Mgts7301 - lecture 2 - structured problem solving
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This document summarizes a lecture on structured problem solving and business analysis techniques. It introduces Minto's Pyramid Principle as a standard framework for logical analysis and clear communication. The lecture outlines building a Minto Pyramid through collecting facts, logical grouping, and synthesis. It assigns students to analyze a case study on Costco using the pyramid structure and present key insights in a 10-slide presentation with annotations, due in one week.
Mgts7301 - lecture 2 - structured problem solving
- 1. Lecture 2 Structured Problem Solving Lecturer: Dr. Preston Teeter MGTS7301 Tools and Techniques for Business Analysis
- 2. Before we start: 1) Phones/electronics silent, off and away! 2) Say hello to the people around you; you need a small group to discuss questions MGTS7301 Tools and Techniques for Business Analysis
- 3. Outline • Complexity and decision making • Minto’s Pyramid Principle • Activity: GoPro Case
- 5. Complexity and decision making These days, we are often faced with highly complex problems that contain a number of inter-related issues. Often, we do not possess all relevant information and face severe time pressures to arrive at a solution. What’s more, we must then communicate how we arrived at our eventual solution in a clear and logical manner. Consider the accident on Three Mile Island in 1979. Which of these elements were present? Watch video
- 6. ‘Everything should be made as simple as possible, but not simpler.’ Albert Einstein
- 7. Common mistakes: • Incorrect problem definition • (Over)-reliance on ‘gut feelings’/intuition • Improper prioritisation • Number of facts ignored • Recommendations incomplete • Unable to communicate recommendations Complexity and decision making
- 8. Decisions Conclusions Clarity Critical Thinking Clarity Conclusions Decisions Automatic Thinking Weak foundations for decisions, less time getting clear, and more time needed for decisions Strong foundations for decisions, more time getting clear, and less time needed for decisions Complexity and decision making
- 10. Barbara Minto • Harvard MBA • McKinsey consultant • Principle now standard framework for analysis and communication at all major consulting and auditing firms
- 11. The Pyramid Principle • Facts need to be grouped logically – Enables memory and communication • Groups then need to be structured in a hierarchy • More than just groupings – Rigorous analysis – Creates clarity – Results in insights
- 12. The Pyramid Principle Facts So what? Findings So what? Why/How Why/How Why/How Key Line Governing Thought
- 13. The Pyramid Principle Rules 1. Ideas at each level must summarise, and eventually synthesise, the ideas or facts grouped below them 2. Groupings must be logical, similar ideas or facts 3. Ideas/facts should be in a logical order
- 15. Logical orders Grouping type Example Deductive (logical argument) Only birds have feathers. I have feathers. Therefore, I must be a bird. Chronological 1st, 2nd, 3rd Design, build, operate Structural America, Europe, Asia, Australasia Comparative Most important, 2nd most important, etc.
- 16. MECE • Groupings must be MECE – Mutually exclusive • No (or limited) overlap between groups – Collectively exhaustive • Comprehensive of ideas/facts below
- 19. Introduction • DO NOT start presentation/report with recommendation! • An introduction is always necessary – Begin with what is known (less confrontational) – Allows audience/reader to focus – Allow audience/reader to follow argument
- 20. Introduction • Situation – Understandable and agreeable • Complication – What happened? What’s the problem? • Question – What decisions need be made? • Answer – Your governing thought/recommendation
- 22. The Pyramid Principle Steps in building a pyramid 1. Determine question or problem 2. Collect all the facts (use post-it notes) 3. Group them logically 4. Test and re-test MECE rule 5. Continue to group and synthesise 6. Develop governing thought, and SCQA 7. Test and re-test entire pyramid 8. Design presentation/report going in reverse
- 24. Assignment #1 • Using the case provided, you must: – Analyse the case and take down all the KEY FACTS (minimum 30, maximum 60). – Organise your facts into a Minto Pyramid, this pyramid will be an appendix to your slide deck. – In 10 slides or less, translate your pyramid into a slideshow presentation. Use annotations in the speaker’s note function to give details not apparent from the slides. (Title slide is not counted.) – Submit by converting the speaker’s notes view (shows slide and annotations) to PDF. Submit the PDF.
- 25. Assignment #1
- 26. Assignment #1 DON’T • Make wordy or unprofessional slides with numerous spelling or grammatical errors • Plagiarise (including sentences from the case!) • Give your pyramid or slideshow to other students • Submit late (lose 1 point per day, even if just an hour late) • Forget to submit in pdf notes view format
- 27. Assignment #1 Consultation • Draft review ONLY AVAILABLE in Lecture #3 – Bring draft of pyramid to class – Partial drafts are fine, but limited feedback can be provided – Draft review will be provided one-on-one after brief lecture • After Lecture #3, please continue to ask questions during class, in the forum or during consultation. However, drafts cannot be reviewed after this point. • Due Date: 30 August 2pm • Case: Costco, available on the course site (Assessment)
- 29. GoPro Case Founded in 2002 by American Nick Woodman, GoPro manufactures action cameras and develops its own mobile apps and video-editing software. Following its IPO in 2014, the company’s share price tripled in price in just over three months. Watch video
- 30. Quiz #2 Based on the information in the case, please answer the following: 1. What was the major business question going forward for GoPro? Write out a brief SCQ. (No need for an Answer) 2. What would a Minto’s Pyramid of the GoPro situation start to look like? Start by analysing the products on pages 7 and 8, according to the MECE rule.
- 31. Questions?
Editor's Notes
- #8: Gut feelings – ‘Blink” firefighter example, told everyone to get out, pressure was in fact building that would result in the building collapsing
- #9: Similar to deductive vs inductive thinking, explain and give an example or two (hypothesis testing (can I confirm what I think?) vs. gathering data and arriving at an informed, perhaps novel, conclusion) Deductive thought can easily lead to biased and misinformed decision making
- #13: 12