7-step approach to problem solving - MIT Global Startup Labs

1 problem solving Grand Slam: 7 Steps to Master Any Industry, Any problem , Every Project Summer 2013. The 7-Steps to master problem solving Weekly cycle 1 3 5 7. Write Gather Data Define and Analyse Build Storyline and problem Critically Commitment Ghost pack 2 4 6. Build Issue Develop Synthesize Tree Workplan and So What problem Break a Write your best A workplan is Be hypothesis Drive to end of Follow a statements problem into version of the not just a Gantt and end- week answer Communication should component answer to the chart, it must product Tool #1: Plan (T-5, T-2, commence with parts so that project state the: oriented Employ etc).

2 A question or a problems can STORYLINE Issue Start with order Situation- Validate, firm hypothesis be divided and Develop ghost Hypotheses of magnitude Observation- validate, Be specific, allocated pack that Analysis Porpoise Implication validate close actionable and The parts supports this (frameworks, between framework to your enemies focus on what should be MECE Storyline process etc) hypothesis and Tool #2: Have the extra the decision Do it as a team, Prioritise key Sources data Follow pyramid page in your maker needs to share with issues and Who is Keep the storyline back pocket move forward Experts and eliminate non- responsible analyses simple structure client to get essential issues Timing Be flexible in Pass the 3 So input and End product the face of new Whats alignment Review cycles data Be creative Engage Clients, Stakeholders & Experts 7-step approach to problem solving 2.

3 Weekly cycle 1 3 5 7. Gather Prioritise & Data & Build Define Write Analyse Commitme problem 2 Ghostpack 4 Critically 6 nt Why hypothesis-based approach ? Build Issue Tree Develop Workplan Synthesize & Iterate Deductive Analysis approach (found in most client organisations). Conclusions &. Extensive Data Collection Data Analysis Recommendations 1. 2. Inductive Analysis approach (used in Phase 1). Conclusions &. Hypotheses Analysis Results T/F Speed, Recommendations Areas for Use a range of specific Effort, Risk &. improvements diagnostics to test 1. Stakeholder could be: hypotheses Engagement 2.

4 Time 7-step approach to problem solving 3. Weekly cycle 1 3 5 7. Gather Prioritise & Data & Build Define Write Analyse Commitme problem 2 Ghostpack 4 Critically 6 nt Define problem Build Issue Tree Develop Workplan Synthesize & Iterate Evaluation X bank is losing money on broker introduced business and Statement of fact needs a plan to fix it How should X bank restructure its broker relationships to Not disputable and too make better returns general What set and sequence of initiatives should X bank implement to cement its more profitable broker relationships and to change the laws of remunerating the larger number

5 Specific, actionable of unprofitable relationships? 7-step approach to problem solving 4. Gaining an accurate understanding of the problem is the first priority 7-step approach to problem solving 5. Clear documentation of the problem is equally important 7-step approach to problem solving 6. Weekly cycle 1 3 5 7. Gather Prioritise & Data & Build Define Write Analyse Commitme problem 2 Ghostpack 4 Critically 6 nt Build the logic/issue tree Build Issue Tree Develop Workplan Synthesize & Iterate Why use logic or issue trees? Logic/Issue Tree 1. To break a problem into component parts so that: Sub-issue problem solving work can be divided into Issues / intellectually manageable pieces Hypothesis #1.

6 Priorities can be set between the parts Sub-issue Responsibilities can be allocated to individuals 2. To ensure that the integrity of the problem Sub-issue Issues / solving is maintained problem Statement Hypothesis solving the parts will really solve the #2 problem Sub-issue The parts are mutually exclusive and collectively exhaustive (ie. No overlaps, Sub-issue no gaps). Issues /. 3. To build a common understanding within the Hypothesis #3 team of the problem solving framework Sub-issue 4. To help focus use of organising frameworks and theories 7-step approach to problem solving 7.

7 Weekly cycle 1 3 5 7. Gather Prioritise & Data & Build Define Write Analyse Commitme problem 2 Ghostpack 4 Critically 6 nt Three types of logic/issue tree Build Issue Tree Develop Workplan Synthesize & Iterate Elements Type of Tree Description When to Use in Splits Deductive Starts with problem definition Actions, Early on, when you and divides it into components assertions, don't know much questions, OR. categories When mathematical completeness is important (eg. ROIC Trees). Hypothesis Driven Postulates a solution hypothesis Reasons / At any point in the and develops a necessary and Questions process sufficient rationale to validate or disprove it Issue Map Phrases key issues so that they Questions Use issue maps to can be answered yes or no, and frame options, sequence them in a logical order usually later in the showing the dependent action process 7-step approach to problem solving 8.

8 Weekly cycle 1 3 5 7. Gather Prioritise & Data & Build Define Write Analyse Commitme problem 2 Ghostpack 4 Critically 6 nt There are many ways to disaggregate Build Issue Tree Develop Workplan Synthesize & Iterate a problem Process Prepare Get Lay Flow-Out Land Materials Bricks Horizontal Characteristics Suitable bricks Properly mixed mortar Vertical Criteria Characteristics Skilled labour Good weather 7-step approach to problem solving 9. Weekly cycle 1 3 5 7. Gather Prioritise & Data & Build Define Write Analyse Commitme problem 2 Ghostpack 4 Critically 6 nt Logic tree tips Build Issue Tree Develop Workplan Synthesize & Iterate Principle Why Use your whole team, not lone wolf approach Rough and tumble hypothesis sessions tap everyone's creativity, tend to get better answers and are fun If stuck, try building them backward (from the twigs') in It is sometimes easier to think up sub-issues and addition to forward (from the trunk'')

9 Analysis and then to group them, than to work linearly Try multiple trees and constantly update and revise Different trees provide new perspectives on the problem Use frameworks to guide your questions Leverages previous experience Rules to follow How to get our thinking going Hypotheses are statements that: What is the issue? What is not working? x is not identify a client organisation's weakness, gap or optimal . opportunity Where is the process broken? we believe are likely to be true are (sometimes) based on our knowledge of the client's industry What do you think is causing the problem ?

10 What are the key drivers can be validated or refuted by analysis during the Phase 1 due to . of the issue? if validated, are likely to represent a significant business case element can be translated into project streams for Phase 2 What is the effect? resulting Why do we care? in . Where is the opportunity? 7-step approach to problem solving 10. Weekly cycle 1 3 5 7. Gather Prioritise & Data & Build Define Write Analyse Commitme problem 2 Ghostpack 4 Critically 6 nt Create a ghost pack Build Issue Tree Develop Workplan Synthesize & Iterate Headline (top line on each powerpoint slide) Content (of each slide).