Strategy Consulting Process - How Elite Consulting Firms Do great Work
Summary
TLDRThe speaker emphasizes the importance of process in strategy consulting, highlighting how both top-down and bottom-up approaches are essential for problem-solving. While consultants are trained in tactics, the real value comes from hands-on experience and the ability to shift between high-level hypothesis generation and detailed data analysis. The process of working through problems is compared to methods like McKinsey's issue tree analysis and Six Sigma's DMAIC. Ultimately, success in consulting relies on embracing the process, despite uncertainty, to deliver great results.
Takeaways
- đ The secret to successful strategy consulting lies in an obsessive focus on process and the way problems are approached.
- đïžââïž Strategy consultants often don't realize the source of their work methodology, which comes from being immersed in the process and repeating tasks.
- đ Structured problem-solving processes like McKinsey's 'Define, Structure, Prioritize, Issue Tree, Analysis, Synthesis, and Recommendations' are crucial.
- đ Other structured approaches like Six Sigma's DMAIC (Define, Measure, Analyze, Improve, Control) and the scientific method emphasize a similar iterative process.
- đ The process involves a simple four-step model: Define the problem, generate questions and hypotheses, conduct research and analysis, and derive answers.
- đ Consulting work oscillates between two modes: top-down (high-level thinking and problem definition) and bottom-up (data-driven sense-making).
- đ€ Individuals often lean towards one mode or the other, with some preferring to dive into data (bottom-up) and others starting with a high-level outline (top-down).
- đ Consultants must develop proficiency in both modes, as junior analysts spend more time in bottom-up analysis, while senior roles require more top-down strategy.
- đ A typical consulting project involves a dynamic shift between top-down and bottom-up modes, with phases of problem definition, hypothesis generation, and data analysis.
- đĄ To optimize this process, consultants should formally shift between modes, perhaps using different working environments for top-down strategic thinking and bottom-up data analysis.
- đ The process itself, with its back-and-forth between modes, is what leads to the creation of great work in consulting, even when the end product is initially unknown.
Q & A
What is considered the secret sauce of strategy consulting?
-The secret sauce of strategy consulting is the obsessive focus on process in the way you work and approach problems.
Why do former strategy consultants often struggle to articulate their understanding of how to do the work?
-Former strategy consultants often struggle because they are used to being thrown into the mix and doing things repeatedly, rather than relying on extensive training decks.
What are some structured processes for solving problems mentioned in the transcript?
-Some structured processes mentioned include McKinsey's Define, Structure, Prioritize, Issue Tree, Analysis, Synthesis, and Recommendations, Six Sigma's DMAIC method (Define, Measure, Analyze, Improve, Control), and the Scientific Method (Question, Hypotheses, Experiment, Analysis).
How does the speaker simplify the process of doing knowledge work?
-The speaker simplifies the process as: 1) Define the problem, 2) Come up with questions and hypotheses, 3) Do research and analysis, and 4) Come up with answers.
What are the two modes of thinking that the speaker discusses?
-The two modes of thinking discussed are top-down and bottom-up thinking.
What is the difference between top-down and bottom-up thinking?
-Top-down thinking involves starting from a high, abstract level such as defining a problem or developing hypotheses, while bottom-up thinking involves sense-making from data and information first.
How does the speaker describe the shift between top-down and bottom-up modes in a consulting project?
-The speaker describes the shift as a time-based process where individuals move between defining problems and hypotheses at a high level (top-down) and diving into data and analysis to make sense of information (bottom-up).
Why is it important for consultants to develop both top-down and bottom-up thinking modes?
-Consultants need to develop both modes to effectively navigate the complexities of projects, where they must alternate between defining problems and hypotheses and analyzing data to find solutions.
What does the speaker suggest as a method to shift between the two thinking modes?
-The speaker suggests formally shifting between the two modes by blocking off periods for data analysis and then summarizing findings, possibly using different working methods for each mode, such as using a computer for bottom-up and printing materials for top-down.
What does the speaker miss most about consulting after leaving?
-The speaker misses the back-and-forth team environment and the process of shifting between top-down and bottom-up modes to create something impactful at the end of a project.
How does the speaker encourage clients to think about their work process?
-The speaker encourages clients to focus on the meta process, which involves understanding how they solve problems and creating terms and approaches specific to their actual work.
