We have started a journey together.

Business Problem Framing

14
th
October, 2013
"We know what happens to people who
stay in the middle of the road.
They get run down."
Business Problem Framing: The overview
Evaluating Alternatives
Making Sustainable Choices
Impact of alternatives and
validating Hypothesis
Creative Problem Solving
Through Facts
2
5
3
4
The Problem of Problem
Solving
1
Root cause analysis
MECE Issue Tree
Samples selection
Role of assumptions
Validation and change impact
Data analysis
Intellectual irreverence
Stakeholder contribution
Solution sustainability
Implementation module
KPI Monitoring - Continuity
Identifying a problem
Framing the definition
Structuring towards solution(s)
Trends: Methods:
Frameworks
Course Structure Across Sessions
Underlying frameworks to aide decision making
Hypothesis
Data-driven
Change-
manageme
nt
Objectives
Decisions
Sustainable
Approach
Priority
Unique
Solutions
Inter-
dependent
Decisions
Stakeholder
Inclusive
Implementation
Success
Subjective
Root-
cause
Assumpt
ions
Variables
Procrastination
Alternatives
Trade-offs
No -brainer
Risk Tolerance
Trends Uncertainties
Linked Decisions
Problem framing is a function of multiple facets
Some decisions are no-brainers, while most are really complex
Tough choices have high stakes and serious consequences
Little relationship between what you decide in one instance vs. the next
Connection between decisions lies not in what, rather in how you decide
Each solution can be impacted by several variables, prioritizing is key
Importance of decision making through BPF
Decision making lends credibility through experience
A decision-making approach that addresses these criteria can be practiced on decisions major and minor
Identifies change-
management
requirements
Takes into
account
implementation
challenges
Straightforward,
reliable and easy
to use
Requires optimal
information and
analysis
What are our
key issues?
How can we be
more efficient
and effective ?
How do we
measure
results?
How is decision
process
synchronized
with results?
Are we
responsive to
problem
needs?
Logical
Consistent
Is stakeholder
inclusive
Sustainable and
KPI driven
Focuses on what
is important
Blends analytical
with intuitive
thinking
Encourages
gathering of
relevant
information
Acknowledges
both subjective
and objective
factors
Effective decision making process will fulfill the
following criteria
Eight Elements
Problem
Alternatives
Objective
Linked Decisions
Tradeoffs Risk Tolerance
Uncertainty Consequences
First five form the core of ProACT
approach
Help clarify decisions in evolving
environments
Smart
Choices
The ProACT Approach
The first five constitute the core of our approach and applicable to virtually any decision
The acronym ProACT states that the best approach to decision situations is a proactive procrastination is decision makings
worst enemy
The next three elements help clarifying decisions in volatile or evolving environments
Essence is to divide and conquer and think systematically about each part
Frameworks for problem solving:
Porters 5 Forces
Industry Competitors
Brand strength
Degree of fixed costs
Diversity of rivals
Level of exit barriers
No. of competitors
Market growth
Switching costs
Levels of product
differentiation
Substitutes &
Complements
No. of customers
Backward/forward integration
Switching costs
Fragmentation of buyers
Buyers
Switching costs
No. of buyers
Fragmentation of buyers
Availability of substitutes
Understanding the industry dynamics
New Entrants
Brand loyalty
Government legislation
High capital investments
Intellectual property rights
and patents
Minimum efficient scale
Restricted distribution
channels
Suppliers
High Bargaining Power
Domination of few large
suppliers
High switching costs
No substitutes
Low Bargaining Power
Low switching costs
High no. of suppliers
Substitutes availability
In-Closing
Carry forwards
Connection between decisions lies
not in what, rather in how you
decide
ProACT The eight keys to decision
making emphasizing proactiveness
Frameworks provide basis to
evaluate alternatives and expansive
thinking
Porters 5 Forces
Next Session and
Pre-reads
Revision and Pop-Quiz
on Problem framing
How to define the
decision problem to
solve the right problem
HBP
The Framing Challenge:
What is the real
problem? HBP
Chapter 1 and 2 of
Smart Choices
Above and Beyond