The McKinsey Approach

to Problem Solving
An Umbrex Toolkit

1
About the McKinsey Approach to Problem Solving

McKinsey & Co. has built a reputation as one of* the most respected management consulting firms in the world
based on the strength of its approach to solving problems.

This approach can be taught.

And, in fact, it is taught to every consultant joining McKinsey during their first week at the firm.

At Umbrex we believe anyone can learn this approach, and we hope to make it available to a wider audience.

This document provides an introduction to the McKinsey problem solving approach.

And the document includes problem-solving templates you can use in your own document.

* McKinsey consultants and alums might strike the “one of” in this sentence.

2
Table of Contents
The McKinsey Approach to Problem Solving
Problem Solving Process
Define the Problem
Problem Statement Worksheet
Stakeholder Analysis Worksheet
Structure the Problem
Hypothesis Trees
Issue Trees
Prioritize Issues
Plan Analyses
Create a Workplan
Synthesize Findings
Craft Recommendations
Communicate
Distinctiveness Practices
Harness the Power of Collaboration
About Umbrex

3
The McKinsey Approach
to Problem Solving

Copyright © 2023 All rights reserved. 4

The McKinsey Approach to Problem Solving
Problem solving — finding the optimal solution to a given business opportunity or challenge — is the very heart
of how consultants create client impact, and considered the most important skill for success at McKinsey.
The characteristic “McKinsey method” of problem solving is a structured, inductive approach that can be used
to make progress on nearly any problem.
There are four fundamental disciplines of the McKinsey method:
1. Problem definition: A thorough understanding and crisp definition of the problem.
2. The problem-solving process: Structuring the problem, prioritizing the issues, planning analyses,
conducting analyses, synthesizing findings, and developing recommendations.
3. Distinctiveness practices: Constructing alternative perspectives; identifying relationships; distilling the
essence of an issue, analysis, or recommendation; and staying ahead of others in the problem-solving
process.
4. Collaboration: Actively seeking out client, customer, and supplier perspectives, as well as internal and
external expert insight and knowledge.

Source: McKinsey Staff Paper 66 5

 Problem
Solving Process

Copyright © 2023 All rights reserved. 6

Problem-solving process

1. Define problem Will our definition of the problem solve the core issue?

2. Structure problem Break down the problem into elements that are mutually exclusive and collectively exhaustive (MECE)

3. Prioritize issues What questions are most critical? If we get the answer, would that change our final recommendation?

4. Plan analyses What sources of info will we need, how will we get them, how long will it take, who will do it?

5. Conduct analyses What’s the simplest way to prove or disprove the hypothesis?

6. Synthesize findings What’s the “so what?”

7. Craft recommendations Make it clear what the client should do, and why.

8. Communicate Map the stakeholders, involve them in the process, build alignment such that they own the solution

Source: McKinsey Staff Paper 66 7

Problem-solving process: checklist This template can be used
by a team to do a periodic
process check
Status

1. Define problem 


2. Structure problem

3. Prioritize issues 

4. Plan analyses 

5. Conduct analyses 


6. Synthesize findings

7. Craft recommendations 

8. Communicate 

8
Define the Problem

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Define the problem
1. The most important step in your entire project is to first carefully define the problem.

2. The problem definition will serve the guide all of the team’s work, so it is critical to ensure that all key
stakeholders agree that it is the right problem to be solving.

3. There are often dozens of issues that a team could focus on, and it is often not obvious how to define the
problem.

4. In any real-life situation, there are many possible problem statements.

5. Your choice of problem statement will serve to constrain the range of possible solutions.

6. Constraints can be a good thing (e.g., limit solutions to actions within the available budget.) And constraints
can be a bad thing (e.g., eliminating the possibility of creative ideas.) So choose wisely.

