Session 3 - 21st October, 2013

8/12/2019 Session 3 - 21st October, 2013

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Session III

Business Problem Framing14th October, 2013

Business Problem Framing21st October, 2013


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Prioritize clearly what you want to change (Focus)11

Benchmark is only a reference but not a limit for excellence Blank sheet

approach22

Common vision of success commercially compelling (scientific + stretch)with complete leadership alignment

In God we trust, for everything else we need data! No gut feel!

33

55

Most of the answers lie within the organizationAll you need is a CATALYST

to unlock implicit wisdom Inclusive approach44

The Ten Commandments of successfulproblem solving


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No idea is a bad idea Build an idea forward and not kill it66

No holy cow Intellectual irreverence for status quo77

Integrated & syndicated approach

Its a process and not a project Race to perfection is never- ending

88

1010

Clearly baselined and rigorous benefit tracking99

The Ten Commandments of successfulproblem solving (Contd.)


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Frames determine both what we see and how weinterpret it

Decision

Making

Problem

Framing

Main theme Sub-theme

Problem framing is how the protagonists define problems by taking into

account other things such that- Give problem a meaning

- Suggest possible causes

- Point in the direction of potential remedies

Facts are interpreted from a particular view

Primary solutions are those that emanate from the past experiences

Effectiveness should be discovered in action or in low-cost tests or

diagnostics

Having a poor frame can result in:

- Prolonging the problem

- Expanding its negative consequences

- Creating new problems

- Increasing the costs of addressing the problem

- Wasting resources

- Decreasing the odds of a solution

Frame is a mental window through which we view a problem, a situation or an

opportunity

A correct frame takes you halfway to a good decision People try to frame the issue to suit personal agendas

Never accept initial frames, actively seek others

Look for bias and false assumptions in all frames


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Types of Alternatives

Alternatives

1. Process Alternatives It establishes a process to chose an option

E.g. Voting, Binding arbitration, Standardized test , sealed bids

and auctions

3. Informationgathering alternatives

Better information

makes better decisions

E.g. medical

diagnostics, prototype

for product, market

research

2. Win-win

Alternatives

Taking someone elses

approval for the

decision

Making someone elses

decision problem

alternatives combine

with your own is the key 4. Time buying alternatives

Deferring a decision to gather more data, better understand thedecision and performing complex analysis

Alternatives may disappear in the interim


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Alternatives are the raw material of decisionmaking

You can never chose an alternative you have notconsidered

BusinessasusualMany decisions

and problemsare similar tobefore, choosing

the samealternativebeckons as aneasy course

Results usuallyfrom lazinessand over-reliance onhabit

Fi

rstpossiblesolutionOnce you find a

solution, lookfather togenerate new

alternativesBeware of thedefaultalternative

OthersalternativesDo not get

boxed in andrather createfresh

alternativesthrough focusedthinkingcustomized toyourcircumstances

WaitingtoolongWaiting too long

can risk beingstuck withwhats left when

the choice isfinally made

The bestalternative maynot be available


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All about alternatives

Keys to generating better alternatives

Use your objective to

ask how

Do your own

thinking first

Create alternatives

first, evaluate them

later

Set high aspirations

Challenge constraints:Real constraint vs.

Assumed constraint

-Traditional practice is

assumed constraints

- if resulting

alternatives are

attractive enough, you

can devise ways tomake them feasible

Learn from

experience

Never stop looking

for alternatives

Ask for others

suggestions to get

additional

perspectives


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The Pareto principle (also known as the 8020 rule, the law of the

vital few, and the principle of factor sparsity) states that, for many

events, roughly 80% of the effects come from 20% of the causes. It

is a common rule of thumb in business; e.g., "80% of your sales

come from 20% of your clients".

The original observation was in connection with population and wealth.

Pareto noticed that 80% of Italy's land was owned by 20% of the

population.[4] He then carried out surveys on a variety of other countries

and found to his surprise that a similar distribution applied.

The Pareto Principle: 80/20 Rule


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In-Closing

Carry forwards

Ten commandments of problem

solving

Keys to generating betteralternatives

Paretos Principle

Chapter 4 of Smart Choices

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

Next Session and

Pre-reads

Group Presentation:

Airline Case

Chapter 1 to 4 of Smart

Choices

Documents

Session 3 - 21st October, 2013