking into account several parameters.

McKinsey matrix (McKinsey) was developed for General Electric. The X-axis is the competitive position (relative advantage) of the strategic business unit, the Y-axis is the attractiveness of the industry in which the strategic business unit operates. Each axis is divided into three parts. The matrix has a dimension of 3 * 3. Unlike BCG, in this matrix, each coordinate axis is considered as an axis of a multivariate measurement. The McKinsey matrix is more realistic. Indicators along the Y axis are practically beyond the control of the company, along the X axis, on the contrary, they can be changed (Table 6.1).

Table 6.1 X-Axis and Y-Axis Scores for the McKinsey Matrix

For X axis — competitive advantages business area.

Let's define the key success factors for each business area.
Specific weight (relative importance) of each factor.
We rate each factor. 5 - if the product has a very strong competitive position in a similar industry, 1 - if a very weak competitive position.

For Y axis- the attractiveness of the business area as an industry.

The algorithm is similar.

We will choose the parameters by which the attractiveness of the industry will be assessed.

As a result of the analysis using the McKinsey matrix, a good analysis of the product portfolio is given.

The analyzed business units are reflected in the form of circles with centers at the intersection of their respective values. Each circle corresponds to the total sales in some market (Fig. 6.2).

There are three areas:

winners;
losers;
middle area (diagonally).

Rice. 6.2. McKinsey matrix

The basic principle of the method- increase investments in business areas in attractive industries if the company has competitive advantages in them, and, conversely, reduce investments if the positions of the product market itself or the company on it turn out to be weak. You can evaluate the contribution of the product to the profitability of the company.

For winners— additional investments, we will get profit, protection of advantages. For the losers - to limit investment until the stop, additional investment will not bring profit. For border areas- either grow or shrink until liquidation.

Position Strength Index is based on the indicator of the relative market share, the dynamics of its change, the amount of profit received, the image, the degree of price competitiveness, product quality, sales efficiency, geographical advantages of the market, and the efficiency of employees. It is possible to weigh the indicators used. Three levels of gradation of this index are accepted: strong, medium, weak. The industry attractiveness index is determined by taking into account the size and diversity of markets, the rate of market growth, the number of competitors, the industry average profit margin, demand cyclicality, industry cost structure, pricing policy, legislation, labor resources. Three levels of gradation of this index are used: high, medium and low. The intersection of the lines characterizing the different levels of values of these two levels forms a grid, which is divided into three zones: the zone in which the organization must invest; the zone in which the organization must maintain investment at the same level, and the zone in which it is necessary to obtain the maximum possible profit, after which it should be left.

The strategies recommended for individual grid squares can be formulated as follows:

1. Preservation and strengthening of the market position by:

investing to ensure growth at the highest possible rate;
concentration of efforts to maintain strengths.

2. Investing in the struggle for leadership; selectively investing in the strengths of the activity; strengthening the most vulnerable aspects of activity.

3. Ensuring selective growth by:

specialization based on the strengths of the activity;
search for ways to overcome the weaknesses of the activity;
withdrawal from the market if there is no indication of an acceptable increase in sales volume.

4. Large investment in the most attractive market segments; maintaining the ability to counter competitors; ensuring high profitability by increasing .

5. Protection of existing programs market activity; concentration of investments in segments where profitability is high and risk is relatively low.

6. Limited expansion, or "harvesting", is achieved by finding ways to expand activities that are not associated with high risk, while minimizing investment and rationalizing all production and marketing operations.

7. Maintain position refocusing activities by:

shifting the focus to earning current money;
concentration on attractive segments;
protecting the strengths of the activity.

8. The main focus is on making money by:

protection of positions in the most profitable segments;
product line upgrades;
investment minimization.

9. Care with. In this case, it is necessary:

sell goods on time at a bargain price;
sharply reduce fixed costs while avoiding investment.