mckinsey 7 step problem solving book

• Business & Money
• Biography & History

Sorry, there was a problem.

Download the free Kindle app and start reading Kindle books instantly on your smartphone, tablet, or computer - no Kindle device required .

Read instantly on your browser with Kindle for Web.

Using your mobile phone camera - scan the code below and download the Kindle app.

Image Unavailable

• To view this video download Flash Player

Follow the authors

The McKinsey Mind: Understanding and Implementing the Problem-Solving Tools and Management Techniques of the World's Top Strategic Consulting Firm Hardcover – October 17, 2001

The groundbreaking follow-up to the international bestseller­­a hands-on guide to putting McKinsey techniques to work in your organization

McKinsey & Company is the most respected and most secretive consulting firm in the world, and business readers just can't seem to get enough of all things McKinsey. Now, hot on the heels of his acclaimed international bestseller The McKinsey Way , Ethan Rasiel brings readers a powerful new guide to putting McKinsey concepts and skills into action­­ The McKinsey Mind . While the first book used case studies and anecdotes from former and current McKinseyites to describe how "the firm" solves the thorniest business problems of their A-list clients, The McKinsey Mind goes a giant step further. It explains, step-by-step, how to use McKinsey tools, techniques and strategies to solve an array of core business problems and to make any business venture more successful.

Designed to work as a stand-alone guide or together with The McKinsey Way , The McKinsey Mind follows the same critically acclaimed style and format as its predecessor. In this book authors Rasiel and Friga expand upon the lessons found in The McKinsey Way with real-world examples, parables, and easy-to-do exercises designed to get readers up and running.

• Print length 272 pages
• Language English
• Publisher McGraw Hill
• Publication date October 17, 2001
• Dimensions 6.3 x 1.1 x 9.3 inches
• ISBN-10 0071374299
• ISBN-13 978-0071374293
• See all details

Editorial Reviews

From the back cover.

The First Step-by-Step Manual for Achieving McKinsey-Style Solutions--and Success

International bestseller The McKinsey Way provided a through-the-keyhole look at McKinsey & Co., history's most prestigious consulting firm. Now, the follow-up implementation manual, The McKinsey Mind , reveals the hands-on secrets behind the powerhouse firm's success--and discusses how executives from any field or industry can use those tactics to be more proactive and successful in their day-to-day decision-making.

Structured around interviews and frontline anecdotes from former McKinsey consultants--as well as the authors, themselves McKinsey alumni-- The McKinsey Mind explores how McKinsey tools and techniques can be applied to virtually any business problem in any setting. Immensely valuable in today's crisis-a-minute workplace, it discusses:

• Techniques for framing problems and designing analyses
• Methods for interpreting results and presenting solutions

The ability to think in a rigorous, structured manner--a McKinsey manner--is not a birthright. It can, however, be a learned behavior. Let The McKinsey Mind show you how to approach and solve problems with the skill of a McKinsey consultant and obtain the positive results that have been delivered to McKinsey clients for over a century.

McKinsey & Co. is renowned throughout the world for its ability to arrive at sharp, insightful analyses of its clients' situations then provide solutions that are as ingenious as they are effective. McKinsey succeeds almost as well as shielding its revolutionary methods from competitors' scrutiny.

Now, The McKinsey Mind pulls back the curtain to reveal the ways in which McKinsey consultants consistently deliver their magic and how those methods can be used to achieve exceptional results in companies from 10 employees to 10,000. Packed with insights and brainstorming exercises for establishing the McKinsey mind-set, this book is an in-depth guidebook for applying McKinsey methods in any industry and organizational environment.

Taking a step-by-step approach, The McKinsey Mind looks at the McKinsey mystique from every angle. Owners, executives, consultants, and team leaders can look to this comprehensive treatment for ways to:

• Follow McKinsey's MECE (mutually exclusive, collectively exhaustive) line of attack
• Frame business problems to make them susceptible to rigorous fact-based analysis
• Use the same fact-based analysis--in conjunction with gut instinct--to make strategic decisions
• Conduct meaningful interviews and effectively summarize the content of those interviews
• Analyze the data to find out the "so what"
• Clearly communicate fact-based solutions to all pertinent decision makers

Because organizational problems rarely exist in a vacuum, The McKinsey Mind discusses these approaches and more to help you arrive at usable and sensible solutions. It goes straight to the source--former McKinsey consultants now in leadership positions in organizations throughout the world--to give you today's only implementation-based, solution-driven look at the celebrated McKinsey problem-solving method.

" The McKinsey Mind provides a fascinating peek at the tools, practices, and philosophies that have helped this much-admired firm develop generations of bright young MBAs into trusted corporate advisors. But the book's practical, down-to-earth advice is not just for consultants. The disciplined way in which McKinsey consultants frame issues, analyze problems, and present solutions offers valuable lessons for any practicing or aspiring manager." --Christopher A. Bartlett, Daewoo Professor of Business Administration, Harvard Business School

"McKinsey and Co. rescues the biggest companies from disaster by addressing every problem with its own mixture of logic-driven, hypothesis-tested analysis. The McKinsey Mind helps everyone learn how to think with the same discipline and devotion to creating business success. According to the maxim, giving a man a fish may feed him for a day, but teaching him to fish will feed him for a lifetime. Paying McKinsey to solve your problem may help you for a day, but learning how they do it should help you for a lifetime." --Peter Wayner, Author of Free For All: How Linux and the Free Software Movement Undercut The High-Tech Titans

"The McKinsey Mind unlocks the techniques of the world's preeminent consulting firm and presents them in a format that is easy to understand and even easier to implement." --Dan Nagy, Associate Dean, The Fuqua School of Business, Duke University

About the Author

Ethan M. Rasiel was a consultant in McKinsey & Co.'s New York office. His clients included major companies in finance, telecommunications, computing, and consumer goods sectors. Prior to joining McKinsey, Rasiel, who earned an MBA from the Wharton School at the University of Pennsylvania, was an equity fund manager at Mercury Asset Management in London, as well as an investment banker.

Paul N. Friga worked for McKinsey & Co. in the Pittsburgh office after receiving his MBA from the Kenan-Flagler Business School at the University of North Carolina. He has conducted consulting projects relating to international expansion, acquisition and strategic planning, education, water, and other industries. He has also consulted for Price Waterhouse. He is currently pursuing his Ph.D. in Strategy at Kenan-Flagler and is Acting Director of the North Carolina Knowledge Management Center.

Product details

• Publisher ‏ : ‎ McGraw Hill; First Edition (October 17, 2001)
• Language ‏ : ‎ English
• Hardcover ‏ : ‎ 272 pages
• ISBN-10 ‏ : ‎ 0071374299
• ISBN-13 ‏ : ‎ 978-0071374293
• Item Weight ‏ : ‎ 2.31 pounds
• Dimensions ‏ : ‎ 6.3 x 1.1 x 9.3 inches
• #30 in Consulting
• #226 in Decision-Making & Problem Solving
• #797 in Business Management (Books)

Videos for this product

Click to play video

The Biggest Lesson from this Book

Omar M Khateeb

About the authors

Ethan m. rasiel.

Discover more of the author’s books, see similar authors, read author blogs and more

Paul N. Friga

Customer reviews.

• 5 star 4 star 3 star 2 star 1 star 5 star 56% 24% 15% 3% 3% 56%
• 5 star 4 star 3 star 2 star 1 star 4 star 56% 24% 15% 3% 3% 24%
• 5 star 4 star 3 star 2 star 1 star 3 star 56% 24% 15% 3% 3% 15%
• 5 star 4 star 3 star 2 star 1 star 2 star 56% 24% 15% 3% 3% 3%
• 5 star 4 star 3 star 2 star 1 star 1 star 56% 24% 15% 3% 3% 3%

Customer Reviews, including Product Star Ratings help customers to learn more about the product and decide whether it is the right product for them.

To calculate the overall star rating and percentage breakdown by star, we don’t use a simple average. Instead, our system considers things like how recent a review is and if the reviewer bought the item on Amazon. It also analyzed reviews to verify trustworthiness.

Customers say

Customers find the book well-written, easy to follow, and complete. They say it provides practical content for consultants, leaders, and managers. Readers also mention the book is educational, methodical, and insightful for those considering consulting as a career.

AI-generated from the text of customer reviews

Customers find the book well-written, with an easy-to-follow flow and good illustrations. They say it's a quick, easy read yet complete guide for newbies.

" Awesome book !Must have for anyone planning on working in either internal/external consulting or strategy in any company...." Read more

"This is a good business book ...." Read more

"It is a nice book , however, I enjoy reading Victor Cheng's blog and emails much better...." Read more

"A very well written book with an easy to follow flow and good illustration of problem-solving tools and how to use them within one's business or for..." Read more

Customers find the advice in the book practical, with good explanations and examples. They say it's highly educative, methodical, and insightful for those considering consulting as a career. Readers also mention the book provides an interesting framework that can help them develop their own approach. They describe it as 'a quick, easy read, yet complete guide for newbies in the consulting business'. They appreciate the good illustration of problem-solving tools.

"...not go into strategy consulting, but this book has helped me sharpen my consultative skills ." Read more

"...I believe it provides a pretty good overview of how business consultants (mostly strategy) approach problems analytically...." Read more

" Very useful " Read more

"...The good thing is these are essential field manuals , so you can read and use them over and over in your practice to become a real professional and..." Read more

• Sort reviews by Top reviews Most recent Top reviews

Top reviews from the United States

There was a problem filtering reviews right now. please try again later..

Top reviews from other countries

• About Amazon
• Investor Relations
• Amazon Devices
• Amazon Science
• Sell products on Amazon
• Sell on Amazon Business
• Sell apps on Amazon
• Become an Affiliate
• Advertise Your Products
• Self-Publish with Us
• Host an Amazon Hub
• › See More Make Money with Us
• Amazon Business Card
• Shop with Points
• Reload Your Balance
• Amazon Currency Converter
• Amazon and COVID-19
• Your Account
• Your Orders
• Shipping Rates & Policies
• Returns & Replacements
• Manage Your Content and Devices

• Conditions of Use
• Privacy Notice
• Consumer Health Data Privacy Disclosure
• Your Ads Privacy Choices

The Imperfectionists

“An engaging collection of often novel and excellent advice for business leaders, which draws on the wisdom of long experience and on many memorable examples of decisions and their consequences. Imperfectionism is a powerful idea.” – Professor Daniel Kahneman, Nobel Laureate

“Under today’s conditions, the authors argue that real-time problem solving should be the heart of strategy development rather than theoretical frameworks, and they present a framework for this approach.”  In Uncertain Times, Embrace Imperfectionism

The world is changing faster and faster, with increasing uncertainty and threat of disruption in every business and nonprofit segment. Conventional approaches to strategy development no longer work.