7. The problem statement may ignore many issues to focus on the priority that should be addressed.

8. The problem statement should be phrased as a question, such that the answer will be the solution.

Source: McKinsey Staff Paper 66 10

Example situation – A family on Friday evening

Scenario: A mother, a father, and their two teenage children have all arrived home on
a Friday at 6 p.m. The family has not prepared dinner for Friday evening. The
daughter has lacrosse practice on Saturday and an essay to write for English class
due on Monday. The son has theatre rehearsal on both Saturday and Sunday and will
need one parent to drive him to the high school both days, though he can get a ride
home with a friend. The family dog, a poodle, must be taken to the groomer on
Saturday morning. The mother will need to spend time this weekend working on
assignments for her finance class she is taking as part of her Executive MBA. The
father plans to go on a 100-mile bike ride, which he can do either Saturday or
Sunday. The family has two cars, but one is at the body shop. They are trying to save
money to pay for an addition to their house.

What is the problem definition?

Source: McKinsey Staff Paper 66 11

Potential problem definitions – Family on Friday evening
Given one set of facts, it is possible to come up with many possible problem statements.

The choice of problem statement constrains the range of possible solutions.

Before starting to solve the problem, the family first needs to agree on what problem they want to solve.

Examples:

1. What should the family do for dinner on Friday night?

2. How can the family schedule their activities this weekend to accomplish everything planned given that they
only have one vehicle available?

3. How can the family increase income or reduce expenses to allow them to save $75K over the next 12
months to pay for the planned addition to their house?

Source: McKinsey Staff Paper 66 12

Phrase the problem statement as a question

A statement of facts does not focus the A question guides the team towards a
problem solving solution

It is 6 p.m. The family has not made 1. What should the family do for dinner on
plans for dinner, and they are hungry. Friday night?

2. Should the family cook dinner or order

delivery?

3. What should the family cook for dinner?

4. What should the family cook for dinner that

will not require spending more than $40 on
groceries?

5. To cook dinner, what do they need to pick

up from the supermarket?

6. How can the family prepare dinner within

the next hour using ingredients they already
have in the house?

Source: McKinsey Staff Paper 66 13

The choice of problem statement constrains the solution space

Possible problem statements… … direct the focus of problem solving

1. What should the family do for dinner on Friday night? Broad question opens possible solutions to cooking,
reheating leftovers, ordering delivery, going out to eat, etc.

2. Should the family cook dinner or order delivery? Focus on a binary decision

3. What should the family cook for dinner? Solutions now exclude externally prepared meals

4. What should the family cook for dinner that will not Solutions now exclude meals with expensive ingredients
require spending more than $40 on groceries?

5. To cook vegetable lasagna, what do they need to pick up Solution is tightly bounded
from the supermarket?

6. How can the family prepare dinner within the next hour Additional constraint added will exclude solutions that require
using ingredients they already have in the house? ingredients not available in the house

Source: McKinsey Staff Paper 66 14

Checklist: Characteristics of a useful problem definition

 Phrased as a question
 Stakeholders aligned that this is the right question to solve
 Focuses the team on the priority issue
 Implies a specific outcome
 Will often include a deadline
 Incorporates appropriate constraints on the universe of potential solutions

Source: McKinsey Staff Paper 66 15

Problem definition worksheet This template can help a team
evaluate various proposals for
the problem definition

Possible problem Implied constraints on Observations on this

Evaluation
definition solution space problem statement
• List versions of the • What types of potential • Is the time-frame realistic • If differences of opinion
problem definition to be solutions would this and appropriate? exist, indicate here which
evaluated problem statement stakeholder favors each
exclude? • Does this focus on the problem definition
highest priority issue?
• Indicate which is the
• Will we be satisfied if we team’s recommendation
had the solution to this
problem statement? • Explain why other options
have been deprioritized

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Problem definition worksheet This template can help a team
evaluate various proposals for
the problem definition

Possible problem Implied constraints on Observations on this

Evaluation
definition solution space problem statement
xxx xxx xxx xxx

xxx xxx xxx xxx

xxx xxx xxx xxx

xxx xxx xxx xxx

17
Examples of problem definitions
1. How can Alfa Manufacturing…..
2. How can Bravo Hair Salon….
3. How can Charlie Bank….
4. How can Delta Lawncare….
5. How can Echo …..

