Analytical ThinkingAnalytical Thinking

Analytical ThinkingAnalytical Thinking

Divergent Convergent

Problem Solving Problem Solving

Divergence and Convergence•Generate/eliminate•15%

Analytical Thinking - A Scientific Approach to Problem SolvingAnalytical Thinking - A Scientific Approach to Problem Solving

Problem

Hypothesis

FactsAnalysis

Solution

Analytical Thinking - A Scientific Approach to Problem SolvingAnalytical Thinking - A Scientific Approach to Problem Solving

Problem

Hypothesis

FactsAnalysis

Solution

Problem DefinitionProblem Definition

• A problem becomes known when someone notices a discrepancy between:– the way things are and– the way things ought to be

IS OUGHT TO BE

Analytical Thinking – An ExerciseAnalytical Thinking – An Exercise

• Develop a research plan for solving Toronto’s traffic problem by completing the following steps:

1. Define the problem

Problem DefinitionProblem Definition

• How do organizations find discrepancies?

Problem DefinitionProblem Definition

• Where/how can you find discrepancies?– Performance reports

• Compare performance against goals and objectives

– Benchmarking studies• Compare performance against competitors or other industries

– SWOT analysis• What are we good at?• What is the environment telling us?

– Complaints• What are dissatisfied customers telling us?

– Surveys• What are potential customers telling us?

– LISTENING or SCANNING

Problem Definition – Digging DeeperProblem Definition – Digging Deeper

• What is the underlying problem?

Root Cause Analysis Technique - Five Whys

Employee Employee turnover rate turnover rate

has been has been increasing increasing

Root Cause Analysis Technique - Five Whys

Why?Why? Why?Why? Why?Why? Why?Why? Why?Why?

Employee Employee turnover rate turnover rate

has been has been increasing increasing

Root Cause Analysis Technique - Five Whys

Why?Why? Why?Why? Why?Why? Why?Why? Why?Why?

Employees are leaving for other

jobs

Employee Employee turnover rate turnover rate

has been has been increasing increasing

Root Cause Analysis Technique - Five Whys

Why?Why? Why?Why? Why?Why? Why?Why? Why?Why?

Employees are leaving for other

jobs

Employees are not satisfied

Employee Employee turnover rate turnover rate

has been has been increasing increasing

Root Cause Analysis Technique - Five Whys

Why?Why? Why?Why? Why?Why? Why?Why? Why?Why?

Employees are leaving for other

jobs

Employees are not satisfied

Employees feel that they are underpaid

Employee Employee turnover rate turnover rate

has been has been increasing increasing

Root Cause Analysis Technique - Five Whys

Why?Why? Why?Why? Why?Why? Why?Why? Why?Why?

Employees are leaving for other

jobs

Employees are not satisfied

Employees feel that they are underpaid

Other employers are paying higher

salaries

Employee Employee turnover rate turnover rate

has been has been increasing increasing

Root Cause Analysis Technique - Five Whys

Why?Why? Why?Why? Why?Why? Why?Why? Why?Why?

Employees are leaving for other

jobs

Employees are not satisfied

Employees feel that they are underpaid

Other employers are paying higher

salaries

Demand for such employees has increased in the

market

Employee Employee turnover rate turnover rate

has been has been increasing increasing

Analytical Thinking - A Scientific Approach to Problem SolvingAnalytical Thinking - A Scientific Approach to Problem Solving

Problem

Hypothesis

FactsAnalysis

Solution

“The consulting process revolves around developing and testing hypotheses.”

Graeme DeansPartner, SECOR Group

Analytical Thinking – An ExerciseAnalytical Thinking – An Exercise

• Develop a research plan for solving Toronto’s traffic problem by completing the following steps:

1. Define the problem

2. Develop a set of hypotheses

What is an Hypothesis?What is an Hypothesis?

What is an Hypothesis?What is an Hypothesis?

• Not just an educated guess

What is an Hypothesis?What is an Hypothesis?

• Not just an educated guess

• A specific, testable, and tentative statement that proposes a possible explanation to some phenomenon or event– Open to validation or refutation

“The consulting process revolves around developing and testing hypotheses.”

Graeme DeansPartner, SECOR Group

Analytical Thinking - A Scientific Approach to Problem SolvingAnalytical Thinking - A Scientific Approach to Problem Solving

Problem

Hypothesis

FactsAnalysis

Solution

Application: Toronto TrafficApplication: Toronto Traffic

• What would your research plans look like?

– What are the key questions you want to answer?– What type of information do you need to answer

them?

– How will you study them?

Analytical Thinking - A Scientific Approach to Problem SolvingAnalytical Thinking - A Scientific Approach to Problem Solving

Problem

Hypothesis

FactsAnalysis

Solution

Conducting the AnalysisConducting the Analysis

• Purpose: Testing the hypotheses

• “Making sense" of information collected– Statistical analysis– Graphical analysis– Content analysis– …

• Based on the data collected, what are the answers to the questions posed?

Analytical Thinking - A Scientific Approach to Problem SolvingAnalytical Thinking - A Scientific Approach to Problem Solving

Problem

Hypothesis

FactsAnalysis

Solution

SolutionsSolutions

• Choose the solution with the greatest impact on the problem– 15% principle!

• Keys– Credibility

• Solutions require support from your previous analysis

– Communication• Build support and buy-in• This is a political process!

– Experimentation• Test your solutions

Solutions – Key MessagesSolutions – Key MessagesSolutions – Key MessagesSolutions – Key Messages

• 100% pre-packaged solutions don’t exist

• No solution is guaranteed– Implementation matters!

• Plan• Set milestones• Develop performance measures

– Be willing to revisit your requirements

• Solutions don’t work by themselves– You need to develop buy-in and commitment