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Saturday 8 April 2023 1
The McKinsey WayEthan M. Rasiel
Gaurav Rathi (09016)Priyadarshini N (09035)
2
Saturday 8 April 2023 3
Agenda
The McKinsey way
Problem solving process
The Toyota way
Hypothesis testing
80/20 rule
Indian examples
Saturday 8 April 2023 4
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
Saturday 8 April 2023 5
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 is called an
engagement
Process of problem solving into
various steps in an McKinsey-ite
during engagement
Saturday 8 April 2023 6
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
Saturday 8 April 2023 7
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 4: Selling your solutions Presentations Be crisp and clear Maintain Confidentiality
8
Saturday 8 April 2023 9
The Toyota Way
Direct Cause
Cause
Cause
Cause
Cause
1. Initial Problem Perception(large, Vague, Complicated Problem)
2. Clarify the Problem
The “Real” Problem
3. Locate Area/Point of Cause
POC
Grasp the Situation
Cause Investigation
Why?
Why?
Why?
Why?
Why?
Basic Cause and EffectInvestigation
4. Five (5) Why? InvestigationOf Root Cause
Root Cause
5. Countermeasure
6. Evaluate
7. Standardize
Saturday 8 April 2023 10
Hypothesis testing
Improve the quality of process
Uses statistical method like
hypothesis testing
Six sigma hypothesis
Testing by various tests such as chi-
square etc
HCL, Wipro
Saturday 8 April 2023 11
80/20 Rule
AIRTEL and other telecom company
80% of their revenue come from
20% of customers
Quite shocking but true
Rest most of the customers are
passive customers
Saturday 8 April 2023 12
80/20 Rule – Contd…
They use services just for incoming
facility or few calls
This rule helps the company to form
its strategies accordingly
Investor
80% of his profit is due to 20% of stocks
13
Saturday 8 April 2023 14
Tata Ace
Mini truck Launched in may 2005 Robust sales figure which no one was
expecting Competitors
Bajaj auto Mahindra Piaggio Force motors
Saturday 8 April 2023 15
Tata Ace –Contd…
New mini segment
Challenged the government policy
Price of 3 wheelers – 1.75 lakhs
Price of Tata Ace – 2.25lakhs to 2.35
lakhs
Converted lot of 3 wheelers users to
4 wheelers users
Saturday 8 April 2023 16
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"
Saturday 8 April 2023 17
Designing Tata Ace
Step 1: Blue print for Tata Ace Analysis of data from market research
Step 2: Approach to the key problem areas identified by market
research Step 3:
The engineers came together to develop the model of Tata Ace
Prototyping and tooling Step 4:
Catered to the latent need in the market
18
Eat Healthy, Think Better
Saturday 8 April 2023 19
Britannia Milk Products
Entered into milk products in 1997
Launched with Britannia Milkman
Formed joint venture with Fonterra
Exited from milk segment in 2004
Saturday 8 April 2023 20
Why did they fail??
Rise in milk prices
No streamlined sourcing of milk
Price fluctuations
Saturday 8 April 2023 21
Re-entry into the milk segment
Britannia Actimind
Re-entry with the launch of probiotic
milk drink
Saturday 8 April 2023 22
Britannia Actimind
Britannia Industries Ltd
A vitamin fortified drink
Mainly for children
Help memory
Iodine content increase mental
development
Saturday 8 April 2023 23
Strategy for the re-launch
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
Saturday 8 April 2023 24
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
Giving competition to other players in the market
Saturday 8 April 2023 25
Summary
McKinsey & Company
The McKinsey Way
The Toyota Way
Tata Ace
Britannia Actimind
80/20 rule
Hypothesis testing
Thank you!!