In this prequel to their Amazon-bestseller, Bulletproof Problem Solving, Conn and McLean introduce a novel approach to strategic problem solving in times of high uncertainty. Based on a decade of research and 45 new case studies, The Imperfectionists posits a dynamic approach to developing organizational direction under uncertainty based on harnessing six reinforcing strategic mindsets.

Imperfectionists are curious, they look at problems from several perspectives, and gather new data and approaches, including from outside their current industry. They deliberately step into risk, proceeding through trial and error, utilizing nimble low consequence and reversible moves to deepen their understanding of the unfolding game being played, and to build capabilities. Imperfectionists succeed with dynamic, real time strategic problem solving, confidently moving forward while others wait for certainty or make impetuous and foolish bets.

McLean and Conn’s The Imperfectionists is a breath of fresh air among books on business strategy. They correctly take problem-solving as the most crucial skill in the strategist’s toolkit and explore six different ways of thinking about difficult uncertain situations. If your company is struggling with “strategies” that are just three-year budgets, get this book as quickly as you can. It will open your mind to powerful ways of dealing with uncertainty and complexity. – Professor Richard Rumelt, author Good Strategy, Bad Strategy and The Crux

Introducing the Bulletproof Problem Solving online course

Complex problem solving is  the  core skill for the 21st  Century , the only way to keep up with rapid change.  But systematic problem solving is not taught in most universities and graduate schools. The online course covers the  seven-step approach to creative problem solving  developed in leading consulting firms. It employs a  highly visual, logic-tree method  that can be applied to almost any problem, from strategic business decisions to global social challenges. Conn and McLean, with  decades of   experience at McKinsey, start-up companies, and environment-focused foundations,  provide a toolkit with detailed, real-world examples.

For current students: Lost password? Reset it here at Go1.

Bulletproof Problem Solving Online Course

The Bulletproof Problem Solving online course is a comprehensive and interactive course that provides the user with key learnings from the best selling book,  Bulletproof Problem Solving: The One Skill That Changes Everything . The online course provides insights from the Bulletproof Problem Solving authors, Conn and McLean.

The online course is a self guided, highly interactive course with 4-6 hours of content. The course is designed for people to work at their own pace and develop the problem solving skills employed at leading management consulting firms. There are many worked example problems to practice the 7-step process, as well as a bonus workbook to help solve problems from your own organisation.  

7 Steps to Problem Solving

Bulletproof Problem Solving

Complex problem solving is the core skill for 21st century teams. It’s the only way to keep up with rapid change. Winning organizations now rely on nimble, iterative problem solving, rather than the traditional planning processes. I had the opportunity to speak with Charles Conn and Robert McLean, two McKinsey alums who share a seven-step systematic approach to creative problem solving that will work in any field or industry. Their new book is BULLETPROOF PROBLEM SOLVING: The One Skill That Changes Everything .

New Skills Required

Would you share a little about the evolution of managerial skills and what skills are needed in the current era?

This new era of focus on creative problem solving has been ushered in by massive disruption of the old order in business and society. New business models are rapidly emerging from revolutionary Internet, machine learning, and bioscience technologies that threaten the status quo in every field. Technology change is speeding business up and providing an edge for disruptive innovators.

As a consequence of accelerating change, the old model of managerial skill development and application is no longer effective.  It used to be that you could learn the core skills for a career in college and graduate school – think management, accounting, law – and then apply it over forty years.  Strategic planning in business assumed an existing playing field and known actors. Today savvy business leaders are prioritizing complex problem solving skills in hiring rather than old domain knowledge, and emphasizing agile team problem solving over traditional planning cycles. This approach rewards the ability to see and quickly respond to new opportunities and threats over the slower traditional big company departmental responses.

We are seeing growing awareness of this. David Brooks of the New York Times said recently, “It doesn’t matter if you are working in the cafeteria or the inspection line of a plant, companies will only hire people who can see problems and organize responses.” And The World Economic Forum in its Future of Jobs Report placed complex problem solving at #1 in its top 10 skills for jobs in 2020.

For those who feel ill-prepared for this era, what are the best ways to acquire the needed skills?

Unfortunately, despite an increasing recognition in the business press that problem solving is the core 21 st century skill, our universities and graduate schools rarely teach systematic problem solving or modern team decision making skills. This is starting to change, and we are seeing that in moves by the OECD and Council for Aid to Education (CAE) which administers the College Learning Assessment plus test.

The OECD Program for International Student Assessment (PISA) started testing individual problem solving skills in 2012 and added collaborative problem solving skills in the 2015 assessments. One of the interesting early findings is that to teach students to become better problem solvers involves other capabilities than simply teaching reading, mathematics, and science literacy well. Capabilities such as creativity, logic, and reasoning are essential contributors to students becoming better problem solvers. That is what this book is about.

You share seven steps in your bulletproof problem solving approach. How did you develop it?

The 7-steps approach to problem solving has its roots in the hypothesis-driven structure of the scientific method, but was developed into an approach for business problem solving at McKinsey & Company.  Charles wrote one of the early internal documents to systematic problem solving in McKinsey, and both of us have developed the approach further for application more broadly to personal, social and environmental problems at all scales in later work with the Nature Conservancy, the Gordon & Betty Moore Foundation, the Rhodes Trust and in start-up companies where we are investors.

1: Define the problem.

2: Disaggregate.

3: Prioritize.

4: Workplan.

5: Analyze.

6: Synthesize.

7. Communicate.

Is there one part of it normally missed or not focused on as much as it should be?

What are some of the best methods for overcoming biases in decision making?

The most important biases to address are confirmation bias, anchoring bias, and loss aversion.  These are deep seated in our psyches and often reinforced by traditional hierarchies. We use some simple team approaches to fight bias, including perspective-taking (the act of modeling another team member’s assertion or belief to the point that you can describe it as compellingly as the other), role playing (where you act out one side or the other of difficult choice, sometimes in a red team/blue team structure), team distributive voting on analyses and solution paths (one approach we have used is to assign each team member 10 votes, represented by sticky notes, and have each team member use them to vote on their favorite analysis, allowing cumulative or bullet voting, with the most senior person voting last, so as not to bias the choices of more junior members). The most important team norm to encourage is the obligation to dissent, which means every team member is required to verbally contest decisions when they disagree, regardless of seniority.

What do leadership teams most struggle with in the new environment?

The biggest challenge is the speed of change, which pressures all the management approaches we were taught in business school, particularly around planning cycles.  The leadership teams that get good at this typically form and re-form cross-functional teams to deploy on issues as they arise, rather than waiting for conventional departmental responses.  And they are comfortable using rapid design cycles to prototype and test products/services in the market, rather than depending on traditional marketing analysis.

How will AI impact the bulletproof approach?

We believe good organization problem solving will increasingly utilize advances in artificial intelligence to predict patterns in consumer behavior, disease, credit risk, and other complex phenomena.  Machine learning is getting better at pattern recognition than most humans. But that isn’t the whole story. To meet the challenges of the twenty-first century, mental muscle and machine muscle have to work together. Machine learning frees human problem solvers from computational drudgery and amplifies the pattern recognition required for faster organizational response to external challenges. For this partnership to work, twenty-first century organizations need staff who are quick on their feet, who learn new skills quickly, and who attack emerging problems with confidence.

For more information, see BULLETPROOF PROBLEM SOLVING: The One Skill That Changes Everything .

Continue Reading

Popular posts.

Learn the important power of prioritizing sleep

Subscribe today and receive a free e-book.  Get  Your Guide to a Solid Night of Sleep   free  when you sign up to receive blog updates via email.

Thank you! Please check your inbox to confirm your subscription.

Pin it on pinterest.

• Print Friendly

Resources >

Mckinsey approach to problem solving, a guide to the 7-step mckinsey problem solving process.

McKinsey and Company is recognized for its rigorous approach to problem solving. They train their consultants on their seven-step process that anyone can learn.

This resource guides you through that process, largely informed by the McKinsey Staff Paper 66. It also includes a PowerPoint Toolkit with slide templates of each step of the process that you can download and customize for your own use.

In this guide you'll learn:

Overview of the mckinsey approach to problem solving, problem solving process, problem definition.

• Problem Statement

Stakeholder Analysis Worksheet

Structure the problem, hypothesis trees, issue trees, analyses and workplan, synthesize findings, craft recommendations, communicate, distinctiveness practices, harness the power of collaboration, sources and additional reading, request the mckinsey approach to problem solving.

Problem solving — finding the optimal solution to a given business opportunity or challenge — is the very heart of how consultants create client impact, and considered the most important skill for success at McKinsey.

The characteristic “McKinsey method” of problem solving is a structured, inductive approach that can be used to solve any problem. Using this standardized process saves us from reinventing the problem-solving wheel, and allows for greater focus on distinctiveness in the solution. Every new McKinsey associate must learn this method on his or her first day with the firm.

There are four fundamental disciplines of the McKinsey method:

1. Problem definition

A thorough understanding and crisp definition of the problem.

2. The problem-solving process

Structuring the problem, prioritizing the issues, planning analyses, conducting analyses, synthesizing findings, and developing recommendations.

3. Distinctiveness practices

Constructing alternative perspectives; identifying relationships; distilling the essence of an issue, analysis, or recommendation; and staying ahead of others in the problem-solving process.

4. Collaboratio n

Actively seeking out client, customer, and supplier perspectives, as well as internal and external expert insight and knowledge.

Once the problem has been defined, the problem-solving process proceeds with a series of steps:

• Structure the problem
• Prioritize the issues
• Plan analyses
• Conduct analyses
• Synthesize findings
• Develop recommendations

Not all problems require strict adherence to the process. Some steps may be truncated, such as when specific knowledge or analogies from other industries make it possible to construct hypotheses and associated workplans earlier than their formal place in the process. Nonetheless, it remains important to be capable of executing every step in the basic process.

When confronted with a new and complex problem, this process establishes a path to defining and disaggregating the problem in a way that will allow the team to move to a solution. The process also ensures nothing is missed and concentrates efforts on the highest-impact areas. Adhering to the process gives the client clear steps to follow, building confidence, credibility, and long-term capability.

