Problem Solving Skills outline
Problem Solving Skills outline
- Structure the problem: Explain the use of logic trees (issue trees and
hypothesis trees) to break down the problem into manageable components,
ensuring a thorough and organized approach.
+ Issue Trees. Issue trees are deductive in nature and aim to cover the full scope of the problem.
They begin by breaking down the basic question into smaller sub-issues, and each level of the tree
has the same level of detail. They typically utilize open questions such as "What?" "Why?" or
"How?" to guide the breakdown of the problem into smaller parts.
=> Issue trees are typically most effective when approaching a new problem where the team has
limited knowledge.
+ Hypothesis Trees. Hypothesis trees are inductive in nature and begin by proposing a solution
and then developing a rationale to support or refute the hypothesis. Hypothesis trees can be
effective when the team has a strong understanding of the problem area and can make informed
assumptions.
=> Sources recommend that hypotheses in the tree should be:
- Testable – able to be proven right or wrong
- Non-obvious – not immediately apparent
- Actionable – pointing to a specific action the client could take
=> Expressed as declarative sentences (e.g., “The planning system needs to become lean") to focus
the thinking and identify the necessary data and analyses.
- Keys to success when developing Issue and Hypothesis trees:
+ Get to paper quickly: Don’t spend too much time trying to develop the perfect tree. It is
more effective to iterate quickly and adjust the tree as you gather new insights.
+ Tackle one level at a time: This ensures that issues at each level are MECE (Mutually
Exclusive, Collectively Exhaustive) – meaning that the issues are non-overlapping and
cover all relevant aspects of the problem.
+ Develop a first draft quickly: Don’t get bogged down in the details. Develop an initial draft
quickly, and refine it as you gain more information.
+ Capture hypotheses as you go: As you work through the problem definition and structuring,
you are likely to develop hypotheses about the solution. Capture these hypotheses as you
go, and refine them as you gather more information.
Sources recommend using the storyline technique as a complement to hypothesis trees.
This involves forcing the hypotheses into a dot-dash memo format, which drives precision in
language and logic and results in a clear and concise communication tool.
The storyline can be developed from the top down by beginning with the governing thought
and then developing key lines to answer why, how, or in what way. Sources also recommend
using the Situation-Complication-Resolution (SCR) structure for synthesizing the
storyline, which helps to ensure that the story is clear, concise, and compelling.
The SCR structure involves:
Situation: Describing the current state or the reason for needing to take action.
Complication: Highlighting the challenges or obstacles that need to be addressed.
Resolution: Presenting the solution or recommended course of action.
- Prioritize issues: After structuring the problem, it is important to prioritize the key issues or
hypotheses that require the most attention.
-> The 80/20 rule suggests focusing on the 20% of issues that are likely to have the largest impact.
Sources recommend using a prioritization matrix to rank issues by impact and ease of
implementation.
By concentrating effort on high-impact, easily implemented solutions, teams can achieve significant
results more efficiently.
+ Keys to success when prioritizing issues:
- Use judgment and intuition: Rely on experience and gut feelings when making prioritization
decisions.
- Do back-of-the-envelope calculations: Conduct quick estimates to assess the potential
impact of different solutions.
- Involve the client and the team: This builds consensus and ensures that everyone is
aligned on the priorities.
- Take risks: Don’t be afraid to prioritize potentially high-impact issues, even if there is some
uncertainty involved.
- Conduct analyses:
This step involves gathering the necessary data and conducting the analyses defined in the work
plan. The goal is to test the hypotheses, gain insights into key issues, and generate data-driven
findings to inform recommendations.
Keys to success when conducting analyses:
+ Be disciplined and deliver on time. Leverage the 80/20 rule.
+ Use milestones.
+ Remember the big picture: Ensure that the analysis is relevant to the overall problem and
helps to answer the key questions.
+ Transition frequently between hypotheses and data. This helps to refine the hypotheses and
ensures that the analysis is focused and relevant.
+ Avoid "analysis paralysis": Don't get bogged down in unnecessary data collection or analysis.
Focus on the key data points and analyses that will drive insights.
+ Be comfortable with "good enough" data: In many cases, perfect data will not be available.
Make informed decisions based on the available data, and be transparent about the
limitations of the analysis.
- Synthesize findings:
This stage involves bringing together insights from all the analyses to draw conclusions and identify
patterns or trends. It is arguably the most challenging step because it requires distilling complex
information into concise and actionable insights. This is where the pyramid principle becomes a
critical tool. The pyramid principle is based on the idea that the human brain can only process a
limited number of ideas at once, and it helps to structure information in a way that is easy to
understand and remember.
