7P13SR- ONE- SHEET5
MN7P13 Building Business Insights Workshop 1: Definition of the problem
Dr. Stephen Hills
Definition of the problem
The seven-steps process
How do you define a problem in a precise way to meet the decision maker’s needs?
How do you disaggregate the issues and develop hypotheses to be explored?
How do you prioritize what to do and what not to do?
How do you develop a workplan and assign analytical tasks?
How do you decide on the fact gathering and analysis to resolve the issues, while avoiding cognitive biases?
How do you go about synthesizing the findings to highlight insights?
How do you communicate them in a compelling way?
Step 1: Define the problem
A tool for defining problems: The problem definition worksheet
Decision makers
Success criteria
Key forces acting on the decision makers
Time frame for resolution
Boundaries/constraints
Accuracy necessary
1. Definition of the problem (5%, 400 words)
Describe the client for whom you are solving a problem, locating them within their industry. Identify the decision-maker within the client organisation who is the primary audience for your project report.
A short description of the situation that prevails for your client at the outset of problem solving (i.e., the state of affairs that sets up the problem). A set of observations or complications around the situation that creates the tension or dynamic that captures the problem (i.e., what changed or what went wrong that created the problem), which should be fully evidenced via data from your client.
In the form of an objective (e.g., to reclaim market share), define a specific and actionable problem (i.e., what are we trying to solve?).
Identify any boundaries and constraints of the project, considering the key forces (e.g., values) acting on decision-makers. Identify the criteria against which successful resolution to the problem can be measured and judged.
NB: You should use your problem definition worksheet as a basis for this section, but should not present your problem definition worksheet.
Describe the client for whom you are solving a problem, locating them within their industry. Identify the decision-maker within the client organisation who is the primary audience for your project report.
Who makes a good client?
A high profile organisation for whom there is a lot of readily available information.
An existing or former employer for whom you know a lot about their business.
An organistaion with whom you have personal connections, such as family or friends in senior positions, who are willing to share information with you.
Where can I find ideas for a client and business problem?
BBC News Business or business sections of other credible news outlets.
A short description of the situation that prevails for your client at the outset of problem solving (i.e., the state of affairs that sets up the problem). A set of observations or complications around the situation that creates the tension or dynamic that captures the problem (i.e., what changed or what went wrong that created the problem), which should be fully evidenced via data from your client.
What makes a good business problem?
“Problem solving is decision making when there is complexity and uncertainty that rules out obvious answers, and where there are consequences that make the work to get good answers worth it.”
Conn & McLean (2018)
A problem for which there is complexity and uncertainty that rules out obvious answers.
A problem for which, if solved, there are consequences that make the work to get good answers worth it.
Define problems with sufficient scope and at the highest-level
Narrowly scoped projects make for fast problem solving, but provide limited space for creative and novel solutions, employing only conventional conceptions of a problem.
Breakthrough ideas are more challenging with old models and old framing of problems.
Target your problem solving efforts at the highest level at which you can work, rather than single business units because what makes sense for single business unit may not make sense for the company overall.
WeWork Net Loss & Revenue
WeWork Costs
WeWork Capacity
WeWork Occupancy
WeWork Income per Desk
WeWork Breakeven Curve: Rate vs. Occupancy
Monthly desk rate would have to increase by 61% with occupancy remaining stable
With occupancy returning to pre-covid peak (+18%), monthly desk rate would need to rise by 37%
A further restructuring of costs
In the form of an objective (e.g., to reclaim market share), define a specific and actionable problem (i.e., what are we trying to solve?).
Characteristics of good problem statements
Outcomes focused: A clear statement solved, expressed in outcomes, not outputs.
Specific and measurable wherever possible.
Clearly time-bound.
Designed to explicitly address decision-maker values and boundaries, including the accuracy needed and the scale of aspirations.
Structured to allow sufficient scope for creativity and unexpected results— too narrowly scoped problems can artificially constrain solutions.
Solved at the highest level possible, meaning for the organisation as a whole, not just optimised for a part or a partial solution.
SMART - specific, measurable, action oriented, relevant, and timely.
SMART Goals - specific, measurable, achievable, relevant, and time-bound.
Identify any boundaries and constraints of the project, considering the key forces (e.g., values) acting on decision-makers. Identify the criteria against which successful resolution to the problem can be measured and judged.
Problem Definition
Crystal clear definition of the problem you are solving is essential. A quote from Einstein:
“If I had an hour to solve a problem, I'd spend 55 minutes thinking about the problem and five minutes thinking about solutions.”
Einstein believed the quality of the solution you generate is in direct proportion to your ability to identify the problem you hope to solve.
You need to be very clear about the boundaries of the problem
the criteria for success
the time frame
The level of accuracy required.
Pitfalls and common mistakes
Weak problem statements: Vague problem statements that are not specific in terms of:
Establishing what is required to make a decision on solving the problem
The action that will follow the problem being solved
Constraints of the problem-solving
Time frame and level of accuracy required for the problem to be solved
Case: Reversing the decline in Wild Pacific Salmon
Reversing the decline in Wild Pacific Salmon: The Client
Wild Atlantic Salmon had seen huge declines from mismanagement that caused large-scale ecosystem harm and community economic losses.
Wild Pacific Salmon now under pressure from human development in land use and fisheries management approaches that negatively affect salmon numbers and salmon habitats.
Importance: Wild Pacific Salmon are an apex species critical element in the northern rainforest ecosystems, a substantial biomass in their own rights, which have a massive impact of freshwater and marine ecosystems.
The client were a new foundation committed to a long-term model of philanthropy, focusing and funding a few initiatives fitting the following criteria:
Initiatives with measurable outcomes.
Initiative that are important and really matter.
Initiatives where the foundation’s unique contribution mattered.
Initiatives that over time would contribute to a portfolio effect – building off and supporting each other.
The project team could have up to 15 years to work on the problem with substantial financial resources.
Reversing the decline in Wild Pacific Salmon: Problem Constraints
Quick results.
Measurable ecosystem-level outcome improvements over time.
Grassroots advocacy campaigns and large-scale direct policy efforts were undesirable and, therefore, off limit.
Problem Definition Worksheet Example
Counting fish: Evolution of the problem statement
The foundation was committed to initiatives with measurable outcomes, which it was initially felt fit with tackling the declining number of Wild Pacific Salmon.
However, there are five different species in several different regions and some species are doing well in some places, others not so well.
Overall numbers go up and down throughout the year due to ocean conditions.
It is highly challenging to measure the number of Wild Pacific Salmon and to determine the impact of an initiative to reverse the decline of Wild Pacific Salmon.
However, the functioning of the North Pacific Salmon ecosystem is more measurable – looking at their food availability and habitat.
As such, the problem statement evolved to reflect this.
Problem Statement Evolution
Conclusions
Conclusions
Defining the problem well is the starting point for great problem solving because a well-defined problem is a problem half solved.
Problem definition requires understanding the boundaries of the problem, the timeframe for solution, the accuracy required and any other forces affecting the decision.
Take an opposing view to test the robustness of the problem statement.
Bring creativity into problem definition by reframing the problem.
Sharpen your problem statement as you learn more about the problem.