“Problem no dey finish” is a slang phrase I’ve heard many times in my professional career. It appears that as soon as you solve one problem, another one appears. Every manager must be able to analyse information; moreover, as a top-level manager, there are several factors in your operations that have an impact on your business. Understanding various business concepts and their relationships is essential for problem solving. Analysis of business problems is one of those subjects where a hundred experts will all have different ideas about how to approach the problem.The analysis of business problems necessitates the use of several tools. My personal approach is to treat each analysis as if it were an objective function. Since discovering objective functions in linear programming, it has been my go-to method for analysis. Here’s a breakdown of how I do it:
- My analysis starts with a clear definition of the problem at hand. The objective function represents the problem’s goal quantitatively and specifically. It defines what you’re attempting to accomplish and, as a result, provides a precise definition of the problem’s objectives. The objective function, in essence, encapsulates the core of the problem analysis by specifying the desired outcome. Should we, for example, lease or own our tower infrastructure?
- The objectives or goals of a problem must then be quantified and measured. This is exactly what the objective function does; it provides a mathematical expression that quantifies the objective in a way that can be analysed and optimised. This quantification is critical for determining the feasibility and efficacy of potential solutions. In the preceding example, my expression would be to minimise (Total Cost of Ownership-Total Benefit of Ownership)-(Total Cost of Leasing-Total Benefit of Leasing).
- The identification and consideration of constraints, limitations, and conditions that must be followed while seeking a solution is a critical step. The objective function is a component of a larger optimisation problem that frequently includes constraints. These constraints must be examined and incorporated into the problem in order to ensure that the solution is not only optimal in terms of the objective function, but also feasible and realistic. Is there any future value or risk associated with owning infrastructure, using our example? Is capital scarce? Do you have a limited amount of working capital? Is there an opportunity cost associated with investing in ownership?
- The objective function specifies the criteria for assessing solutions. This comprehension aids in the problem-solving process and decision-making. Is there a key weighting factor in our example? As an example, consider the company’s strategic position.
- The numbers are run once your objectives and constraints are clear, as well as their respective weights in the decision-making process. The final stage entails weighing trade-offs and making decisions. The objective function quantifies the trade-offs between various objectives or constraints, allowing for systematic and informed decision-making. It enables a rigorous assessment of the cost-benefit trade-offs and aids in the selection of the best possible solution.
In summary, my personal approach to problem analysis is the objective function because it provides a quantitative representation of the problem’s objectives, allowing for a structured approach to understanding, analysing, and ultimately solving the problem. It guides the entire analysis process, from defining the problem and quantifying goals to selecting optimisation methods and making sound decisions.
