Strategy Consulting Process - How Elite Consulting Firms Do great Work

Summary

The 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

• 🔍 The secret to successful strategy consulting lies in an obsessive focus on process and the way problems are approached.
• 🏋️‍♂️ Strategy consultants often don't realize the source of their work methodology, which comes from being immersed in the process and repeating tasks.
• 📚 Structured problem-solving processes like McKinsey's 'Define, Structure, Prioritize, Issue Tree, Analysis, Synthesis, and Recommendations' are crucial.
• 🔄 Other structured approaches like Six Sigma's DMAIC (Define, Measure, Analyze, Improve, Control) and the scientific method emphasize a similar iterative process.
• 📈 The process involves a simple four-step model: Define the problem, generate questions and hypotheses, conduct research and analysis, and derive answers.
• 🔄 Consulting work oscillates between two modes: top-down (high-level thinking and problem definition) and bottom-up (data-driven sense-making).
• 🤔 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).
• 📊 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.
• 📈 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.
• 💡 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.
• 🏆 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.