7-Step Problem Solving

Process
Session 4
Sanket Sunand Dash
Summary of session 3
• How are the following phenomena linked:
• Availability of MBB+ alumni
• Sophistication of clients’ internal strategy teams
• Modularization of consulting projects
• Development of analytics solutions
• TCE is a very powerful lens but does not account for generation of
organizational knowledge, as distinct from a combination of individual
knowledge
 Objectives
 Articulating McKinsey’s 7-Step Problem-Solving Process
 Applying the 7-Step Process in Analyzing the case study of
InterfaceRAISE

3
Consulting Skills
1. Structuring of thoughts
2. Input gathering
3. Communication (written and spoken)
4. Interpersonal skills
5. Development of proper habits
McKinsey 7-Step Process
1. State the Problem
2. Disaggregate the issue tree
3. Prioritize issues
4. Build a specific work plan
5. Conduct analysis
6. Synthesize findings
7. Prepare a powerful communication
Step 1
 Characteristics of a good problem statement:
a) Specific hypothesis
b) Contentful
c) Actionable
d) Aligned to decision maker needs
 Identify the dilemma in the case and state it as a problem statement
 Dilemma: Identify ways to improve impact of InterfaceRAISE given the
constraints.
 Problem statement: Increase impact of InterfaceRAISE by generating new
revenue sources, convincing CEO to increase funding and changing
organizational structure
Source:
http://www.gledden.com/wp-content/uploads/2016/12/150707-1-McKinsey-7-Easy-Steps-to-Bullet-Proof-Problem-Solving.p
Characteristics of Issue Trees
 MECE: Mutually exclusive, collectively exhaustive
 Are these MECE?
• List 1: Lion, Tiger, Leopard
• List 2: Intelligent, creative, all others
• List 3: Sales of goods, sales of services, licensing, returned merchandising
Issue: How can a widget
factory improve its
Increase profitability
profitability

Change Improve Reduce

Sales marketin Unit
strategy g strategy Cost
 Increase the number of projects

Ensure SMEs are compensated

for their service

Use external SMEs more

Generate new revenue sources
extensively

Construct an
issue tree Tie-up with other consutants

regarding the
dilemma in the Hartzfeld spends more time in
marketing InterfaceRAISE
case.
Appraise of the need for high
growth

Increasing Impact given Convince CEO to increase

reluctance to increase funding funding

Show alignment with

organizational vision

Contemplate ways to structure

investment as loans for which
InterfaceRAISE is legally liable

Hire separate COO-level post for

InterfaceRAISE

Divide InterfaceRAISE into

Strengthen organizational
departments with full-time
structure
practice leaders

Develop an internal pool of full-

time SMEs
Step 3
 Identify the most important issues
 Use the 80-20 rule
 From the issue tree identify the priority areas for further action with
rationale
Step 3: Solution
 Ensure internal SMEs are compensated for their efforts:
 This would ensure that (i) employee motivation for long-term projects is maintained (ii) more employees
volunteer for consulting and (iii) the competitive advantage of InterfaceRAISE as the conduit of the
successful sustainable practices of Interface Inc. is maintained.
 Tie-up with other consultants
 This would ensure that the communication-related competencies are quickly acquired
 Spend more time in marketing InterfaceRAISE
 As the face of InterfaceRAISE, Hartzfeld needs to win new clients and is best placed to do so
 Contemplate ways to structure investment as loans for which InterfaceRAISE is legally liable
 This would be in alignment with Interface business philosophy and would communicate the confidence of
InterfaceRAISE to be a profitable undertaking
 Hire separate COO-level post for InterfaceRAISE
 This would enable Hartzfeld to concentrate on winning new business
Step 4
 Characteristics of a good workplan
 Prepared early
 Revised often
 Specific with regard to sources and methods of analysis
 Developed collaboratively
 Milestone-based
 Planned for next 2-4 weeks only
 Develop a workplan for ensuring internal SMEs are compensated for their efforts
 Steps 5-7 are linked with input gathering and communication as analysis, input
gathering and communication are linked
Thank You

Course Name || Indian Institute of Management Rohtak 15