Source: McKinsey Staff Paper 66 18

Problem Statement
Worksheet

Copyright © 2023 All rights reserved. 19

Problem Statement Worksheet

Much of the value of the Problem Statement Worksheet comes from the thought processes and discussions
generated. There are several ways to maximize its value:
• Basic question. Make the question SMART: specific, measurable, action-oriented, relevant, and time-
bound.
• Context. What are the internal and external situations and complications facing the client, such as
industry trends, relative position within the industry, capability gaps, financial flexibility, and so on?
• Success criteria. Understand how the client and the team define success and failure. In addition to any
quantitative measures identified in the basic question, identify other important quantitative or qualitative
measures of success, including timing of impact, visibility of improvement, client capability building
required, necessary mindset shifts, and so on.
• Scope and constraints. Scope most commonly covers the markets or segments of interest, whereas
constraints govern restrictions on the nature of solutions within those markets or segments.
• Stakeholders. Explore who really makes the decisions — who decides, who can help, and who can block.
• Key sources of insight. What best-practice expertise, knowledge, and engagement approaches already
exist? What knowledge from the client, suppliers, and customers needs to be accessed? Be as specific as
possible: who, what, when, how, and why.

Source: McKinsey Staff Paper 66 20

Problem statement worksheet

Basic question to be resolved

Defines what must be resolved to deliver McKinsey-level client impact.
The question should be SMART: specific, measurable, action-oriented, relevant, and time-bound

1. Context 4. Constraints within solution space

Sets out the situation and complication facing the client - Defines the limits of the set of solutions that can be
e.g., industry trends, relative position in the industry considered - e.g., must involve organic rather than
inorganic growth

2. Criteria for success 5. Stakeholders

Defines success for the project. Must be shared by client Identifies who makes the decisions and who else could
and team, and must Include relevant qualitative and support (or derail) the study - e.g., CEO, division
quantitative measures - e.g., impact and impact timing, manager, SBU manager, key outside influencers
visibility of improvement, client mindset shifts

3. Scope of solution space 6. Key sources of insight

Indicates what will and will not be Included In the study - Identifies where best-practice expertise, knowledge, and
e.g., international markets, research and development engagement approaches exist (Internal and client) - e.g.,
activities, uncontrolled corporate costs practice experts, EM guides, practice databases

Source: McKinsey Staff Paper 66 21

Problem statement [Name of your problem]

Basic question to be resolved

Text

1. Context 4. Constraints within solution space

Text Text

2. Criteria for success 5. Stakeholders

Text Text

3. Scope of solution space 6. Key sources of insight

Text Text

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Stakeholder Analysis
Worksheet

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Stakeholder analysis

Stakeholder Impact on stakeholder Actions of stakeholder Engaging stakeholder

• Who will be affected? • How might • Will stakeholder be likely • Who from our team will be
(Could name an individual recommendations impact to support, object, or be designated to engage this
or a group) this stakeholder, either indifferent to stakeholder
positively or negatively? recommendations?
• Whom do we need to • How and when should we
engage? • What issues to they have • What do we want this engagement this
regarding the project/ group or individual to think stakeholder?
• Whom do we need to business? or do?
inform? • What could we do or say
• What values and • What can they do to that would resolve their
motivations can we build support our objectives? issues?
on?
• How might they block our • What communication
• What values and objectives? approaches would work
motivations may cause best with them?
conflict? • How can we minimize any
potentially negative • What messages to use?
impact?

24
Stakeholder analysis Use multiple pages if
required

Stakeholder Impact on stakeholder Actions of stakeholder Engaging stakeholder

[Stakeholder 1] xxx xxx xxx

[Stakeholder 2] xxx xxx xxx

[Stakeholder 3] xxx xxx xxx

[Stakeholder 4] xxx xxx xxx

25
Stakeholder analysis: [name of stakeholder] For a more detailed
analysis – one page per
stakeholder

1. Stakeholder 3. Actions of stakeholder

Name the individual or group and provide background in this Will stakeholder be likely to support, object, or be indifferent
text block to recommendations?
What do we want this group or individual to think or do?
What can they do to support our objectives?
How might they block our objectives?
How can we minimize any potentially negative impact?

