PROBLEM SOLVING WITH THE MCKINSEY METHOD Membrane, For Better Tomorrow MCKINSEY PROBLEM SOLVING APPROACH Intuition Data Problem Solution Business Need Competitive Organizational Financial Operational Analyzing Framing Designing Gathering Interpreting Presenting Structure Buy-in Implementation Dedication Reaction Completion Iteration Leadership Vision Inspiration Delegation Managing Team Client Self Focus of today’s 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 sufficient to prove the hypothesis (using hypothesis trees) Membrane, For Better Tomorrow FRAMING THE PROBLEM – ISSUE TREE EXAMPLE Problem: How can the Acme pany increase profits from its existing business lines? Membrane, For Better Tomorrow FRAMING THE PROBLEM – ISSUE TREE EXAMPLE How can Acme 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 TREE 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 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 existing business lines? From Widgets From Thrum-mats From Grommets Increase Revenues Decr