Mastering Problem Solving: Utilizing Issue Trees in Marketing
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Chapter 1: The Art of Problem Solving
How do you tackle challenging questions or prepare for significant choices? Fortunately, there exists a versatile system that can be applied across various fields. My experience as an engineer, entrepreneur, consultant, and coach has shown me its effectiveness.
What is this renowned problem-solving framework? It’s the 4S system popularized by leading consulting firms: State, Structure, Solve, Sell (or Set in Motion if you can implement the solution yourself). To utilize it effectively, you’ll need three key components that anyone can develop:
- A commitment to adhere to the methodology like a compass pointing North.
- Creativity.
- Analytical thinking.
The 4S system emphasizes an issue-driven approach to problem-solving, demonstrated in the image above.
Section 1.1: Understanding the Issue-Driven Approach
In this discussion, I will delve into the Issue-Driven method using an example of expanding a business internationally. This is my go-to system when I lack a clear solution.
How to Begin
In my experience, a staggering 98% of the time, individuals rush to solutions without fully grasping the problem. Quick thinking often leads us astray in our fast-paced world. When confronted with complex issues, hasty conclusions can exacerbate the situation, causing us to treat only the symptoms.
As Warren Buffett wisely stated, "If you find yourself in a chronically leaking boat, spending energy on patching leaks is less effective than focusing on switching vessels."
Instead, a thorough definition of the problem is essential. I employ the TOSCA framework, which allows me to analyze the Trouble, Owner, Success Criteria, Constraints, and Actors involved. Once I’ve examined the situation from multiple angles, I can articulate the Core Question, providing a strong foundation for further exploration.
Section 1.2: The 4+1 Rules for Effective Problem Solving
French philosopher René Descartes established four rules for systematically seeking truth, which have proven invaluable in problem-solving:
- Question everything before accepting it as truth.
- Break down each issue into manageable parts until each elementary question is addressed.
- Start with the simplest issues and work your way up to more complex ones, maintaining order and priority.
- Ensure that nothing is overlooked.
Today, we also incorporate a fifth rule: the MECE principle—Mutually Exclusive, Collectively Exhaustive. This means when I dissect the hypothesis into components, each part should be distinct, allowing for individual analysis. Collectively, these parts should encompass the entire problem.
Using these principles, I can construct an issue tree.
Chapter 2: What Are Issue Trees and Their Application?
An issue tree serves as a logical breakdown of the core question into simpler, smaller inquiries. Several levels of dissection can occur until we reach a manageable level for resolution.
Example Case Study
Let’s consider a hypothetical situation where we advise NextGenCoaching, a successful startup in the U.S. offering a unique platform for business and life coaching. They aim to expand internationally and seek our guidance.
With the TOSCA framework, we establish the Core Question:
How and where should NextGenCoaching expand internationally to acquire 200,000 users in two years?
We can break this question down as follows:
The initial inquiry focuses on location:
- Which markets are appealing?
- What are the criteria for evaluating these markets?
The second inquiry delves into strategy:
- What is the optimal entry method?
- Should we collaborate with a local firm, acquire an existing company, or go solo?
Finally, we must ensure completeness:
- Should we postpone international expansion?
Now that we have a robust issue tree, we can begin addressing these questions thoroughly yet efficiently.
The 80/20 Principle
We apply the 80/20 rule, prioritizing the most impactful branches and eliminating low-impact issues. Typically, 20% of issues yield 80% of insights. In this scenario, we may choose to concentrate on English-speaking markets, simplifying our analysis.
From experience, we know that partnerships provide the most effective entry strategy, leading us to deprioritize acquisition and solo entry options. Additionally, we will examine the implications of delaying international expansion to uncover deeper insights.
Analysis Plan
With our priorities established, we can develop an analysis plan to guide our work. Each inquiry will include:
- The necessary analysis.
- Sources for relevant information.
- Estimated effort required to address the question.
Based on this plan, we can organize our work along a timeline using a Gantt chart, which helps maintain oversight and facilitates communication with stakeholders.
I will elaborate on the analysis phase in a future piece.
Conclusion
There isn’t a single correct method for problem-solving, yet numerous incorrect ones exist. The 4S system is universally applicable, providing three paths, with the issue-driven approach as my preferred choice. While it is thorough and capable of generating new insights, it can be time-consuming, which is why I apply the 80/20 rule to avoid getting bogged down in trivial details.
To effectively utilize issue trees for problem-solving, follow these five steps:
- Define the problem using the TOSCA framework and articulate the Core Question.
- Disaggregate the problem into smaller, MECE inquiries.
- Prioritize the most impactful paths.
- Plan your analyses with information sources and effort estimates.
- Address the questions individually and synthesize your findings for a final solution.
As Duke Ellington noted, “A problem is a chance for you to do your best.” How will you tackle your next significant question?
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