The McKinsey Engagement Read online

  THE McKINSEY ENGAGEMENT

  A POWERFUL TOOLKIT FOR

  MORE EFFICIENT & EFFECTIVE

  TEAM PROBLEM SOLVING

  THE McKINSEY ENGAGEMENT

  PAUL N. FRIGA, PH.D.

  Copyright © 2009 by Dr. Paul N. Friga. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher.

  ISBN: 978-0-07-164148-7

  MHID: 0-07-164148-3

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  TERMS OF USE

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  CONTENTS

  Acknowledgments

  Preface

  Introduction

  PART 1 TEAM

  CHAPTER 1: Talk

  Concept

  Rules of Engagement

  Rule 1: Communicate Constantly

  Rule 2: Listen Attentively

  Rule 3: Separate Issues from People

  Operating Tactics

  Stories from the Field

  Case Study

  CHAPTER 2: Evaluate

  Concept

  Rules of Engagement

  Rule 1: Discuss Team Dynamics

  Rule 2: Set Expectations and Monitor Results

  Rule 3: Develop and Reevaluate a Personal Plan

  Operating Tactics

  Stories from the Field

  Case Study

  CHAPTER 3: Assist

  Concept

  Rules of Engagement

  Rule 1: Leverage Expertise

  Rule 2: Keep Teammates Accountable

  Rule 3: Provide Timely Feedback

  Operating Tactics

  Stories from the Field

  Case Study

  CHAPTER 4: Motivate

  Concept

  Rules of Engagement

  Rule 1: Identify Unique Motivators

  Rule 2: Positively Reinforce Teammates

  Rule 3: Celebrate Achievements

  Operating Tactics

  Stories from the Field

  Case Study

  PART 2 FOCUS

  CHAPTER 5: Frame

  Concept

  Rules of Engagement

  Rule 1: Identify the Key Question

  Rule 2: Develop the Issue Tree

  Rule 3: Formulate Hypotheses

  Operating Tactics

  Stories from the Field

  Case Study

  CHAPTER 6: Organize

  Concept

  Rules of Engagement

  Rule 1: Develop a High-Level Process Map

  Rule 2: Create a Content Map to Test Hypotheses

  Rule 3: Design the Story Line

  Operating Tactics

  Stories from the Field

  Case Study

  CHAPTER 7: Collect

  Concept

  Rules of Engagement

  Rule 1: Design "Ghost Charts" to Exhibit Necessary Data

  Rule 2: Conduct Meaningful Interviews

  Rule 3: Gather Relevant Secondary Data

  Operating Tactics

  Stories from the Field

  Case Study

  CHAPTER 8: Understand

  Concept

  Rules of Engagement

  Rule 1: Identify the "So What(s)"

  Rule 2: Think Through the Implications for All Constituents

  Rule 3: Document the Key Insight on All Charts

  Operating Tactics

  Stories from the Field

  Case Study

  CHAPTER 9: Synthesize

  Concept

  Rules of Engagement

  Rule 1: Obtain Input and Ensure "Buy-in" from the Client

  Rule 2: Offer Specific Recommendations for Improvement

  Rule 3: Tell a Good Story

  Operating Tactics

  Stories from the Field

  Case Study

  Afterword

  Business School Applications

  Consulting Firm Applications

  Corporate Applications

  Outcomes of the Case Study (from Tim's Perspective)

  Outcomes of the Case Study (from Paul's Perspective)

  The TEAM FOCUS Rules of Engagement

  Index of Stories from the Field

  List of Illustrations

  Index

  ACKNOWLEDGMENTS

  There are so many amazing people who have contributed to making this book possible. I hesitate to try to document them for fear of omission, but I will give it the old college try.

