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Structured Problem Solving Hypothesis Generation Goals of this module Lay out a systematic approach to solving business problems –“Structured Problem Solving ” Establish a common “modus operandus” for Consulting teams Practice the suggested process on a real-life example Strategy is about thriving in a changing world… … which is all about “decision making” “Strategy is about making decisions” The best strategy “makers” are able to blend analytic techniques with an understanding of the future uncertainties and simple good luck Based on often imperfect information they make decisions and then drive implementation There are two basic approaches to problem solving; but both can work Defining the issue is the first step in the journey to final recommendations Hypothesis formation ensures that our analysis is focused on our client’s problem Hypotheses are developed in three steps A hypothesis should identify not only the issue but also the cause and the impact Think through these three stages as you create a hypothesis to help you plan out how you will test it: What is the issue? What is the underlying opportunity? Where is the advantage? What do you think causes the issue? What are the key drivers of the process? What is the impact of the issue? How can we tell there is an opportunity? Why do we care? The Structured Problem Solving Process covers the life cycle of a consulting engagement Define the Problem Structure the Problem Develop a Hypothesis Execute the Analysis Develop a Recommendation Create the Communication Deliver Communication Follow Up with Client Our problem solving approach produces results through answering a simple series of questions Is there a problem or opportunity? If so where does it lie? Why does it exist? What could we do about it? What should we do about it? Logical pyramids are basic tools for this approach, helping you to define, structure and solve the client’s problem 1. Ideas at any level in the pyramid must always be summar
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