Page 118 - The McKinsey Mind

04 (083-102B) chapter 4 1/29/02 4:50 PM Page 93

Interpreting the Results 93

data can lead to all sorts of insights that pass the “So what?” test.
Returning to the earlier example, if you learn that 20 percent of
your sales staff account for 80 percent of your sales, you should
immediately ask why that is and what can be done to bring the rest
of the sales team up to the level of the top performers. Note that
the 80/20 rule doesn’t necessarily lead directly to insight. Rather,
it prompts you to ask new questions and possibly perform new
analyses that will help you put the story together.
Furthermore, 80/20 can go beyond data. It’s also a useful tool
for figuring out what story to tell. After all, 80 percent of your rec-
ommendations will come from 20 percent of your analyses. In a
word, prioritize. Consider which of your recommendations will
yield the most value for your client, and focus on them. Remember
that an organization can only do so much at one time. Concentrate
on the big wins first.

EXERCISES
• Think of the last analysis project you worked on or were
presented with. Did each exhibit in the presentation you
gave or saw meet the “So what?” test? Go through the pre-
sentation documents and write down the “so what” for at
least 10 exhibits.
• Perform an 80/20 analysis of your job. On what do you
spend most of your time? Which of your activities produce
the most benefit for your organization? (Be honest!) Which
produce the most benefit for you? Can you think of ways
to spend more time on the things that produce the most
benefit and less time on the activities that produce the
least?
• Perform an 80/20 analysis of your company. Can you find
instances of 80/20 in your business unit or department?