Problems are at the center of what we do as a consultants especially in the role of a Business Analyst or Management Consultant. More importantly solving these problems for a client (internal or external); whether they are simple, small, large or complex; is the cornerstone of the value we bring to the client in every engagement.
Ignorance is Bliss, or Is It?
It has been true for me, as I am sure for a lot of you as consultants, that most of the time we are parachuted in a project where the client or most of the major stakeholders don’t even have an inkling of what they truly want from the project in question. At this stage you are none the wiser because you are in what experts call the 4th quadrant where you ‘Don’t know what you don’t know’.
At this stage the client, who by the way is looking over your shoulder and counting your hourly rate tick away, is leaning on you as the expert to solve his ‘problem’. A problem which isn’t even defined or structured at the moment, but nonetheless the client is looking for you to solve. Now that’s a tough order for any expert but especially in the initial discovery and scoping phase of a project where you start off in the 4th quadrant of Ignorance.
How you should ideally go about solving such a Problem is what I would like to discuss in this post.
The Problem Solving Process
There are many recommended frameworks and defined approaches to solving a probem, e.g.:
- APS (Applied Problem Solving)
- Eight Disciplines Problem Solving
- GROW model
- How to Solve It
- Kepner-Tregoe Problem Solving and Decision Making
- OODA loop(observe, orient, decide, and act)
- PDCA(plan–do–check–act)
- RPR Problem Diagnosis(rapid problem resolution)
- TRIZ(in Russian: Teoriya Resheniya Izobretatelskikh Zadatch, "theory of solving inventor's problems")
- A3 Problem Solving
But if you consider all these approaches then the underlining principles can be captured in the below diagram:
The above 5 basic steps in solving a problem (of any complexity) are:
- Defining and Identifying the Problem
- Understanding the Problem
- Generating Options
- Analyzing Risks
- Choosing a Solution
I would discuss these steps in more detail below along with some tools and frameworks relevant for each of these sections. These tools are in no way complete or exhaustive but are some of the most prominently used and can act as a starter guide for your problem solving journey. These tools can be summarized in this Sankey diagram below:
Defining & Identifying the Problem
The key to defining the problem is to make sure one is defining the real problem and not its symptoms. What prevents you from reaching your goal? The problem needs to be stated in broad terms since the exact problem may not be obvious because:
- Lack of information to define it
- Symptoms may be confused for underlying causes
After the problem have been defined and has been narrowed down to a root cause, one needs to identify what qualifies as success in solving the problem or in other words what “solving the problem” means. The tool most used for identifying success is Critical Success Factors (CSF) analysis. Critical success factors are the essential activity areas that must occur in order for a component of a project to be successful.
To determine your Critical Success Factors, you must first state your mission and your goal concerning solving the problem. Once complete, this will determine the CSFs through asking, “What is essential to achieve this goal?” After coming up with a list of answers, narrow it down to those elements critical to the solution of the problem. Before you can take these on, you will need first to identify metrics for each CSF and then communicate them to all team members.
So, you may use some of the below tools to help you with Defining the Problem you have at hand. For the sake of brevity I have kept the description only to the diagram for most of these tools description below:
5 WHY Analysis
Cause and Effect Analysis
Drill Down
- Reversal Take any part of the problem and reframe the problem from an opposite standpoint. You can reverse the basic concept, principles, physical elements, attributes, etc. For example “The room is dark. I am looking for ways to make it lighter. Instead of looking for ways of adding light, I look for ways of removing dark, for example by putting mirrors or white paint in darker corners.” This helps in simulating new thinking when you’re stuck in a rut.
The Kipling method or 5W1H
- Problem statement Stating the problem may seem obvious, yet many projects fail because the problem is either unclear or it is focused in the wrong place. If people have different opinions of what the problem really is, they will constantly diverge and never be able to find closure on a suitable solution.The way you state a problem is half the problem and half the solution. Once you have identified a good problem statement, sometimes the solution is so obvious that you need little, if any, creative thought afterwards.
