Management Consulting

Book: The McKinsey Mind

Problem Solving Frameworkg

Chapter 3pGathering the Data

Gathering the Datag

• Gathering smart dataI f ti i t i b t f l• Information is not issue, but usefulness

• Not get as much information, but most important information

• Facts are friendly• Don’t accept “I have no idea”• Summary of good data sources: page 58-59 (show variousSummary of good data sources: page 58 59 (show various

and PPT data source)• Data Quality > quantity

Interviewing as source of data (Interview PPT) see next• Interviewing as source of data (Interview PPT) see next pages

• “Is there anything I forgot to ask? • Interview, body language, tone, active listening• “Garbage in, garbage out”

Interviewingg

• Have the interviewee’s boss set up a meeting• Interview in pairs• Listen, don’t lead (2 ears, 1 mouth)• Paraphrase, paraphraseParaphrase, paraphrase• Use the indirect approach• Don’t ask for too much• Adopt the Columbo tactic (ask key question at the end)

• Explain why you do the intervifewExplain why you do the intervifew• Always write a thank you note• Be sensitive (interviewee = source of information)• Take notes during interview! Look, listen and learn• Verbal and non-verbal communication

Attachment A – Best Practices

• Set objectives

Conduct

Prepare Share

• Set objectives

• Confirm whether interview is the best way to get information – interviews are time-consuming

• Build interview profileBuild interview profile

• Think through logistics – time and location; wherever possible, arrange personally

• Know the basics (e.g., competitors, acronyms, background with McKinsey)

• Give interviewee advance warning if you need documentation

T t b i t i id th i t• Try to base your interview guide on the issue tree

• Revise your interview guide and target list as you go along

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Attachment A – Best Practices

Conduct

Prepare Share

• Hold interview in risk-free environment

• Be attentive and respectful; don't be late

• Engage interviewee, don't interrogate

• Empathize with interviewee – McKinsey can be intimidating

• Maintain appropriate eye contact

• Be flexible, don't be afraid to go beyond interview guide or abandon it if appropriate

• Follow up; if you promise something, deliver it

• Try to break up a series of interviews with analysis

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Attachment A – Best Practices

Conduct

Prepare Share

• Capture key points immediately (e.g., through a voicemail message to yourself)

• Follow 80/20 rule – get notes out within 20 hours – better 80% t th f t i kuct 80% accurate now, than perfect in a week

• Mention reactions, not just facts

• Highlight important points with quotes

• Practice healthy skepticism about the interviewee's comments/views

• Do not put highly controversial comments in an interview note; communicate these messages confidentially to your ; g y yteam

• Destroy all notes after a study

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Ideally, we should conduct interviews in person, as we can gather much more (unspoken) i f ti i f t f ti Ci t h di t t t l h

Attachment B – Interviewing over the telephone

information in a face-to-face meeting. Circumstances, however, may dictate a telephone interview.

Before the interview During the interview Closing Following up

• Schedule enough time to conduct the interview without any interruptions

• Send ahead the

• Speak clearly and put energy into your voice

• Rather than nod in agreement, respond verbally

• Keep question as brief as possible

• Specify how you would prefer the interviewee to

• Use some verbal signposts (e.g., "only a few questions left")

• Verify any remaining

• Don't forget the thank-you note –it helps compensate for the missing handshake

materials that you will need to refer to during the interview

• Make sure the interviewee has plent of time to

p y(e.g., "I agree", "Okay", "I see", "Yes")

• Keep the interview on track with your q estions

phrase the answer (e.g., as a percentage)

• Consider using multiple choice, yes/no, rank order rating

gdetails

• Let interviewee ask some questions when you finish your interview

plenty of time to review the material

questions• Do not interrupt

– wait until the interviewee completes a thought, and then transition to

order, rating scale

• Avoid repetition in types of questions (e.g., all rankings, all ratings)

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t e t a s t o toa new question

at gs)

Making cold calls

Sometimes we may need to interview people who have had no previous exposure to us – this kind of telephone "cold call" can be the most difficult interview. Making the initial connection can be crucial.

Getting them on the phone How to sell the interview

• If the target does not return your telephone calls, send a written invitation to a breakfast or lunch meetingIf th t t d t d t f

• Immediately introduce yourself, McKinsey, and your objective – avoid making "small talk" unless your target initiates itS ti j t d i• If the target does not respond to any of your

attempts or refuses the interview, try to determine another source for the information

• Sometimes just dropping a name can ensure cooperation – try to find someone who has a connection with the target interviewee

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These tricky interview questions are exceptions but we eventually hear them in one form or another

Tricky interview questions

These tricky interview questions are exceptions, but we eventually hear them in one form or another during our career at McKinsey. No right answer exists, and this list is not exhaustive, but it can help to consider these options along with the circumstances

?What's the money like?