The pyramid principle has several key attributes:
+ Governing thought: The main point of the communication – the key takeaway for the
audience.
+ Key line: A set of supporting arguments or actions that directly answer the “Why” or “How”
question posed by the governing thought.
+ Supporting arguments: A hierarchy of supporting ideas, presented in a logical order, that
provide evidence and detail to support the key line and the governing thought.
-> There are two main types of pyramid structures:
+ Grouping structure (inductive reasoning): Organizing information into logical groups
based on similarities. For example, grouping customer segments by their needs or grouping
marketing initiatives by their objectives. Each level should have a similar level of abstraction
and be presented as complete sentences, not just topics.
+ Argument structure (deductive reasoning): Using a logical progression of ideas to
support the governing thought. This is often used when persuading an audience to take a
particular course of action.
Keys to success when synthesizing findings:
+ Focus on action: Articulate the ideas at each level of the pyramid as action-oriented
statements that clearly answer the question posed by the governing thought.
+ Use the SCR structure: This helps to create a clear and compelling story that is easy for
the audience to follow.
+ Test the pyramid: Ensure that the logic flows smoothly from top to bottom, that the levels
within the pyramid are MECE, and that each group of boxes provides one clear answer to
the governing thought.
+ Test the solution: Think through the implications of the recommendations and ensure that
they are feasible and will not create unintended consequences.
- Develop recommendations:
This step involves translating the synthesized findings into specific, actionable recommendations
that address the client's problem. The goal is to provide the client with a clear roadmap for achieving
the desired outcomes.
Keys to success when developing recommendations:
+ Be SMART: Recommendations should be:
Specific
Measurable
Achievable
Relevant
Time-bound
+ Focus on impact: Recommendations should target high-impact areas that will drive the most
significant results.
+ Consider the client's context: The recommendations must be tailored to the client's specific
situation, capabilities, and constraints.
+ Develop an implementation plan: The recommendations should be accompanied by a clear
plan that outlines the steps required for successful implementation.
+ Develop a communication strategy: This should involve creating materials and storylines that
effectively communicate the recommendations to the client, and involve stakeholders
throughout the process.
+ Expand the view of winners and losers: Think about how to address the concerns of those
who may be negatively impacted by the recommendations, and turn those who stand to lose
the most into supporters of the proposed changes.
+ Don't wait until the end of the study: Recommendations should be an ongoing part of the
problem-solving process, and they should be revisited and refined throughout the
engagement.
2. Key principles of the approach:
Emphasize:
○ Fact-based: Decisions and recommendations should be grounded in data and
evidence.
○ Hypothesis-driven: The process encourages the early formulation and testing
of hypotheses, driving focus and efficiency.
○ Iterative: The approach is not linear; it involves continuous refinement and
adjustment based on new information and insights.
○ Collaborative: Engaging stakeholders and leveraging diverse perspectives is
crucial throughout the process.
Part 2: Mastering the core steps: A deep dive into the 7-step process
Chapter 3: Defining the problem: Laying the foundation for success
● The perils of a poorly defined problem: Start by illustrating the consequences
of jumping into problem-solving without a clear and shared understanding of
the issue at hand. Use real-world examples to show how this can lead to wasted
effort, misaligned solutions, and frustrated stakeholders.
● Characteristics of a strong problem definition: Outline the essential elements
of a good problem definition, drawing on the McKinsey Problem Statement
Worksheet:
○ Specific: Clearly articulates the issue, avoiding vague or ambiguous language.
○ Measurable: Defines metrics or criteria to track progress and assess the
effectiveness of the solution.
○ Action-Oriented: Focuses on what needs to be done, not just describing the
problem.
○ Relevant: Addresses the core issue impacting the organization or individual.
○ Time-Bound: Establishes a timeframe for achieving the desired outcome.
● Tools and Techniques:
○ The 5 Whys: Introduce the 5 Whys technique as a simple but effective way to
dig deeper into the root cause of a problem.
○ Problem Statement Worksheet: Present the McKinsey Problem Statement
Worksheet as a structured tool for capturing the key elements of a well-defined
problem. Walk through each component of the worksheet (Basic question,
Context, Success Criteria, Scope, Decision-Maker, Constraints, Stakeholders),
providing clear explanations and examples.
● Tips for Effective Problem Definition:
○ Involve Stakeholders: Emphasize the importance of gathering diverse
perspectives and ensuring buy-in from key individuals.