CATWOE Analysis
Critical Success Factors
Understand the Problem
Form an understanding of the problem’s environment, which is crucial for understanding how the problem arose and how to solve the problem. While this process is sometimes intuitive for small problems, for larger problems, you may need a variety of tools including:
SWOT Analysis (literally Strengths, Weaknesses, Opportunities, and Threats) is a simple yet powerful tool that will help you to focus on the situation. By listing each of the items in these four categories for your problem, you can focus on strengths and seize opportunities while minimizing weaknesses and steering clear of threats.
Porter's Five Forces Porter's Five Forces of Competitive Position Analysis were developed in 1979 by Michael E Porter of Harvard Business School as a simple framework for assessing and evaluating the competitive strength and position of a business organization. This theory is based on the concept that there are five forces that determine the competitive intensity and attractiveness of a market. Porter’s five forces help to identify where power lies in a business situation. This is useful both in understanding the strength of an organization’s current competitive position, and the strength of a position that an organization may look to move into.
Strategic analysts often use Porter’s five forces to understand whether new products or services are potentially profitable. By understanding where power lies, the theory can also be used to identify areas of strength, to improve weaknesses and to avoid mistakes.
PEST Analysis (Political, Economic, Sociocultural, and Technical) will determine the background against which the problem has occurred.
Value Chain Analysis – Value chain analyses determines where value lies in solving your problem. To do this analysis, first you will work to identify any activities undertaken to complete a project. Then, you will analyze each activity to determine what value it adds for your customer. Finally, you will determine whether changes should be made and plan to act upon these changes.
Flow Charts – By constructing a flow chart for a problematic process, you can identify the part in the process that causes the problem.
Swim Lane Diagrams – Swim Lane Diagrams allow you to map any interactions in processes and find where the problem is being caused in terms of interactions between departments and teams.
Generating Options
Once you have defined the problem, understood the critical factors for success to the problem, and determined environmental factors contributing to the genesis of the problem, you can generate alternative solutions. The two most popular tools for this are:
Brainstorming: This is a popular tool that focuses on throwing ideas onto the table without judging them
Reverse Brainstorming: This is closely related to the Brainstorming tool and focuses upon how to cause the problem rather than how to solve the problem; the idea being that if you can cause the problem, you can then figure out from there how to solve the problem.
Analyzing Risks
Analyze risks involved, assumptions that have been hidden, and any unforeseen impacts of each potential solution. This is a vital part of problem solving because sometimes solving one problem creates another. Before acting on any of your potential solutions, we need to test the ideas to determine what hides behind. Tools helpful for this step in the problem solving process include:
Risk Analysis – A good risk analysis will follow the formula, risk is equal to the probability of an event occurring multiplied by the cost of that event. Identify the different potential risks for your proposed solution then estimate the costs. Finally, you will need to determine how these risks will be managed and formulate a plan.
Failure Mode and Effects Analysis (FMEA) – Performing an FMEA analysis involves identifying the different ways your solution may fail to fix the problem.
Ladder of Influence – The ladder of influence helps you to check assumptions and ensure that any proposed solution is based on logic and sound data.
Impact Analysis – An impact analysis looks at possible consequences arising from a solution and it ensures that the change made will be positive. It helps consultants to spot unintended consequences before they occur.
Choosing a Solution
After all the analysis, brainstorming, and breaking things down, it is time to choose the best solution. Before you can make the decision, there are three different tools that can help you to make the right decision for the customer:
Cash Flow Forecasting – What is the expected financial impact from the proposed solution?
Cost/Benefit Analysis – What are the costs and benefits of each proposed solution? Which one will be most worth the time and money involved?
Decision Tree Analysis – This is a structure for laying out the different proposed solutions and investigating possible outcomes. It will help you effectively analyze the different risks and rewards associated with each of the options available.
Once you have chosen the best solution, draft a plan for putting it into effect, act on the plan, and carefully monitor progress towards the solution of the problem.