What are your fees? How much do you make?

• Say that the fees charged are the • You should probably avoid answering thisSay that the fees charged are the responsibility of the partner who has agreed to them with the key client

• Suggest the interviewee request the information from the key client, or in exceptional circumstances (e.g., the key client is on vacation and the amount needs

You should probably avoid answering this question

• If the questioner persists, one of the following may work– "Enough"– "Oh, there's no use moaning about it – is

there?"client is on vacation and the amount needs to go into the interviewee's budget) offer to have the partner contact him/her

there?– "I never know until the year end; now, how

about we …?"

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Tricky interview questions

What's age got to do with it?

How old are you, and how experienced are you?

If you're the oldest, why aren't you leading the team?

• The guiding principle is to be honest – no need to be defensiveIf h l t i b ll

• As an experienced new hire, you may be older than the senior person on your teamE l i th t t d 't h• If you have some relevant experience, by all

means, describe it• Explain the way we work in teams and our

approach to studies• You cannot know the client's business as

well as he/she does, but you can effectively

• Explain that our teams don't have an intellectual hierarchy, so we all play an equal role in the substance of problem solving

• However, we do have distinct process roles, and other team members with more

question conventional wisdom McKinsey experience are the appropriate choice for the lead

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Tricky interview questions

What do you think?

What do you think of XYZ ConsultingWhat do you think about your McKinsey co-worker?

• "No comment" could be interpreted as • If the interviewer asks how you feel aboutNo comment could be interpreted as pejorative

• The Firm's policy is not to comment on other consulting firms; comments about other consulting firms do not improve our standing

If the interviewer asks how you feel about another consultant, commenting unfavorably about an action, focus on the action

• Acknowledge the viewpoint, even if you don't agree

"I can see why you would see it that way"– I can see why you would see it that way– If there is an opposing rationale, it might

be appropriate to articulate it• Follow up with your team

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Tricky interview questions

What can you do for me?

Can you help me with this other little project?

Will you pay for the information I give you in the interview?

• If it is just 5 extra minutes of help go ahead • Difficulties can arise if you are not aware inIf it is just 5 extra minutes of help, go ahead• If it is outside the scope of the study and will

take a lot of time, ask the EM/ED before agreeing– The ED committed time and resources to

a specific set of deliverables, and you might jeopardize completion of the study

Difficulties can arise if you are not aware in advance that a fee will be requested –saying you need to get clearance from your EM/ED is probably appropriate

• If the interview provides value, the fee should probably be paid

• Keep your billing rate in mind would it costmight jeopardize completion of the study– The new work may not be as

straightforward as it seems, and the partner should review it

• Keep your billing rate in mind – would it cost more to develop the information from scratch?

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Schwierige Interviewsituationen

• Looks on watch constantly

• Phone is running often

• Importance of interview

• Ask if other time is more suitable

• Secretary brings oftendocuments to be signed

• Is nervous, why I?

• Not often own opinion

• Explain why he is important

C l di i• What is happening

• Cal discussion

• Make him/her confortable

• Show his/her contribution, tilit

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utility

Schwierige Interviewsituationen

• Talks permanently around the topic

• Likes to talk about anectodes

• Ask closed questions• Focus on theme• Mention time, schedule of

interview• Maybe focus on

• Not focues in discussion

yquestions and invite for dinner where talk other things

• Ennoying

• Gives short answerns

• Ask open questions, not interview but discussion

• Provides excuses• Open discuss it

• Show positive potention (Verbesserungsansätze) instead of prblems

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p(Schwachstellen offenlegen

Data-Information-Knowledgeg

McKinsey

PD = know whatPeople = know who

E l 21 21 C l i 21 li iExample: 21 -> 21 Celcius -> 21 celius is warm

Chapter 4pInterpreting the Results

Interpreting the Resultsp g

• Best analysis worthless if no sense or conclusion• Client don’t pay for fancy slides and analysis but for advice!• Analysis

• Understand the data (description)Understand the data (description)• Interpretation (analysis = so what)

• 80/20 rules again• Make a chart every day• One chart = one message• Don’t’ fit the facts your hypothesis then change hypothesisDon t fit the facts your hypothesis, then change hypothesis• Facts are neutral, “factual”• Always ask “so what”, make consistency check (can this be

true? Does this make sense?)

Interpreting the Resultsp g

• So What• What does this tell us?• How is that useful? • What recommendation does it lead to?What recommendation does it lead to?

• If you can not draw any of the above, your analysis is “worthless” and “waste of time”

• Test assumptions• Make scenario analysis (always three)

Interpretation of Resultsp

• So What?

Interpretation of Resultsp

• What all means