The most important step in your entire project is to first carefully define the problem. The problem definition will serve the guide all of the team’s work, so it is critical to ensure that all key stakeholders agree that it is the right problem to be solving.

The problem definition will serve the guide all of the team’s work, so it is critical to ensure that all key stakeholders agree that it is the right problem to be solving.

There are often dozens of issues that a team could focus on, and it is often not obvious how to define the problem.

In any real-life situation, there are many possible problem statements. Your choice of problem statement will serve to constrain the range of possible solutions.

Constraints can be a good thing (e.g., limit solutions to actions within the available budget.) And constraints can be a bad thing (e.g., eliminating the possibility of creative ideas.) So choose wisely.

The problem statement may ignore many issues to focus on the priority that should be addressed. The problem statement should be phrased as a question, such that the answer will be the solution.

Example scenario – A family on Friday evening :

A mother, a father, and their two teenage children have all arrived home on a Friday at 6 p.m. The family has not prepared dinner for Friday evening. The daughter has lacrosse practice on Saturday and an essay to write for English class due on Monday. The son has theatre rehearsal on both Saturday and Sunday and will need one parent to drive him to the high school both days, though he can get a ride home with a friend.

The family dog, a poodle, must be taken to the groomer on Saturday morning. The mother will need to spend time this weekend working on assignments for her finance class she is taking as part of her Executive MBA. The father plans to go on a 100-mile bike ride, which he can do either Saturday or Sunday. The family has two cars, but one is at the body shop. They are trying to save money to pay for an addition to their house.

Potential problem definitions – A family on Friday evening :

The problem definition should not be vague, without clear measures of success. Rather, it should be a SMART definition:

• Action-oriented

Given one set of facts, it is possible to come up with many possible problem statements. The choice of problem statement constrains the range of possible solutions.

Before starting to solve the problem, the family first needs to agree on what problem they want to solve.

• What should the family do for dinner on Friday night?
• How can the family schedule their activities this weekend to accomplish everything planned given that they only have one vehicle available?
• How can the family increase income or reduce expenses to allow them to save $75K over the next 12 months to pay for the planned addition to their house?

Problem Statement Worksheet

This is a helpful tool to use to clearly define the problem. There are often dozens of issues that a team could focus on, and it is often not obvious how to define the problem. In any real-life situation, there are many possible problem statements. Your choice of problem statement will serve to constrain the range of possible solutions.

• Use a question . The problem statement should be phrased as a question, such that the answer will be the solution. Make the question SMART: specific, measurable, action-oriented, relevant, and time-bound. Example: “How can XYZ Bank close the $100 million profitability gap in two years?”
• Context . What are the internal and external situations and complications facing the client, such as industry trends, relative position within the industry, capability gaps, financial flexibility, and so on?
• Success criteria . Understand how the client and the team define success and failure. In addition to any quantitative measures identified in the basic question, identify other important quantitative or qualitative measures of success, including timing of impact, visibility of improvement, client capability building required, necessary mindset shifts, and so on.
• Scope and constraints . Scope most commonly covers the markets or segments of interest, whereas constraints govern restrictions on the nature of solutions within those markets or segments.
• Stakeholders . Explore who really makes the decisions — who decides, who can help, and who can block.
• Key sources of insight . What best-practice expertise, knowledge, and engagement approaches already exist? What knowledge from the client, suppliers, and customers needs to be accessed? Be as specific as possible: who, what, when, how, and why.

In completing the Problem Statement Worksheet, you are prompted to define the key stakeholders.

As you become involved in the problem-solving process, you should expand the question of key stakeholders to include what the team wants from them and what they want from the team, their values and motivations (helpful and unhelpful), and the communications mechanisms that will be most effective for each of them.

Using the Stakeholder Analysis Worksheet allows you to comprehensively identify:

• Stakeholders
• What you need from them
• Where they are
• What they need from you

The two most helpful techniques for rigorously structuring any problem are hypothesis trees and issue trees. Each of these techniques disaggregates the primary question into a cascade of issues or hypotheses that, when addressed, will together answer the primary question.

A hypothesis tree might break down the same question into two or more hypotheses. 

The aim at this stage is to structure the problem into discrete, mutually exclusive pieces that are small enough to yield to analysis and that, taken together, are collectively exhaustive.

Articulating the problem as hypotheses, rather than issues, is the preferred approach because it leads to a more focused analysis of the problem. Questions to ask include:

• Is it testable – can you prove or disprove it?
• It is open to debate? If it cannot be wrong, it is simply a statement of fact and unlikely to produce keen insight.
• If you reversed your hypothesis – literally, hypothesized that the exact opposite were true – would you care about the difference it would make to your overall logic?
• If you shared your hypothesis with the CEO, would it sound naive or obvious?
• Does it point directly to an action or actions that the client might take?

Quickly developing a powerful hypothesis tree enables us to develop solutions more rapidly that will have real impact. This can sometimes seem premature to clients, who might find the “solution” reached too quickly and want to see the analysis behind it.

Take care to explain the approach (most important, that a hypothesis is not an answer) and its benefits (that a good hypothesis is the basis of a proven means of successful problem solving and avoids “boiling the ocean”).

Example: Alpha Manufacturing, Inc.

Problem Statement: How can Alpha increase EBITDA by $13M (to $50M) by 2025?

The hypotheses might be:

• Alpha can add $125M revenues by expanding to new customers, adding $8M of EBITDA
• Alpha can reduce costs to improve EBITDA by $5M

These hypotheses will be further disaggregated into subsidiary hypotheses at the next level of the tree.

Often, the team has insufficient knowledge to build a complete hypothesis tree at the start of an engagement. In these cases, it is best to begin by structuring the problem using an issue tree.

An issue tree is best set out as a series of open questions in sentence form. For example, “How can the client minimize its tax burden?” is more useful than “Tax.” Open questions – those that begin with what, how, or why– produce deeper insights than closed ones. In some cases, an issue tree can be sharpened by toggling between issue and hypothesis – working forward from an issue to identify the hypothesis, and back from the hypothesis to sharpen the relevant open question.

Once the problem has been structured, the next step is to prioritize the issues or hypotheses on which the team will focus its work. When prioritizing, it is common to use a two-by-two matrix – e.g., a matrix featuring “impact” and “ease of impact” as the two axes.

Applying some of these prioritization criteria will knock out portions of the issue tree altogether. Consider testing the issues against them all, albeit quickly, to help drive the prioritization process.

Once the criteria are defined, prioritizing should be straightforward: Simply map the issues to the framework and focus on those that score highest against the criteria.

As the team conducts analysis and learns more about the problem and the potential solution, make sure to revisit the prioritization matrix so as to remain focused on the highest-priority issues.

The issues might be:

• How can Alpha increase revenue?
• How can Alpha reduce cost?

Each of these issues is then further broken down into deeper insights to solutions.

If the prioritization has been carried out effectively, the team will have clarified the key issues or hypotheses that must be subjected to analysis. The aim of these analyses is to prove the hypotheses true or false, or to develop useful perspectives on each key issue. Now the task is to design an effective and efficient workplan for conducting the analyses.

Transforming the prioritized problem structure into a workplan involves two main tasks:

• Define the blocks of work that need to be undertaken. Articulate as clearly as possible the desired end products and the analysis necessary to produce them, and estimate the resources and time required.
• Sequence the work blocks in a way that matches the available resources to the need to deliver against key engagement milestones (e.g., important meetings, progress reviews), as well as to the overall pacing of the engagement (i.e., weekly or twice-weekly meetings, and so on).

A good workplan will detail the following for each issue or hypothesis: analyses, end products, sources, and timing and responsibility. Developing the workplan takes time; doing it well requires working through the definition of each element of the workplan in a rigorous and methodical fashion.

It’s useful to match the workplan to three horizons:

• What is expected at the end of the engagement
• What is expected at key progress reviews
• What is due at daily and/or weekly team meetings

The detail in the workplan will typically be greater for the near term (the next week) than for the long term (the study horizon), especially early in a new engagement when considerable ambiguity about the end state remains.

Here are three different templates for a workplan:

This is the most difficult element of the problem-solving process. After a period of being immersed in the details, it is crucial to step back and distinguish the important from the merely interesting. Distinctive problem solvers seek the essence of the story that will underpin a crisp recommendation for action.

Although synthesis appears, formally speaking, as the penultimate step in the process, it should happen throughout. Ideally, after you have made almost any analytical progress, you should attempt to articulate the “Day 1” or “Week 1” answer. Continue to synthesize as you go along. This will remind the team of the question you are trying to answer, assist prioritization, highlight the logical links of the emerging solution, and ensure that you have a story ready to articulate at all times during the study.

McKinsey’s primary tool for synthesizing is the pyramid principle. Essentially, this principle asserts that every synthesis should explain a single concept, per the “governing thought.” The supporting ideas in the synthesis form a thought hierarchy proceeding in a logical structure from the most detailed facts to the governing thought, ruthlessly excluding the interesting but irrelevant.

While this hierarchy can be laid out as a tree (like with issue and hypothesis trees), the best problem solvers capture it by creating dot-dash storylines — the Pyramid Structure for Grouping Arguments.

Pyramid Structure for Grouping Arguments

• Focus on action. Articulate the thoughts at each level of the pyramid as declarative sentences, not as topics. For example, “expansion” is a topic; “We need to expand into the European market” is a declarative sentence.
• Use storylines. PowerPoint is poor at highlighting logical connections, therefore is not a good tool for synthesis. A storyline will clarify elements that may be ambiguous in the PowerPoint presentation.
• Keep the emerging storyline visible. Many teams find that posting the storyline or story- board on the team-room wall helps keep the thinking focused. It also helps in bringing the client along.
• Use the situation-complication-resolution structure. The situation is the reason there is action to be taken. The com- plication is why the situation needs thinking through – typically an industry or client challenge. The resolution is the answer.
• Down the pyramid: does each governing thought pose a single question that is answered completely by the group of boxes below it?
• Across: is each level within the pyramid MECE?
• Up: does each group of boxes, taken together, provide one answer – one “so what?” – that is essentially the governing thought above it?
• Test the solution. What would it mean if your hypotheses all came true?

It is at this point that we address the client’s questions: “What do I do, and how do I do it?” This means not offering actionable recommendations, along with a plan and client commitment for implementation.

