Basic concepts top tier consultants use and why you should too

CEOs and top-level managers invest millions in strategy consultants each year. But why?

The obvious reason is to get a fresh view of their company, learn about the competition, gain industry insights, and discover best practices.

Yet, it's the consultant's mindset, unique way of thinking, and creative problem-solving that makes the difference. It's about adopting a strategic perspective, approaching challenges differently, and thinking critically and creatively to find new solutions to common problems.

I’ve selected three simple concepts to share with you, that make strategy consultants masters of problem-solving, decision-making, and communication. And here is how you can apply them in your business.

80-20

80% of impact come from 20% of causes.

Example: Look at your business, you will find out that 20% of your customers make up 80% of your revenue also 20% of your customer cause 80% of work for your customer service. Or in your day-to-day: 20%  of your wardrobe gets worn 80% of the time.

How to apply: Business can be overwhelming, so always look for these 20% that bring you  the most results this will help you to focus on the most critical areas of improvement rather than getting lost in minor details.

MECE

MECE stands for “mutually exclusive - collectively exhaustive”. Applying this principle means breaking down each problem into categories that are both distinct from one another (mutually exclusive) and together cover all possible options (collectively exhaustive).

Example: if you were trying to solve the prove of why sales decreased, you might break down the possible causes into non-overlapping categories: pricing, quality, competition, marketing, This way you make sure you are considering all factors

How to apply: At each decision point ask yourself: is this solution MECE? this Helps to make sure that you don’t overlook important things and that you don’t duplicate the efforts in solving it.

Top-down

Approaching a problem top-down you are starting with the main idea and working your way down.

Example: If you want to expand your business into a new market - this is your top-down objective and all actions follow this goal, you will do market research, develop prototype, design marketing campaign, etc. You can do it differently: you can ask just 1-2 clients and design a product for them, but chances are it will not be successful on the market.

How to apply: Always start at the top. By acting “top-down” you can ensure that everything you do is working towards the same goal and you do not waste time on something that is not important.

Remember, it's not about working harder; it's about working smarter. Apply these principles, and watch how they transform the way you approach challenges, making the seemingly complex, possible.