Phase 1: Initiate

A new project usually starts with discussions to clarify the client’s starting situation and objectives. McKinsey then presents a letter of proposal outlining its view of the problem, the key issues that have to be considered and its recommended approach. The letter also sets out the recommended team structure, both on the client and McKinsey side, and suggests ways in which the two parties could work together.

Phase 2: Start project

McKinsey aims to provide its clients with the best resources for their particular project, so our first step is to put together the right team. We often staff our team members globally, using our electronic staffing system to identify the consultants and specialists who best fit the requirements of the particular project.

The Engagement Director responsible for the project introduces the selected team members to the client and they sit down together to discuss the project objectives and define the right approach to the solution. They draw up a project plan to ensure efficient progress and ongoing control.

Project work usually begins by getting a clear idea of the client's position and the situation in the relevant industry. This transparency is gained through meetings with client managers and staff, but also from our internal industry specialists and practice research documents.

Phase 3: Develop a Solution

In most projects, the solution phase is the most intense and requires close interaction with the client. Our consultants’ everyday work revolves around interviews and team meetings. As we develop and test hypotheses, carry out fact-finding and analysis, and reach conclusions and recommendations, we work closely with our clients to generate trust and motivate them to put the solution into practice.

Our team uses hypotheses based on the understanding of the problem the team has gained so far and on McKinsey’s unique knowledge to break down the key issues into sub-issues. These hypotheses, which constitute a large part of the team’s analytical work, serve as a "best guess" answer to each sub-issue and they need to be tested during the course of the project.

Phase 4: Present Recommendations

McKinsey teams work closely with client executives at all levels throughout the project. In this way, the client’s management shares in the development of our recommendations, monitors the course of our work, provides input and usually agrees to the recommendations before our work is completed. We work towards agreement in many informal and formal meetings and one-to-one discussions. Nevertheless, it is common procedure to hold formal interim progress reviews and give a final presentation to the top management at the end of the project. This often serves as a basis for the client to communicate our findings and recommendations to a broader audience.

Phase 5: Launch Change

Once the client has accepted the team’s recommendations, they must be implemented. McKinsey believes that our work is only complete when we have helped the client take the steps needed to secure real, lasting and beneficial change. The implementation phase is crucial to the project’s success: the team transforms the strategies into actual projects and draws up an implementation and communication plan that clearly sets out the steps to be taken to achieve the objectives. During this phase, McKinsey supports the work of the client's implementation teams.

To ensure that we help the client achieve change and create long-term value, McKinsey teams often return after 6 or 9 months to do a "10,000 mile check-up". In these project reviews, the team measures the success of the implementation against pre-defined targets and often identifies further scope for improvement that had not previously been envisaged.