Eric Hannon

Partner, Frankfurt, Germany

Eric Hannon is a Partner based in the Frankfurt office. He is a core leader in McKinsey’s Automotive and Assembly Practice with a focus on Operations and Product Development. Eric has nearly twenty years of consulting and industry experience.

Recent Project Experience

  • Led a growth strategy product for a division of a large Tier 1 Automotive supplier, identifying a viable path to tripling revenue within 7 years
  • Led a global cost reduction program at a Tier 1 supplier, improving operating margin by 10% within 3 months
  • Led a Product Development Improvement program at a premium Automotive OEM, identifying and implementing core process improvements as well as applying an innovative solution for increasing project teams’ overall performance leading to a 20% improvement in pilot teams’ performance
  • Led a restructuring of the software function at a major Tier 1 Automotive supplier, centralizing the function and introducing common core and feature software sets, greatly increasing modularity and re-use
  • Helped a luxury Automotive OEM completely redefine their product creation process across all functions, reducing time to market by more than 10%
  • Led an R&D Efficiency change program at a major Tier 1 Automotive supplier identifying  over €150 million in cost reduction opportunity through R&D improvement measures and increased global network build-out for an organization of more than 3000 engineers

Education/Background

  • Eric earned his Master of Business Administration from the Ross School of Business at the University of Michigan, graduating with distinction. He also holds a Master of Science in Electrical Engineering from Oakland University, as well as a Bachelor of Science in Electrical Engineering and a Bachelor of Science in Mechanical Engineering from Michigan Technological University.

Publications

An Integrated Perspective on the Future of Mobility

How will city dwellers get around a decade or more from now? McKinsey shares some out-of-the-box ideas and three potential models for cities based on their current and expected future characteristics.

Perspective on Urban Mobility

Want the latest insights and information on the changing nature of urban mobility? Then access the A&A Extranet on Friday, February 17, 2017 from 14:00 to 15:00 CET for a presentation on the topic by Eric Hannon, Partner and co-leader of McKinsey’s Urban Mobility initiative. 

Allocating R&D Budgets: A New Fact-Based Approach

How do you improve a carmaker’s R&D budget allocation recipe? One secret ingredient involves adding a large spoonful of project maturity into the mix.

Anticipating the Automotive Feature-Based Design Revolution

Unless they’re classics, cars usually don’t improve with age. But that could soon change if the industry adopts feature-based design approaches. Used extensively by software developers, feature-based techniques could boost customer satisfaction, make vehicle lifecycle management more flexible, and open new OEM revenue streams.

Developing a Standard R&D Cost Model

As the pressure on product development organizations grows due to more demanding customers, proliferating product lines, and new digital feature requirements, the need for accurate project planning has never been greater. By introducing a standard cost model, companies can improve their ability to estimate R&D project costs and plan resource allocations by product and location.

Balancing R&D Utilization to Achieve Maximum Productivity

Rather than trying to achieve the highest utilization rates for their R&D resources, companies are learning that a more balanced approach to resource use can more effectively drive R&D productivity.

Home Grown: Best-Practice R&D Transfer

Achieving uniformly high performance levels across R&D teams remains an elusive goal for many automotive and assembly players. Rather than seeking external benchmarks that might not resonate with an organization’s culture, companies can look within to identify and transfer best practices.