"I never allow myself to have an opinion on anything that I don't know the other side's argument better than they do." - Charlie Munger

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I have always held a little something against consultants. So what better way than to take Munger's advice and find out exactly where my potential blind spots could be? My key takeaway is this, consultants can bring immense value, the issue lies with incentives and the way they are paid. Incentives drive everything, look no further than to Saudi and you will see many examples where the incentives skew towards short-termism. Ask anyone to stay here and build, and the numbers dwindle very quickly. Ask someone to fly in and out and deliver beautiful slides, and you will find plenty of hands up in the air. Nevertheless, here are some useful takeways that are worth highlighting.


The Three Pillars of McKinsey Problem-Solving:

Every McKinsey solution rests on three fundamental principles: fact-based analysis, rigid structure, and hypothesis-driven investigation. This isn't consulting jargon - it's a systematic approach to cutting through complexity and ambiguity. Facts compensate for lack of institutional knowledge and bridge credibility gaps. Structure prevents mental wandering and ensures comprehensive coverage. Hypotheses provide direction and prevent endless analysis paralysis.

MECE - The Magic of Mutually Exclusive, Collectively Exhaustive:

At McKinsey, three is a magic number, but MECE is the magic principle. Every list, every framework, every analysis must be mutually exclusive (no overlap) and collectively exhaustive (nothing important missed). Why does this matter so much? Overlap creates confusion and muddle. Gaps lead to blind spots and failed solutions. MECE thinking induces clarity by forcing you to organize complex problems into clean, manageable pieces. A good list contains neither fewer than two nor more than five top-line items.

Hypothesis-Driven Thinking - Figure Out the Solution Before You Start:

The essence of hypothesis-driven problem-solving is counterintuitive: figure out the solution before you start gathering data. This isn't about being right immediately - it's about having a direction to test. The three-step process: define the initial hypothesis, generate supporting analyses, then test ruthlessly. The end product is an issue tree that maps the logical structure of your investigation. This approach prevents the classic mistake of gathering data aimlessly and hoping insights will emerge.

Don't Reinvent the Wheel - But Know When to Build a New One:

McKinsey has developed frameworks with names like "Analysis of Value Added" and "Forces at Work" because patterns repeat across industries and problems. These tools allow rapid fitting of raw data into coherent frameworks. The "Forces at Work" technique examines suppliers, customers, competitors, and substitute products, then maps all changes in each category. But every client is unique. The art lies in knowing when to apply proven frameworks and when the situation demands fresh thinking.

Make the Solution Fit the Client - Not Your Elegant Theory:

The most brilliant solution is worthless if the client can't implement it. This requires deep understanding of the organization's strengths, weaknesses, and capabilities. Don't make facts fit your preferred solution. Keep an open mind and let evidence guide conclusions. Sometimes clients know what the problem is. Sometimes projects are so large or vague that starting with hypotheses is worthless. In these cases, gather facts, do analysis, and let the solution emerge organically.

The Gravity Problem - When Politics Defeats Logic:

Some problems you simply can't solve - these are "gravity problems." The biggest obstacle is usually politics, not analysis. Recognizing unsolvable problems early saves enormous time and frustration. The skill lies in distinguishing between difficult problems (which require creative approaches) and impossible problems (which require different strategies entirely).

Structured Thinking as Life Skill:

The McKinsey Way isn't just for consultants or business problems. The principles apply to any complex decision: buying a house, choosing a career, evaluating investments, or planning major life changes. Fact-based analysis prevents emotional decisions. MECE thinking ensures you consider all important factors without overlap. Hypothesis-driven investigation gives direction to your research.

Why This Book Matters:

For those wondering what consultants do and how they do it, I thought this was a quick and easy way to share. For all the consultants out there, I hope more will get involved in the implementation and building of long-term value with clients.

Click here to see it on Amazon

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