This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here: http://flevy.com/browse/business-document/issue-based-work-planning-and-hypothesis-problem-solving-377 The principles behind Issue-Based Work Planning are a powerful concept for use on all business issues and help to align the approach with the overriding issues, rather than the traditional process structure. They help ensure that all relevant project issues are covered and to arrive at the most robust and creative answer, by linking analyses and end products to a methodical analysis of key issues. This powerpoint is suitable for anyone who is looking for a robust methodology to solve the most complex of issues.

1. Issue-Based Work Planning and
Hypothesis Problem Solving

2. INTRO
Issues, rather than tasks or analysis, drive the process
Problem
Definition
Issue Tree Creation
Hypothesis Generation
Defining Analysis and
Identifying Data Sources
2

3. INTRO
An Issue-Based Work Planning is developed in five Steps
4

4. DEFINE THE PROBLEM
1
The Situation and Complication set the stage for the Overriding
Question
Situation
Complication
Overriding
Question
• ...
• But ...
• Meanwhile, ...
• ... ?
6

5. DEVELOP AN ISSUE TREE
2
Starting from the overriding question, develop an issue tree
Example
First Level Issue — Example
Brainstorm first level issues and chart
them on an issue tree
Overriding Question
Can US Utility salvage its
share price?
Can US Utility keep control of its
future into the medium term?
Issues and sub-issues should
• Relate directly to the overriding
question
• Fall within the scope of the overriding
question
• Be mutually exclusive and
collectively exhaustive (MECE)
Are there ways of avoiding
being taken over if share price
cannot be salvaged?
8

6. DEVELOP AN ISSUE TREE
2
There are three generic types of issue trees that could be constructed
Description
Deductive
Starts with problem
definition and
divides it into
components
Elements in splits
When to Use
Actions, assertions,
questions,
categories
Early on, when you
don't know much
Postulates a
hypothesis and
develops a
necessary and
sufficient rationale
to validate or
disprove it
Reasons/questions
At any point in the
process
Phrases key issues
so that they can be
answered yes or
no, and sequence
them in a logical
order showing the
depending action
Questions
Use issue maps to
frame options,
usually later in the
process
What/how
Reasons
Hypothesis
driven
Yes
?
Issue Map
No
10

7. DEVELOP AN ISSUE TREE
2
Repeat the exercise to brainstorm second level issues
Example
Second Level Issues
First Level Issue
Can US Utility
salvage its share
price?
Can US Utility beat the cost
base agreed with the Regulator?
Can US Utility divest and
refocus?
Overriding Question
Can US Utility keep
control of its future into
the medium term?
Can US Utility
create growth
options?
Can US Utility grow organically?
Can US Utility grow by
acquisition?
Can US Utility
avoid being taken
over?
Can US Utility build scale
quickly?
12

8. DEVELOP AN ISSUE TREE
2
Use simple hypotheses to prune the issue tree
Second Level Issues
First Level Issues
Can US Utility
salvage its
share price?
Can US Utility keep
control of its future
into the medium
term?
Can US Utility
create growth
options?
Can US Utility
avoid being
taken over?
Can it beat the cost
base it has agreed
with the regulator?
Can it divest and
refocus?
Can it convince
investors?
Can it grow by
acquisition?
Are there targets to
pursue?
Can it build scale
quickly?
Can it secure a place
in the postconsolidation industry
line-up?
Example
First Level Hypotheses - Impact on
company’s share price would be:
Medium (regulator would respond
after a delay)
Medium (the company could divest
several divisions)
Large (Investors seek a credible US
player in this sector)
Low (The company has shown low
ability to handle acquisitions)
Negative (Research warns of overpayment for targets; few opportunities)
Medium (The company has shown
some ability to grow organically)
Medium (The industry is predicted to
find a stable equilibrium)
14

9. DEVELOP AN ISSUE TREE
2
Think about issue analysis as drilling for oil
Impact of
Pruning
Surface Drilling
Deep Drilling
Informed Exploration
•
Average effort
•
Heavy effort
•
Optimal effort
•
Surface knowledge
•
Time consuming
•
Economy of knowledge
•
Fails to capture the deeper
insights
•
Excess knowledge
•
Expertise
•
Blind alleys
•
•
Much wasted effort
Highest return on
investment
16

10. GENERATE HYPOTHESES
3
Example
Good hypotheses measure up against the criteria
Third Level
Issue
Is This
Better?
Hypothesis
•
Can the
Utility
increase
operational
efficiency?
The company can
increase operational
efficiency by 10% by
improving its
purchasing practices
Does it address a single issue
•
Is this an educated guess at the answer,
or conclusion
•
Is it testable: Can we prove or disprove it?
•
Is it useful: Will it help solve the problem?
•
Is it comprehensive: Have we covered all
the angles?
18

11. DEFINE ANALYSES AND DATA SOURCES
4
Define the specific analysis needed to prove or disprove the hypothesis
– analysis should seek to answer a very specific question
Third Level
Issue
Specific Questions for
Analysis
Hypothesis
•
Can the Utility
increase
operational
efficiency?
The company can
increase operational
efficiency by 10% by
improving its purchasing
practices
Example
•
•
•
•
•
What trends in operational efficiency are already
present?
What is the purchasing spend today?
What have been the recent trends in this?
What opportunities do e-auctions offer?
Would purchasing changes impact on quality?
Could new suppliers integrate with the other key
organisational initiative?
20

12. DEFINE ANALYSES AND DATA SOURCES
4
Data collection matrix and data collection grid - examples
Example
Planning:
Example of data collection grid
22

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