  MY FAMILY

  My Wife, Meredith—the love of my life who inspires me every day

  My Son, Nicholas—who teaches me just how precious life is

  My Dad—who still lives with me today

  My Mom—who keeps me focused on the important things

  My Brother—who always offers a fresh intellectual perspective

  My Sister—who is a constant source of positive energy

  My Uncle Rich—who is always ready for a great conversation

  My Uncle Joe—who thinks he has a good sense of humor

  The Lord—who makes all things possible

  MY SUPERSTAR RESEARCH ASSISTANT<
br />
  Emi Ruble, without whom this book would not have been written. She worked with me from the beginning on brainstorming, outlining, researching, interviewing, editing, and most of all writing. She essentially wrote the entire case study that plays such a critical role in this book. One day, she will be a famous author and English professor, and I just hope that she remembers me (only the positive memories of course)!

  MY KELLEY SCHOOL OF BUSINESS RESEARCH TEAM

  Drew Allenspach

  Dimitra Bourgis

  Chris Cannon

  Jatin Karani

  Peter Kuo

  Steve McGuire

  Kendall Miller

  Abhi Nadgir

  Maddy Vishnu Nampoothiri

  Emi Ruble

  Jessica Wild

  THE MBA CASE STUDY TEAM

  Alan Burleson

  Chris Cannon

  Tim Krzywicki

  Shalini Makkar

  Bhavin Shah

  Rachita Sundar

  THE REVIEWERS

  Rich Chapas

  Joe Harbert

  Marilyn Friga

  Meredith Friga

  Tony Gerth

  Bill Gilliland

  Michael Meeks

  Matt Semadeni

  THE KELLEY MANAGEMENT DEPARTMENT ADMINISTRATIVE ASSISTANTS

  Lisa Castor

  Sarah Fella

  Kathy Hakeem

  Tammy Tharp

  THE INTERVIEWEES (WHO PROVIDED VALUABLE WAR STORIES TO BRING LIFE TO THE BOOK)

  Arnaud Beernaert

  Clifford Dank

  Brigham Frandsen

  Tony Gerth

  Yannick Grecourt

  D. A. Gros

  Alain Guy

  Fred Humiston

  Ben Kennedy

  Peter Kuo

  Mike Lewis

  Victoria Lim

  Sisto Merolla

  Duncan Orr

  Mario Pellizzari

  Oliver Personnaz

  Dr. Florian Pfeffel

  Juan Pulido

  Pedro Ramos

  Rob Torti

  Mike Yang

  And the dozens of additional interviewees who chose to remain anonymous.

  OTHERS (MENTORS, FRIENDS, ACCOMPLICES, ETC.)

  Joe Burton

  Mike Duke

  Idie Kesner

  Anita Knowles

  Kaihan Krippendorff

  Barbara Minto

  Peggy Pickard

  Rob Richardson

  Mitch Ripley

  AnaMaria Rivera

  Shari Rogge-Fidler

  Paul Sansone

  Brian Waterman

  And Ethan Rasiel, who is my coauthor, friend, and teacher.

  PREFACE

  The two-person Green Berets sniper team slithered silently through the weed-infested underbrush, completely unnoticed by the sleeping enemy. Weeks of training in terrain navigation made this special-ops mission feel almost like a routine assignment, but the team knew that this was not a drill. Their state-of-the-art night vision goggles provided them with a clear target approximately 100 yards ahead in the pitch-black night. The team leader whispered instructions to the specialized shooter (who had finished first in the rigorous Special Forces Q Course) and radioed back to the base commanders. Everyone in the operation knew exactly what was coming next . . . the terrorist radio operator target would be taken out, and the snipers would proceed to the rendezvous point exactly two hours later. And there was no doubt that the mission would be successful; their confidence was based on months of extreme physical and mental conditioning, scenario-based training, and lessons learned from the thousands of Green Berets who had done this before.

  After centuries of warfare, military organizations have developed tremendous expertise in many areas that are relevant to modern-day corporations. Numerous books have been written on leadership lessons (for example, one of the first I read was Leadership Secrets of Attila the Hun), organizational structure, and strategies (The Art of War by Sun Tzu is required reading at the CEO level and in some strategy Ph.D. programs) derived from these organizations. In fact, much of modern business language is borrowed from the military—mission, vision, hierarchy, strategic communication, centralization, specialization, and so on. There is a reason for this: much can be learned from military tactics that can have a positive impact in the business world. In terms of this book, the military concepts of standard operating procedures, excellence in execution, and cross-training offer valuable insights.

