The McKinsey Way – Ethan M. Rasiel 1999

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A very simple and good reminder on how to go about solving problems.

“Facts are friendly” (Rasiel, 1999, p.4). “First, facts compensate for a lack of gut instinct,” (Rasiel, 1999, p.4). “Second, facts bridge the credibility gap.” (Rasiel, 1999, p.5).

 “MECE (pronounced “me-see”) stands for “mutually exclusive, collectively exhaustive” and it is a sine qua non of the problem-solving process at McKinsey.” (Rasiel, 1999, p.6).

Defining the initial hypothesis:“The essence of the initial hypothesis is “Figure out the solution to the problem before you start.” (Rasiel, 1999, p.9). “To structure your IH begin by breaking the problem into its components – the key drivers. (….) Next make an actionable recommendation regarding each driver.” (Rasiel, 1999, p.10).

 “The end product of this exercise is what McKinsey calls the issue tree. In other words, you start with your initial hypothesis and branch out at each issue.” (Rasiel, 1999, p.12).

“Don’t make the facts fit your solution.” (Rasiel, 1999, p.21). “How does the new information fit into your initial hypothesis? If it doesn’t, how might it change that hypothesis?” (Rasiel, 1999, p.23).

“Some problems you just can’t solve … solve them anyway.” (Rasiel, 1999, p.26).

“One final word about charts: Too many will bore your audience. Use the absolute minimum necessary to make your point.” (Rasiel, 1999, p.116).

“Never underestimate the value of a random fact.” (Rasiel, 1999, p.121).

King Richard the Second – William Shakespeare 1994

Letting go of what makes you. 

“King Richard: Why, uncle, thou hast many years to live.

John of Gaunt: But not a minute, king, that thou canst give:

Shorten my days thou canst with sullen sorrow,

And pluck nights from me, but not lend a morrow;” (Shakespeare, 1995, p.364).

 “Queen: (…)

I will despair, and be at enmity

With cozening hope, - he is a flatterer,

A parasite, a keeper-back of death,

Who gently would dissolve the bands of life.” (Shakespeare, 1995, p.369).

“King Richard: (…)

As a long-parted mother with her child

Plays fondly with her tears and smiles in meeting,

So, weeping, smiling, greet I thee, my earth,

And do thee favours with my royal hands.

Feed not thy sovereign’s foe, my gentle earth,

Nor with thy sweets comfort his ravenous sense;

But let thy spiders, that suck up thy venom,

And heavy gaited toads, lie in their way,

Doing annoyance to the treacherous deed,

Which with usurping steps do trample thee.” (Shakespeare, 1995, p.373).

“King Richard:

No matter where; - of comfort no man speak:

Let’s talk of graves, of worms, and epitaphs;

Make dust our paper, and with rainy eyes,

Write sorrow on the bosom of the earth.

Let’s choose executors, and talk of wills:

And yet not so, - for what can we bequeath

Save our deposed bodies to the ground?

Our lands, our lives, and all are Bolingbroke’s,

And nothing can we call our own but death,

And that small model of the barren earth

Which serves as paste and cover to our bones.

For God’s sake, let us sit upon the ground,

And tell sad stor’es of the death of kings: -

How some have been deposed; some slain in war;

Sime haunted by the ghosts they have deposed;

Some poison’d by their wives; some sleeping kill’d.

Akk murder’d: - for within the hollow crown

That rounds the mortal temples of a king

Keeps Death his court.” (Shakespeare, 1995, p.374).

“King Richard:

Cover your heads, and mock not flesh and blood

With solemn reverence; throw away respect,

Tradition, form, and ceremonious duty;

For you have mistook me all the while:

I live like you, feel want,

Taste grief, need friends; - subjected thus,

How can you say to me, I am a king?” (Shakespeare, 1995, p.374).

“King Richard: (…)

Go to Flint castle: there I’ll pine away;

A king, a woe’s slave, shall kingly woe obey.

That power I have, discharge; and let them go

To hear the land that hath some hope to grow,

For I have none: - let no man speak again

To alter this, for counsel is but vain.” (Shakespeare, 1995, p.374).

“Henry Bolingbroke:

My gracious lord, I come for my own.

King Richard:

Your own is yours, and I am yours, and all.” (Shakespeare, 1995, p.376).

“King Richard:

God save the king! Although I be not he;

And yet amen, if heaven do think him me. –“ (Shakespeare, 1995, p.379).

“King Richard:

Give me the crown. – Here, cousin, seize the crown;

Here cousin:

On this side my hand, and on that side yours.” (Shakespeare, 1995, p.380).

“Henry Bolingbroke:

I thought you had been willing to resign.

