MIMT 6110

Skills Seminar

Chris Doran

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 Over 25 years of strategy experience, mostly multinationals

CHRIS DORAN EXPERIENCE

McKinsey Manager London and Delhi
Diageo Head of Strategy London
(Johnnie Walker) CEO Three Deep San Francisco
(Web start-up)
Lend Lease Head of Strategy London
(Real Estate)
A. S. Watson M&A and Strategy Director Hong Kong
(Retail)
HKUST Professor Hong Kong
Consultant

2
 The objective of this workshop is to teach you the tools top
consulting companies use to solve business problems

WORKSHOP OBJECTIVE

Communicate effectively in a business environment, both orally and in

writing:

• Participants have a basic set of diagnostic problem solving tools

• Participants can write a clear business document
• Participants can design and create a good Powerpoint presentation
• Participants can give a persuasive oral presentation
 Our class sessions will be devoted to class exercises and practice

OUR CLASS SESSIONS

1) Understanding 2) High Impact 3) Elevator Pitch 4) Case
the problem Charts and Storyline Competition

•Triage Case •Crafting •Elevator Pitch •Delivering a

Notes “punchy” •Presentation Recommendation
•Root Cause messages
Storyline/“flow”
Analysis •PEIP Art
•Iterating the Gallery
Question •Redesigning
•Problem Charts
Definition Sheet

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4
 We will learn tools to apply a structured and logical approach to
problem solving

McKINSEY 7 STEP PROBLEM SOLVING PROCESS

Structured Root Key Problem
Triage Cause Question Definition
Notes Analysis Iteration Sheet

1) Define 2) Structure 3) Prioritise

Problem Problem Issues

7) Develop 4) Develop
Recommendations Workplan
Story
Outline
6) Synthesise 5) 6)
Conduct
Conduct Writing
Findings Analysis
Analysis Proposal
Elevator
Pitch Crafting
Charts
Business Communications
Define Problem

Tool: Structured Triage Notes

Chris Doran
 We will learn tools to apply a structured and logical approach to
problem solving

McKINSEY 7 STEP PROBLEM SOLVING PROCESS

Structured Root Key Problem
Triage Cause Question Definition
Notes Analysis Iteration Sheet

1) Define 2) Structure 3) Prioritise

Problem Problem Issues

7) Develop 4) Develop
Recommendations Workplan
Story
Outline
6) Synthesise 5) 6)
Conduct
Conduct
Findings Analysis
Analysis
Elevator
Pitch Crafting
Charts
 When we first encounter a new business situation, we should first
“triage” the situation

TRIAGE THE SITUATION

Triage: the process of examining

problems in order to decide
which ones are the most serious
and must be dealt with first

Source: Cambridge English Dictionary, WHO 8

Case: Prince Edward Island Preserves

What is the situation?


Your client: Bruce MacNaughton
 Structured notes will help you push your initial thinking
STRUCTURED TRIAGE NOTES

Topic Key Facts Hypotheses/Ideas/Questions Analysis

 Structured notes will help you push your initial thinking
STRUCTURED TRIAGE NOTES

Topic Key Facts Hypotheses/Ideas/Questions Analysis

Independent Objective Subjective What you get

and Complete Prioritised – Active reading paid for:
(MECE) what is – why is this
structure important? important? Knowing how
appropriate to you will
the overall answer these
Don’t list facts if Don’t list
context (e.g. questions and
they trigger no these without
functional for prove your
hypotheses/ facts that
a general mgt hypotheses
ideas/questions trigger them
problem) and ideas

Push your thinking as deep as possible, connecting horizontally

 Case: Prince Edward Island Preserves

CLASS EXERCISE: TRIAGE CASE NOTES

• What are the most important points?


Your client:

Bruce MacNaughton
 To start problem solving, read actively and write notes
CASE PREPARATION

INDIVIDUALLY
1) Quick overview read, identifying decision maker,
decision to be made and critical context
2) Read actively – e.g. annotate case
3) Write up notes
• Structured – e.g. 4P/3C/7S/Functional
• Prioritised
• Push every key fact to hypothesis/question
4) Bring note to first team meeting
 Everyone can then share their insights and create a team synthesis
CASE PREPARATION

AS A TEAM
1) Everyone shares their individual notes (How?)
2) Synthesise, identifying
• Common points of view, building on each other
• Disagreements to explore – creative conflict!
• Push every key fact to hypothesis/question
3) Create prioritised notes:
• 5 key analyses to do
• 5 best questions
• 5 best ideas
 You will get the most from this course if our classes build on your
team work, and your team work builds on your individual work
Case Notes

Depth of
learning

In class


In your team

Just

On your own listening
in class

Time

How will you create this learning culture in your cohort?

