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04 (083-102B) chapter 4 1/29/02 4:50 PM Page 97

Interpreting the Results 97

mental and lasting differences in performance forces us to
take an aggressive 80/20 view of any potential project. We
have to ask, “If we commit these resources for something
approaching this predicted return, what difference is it going
to make to hitting our performance objective?”
For example, my staff brought me a data warehouse
project which required an investment of $8 million for a
wonderful internal rate of return and payback in two or
three years. I said, “Look, guys, if we can’t get at least 10
times the impact for this expenditure, I’m not taking this to
the board, so go back and find some way that we’re going
to generate a return of at least 10 times whatever it is we
spend.” Everything is judged on its ability to help us meet
our performance challenge.

Sometimes you can get caught up in the elegance and clever-
ness of your analysis, or even the sheer effort you put into it. Don’t
let it cloud your judgment. With apologies to Jack Kennedy, “Ask
not what your analysis means to you; ask what it can mean to your
client.”
Respect the limits of your client’s abilities. The most brilliant
strategy in the world won’t help you if your organization can’t
implement it. This holds not just for business, it’s true in any realm
that calls for strategy. If your football team doesn’t have a strong
offensive line, there’s no point trying to run the ball up the mid-
dle. In World War II, the Germans couldn’t sustain a two-front
war. In U.S. politics, you don’t embark on a legislative campaign
if you can’t muster a majority in Congress (as McKinsey alumna
Sylvia Mathews learned from her experience at the Office of Man-
agement and Budget).
When putting together your end product, therefore, keep in
mind whether the recommendations you are making are actionable