key consulting skill #1 part 3 framing complex...
TRANSCRIPT
Key Consulting Skill #1 – Part 3
Framing Complex Problems Issues Analysis & Logic Trees
© K.E. Homa
Proprietary Material
Preliminary Discussion Draft Incomplete Without Extensive Oral Elaboration
Professor Ken Homa Georgetown University
5 Key Consulting Skills
1. Frame complex problems
2. Generate testable hypotheses
3. Gather and analyze facts efficiently
4. Craft creative, practical solutions
5. Syndicate support and mobilize
5 Key Consulting Skills
1. Frame complex problems
2. Generate testable hypotheses
3. Gather and analyze facts efficiently
4. Craft creative, practical solutions
5. Syndicate support and mobilize
1. Frame complex problems
5 Key Consulting Skills
5 Key Consulting Skills
1. Frame complex problems
• Grasp the context … quickly !
• Identify the key question
• Drill down to pivotal sub-issues
How to do it …
5 Key Consulting Skills
1. Frame complex problems
• Grasp the context … quickly !
• Identify the key question
• Drill down to pivotal sub-issues
How to do it …
Some General Principles …
1. Frame complex problems – Issues
When confronted with a complex, hard-to-solve
problem, break it down into a structured set of
simpler, easier-to-solve questions.
1. Frame complex problems – Issues
General Principle – Issue Analysis
When confronted with a complex, hard-to-solve
problem, break it down into a structured set of
simpler, easier-to-solve questions.
Generally called “decomposing a problem”.
1. Frame complex problems – Issues
General Principle – Issue Analysis
When confronted with a complex, hard-to-solve
problem, break it down into a structured set of
simpler, easier-to-solve questions.
Consultants call this process “issue analysis”.
1. Frame complex problems – Issues
General Principle – Issue Analysis
When confronted with a complex, hard-to-solve
problem, break it down into a structured set of
simpler, easier-to-solve questions.
Consultants call this process “issue analysis”.
An issue analysis identifies the specific questions
that need to be resolved to answer the case’s key
question (from the SCQ Analysis)*
1. Frame complex problems – Issues
General Principle – Issue Analysis
* For details, see: Framing Complex Problems Part 2 - SCQ Analysis
When drilling down, consultants try to define
issues at a parallel level of abstraction.
1. Frame complex problems – Issues
General Principle – Parallel Structure
When drilling down, consultants try to define
issues at a parallel level of abstraction.
That is, start at a high, panoramic level of
abstraction across the entirety of a problem…
… and then go progressively deeper and get
more granular across all pivotal issues.
1. Frame complex problems – Issues
General Principle – Parallel Structure
When drilling down, consultants try to define
issues at a parallel level of abstraction.
That is, start at a high, panoramic level of
abstraction across the entirety of a problem…
… and then go progressively deeper and get
more granular across all pivotal issues.
The process is called “analytical zooming” (also called “zooming in” or “drilling down”)
1. Frame complex problems – Issues
General Principle – Parallel Structure
Start at a high level of abstraction, then get
progressively more granular
Keep thinking at the same level of granularity
across all issues, i.e. maintain a parallel
structure
Eventually, go as deep into the details as is
necessary for the most pivotal issues
1. Frame complex problems – Issues
General Process – Analytical Zooming
Analytical Zooming Some Analogies
1. State
2. City
3. Block
4. Street
5. House
6. Room
7. Chair
1. Panorama
2. Area
3. Surface
4. Shallow water
5. Deep water
6. Ocean bottom
7. Sub-strata
1. Fly over in an airplane
2. Hover in a helicopter
3. Skim surface in a boat
4. Submerge … snorkel
5. Dive deep … scuba
6. View bottom w/ submarine
7. Penetrate with drill
Google Maps Ocean View Ocean Exploration
In consultant-speak, the set of identified issues (or
sub-issues) should be MECE … mutually exclusive
(no overlaps) and collectively exhaustive (no
omissions).
