The McKinsey Way Ethan M.

Rasiel
Gaurav Rathi (09016) Priyadarshini N (09035)
02/19/10 1

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Agenda
 The

McKinsey way solving process testing Toyota way rule examples
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 Problem  The

 Hypothesis  80/20  Indian 
02/19/10

McKinsey & Company
 Global management consulting firm  Widely recognized as a leader  One of the most prestigious firms in

the

management consulting industry  8,700 consultants in 90 consulting offices across 50 countries  Competes most directly with Boston Consulting Group (BCG), Booz & Company and Bain & Company on client engagements
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The McKinsey Way
 The

McKinsey Way of thinking about

problems, their way of working to solve these and of course how to sell the solution
 Each

project of

is

called solving

an into

engagement
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 Process

problem

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Problem solving process
 Step

1: Frame the problem

 Build the problem based on facts  Start with the hypothesis

 Step

2: Approach to the problem

 Develop an approach to your problem  Keep the approach as simple as possible  Progress steadily and use your learning
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Problem solving process - Contd
 Step

3 : Team Work

 Assemble your team with the right mix of

members  Bring it together  Interact with your client  Brainstorm
 Step
 Presentations  Be crisp and clear  Maintain Confidentiality
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4: Selling your solutions

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The Toyota Way
1.
(large, Vague, Complicated Problem) 2. Clarify the Problem

Initial Problem Perception

The “Real” Problem 3. Locate Area/Point of Cause

Grasp the Situation
Why? Why? Why?

POC
Direct Cause Cause Cause Cause Cause

Basic Cause and Effect Investigation

Cause Investigation

Why? Why?

4. Five (5) Why? Investigation Of Root Cause

Root Cause 5. Countermeasure

6. Evaluate

7. Standardize

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Hypothesis testing
  Improve  Uses

the quality of process method like

statistical

hypothesis testing
 Six

sigma hypothesis
square etc

 Testing by various tests such as chi-

 HCL,
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Wipro
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80/20 Rule
 AIRTEL  80%

and other telecom company

of their revenue come from shocking but true

20% of customers
 Quite  Rest

most of the customers are

passive customers
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80/20 Rule – Contd…
 They

use services just for incoming rule helps the company to form

facility or few calls
 This

its strategies accordingly
 Investor
 80% of his profit is due to 20% of

stocks
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Tata Ace
 Mini truck  Launched in may 2005  Robust sales figure which

no one

was expecting  Competitors
 Bajaj auto  Mahindra  Piaggio  Force motors
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Tata Ace –Contd…
 New

mini segment the government policy of 3 wheelers – 1.75 lakhs of Tata Ace – 2.25lakhs to 2.35 lot of 3 wheelers users to
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 Challenged  Price  Price

lakhs
 Converted
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4 wheelers users

The magical idea of Tata Ace

Girish

Wagh,

a

34-year-old

divisional

manager, designed Ace

In June 2007 Tata Motors has also launched the passenger variant of ACE, named MAGIC

India’s first Maxivan - The Tata Winger, which an entirely new platform Objective is "to change the way an average Indian travels" 
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02/19/10

Designing Tata Ace

Step 1:
 Blue print for Tata Ace  Analysis of data from market research  Approach to the key problem areas identified by

Step 2: Step 3:

market research

 The engineers came together to develop the


Step 4:

model of Tata Ace  Prototyping and tooling
 Catered to the latent need in the market

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Better Healthy, Think Eat

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Britannia Milk Products
 Entered

into milk products in 1997 with Britannia Milkman

 Launched  Formed  Exited

joint venture with Fonterra

from milk segment in 2004

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Why did they fail??
 Rise  No

in milk prices

streamlined sourcing of milk fluctuations

 Price

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Re-entry into the milk segment
 Britannia  Re-entry

Actimind with the launch of probiotic

milk drink

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Britannia Actimind
 Britannia A

Industries Ltd

vitamin fortified drink for children content increase mental memory

 Mainly  Help

 Iodine

development
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Strategy for the relaunch
 Step

1: Analysis of the failure

 The causes of failure in 2004 were due

to price fluctuations and no streamlined sourcing of milk
 Step

2: Approach for the re-launch

 The key problem areas were identified

along with opportunities
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Strategy for the re-launch – Contd…
 Step

3: Solutions to the problems

identified
 Launch with the emerging flavoured milk

products
 Cater to the health need

 Step

4: Marketing Actimind

 Launch in cities in Tamil Nadu
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 Giving competition to other players in the

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Summary
 McKinsey  The  The  Tata

& Company

McKinsey Way Toyota Way Ace Actimind testing
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 Britannia  80/20

rule

 Hypothesis
02/19/10

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