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Additional resources for The McKinsey Way: Using the Techniques of the World's Top Strategic Consultants to Help You and Your Business
Don’t try to pound them into your framework like square pegs into round holes. How do you avoid that trap? The McKinsey way is to take an occasional step back from the continual grind of fact gathering and analysis and to ask yourself what you have learned over the past week (or two weeks, or whatever). How does the new informa tion fit into your initial hypothesis? If it doesn’t, how might it change that hypothesis? Doing these little reality checks now and then could save you from chasing down blind alleys.
80/20 and Other Rules to Live By 33 FIND THE KEY DRIVERS Many factors affect your business. Focus on the most impor tant ones—the key drivers. ” In other words, there may be a 100 different factors affecting the sales of our widgets—weather, consumer confidence, raw material prices— but the three most important ones are X, Y, and Z. We’ll ignore the rest. Engineers learn something called the Square Law of Compu tation. It states that for every component of a system—for every additional equation in a problem—the amount of computation required to solve the system increases at least as fast as the square of the number of equations.
We shared a cab home. “Don’t boil the ocean” means don’t try to analyze everything. Be selective; figure out the priorities of what you are doing. Know when you have done enough, then stop. Otherwise, you will spend a lot of time and effort for very little return, like boiling the ocean to get a handful of salt. 80/20 and Other Rules to Live By 33 FIND THE KEY DRIVERS Many factors affect your business. Focus on the most impor tant ones—the key drivers. ” In other words, there may be a 100 different factors affecting the sales of our widgets—weather, consumer confidence, raw material prices— but the three most important ones are X, Y, and Z.
The McKinsey Way: Using the Techniques of the World's Top Strategic Consultants to Help You and Your Business by RASIEL