1. Frame complex problems – Issues
General Principle - MECE
In consultant-speak, the set of identified issues (or
sub-issues) should be MECE … mutually exclusive
(no overlaps) and collectively exhaustive (no
omissions).
That is, there should be no redundancies that might
result in duplicated analytical effort …
1. Frame complex problems – Issues
General Principle - MECE
In consultant-speak, the set of identified issues (or
sub-issues) should be MECE … mutually exclusive
(no overlaps) and collectively exhaustive (no
omissions).
That is, there should be no redundancies that might
result in duplicated analytical effort …
… and, the set of issues should be sufficiently
comprehensive that answering them do, in fact,
answer the bigger question.
1. Frame complex problems – Issues
General Principle - MECE
An alternative to MECE …
1. Frame complex problems – Issues
MECE
Oft repeated consulting mantra.
MECE
Mutually Exclusive
No overlaps
MECE
Mutually Exclusive Collectively Exhaustive
No overlaps No omissions
Consider a more practical,
more real world variant …
MECE MICS
MICS
Mutually Independent
MICS
Mutually Independent
Minimized overlaps
Think: analytical tasks
MICS
Mutually Independent
Assign “chunks” of work with
no duplicated (wasted) effort.
Minimized overlaps
Think: analytical tasks
MICS
Mutually Independent Collectively Sufficient
Minimized overlaps
Think: analytical tasks
MICS
Mutually Independent Collectively Sufficient
If these questions are answered,
will the key question, in fact, be
answered?
Minimized overlaps
Think: analytical tasks
Warning • MECE is common consulting jargon
• MICS is a “Homa-ism’ that reflects
personal observations
• Both ME vs. MI and CE vs. CS are
conceptually debatable :
– “Doesn’t MI tolerate overlap among issues?”
Answer: Yes -- but it’s impossible to eliminate all overlaps
– “Doesn’t CS allow some issues to be ignored?”
Answer: Yes -- but only ones that don’t matter
Bottom line: It’s practical to think MICS, but
always speak MECE (especially in interviews)
Summary: Key Concepts …
1. Frame complex problems – Issues
• Issues Analysis … break a complex problem into a related
set of simpler questions (i.e. decompose the problem)
• Analytical Zooming (a.k.a. “drilling down”, “zooming in”)
start at a high level of abstraction, then get progressively
more granular across the range of identified issues
• Parallel Structure … think about issues at the same level
of abstraction until pivotal issues are identified … then go as
deep as necessary on them
• MECE … identify issues that are mutually exclusive (no
overlaps) and collectively exhaustive (no omissions).
1. Frame complex problems – Issues
Key Concepts
So, how to do an Issues Analysis?
1. Frame complex problems – Issues
A fundamental analytical method:
The 5 Whys
1. Frame complex problems – Issues
• Generally credited to Toyota … part of their industry-leading
Total Quality (later 6-Sigma) initiatives
1. Frame complex problems – Issues
Analytical Method - The 5 Whys
• Generally credited to Toyota … part of their industry-leading
Total Quality (later 6-Sigma) initiatives
• A sequential question-asking technique used to drill down
on the cause-and-effect relationships underlying a particular
problem.
1. Frame complex problems – Issues
Analytical Method - The 5 Whys
• Generally credited to Toyota … part of their industry-leading
Total Quality (later 6-Sigma) initiatives
• A sequential question-asking technique used to drill down
on the cause-and-effect relationships underlying a particular
problem.
• Simply stated: Keep asking “why?” until the stream of
thinking is exhausted … then ask “why?” one more time.
1. Frame complex problems – Issues
Analytical Method - The 5 Whys
• Generally credited to Toyota … part of their industry-leading
Total Quality (later 6-Sigma) initiatives
• A sequential question-asking technique used to drill down
on the cause-and-effect relationships underlying a particular
problem.
• Simply stated: Keep asking “why?” until the stream of
thinking is exhausted … then ask “why?” one more time.