Business Communications

Understanding the Situation:

Root Cause Analysis
Professor Chris Doran
 We will learn tools to apply a structured and logical approach to
problem solving

McKINSEY 7 STEP PROBLEM SOLVING PROCESS

Structured Root Key Problem
Triage Cause Question Definition
Notes Analysis Iteration Sheet

1) Define 2) Structure 3) Prioritise

Problem Problem Issues

7) Develop 4) Develop
Recommendations Workplan
Story
Outline
6) Synthesise 5) 6)
Conduct
Conduct
Findings Analysis
Analysis
Elevator
Pitch Crafting
Charts
 It is easy to stop at superficial understanding……..you need to push
your thinking to get to root causes Root Cause

WHAT IS ROOT CAUSE ANALYSIS

PROBLEM

Superficial If you stop here the

problem will recur
causes

Root A cause that you can take action on

cause that will prevent the problem recurring

Ultimate a) There often is no “ultimate cause”

cause b) It may not be actionable
 It is easy to stop at superficial understanding……..you need to push
your thinking to get to root causes Root Cause

ASK 5 WHYS


e.g. A business missed budget this quarter
What solutions

Why? will you
recommend if

Because we lost customers to our competitor you stop here?

Why?

Because their product offers better value than ours

Why?

Because our new product is 6 months late in development

Why?

Because many of our top engineers left

Why?

Because good engineers don’t feel fulfilled in our culture

Why?
 RIM shares have lost $75 billion in market cap in the last 4 years

RIM SHAREPRICE

$

Why did RIM collapse?


2008 2009 2010 2011 2012


Source: Google Finance
It is easy to jump to superficial explanations for RIM’s
problems………


Apple Roadkill
 Understanding the root cause of RIM problems will help them
make better decisions Root Cause
ROOT CAUSE ANALYSIS OF RIM PROBLEMS CTOs wanted
Never cultivated
security not
developers
Apps
Few Few App
Apps developers Small app-buying
installed base
(own O/S)
Blackberry RIMs Target
Slow to “Crackberry”
slow to customer was the
introduce power-email
catch up on CTO and
innovative users wanted
new key the‘Crackberry’
features (e.g keyboard not
buying user not the mass
touchscreen) touchscreens
factors consumer
Blackberry
lost share of
smartphone Emphasised
consumer Brand not functionality
market iPhone and “cool” not emotional
Android branding
phones
introduced
 Case: Prince Edward Island Preserves

CLASS EXERCISE: DEFINE YOUR PROBLEM

• Create a 1 page Root Cause Analysis that

explains why PEIP went bankrupt 
Your client:

Bruce MacNaughton
Business Communications

Iterating the Key Question

Professor Chris Doran

 We will learn tools to apply a structured and logical approach to
problem solving

McKINSEY 7 STEP PROBLEM SOLVING PROCESS

Structured Root Key Problem
Triage Cause Question Definition
Notes Analysis Iteration Sheet

1) Define 2) Structure 3) Prioritise

Problem Problem Issues

7) Develop 4) Develop
Recommendations Workplan
Story
Outline
6) Synthesise 5) 6)
Conduct
Conduct
Findings Analysis
Analysis
Elevator
Pitch Crafting
Charts
“When you are an individual contributor,
you try to have all the answers.
When you’re a leader,
your job is to have all the questions.”

Jack Welch
 Defining the Key Question is the highest leverage stage in problem
solving
Problem
Definition

KEY QUESTION DEFINITION

What is the GOAL of your

problem solving?

Phrased as a question which

your solution will answer
 The key question specifies the END GOAL of your recommendation

KEY QUESTION vs SUB-GOAL QUESTIONS vs DIAGNOSTIC QUESTIONS

Diagnostic Questions
(Understanding the situation)
•Why have profits decreased?
•Why do customers not recommend us
to their friends?
•Which segment is the most attractive?
•What is our competitive advantage?
•Why is our competitor gaining share?
Key Question
(END GOAL of problem solving)
How can we increase
profits 25% next year?
Sub-Goal Questions
(MEANS to achieve END GOAL)
• How can we reduce costs 10%?
• How can we capture 5% market
share?

Your Key Question specifies your End,

not the Means to get there
 Even if you are given a question, you should still challenge your
thinking to find a better one
Problem
Definition

WHY YOU NEED TO DEFINE YOUR OWN KEY QUESTION

• Your client/boss/the case is unlikely to serve up the

best question

• In your search for a better question, you will

understand the problem better

• You will differentiate yourself

 Your boss/client will frequently not identify the Key Question
Problem
REFRAMING YOUR PROBLEM EXAMPLES Definition

Your boss/client …but during your Diagnostic …..leading you to

asks you…. phase you find…… reframe the key question

Initial Problem Problem Definition Key Question

Can you train .…but in fact the How can we
our managers are skilled, incentivise our
managers……. just not motivated….. managers?

Develop a .…but in fact there is How can we

marketing plan to high churn because retain our
acquire new the product is hard customers?
customers……. to use…..
 It is not always easy to define the Key Question
Problem
Situation: Your boss complains that the company car park Definition

was full and he had to park down the street

What is
the Key
Question?