2. Impact on stakeholder 4. Engaging with stakeholder

How might recommendations impact this stakeholder, either Who from our team will be designated to engage this
positively or negatively? stakeholder
What issues to they have regarding the project/ business? How and when should we engagement this stakeholder?
What values and motivations can we build on? What could we do or say that would resolve their issues?
What values and motivations may cause conflict? What communication approaches would work best with
them?
What messages to use?

26
Stakeholder analysis: [name of stakeholder] For a more detailed
analysis – one page per
stakeholder

1. Stakeholder 3. Actions of stakeholder

xxx xxx

2. Impact on stakeholder 4. Engaging with stakeholder

xxx xxx

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Structure the Problem

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Structuring the Problem with Hypothesis Tree and/or Issue Tree

• Preferred approach – use when Example:

sufficient knowledge exists

• Consists of statements that should be

tested and proven right or wrong
Hypothesis tree
• Not obvious. Open to debate

• Point towards an action

• Use when there is insufficient Example:

knowledge to construct robust
hypotheses

• Consists of questions to break down

Issue tree the problem into components

• Use open questions (“What?” “How?”)

• Should be mutually exclusive and

collectively exhaustive (MECE)

Source: McKinsey Staff Paper 66 29

 Hypothesis tree can lead to quicker action

Support or
Assert a possible
Hypothesis tree disprove the Implement
recommendation
recommendation

Analysis and Develop

Issue tree Ask questions Implement
research recommendation

Source: McKinsey Staff Paper 66 30

Hypothesis Trees

Copyright © 2023 All rights reserved. 31

The Hypothesis Tree

Characteristics of a good hypothesis:

1. Is it testable – can you prove or disprove it?
2. It is open to debate? If it cannot be wrong, it is simply a statement of fact and unlikely to produce keen
insight.
3. If you reversed your hypothesis – literally, hypothesized that the exact opposite were true – would you
care about the difference it would make to your overall logic?
4. If you shared your hypothesis with the CEO, would it sound naive or obvious?
5. Does it point directly to an action or actions that the client might take?

Source: McKinsey Staff Paper 66 32

Example situation – Alpha Manufacturing, Inc.

• Alpha Manufacturing, Inc. is a (fictional) mid-market firm producing industrial

abrasives. The firm experienced steady top-line growth averaging 10% annually for
twelve years in a row. The past two years, revenue growth has stalled, with
revenues of $475MM in 2021 and 2022. EBITDA in 2022 was $37MM.
• Alpha has focused primarily on the automotive, telecom, and construction
industries. Geographic focus is on North America and Europe.
• Profitability has declined over the past two years.

Develop a set of potential problem statements.

Select one and create a hypothesis tree.

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Hypothesis tree: Alpha Manufacturing, Inc.

Alpha can add $75M in

revenues by selling existing
products to customers
outside its current industry Alpha can add $30M in
Alpha can add $125M focus revenue in Asia
revenues by expanding to
new customers, adding
$8M of EBITDA
Alpha can add $50M in
revenue by selling existing
product lines to customers
Problem statement:
outside its current Alpha can add $20M in
How can Alpha increase
geographic focus revenue in South America
EBITDA by $13M (to
$50M) by 2025?

Alpha can reduce SG&A by

$2M by consolidating
duplicate corporate
functions

Alpha can reduce costs to

improve EBITDA by $5M
Alpha can reduce COGS by
$3M through a strategic
sourcing initiative to reduce
cost of raw materials

34
Hypothesis tree: [name of problem]

Text

Text

Text

Text

Text Text

Text

Text Text

35
Issue Trees

Copyright © 2023 All rights reserved. 36

The Issue Tree

Characteristics of an issue tree:

1. Each element is an open question, often in the form of “What?” or “How?”
2. Sub-branches break down each issue into sub-elements
3. Elements should be mutually exclusive and collectively exhaustive (MECE)

Source: McKinsey Staff Paper 66 37

Example situation – Alpha Manufacturing, Inc.

