Learning how to frame the problem

  • Tuesday, November 25, 2014 2:11pm
  • Business

I wrote a column in August that generated a lot of email. That column was about the three traits of a successful company, and what it takes to generate breakthrough growth.

Many of the emails I received had comments such as, “I understand the formula, but how do I solve my business problem.”

You spoke and I listened. This column is the first in a series of four about how to solve problems that are keeping your business from achieving breakthrough growth.

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Every business has challenges that keep them from achieving their growth goals. Most business problems fall in the categories of marketing (lead generation and sales), organization (structure and staff), finance (capital and cash flow) and operations (procedures and logistics.) Many companies have multiple challenges that need to be addressed.

Successful companies find and implement solutions to those challenges. An effective approach to solving problems used by business consulting firms involves a four step process: 1) framing the problem, 2) gathering the data, 3) interpreting the results, and 4) implementing the solution.

This first column in my series covers framing the problem.

The big consulting firms begin the problem solving process by framing the problem; and they do so in a structured, hypothesis-driven framework. This approach involves coming up with a hypothesis — as a solution to the problem — at the beginning of the process.

Coming up with a solution (hypothesis) at the beginning of the problem solving process may seem counterintuitive; however, it is remarkably effective and can save a considerable amount of time and money.

This is inductive reasoning, which involves coming up with a hypothesis based on observation and the information available, versus a deductive approach of researching every possible avenue.

Think about a maze game where you draw a line from the start to the finish.

However, by drawing your line from the finish to the start you’ll find it faster and easier because you don’t go down as many dead ends.

The same is true in solving a problem, when you start with the end (with a hypothesis or conclusion), you eliminate most of the dead ends.

The most common tool used by expert consultants is called an Issue Tree (also referred to as a Logic Tree).

An Issue Tree lays out the issue and sub issues in a visual progression of branch levels (Google “Issue Tree” for examples).

This first level of an Issue Tree is a problem statement formatted as a question, e.g. how do we increase gross margin on XYZ widget sales. The second level of the tree branches out to sub issues to the problem statement, e.g. branch one — reduce cost; branch two — increase price. Additional branches would sprout from the second level and continue until a logical conclusion is reached.

Essentially, an Issue Tree breaks down a problem into separate elements as a means of determining the root cause of the problem. In turn, it will make formulating an initial hypothesis a logical process.

After you have a hypothesis (solution to your problem), you’ll determine what data to gather. I’ll cover that process in next month’s column.

Be your own consultant and begin by framing the problem — create an Issue Tree and develop an initial hypothesis. Be sure to check back next month for the second step — gathering the data — in the business consulting problem solving process.

Andrew Ballard is the president of Marketing Solutions, a local agency specializing in growth strategies. For more information, call 425-337-1100 or go to www.mktg-solutions.com.

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