The essence of this step is to translate the overall solution into the actions required to deliver sustained impact. A pragmatic action plan should include:

• Relevant initiatives, along with a clear sequence, timing, and mapping of activities required
• Clear owners for each initiative
• Key success factors and the challenges involved in delivering on the initiatives

Crucial questions to ask as you build recommendations for organizational change are:

• Does each person who needs to change (from the CEO to the front line) understand what he or she needs to change and why, and is he or she committed to it?
• Are key leaders and role models throughout the organization personally committed to behaving differently?
• Has the client set in place the necessary formal mechanisms to reinforce the desired change?
• Does the client have the skills and confidence to behave in the desired new way?

Once the recommendations have been crafted in the problem-solving process, it’s vital to effectively communicate those findings and recommendations.

An executive summary is a great slide to use for this. See more on executive summary slides, including 30 templates, at our Ultimate Guide to Executive Summary Slides .

Great problem solvers identify unique disruptions and discontinuities, novel insights, and step-out opportunities that lead to truly distinctive impact. This is done by applying a number of practices throughout the problem-solving process to help develop these insights.

Expand: Construct multiple perspectives

Identifying alternative ways of looking at the problem expands the range of possibilities, opens you up to innovative ideas, and allows you to formulate more powerful hypotheses. Questions that help here include:

• What changes if I think from the perspective of a customer, or a supplier, or a frontline employee, or a competitor?
• How have other industries viewed and addressed this same problem?
• What would it mean if the client sought to run the company like a low-cost airline or a cosmetics manufacturer?

Link: Identify relationships

Strong problem solvers discern connections and recognize patterns in two different ways:

• They seek out the ways in which different problem elements – issues, hypotheses, analyses, work elements, findings, answers, and recommendations – relate to one another.
• They use these relationships throughout the basic problem-solving process to identify efficient problem-solving approaches, novel solutions, and more powerful syntheses.

Distill: Find the essence

Cutting through complexity to identify the heart of the problem and its solution is a critical skill.

• Identify the critical problem elements. Are there some issues, approaches, or options that can be eliminated completely because they won’t make a significant difference to the solution?
• Consider how complex the different elements are and how long it will take to complete them. Wherever possible, quickly advance simpler parts of the problem that can inform more complex or time-consuming elements.

Lead: Stay ahead/step back

Without getting ahead of the client, you cannot be distinctive. Paradoxically, to get ahead – and stay ahead – it is often necessary to step back from the problem to validate or revalidate the approach and the solution.

• Spend time thinking one or more steps ahead of the client and team.
• Constantly check and challenge the rigor of the underlying data and analysis.
• Stress-test the whole emerging recommendation
• Challenge the solution against a set of hurdles. Does it satisfy the criteria for success as set out on the Problem Statement Worksheet?

No matter how skilled, knowledgeable, or experienced you are, you will never create the most distinctive solution on your own. The best problem solvers know how to leverage the power of their team, clients, the Firm, and outside parties. Seeking the right expertise at the right time, and leveraging it in the right way, are ultimately how we bring distinctiveness to our work, how we maximize efficiency, and how we learn.

When solving a problem, it is important to ask, “Have I accessed all the sources of insight that are available?” Here are the sources you should consider:

• Your core team
• The client’s suppliers and customers
• Internal experts and knowledge
• External sources of knowledge
• Communications specialists

The key here is to think open, not closed. Opening up to varied sources of data and perspectives furthers our mission to develop truly innovative and distinctive solutions for our clients.

• McKinsey Staff Paper 66 — not published by McKinsey but possibly found through an internet search
• The McKinsey Way , 1999, by Ethan M. Rasiel

For consultants

© Copyright 2024 by Umbrex

Designed by our friends at Filez

• Privacy Policy
• Terms of Service

What is the McKinsey 7-Step Problem Solving Process?

• Updated September 4, 2024
• Posted in Problem Solving
• Tagged as Problem Solving
• 9 mins read

Think about all the harebrained ideas and strategies that big companies pursue. Why do they make such obviously silly decisions? They don’t have a disciplined process for analyzing problems and finding good solutions.

I will delve into the famed McKinsey 7-step problem-solving process today.

Legendary management consulting firm McKinsey & Company takes problem-solving extremely seriously. They have developed and refined a structured 7-step methodology that all McKinsey consultants use to methodically work through challenges. As former McKinsey partner Charles Conn states,

“By following steps, we can more clearly understand what problem it is we’re solving, what are the components of the problem, which components are most important to pay attention to, which analytic techniques to apply, and how to synthesize learnings into a compelling solution story.”

This methodology is used by top consultants to methodically work through even the trickiest issues. While no framework is perfect, this one at least forces you to slow down and think things through deliberately.

What is the 7-Step Problem Solving Process?

The McKinsey 7-step problem-solving process is a methodology developed by the prestigious consulting firm McKinsey & Company. It provides a structured way to think through difficult situations and develop solutions.

The 7 steps are:

• Define the problem
• Structure the problem
• Prioritize root causes
• Develop initial hypotheses
• Test key hypotheses
• Synthesize and converge on solutions
• Outline execution plan

By rigorously working through each phase, you avoid missing key details or jumping to flawed conclusions. It results in more thorough and effective problem-solving.

The 7 Steps Explained

Let’s dive into each of the 7 steps in more detail:

Step 1: Define the Problem

You can’t solve a problem until you truly understand what the heck it is. This deceptively simple first step is critical.

Ask: What is the actual problem we’re trying to solve here? What are the symptoms and effects we’re seeing? What are the goals and objectives? Get crystal clear upfront.

Many problem solving efforts fail right out of the gate because there was never precise agreement on the problem itself. Properly defining the problem ensures everyone is aligned and working towards the same endpoint.

Step 2: Structure the Problem

Once you know the core problem, you need to break it down into its components. Diagram it visually using tools like issue trees and prioritization matrices.

The goal is to uncover root causes rather than just treating symptoms. Look for relationships between different factors. Structuring makes the inherent complexities more understandable.

Step 3: Prioritize Root Causes

With the problem neatly structured, identify the 2-3 main root causes to prioritize. These are the areas where focusing your efforts will have the biggest impact.

Don’t spread yourself too thin by trying to tackle everything at once. Find the highest leverage points that will drive a disproportionate amount of the solution.

Step 4: Develop Initial Hypotheses

Time to start formulating potential solutions! Based on your diagnosed root causes, generate hypotheses about what changes could alleviate or eliminate the core issues.

Don’t jump straight to recommending solutions yet, but form educated guesses about promising directions to explore further. Hypotheses help avoid getting anchored on any single remedy too early.

Step 5: Test Key Hypotheses

Validate your hypotheses through research, analysis, experiments, and testing. Gather data and feedback to determine which ideas have merit versus which should be discarded.

This step is all about objectively evaluating your potential solutions before committing major resources. Ruling out the bad ideas early saves immense time and effort.

Step 6: Synthesize and Converge on Solutions

Now that you’ve pressure-tested your options, you can put together a concrete plan of attack. This is where you finally propose your recommended solutions to the problem.

Based on your testing results, synthesize the optimal combination of remedies into an integrated solution roadmap. It should comprehensively address the core issues at their root.

Step 7: Outline Execution Plan

The final step is determining how actually to implement your solutions. What resources are required? What roadblocks might you face? How will you track progress?

Build out a detailed plan for execution, including key milestones, owners, budgets, etc. Careful planning in this step paves the way for a smooth rollout.

When to Use McKinsey’s 7-Step Process

The 7-step methodology is most valuable for complex, ambiguous problems with unclear paths. It provides a rigorous framework to impose order on messy situations.

For straightforward issues with obvious solutions, the process may be overkill. It works best when dealing with:

• Strategic pivots or directional shifts
• Organizational change or restructuring
• Operational optimization or process redesign
• Financial performance troubleshooting
• Any mission-critical business challenge

Whenever you’re facing a high-stakes quandary that impacts key outcomes, applying a proven process like this can mitigate risks of overlooking key factors or making rash decisions.

Strengths and Weaknesses

Like any framework, the McKinsey 7-step approach has its pros and cons:

• Imposes logical structure on fuzzy situations
• Helps uncover root causes vs. just symptoms
• Forces disciplined, hypothesis-driven thinking
• Results in comprehensive, data-backed solutions
• Useful for complex, cross-functional issues

Weaknesses:

• Can be overly rigid for simpler problems
• Doesn’t account for time/resource constraints
• Overemphasis on analysis can lead to “paralysis”
• Relies heavily on assumptions and judgments
• Mostly internally focused; lacks outside perspective

No model is perfect, but the 7 steps at least provide guard rails for tackling thorny problem-solving challenges in a structured way.

Dealing with Uncertainty

One of the defining challenges of problem-solving in today’s ever-changing business landscape is the pervasive presence of uncertainty. Rapidly evolving markets, disruptive technologies, geopolitical instability, and a host of other factors continuously introduce new unknowns.

This makes it critical that any structured problem-solving methodology has mechanisms built in to explicitly identify, analyze, and manage uncertainties throughout the process. The McKinsey 7-step approach achieves this in multiple ways:

Step 1: Define Uncertainty in the Problem Context From the outset, a crucial part of problem definition is fleshing out the key sources and degrees of uncertainty surrounding the issue. What are the volatile factors that could significantly impact the situation? What future scenarios need to be accounted for? Explicitly calling out ambiguities upfront prevents them from being overlooked.

Step 2: Uncertainty Branches in the Structure When disaggregating the problem into structured issue trees, distinct branches can be created to separately examine different uncertain elements and scenarios. This allows for rigorous mapping of how these uncertainties could affect other components of the problem.

Step 3: Prioritize Based on Impact x Uncertainty The prioritization phase provides an opportunity to assign intentional weight and emphasis to uncertain factors based on their potential impact and likelihood. High-impact branches with large uncertainties may get prioritized over more certain but lower-impact areas.

Step 4: Design a Hedging & Learning Plan Part of the work plan development involves designing analyses and techniques to reduce key uncertainties through research, modeling, tests, and experiments. It also involves mapping out contingency plans to hedge against various possible outcomes related to uncertainties that cannot be fully resolved upfront.

Step 5: Test Assumptions & Scenarios As the kernel hypotheses around uncertain factors are pressure-tested through analysis, the team is forced to confront and revisit the validity of assumptions. Results may invalidate certain scenarios envisioned earlier while raising new potential uncertainties to consider.

