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MCKINSEYS 7S FRAMEWORK

Str ategy: t he direc ti on a nd scope of the c ompa ny ove r the long t erm.
Str uc ture : the ba si c orga niz at ion of the c ompany, i ts de partme nt s, re porting li ne s, a re as of e xpe rt ise a nd re sponsi bi lit y (a nd how the y int er-rel at e).
Syste ms: forma l and informa l proc edure s t ha t govern everyda y ac tivit y, c ove ring e ve rything from manage ment informa ti on syst e ms, through to t he syste ms at the poi nt of c ont ac t wi th the c ustomer (re ta il syste ms, c a ll ce nte r syste ms, onl ine syste ms, e tc ).

THE HARD Ss

THE SOFT Ss
S kills: the capabilities and competencies that exist within the company. What it does best.
S hared values: the values and beliefs of the company. Ultimately they guide employees towards 'valued' behavior.
S taff: the company's people resources and how the are developed, trained and motivated.
S tyle: the leadership approach of top management and the company's overall operating approach.

MCKINSEYS APPROACH TO
PROBLEM-SOLVING
The problem is not always the problem
Create structure through M.E.C.E.
Dont reinvent the wheel
Every client is unique (no cookie cutter solutions)
Dont make the facts fit your solution
Make sure your solution fits your client
Sometimes let the solution come to you
No problem is too tough to solve

THE 80/20 RULE


- 80% of an effect under study will be generated
by 20 of the examples analyzed
- A small fraction of elements account for a large
fraction of the effect
Examples:
80% of sales from 20% of sales force
80% of orders from 20% of customers

DONT BOIL THE OCEAN


Work smarter, not harder.
Theres a lot of data out there relating to
your problem, and a lot of analyses you
could do. Ignore most of them.
Lesson: be selective and dont try to
analyze everything.

FIND THE KEY DRIVERS


Many factors affect business.
Focus on the most important ones the
key drivers

THE ELEVATOR TEST


Know your solution so thoroughly that you
can explain it clearly and precisely to your
client in 30 seconds.
If you can do that, then you understand
what youre doing well enough to sell your
solution.

PLUCK THE LOW-HANGING


FRUIT
Sometimes in the middle of the problem-solving
process, opportunities arise to get an easy win,
to make immediate improvements, even before
the overall problem has been solved.
Seize those opportunities! They create little
victories for you and your team. They boost
morale and give you added credibility by
showing anybody who may be watching that
youre on the ball and mean business.

MAKE A CHART EVERY DAY


During the problem-solving process, you
learn something new every day.
Put it down on paper. It will help you
push your thinking. You may use it, or
you may not, but once you have
crystallized it on the page, you wont
forget it.

HIT SINGLES
You cant do everything, so dont try.
Just do what youre supposed to do and
get it right.
Its much better to get to first base
consistently than to try to hit a home run
and strike out 9 times out of 10.

LOOK AT THE BIG PICTURE


Every now and then, take a mental step back
from whatever youre doing. Ask yourself
some basic questions:
How does what youre doing solve the
problems?
How does it advance your thinking?
Is it the most important thing you could be
doing right now?
If its not helping, why are you doing it?

JUST SAY, I DONT KNOW


Professional integrity is of utmost importance
in consulting.
One aspect of professional integrity is
HONESTY with your client, your team
members, (your professor), and yourself.
Honesty includes recognizing when you
havent got a clue. Admitting that is a lot less
costly than bluffing.

DONT ACCEPT I HAVE NO


IDEA
People always have an idea if you
probe just a bit. Ask a few pointed
questions youll be amazed at
what they know. Combine that with
some educated guessing, and you
can be well along the road to the
solution.

Strategic Problem-Solving Model


Managing
Team
Client
Self

Leadership
Vision
Inspiration
Delegation

Business Need
Competitive
Organizational
Financial
Operational

Implementation
Problem

Intuition

Solution

Data
Analyzing

Presenting

Framing
Designing
Gathering
Interpreting

Structure
Buy-in

Dedication
Reaction
Completion
Iteration

Acme Widgets Logic Tree


Grommets

Revenue

Acme
Widgets

Widgets

Expenses

Thrum-mats

Widget
Sales

North
America

Widget
Leasing

Europe

Widget
Service

Asia

Issue Tree for Acme Widgets


Is s u e :
C a n w e in c r e a s e th r u m -m a t
p r o f it a b il it y w it h t h e n e w
p r o d u c tio n p ro c e s s ?
S u b is s u e :
C a n w e m a i n t a in p r o d u c t
q u a lit y w h ile i m p le m e n tin g
th e p r o c e s s ?

S u b is s u e :
C a n o u r o r g a n iz a t io n
im p le m e n t t h e
n e ce s sa ry c h a n g e s?

S u b is s u e :
W i ll i t r e d u c e
o u r c o s t?

Issue Tree for Acme Widgets with


Subissues
Subissue: Will it
reduce our costs?
Does the process
require special
facilities?
Issue: Can we
increase thrum-mat
profitability with the
new production
process?

Subissue: Can our


organization
implement the
necessary changes?
Does the process
require special
skills?
Subissue: Can we
maintain product
quality while
implementing the
process?

Work Plan for Issue in Acme Widgets Issue Tree


Issue/Hypothesis

Analyses

Data Sources

End Product

Responsibility Due Date

Can we implement the


necessary changes to
the production
process? Yes
Does the new process
require special
facilities? No

If it does require
special facilities, can
we acquire them? Yes

Technical
Specifications

Articles,
interviews

List of facilities
that meet new
criteria

Facilities
management,
interviews

Map of facilities
gap

Facilities
management,
thrum-mat line
supervisors,
interviews

Source of required
facilities/equipmen
t

Operations, trade
publications

Costs to fill gaps

Operations,
contractors,
interviews

Effect on project
rate of return

Finance
department, prior
analysis

Chart

Tom

3-Jun

List

Tom

5-Jun

Chart

Belinda

7-Jun

List

Belinda

7-Jun

Table

Belinda

10-Jun

Spreadsheet

Terry

12-Jun