120112 © Chris Doran 31

If you start off your problem solving with a good question, you
greatly improve the chances of getting a good answer
Problem
Definition

“If I had an hour to save the world

I would spend 55 minutes defining the
problem and 5 minutes finding solutions”
  

Albert Einstein
 Your choice of question represents a trade-off in scope
Problem
Definition

Narrow scope

•
Simplifies problem
•
Reduces analytical Broad scope
workload
•
Allows maximum
creativity
•
More likely best
solution is included
 Exploring to find a better question is an iterative process
Problem
Definition
ITERATING THE KEY QUESTION

1. 1. “How can Dell improve profit?”

2. 2. “How can Dell increase profit $100m?”
3. 3. “How can Dell increase profit $100m
within 6 months?”
2
4. 4. “How can Dell increase profit $100m
1 within 6 months and build their brand?”
5. 5. “How can Dell increase profit $100m
3 7 6 within 6 months by cutting costs?”
6. 6. “How can Dell increase profit $100m
5 within 6 months by reducing
manufacturing costs?
4
7. 7. “How can Dell increase profit $100m
within 6 months by reducing
manufacturing costs without
compromising quality?”

020910 Chris Doran 34

 You will get better at reframing problems with practice
Problem
PROBLEM REFRAMING TIPS Definition

1) Change the STAKEHOLDER

(e.g. company to customer to employee)

2) “CHUNK UP” to bigger picture/goal
3) “CHUNK DOWN” to focus on small part

4) Articulate and challenge ASSUMPTIONS

5) REWORD (e.g. “How can we improve productivity?”
to “How can we make your job easier”?)
 When you have a question, ask yourself if it is the key one
Problem
Definition
CHECKING YOUR KEY QUESTION

1) Is this the most important problem the company faces at the
moment? Why? Is it urgent to resolve?


2) Is there a deeper root cause that demands a broader question?


3) Is this question as specific as it can be to narrow the scope?


4) Do we believe we will find an answer?


5) What will be your criteria to choose between solutions?
 Generate several alternative questions to choose the best one

ALTERNATIVE KEY QUESTIONS

Alternative Key Why is this question What are the
Question useful? drawbacks?
1)
<Best Key Question>

2)
<SubQuestion>

3)
<SubQuestion>

4)
<SubQuestion>

5)
 Case: Prince Edward Island Preserves

CLASS EXERCISE: DEFINE YOUR PROBLEM

• Brainstorm 5 alternative Key Questions

individually
• Prioritise them as a team, separating out
diagnostic questions

Your client:

Bruce MacNaughton
• Choose the most useful 5 alternative
questions
• Identify their strengths and drawbacks
• Select your best key question
• Expand out 2-3 sub-questions underneath
this key question
Business Communications

Problem Definition Sheet

Professor Chris Doran

 We will learn tools to apply a structured and logical approach to
problem solving

McKINSEY 7 STEP PROBLEM SOLVING PROCESS

Structured Root Key Problem
Triage Cause Question Definition
Notes Analysis Iteration Sheet

1) Define 2) Structure 3) Prioritise

Problem Problem Issues

7) Develop 4) Develop
Recommendations Workplan
Story
Outline
6) Synthesise 5) 6)
Conduct
Conduct
Findings Analysis
Analysis
Elevator
Pitch Crafting
Charts
 The most important stage in solving a problem is to define the
problem
PROBLEM DEFINITION SHEET
Situation
What are the important facts?
Complication Why does action need to be taken? What is the urgency?
Is it a threat or an opportunity?
Key Question
What question will our recommendation answer?

SubGoal SubGoal
What are the most important subgoals we will need to achieve?

Solution Scope Key Analyses/Sources of insight

IN OUT
What is IN that we What is OUT that What are the big chunks of
want everyone to we want everyone work and research?
know? to know?
Criteria for Success Main
Stakeholders
Who is the decision
How will we select the best solution? maker? Who else matters?
 The most important stage in solving a problem is to define the
problem
PROBLEM DEFINITION SHEET
Situation

Complication

Key Question

SubGoal SubGoal

Solution Scope Key Analyses/Sources of insight

IN OUT

Criteria for Success Main Stakeholders

 Case: Prince Edward Island Preserves

CLASS EXERCISE: DEFINE YOUR PROBLEM

• Complete the Problem Definition Sheet for PEIP:

- What are the key facts in the Situation?
- What is the Complication?
- Include your best Key Question and sub-goals
- What is in and out of scope that
you want to highlight to Bruce?
- What are your key analyses?
- What are the criteria for selecting a
recommendation?
- Who are the stakeholders?

Your client:

Bruce MacNaughton
Business Communications

Team Assignment

Professor Chris Doran

TEAM ASSIGNMENT: DEFINE YOUR PROBLEM

• DEFINE THE PROBLEM FOR PEIP

- 1 Page ppt Structured Notes
- 1 Page ppt iterating 5 alternative key
questions and evaluating pros and cons of
each
- 1 Page ppt Problem Definition Sheet
- 3-4 Page Proposal to Bruce, describing the 
Your client:
project you will do to help him. Focus on the 
Bruce MacNaughton
Key Question, Scope and Analysis you will do

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