Step 6: Integrate Uncertainty into the Synthesis When synthesizing the final solution and recommendations, it is imperative to attach confidence intervals, risk factors, and contingency triggers. The team should make clear which aspects of the solution are higher or lower conviction based on remaining uncertainties.

Step 7: Build Feedback Loops in the Execution Plan Dealing with uncertainty is not a one-and-done exercise. The execution plan must include mechanisms for continual monitoring of uncertain factors, course correction if needed, and a feedback loop to refine the solution as new information emerges over time.

By systematically integrating uncertainty at each phase, the McKinsey 7-step methodology imposes a disciplined process around identifying, prioritizing, analyzing, and managing ambiguities. This maximizes the robustness of solutions in our increasingly unpredictable world.

Q: Where does the McKinsey 7-step process come from? A: It was developed by the elite management consulting firm McKinsey & Company as a structured approach for their engagements.

Q: How long does it take to go through all 7 steps? A: The duration varies widely depending on the complexity of the issue and the scope involved. For a major strategic overhaul at a large company, it could take months. For a smaller operational issue, potentially just weeks.

Q: Do you have to follow the steps exactly as laid out? A: No, the 7 steps are simply a general guiding framework. Experienced practitioners will adapt and modify the process as needed for each unique situation.

Q: Is this process only for business problems? A: No, the same core principles can be applied to all kinds of problems outside of business as well, from public policy to personal goal-setting. The fundamentals of structured problem-solving translate widely.

Q: What skills are required to use this process effectively? A: Key abilities include analytical thinking, data synthesis, attention to detail, project management, and communication. Prior consulting experience isn’t necessarily required with the right training.

McKinsey 7-Step Problem Solving Quiz

1. Do you define the problem clearly before brainstorming solutions?

2. Do you structure the problem by breaking it down into manageable parts?

3. Do you prioritize issues to focus on the most important aspects?

4. Do you generate a hypothesis before analyzing the problem in depth?

5. Do you rely on data and facts to validate your hypothesis?

Cook with me Share this content

• Opens in a new window X
• Opens in a new window Facebook
• Opens in a new window WhatsApp

You Might Also Like

What are the Barriers to Problem Solving?

Best Problem Solving Techniques and Methods

How to Solve Problems in Relationships?

Leave a reply cancel reply.

Save my name, email, and website in this browser for the next time I comment.

McKinsey Problem Solving: Six steps to solve any problem and tell a persuasive story

The McKinsey problem solving process is a series of mindset shifts and structured approaches to thinking about and solving challenging problems. It is a useful approach for anyone working in the knowledge and information economy and needs to communicate ideas to other people.

Over the past several years of creating StrategyU, advising an undergraduates consulting group and running workshops for clients, I have found over and over again that the principles taught on this site and in this guide are a powerful way to improve the type of work and communication you do in a business setting.

When I first set out to teach these skills to the undergraduate consulting group at my alma mater, I was still working at BCG. I was spending my day building compelling presentations, yet was at a loss for how to teach these principles to the students I would talk with at night.

Through many rounds of iteration, I was able to land on a structured process and way of framing some of these principles such that people could immediately apply them to their work.

While the “official” McKinsey problem solving process is seven steps, I have outline my own spin on things – from experience at McKinsey and Boston Consulting Group. Here are six steps that will help you solve problems like a McKinsey Consultant:

Step #1: School is over, stop worrying about “what” to make and worry about the process, or the “how”

When I reflect back on my first role at McKinsey, I realize that my biggest challenge was unlearning everything I had learned over the previous 23 years. Throughout school you are asked to do specific things. For example, you are asked to write a 5 page paper on Benjamin Franklin — double spaced, 12 font and answering two or three specific questions.

In school, to be successful you follow these rules as close as you can. However, in consulting there are no rules on the “what.” Typically the problem you are asked to solve is ambiguous and complex — exactly why they hire you. In consulting, you are taught the rules around the “how” and have to then fill in the what.

The “how” can be taught and this entire site is founded on that belief. Here are some principles to get started:

Step #2: Thinking like a consultant requires a mindset shift

There are two pre-requisites to thinking like a consultant. Without these two traits you will struggle:

• A healthy obsession looking for a “better way” to do things
• Being open minded to shifting ideas and other approaches

In business school, I was sitting in one class when I noticed that all my classmates were doing the same thing — everyone was coming up with reasons why something should should not be done.

As I’ve spent more time working, I’ve realized this is a common phenomenon. The more you learn, the easier it becomes to come up with reasons to support the current state of affairs — likely driven by the status quo bias — an emotional state that favors not changing things. Even the best consultants will experience this emotion, but they are good at identifying it and pushing forward.

Key point : Creating an effective and persuasive consulting like presentation requires a comfort with uncertainty combined with a slightly delusional belief that you can figure anything out.

Step #3: Define the problem and make sure you are not solving a symptom

Before doing the work, time should be spent on defining the actual problem. Too often, people are solutions focused when they think about fixing something. Let’s say a company is struggling with profitability. Someone might define the problem as “we do not have enough growth.” This is jumping ahead to solutions — the goal may be to drive more growth, but this is not the actual issue. It is a symptom of a deeper problem.

Consider the following information:

• Costs have remained relatively constant and are actually below industry average so revenue must be the issue
• Revenue has been increasing, but at a slowing rate
• This company sells widgets and have had no slowdown on the number of units it has sold over the last five years
• However, the price per widget is actually below where it was five years ago
• There have been new entrants in the market in the last three years that have been backed by Venture Capital money and are aggressively pricing their products below costs

In a real-life project there will definitely be much more information and a team may take a full week coming up with a problem statement . Given the information above, we may come up with the following problem statement:

Problem Statement : The company is struggling to increase profitability due to decreasing prices driven by new entrants in the market. The company does not have a clear strategy to respond to the price pressure from competitors and lacks an overall product strategy to compete in this market.

Step 4: Dive in, make hypotheses and try to figure out how to “solve” the problem

Now the fun starts!

There are generally two approaches to thinking about information in a structured way and going back and forth between the two modes is what the consulting process is founded on.

First is top-down . This is what you should start with, especially for a newer “consultant.” This involves taking the problem statement and structuring an approach. This means developing multiple hypotheses — key questions you can either prove or disprove.

Given our problem statement, you may develop the following three hypotheses:

• Company X has room to improve its pricing strategy to increase profitability
• Company X can explore new market opportunities unlocked by new entrants
• Company X can explore new business models or operating models due to advances in technology

As you can see, these three statements identify different areas you can research and either prove or disprove. In a consulting team, you may have a “workstream leader” for each statement.

Once you establish the structure you you may shift to the second type of analysis: a bottom-up approach . This involves doing deep research around your problem statement, testing your hypotheses, running different analysis and continuing to ask more questions. As you do the analysis, you will begin to see different patterns that may unlock new questions, change your thinking or even confirm your existing hypotheses. You may need to tweak your hypotheses and structure as you learn new information.

A project vacillates many times between these two approaches. Here is a hypothetical timeline of a project:

Step 5: Make a slides like a consultant

The next step is taking the structure and research and turning it into a slide. When people see slides from McKinsey and BCG, they see something that is compelling and unique, but don’t really understand all the work that goes into those slides. Both companies have a healthy obsession (maybe not to some people!) with how things look, how things are structured and how they are presented.

They also don’t understand how much work is spent on telling a compelling “story.” The biggest mistake people make in the business world is mistaking showing a lot of information versus telling a compelling story. This is an easy mistake to make — especially if you are the one that did hours of analysis. It may seem important, but when it comes down to making a slide and a presentation, you end up deleting more information rather than adding. You really need to remember the following:

Data matters, but stories change hearts and minds

Here are four quick ways to improve your presentations:

Tip #1 — Format, format, format

Both McKinsey and BCG had style templates that were obsessively followed. Some key rules I like to follow:

• Make sure all text within your slide body is the same font size (harder than you would think)
• Do not go outside of the margins into the white space on the side
• All titles throughout the presentation should be 2 lines or less and stay the same font size
• Each slide should typically only make one strong point

Tip #2 — Titles are the takeaway

The title of the slide should be the key insight or takeaway and the slide area should prove the point. The below slide is an oversimplification of this:

Even in consulting, I found that people struggled with simplifying a message to one key theme per slide. If something is going to be presented live, the simpler the better. In reality, you are often giving someone presentations that they will read in depth and more information may make sense.

To go deeper, check out these 20 presentation and powerpoint tips .

Tip #3 — Have “MECE” Ideas for max persuasion

“MECE” means mutually exclusive, collectively exhaustive — meaning all points listed cover the entire range of ideas while also being unique and differentiated from each other.

An extreme example would be this:

• Slide title: There are seven continents
• Slide content: The seven continents are North America, South America, Europe, Africa Asia, Antarctica, Australia

The list of continents provides seven distinct points that when taken together are mutually exclusive and collectively exhaustive . The MECE principle is not perfect — it is more of an ideal to push your logic in the right direction. Use it to continually improve and refine your story.

Applying this to a profitability problem at the highest level would look like this:

Goal: Increase profitability

2nd level: We can increase revenue or decrease costs

3rd level: We can increase revenue by selling more or increasing prices

Each level is MECE. It is almost impossible to argue against any of this (unless you are willing to commit accounting fraud!).

Tip #4 — Leveraging the Pyramid Principle

The pyramid principle is an approach popularized by Barbara Minto and essential to the structured problem solving approach I learned at McKinsey. Learning this approach has changed the way I look at any presentation since.

Here is a rough outline of how you can think about the pyramid principle as a way to structure a presentation:

As you build a presentation, you may have three sections for each hypothesis. As you think about the overall story, the three hypothesis (and the supporting evidence) will build on each other as a “story” to answer the defined problem. There are two ways to think about doing this — using inductive or deductive reasoning:

If we go back to our profitability example from above, you would say that increasing profitability was the core issue we developed. Lets assume that through research we found that our three hypotheses were true. Given this, you may start to build a high level presentation around the following three points:

These three ideas not only are distinct but they also build on each other. Combined, they tell a story of what the company should do and how they should react. Each of these three “points” may be a separate section in the presentation followed by several pages of detailed analysis. There may also be a shorter executive summary version of 5–10 pages that gives the high level story without as much data and analysis.

Step 6: The only way to improve is to get feedback and continue to practice

Ultimately, this process is not something you will master overnight. I’ve been consulting, either working for a firm or on my own for more than 10 years and am still looking for ways to make better presentations, become more persuasive and get feedback on individual slides.

