Business Problem Framing

8/12/2019 Business Problem Framing

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We have started a journey together.

Business Problem Framing14th October, 2013


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"We know what happens to people who

stay in the middle of the road.

They get run down."


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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


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Hypothesis

Data-driven

Change-manageme

nt

Objectives

Decisions

Sustainable

Approach

Priority

UniqueSolutions

Inter-dependent

Decisions

StakeholderInclusive

ImplementationSuccess

Subjective

Root-cause

Assumptions

Variables

Procrastination

Alternatives

Trade-offs

No -brainer

Risk Tolerance

Trends Uncertainties

Linked Decisions

Problem framing is a function of multiple facets


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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


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A decision-making approach that addresses these criteria can be practiced on decisions major and minor

Identifies change-

managementrequirements

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 thefollowing criteria


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Eight Elements

Problem

Alternatives

Objective

Linked Decisions

Tradeoffs Risk Tolerance

UncertaintyConsequences

First five form the core of ProACTapproach

Help clarify decisions in evolvingenvironments

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


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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 costsNo. 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 scaleRestricted 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


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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

Documents

Business Problem Framing