• Alpha Manufacturing, Inc. is a (fictional) mid-market firm producing industrial

abrasives. The firm experienced steady top-line growth averaging 10% annually for
twelve years in a row. The past two years, revenue growth has stalled, with
revenues of $475MM in 2021 and 2022. EBITDA in 2022 was $37MM.
• Alpha has focused primarily on the automotive, telecom, and construction
industries. Geographic focus is on North America and Europe.
• Profitability has declined over the past two years.

Develop a set of potential problem statements.

Select one and create an issue tree.

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Issue tree: Alpha Manufacturing, Inc.

How can Alpha expand to serve new

How can Alpha increase industry segments?
revenue of existing product
lines? How can Alpha expand to serve
customers in new geographies?

How can Alpha increase

revenue? What new products could Alpha sell to
How can Alpha increase its customers in the auto industry?
revenue by developing new
Problem statement:
products for existing
How can Alpha increase What new products could Alpha sell to
customers?
EBITDA by $13M (to its customers in the telecom industry?
$50M) by 2025?

How can Alpha reduce How can Alpha reduce duplicate

SG&A? headcount in back office functions?

How can Alpha reduce COGS through

How can Alpha reduce
strategic sourcing?
costs? How can Alpha reduce Cost
of Goods Sold?
How can Alpha improve productivity
of its manufacturing plants?

39
Issue tree: [template]

Text

Text

Text

Text
Text

Text
Text Text

Text Text

Text
Text
Text

Text

40
Prioritize Issues

Copyright © 2023 All rights reserved. 41

Prioritize issues or hypotheses
Given limited time and funding, focus on issues that are highly uncertain and can have the highest
potential impact on the answer

High impact
Focus
limited
resources
Potential impact

here

Use
Low impact

existing
knowledge

Low uncertainty Highly uncertain

Level of uncertainty
42
Plan Analyses

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 Plan analyses - overview

Timing /steps /
Issue or hypothesis Analysis Sources of insight End product
responsibility
List the issue to be Indicate what analysis What sources will we use What should the output Who is responsible?
investigated or the will be done to provide to generate the look like?
hypothesis to be tested insights that would necessary insights? What steps will that
answer the question or Draft the chart we person need to take?
test the hypothesis If we need data, where expect to produce (with
will we get it? Is the dummy data) When can we expect the
data available internally? results?
Can we buy the data?
Get it free off the
Internet?

If we need to interview
experts, how will we find
them?

If we need to conduct a
survey, how will we run
it?

44
 Plan analyses [template]
Timing /steps /
Issue or hypothesis Analysis Sources of insight End product
responsibility
xxx xxx xx xxx xxx

xxx xxx xx xxx xxx

xxx xxx xx xxx xxx

xxx xxx xx xxx xxx

xxx xxx xx xxx xxx

45
Analysis plan [Detailed approach] For a more detailed
analysis – one page per
issue or hypothesis

1. Analysis to be conducted 3. End product

Indicate what analysis will be done to provide insights that What should the output look like?
would answer the question or test the hypothesis Draft the chart we expect to produce (with dummy data)

2. Sources of insight 4. Timing / steps / responsisibility

What sources will we use to generate the necessary insights? When can we expect the results?
If we need data, where will we get it? Is the data available What steps will that person need to take?
internally? Can we buy the data? Get it free off the Internet? Who is responsible?
If we need to interview experts, how will we find them?
If we need to conduct a survey, how will we run it?

46
Analysis plan [insert issue or hypothesis here] For a more detailed
analysis – one page per
issue or hypothesis

1. Analysis to be conducted 3. End product

xxx xxx

2. Sources of insight 4. Timing / steps / responsisibility

xxx xxx

47
Create a Workplan

Copyright © 2023 All rights reserved. 48

Workplan Horizons

It’s useful to match the workplan to three horizons:

1. What is expected at the end of the engagement
2. What is expected at key progress reviews
3. What is due at daily and/or weekly team meetings
The detail in the workplan will typically be greater for the near term (the next week) than for the long term
(the study horizon), especially early in a new engagement when considerable ambiguity about the end state
remains.