• Conventional wisdom is that 5 is the magic number of
drill-downs typically required to get to the root of a complex
problem.
1. Frame complex problems – Issues
Analytical Method - The 5 Whys
Examples =>
Problem: The car won’t start.
Why? - The battery is dead.
Why? - The alternator is not functioning.
Why? - The alternator belt has broken.
Why? - The alternator belt was well beyond its
useful service life and not replaced.
Why? - The vehicle was not maintained according
to the recommended service schedule.
Why? - Replacement parts are not available because
the car is too old (root cause)
Solution - Find a creative source for replacement parts.
Salvage from junk yard? Make one? Work-around?
1. Frame complex problems – Issues
Analytical Method - The 5 Whys - Example
Source
1. Frame complex problems – Issues
Analytical Method - The 5 Whys - Example
1. Frame complex problems – Issues
Analytical Method - The 5 Whys - Example
Source Karn Bulsuk
1. Frame complex problems – Issues
Analytical Method - The 5 Whys - Example
© Karn G. Bulsuk click for a detailed walk-thru of this example
The 5 Whys – Analytical Tools …
1. Frame complex problems – Issues
Method: Spreadsheet Tables
1. Frame complex problems – Issues
1. Frame complex problems – Issues
Analytical Method - The 5 Whys - Tools
© Karn G. Bulsuk
5 Whys Spreadsheet
• Detailed Walk-thru of prior example Discussion Spreadsheet
• Excel Template for doing a 5 Whys Spreadsheet
Method: Fishbone Diagram
1. Frame complex problems – Issues
• Originally developed by Kaoru Ishikawa to visualize the
causes of a specific problem
• Sometimes called an Ishikawa or Cause & Effect Diagram
• Used to examine why something happened or might
happen by breaking an issue into smaller, more easily
understandable categories.
• In essence, a visual representation of a 5 Whys Analysis
• Called Fishbone Diagrams because a completed diagram
ends up looking like a fish's skeleton
1. Frame complex problems – Issues
Analytical Method – Fishbone Diagram
Example => click for a walk-thru of
the Fishbone methodology
1. Frame complex problems – Issues
Analytical Method - The 5 Whys - Tools
© Karn G. Bulsuk
click for a walk-thru
of this example
5 Whys Fishbone
Enlarged view =>
5 Whys – Fishbone Diagram
Summary: 5 Whys & Fishbone Diagrams
1. Frame complex problems – Issues
• An sequential question-asking technique used to drill
down on the cause-and-effect relationships underlying a
particular problem.
1. Frame complex problems – Issues
Analytical Method - The 5 Whys
• An sequential question-asking technique used to drill
down on the cause-and-effect relationships underlying a
particular problem.
• Simply stated: Keep asking “why?” until the stream of
thinking is exhausted … then ask “why?” one more time.
1. Frame complex problems – Issues
Analytical Method - The 5 Whys
• An sequential question-asking technique used to drill
down on the cause-and-effect relationships underlying a
particular problem.
• Simply stated: Keep asking “why?” until the stream of
thinking is exhausted … then ask “why?” one more time.
• Two main analytical devices to facilitate:
– Spreadsheet Tables
– Fishbone Charts
1. Frame complex problems – Issues
Analytical Method - The 5 Whys
Analytical Method: Logic Trees
1. Frame complex problems – Issues
• Logic Trees are close cousins to Fishbone diagrams
… sometimes called Issue Trees or ROI Trees.
• Logic Trees are foundational to consulting:
“The most common tool McKinsey-ites use to break problems apart is the
logic tree, a hierarchical listing of all the components of a problem, starting
at the “20,000-foot view” and moving progressively downward.”
McKinsey Mind
• Sometimes, logic trees are explicitly documented in
writing or digitally … other times, they are just part of a
consultant’s mindset.
