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McKinsey Interview - Choosing Relevant Buckets, While Being Creative

Context: Am preparing for McKinsey Final Round w/ Partners (who probably care about nitty grittyies of MECE, buckets, etc)

A sample case I did had a question of "Bank Sees A Decline In Profits And Wants To Reverse It.. How Would You Go About Doing This"

Naturally, I did 3 buckets: 1) Ways to increase Revenues, 2) Ways to decrease Costs, and 3) why not have a catch-all bucket about "Understanding the Decline" reasons wherein I would go into Customers, Market, Competitors. 

Asked an Ex-McKinsey mentor and they said I didn't even need bucket #3. I just need to stick to the pure profitability framework and never mix frameworks (e.g mix profitability + CCC frameworks)... I think he was also worried that Market, Consumer, etc would not be Mutually Exclusive with my ideas on increasing revenues/decreasing costs

Moreover, sample answer below doesnt even have Revenue and Costs(weird!) My mentor said this sample answer below is wrong.. To be honest my own answer was completely different focused on ways to logical/creative ways to increase Revenues and decreasing Costs... Unless the words "How Would You Go About Doing This" have some sort of specific meaning, my approach should be equally correct

 

So my question to everyone: To keep things collectively exhaustive and show im creative/considering major factors, should I try to bring in "market", "customers", "competitor" buckets into Profitability cases like this (as long as I ensure no mutual overlap with Revenues/Costs buckets)? Also, should I try to be super creative and have buckets like "Societal Impacts", etc or only do those when extremely relevant

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3 hrs ago
Special Buy-1-Get-1-Free! First 5 Clients Only. Coach with Ex-McKinsey Associate Partner, Google, Chief Digital Officer

Hello, this is a great question and a common point of confusion for many candidates. Your ex-McKinsey mentor is absolutely correct: you did not need the third bucket.

The most important concept here is MECE. A partner wants to see you break a problem down into its most fundamental parts that don't overlap.

When a case explicitly asks how to fix a "decline in profits," the most logical way to do that is to look at the two things that make up profit: Revenues and Costs. That's it. Everything else you might look at is just a sub-part of one of those two.

Your third bucket, "Understanding the Decline," is a common mistake. It’s a diagnostic bucket, not a solution-oriented one. The insights you get from looking at customers or competitors will naturally lead you back to a revenue or cost issue. For example, if you find out a competitor is lowering their prices, that's a revenue problem. Including a separate bucket for it breaks the MECE rule because it's not truly separate from revenue.

You asked about being creative. The answer is yes, but your creativity should be shown within the structure.

At McKinsey, creativity isn't about inventing a new framework. It's about being incredibly specific and insightful within the one you're using. You can show this by getting very specific about what a bank's revenues and costs look like.

Instead of just saying "increase revenue," you could say "Let's look at revenues by breaking them into price (interest rates, fees) and volume (number of clients, number of transactions). For volume, we could explore cross-selling new products to existing clients."

This shows you can think creatively about the specific business while still staying within a perfectly logical and MECE structure.

Your approach was fundamentally correct, and the sample answer your mentor showed you was likely flawed in its structure. Trust your instinct to stick to the pure profitability framework for a problem like this. It is the most robust and professional way to solve it.

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