How Do Employees of World's Top Companies Work?

The way McKinsey thinks about problems.

McKinsey is one of the world's leading consulting firms, and they have developed many highly practical methods for thinking and problem-solving, providing invaluable assistance to professionals in the workplace.

In their book "The McKinsey Way," they introduce numerous approaches to thinking and problem-solving.

The book emphasizes the importance of establishing a problem-solving process when facing a challenging issue. So, how do we go about building this process?

McKinsey stresses a fundamental principle: base decisions on facts, strive for systematicity, make bold assumptions, and be diligent in verification.

Understanding the real situation is the foundation of problem-solving. When McKinsey employees take on a new project, their first task is to gather a wealth of internal and external customer data as a team to grasp all relevant information about the client. Then they systematically analyze this information and propose their assumed path to solve the problem.

During this process, they may encounter entirely new issues, and this requires an analytical approach. How is it done?

Firstly, when faced with a problem, they don't get misled by surface appearances but instead find the root cause, which is crucial. They achieve this by collecting data, conducting thorough interviews, understanding the basic situation and the nature of the problem they need to solve.

Secondly, they make the most of the experience of their predecessors to avoid duplicating efforts.

Lastly, while they assumed a problem-solving path, during testing and execution, they avoid seeking excuses to confirm their assumptions. They act according to their assumed path but remain open to both validating and refuting it, making timely adjustments when necessary.

After analyzing the problem, it's time for action, and managing their time and energy effectively becomes crucial in tackling the most significant part of the problem. This is where the Pareto Principle, also known as the 80/20 rule, comes into play.

The Pareto Principle dictates focusing the majority of one's energy and time on addressing the most critical 20% of issues in life. For example, when taking on a new project, there might be various factors influencing its success, such as the quantity of content, its quality, and the timing of promotion. However, the most crucial factor might be the content quality. Hence, they direct their main efforts towards resolving the content quality issue rather than getting entangled in minor matters.

Noun Definition:
The Pareto Principle, also known as the 80/20 rule, states that in any group of things, approximately 20% are the most important, while the remaining 80% constitute the less significant part.

When applied to the realm of work, it suggests focusing the majority of one's energy and time on addressing the most crucial 20% of problems encountered in life.

McKinsey's Problem-Solving Method

In addition to that, McKinsey also provides specific advice for common workplace issues. Regarding how to expand the client base, McKinsey follows these steps:

Firstly, they continuously release high-quality books and articles to broaden their influence. Additionally, McKinsey publishes its academic journal, "McKinsey Quarterly," which is provided free of charge to clients and former consultants, many of whom now hold key positions in potential client companies.

McKinsey also maintains a vast informal communication network with potential clients. The company encourages its partners, i.e., McKinsey employees, to participate in various industry associations, charity events, and other occasions where they can interact with potential client leaders. McKinsey also keeps in touch with previous clients, providing after-sales service and evaluating previous work results. This approach ensures that when there's a new project, the old clients think of McKinsey first or recommend new clients to them.

Moreover, how does McKinsey build teams and handle hierarchical management?

Once they receive a client's project, they form a consulting team. The project manager examines the skills and personalities of potential team members based on the project's requirements, conducting interviews to determine if they are a good fit.

As project leaders, they pay close attention to and care for team members, ensuring a harmonious and efficient collaboration throughout the project.

McKinsey's Communication Practices

In addition to the aforementioned aspects, McKinsey has established a comprehensive set of processes for presentation, internal communication, and external communication.

When members present their proposals, they ensure the logic is clear, systematic, and well-organized. If there are significant initiatives or transformative suggestions in someone's presentation, leaders privately communicate with relevant individuals to reach a consensus before public meetings.

Regarding internal communication, McKinsey allows information to circulate internally through emails, text messages, voice calls, or meetings, promoting better collaboration among members, increasing efficiency, avoiding guesswork, and reducing internal conflicts. Moreover, the information communication follows three principles: concise, comprehensive, and systematic. In other words, content is both succinct and thorough.

Lastly, McKinsey members are cautious in their communication and prioritize maintaining confidentiality.

For external communication, McKinsey's experience includes the following:

Firstly, making the successful execution of proposals a goal for the client's team, as this ensures their dedicated commitment. Secondly, helping the client team recognize that working with a top consulting company like McKinsey is an excellent learning opportunity. Lastly, to ensure the smooth progress of the proposal, gaining full support from all levels of the client's company is essential.

Knowledge Point:
McKinsey emphasizes the following steps when encountering problems: Firstly, learn to establish a problem-solving process; Secondly, leverage the experience of predecessors to avoid redundant efforts;

Finally, validate and refute one's assumed problem-solving approach, promptly making corrections if found inadequate.

Summary：
Alright, that's it for today's content. Let's summarize what we've learned:

1. McKinsey emphasizes the importance of establishing a problem-solving process when facing issues. They encourage leveraging the experience of predecessors to avoid duplication of effort. Furthermore, they stress the need to both validate and refute one's assumed problem-solving approach and make timely adjustments if necessary.

2. When expanding their client base, McKinsey focuses on increasing their influence by releasing high-quality materials and articles. They establish an informal communication network with potential clients and maintain good relationships with old clients. In team formation and hierarchical management, project managers have the authority to select suitable team members based on project requirements.

3. McKinsey members deliver presentations with clear, logical, and systematic proposals. For internal communication, McKinsey ensures information flows effectively through channels such as emails, texts, calls, or meetings, promoting better collaboration. Regarding external communication, McKinsey aligns the successful execution of proposals with the client's team's goals and emphasizes the valuable learning experience of working with a top consulting company. They also seek full support from the client's entire organization.

Insights every day, gaining new knowledge every day, exclusively for members. See you tomorrow!

Today's quote:

1. "Solving problems isn't just one thing you do at McKinsey; it's everything you do at McKinsey. You should always be looking for ways to improve every aspect of your work, no matter how it was done before. You should constantly ask, 'Why are we doing it this way? Is this the best approach?' Basically, maintain a skeptical attitude towards everything."
2. "McKinsey's principles for problem-solving are to base decisions on facts, approach systematically, make bold assumptions, and be diligent in verification."
3. "Solving a complex problem is like a long journey, and your initial assumptions are the map for solving it."
4. "Many factors influence problem-solving, focus on the key drivers."
5. "The elevator rule: You should be able to explain your solution accurately and confidently to a client in 30 seconds."