1. Frame complex problems – Issues
Analytical Method – Logic Trees
• Front-end of the problem solving process
• Systematic drill down from an “aggregate” Visual depiction of text outlines … with analytical rules
• Key factors, components & relationships Structuring Options: Parts, Cause & Effect, Groups
• Many variations … and permutations Descriptive …. what?
Diagnostic ..… why?
Prescriptive … how?
1. Frame complex problems – Issues
Analytical Method – Logic Trees
When using logic trees, the trick is finding
or crafting one that is applicable to the
specific situation …
1. Frame complex problems – Issues
Analytical Method – Logic Trees
The quintessential logic tree
is the ROI-Profitability Tree …
1. Frame complex problems – Issues
Analytical Method – Logic Trees
• Useful for analytically dissecting profitability
• Isolates key variables and specifies links
• Provides framework for financial modeling
• Many variations and permutations *
• Again, the trick is finding or crafting one that is
applicable to the specific situation
1. Frame complex problems – Issues
Analytical Method – ROI Trees
Basic ROI Tree=> * See FMC Toolkit: ROI Trees for
more information & examples
ROI
Profit
Investment
Revenue
Cost
Price
Volume
Var.Cost
Per Unit
Variable
Cost
Fixed
Cost
.
Capacity
Basic ROI Tree
Some variants of the
basic ROI Tree…
How can
Acme
increase
profits from
existing
business
lines?
From
Widgets
From
Thrummats
From
Grommets
Increase
Revenues
Decrease
Expenses
Decrease
raw
material
costs
Decrease
labor
costs
Decrease
overhead
costs
Negotiate wage concessions
Implement a labor-saving
production process
Which Product Lines?
How?
How?
How?
Negotiate higher productivity
quotas
Source: McKinsey Mind
ROI Tree Example
Profit Improvement
How can
Acme
increase
profits from
existing
business
lines?
From
Widgets
From
Thrummats
From
Grommets
Increase
Revenues
Decrease
Expenses
Decrease
raw
material
costs
Decrease
labor
costs
Decrease
overhead
costs
Negotiate wage concessions
Implement a labor-saving
production process
Which Product Lines?
How?
How?
How?
Negotiate higher productivity
quotas
Source: McKinsey Mind
ROI Tree Example
Profit Improvement
How can
Acme
increase
profits from
existing
business
lines?
From
Widgets
From
Thrummats
From
Grommets
Increase
Revenues
Decrease
Expenses
Decrease
raw
material
costs
Decrease
labor
costs
Decrease
overhead
costs
Negotiate wage concessions
Implement a labor-saving
production process
Which Product Lines?
How?
How?
How?
Negotiate higher productivity
quotas
Source: McKinsey Mind
ROI Tree Example
Profit Improvement
How can
Acme
increase
profits from
existing
business
lines?
From
Widgets
From
Thrummats
From
Grommets
Increase
Revenues
Decrease
Expenses
Decrease
raw
material
costs
Decrease
labor
costs
Decrease
overhead
costs
Negotiate wage concessions
Implement a labor-saving
production process
Which Product Lines?
How?
How?
How?
Negotiate higher productivity
quotas
Source: McKinsey Mind
ROI Tree Example
Profit Improvement
Let’s personalize an ROI Tree
to be sure it hits home…
Issue Tree Example
Saving Money
How? How?
. . .
How? How?
How can I have more money at the end of each month without incurring a debt?
Increase income
Reduce expenses
Receive a windfall
Receive more $ from investments
Receive more $ from work
Pay less for same amount of items
Buy less
Legally
Illegally
Work more hours
Make more per hour
Buy lower quality items
Shop around for specials
• Food • Clothing • Utensils • Entertainment • Travel • Other
Better paid industry
Higher job level
Additional job
Overtime
Win lottery
Inherit
Issue Tree Example
Saving Money
How? How?
. . .
How? How?
How can I have more money at the end of each month without incurring a debt?