Outlines
đ§ The Essence of Strategy Consulting: Process Focus
The paragraph emphasizes the critical role of process in strategy consulting. It highlights that consultants often excel due to their ingrained understanding of structured processes rather than specific tactics or techniques. The author points out that while consulting firms provide training in various methods, it's the repetitive application of these processes that truly hones consultants' skills. Several structured problem-solving approaches are mentioned, such as McKinsey's problem-solving process and the DMAIC method from Six Sigma. The author simplifies the consulting process into four steps: defining the problem, formulating questions and hypotheses, conducting research and analysis, and deriving conclusions. This is likened to the SCQA framework, which is also briefly introduced. The paragraph concludes by introducing a time-based process model that oscillates between top-down and bottom-up thinking, which is central to the consulting approach.
đ Navigating the Top-Down and Bottom-Up Dynamics in Consulting
This paragraph delves into the practical application of the top-down and bottom-up thinking modes within a consulting project. It describes how consultants initially engage in top-down thinking to define the problem's scope and then transition into a bottom-up approach to analyze data and refine hypotheses. The author illustrates the iterative nature of consulting work, where consultants frequently switch between abstract strategic thinking and detailed data analysis. The importance of balancing both modes is underscored, with the author sharing personal experiences and recommending strategies for effectively toggling between them. The paragraph also touches on the diagnostic phase common in consulting, which serves to gather preliminary information before fully defining the project's objectives. Lastly, it discusses the value of process in consulting, suggesting that a focus on process is what ultimately leads to successful outcomes and is a key aspect that the author misses post-consulting.
Mindmap
Keywords
đĄProcess
đĄStrategy Consulting
đĄDefine
đĄHypothesis
đĄAnalysis
đĄTop-Down Thinking
đĄBottom-Up Thinking
đĄDiagnostic Phase
đĄSCQA Framework
đĄMeta Process
Highlights
The secret sauce of strategy consulting is an obsessive focus on process.
Strategy consultants often don't realize where their understanding of how to do the work comes from.
Consulting firms train in tactics and techniques, but it's the process that leads to great work.
Structured processes for solving problems include McKinsey's issue tree analysis and the scientific method.
The process involves defining the problem, coming up with questions and hypotheses, doing research and analysis, and coming up with answers.
The best way to think about the consulting process is as a time-based process that shifts between top-down and bottom-up thinking.
Top-down thinking involves defining problems and developing hypotheses from a high-level perspective.
Bottom-up thinking is about sense-making from data and information.
People often fall into one or the other bucket, either top-down or bottom-up thinkers.
In consulting, you need to develop both top-down and bottom-up thinking modes.
Junior level analysts often spend more time in the bottom-up mode.
Shifting between top-down and bottom-up modes is a key part of a typical consulting project.
The process involves defining the problem, diving into data, refining hypotheses, and iterating between high-level and detailed analysis.
Consulting firms often have a diagnostic phase to gather information before scoping a project.
The process of consulting involves a back-and-forth between top-down and bottom-up thinking.
It's important to formally shift between the two modes to ensure a comprehensive approach to problem-solving.
Focusing on the meta-process of how you solve problems is crucial in consulting.
The process is what creates great work in consulting, and it's something that is deeply missed after leaving the field.
Transcripts
what's the secret sauce of strategy
Consulting I would argue that it is the
obsessive focus on process in the way
you work and approach problems now an
interesting thing I've noticed in doing
work and helping train and working with
former strategy Consultants is that they
often don't understand where their
understanding of how to do the work
comes from they want me to come in with
these extensive training decks uh
showing in immense detail how to do
different tactics and techniques but
while consulting firms do train you in
these tactics and techniques I really
think it's the process and being thrown
into the mix and doing things over and
over again that leads to great
work now there are many structured
processes for solving problems mckines
is Define structure prioritize issue
tree analysis synthesis and
recommendations comes from a famous memo
that you have to read when you start the
company but there's other famous
structured approaches to solving
problems for example in Six Sigma you
have the dmic method Define measure
analyze improve control the scientific
method to is a similar approach question
hypotheses experiment analysis and it's
all pretty much doing the same thing
it's saying here's this problem how can
we come up with questions how can we
analyze it and then how can we come to
conclusions when I teach process and
thinking about doing knowledge work with
my clients in workshops I put it in a
very simple way one Define the problem
two come up with questions and
hypotheses three do research and
Analysis and then four come up with
answers it's very similar to the scqa
framework and I've linked below I have a
video on that as well if you want to
check it out but this doesn't really
serve serve as a useful mental model of
how things actually happen in consulting
firms and broadly in knowledge
work the best way I've been able to
think about it is as a time-based
process that shifts people between two
modes these modes are top down and
bottom up top down thinking is thinking
of things from a highest most abstract
level this might be things like defining
