McKinsey & Company Swiss Office Problem Solvers

McKinsey & Company, Swiss Office

TEAM LEADER
TEST YOUR PEOPLE SKILLS
ASSIGNMENT OVERVIEW: You are the engagement manager (EM) for a team
helping our client, Wang Fo, a high tech company considering how to expand its
operations.
As the EM, you are responsible for the day-to-day leadership of the engagement.
You will plan and manage the team's assignments as well as work closely with
the client, all under the engagement director's overall direction.
In other words, you're running the engagement.
You should know that the client is under a lot of pressure to deliver results to the
board soon.

HERES YOUR TEAM:

McKinsey:
McKinsey:
Martin - Associate
Alicia - Associate
Sean - Development group leader*
Tanya - Engagement director**
Client:
Ari - Analytics manager
Olga - Sales manager
Justin - Regional operations manager
Jacques Piet - Production executive vice president
Paul Higgins - President
Nicole Petrova - Advisor to the president
Good luck.

* A development group leader is a partner who advises a group of associates on

all matters of professional development.
** The partner responsible for the overall lead of a client assignment.

McKinsey & Company Swiss Office Problem Solvers

QUESTION 1: First Team Workshop

MARTIN (McKinsey associate): "The purpose of this meeting is to give a
brief overview of the study and discuss roles and responsibilities. Well also
review the way we see the team functioning, and talk about next steps. But
first though, lets all introduce ourselves. Im Martin, Im an associate from
McKinsey."
ARI (Client analytics manager): "Im Ari, and Im an analytics manager. I
work with Mr. Piet. I have to say that I dont understand why Im involved in
this study. Declining sales are a sales problem, and have nothing to do with
analytics. Quite frankly, everyone in the analytics group is tired of marketing
shifting the blame for its own problems."
OLGA (Client sales manager): "Thank you, AriIm Olga, a sales manager
for Wang Fo. I also dont quite understand my role here, but I do think Ari
needs to stop complaining."
JUSTIN (Client regional operations manager): "Im Justin, regional
operations at Wang Fo."

QUESTION: How do you get Ari and Olga to understand their role in the
study?
ANSWER: Emphasize the study goal. Review the process again, emphasizing
the goal. Ask each Client Team Member to discuss how he or she can contribute
to reaching it.
WHY: This is the best decision. Reviewing the study goal and encouraging
each team member to discuss how he or she can contribute helps define
the Client Team members roles, and gives them a sense of purpose. It will
help team members take ownership of the solution. It also sets a good
precedent for active team contributions and opens up a healthy dialog
among team members.

McKinsey & Company Swiss Office Problem Solvers

QUESTION 2: Martins Development Goals

MARTIN (McKinsey associate): "Now that the work-plan is complete, its
pretty clear that time will be very tight during this engagement. Im thinking
that you might be able to save some time up front by putting off this
discussion of my development goals until later. As far as Im concerned, its
just not a priority. The client comes first."
QUESTION: What should you do about Martins development goals?
ANSWER: Meet with Martin now. Sit down with Martin and help him set up his
personal development goals for the study, even though he isnt eager to do it and
you are extremely busy. You can work late to make up the time. (EM Time: 3 hrs.)
WHY: This is the wisest course of action, even though it may initially annoy
Martin and cost you time. You are trading up-front time for Martins longterm development, and the trade-off is undoubtedly worth it. You need to
know which skill areas are his strengths and which he needs to develop in
order to best utilize him during the engagement.

McKinsey & Company Swiss Office Problem Solvers

QUESTION 3: Deputy Director Of Finance Leaving Soon

JUSTIN (Client regional operations manager): "I remember you said that
you wanted to hold interviews and make sure Herbert Messina, the deputy
director of finance, was included. I know its only the third day of the study,
but I think you should know that hes leaving on Thursday for a week-long
training program."
ALICIA (McKinsey associate): "How can we talk to him so early? As of now,
we only have the loosest notion of how the structure of the study will look. Is it
really wise to hold this interview now? On the other hand, the initial interview
with him was very good, just superficial. We wont know enough about the
story line to hold an informed interview until the end of the week, after hes
gone."