Increase income
Reduce expenses
Receive a windfall
Receive more $ from investments
Receive more $ from work
Pay less for same amount of items
Buy less
Legally
Illegally
Work more hours
Make more per hour
Buy lower quality items
Shop around for specials
• Food • Clothing • Utensils • Entertainment • Travel • Other
Better paid industry
Higher job level
Additional job
Overtime
Win lottery
Inherit
Issue Tree Example
Saving Money
How? How?
. . .
How? How?
How can I have more money at the end of each month without incurring a debt?
Increase income
Reduce expenses
Receive a windfall
Receive more $ from investments
Receive more $ from work
Pay less for same amount of items
Buy less
Legally
Illegally
Work more hours
Make more per hour
Buy lower quality items
Shop around for specials
• Food • Clothing • Utensils • Entertainment • Travel • Other
Better paid industry
Higher job level
Additional job
Overtime
Win lottery
Inherit
Issue Tree Example
Saving Money
How? How?
. . .
How? How?
How can I have more money at the end of each month without incurring a debt?
Increase income
Reduce expenses
Receive a windfall
Receive more $ from investments
Receive more $ from work
Pay less for same amount of items
Buy less
Legally
Illegally
Work more hours
Make more per hour
Buy lower quality items
Shop around for specials
• Food • Clothing • Utensils • Entertainment • Travel • Other
Better paid industry
Higher job level
Additional job
Overtime
Win lottery
Inherit
Issue Tree Example
Saving Money
How? How?
. . .
How? How?
How can I have more money at the end of each month without incurring a debt?
Increase income
Reduce expenses
Receive a windfall
Receive more $ from investments
Receive more $ from work
Pay less for same amount of items
Buy less
Legally
Illegally
Work more hours
Make more per hour
Buy lower quality items
Shop around for specials
• Food • Clothing • Utensils • Entertainment • Travel • Other
Better paid industry
Higher job level
Additional job
Overtime
Win lottery
Inherit
Issue Tree Example
Saving Money
How? How?
. . .
How? How?
How can I have more money at the end of each month without incurring a debt?
Increase income
Reduce expenses
Receive a windfall
Receive more $ from investments
Receive more $ from work
Pay less for same amount of items
Buy less
Legally
Illegally
Work more hours
Make more per hour
Buy lower quality items
Shop around for specials
• Food • Clothing • Utensils • Entertainment • Travel • Other
Better paid industry
Higher job level
Additional job
Overtime
Win lottery
Inherit
Issue Tree Example
Saving Money
How? How?
. . .
How? How?
How can I have more money at the end of each month without incurring a debt?
Increase income
Reduce expenses
Receive a windfall
Receive more $ from investments
Receive more $ from work
Pay less for same amount of items
Buy less
Legally
Illegally
Work more hours
Make more per hour
Buy lower quality items
Shop around for specials
• Food • Clothing • Utensils • Entertainment • Travel • Other
Better paid industry
Higher job level
Additional job
Overtime
Win lottery
Inherit
Issue Tree Example
Saving Money
How? How?
. . .
How? How?
How can I have more money at the end of each month without incurring a debt?
Increase income
Reduce expenses
Receive a windfall
Receive more $ from investments
Receive more $ from work
Pay less for same amount of items
Buy less
Legally
Illegally
Work more hours
Make more per hour
Buy lower quality items
Shop around for specials
• Food • Clothing • Utensils • Entertainment • Travel • Other
Better paid industry
Higher job level
Additional job
Overtime
Win lottery
Inherit
Issue Tree Example
Saving Money
How? How?
. . .
How? How?
How can I have more money at the end of each month without incurring a debt?
Increase income
Reduce expenses
Receive a windfall
Receive more $ from investments
Receive more $ from work
Pay less for same amount of items
Buy less
Legally
Illegally
Work more hours
Make more per hour
Buy lower quality items
Shop around for specials
• Food • Clothing • Utensils • Entertainment • Travel • Other
Better paid industry
Higher job level
Additional job
Overtime
Win lottery
Inherit
.
