Frameworks Module

Question 1

What is a framework?

Answer 1

A list of all the questions you need answered to make a decision & a systematic way to make sense of them

Question 2

How to build a map?

Answer 2

Find out what areas are relevant to map out to the clients specific goals (find the right categories to analyse)

Then add the most relevant details in those areas (finding the right issues in those catergories)

Question 3

Most known type of issue tree?

Answer 3

the profitability framework

Question 4

Issue trees help you to

Answer 4

break down the problem into parts

easy to see how these are MECE (no gaps and overlaps; all problems n profit must be explained by either revenues and/or costs)

Allow for isolating the problem (aka with just a few numbers you can quickley work out if the cause of our profit problem is coming from revenues side or costs side)

HOWEVER not all problems are best solved by breaking the problem into parts and isolating those parts (so issue trees not always the best tool)

Question 5

Conceptual Frameworks

Answer 5

Describes business startegy into three areas

^not going to give you an analytical answer that revenues minus costs would give (not 100% analytical but bring more CONTEXT)

Conceptual problems help you look at probblem from different angles rather than break it into analytical parts.

HARD to be 100% MECE

Allow for a systematic view of the problem (view from all angles)

Question 6

When to use and issue tree vs conceptual framework?

Answer 6

Profitability cases that ask you to fix a recent drop in profits

Long term startegy problem - prefer to have awareness of all nuances, need more context, no one or two things you can isolate to reach a reliable reccommendation.

Most McKinsey 1st round interviews are long term strategy

Question 7

Examples of context driven frameworks

Answer 7

The 4Ps break down marketing plan into the 4 major levers a company ahs to market a product

Porter’s 5 forces break down an industry’s potential to be profitable into the 5 players that may harm that industy’s profitability

Break down a multi part system into its components

Question 8

Objective driven frameworks
(more info in their structuring course)

Answer 8

Breaks down a goal into its objectives

Question 9

Three Cs

Answer 9

Whenever you create a business strategy you nee dto be aware of the customers, competitors and company