The process never ends.

The best way to improve fast is to be working on a great team . Look for people around you that do this well and ask them for feedback. The more feedback, the more iterations and more presentations you make, the better you will become. Good luck!

If you enjoyed this post, you’ll get a kick out of all the free lessons I’ve shared that go a bit deeper. Check them out here .

Do you have a toolkit for business problem solving? I created Think Like a Strategy Consultant as an online course to make the tools of strategy consultants accessible to driven professionals, executives, and consultants. This course teaches you how to synthesize information into compelling insights, structure your information in ways that help you solve problems, and develop presentations that resonate at the C-Level. Click here to learn more or if you are interested in getting started now, enroll in the self-paced version ($497) or hands-on coaching version ($997). Both versions include lifetime access and all future updates.

Share this:

• Click to share on Facebook (Opens in new window)
• Click to share on LinkedIn (Opens in new window)
• Click to share on Twitter (Opens in new window)
• Click to share on Pocket (Opens in new window)
• Click to share on WhatsApp (Opens in new window)

Get the Free Mini-Course

Learn to solve complex problems, write compellingly, and upgrade your thinking with our free mini-course.

Work With Us

Join 1,000+ professionals and students learning consulting skills and accelerating their careers

Master the 7-Step Problem-Solving Process for Better Decision-Making

Discover the powerful 7-Step Problem-Solving Process to make better decisions and achieve better outcomes. Master the art of problem-solving in this comprehensive guide. Download the Free PowerPoint and PDF Template.

StrategyPunk

Introduction.

The 7-Step Problem-Solving Process involves steps that guide you through the problem-solving process. The first step is to define the problem, followed by disaggregating the problem into smaller, more manageable parts. Next, you prioritize the features and create a work plan to address each. Then, you analyze each piece, synthesize the information, and communicate your findings to others.

In this article, we'll explore each step of the 7-Step Problem-Solving Process in detail so you can start mastering this valuable skill. At the end of the blog post, you can download the process's free PowerPoint and PDF templates .

Step 1: Define the Problem

One way to define the problem is to ask the right questions. Questions like "What is the problem?" and "What are the causes of the problem?" can help. Gathering data and information about the issue to assist in the definition process is also essential.

Step 2: Disaggregate

After defining the problem, the next step in the 7-step problem-solving process is to disaggregate the problem into smaller, more manageable parts. Disaggregation helps break down the problem into smaller pieces that can be analyzed individually. This step is crucial in understanding the root cause of the problem and identifying the most effective solutions.

Disaggregation helps in breaking down complex problems into smaller, more manageable parts. It helps understand the relationships between different factors contributing to the problem and identify the most critical factors that must be addressed. By disaggregating the problem, decision-makers can focus on the most vital areas, leading to more effective solutions.

Step 3: Prioritize

Once the issues have been prioritized, developing a plan of action to address them is essential. This involves identifying the resources required, setting timelines, and assigning responsibilities.

Step 4: Workplan

The work plan should include a list of tasks, deadlines, and responsibilities for each team member involved in the problem-solving process. Assigning tasks based on each team member's strengths and expertise ensures the work is completed efficiently and effectively.

Developing a work plan is a critical step in the problem-solving process. It provides a clear roadmap for solving the problem and ensures everyone involved is aligned and working towards the same goal.

Step 5: Analysis

Pareto analysis is another method that can be used during the analysis phase. This method involves identifying the 20% of causes responsible for 80% of the problems. By focusing on these critical causes, organizations can make significant improvements.

Step 6: Synthesize

Once the analysis phase is complete, it is time to synthesize the information gathered to arrive at a solution. During this step, the focus is on identifying the most viable solution that addresses the problem. This involves examining and combining the analysis results for a clear and concise conclusion.

During the synthesis phase, it is vital to remain open-minded and consider all potential solutions. Involving all stakeholders in the decision-making process is essential to ensure everyone's perspectives are considered.

Step 7: Communicate

In addition to the report, a presentation explaining the findings is essential. The presentation should be tailored to the audience and highlight the report's key points. Visual aids such as tables, graphs, and charts can make the presentation more engaging.

The 7-step problem-solving process is a powerful tool for helping individuals and organizations make better decisions. By following these steps, individuals can identify the root cause of a problem, prioritize potential solutions, and develop a clear plan of action. This process can be applied to various scenarios, from personal challenges to complex business problems.

By mastering the 7-step problem-solving process, individuals can become more effective decision-makers and problem-solvers. This process can help individuals and organizations save time and resources while improving outcomes. With practice, individuals can develop the skills to apply this process to a wide range of scenarios and make better decisions in all areas of life.

7-Step Problem-Solving Process PPT Template

Free powerpoint and pdf template, executive summary: the 7-step problem-solving process.

Mastering this process can improve decision-making and problem-solving capabilities, save time and resources, and improve outcomes in personal and professional contexts.

Please buy me a coffee.

I'd appreciate your support if my templates have saved you time or helped you start a project. Buy Me a Coffee is a simple way to show your appreciation and help me continue creating high-quality templates that meet your needs.

7-Step Problem-Solving Process PDF Template

7-step problem-solving process powerpoint template, multi-chapter growth strategy framework (free template), lidl swot analysis: free ppt template and in-depth insights.

Discover Lidl's strengths, weaknesses, opportunities, and threats with our free PowerPoint template. This in-depth SWOT analysis provides valuable insights to help you understand Lidl's market position and strategic direction.

Global Bites: PESTLE Insights into Nestlé (Free PPT)

Pestle analysis: decoding reddit's landscape (free ppt).

"The McKinsey Way" Book: A Comprehensive Summary

The McKinsey Way is a book by Ethan M. Rasiel , published in 1999, about what McKinsey&Company does, how McKinsey organizes and what working at McKinsey is like.

20 years after publication, the book still holds significant value, offering timeless insights into the world’s most prestigious management consulting firm: McKinsey&Company. In this article, we’ll provide a detailed summary of all the lessons and insights from The McKinsey way . We’ll re-organize the content and occasionally insert supporting insights to make it more friendly to the reader.

The McKinsey Way has 5 Parts (Sections) with 180 pages:

• Part 1: The Problem Solving Methodology of McKinsey

Part 2: Logistics of how a McKinsey project works

Part 3: insights into the actual works of consultants, part 4: how to excel as a junior consultant, part 5: exit opportunities and life after mckinsey.

Table of Contents

Part 1: The McKinsey problem-solving methodology

The McKinsey problem-solving process can be summarized in the 5 steps: define the problems, find the root cause, use “hypothesis-driven” process, analyze with “issue tree” and propose solutions.

1. Define the problem: Every consulting project revolves around a “problem”. But the “problem” is NOT always the problem!

One symptom may have different causes and we as doctors should never rely on the patient to diagnose.

So, always dig deeper. Get facts. Asks questions. Poke around. Challenge the client… until you find the real problem.

2. Find the root cause: Don’t jump straight to the solution, because you might just be fixing the symptoms. The problem will come back if the root cause is not properly dealt with.

3. Use “hypothesis-driven” process: Make educated guesses of possible root-cause A B C and test with data (a.k.a: facts). We’ll sometimes call this a fact-based process.

4. Break down and structure the analysis with the “ issue tree ” framework: A “hypothesis-driven” process may take forever as there are millions of possible root-causes. We need to test hypotheses from the top to the bottom of the issue tree – a top-down fashion. These issue trees need to be MECE.

5. Propose solutions: When the root causes are identified, consultants propose solutions targeting them directly.

A few notes when using this methodology

No.1: Don’t force the facts to say what you want.

When you propose or work extensively with a running hypothesis , it’s easy to get emotionally attached and turn the problem-solving process into a proving exercise. So keep an open mind and listen to what the data have to say.

No.2: Let the hypothesis come to you naturally.

You will not be able to form an initial hypothesis every time. The clients may not even know their problems. The scope of the project is often large and vague. So, dive in, gather facts, conduct analyses, and the hypotheses will show themselves.

No.3: Don’t reinvent the wheel.

Business problems often resemble each other more than they differ. With suitable techniques, you can apply what you and the firm learned from other projects. After all, one of the values consulting firms bring is to provide the “best practice” – what the top players in the game are doing

No.4: Make sure your solution fits your client.

The most brilliant solution is useless without proper implementation. So know your client’s weaknesses, strengths, and capabilities and tailor your solutions accordingly.

No.5: Be mindful of politics.

There are always politics in projects. Many times, McKinsey gets involved in fights between corporate factions. This creates friction that prevents you from doing your job (late data; rejected interviews, etc.).

So think about how your solutions affect the players in an organization and always build a consensus along the way. If consensus requires you to change your solution, try to compromise. It’s no good devising the ideal solution if the client refuses to accept it.

It’s highly recommended that you refer to the following video for a general view on how McKinsey organizes and a better understanding of the insights from this part.

There is a whole system behind how McKinsey solve a business problem. In this part of The McKinsey Way, Ethan Rasiel describes how the company sells their projects, builds a team and manages its hierarchy.

Selling a study/project

McKinsey typically does not sell. The firm does marketing through a constant stream of books, articles, and scholarly journals like the McKinsey Quarterly, etc. The Firm also invites organize press releases and generates quite some coverage by journalists.

These publications help McKinsey Partners build and nurture a vast network of informal contacts with potential clients. And when a problem arises, the client knows who to contact.

Assembling a team

Almost all projects need a full-time team of consultants. Typically, the process goes like this:

• The ED (a.k.a: Project Owner) signs a contract with the client
• The ED hires an EM from within the McKinsey network, from any offices (a.k.a: Project CEO)
• The EM then hires a group of staff, consisting of BAs (a.k.a: Business Analyst) and Associates.

It’s solely the EM’s responsibility to keep the team happy and functional. McKinsey projects have a few common practices to do so:

• A monthly “team-bonding”. 
• A “team temperature” (a.k.a: morale) weekly survey.

The hierarchy

The chain of command in McKinsey is very clear and strict. So is the responsibility funnel. In the ED’s eyes, the EM is responsible for everything in the project. In the EM eyes, the BA is responsible for everything within the assigned workstream. Even when a BA messes things up, to the ED, it’s not the BA’s fault, but the EM.

To provide the best solution for the clients, consultants need tons of skills in preparing presentations; conducting researchs and interviews; presenting the final products in a simple structure; communicating with clients; and brainstorming.