○ Challenge Assumptions: Encourage readers to question their initial
understanding of the problem and avoid jumping to conclusions.
○ Iterate: Reiterating that problem definition is an ongoing process that may
require revisiting and refining as new information emerges.
Chapter 4: Structuring the Problem: Breaking Down Complexity with Logic Trees
● Introduction to Logic Trees: Briefly reintroduce the concept of logic trees as
powerful tools for dissecting complex problems into smaller, more manageable
components. Explain why this structured approach is essential for ensuring a
thorough and logical analysis.
● Types of Logic Trees: Explain the two main types:
○ Issue Tree: Focus on how to construct an issue tree, starting with a clear and
concise problem statement phrased as an open question.19 Emphasize the
following principles:
■ Consistent: Each level of the tree should address the same level of detail.
■ Relevant: All branches should directly relate to the main problem.
■ MECE: Ensure that the branches are mutually exclusive (no overlaps) and
collectively exhaustive (no gaps).202122
○ Hypothesis Tree: Explain how to build a hypothesis tree, starting with a
proposed solution and then breaking it down into the key arguments or reasons
that support it.12
● Choosing the Right Tree: Briefly discuss factors to consider when selecting
between an issue tree and a hypothesis tree, emphasizing that the choice
depends on the nature of the problem and the level of existing knowledge.23
● Illustrative Examples: Provide clear and relatable examples of both issue and
hypothesis trees, demonstrating how to apply the principles of consistency,
relevance, and MECE.
● Tips for Effective Structuring:
○ Start with the Big Picture: Encourage readers to begin with a high-level
overview of the problem before diving into specifics.
○ Don't be Afraid to Iterate: Reassure readers that it's normal to adjust and
refine logic trees as they gain a deeper understanding of the problem.24
○ Use Visual Aids: Emphasize the value of creating clear and visually appealing
logic tree diagrams to aid in understanding and communication.
Chapter 5: Prioritizing Issues: Focusing on What Matters Most
● The 80/20 Rule: Explain the 80/20 rule (Pareto Principle) and its relevance to
problem-solving, emphasizing that a small number of factors often account for
a large portion of the impact.25
● Prioritization Criteria: Guide readers through the process of establishing
criteria for prioritizing issues within a structured problem framework. Emphasize
the following factors:26
○ Impact: The potential positive or negative consequences of an issue.
○ Feasibility: The ease or difficulty of addressing an issue, considering available
resources and constraints.
○ Urgency: The time sensitivity of an issue.
○ Alignment with Strategic Goals: The degree to which an issue aligns with the
overall objectives of the organization or individual.
● Prioritization Matrix: Introduce the prioritization matrix as a visual tool for
ranking issues based on their impact and feasibility.27 Demonstrate how to use
the matrix to identify the high-priority issues that deserve immediate attention.
● Tips for Effective Prioritization:
○ Involve Stakeholders: Highlight the importance of gathering input from key
stakeholders to ensure alignment and buy-in.26
○ Use Data and Intuition: Encourage a balanced approach that combines
quantitative analysis with informed judgment and experience.26
○ Re-Evaluate Regularly: Emphasize the need to revisit and adjust priorities as
the problem-solving process evolves and new information becomes available.
Chapter 6: Planning Analyses and Work: Creating a Roadmap for Action
● The Value of a Well-Defined Work Plan: Explain why a detailed work plan is
essential for efficient and effective problem-solving. Emphasize how a
well-structured plan can help to:
○ Align the Team: Ensure everyone is working towards a common goal.
○ Manage Time and Resources: Optimize the allocation of effort and prevent
wasted time on low-priority tasks.
○ Track Progress: Monitor advancement towards the desired outcome.
● Components of a Work Plan: Outline the key elements of an effective work
plan, providing clear explanations and examples:9
○ Issues/Hypotheses: Clearly state the specific issues or hypotheses to be
addressed.
○ Analyses: Specify the types of analyses to be conducted, using plain language
that is understandable to all stakeholders.
○ Data Required: Identify the necessary data sources and outline any data
collection plans.
○ Timeline: Establish realistic deadlines for completing each analysis.
○ Responsibilities: Assign clear roles and responsibilities to team members.
● Tips for Developing a Work Plan:
○ Break Down Large Tasks: Encourage the division of complex analyses into
smaller, more manageable steps.
○ Estimate Time Realistically: Guide readers in accurately assessing the time
required for each task, considering potential roadblocks and delays.
○ Build in Contingency: Advise readers to incorporate some buffer time to
accommodate unexpected challenges or changes in scope.
