The 10 Step Problem Solving Approach

The following is a problem solving approach  I developed and have found it to be very useful.

1. State the high level problem in 1 sentence

2. Quantify the problem by using metrics

3. Identify key terms in the problem statement from 2. above

4. State all factors which can affect the key terms identified in 3. above

(Based on factor identified, also identify any key people/parties involved)

5. Check trends in key factors

6. Prioritize factors (from 5.) which impact the problem statement in 2. above

7. Analyse each factor thoroughly (breakdown into smallest parts)

8. Propose solutions for different factors

9. Analyse solutions based on

a) Resources/effort required

b) Impact on key players

c) Priority of factor from 6. above

10. Prioritize solutions

a) Start with ones requiring low effort and have low impact ("picking the low hanging                     fruit")

b) For similar efforts & impacts, use priority as deciding factor

Let's take an example to show how the approach can be used in a practical scenario.

1. My school is losing money
2. School expenses are higher than school income
3. Key terms - school expenses, school income
4. School expenses - salaries, administrative expenses, interest
    School income - fees, no. of students
    Key People: Salaries - teachers, admin staff, transport staff; Interest - banks; Income -                          parents/students
5. Monthly salaries have gone by 25% in the last 12 months, administrative expenses by 8% and              interest is the same. School income is flat in the period.
6. Priority - salaries, admin expenses, interest/school income
7. Salaries = staff*salary = (teaching staff + admin staff + transport staff)*salary
    No. of admin staff has gone up by 20% for same amount of work
    Admin expenses = facility expenses + transport expenses
    Transport expenses have increased by 10% due to higher diesel expenses
8. Proposed solutions
     a) Reduce admin staff by reallocating work
     b) Outsource some admin work to bring efficiency and cost saving
     c) Optimize transport routing using GPS
     d) Switch some buses to CNG
9.
Reduce admin staff - LOW effort required, HIGH impact on key players due to increase workload and panic of losing job, HIGH as salaries are the highest priority
Outsource admin work - LOW resources required, MEDIUM impact on key players because of staff panic, HIGH as salaries are the highest priority
Optimize transport routing - MEDIUM resources required due to new GPS and routing optimization system, LOW impact on key players, MEDIUM as transport is not the highest priority
Switch some buses to CNG - HIGH resources required, LOW impact on key players, MEDIUM as transport is not the highest priority
10. Solutions proposed
     a) Outsource some admin work
     b) Reduce admin staff if possible after a)
     c) Optimize routing for transport
     d) Switch some buses to CNG

The ‘6 Whats’ Problem Solving Framework

Having a framework for problem solving is important as often we wonder where and how to start. The '6 Whats' Framework is a a good one which helps you think through the problem and act accordingly.

What is the problem?

Stating the problem statement precisely is very important. Try to keep it as simple and straight forward as possible. Confused or unclear problem statements can lead to deviation from the core pain-point.

An example is “Conversion rate of free customers to paid customers is going down”

What does the problem mean?

Define all terms in the problem statement to ensure the problem is clearly defined and well understood. This is particularly important for the sake of all members of the team who are working on this problem.

In the above example, conversion rate needs to be defined very clearly. Also what going down means needs to be clearly defined.

What is the goal of a solution?

If you do not know the solution, you cannot work towards it. Again what is important is a clear definition of the solution. Clarity is key.

In the above example, a solution can be “Stopping the fall in the conversion rate and put it in an increasing trend”

What factors drive the solution?

This is where the analysis happens. You need to take the various terms of the problem statement and analyse them thoroughly. Different causal factors need to be identified and corrections need to be worked out. Analysis should be as microscopic and detailed to ensure that good causality and correlations are found. Once these factors are found, try to address them by offering different solutions.

In the above example, reasons for conversion rates need to be assessed. Data should be broken down and looked at in detail. The more detailed you get, the better would be the understanding of the problem.

What should you do now?

The implementation plan is the next step. Solutions worked out above need to be implemented with a plan in mind. Implementing incrementally is a good idea so that assessment can be made about the results of the same.

In the above example, if we analyze that making the free signup more detailed and changing the paid plans are 2 solutions, we should implement one first.

What are the developments?

The key is to implement and assess and then implement and then assess again. Implementing incrementally gives you the benefit of being able to assess each possible solution you implement. 

Tackling a Problem in Life & in Business

We are faced with problems in life and in our work on a regular basis. I have a framework which I use to tackle problems which I face in my life. Having a framework is important as it gives you a way to approach the problem at hand.

Step 1: Identify the problem very clearly. It should be defined concisely in 1 sentence. For example, a problem for a business can be “Low customer conversions”.

Step 2: Define clearly all keywords in your problem statement. Here targets are also defined. Taking the above example, state what low means, i.e. what the current rate is. Define your target for the same. After this, define customers very clearly and comprehensively. Who your customers are, the demographics, the source etc. Lastly, define what conversion means. This could be a sale, a sign up, a subscription etc.

Step 3: Work out a solution. Using tools like surveys, feedback and opinions, try to identify why this problem exists and what can be done to overcome it. For example, a business can try a free trial business model to make customers try out the service before purchasing. This creates customer trust and could lead to higher conversions.

Step 4: Implement the change you think can solve the problem. Try to highlight the same so that is clear and visible.

Step 5: Assess the developments. This is the step most of us tend to ignore/forget. It is crucial to assess and identify without any bias whether the problem has been solved. If yes, congratulations, if no, go back to Step 3 and keep reiterating till it does.