Issue Tree Example
Saving Money
How? How?
. . .
How? How?
How can I have more money at the end of each month without incurring a debt?
Increase income
Reduce expenses
Receive a windfall
Receive more $ from investments
Receive more $ from work
Pay less for same amount of items
Buy less
Legally
Illegally
Work more hours
Make more per hour
Buy lower quality items
Shop around for specials
• Food • Clothing • Utensils • Entertainment • Travel • Other
Better paid industry
Higher job level
Additional job
Overtime
Win lottery
Inherit
Issue Trees address “how” questions,
Hypothesis Trees conjecture “why?”
General Principle
82
The best way for
me to have more
money at the end of
the month is to
spend less through
comparison
shopping
Why? Why?
Why? Which?
Comparison
shopping is
an interesting
opportunity
Changing
my lifestyle
is not an
option
Additional
investments
do not wipe
out savings
Savings
are feasible
To compensate for demanding workload, I need to invest
in weekly visits to the spa and the opera
My profession does not allow me to wear
lower quality clothes
To balance the junk food I eat during the week, I need at
least one three-course meal on the weekend
Savings in $
Opportunity cost of
additional time
taken up by comparison
shopping
New formats offer
same quality at
lower price
Key spending
categories have
competition in
new formats
Hypermarkets
Price Club
Home Depot
Auto mall
Hypthesis Tree Example
Saving Money
Logic Trees aren’t restricted to just
financial analyses … they’re also
used to structure strategic ideas.
General Principle
Source: Minto, Pyramid Principle
Logic Tree Example
Strategic Options
Source: Minto, Pyramid Principle
Logic Tree Example
Strategic Options
Source: Minto, Pyramid Principle
Logic Tree Example
Strategic Options
Source: Minto, Pyramid Principle
Logic Tree Example
Strategic Options
Source: Minto, Pyramid Principle
Logic Tree Example
Strategic Options
Another Strategic Logic Tree example:
Growing a business from its core …
Start with the first level:
‘adjacency categories”
Then expand each adjacency
category into sub-categories
Logic Trees: Tricks of the trade …
• Note that many frameworks are, in essence,
logic trees that have been codified for re-use.
1. Frame complex problems – Issues
Analytical Method – Logic Trees
• Also note that logic trees are simply visual
depictions of traditional hierarchal outlines
1. Frame complex problems – Issues
Analytical Method – Logic Trees
Conclusion I. Big Idea #1
A. Sub Point #1 1. Detail Point #1
2. Detail Point #2
3. Detail Point #3
B. Sub Point #2
C. Sub Point #3
II. Big Idea #2
III. Big Idea #3
If you’re more comfortable with words than pictures, just use outline format Note: More people ‘process’ visuals (pictures) better than semantics (words)
• Finally, note that logic trees are a useful device for crafting presentations … i.e., for organizing ideas into a storyline prior to “ghosting” a presentation.
1. Frame complex problems – Issues
Analytical Method – Logic Trees
Conclusion I. Big Idea #1
A. Sub Point #1 1. Detail Point #1
2. Detail Point #2
3. Detail Point #3
B. Sub Point #2
C. Sub Point #3
II. Big Idea #2
III. Big Idea #3
Outline Logic Tree “Ghost” Deck*
* A Ghost Deck is a preliminary draft of a presentation with headers & footers
that lay out the storyline … and representations of likely supporting charts.