○ Use Project Management Tools: Briefly discuss the value of project
management software or tools for tracking tasks, deadlines, and
responsibilities.
Chapter 7: Conducting Analyses: The Foundation of Evidence-Based Decision
Making
● The Primacy of Numbers: Emphasize the importance of grounding
problem-solving in quantitative data and evidence. Explain that while
qualitative insights and intuition are valuable, they should always be supported
by robust analysis.9
● Types of Analyses: Briefly discuss common analytical techniques used in
problem-solving, such as:
○ Statistical Analysis: Extracting insights from data using statistical methods.
○ Financial Modeling: Projecting financial outcomes based on various scenarios.
○ Market Research: Gathering data on customer preferences, competitor
analysis, and market trends.
○ Benchmarking: Comparing performance against industry best practices or
competitors.
● Data Collection and Validation: Highlight the importance of:
○ Identifying Reliable Data Sources: Emphasize the need to ensure data
accuracy and reliability.
○ Data Cleaning and Preparation: Explain the need to process and prepare data
for analysis.
○ Data Visualization: Discuss the use of charts, graphs, and other visual aids to
communicate insights effectively.
● Tips for Effective Analysis:
○ Focus on Key Questions: Encourage readers to align their analyses with the
most critical issues identified during prioritization.
○ Maintain Objectivity: Stress the need to avoid bias and interpret data
impartially.
○ Test Assumptions: Encourage readers to continuously challenge their
assumptions as they gather new data and insights.
Chapter 8: Synthesizing Findings: Extracting Meaningful Insights from Analysis
● Beyond Summary: Explain the difference between summarizing information
and synthesizing findings. Emphasize that synthesis involves interpreting data,
identifying patterns, and drawing meaningful conclusions that answer the "so
what?" question.1028
● The Pyramid Principle: Introduce the Pyramid Principle as a powerful
framework for structuring and communicating synthesized findings.10
○ Governing Thought: Emphasize the importance of establishing a clear and
concise overarching message or conclusion.
○ Key Arguments: Explain how to support the governing thought with a logical
hierarchy of key arguments or reasons.
○ Supporting Data: Show how to back up each argument with relevant data
points, ensuring a clear and compelling story.
● Storytelling: Discuss the value of weaving findings into a narrative that is
engaging and easy for stakeholders to understand.10
● Tools and Techniques:
○ Dot-Dash Storylines: Explain how to use dot-dash outlines to create a visual
representation of the key findings and the flow of the argument.10
○ Situation-Complication-Resolution (SCR): Introduce the SCR framework as a
useful tool for structuring a compelling story.29
● Tips for Effective Synthesis:
○ Focus on Insights: Encourage readers to go beyond simply presenting data
and focus on the implications and actionable takeaways.
○ Structure for Clarity: Emphasize the importance of organizing information
logically to guide the reader towards the main conclusion.
○ Tailor to the Audience: Remind readers to consider the needs and knowledge
level of their target audience when crafting their synthesis.
Chapter 9: Developing Recommendations: Turning Insights into Action
● From Insights to Action: Explain the crucial step of translating synthesized
findings into concrete and actionable recommendations.30
● Characteristics of Strong Recommendations: Outline the key attributes of
effective recommendations:1131
○ Specific: Clearly state what needs to be done, leaving no room for ambiguity.
○ Measurable: Define metrics or targets to track progress and assess success.
○ Achievable: Ensure that recommendations are realistic and feasible,
considering available resources and constraints.
○ Relevant: Align recommendations with the overall goals and priorities of the
organization or individual.
○ Time-Bound: Establish clear timelines for implementation and completion.
● Implementation Planning: Briefly discuss the importance of considering
implementation challenges and developing a plan to address potential
roadblocks.
● Stakeholder Alignment: Reiterate the importance of securing buy-in and
support from key stakeholders throughout the process.
● Tips for Developing Recommendations:
○ Address Root Causes: Encourage readers to delve into the underlying causes
of the problem, rather than just treating symptoms.
○ Present Options: When appropriate, offer a range of potential solutions with a
clear assessment of their pros and cons.
○ Anticipate Resistance: Guide readers in identifying potential objections and
developing strategies to overcome them.
Part 3: Elevating Your Problem-Solving Skills: Advanced Techniques and
Strategies
Chapter 10: Distinctive Problem Solving: Unlocking Creative Solutions
● Beyond the Basics: Explain that while the core problem-solving process
provides a solid foundation, truly distinctive solutions often require additional
creativity and insight.