QUESTION: A quick call to Messinas assistant reveals that you have two
options. What will you do?
ANSWER: Set up interview with Messina for tomorrow. Your work-plan is
incomplete and you will not have time to prepare a structured agenda, so you
may seem ill prepared. Still, it is crucial to see him as soon as possible. Admit that
you are not prepared, but that you think the interview will still be valuable. You
can set up a structured interview when he gets back. (EM Time: 2 hrs.)
WHY: This is a good decision. It is crucial for you to establish
communication with top managers, and to let them become comfortable
with you. Even if you do not know what specific information you need, you
will hear valuable information about the company culture. You will also
open the door to other managers in the Finance area. On the other hand, by
not taking the time to structure the interview, you run the risk of seeming
disorganized and unsure to the interviewee.

McKinsey & Company Swiss Office Problem Solvers

QUESTION 4: Info Arriving Too Slowly From Analysis Department

MARTIN (McKinsey associate): "Im sorry, but I cant get any further without the
cost accounting breakdown by product. I requested it from Erwin Schmidts
statistical analysis department, but its been two weeks later and I havent
received it yet!"
ALICIA (McKinsey associate): "Olga and I are in the same situation. Were still
waiting for information to complete the sales breakdown by geographic area."
OLGA (Client sales manager): "At this point, were looking at an emergency
situation here."
QUESTION: How do you get the information you need?
ANSWER: Invite Schmidt to attend team meetings. If Schmidt feels that he is
part of your team and understands the studys needs, he will be quicker to
respond to your requests. (EM Time: 1 hr.)
WHY: This is the preferred answer in this situation. The manager for
statistical analysis needs to be educated about your study, to understand
what you are doing at Wang Fo, and how the company will benefit from
your work. Inviting him to team meetings is a good way to accomplish this.

McKinsey & Company Swiss Office Problem Solvers

QUESTION 5: Tanya Misses Another Meeting

ALICIA (McKinsey associate): "So this is where Tanya is staying? I think it was
a good idea to hold the meeting in the restaurant of his hotel."
MARTIN (McKinsey associate): "Yeah, we really need her input before its too
late in the study, we havent seen that much of herand changing the scenery is
always a nice touch."
ALICIA (McKinsey associate): "Look! Here she comes! But shes carrying
luggage with her, whats going on?"
TANYA (McKinsey engagement director): "Hi guys, Im sorry but this is a client
emergency. I need to take a three hour train rideand my hands are just tied.
This taxi is for meI cant stay."
QUESTION: What do you do about Tanyas absence from the team?
ANSWER: Take the trip with Tanya and work on the way. A week is too long to
wait. Get into the taxi with Tanya and work during the train ride. When you arrive
at your destination, you can take the same route back. This will cost you a day
and a night, but it is worth the time to get Tanyas input right away. (EM Time: 8
hrs.)
WHY: This is the best answer in a difficult situation. Unfortunately Tanya is
directing a number of studies at once. You recognized that her feedback
was imperative, and took the initiative. This decision helps you avoid a
great deal of rework later.

McKinsey & Company Swiss Office Problem Solvers

QUESTION 6: Alicia Discusses Inadequate Resource

ALICIA (McKinsey associate): "Whats wrong? Alberto Bossi, the senior
executive from Pricing whos been assigned to work with me, was
supposed to give me some pricing analysis. But he hasnt done this sort of
work in years and hes hardly given me a thing so far. I need his analysis. I
think Ill just do it myself, otherwise itll never get done."
QUESTION: What do you do about Alicias situation with Bossi?
ANSWER: Have Alicia spend more time with the executive. Tell her to work
closely with Bossi, finding ways to interest him in the analysis. Accept that the
Pricing piece may be delayed as a result.(EM Time: 1 hr.)
WHY: The wisdom of this approach will vary based on how long the study
is and where you are on the timeline. If time allows, it is best to take this
route and have your associate work with the executive. He was assigned to
the team because of his expertise. As you recognized, to assign him
meaningless subtasks will not help your study. Invest Alicias time now for
a greater return later.