King Richard: My crown I am; but still my griefs are mine:

You may my glories and my state depose,

But not my griefs; still I am king of those.” (Shakespeare, 1995, p.380).

“Henry Bolingbroke:

Are you contented to resign the crown?

King Richard:

Ay, no; - no, ay; for I must nothing be;

Therefore no no; for I resign to thee.

Now mark me, how I will undo myself.

(…)

Make me, that nothing have, with nothing grieved,

And thou with all pleased, that hast all achieved!” (Shakespeare, 1995, p.380).

“King Richard: (…)

                                   but whate’er I be,

Nor I, nor any man that but man is,

With nothing shall he pleased, till he be eased

With being nothing.” (Shakespeare, 1995, p.386).

The will to lead – Marvin Bower 1997

“So each subordinate does what the boss wants – or even what each subordinate thinks the boss wants.” (Bower, 1997, p.2). “It’s because people want to “get ahead” (i.e. move up the hierarchy) so they can boss others.” (Bower, 1997, p.2).

“to become a professional firm instead of a commercial firm requires a real belief in professional standards and determination to follow them. “Commercial” means putting firm income ahead of client interests.” (Bower, 1997, p.16).

 “One of our values is that we have no firm hierarchy. (…) Hence the managing director cannot tell people what to do. So each managing director has to learn to lead.” (Bower, 1997, p.xiii). “I tried never to say anything that would be considered an order. And I found that it was increasingly easy to make suggestions, that is, to persuade people.” (Bower, 1997, p.17). “A constituent cannot be effective (…) if he or she lacks self confidence.” (Bower, 1997, p.49).“Among the direct consequences are an incapacity to summon energy in behalf of purposeful ffort, an unwillingness to take risks, and a fatal timidity when the moment of opportunity breaks.” (Bower, 1997, p.49). “When a company decides to convert from commanding to leading, I suggest that it, too, call its employees “associates” and treat them as Sam did. (…) “our relationship with the associates is a partnership in the truest sense.”” (Bower, 1997, p.61).

“The leader exists to serve those whom he nominally leads, those who supposedly follow him.” (Bower, 1997, p.29). “a person who sets attractive goals and has te abilities to attract followers.” (Bower, 1997, p.7). “the leader must be trusted and respected.” (Bower, 1997, p.7). “trust opens up two-way communication, making it possible for them to achieve their common goals.” (Bower, 1997, p.8). “When a company decides to run its business by leading its people rather than commanding them, constituents will feel free to exercise initiatives.” (Bower, 1997, p.8). “Instead, leaders and constituents work out decisions and take actions together.” (Bower, 1997, p.8).

“I think that perhaps 80% of my work depends on listening to someone.” (Bower, 1997, p.31).

“That not only involves paying close attention, but also asking brief, non-leading questions.” (Bower, 1997, p.32).“They listen to advisers, to customers, to inner voices, to enemies, to the wind. That’s how they get word before anyone else of unseen probles and opportunities.” (Bower, 1997, p.33).“Consider the great competitive advantage to a company of having an open-minded chief executive as a leader and other open-minded leaders positioned throughout the company, all ready to receive and consider ideas and put them to work if their judgements stamp them as useful.” (Bower, 1997, p.34). “I never leave his office without feeling good – not even when he turns me down on something or criticizes me.” (Bower, 1997, p.50).

 “people in a leadership company derive satisfaction from being involved in work which produces products or services that customers buy with increasing satisfaction. And, for everyone, simply belonging to a leadership company will be satisfying in itself.” (Bower, 1997, p.46).

“In a business that is run by a network of leaders, all company leaders – not only the chief executive and a few others – will take the top-management approach and view the business as a whole.” (Bower, 1997, p.55). “It is the function of each of these departments to serve the business as a whole to the end that as much profit as possible may be made.” (Bower, 1997, p.56).

“Many companies keep struggling for a motivating vision. They can’t all be as lucky as J&J. Some may take the form of an advertising slogan. IBM has recently begun using its this slogan: “Solutions for a small planet.” General Electric: “We bring good things to life.” Delta airlines: “You’ll love the way we fly.” United Parcel Service: “Moving at the speed of business.” (Bower, 1997, p.71).

 “But first, I’d like to talk about how a leadership team works. We are going to eliminate hierarchy, which means that we will all become peers. I will no be your boss. We can all disagree with one another, and each of you can disagree with me. If I can’t persuade you, and each of you can’t reach agreement, I will resolve the issue, because as a leader, I’m what they call ‘first among equals’. (…)

Here are two of my most important responsibilities:

First, to develop your self-confidence, so you will feel free to speak up. (,,,)

Next, to think about the company as a whole and to discuss it that way – not to talk just about marketing, but about our competitive position and how we make profits.” (Bower, 1997, p.88).