Before I proceed on the concept from ‘Analysis of Business Problems’ class as outlined by our Lecturer, it is important to note that some people tend to make quick analysis of a problem to provide a quick decision. It could be based on intuition or perception or assumption or based on experience. In as much as the quick analysis may tend to provide the needed solution, it is not practical analysis. It may be by chance or because of many occurrences of similar problem.
Take for instance, you were consulted to analyse the reason why company A, a 3000 hectolitre beer plant producing below capacity of 2000 hectolitres daily for the past 2 years. After due technical analysis, you discovered that the problem is from the leadership of the Plant Manager. You recommended that the Plant Manager be relieved of his duties. Not too long after your analysis of company A, you were presented with similar problem for company B. Then judging by the outcome of the analysis of company A, you made a quick decision that the Plant Manager be fired. This analysis is based on perception
Now let us look at the concept from ‘Analysis of Business Problems’ class:
- Understanding the problem: It is important that before analysing a business problem you must first understand the problem. Careful review is required to avoid focusing on the wrong problem or dealing with one of the symptoms of the problem. Besides, if we fail to examine the problem critically we may end up providing the wrong solution.
- Define the problem: As you now have a clear understanding of the problem, it will be easier to define the problem. This is more like a problem statement; a clear descriptive statement to array the problems in words and structure for easy analysis.
- Define the Objective: In analysing business problems, you should bear in mind that the solutions intended is to address the objective of the business. So no problem will be said to have been solved if the objective is not met. Therefore, clearly define the objectives that solution is meant to address.
- Determine the criteria; priority and weight: This is a set of rules, values, conditions and variables that guides the analysis in in justifying the reason for different alternatives. These criteria selection will be follow a priority arrangement in relation to the weight assigned to each criterion. The implication of this is to ensure fairness, rationality and quality of the decision.
- Generate alternatives: At this stage different options need to be outlined to match the objectives of the business with risk measurements.
- Analyse the alternative using the developed criteria: Those choices available are evaluated using the developed criteria. This can be in form of a decision matrix, using the developed criteria to measure the practicability of listed alternatives. This matrix should reflect the constraints that may impact the alternatives.
- Make a decision: The decision matrix will guide in making a decision, having analysed all the alternatives using the developed criteria. The decision will be based on reasoned process. However, some of the decision makers after undergoing this reasoned process can still decide by intuition but with full understanding of the implications.
- Create action plan: During the analysis of the problem, some gaps were identified. Action plan or implementation plan is required with responsibilities and due dates to close all loops may lead to future problems.
In the end, I noticed the problem solving concept I learnt from ABI University and the ‘Analysis of Business Problems’ from EMBA class obeys the same principle. In any way you wish to analyse the problem, you must understand the problem and define the problem. Whether you are doing a 5 why or abnormality report or PDCA to get to the root cause, criteria and alternatives must be identified. And finally an action plan must be created to close the loop.
James Nwachuya #EMBA28