Source: McKinsey Staff Paper 66 49

Three horizons of engagement planning

Engagement horizon: project workplan

The project workplan Is the key Instrument used to control the progress of the study
• It should be reviewed often to ensure direction remains sound and deadlines are not missed
• It should be updated after key progress reviews or team discussions

Current cycle: document for progress review

• Regroup and plan for next cycle after every team review and client progress review
• Determine responsibilities for key analyses and balance workload, ensuring that the critical path of work is sequenced

Current week: internal meetings, to-do lists

3 August September October

CW30 CW31 CW32 CW33 CW34 CW35 CW36 CW37 CW38 CW39

• Take time to reflect on study progress at least weekly

• Define actions required to keep the problem-solving process moving (e.g., interviews, Information requests, Involvement of McKinsey or client
resources)

Source: McKinsey Staff Paper 66 50

High-level workplan for [project name]
Subtitle

Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12

YOUR TITLE

Lorem ipsum dolor sit amet, consectetur

adipiscing elit. Sed eget.
YOUR TITLE

Lorem ipsum dolor sit amet, consectetur

adipiscing elit. Sed eget.

YOUR TITLE

Lorem ipsum dolor sit amet, consectetur

adipiscing elit. Sed eget.
YOUR TITLE

Lorem ipsum dolor sit amet, consectetur

adipiscing elit. Sed eget.
YOUR TITLE

Lorem ipsum dolor sit amet, consectetur

adipiscing elit. Sed eget.

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Workplan template – next five weeks
Subtitle

Workstream XXX XXX XXX XXX XXX

Week of ___ Week of ___ Week of ___ Week of ___ Week of ___

Heading Lorem ipsum dolor sit Lorem ipsum dolor Lorem ipsum dolor sit Lorem ipsum dolor sit Lorem ipsum dolor sit
amet, consectetur sit amet, consectetur amet, consectetur amet, consectetur amet, consectetur
adipiscing elit adipiscing elit adipiscing elit adipiscing elit adipiscing elit

Heading Lorem ipsum dolor sit Lorem ipsum dolor Lorem ipsum dolor sit Lorem ipsum dolor sit Lorem ipsum dolor sit
amet, consectetur sit amet, consectetur amet, consectetur amet, consectetur amet, consectetur
adipiscing elit adipiscing elit adipiscing elit adipiscing elit adipiscing elit

Heading Lorem ipsum dolor sit Lorem ipsum dolor Lorem ipsum dolor sit Lorem ipsum dolor sit Lorem ipsum dolor sit
amet, consectetur sit amet, consectetur amet, consectetur amet, consectetur amet, consectetur
adipiscing elit adipiscing elit adipiscing elit adipiscing elit adipiscing elit

Heading Lorem ipsum dolor sit Lorem ipsum dolor Lorem ipsum dolor sit Lorem ipsum dolor sit Lorem ipsum dolor sit
amet, consectetur sit amet, consectetur amet, consectetur amet, consectetur amet, consectetur
adipiscing elit adipiscing elit adipiscing elit adipiscing elit adipiscing elit

52
Workplan – week of [date]
Subtitle

Workstream Planned activities End products Responsibility

xx xx xx
xxx

xx xx xx
xxx

xx xx xx
xxx

xx xx xx
xxx

xx xx xx
xxx

53
Synthesize Findings

Copyright © 2023 All rights reserved. 54

Synthesize Findings

This is the most difficult element of the problem-solving process. After a period of being immersed in the
details, it is crucial to step back and distinguish the important from the merely interesting. Distinctive problem
solvers seek the essence of the story that will underpin a crisp recommendation for action.
McKinsey’s primary tool for synthesizing is the pyramid principle. Essentially, this principle asserts that every
synthesis should explain a single concept, per the “governing thought.” The supporting ideas in the synthesis
form a thought hierarchy proceeding in a logical structure from the most detailed facts to the governing
thought, ruthlessly excluding the interesting but irrelevant.
While this hierarchy can be laid out as a tree (like with issue and hypothesis trees), the best problem solvers
capture it by creating dot-dash storylines — the Pyramid Structure for Grouping Arguments.
Although synthesis appears, formally speaking, as the penultimate step in the process, it should happen
throughout. Ideally, after you have made almost any analytical progress, you should attempt to articulate the
“Day 1” or “Week 1” answer. Continue to synthesize as you go along. This will remind the team of the question
you are trying to answer, assist prioritization, highlight the logical links of the emerging solution, and ensure
that you have a story ready to articulate at all times during the study.