Making presentations, a.k.a: the final deliverable documents

Most consultants spend a big portion of their time making presentations (often in PowerPoint). Utilize the support team! Keep it structured, from top to bottom, from end to end.

Note that there are diminishing marginal returns to your effort, meaning that the last miles toward perfection are always much harder than the beginning. So, resist the temptation to tweak your presentation at the last minute. Try to assess its gains vs those of a good night’s sleep for you and the supporting cast.

Visualizing data with charts and exhibits

We subconsciously admire the people who talk in sophisticated language, so we make complex charts. However, simple and easy-to-follow charts go a long way in consulting. Charts are just a means of getting your messages across, not a Ph.D. project.

Also, don’t forget to:

• Write clear chart titles
• List out units of measurement in all axes
• Mark legends and side notes
• Provide data sources

Managing internal communications

• Over-communication is always better. Keep that information flowing. Make sure that your team is up to date with at least the broad outlines of your workstream and your boss up to date with your team’s progress. There are many channels for this: email, voicemail, messaging, small talks during cigarette breaks, meetings, etc.
• Keep your communication brief, yet comprehensive and structured.
• Look over your shoulder – always. You never know who is listening. Remember that your client’s confidentiality is a must.

Working with clients

This is a big one as the true hierarchy at McKinsey is “Client -> Firm -> and then You”. The client is your biggest boss.

There are many tips on client management, but the general principle is to bring the client to your side. You never win by opposing the client. Remind them about mutual benefits. Do it everyday!

Some of the client members can be “liabilities”. There are 2 types of them:

• the merely “useless”.
• the hostile ones. 

With both types, the number 1 option is to subtly trade them out of your realm. When that is not possible, the next best option is to play ignorant. Leak out information only with the right “secret audience”.

No matter what, engage the client members in the process. The more they feel everybody is on the same boat, the more they would support you.

You should also get buy-ins throughout the organization along the process. Every important party has to agree with you. Ideally, the final document has already been discussed many times through many rounds with the client before the official presentation.

Doing research

Don’t reinvent the wheel! Whatever you are doing, chances are that someone, somewhere has done something similar. Building upon someone’s work is the best way to save time and energy while achieving the highest standard.

Besides, here are some research tips:     

• Start with the annual report. All public companies have them available on their website.
• Look for abnormal patterns (things that are especially good or bad). That’s where all the insights lie.
• Last but not least, look for the best practice. Find out what the best performers in the field are doing and learn from them.

Conducting interviews

This is one of the most effective ways to gather qualitative facts during a project. You will find yourself interviewing multiple industry and function experts as well as key client leaders.

Here are a few tips:

• Be prepared. Know exactly what you want to get out of it. Know as much as you can about the interviewee. Writing an interview brief for yourself is not a bad idea.
• If possible, have the interviewee’s boss set up the meeting.
• Start with some general and open-ended questions then move on to specific ones. Let the content flow naturally.
• Sometimes, it’s useful to use the indirect style. Take time to make the interviewee comfortable with you and the interview process.   
• Include some questions you know the answer to. This gives insights into the interviewee’s style, knowledge, and honesty.   
• Don’t ask too much. Focus on what you really need (what you prioritize in the interview brief).
• Listen and let the interviewee know you are doing so. 
• Paraphrase what you hear in your own words. Confirm whether you understand correctly. This also gives chances for the interviewee to add or amplify important points.
• Near the end, use this last trick to flush out any possible missing insights: “Is there anything else you would like to tell or any question I forgot to ask…?”.       
• Adopt the Columbo tactic. Wait until a day or two passes, then drop by the interviewee’s office. “I was just passing by and remembered a question I forgot to ask”. This is a less threatening way to keep the conversation going.
• Lastly, always write a thank-you note. A short and sincerely one always does the work.

Brainstorming at McKinsey

In McKinsey, we often use the word “Problem-Solving” interchangeably with brainstorming sessions. It’s a very topic-focus meeting within the McKinsey team, consisting of the consultant in-charge, the EM, and sometimes even the ED and experts.

Before the session, prepare in advance as much supporting data as possible. It will come handy in the process.Inside the White room: Start with tabula rasa — a clean slate. When you get your team into the room, leave your preconceptions at the door. Bring in only the facts, and find new ways of looking at them.

Management consulting is an interesting yet challenging job. To survive and thrive at McKinsey, here are some advices for you:

Tip 1: Find your own mentor

At McKinsey, every consultant is officially assigned a mentor, who may not be in the same office. How much you benefit from the official mentor is pretty much a matter of luck. If you want great guidance, you have to go out and get your own. Get a few too, don’t stick to just one.

Tip 2: Survive the road                                 

Business travel can be exhausting and difficult, here are some note you can take to deal with it:

• Look at business travel as an adventure.
• Do proper planning. These simple logistics can make a big difference
• Treat everyone with tremendous respect

Tip 3: Have a list of items to bring when traveling

Here is the list:

• Clothing: extra shirts or blouses, spare ties, spare shoes, casual clothes, cashmere sweaters
• Tools: writing pad, copy of whatever you send to the client, calculator
• Personal care Items
• Things to keep you organized and in touch

Tip 4: Treat your assistant well

Having a good assistant is a lifeline. Treat them well. Be clear about what you want. Give them room to grow. Take time to train them well. Answering their questions and showing them the ropes.

Tip 5: Have boundaries to keep your life balance

Since you have a large amount of work to cover as a consultant, there is almost no work-life balance. However, if you want a life, lay down some rules. For example:

• Make one day a week to be completely free of work, both physically and mentally. Tell your boss about it! He/she will respect it. And so should you.
• Don’t take work home. When you are home, you are home!
• Plan long ahead, especially when you travel.

Tip 6: The 80 / 20 Rule

80% of the wealth is owned by just 20% of the population. 80% of the output can be produced by 20% of the effort. 20% of the problems can cause 80% of the trouble.

So if you wanna save time and effort. Always try to find those 20% and act upon them!

Tip 7: Don’t try to analyze everything

If you don’t take shortcuts, there is simply too much to do. Be selective. Find the key drivers. Focus on the core problem, then apply analysis. This helps avoid going down blind alleys and boiling the ocean.

Tip 8: The Elevator Test                             

Concise communication is crucial in consulting. Anytime the EM asks you for your workstream status, you have to be able to give him a 30 seconds summary. Short yet insightful. This skill takes practice. Try doing it every day in various contexts!

Tip 9: Pluck the Low-Hanging Fruit 

Solving only part of the problem can still mean increased profits. Those little wins help you and your customers. Try to see such opportunities and grab them first.

Tip 10: Hit singles                           

Get your job and only your job done, don’t try to do the work of the whole team.

It’s impossible to do everything yourself all the time. Even if you manage to pull it off once, you raise unrealistic expectations and once you fail, it is difficult to get back credibility.

Tip 11: Look at the big picture

When you are feeling swamped, take a step back, figure out what you are trying to achieve, and then look at what you are doing. “Does this really matter?”

Probably not! All of these troubles will go away!

Tip 12: Just say “I don’t know”

The firm pounds the concept of professional integrity: Honesty. If you don’t know something, just say “I DON’T KNOW” in an empowering fashion. Admitting that is a lot less costly than bluffing.

“Leaving McKinsey is never a question of whether—it’s a question of when”

There are not many people who stay with McKinsey for their whole career life. In the last part of The McKinsey Way , Ethan Rasiel and other ex-McKinsey consultants share their valuable lessons and memories from working at the company.

• “Structure, structure, structure. MECE, MECE, MECE. Hypothesis-driven, Hypothesis-driven, Hypothesis-driven.” – Former associate in Dusseldorf and San Francisco offices
• “The quality of the people. In the corporate world, the average-caliber employee is far below McKinsey’s least intelligent.” – Wesley Sand
• “What stays with me is the rigorous standard of information and analysis, the proving and double-proving of every recommendation, combined with the high standard of communication both to clients and within the Firm.” – Former associate in the Boston and New York offices
• “When faced with an amorphous situation, apply structure to it.” – Kristin Asleson, New York office, 1990-93; now working in Silicon Valley
• “Execution and implementation are the key. A blue book is just a blue book, unless you do something with it. Getting things done is the most important thing.” – Former EM in the New York office

Scoring in the McKinsey PSG/Digital Assessment

The scoring mechanism in the McKinsey Digital Assessment

Related product

McKinsey Comprehensive Package

Unlock all materials helping you land the next job in McKinsey!

Among MBB firms, people tend to say McKinsey is slightly better than the other two in three factors: prestige, people, practices, and offices

At McKinsey, the salary for entry-level consultants ranges from $90,000 to $110,000/year, while the figure for experienced Associates can go up to $233,000

McKinsey hiring process including 3 phases: resume screening, PST test, and case interview. Each candidate will have to undergo 4-6 interviews during 4-8 weeks

Similar to The McKinsey Podcast

1 What's Next! with Tiffani Bova

Tiffani bova, 1 reveal: the revenue intelligence podcast, 1 the influence factor by the influencer marketing factory, the influencer marketing factory, 1 outsource accelerator podcast with derek gallimore, derek gallimore, 1 radio advisory, advisory board, 1 the entreleadership podcast, ramsey network, 1 wholesaling inc with brent daniels, find distressed properties for pennies on the dollar and turn them for huge profits, 1 the enablement edge, 1 jocko podcast, jocko defcor network, 1 knowledge at wharton, knowledge at wharton, podcasts worth a listen, the mckinsey podcast « » how to master the seven-step problem-solving process.

See www.mckinsey.com/privacy-policy for privacy information

308 episodes

How to master the seven-step problem-solving process

The McKinsey Podcast

18,064 subscribers

published 3y ago

All episodes

Welcome to player fm.

Player FM is scanning the web for high-quality podcasts for you to enjoy right now. It's the best podcast app and works on Android, iPhone, and the web. Signup to sync subscriptions across devices.

Quick Reference Guide

Leading from the inside out: Why CEOs must make time for self-reflection

The greatest CEOs are necessarily driven, decisive, and confident. But McKinsey senior partner Ramesh Srinivasan , senior partner emeritus Hans-Werner Kaas, and coauthors of their new book, The Journey of Leadership: How CEOs Can Learn to Lead from the Inside Out , say CEOs must weave in a layer of soft skills like self-awareness, humility, and compassion to inspire their workforce. On this episode of The McKinsey Podcast , Srinivasan and Kaas speak with editorial director Roberta Fusaro about taking on the challenge of reinvention for the greater good of the company.

