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Projects not defined in terms of client results. Unrealistic solutions – beyond the resources. Unrealistic solutions – one big change. Non-collaborative consulting. Labor intensive use of consultants (instead of leveraged use) <br>
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Business Consulting Services Twyla Garrett
Agenda • Problem Definition discussion • Problem Definition Exercise • Objectives: • Understand the Problem Definition Process • Be Able to Define a Client’s Problem
5 Fatal Flaws of Consulting • Projects not defined in terms of client results • Unrealistic solutions – beyond the resources • Unrealistic solutions – one big change • Non-collaborative consulting • Labor intensive use of consultants (instead of leveraged use)
Good Consulting Techniques • Project goals are defined in terms of measurable improvements in client bottom-line results. • Project scope determined by assessing what the client organization will be willing and able to absorb and implement. • Projects divided into steps to produce rapid results and experience that lay foundation for further progress. • Client and consultant work together as partnership at every stage of the project. • Client teams take major responsibility for the project, and consultants provide unique, focused support.
What’s a Problem? Something that isn’t right that has finally reached the point that it can’t be ignored any longer.
Problem Definition Excellent Consulting begins with Accurate Problem Definition
Problem Definiton What is the difference between The Symptoms and The Problem?
Presenting Problems = Symptoms Symptom - Back Pain Ask questions: Where? In the middle of my back & sometimes my neck. How long? About 2 hours. When does it hurt? It started when I was shoveling snow. It goes away if I sit down and rest. Are there any significant medical issues in your family? Dad died from a heart attack. Do Research: Check Pulse – rapid Check BP – high Check Breathing – labored and shallow Check Skin – pink, cool and damp Hypothesis: Heart attack. Treatment: Immediate cardiac care. Symptom - Back Pain Ask questions: Where? In the middle of my back. How long? About 2 hours. When does it hurt? It started when I was shoveling snow. It goes away if I sit up straight and don’t turn my head. Are there any significant medical issues in your family? No. Do Research: Check Pulse – normal Check BP – normal Check Breathing – slightly elevated and shallow Check Skin – pink, warm & dry Hypothesis: Strained back muscles. Treatment: Ibuprofen, heat, relaxation.
Presenting Problems = Symptoms Symptom - Back Pain Ask questions: Where? In the middle of my back & sometimes my neck. How long? About 2 hours. When does it hurt? It started when I was shoveling snow. It goes away if I sit down and rest. Are there any significant medical issues in your family? Dad died from a heart attack. Do Research: Check Pulse – rapid Check BP – high Check Breathing – labored and shallow Check Skin – pink, cool and damp Hypothesis: Heart attack. Treatment: Immediate cardiac care. Symptom - Back Pain Ask questions: Where? In the middle of my back. How long? About 2 hours. When does it hurt? It started when I was shoveling snow. It goes away if I sit up straight and don’t turn my head. Are there any significant medical issues in your family? No. Do Research: Check Pulse – normal Check BP – normal Check Breathing – slightly elevated and shallow Check Skin – pink, warm & dry Hypothesis: Strained back muscles. Treatment: Ibuprofen, heat, relaxation.
Presenting Problems Presenting Problem – Profitability Ask Questions: What has happened to sales? Remained steady. What has happened to expenses? Increased What areas have increased the most? Cost of Goods Sold (COGS) Why? I’m not sure. Research: • Industry Norms • Historical – COGS% up • Break down components of COGS – shipping costs 30% above industry norm. Hypothesis:Examine ways to lower shipping costs of raw materials. Presenting Problem – Profitability Ask Questions: What has happened to sales? Declined. What has happened to expenses? Increased slightly. What products have declined the most? Our pink widgets. Why? I’m not sure. Research: • Industry Norms • Historical – Pink & Striped widget sales are down • Competition, trends, pricing, etc. Hypothesis:Competition has increased in the Pink widget business and technology has made Striped widgets unnecessary.
Presenting Problems Presenting Problem – Profitability Ask Questions: What has happened to sales? Remained steady. What has happened to expenses? Increased What areas have increased the most? Cost of Goods Sold (COGS) Why? I’m not sure. Research: • Industry Norms • Historical – COGS% up • Break down components of COGS – shipping costs 30% above industry norm. Hypothesis:Examine ways to lower shipping costs of raw materials. Presenting Problem – Profitability Ask Questions: What has happened to sales? Declined. What has happened to expenses? Increased slightly. What products have declined the most? Our pink widgets. Why? I’m not sure. Research: • Industry Norms • Historical – Pink & Striped widget sales are down • Competition, trends, pricing, etc. Hypothesis:Competition has increased in the Pink widget business and technology has made Striped widgets unnecessary.
Defining the Problem 1. Uncover the Presenting Problems. 2. Identify the key questions to ask and investigate further. 3. Answer the key questions and define the overall issue. 4. Define a course of action.
Issue Decomposition Issue Decomposition = A tool to define/structure key questions to be answered to solve a business issue (i.e., Issue Tree) Issue Tree Enables You to: • Clearly state a business problem • Understand the business problem’s key drivers and components • Identify interrelationships between factors • Comprehensively answer/address the business problem • Organize efforts to collect relevant information • Communicate your approach, and, eventually, your recommendations in a logical fashion