For example, here’s a Logic Tree
used to develop this slide deck …
1. Frame complex problems – Issues
1. Frame complex problems – Issues
Analytical Method: Mind Mapping … a technique for creating Logic Trees
1. Frame complex problems – Issues
Mind Mapping is a technique for analysts who
work more effectively with visuals (pictures) than
semantics (words) …
The preceding visual representations of the typical
matrix format and of the traditional outline format
are examples of Mind Maps
1. Frame complex problems – Issues
Analytical Method – Mind Mapping
The basic Mind Mapping method:
1. Brainstorm a ‘laundry list’ of ideas (e.g. on a whiteboard)
2. Group ideas into logical categories, i.e. connect related ideas (e.g. chronological sequence, by category, by function)
3. Order the categories in a logical arrangement and order the ideas
within each category
4. Eliminate duplicate ideas, consolidate small ideas into bigger ideas,
5. Draw a visual layout of the ideas … a Mind Map
6. Inspect the Map for completeness (no gaps), parallel structure (same
levels of abstraction), and logical relationships (e.g. cause & effect)
7. Iteratively revise the Mind Map as necessary to make it right !
1. Frame complex problems – Issues
Analytical Method – Mind Mapping
• Laundry List Field of Vision (8-1/2 x 11, whiteboard)
Shorthand entries
Loosely structured
(Obvious categories, misc.)
• Scan & Sort Clear the debris
Connect the dots
Iterate and refine
• Logic Tree
For details, view online
tutorial: Mind Mapping
Analytical Method – Mind Mapping
Good News
There are apps and software packages that
facilitate the Mind Mapping process …
1. Frame complex problems – Issues
Analytical Method – Mind Mapping
Good News
There are apps and software packages that
facilitate the Mind Mapping process …
1. Frame complex problems – Issues
Analytical Method – Mind Mapping
Really Good News
Highly functional apps are available FREE !
Get this for your iPad and start
playing with it … it’s free!
Once you become a believer
… also free, more functionality
Mind Mapping’s conceptual leader … and the
gold standard in functionality and price (~$500)
What we’ve covered …
1. Frame complex problems – Issues
• Issues Analysis
• Drilling Down
• Analytical Zooming
• Parallel Structure
• MECE
1. Frame complex problems – Issues
Key Concepts
• Issues Analysis
• Drilling Down
• Analytical Zooming
• Parallel Structure
• MECE
1. Frame complex problems – Issues
Key Concepts
• The 5 Whys
• Fishbone Diagrams
• Logic Trees
• ROI Trees
• Mind Mapping
Methods
• Issues Analysis
• Drilling Down
• Analytical Zooming
• Parallel Structure
• MECE
1. Frame complex problems – Issues
Key Concepts
• The 5 Whys
• Fishbone Diagrams
• Logic Trees
• ROI Trees
• Mind Mapping
Methods
Putting everything back into context …
1. Frame complex problems – Issues
5 Key Consulting Skills
1. Frame complex problems
2. Generate testable hypotheses
3. Gather and analyze facts efficiently
4. Craft creative, practical solutions
5. Syndicate support and mobilize
5 Key Consulting Skills
1. Frame complex problems
2. Generate testable hypotheses
3. Gather and analyze facts efficiently
4. Craft creative, practical solutions
5. Syndicate support and mobilize
5 Key Consulting Skills
1. Frame complex problems
• Grasp the context … quickly !
• Identify the key question
• Drill down to pivotal sub-issues
How to do it …
Key Issues Analysis (KIA) identifies and
documents important sub-issues, related
hypotheses and required analyses …
1. Frame complex problems – Issues
Key Issues Analysis (KIA) identifies and
documents important sub-issues, related
hypotheses and required analyses.
• Drill down from the SCQ Question
• MECE: Mutually Exclusive (no overlaps),
Collectively Exhaustive (no gaps)
• Several supportive methods, including
“5 Whys” and Logic Trees (Mind Maps)
Issues Hypotheses Analyses
Key Issues Analysis (KIA)
Key Question:
• For efficiency, consultants’ problem solving
methodology is generally hypothesis-driven
• That is, they conjecture likely answers and
then try to validate or refute them
• Hypotheses are subject to iterative revision
as facts and insights become available.
• Process focuses analytical efforts (versus
broad scope exploratory investigations)
Minto, Pyramid Principle
Issues Hypotheses Analyses
Key Issues Analysis (KIA)
Key Question:
• Goal: proving or disproving hypotheses
• Fact-gathering via info searches, interviews
and raw data collection.
