Analytical Thinking

Analytical Thinking

Analytical Thinking Divergent Convergent

Problem Solving • Divergence and Convergence • Generate/eliminate • 15%

Analytical Thinking - A Scientific Approach to Problem Solving Problem Solution Hypothesis Analysis Facts

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

Problem Definition • How do organizations find discrepancies?

Problem 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 Deeper • What is the underlying problem?

Root Cause Analysis Technique - Five Whys Employee turnover rate has been increasing

Root Cause Analysis Technique - Five Whys Employee turnover rate has been increasing Why? Why? Why? Why? Why?

Root Cause Analysis Technique - Five Whys Employee turnover rate has been increasing Why? Why? Why? Why? Why? Employees are leaving for other jobs

Root Cause Analysis Technique - Five Whys Employee turnover rate has been increasing Why? Why? Why? Why? Why? Employees are leaving for other jobs Employees are not satisfied

Root Cause Analysis Technique - Five Whys Employee turnover rate has been increasing Why? Why? Why? Why? Why? Employees are leaving for other jobs Employees are not satisfied Employees feel that they are underpaid

Root Cause Analysis Technique - Five Whys Employee turnover rate has been increasing 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

Root Cause Analysis Technique - Five Whys Employee turnover rate has been increasing 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

“The consulting process revolves around developing and testing hypotheses.” Graeme Deans Partner, SECOR Group

Analytical Thinking – An Exercise • Develop a research plan for solving Toronto’s traffic problem by completing the following steps: • Define the problem • Develop a set of hypotheses

What is an Hypothesis?

What is an Hypothesis? • Not just an educated guess

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 Deans Partner, SECOR Group

Application: 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?

Conducting 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?

Solutions • 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 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

Analytical Thinking