● Distinctiveness Practices: Introduce the four practices of distinctive
problem-solvers:
○ Construct Multiple Perspectives: Encourage readers to consider alternative
viewpoints, challenge assumptions, and explore unconventional approaches.
○ Identify Relationships: Highlight the importance of recognizing patterns,
connecting seemingly disparate elements, and drawing analogies from other
fields or industries.
○ Find the Essence: Emphasize the ability to distill complex information into its
core elements and focus on the most critical factors.
○ Stay Ahead/Step Back: Explain the paradoxical practice of staying ahead of
the curve by taking time to reflect, challenge assumptions, and ensure
alignment with the big picture.
● Tips for Enhancing Distinctiveness:
○ Embrace Curiosity: Encourage readers to cultivate a curious mindset, asking
questions, exploring new ideas, and seeking diverse perspectives.
○ Step Outside Your Comfort Zone: Challenge readers to move beyond familiar
approaches and experiment with new tools and techniques.
○ Seek Feedback: Highlight the value of soliciting feedback from others to
identify blind spots and refine thinking.
● Case Studies: Share inspiring examples of how individuals or organizations
have applied distinctive problem-solving practices to achieve groundbreaking
results.
Chapter 11: The Power of Collaboration: Leveraging Diverse Perspectives
● The Benefits of Collaboration: Explain why collaboration is essential for
effective problem-solving, emphasizing its ability to:
○ Expand Knowledge and Expertise: Tap into a wider range of perspectives and
experiences.
○ Generate More Creative Solutions: Spark new ideas through brainstorming
and cross-functional discussions.
○ Improve Decision Making: Reduce bias and groupthink by considering diverse
viewpoints.
○ Foster Ownership and Buy-In: Increase commitment to solutions by involving
stakeholders in the process.
● Sources of Collaboration:
○ Internal: Discuss the importance of collaborating with team members, seeking
guidance from mentors, and leveraging the expertise of colleagues from
different departments or functions.
○ External: Encourage readers to engage clients, customers, suppliers, and
external experts to gain valuable insights and build stronger relationships.
● Tools and Techniques:
○ Brainstorming: Explain how to facilitate effective brainstorming sessions to
generate creative ideas.
○ Cross-Functional Teams: Discuss the benefits of forming teams with members
from diverse backgrounds and skillsets.
○ External Partnering: Explore strategies for collaborating with external
organizations or consultants to access specialized expertise.
● Tips for Effective Collaboration:
○ Establish Clear Roles and Responsibilities: Ensure that everyone understands
their role and contributions to the problem-solving process.
○ Foster Open Communication: Create a safe environment where team members
feel comfortable sharing ideas and challenging assumptions.
○ Embrace Conflict Constructively: Encourage healthy debate and constructive
criticism as valuable ways to refine thinking and generate better solutions.
Part 4: Conclusion - Embracing Problem-Solving as a Continuous Journey
Chapter 12: Becoming a Master Problem-Solver: A Lifelong Pursuit
● Problem-Solving as a Skill: Reinforce the concept that problem-solving is not
an innate talent but rather a learnable skill that can be developed and honed
over time.
● The Importance of Practice: Emphasize that mastering problem-solving
requires consistent effort and application in real-world situations.
● Continuous Learning: Encourage readers to actively seek out opportunities to
expand their knowledge and refine their problem-solving techniques, through:
○ Reading and Research: Staying up-to-date with the latest thinking and best
practices in problem-solving.
○ Training and Workshops: Participating in formal training programs to acquire
new skills and frameworks.
○ Mentorship and Coaching: Seeking guidance and feedback from experienced
problem-solvers.
○ Self-Reflection: Regularly reviewing their own problem-solving approaches
and identifying areas for improvement.
● The Value of a Problem-Solving Mindset: Conclude by emphasizing the
importance of cultivating a positive and proactive attitude towards
problem-solving. Encourage readers to embrace challenges as opportunities for
learning and growth.
Additional Sections:
● Case Studies: Throughout the eBook, incorporate real-world case studies to
illustrate the application of the McKinsey problem-solving approach and the
various techniques discussed. You can draw inspiration from the sources, using
examples like the Hiperama case, the Genco root beer case, or the Pioneer Bank
case, adapting them to make them more engaging for your target audience.
● Exercises and Activities: Include interactive exercises or activities at the end
of each chapter to reinforce learning and encourage readers to apply the
concepts they've learned.
● Templates and Tools: Provide downloadable templates or tools based on the
McKinsey framework, such as a Problem Statement Worksheet, a prioritization
matrix, or a work plan template, to help readers put the concepts into practice.