Importance of good problem-solving and decision-making

Importance of good problem-solving and decision-making

Objectives and approach for session

McKinsey’s problem solving approach

The problem-solving cycle

Step 1: Define the problem

What is a good problem definition?

Problem statements help sharpen your thinking about the problem

One idea of what a good problem definition looks like…

Problem statement

Example problem statement: Oilco refinery

Good problem solving: Oilco refinery

Step 2: Structure the problem

Problem solving requires we answer a number of difficult questions

What is an issue tree and why is it important?

The issue tree is a valuable tool to disaggregate a problem into core sub-questions that need to be addressed to answer the main question

Basic principle of the issue tree

Good issue trees meet MECE and 80/20 rule requirements

Let’s try out an example

Example Issue tree solution

Good logic trees help prioritise issues and allocate responsibilities to team members

Purpose of prioritisation

How to prioritise

Methods for prioritising

Step 4: Issue analysis and work plan

Step 5: Analysis

Step 6: Synthesise findings

Summary versus synthesis: what’s the difference?

Summary versus synthesis: extracting a higher level of meaning

Synthesis helps develop a powerful and effective main message

Step 7: Develop recommendations

Last chance for any questions…