How to frame a problem and design your way to the solution?

Takeaways from the McKinsey Mind

Photo by Paulius Dragunas on Unsplash

Using frameworks to solve problems helps standardize the solution generation process and reduce distractions during the analysis journey.

Success in the consulting world and professional life, in general, depends on solving problems quickly and accurately.

But how can we standardize our problem-solving skills and produce meaningful outcomes of our analysis?

The following will be a summary of the first pillar of the McKinsey problem-solving model.

The strategic problem-solving model of McKinsey is based on three main elements:

• Analyzing the problem
• Managing stakeholders and teams
• Presenting outcomes

We will focus on the first pillar of the strategic problem-solving framework and the fundamental elements of how to analyze problems for driving insights.

1 — Problem framing

Adapted from the McKinsey Mind by Ethan M. Rasiel

The goal of problem framing is to break down the main issue into sub-issues and the sub-issues into a set of questions that can be answered by yes or no.

Framing the problem is better done by the use of frameworks. A framework saves you time and helps prioritize your options. Frameworks help you organize what you are dealing with by breaking it down into its fundamental components.

Try to understand why the problem is a problem through asking a lot of “Whys” and leaving the “Hows” for later.

Forming a hypothesis after breaking down the problem into its components

Consider the following while framing a problem:

• Use Logic Tree Framework will help you see the elements of the problem to tackle them.

Forming a hypothesis about the problem you are dealing with will save you the time to avoid dead ends that do not lead anywhere. Instead of going through sequential analysis, A leads to B,…. and then Z. You will start from Z and backcast to A.

Example of a hypothesis: “we can be more competitive by reducing manufacturing costs?”

• Framing your hypothesis at the start of the problem-solving process you rely less on facts and more on intuition.
• Test your hypothesis in a brainstorming session with your friends in a Quick and Dirty way or by asking questions that can be answered quickly.

Example: Do we need to cut labor costs? Check if your operations are overstaffed by comparing productivity to the industry average.

Breaking down the main problem into smaller subproblems and then to questions — Example from the Oil&Gas industry — Image by the author

2 — Designing the analysis

Adapted from the McKinsey Mind by Ethan M. Rasiel

Every problem can be broken down into sub-problems and then into questions. Then tackle the path of least resistance first, the path you can answer faster. This will make you get a lot done in a short period of time.

Consider the following while designing your analysis:

• Do not dig deep in the analysis to allow yourself and your team to take actions early rather than perfecting.
• Extreme precision is not necessary. Give range to answer get your numbers.
• Use analogy to get insights from previous events, products, and problems when you face completely new ones.

Creating analysis design plan — Image by the author

3— Gathering data

Adapted from the McKinsey Mind by Ethan M. Rasiel

Consider the following while gathering information:

• Gather information based on the design analysis to balance intuition with fact-driven analysis.
• Do not try to collect all the data from different sources. Get a few reliable ones instead.
• Interviews can also provide a good way to drive information from experts and professionals.

4 — Interpreting

Adapted from the McKinsey Mind by Ethan M. Rasiel

Here you figure out what it means. Consider the following while interpreting results:

• Gathering data is easy but driving insights that can be translated into business advice to your client is much harder.
• You should put in your mind that you need to be quick and right while driving insights through asking what and the so what questions.
• It is all about insights not about research and analysis.

To get better in driving insights, make a chart every day and ask yourself “what are the three most important things I learned today?”

• Whenever you come up with something, do a quick check to make sure it is accurate.
• Define the limits of your analysis and incorporate them in your final document.

Conclusion

Whenever possible, use frameworks to speed up and standardize your problem-solving skills. To solve problems, use the logic tree framework to break them down into subproblems, and then create hypotheses that you will test. To generate relevant analysis, gather relevant data and combine it with intuition and facts. Drive insights, confirm them, and define their limits.