Mind Tools - Problem Solving

This section of mindtools offers an array of mechanisms to gain a different perspective on a problem or otherwise explore the information in order to both better refine the problem and to potentially suggest a solution.

Appreciation

Use: extract maximum information from facts.

1. Start with a fact
2. Ask 'So what' successively until you reach all possible inferences

5 Whys

Use: Getting to the root of the problem

1. Start with a problem
2. Ask 'Why' and 'What caused this?' five times

Cause and Effect Diagrams - Also Called Fishbone

Use: Think through causes thoroughly -- basically brainstorming plus concept mapping

1. Identify the problem
2. Work out the major factors involved
3. Identify possible causes
4. Analyze diagram

Affinity Diagrams

Use: organizing ideas into themes. Couple with brainstorming.

1. Describe the problem or issue
2. generate ideas by brainstorming, writing each idea on a separate sticky note
   • emphasize volume
   • suspend judgment
   • piggyback on other ideas
3. Sort ideas into themes (which ideas are similar? is this idea connected to others?)
4. Create consensus
   • discuss meaning of groups
   • create new groups if items don't fit
   • duplicate ideas if they fit in multiple categories
   • not too many themes (5 to 9)
5. Create theme cards
   • description for the relationship/theme (short, 3-5 words)
   • place at the top
   • super/sub heads as needed
6. Group and regroup until you have a hierarchical structure

Appreciative Inquiry

Use: to solve problems by focusing on what's going right

• appreciation -- recognize/value the positive
• inquiry -- explore/discover
• Use the '4D approach'
  • Define the problem
  • Discovery Phase
  • Dream Phase
  • Design Phase
  • Deliver/Destiny Phase

Flow Charts

Use: to define, analyze, understand, communicate process
Usual approach is ovals at start/end, rectangles at actions, diamonds at decisions.

Risk Analysis/Risk Management

Use: to evaluate/manage risks

• Identify threats
• Estimate risk
• Manage risk
• Review

SWOT Analysis

Use: discover new opportunities. Manage/eliminate threats

PEST Analysis

Use: understand 'big picture' forces of change

• Political
• Economic
• Socio-Cultural
• Technological

Other variants incorporate legal, environmental, international, demographic elements.

The Marketing Mix and 4Ps

• right Product at the right Place at the right Price at the right Promotion (time)
• some incorporate People, Processes, and Physical layout
• 4Cs takes the buyers perspective -- Customer, Cost, Convenience, Communication

Ansoff Matrix

Use: understand risk of different options.
Corporation example -- X-axis is products & services, Y-axis is markets

New	Market Development	Diversification
Existing	Market Penetration	Product Development
	Existing	New

Career example -- X-axis is functional skills, Y-axis is industries

New	Industry Transfer	Retraining
Existing	Expert Development	Functional Skills Development
	Existing	New

Some analysts place an additional row/column between existing and new -- 'Expanded' -- to make this a 9-box.

Boston Matrix, AKA BCG Matrix

Use to focus on areas of greatest returns
Market share on the x-axis, market growth on the y-axis.

High	Question Marks	Stars
Low	Dogs	Cash Cows
	Low	High

Porter's Five Forces

Use: assess the balance of power

• Supplier Power
• Buyer Power
• Competitive Rivalry
• Threat of Substitution
• Threat of New Entry

Diagram is drawn with four arrows facing inward and rivalry in a central circle.

Core Competence Analysis

Use: to focus energy on most important items

• Brainstorm factors important to your clients
• Brainstorm a list of things done well.
• Assess if they're truly core competencies
  • Relevant
  • Difficult to Imitate
  • Broadly Applicable
• Screen client factors to see if we can develop them
• Compare two lists
• Identify items that are costly/time-consuming -- do they contribute to core competencies?

USP Analysis

Use: to identify your competitive edge

• Understand what customers value
• Rank yourself and your competitors by these criteria
• Identify where you rank well
• Preserve and use your USP

Critical success factors

• Identify objectives of business
• Identify what factors lead to those objectives
• Establish goals that measure progress toward objectives/emphasize those factors

McKinsey 7S Framework

• Strategy
• Structure
• Systems
• Shared Values
• Skills
• Style
• Staff

Using the Greiner Curve

Use: understand and prepare for the crises that come with growth

1. Growth through Creativity
   • Leadership Crisis
2. Growth Through Direction
   • Autonomy Crisis
3. Growth through delegation
   • Control Crisis
4. Growth through co-ordination
   • Red Tape Crisis
5. Growth through collaboration
   • Growth Crisis
6. Growth through alliances