• Extensive data set “mashing” and “cutting
the data” … e.g. clustering
• Continual 80-20 re-focusing for efficiency
• Mindset: insights, not just calculations
Issues Hypotheses Analyses
Key Issues Analysis (KIA)
Key Question:
KIA: Boiling it down …
Key Issues Analysis (KIA) identifies and
documents important sub-issues, related
hypotheses and required analyses.
If you could only ask a vital few questions
(say, 4 to 6 of them), what would they be?
Sufficient …
Key Issues Analysis (KIA) identifies and
documents important sub-issues, related
hypotheses and required analyses.
If you could only ask a vital few questions
(say, 4 to 6 of them), what would they be?
If those questions are answered, will you
have a certain answer to the Key Question?
Quality checking a KIA …
Key Issues Analysis Good KIAs are …
• High Level … client and case-specific
Don’t get too deep into the weeds until the need arises
… think at an appropriately high level of abstraction.
Note: Eventually, as a study progresses, it becomes
appropriate to work at the tactical or operational
levels of abstraction, i.e. to dive deeper
• High Level … client and case specific
• Parallel … hierarchal logic structure
Issues should all be at approximately the same level of abstraction.
Extreme example: “Should we be in this business?” and “Where should
we locate the factory?” are at radically different levels of abstraction.
Key Issues Analysis Good KIAs are …
• High Level … client and case specific
• Parallel … hierarchal logic structure
• Answerable … yes or no, or a number
Key Issues Analysis Good KIAs are …
Common guidance: The answer to an
issue should always be “yes” or “no”
More practically, it just shouldn’t be open-ended.
Often, the answer is a number, or a range of
numbers, e.g. “what’s the breakeven point?”
• High Level … client and case specific
• Parallel … hierarchal logic structure
• Answerable … yes or no, or a number
• Sequential … if “no”, rest of Qs are irrelevant
Issues should ordered so that disqualifying issues are considered first.
For example: Generally, if a market is unattractive, it doesn’t matter if the
company has a capability to serve the market … so the company’s capability
doesn’t need to be analyzed
Key Issues Analysis Good KIAs are …
• High Level … client and case specific
• Parallel … hierarchal logic structure
• Answerable … yes or no, or a number
• Sequential … if “no”, rest of Qs are irrelevant
• Assignable … tied to analytical tasks
Keep in mind that the KIA ties directly to work planning.
So, issues should be “chunked” into analytical tasks.
Key Issues Analysis Good KIAs are …
• High Level … client and case specific
• Parallel … hierarchal logic structure
• Answerable … yes or no, or a number
• Sequential … if “no”, rest of Qs are irrelevant
• Assignable … tied to analytical tasks
And, Collectively Sufficient to answer the
Key Question (and-or the client’s question)
Key Issues Analysis Good KIAs are …
Closing one more loop …
1. Frame complex problems – Issues
Flashback
The pivotal case Question from the SCQ Analysis
is a direct linkage to, and the starting point for,
the Key Issues Analysis (KIA) …
Key
Question
Analytical Process Map
© K.E. Homa
And, the Key Issues Analysis (KIA) is often
the basis for clarifying or redirecting the
SCQ’s pivotal case question …
Key
Question
Sub-Issues
Problem
Restatement
Analytical Process Map
© K.E. Homa
Also, the Key Issues Analysis (KIA) is
the basis for the case’s work plan …
Key
Question
Analyses
to
Work
Plan
Sub-Issues
Problem
Restatement
Analytical Process Map
© K.E. Homa
Still more to come …
Key Consulting Skill #1 – Part 3
Framing Complex Problems Issues Analysis & Logic Trees
© K.E. Homa
Proprietary Material
Preliminary Discussion Draft Incomplete Without Extensive Oral Elaboration
Professor Ken Homa Georgetown University