Source: McKinsey Staff Paper 66 55

Pyramid Structure for Grouping Arguments
• Focus on action. Articulate the thoughts at each level of the pyramid as declarative sentences, not as
topics. For example, “expansion” is a topic; “We need to expand into the European market” is a declarative
sentence.
• Use storylines. PowerPoint is poor at highlighting logical connections, therefore is not a good tool for
synthesis. A storyline will clarify elements that may be ambiguous in the PowerPoint presentation.
• Keep the emerging storyline visible. Many teams find that posting the storyline or story- board on the
team-room wall helps keep the thinking focused. It also helps in bringing the client along.
• Use the situation-complication-resolution structure. The situation is the reason there is action to be
taken. The com- plication is why the situation needs thinking through – typically an industry or client
challenge. The resolution is the answer.
• Test the pyramid. You can assess the rigor of your pyramid using three simple tests:
– Down the pyramid: does each governing thought pose a single question that is answered completely by
the group of boxes below it?
– Across: is each level within the pyramid MECE?
– Up: does each group of boxes, taken together, provide one answer – one “so what?” – that is essentially
the governing thought above it?
• Test the solution. What would it mean if your hypotheses all came true?

Source: McKinsey Staff Paper 66 56

Attributes of pyramid structure for grouping arguments

Governing
“So what?” to build a thought A logical structure to the
governing thought supporting arguments
CO
M
M
UN
IC
SIS Major arguments Major arguments AT
E IO
N TH N
SY

Logical sequence of arguments, e.g.:

• Situation
• Complication
• Resolution
Logical grouping of similar arguments, e.g.:
• Reasons
• Examples
• Actions

Source: McKinsey Staff Paper 66 57

Craft Recommendations

Copyright © 2023 All rights reserved. 58

Craft recommendations

It is at this point that we address the client’s questions: “What do I do, and how do I do it?” This means not
offering actionable recommendations, along with a plan and client commitment for implementation.
The essence of this step is to translate the overall solution into the actions required to deliver sustained impact.
A pragmatic action plan should include:
• Relevant initiatives, along with a clear sequence, timing, and mapping of activities required
• Clear owners for each initiative
• Key success factors and the challenges involved in delivering on the initiatives
Crucial questions to ask as you build recommendations for organizational change are:
• Does each person who needs to change (from the CEO to the front line) understand what he or she needs
to change and why, and is he or she committed to it?
• Are key leaders and role models throughout the organization personally committed to behaving
differently?
• Has the client set in place the necessary formal mechanisms to reinforce the desired change?
• Does the client have the skills and confidence to behave in the desired new way?

Source: McKinsey Staff Paper 66 59

Communicate

Copyright © 2023 All rights reserved. 60

Structuring the Problem with Hypothesis Tree and/or Issue Tree

Briefly describe the current state “Alpha Co. is a leading supplier of

furniture in the commercial office
Situation market.”

What opportunity has arisen? “The shift to work-from-home has

reduced demand from commercial
Complication What threat has emerged? buyers, while a growing opportunity
exists in the home office market.”

What should we do? “Alpha Co. should develop new product

lines and new sales channels to capture
Resolution the opportunity to furnish home offices.”