a problem developing hypothesis es or
even creating story boards of a final
presentation or the answers bottom up is
sense making from the data and
information first and typically people
fall into one or the other bucket you
might want to pause and just think are
you a top- down person or a bottom up
person it's usually pretty easy to
notice for example if you're somebody
that feels completely comfortable like I
do diving into a huge data set not
knowing what you'll find but excited
about that you're probably a bottomup
person if you're somebody that likes to
start with an outline a structure of the
problem and know what the end product
might look like before diving into it
you're probably a top- down person in
writing I love how the fantasy writer
Brandon Sanderson writes about this as
Discovery writing versus outline writing
he says Discovery writers jump into the
story if they're writing a novel and
sort of figure out what the plot is
along the way outline writing is when
you start with an outline of what's
going to happen and then fill in the
holes right and the important thing he
notes is that it's a spectrum you're
never going to be 100% on one side or
the other and in Consulting you have to
develop both modes bottom up and top
down when you're a junior level analyst
you're often spending a lot of time in
the bottom up mode for me this was
really enjoyable but when I was shifted
into the top down mode it was different
and and challenging it was a muscle I
had to build over
time and so I want to dive in to this
chart I've created to help really bring
alive what it's like to shift between
the top down and bottom up modes
throughout a typical project or
assignment that you're going to be
working on you can think of this process
as something that could map to something
you work on over a couple of hours a
week or even over a few months at at
first you're at the top down you're
defining the problem this is where
you're really trying to figure out what
is the scope of what you're doing what
are the big questions right and in doing
this you may dig into detailed
information or data to really inform
that but you're really trying to stay at
high level and figure out what is the
broadest biggest problem that we're
really solving here from there you're
then of course going to dive into the
data and sometimes you're not actually
going to know what your hypotheses are
about how to solve the problem or the
direction you're going to take you may
need to figure it out now doing this may
actually reshape your own understanding
of the problem and this is why a lot of
consulting firms often have what they
call a diagnostic phase this helps them
get information from the client and the
situation before having to scope the
problem and actually sell a project so
sometimes will even do that diagnostic
phase as a free upfront project now once
you've sort of like clarified that
you're at the high level again right and
you're defining the hypotheses now you
might refine the problem statement and
thenine the hypotheses and you're asking
highle questions how can we generate
more Revenue how can we cut cost high
level questions like that right and then
you're going back down you're into the
mix and this is where it's chaotic in a
project you're going to be shifting
between modes you're going to be diving
into the data but at the same time
you're diving into the data you're
asking yourself questions where does
this fit in Does this answer the
hypothesis does this change anything
about the problem statement right back
and forth between those two modes you
might be working with a team where
somebody like a project manager might be
shaping and driving the top- down
questions and how it fits into the
bigger picture while you're working on a
very specific chunk right or you might
be responsible for both of those and you
have to figure out how to shift between
between those two different modes one
thing I recommend people do is sort of
like formally shift between the two
different modes right so if you're going
to just do a bunch of data analysis
block off a period after that where
you're going to summarize what you're
looking at right and I actually like to
do this in two different ways of working
for example I might do the bottom up
mode on a computer whereas the top down
mode I might print stuff out and try to
figure out what I'm actually looking at
and so this is the best way I've figured
out how to think about the Consulting
process in my work with clients I often
push them to think about how they
actually work I ask them what is your
process most of them look at me with a
blank face I don't know what my process
is and this is really about focusing on
The Meta process what I say is like you
need to talk about how you solve
problems you need to be devoted to that
if you're a senior person at a
consulting firm you need to be thinking
about how people work and then how do we
make this Consulting process fit into
our company create terms approaches that
are specific to how you're actually
doing work the more you focus on process
the more annoying and frustrating it can
be too because what you're doing in
process is you're saying we actually
don't know what the end product looks
like we're going to trust the process
hopefully better than the Philadelphia
76ers did sport shout out anything you'd
like to say oh just AES and know that
the process is what creates the great
work and after leaving Consulting this
is probably the thing I miss the most is
that back and forth that team
environment where you're getting
challenge you're shifting between the
two different modes you don't know where
you're going to end up and then somehow
at the end of the project you end up
creating something and you look back and
go wow that process worked
Voir Plus de Vidéos Connexes
180DC Academy | Module 1: Consulting 101
The Strategy Consulting Process: How McKinsey, Bain & BCG Consultants Solve Problems
Problem Solving with Data Analytics | Google Data Analytics Certificate
What is the proper way to study Mathematics? | IIT prof's tips
Learn Toyota's 8 Step Practical Problem Solving Methodology
Introduction to Parsers
5.0 / 5 (0 votes)