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1、Session 2: Problem StructuringTheory of problem structuringPractical application by “building a case for multiple possible uses such as A proposal you make An answer you give A position you takeTheory: Steps in Problem StructuringFirst: how did you arrive at this position and why is it of interest t
2、o me? Four distinct sub-steps here:Business as usual: Things are normalA problem or complication arisesAn obvious question then arises: E.g. “What to do about it?In response to this question you develop an answer (or a proposition or recommendation) ComplicationQuestionSomething went wrongWhat do we
3、 do?Something could go wrongHow can we prevent it?Something changedWhat should we do?Something could changeHow should we react?Heres what you might expect to find in itDo we find it?Heres someone with a different point of viewWho is right?In this situation we have three alternativesWhich one should
4、we take?From: B. Minto, The Pyramid PrincipleSteps in Problem Structuring (2)Second: capture attention of reader or develop depth of argumentEstablish a question, answer it, move to the next level of refinement. Vertical linkagesPigs should be kept as petsSteps in Problem Structuring (3)Third: convi
5、nce the reader or develop support for argumentInductive or deductive logic. Horizontal linkagesTypical problemsOverlaps (not mutually exclusive)Gaps (not collectively exhaustive)Not commonly accepted logic of orderingTemporal (A before B before C)Structural (US Division, European Division)Other basi
6、c relationship:Part / wholeOppositionSimilarityImportanceThe problem with ACME Bottle“ACME Bottle has been losing money. “Diversified, owner of 49% of ACME, has received an offer to sell ACME for $97 million. You have been hired to advise Diversifieds Management on what to do. Outline the report you
7、 will write. On a single sheet of paper:Define accurately and clearly the problem facing Diversified.Break down the problem into its componentsSpecify one hypothesis that would help address each componentDescribe the data and analysis that will confirm or disconfirm each hypothesisIs ACME worth more
8、 than $97million?ACME report: Inductive Should Dude keep ACME and focus on selling value added products?Will a small increase in profits bring ACME above $97 million?Does industry performance suggest that a small increase is reasonable?Do players have to sell either value-added or commodity products
9、 to be successful?Do ACMEs R&D & quality results match those of leading value-added players?Is ACMEs technically knowledgeable sales-force among the most respected in the industry?Should ACME focus on selling value added products?Are ACMEs resources and capabilities better suited to the value-added
10、sector?ACME report: DeductiveIs ACME worth more than $97million?Should Dude keep ACME and focus on selling value added products?Will ACME realise greater value if it focuses on either high value-added or commodity products?Will a small increase in profits bring ACME above $97 million?Does industry p
11、erformance suggest a small increase is reasonable?Do players have to sell either high value-added or commodity products to be successful?Does ACMEs unfocused strategy result in higher costs, lower prices and low profitability?Are ACMEs cost and quality positions in line with industry average?Do ACME
12、s R&D & quality results match those of leading value-added players?Is ACMEs technically knowledgeable sales-force among the most respected in the industry?Does ACMEs direct sales force and quality focus create the high cost structure of a value-added player?Do high market share objectives cause ACME
13、 sales reps to price as low as commodity players?Should ACME focus on selling value added products?Are ACMEs resources and capabilities better suited to the value-added sector?Do gains from high prices for value added products outweigh loss in sales volumes?Two ways to develop a line of questioning
14、or a presentationGrouping (inductive)Governing thoughtA group of independent thoughts that support the same conclusionAll answer the same question “what, “how, or “whyAll same “type of noun examples, actions, reasonsCombine to support higher level of abstractionArgument (deductive)Governing thoughtA
15、 logical progression of thoughtsFrom premise (statement about situation) to comment to implicationGoverning thought relies heavily on implication+How can this stuff be useful to us?Winning support for an initiative at workCracking a case at an interviewWorking as a consultantWriting a report at LBSU
16、sing the material in this courseAssignment: Write a Business as Usual / Complication / Question sequenceBrainstorm for answersChoose one of these answers as your “overarching answerLump the other answers in separate “bagsRe-lump until the logic for these groupings is clear to youPresent your case to
17、 your colleaguesIs your answer:About strategy?Clear?Simple enough to answer in this course?Does it pass the “So What test? In other words, is it not obvious without any further analysis?Is your logic that supports this answer clear and convincing to your audience?What likely gaps are there?What like
18、ly overlaps are there?What did we learn today?Theoretical and applied perspectives on how to:Set up a problemDevelop its solution in depthDevelop its solution in breadthApplication exercise (30, Taunton)Log on to the Lessons Learned BoardClick on “manage my diary and then on “create my diaryIn the “background field explain the “business as usual scenario and the “complicationIn the “question field write your question that follows from the complicationIn the “my answer at the moment field brainstorm possible answersIn the “first session field write your answ
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