Source: McKinsey Staff Paper 66 61

Executive summary: [name of project] A classic way to structure
an executive summary
Subtitle (and document) is
“Situation – Complication –
Resolution”
[Situation – lay out the facts of the current state]
• Text Each of the dot points on
this slide should then
• Text
match to a page in your
• Text presentation that provides
• Text the detailed backup

[Complication – what has changed or will change, and what will be the impact]
• Text
• Text
• Text
• Text

[Resolution – what should we do]

• Text
• Text
• Text
• Text

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Distinctiveness Practices

Copyright © 2023 All rights reserved. 63

Distinctiveness Practices (page 1 of 2)
Great problem solvers identify unique disruptions and discontinuities, novel insights, and step-out opportunities
that lead to truly distinctive impact. This is done by applying a number of practices throughout the problem-
solving process to help develop these insights.
1. Expand: Construct multiple perspectives
Identifying alternative ways of looking at the problem expands the range of possibilities, opens you up to
innovative ideas, and allows you to formulate more powerful hypotheses. Questions that help here include:
• What changes if I think from the perspective of a customer, or a supplier, or a frontline employee, or a
competitor?
• How have other industries viewed and addressed this same problem?
• What would it mean if the client sought to run the company like a low-cost airline or a cosmetics
manufacturer?
2. Link: Identify relationships
Strong problem solvers discern connections and recognize patterns in two different ways:
• They seek out the ways in which different problem elements – issues, hypotheses, analyses, work
elements, findings, answers, and recommendations – relate to one another
• They use these relationships throughout the basic problem-solving process to identify efficient problem-
solving approaches, novel solutions, and more powerful syntheses
Source: McKinsey Staff Paper 66 64
Distinctiveness Practices (page 2 of 2)

3. Distill: Find the essence

Cutting through complexity to identify the heart of the problem and its solution is a critical skill.
• Identify the critical problem elements. Are there some issues, approaches, or options that can be
eliminated completely because they won’t make a significant difference to the solution?
• Consider how complex the different elements are and how long it will take to complete them. Wherever
possible, quickly advance simpler parts of the problem that can inform more complex or time-consuming
elements.
4. Lead: Stay ahead/step back
Without getting ahead of the client, you cannot be distinctive. Paradoxically, to get ahead – and stay ahead – it
is often necessary to step back from the problem to validate or revalidate the approach and the solution.
• Spend time thinking one or more steps ahead of the client and team.
• Constantly check and challenge the rigor of the underlying data and analysis.
• Stress-test the whole emerging recommendation
• Challenge the solution against a set of hurdles. Does it satisfy the criteria for success as set out on the
Problem Statement Worksheet?

Source: McKinsey Staff Paper 66 65

Harness the Power
of Collaboration

Copyright © 2023 All rights reserved. 66

Harness the Power of Collaboration

No matter how skilled, knowledgeable, or experienced you are, you will never create the most distinctive
solution on your own. The best problem solvers know how to leverage the power of their team, clients, the
Firm, and outside parties. Seeking the right expertise at the right time, and leveraging it in the right way, are
ultimately how we bring distinctiveness to our work, how we maximize efficiency, and how we learn.
When solving a problem, it is important to ask, “Have I accessed all the sources of insight that are available?”
Here are the sources you should consider:
• Your core team
• The client
• The client’s suppliers and customers
• Internal experts and knowledge
• External sources of knowledge
• Communications specialists
The key here is to think open, not closed. Opening up to varied sources of data and perspectives furthers our
mission to develop truly innovative and distinctive solutions for our clients.

Source: McKinsey Staff Paper 66 67

About Umbrex

Copyright © 2023 All rights reserved. 68

 Find a consultant now

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Why Umbrex? Find a consultant now

Founded by McKinsey alums, Umbrex provides rapid access to independent management consultants with experience at top-
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Over 90% of Umbrex consultants are alums of McKinsey, Bain, or BCG.

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How to replace the placeholder logo in this template

1 3 5

View > Slide Master

Delete placeholder logo from Move your own logo into position on the
Master slide Master slide.

OR: Just delete the placeholder logo

2 from the Master and leave that space
blank.
Select 4
the top
Master
slide

Watch video:
Select Insert > Pictures
How to replace the placeh
Browse and select your logo older logo

79
How to change the color scheme in this template
Subtitle

1 3 4

View > Slide Master

Use RBG / HEV color values

2 Or just use the color eyedrop to
replace the existing colors

Change each one of the color

slots as explained in the video
Then Colors > Customize colors
Watch video:
How to change the color p
alette

80