  James "Mac" McKinsey, a University of Chicago professor, founded McKinsey in 1926. In the 80+ years since, McKinsey has grown to become one of the most successful strategic consulting firms in the world. It has instilled a very structured approach to consulting and has an almost militaristic discipline in its strong culture. The people of McKinsey realize that success in consulting will come only to those players who can operate in a manner that is consistent with the world-class "special forces" of the top military organizations—that is, those with the most extensive training, organizational focus, and consistency in execution.

  This book is dedicated to exploring how McKinsey, along with a select few other top consulting firms and some top MBA programs, excels at the most important element of helping clients achieve phenomenal positive returns during consulting interventions: team problem solving. Team problem solving occurs when multiple persons are vested in finding the solution to a major issue.

  At McKinsey, team problem solving occurs during engagements or studies. In the military, these are considered missions. Regardless of what you call it, almost all major business decisions are the result of team problem solving; because McKinsey is among the best in the world at problem solving, it is able to charge a premium for its much-sought-after services.

  My goal is quite simple; to offer a toolkit that can be used to improve the effectiveness and efficiency of any project that involves team problem solving. This book highlights and implements lessons from the "special forces" techniques that are used at McKinsey and other firms for the benefit of a much wider audience. This is not intended to be a very deep or theoretical read; rather, it is intended to be a field guide for busy professionals, consultants, and students who are facing a team problem-solving situation but don't have much time to get to the main point or recommendation.

  Have you ever worked on a perfect engagement or field study—one that exactly balances interpersonal interaction and analytical horsepower and produces outstanding deliverables? I haven't. We have all worked on terrific teams and great projects, but there was always something that could have been improved. Wouldn't it be nice to have the confidence of an Army Green Beret in your problem solving approach and to have a consistent, cohesive system that leads to world-class, efficient execution throughout your entire firm, organization, or school? I am convinced that a master guide to team problem-solving projects will be a meaningful contribution in this regard.

  This book describes the most important lessons (both good and bad) from past projects and the accumulated wisdom of numerous previous problem solvers—both in business and in the military. My experience over the past 20 years has generated ideas for just such a guide. Over the past six years, I have been documenting my ideas, conducting interviews with experts, and developing the concepts contained in this book. My hope is that this material will help consultants, executives, and students achieve the kind of success in team problem solving witnessed at McKinsey and other top consulting firms. I would also like to make a special comment about confidentiality. Nowhere in this book will you find any proprietary, sensitive, or confidential material from McKinsey or any other firm.

  THE BACKGROUND

  It may be helpful to take a step back in time. My first experiences in project management came during my days at Pricewaterhouse-Coopers (PwC)—then just Price Waterhouse. My tenure at PwC taught me quite a few lessons, witnessing both some of the best-planned engagements (in audits) and some of the worst-planned engagements (in turnaroun
d consulting) you could imagine. I returned to academia after six years at PwC and earned my MBA from the Kenan-Flagler Business School at the University of North Carolina at Chapel Hill. Upon graduation, a door opened for me at the most sought-after consulting firm in the world (McKinsey is consistently ranked as the top position for MBA graduates in annual surveys and is highly regarded for problem-solving methodologies).

  After leaving McKinsey, a return to academia to pursue my long-term goal of becoming a professor brought me back to Chapel Hill. It was during my Ph.D. program (again at UNC) that I worked with Ethan Rasiel (the author of The McKinsey Way, which describes the culture and processes at McKinsey) to write The McKinsey Mind, a book that presents lessons learned from McKinsey alumni who were working to implement takeaways from their time at the "firm" in different organizations. Both books have done quite well and have sold over 100,000 copies in total, with 10+ international language translations as of the time of this writing.