issue based work planning and hypothesis problem solving
DESCRIPTION
DESCRIPTION The principles behind Issue-Based Work Planning are a powerful concept for use on all business issues and help to align the approach with the overriding issues, rather than the traditional process structure. They help ensure that all relevant project issues are covered and to arrive at the most robust and creative answer, by linking analyses and end products to a methodical analysis of key issues. This powerpoint is suitable for anyone who is looking for a robust methodology to solve the most complex of issues.TRANSCRIPT
Issue-Based Work Planning and Hypothesis Problem
Solving
2
Issues, rather than tasks or analysis, drive the process
INTRO
Problem Definition
Issue Tree Creation
Hypothesis Generation
Defining Analysis and Identifying Data Sources
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3
An Issue-Based Work Planning is developed in five Steps
INTRO
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4
The Situation and Complication set the stage for the Overriding Question
DEFINE THE PROBLEM 1
Overriding Question
Situation
Complication
• ...
• But ...• Meanwhile, ...
• ... ?
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5
Starting from the overriding question, develop an issue tree
DEVELOP AN ISSUE TREE
Can US Utility keep control of its future into the medium term?
Overriding Question
First Level Issue — Example
Can US Utility salvage its share price?
Are there ways of avoiding being taken over if share price
cannot be salvaged?
2
Brainstorm first level issues and chart them on an issue tree
Issues and sub-issues should • Relate directly to the overriding
question • Fall within the scope of the overriding
question• Be mutually exclusive and
collectively exhaustive (MECE)
Example
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6
There are three generic types of issue trees that could be constructed
DEVELOP AN ISSUE TREE
Starts with problem definition and divides it into components
Description
Actions, assertions, questions,
categories
Elements in splits
Early on, when you don't know much
When to Use
Deductive
Postulates a hypothesis and
develops a necessary and
sufficient rationale to validate or
disprove it
Reasons/questions At any point in the process
Hypothesis driven
Phrases key issues so that they can be
answered yes or no, and sequence them in a logical
order showing the depending action
Questions Use issue maps to frame options,
usually later in the process
Issue Map
What/how
Reasons
?
Yes
No
2
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7
Repeat the exercise to brainstorm second level issues
DEVELOP AN ISSUE TREE
Can US Utility keep control of its future into
the medium term?
Overriding Question
First Level Issue
Can US Utility salvage its share
price?
Can US Utility create growth
options?
Can US Utility avoid being taken
over?
Can US Utility beat the cost base agreed with the Regulator?
Second Level Issues
Can US Utility divest and refocus?
Can US Utility grow organically?
Can US Utility grow by acquisition?
Can US Utility build scale quickly?
2
Example
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8
First Level Hypotheses - Impact on company’s share price would be:
First Level Issues
Second Level Issues
Use simple hypotheses to prune the issue tree
DEVELOP AN ISSUE TREE
Medium (regulator would respond after a delay)
Medium (the company could divest several divisions)
Large (Investors seek a credible US player in this sector)
Low (The company has shown low ability to handle acquisitions)
Medium (The company has shown some ability to grow organically)
Can it beat the cost base it has agreed with the regulator?
Can US Utility keep control of its future
into the medium term?
Can US Utility salvage its
share price?
Can US Utility avoid being taken over?
Can it grow by acquisition?
Can it build scale quickly?
Can it secure a place in the post-
consolidation industry line-up?
Can it convince investors?
Can it divest and refocus?
Can US Utility create growth
options?
Medium (The industry is predicted to find a stable equilibrium)
Are there targets to pursue?
Negative (Research warns of over-payment for targets; few opportunities)
2
Example
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9
Think about issue analysis as drilling for oil
DEVELOP AN ISSUE TREE
Surface Drilling
• Average effort
• Surface knowledge
• Fails to capture the deeper insights
• Heavy effort
• Time consuming
• Excess knowledge
• Blind alleys
• Much wasted effort
• Optimal effort
• Economy of knowledge
• Expertise
• Highest return on investment
Deep Drilling Informed Exploration
Impact of Pruning
2
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10
Good hypotheses measure up against the criteria
GENERATE HYPOTHESES
Is This Better?
• Does it address a single issue
• Is this an educated guess at the answer, or conclusion
• Is it testable: Can we prove or disprove it?
• Is it useful: Will it help solve the problem?
• Is it comprehensive: Have we covered all the angles?
The company can increase operational efficiency by 10% by
improving its purchasing practices
Third Level Issue
Hypothesis
Can the Utility
increase operational efficiency?
3
Example
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11
Specific Questions for Analysis
• What trends in operational efficiency are already present?
• What is the purchasing spend today?• What have been the recent trends in this?• What opportunities do e-auctions offer?• Would purchasing changes impact on quality?• Could new suppliers integrate with the other key
organisational initiative?
Can the Utility increase
operational efficiency?
The company can increase operational efficiency by 10% by
improving its purchasing practices
Third Level Issue
Hypothesis
Define the specific analysis needed to prove or disprove the hypothesis – analysis should seek to answer a very specific question
DEFINE ANALYSES AND DATA SOURCES 4
Example
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12
Data collection matrix and data collection grid - examples
DEFINE ANALYSES AND DATA SOURCES
Planning: Example of data collection grid
4
Example
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13
This is only a partial view of the full presentation. For further details and download please goto: www.straticx.com/store.html