Analysis of Business Problems: 8-step guide to dealing with unstructured Business problems

Analysis of Business Problems is more than anything a methodology course where we are exposed to steps for dealing with unstructured business problems.

We are exposed to eight (8) steps to guide us in the analysis of problems of business cases.  First step is Understanding the context; this entails trying to Identify and collect all relevant Information and answer the below check questions;

• What do you see that tells you there is a problem?
• Where is it happening?
• How is it happening?
• To whom is it happening?
• Why is it happening?

We are admonished to apply extra care at this point to carefully distinguish between relevant and irrelevant information.

Second step is to Identify and define the problem, Identifying the right problem is key and it’s advisable to avoid confusing symptoms with problems. For example:  Low profits / declining sales = poor market research; High costs = poor design process. It’s believed that the way a problem is stated, frames the decision to be proffered or taken. Next step is to define the objectives, to be clear about the goals to be achieved. In the words of Lawrence J. Peter “If you don’t know where you’re going, any route will take you there”. Defining the objective clearly helps overcome conflicts arising from different perspectives.

Next stop is to generate the alternatives and this can be done effectively by holding brainstorming sessions that provide a useful source of alternatives. Brain storming sessions can be fruitful only when the right brains are gathered. One also has to beware of ‘group think’; a phenomenon that occurs when a group of individuals reaches a consensus without critical reasoning or evaluation of the consequences or alternatives. Groupthink is based on a common desire not to upset the balance of a group of people. Also important is to avoid bullying others into conformity.

Next is to identify criteria / considerations / limitations. Conditions which alternatives must meet in trying to attain established objectives. This step helps to focus on what is most important, it also prevents one from an unfounded inclination towards one option or the other. Following this would be to analyze the alternatives that is, evaluate the alternatives using established criteria and examine both qualitative and quantitative issues establish the tradeoffs/opportunity cost / consequences long term vs. short term outcomes. Next stop would be to make a choice and take a decision. The most optimal choice / decision is the one that meets the criteria you have set the best; that ultimately fulfils the objective.

After taking a decision, the next step should be to develop an action plan! Solutions begin after a decision has been taken but does end there.  How are the decisions going to be implemented , are there risks associated with the decision?, are there ways to minimize those risks?

The decision-making process does not stop because a decision has been made. One should be ready to re-evaluate the decision but avoid getting hung up on whether the decision is right or wrong.

The eight steps enumerated above help as a guide to dealing with and attempting to resolve unstructured business problems.

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