McKinsey & Company Swiss Office Problem Solvers

QUESTION 7: Jacques Piet Asks For Smaller Meetings

PIET (Client production executive vice president): "Now that Martin and Alicia
have left, could you wait for a second? I want to talk with you about something.
For the next meeting on Wednesday, I believe its better if you come alone. I
frankly dont see the point of such a big meeting if your colleagues dont have
much to say. Im sure your team can use that time more efficiently."
QUESTION: What do you do about Piets request?
ANSWER: Attempt to change Piets mind. Explain that your associates are doing
the work on this study and need to gather information firsthand by attending
meetings and making presentations. Once Piet understands this, he should
relent. (EM Time: 1 hr.)
WHY: You selected the best decision here. It is always a good idea to
attempt to educate clients about McKinseys engagement philosophy. Piet
may be focusing on the cost associated with large meetings. He needs to
understand the benefits of including study team members in all meetings. It
is in your best interest that Piet is comfortable dealing with other members
of the team.

McKinsey & Company Swiss Office Problem Solvers

QUESTION 8: Nicole Petrova Wants To Be In The Study

Nicole Petrova (Client advisor to the president): "Well, listeneven though Im
not directly involved in your engagement, Ill be responsible for implementing any
recommendations that result from the study. Ive heard from Paul Higgins about
your direction and I disagree strongly. Market segmentation is not the problem
you seem to think it is. We did an analysis last year and concluded that our
segmentation was fine.
Ive been in the high tech business for more than 10 years, and Im telling you,
your assumptions are misguided. But dont worry, Ill help you out. Id be glad to
redirect your problem definition. Youll see how well reach very different
conclusions, and still be ready for the progress review next week.
You know, my presence can only help your engagement, and I think it will please
Mr. Higgins."
QUESTION: What do you do about Petrovas desire to join the team?
ANSWER: Ask Tanya to meet with Petrova. This seems to be a potentially
dangerous political situation. You need Tanya to diffuse it. (EM Time: 1 hr.)
WHY: You were right to assume that this is a political situation. Since it
involves the President and his EVP, it is appropriate to bring your ED in to
help solve it.

McKinsey & Company Swiss Office Problem Solvers

10

QUESTION 9: Closing The Data Chip Processor Plant

MARTIN (McKinsey associate): "After coming up with a first cut at the numbers,
were 80 percent sure that the data chip processor plant should be closed. Its
simply not profitable for Wang Fo to keep it in operation. Its old technology, at
high cost."
ARI (Client analytics manager): "Thats sure to be a controversial suggestion.
You should probably go over the numbers with Johann, the plant manager, before
sharing that conclusion with Piet.
Although Im sure old Johann is going to give you a pretty hard time! He loves
that plant."
MARTIN (McKinsey associate): "But, do we have the time for that though? I
mean the plant is far away, and we only have three days until our meeting with
Jacques."
QUESTION: How will you proceed in terms of your decision about closing
the data chip processor plant?
ANSWER: Fly out and confirm your numbers with Johann, the plant manager.
This will cost you time, and he may react negatively, but you need his
confirmation of your numbers before you speak with Piet about the plant closing.
(EM Time: 12 hrs.)
WHY: You were right to speak with the plant manager first. Johann is
extremely knowledgeable about his plant, and his input will be valuable in
confirming or negating your analysis.

McKinsey & Company Swiss Office Problem Solvers

11

QUESTION 10: Ari Loses His Nerve

HIGGINS (Client president): "What is this nonsense about downsizing
manufacturing lines and plants? You cant be serious. All these plants function
like clockwork, and they are profitable. Who told you otherwise?
These numbers are clearly mistaken. Ari, what is this? Had you seen these
numbers before?"
ARI (Client analytics manager): "Ummno, not really."
QUESTION: How do you handle the situation with Ari and Higgins?
ANSWER: Defend the recommendation yourself and hope hell back you up.
Ignore the issue of whether or not he saw the conclusions beforehand. You
cannot expect Ari to take the lead in contradicting his president. If you begin, he
may follow.
WHY: This is the best answer in a difficult situation. You considered Aris
state of mind. He would not take the lead in contradicting his president.
Getting his active support was the only way to get the president to agree
with you.