This transcript has been edited for clarity and length.

The McKinsey Podcast is cohosted by Roberta Fusaro and Lucia Rahilly.

Leader, know thyself

Roberta Fusaro: You and your coauthors just released a new book, The Journey of Leadership: How CEOs Can Learn to Lead from the Inside Out . Put simply, what is inside-out leadership?

Ramesh Srinivasan: The world is changing rapidly. The geopolitics have become quite complex, technology is having a huge impact, and climate change is here to stay. In this context, we felt the world needed a new paradigm of leadership. We call it human-centric leadership. Our belief is that leaders need to reflect on their purpose, who they are, how they show up in the world, and how they can inspire their teams and the institutions they’re leading.

Hans-Werner Kaas: Human-centric leadership provides the permanent guidepost for leaders of all backgrounds and levels. That guidepost, plus the actions leaders take to get to it, is central for colleagues and external stakeholders to look up to.

Want to subscribe to The McKinsey Podcast ?

The inside-out notion means that any change starts with ourselves. We need to have the ability to be self-aware—of our words, our behaviors, and actions, and then reflect upon where our strengths and weaknesses are. You can call it self-development, which requires adopting human behaviors such as empathy , care, compassion, humility, and vulnerability—and at times, determination, confidence, and resilience. Balancing these different behavioral sets really depends on the situation you’re in as a leader.

Why this, why now?

Roberta Fusaro: Why this, why now? Ramesh, you answered it a little bit. The challenges for today’s leaders in 2024 are very different. But can you talk a little bit about what exactly has changed?

Ramesh Srinivasan: The geopolitics in the world have become much more complicated. Technology, AI, and gen AI [generative AI] are also having a huge impact. So amid all these changes, leaders need to have a sense of who they are, what their purpose is, and what motivates them. How do they show up in the world? What do they talk about? How do they understand their team members even more deeply as human beings, so they can inspire them in the spirit of their team purpose? And use all of that to inspire organizations and institutions that they’re part of.

Leaders need to have a sense of who they are, what their purpose is, and what motivates them. Ramesh Srinivasan

Roberta Fusaro: Hans-Werner, you’d mentioned that this inside-out approach is very personal. The book prompts leaders to take a closer look at their vulnerabilities, perhaps their insecurities—and that can be scary. I’m curious, how can the book help ease this process for CEOs and other leaders?

Hans-Werner Kaas: There are stories of 24 former and active CEOs in the book. They’re very personal stories, in which they reveal their insecurities, their struggles, how they’ve addressed them, and how they tried to overcome them. None of those 24 CEOs said they have achieved or reached a destination point, but all of them said they’re on a good trajectory to become more effective and more human-centric leaders.

The book also has a step-by-step “reinvention guide” that really helps you to transform yourself.

A series of balancing acts

Roberta Fusaro: The book is helpfully divided into two parts: the psychological and emotional aspects of leading yourself, and then the human side of leading others. Among the chapters that talk about humility, confidence, selflessness, vulnerability, resilience, and versatility, Ramesh, is there any one of those traits or a focus area that is more important or harder to get right than the other?

Ramesh Srinivasan: We find that all of them are quite important. The one trait I want to start with is the balance between courage and curiosity. There’s the example of Stéphane Bancel , who shares in the book how, at the peak of the pandemic, he had to make a bold decision to develop and manufacture a vaccine, something that Moderna had never done before.

He had the courage to set a bold vision and inspire his team. At the same time, he brought an incredible level of curiosity because he knew there were many things they did not have capabilities for, like manufacturing a vaccine—and also a billion doses of them.

The other trait is a balance between confidence and humility. Lynn Elsenhans is another inspiring leader, who balances confidence and humility. When she was CEO, she sometimes had to be in rooms where she was the only woman, and she carried with her a sense confidence that she belonged there. As a leader, she brings amazing confidence; I’ve seen it in all my interactions with her. And yet she is extremely grounded and humble in the way she operates, and in the way she inspires her team.

Hans-Werner Kaas: Another example that comes to mind is that of Mark Fields, the former CEO of Ford Motor Company. When he became CEO of Mazda Motor Corporation, which was part of the Ford group in the year 2000, he decided it would be much better for the first six months or so to show humility. He then went on a mission to listen and be humble. He did not pretend to have all the answers, even though he did have clear views and hypotheses on the solutions for the company. He engaged in that balance of showing confidence and humility, as well as vulnerability, because he admitted that not all the answers are obvious to him, and that it would take a co-creative team effort to develop them.

One additional example is about deep learning. Admiral Eric Olson , the former head of the US Special Operations Command and a Navy SEAL, talks about the notion of fearless learning in the book. He says it’s such an important ability to not fear that your assumptions can be wrong. On the contrary, be willing to abandon your assumptions if needed. Olson says that no single plan survives the first enemy contact. In that context, he talks about how important it is that, when the terrain differs from the map, you follow the terrain. It means make a new plan, change your assumptions, so that you have a higher probability of succeeding in your mission.

The journey inward

Roberta Fusaro: Hans-Werner, you mentioned the notion of self-awareness is critical to succeed in this inside-out journey. But CEOs, leaders, and military leaders have such a packed agenda. How do they find the time to break from the day-to-day patterns and practice some self-awareness and reflection?

Hans-Werner Kaas: It’s very hard. We all experience it in our own roles and professions. I would point to what we describe in the book as micro practices.

As it relates to making time to be self-aware, we have to first understand our situation. Why is it so hard for us to set aside time for it? Then, consider practical things you can do. You might decide to not touch any digital device in the first hour you’re awake in the morning. Instead, you use the time to mentally go through your day and not interact with anybody. You are just alone with your thoughts, alone with your priorities. Reflect on what you have done in the recent past, the past day, the recent week, and what impact your words and behaviors had on others.

This is very important because self-awareness means you understand the implications of your words and thoughts on others. It’s fundamental in leadership . The second step is to self-reflect, which is the exercise of developing behavior practices to improve. So that’s the sequence.

Ramesh Srinivasan: I’d add one more thought. In the book, a former media company CEO talks about finding truth tellers in the organization. As you become senior, people often don’t come and tell you the truth or give you specific suggestions for how you can evolve as a leader. So putting in place a culture where people feel safe, and taking the time to meet junior people and those at the front line who meet your customers, is critical to have a pulse on what is happening in the company. And that can also be a great source for insight and subsequent self-reflection.

Humans are still in the driver seat

Roberta Fusaro: Ramesh, you mentioned gen AI as one of the bigger changes that leaders are facing nowadays, and pointed to the importance of human-centered leadership amid all the changes that are happening. Can both of you say a little bit more about this notion of leadership alongside gen AI and other technologies?

Ramesh Srinivasan: I see technology having a massive impact on the world. Yet, in all our research and our work, we feel the value of humans  in the loop is not going to go away. The challenge for leaders is they need to understand how the technology is impacting themselves, their teams, and their businesses.

On how the role of the leader and the human being is evolving, Hans-Werner talks about the value of empathy, deep listening, and creativity. We don’t see those dimensions going away. So the question for leaders is, how do they bring some of those skills to bear so that the institutions they’re leading can use technology in service of society, in service of their customers, and in service of employees?

The question for leaders is, how do they bring some of those skills to bear so that the institutions they’re leading can use technology in service of society, in service of their customers, and in service of employees? Ramesh Srinivasan

Hans-Werner Kaas: As Ramesh said, in our view, there are two things gen AI will not accomplish. It cannot develop the emotional human touch. Second, gen AI can be a helpful tool to all different leaders, but leaders need to be very cognizant of where those most profound applications are, and not hype or exaggerate it, as if it’s the solution to many leadership problems. It is not.

A new era of business means a new era of leadership

Roberta Fusaro: Hans-Werner, another point in the book is this notion of the imperial CEO. Folks like Jack Welch and Lee Iacocca, the larger-than-life leaders, are essentially no more. When did that change and why did it change?

Hans-Werner Kaas: As Ramesh outlined at the beginning of our conversation, the forces at work, whether it’s in geopolitics, societal movements, environmental sustainability, or technology, have dramatically changed compared with where we were in the ’80s and ’90s.

The age of the imperial CEO has long passed, and it all comes back to what we said about inside-out leadership and displaying human-centric leadership. Only then will you invite stakeholders and colleagues to provide ideas in a proactive manner and be engaged, versus being in a more commanding or controlling environment, as if they are managerial subjects.

The age of the imperial CEO has long passed, and it all comes back to what we said about inside-out leadership and displaying human-centric leadership. Only then will you invite stakeholders and colleagues to provide ideas in a proactive manner and be engaged, versus being in a more commanding or controlling environment, as if they are managerial subjects. Hans-Werner Kaas

Roberta Fusaro: If you’re looking out a year, two years ahead, what impact do you hope this book will have in the business community?

Ramesh Srinivasan: Our hope is that both business leaders and social-impact leaders benefit from the ideas in the book. We hope that leaders  of all genders and of all kinds will also benefit from what we have in the book. That’s our first hope.

We also want to add to the debate on leadership. We’re hoping our knowledge and research will be additional contributions. We hope to use the book as a catalyst to engage with leaders and institutions on this topic, to help them at an individual level, to help their teams, and to help institutions in the world.

Hans-Werner Kaas: Let me pick up on the third point of what Ramesh said. The aspiration is that everybody who reads the book, or even only a portion of the book, becomes more human-centric. Not only in their personal life but also in their professional life and in different sectors.

Then there is the process itself in “The Journey Never Ends,” the concluding chapter. Every reader should indeed define their own self-reflection and reinvention process and methodology. And that can happen in confidence within your family circle or with your spouse. It could be with one or two trusted individuals on your executive team, or trusted people in your organization. It can also happen with external coaches. Find your own what we call self-reflection and self-reinvention forum.

Hans-Werner Kaas is a senior partner emeritus in the Detroit office. Ramesh Srinivasan  is a senior partner in McKinsey’s New York office. Lucia Rahilly is the global editorial director of McKinsey Global Publishing and is based in the New York office, and Roberta Fusaro is an editorial director in the Boston office.

Explore a career with us

Related articles.

Author Talks: A transformational approach to leadership

The ‘inside out’ leadership journey: How personal growth creates the path to success

The versatile leader: How learning to adapt makes CEOs better