This document provides an overview of analytical thinking and problem solving techniques. It discusses the key steps in the problem solving process: defining the problem, developing hypotheses, gathering facts, analyzing data, and determining solutions. Specific techniques covered include the 5 Whys method, fishbone diagrams, force field analysis, and Pareto analysis. Questions to ask when defining a problem are also presented. The document uses examples and diagrams to illustrate how each technique can be applied to systematically solve problems.

1. ANALYTICAL THINKING & PROBLEM SOLVING
BUSINESS ANALYSIS SKILLS & TOOLS TRAINING
ANALYTICAL THINKING & PROBLEM SOLVING
9 September 2014
19 Sep 2014

2. ANALYTICAL THINKING & PROBLEM SOLVING
Problem
Hypothesis
FactsAnalysis
Solution
ANALYTICAL THINKING FOLLOWS THE SCIENTIFIC APPROACH TO PROBLEM SOLVING
29 Sep 2014

3. ANALYTICAL THINKING & PROBLEM SOLVING
THE PROBLEM
A problem - something that needs to be corrected , a discrepancy
Make sure we’re solving the right problem
Most of the problems are initially identified by our clients.
39 Sep 2014
Defining the problem drives the analytical process.
Problems can be identified by : Benchmarking, Performance reporting,
Complaints, Surveys, etc.

4. ANALYTICAL THINKING & PROBLEM SOLVING
Hypothesis is a tentative explanation for an observation
(can be proved or disproved by further investigation)
Figuring out the solution to the problem, i.e. "hypothesizing“
Hypotheses can be expressed as possible root causes of the problem
Breaking down the problem into key drivers (root causes) can help the hypothesis
process
THE HYPOTHESIS
49 Sep 2014

5. ANALYTICAL THINKING & PROBLEM SOLVING
Meaningful information
- qualitative (expert opinions)
- quantitative (measurable performance)
Gathering relevant data and information
- Critical step to support analyses (proving or disproving the hypotheses)
- Know where to dig
- Know how to filter through information
- Know how to verify
- Know how to apply
THE FACTS
59 Sep 2014

6. ANALYTICAL THINKING & PROBLEM SOLVING
A process of breaking a problem down
(through application of knowledge and various analytical techniques)
Analysis of the facts is required to prove or disprove the hypotheses
Analysis provides an understanding of issues and drivers behind the problem
Better to spend more time analyzing the data and information
(as opposed to collecting them )
Analytical techniques that can applied:
Root cause analysis
Force field analysis
Storyboarding
Etc.
THE ANALYSIS
69 Sep 2014

7. ANALYTICAL THINKING & PROBLEM SOLVING
Solutions - final recommendations presented to our clients
Ensure the solution fits the client
– solutions are useless if they cannot be implemented
Running an actual example through the solution
- effective way of testing the effectiveness and viability of the solution
THE SOLUTION
79 Sep 2014

8. ANALYTICAL THINKING & PROBLEM SOLVING
89 Sep 2014
TECHNIQUES FOR ANALYSIS

9. ANALYTICAL THINKING & PROBLEM SOLVING
THE 5 WHYS EXAMPLE FROM TOYOTA
Problem: A machine failed because a fuse blew.
(Replacing that fuse would be the obvious solution but this way only the
symptom of the real problem would have been addressed. )
The team asked themselves why the fuse blew. (The 1st why)
The fuse blew because the bearing didn’t have enough lubrication.
Why did the bearing not have enough lubrication? (The 2nd Why)
The bearing didn’t have enough lubrication because the lubrication pump was
not working properly.
Why was the lubrication pump not working properly? (The 3rd Why)
The lubrication pump was not working properly because the pump axle was worn.
Why was the pump axle worn? (The 4th Why)
The pump axle was worn because sludge had seeped into the pump axle.
AND this was the ROOT CAUSE
The 5th Why told the team that the sludge had seeped into the pump axle because
there was no sieve to strain the sludge out.
The result - Toyota attached a sieve to the pump and the problem of the machine
failure was solved.
109 Sep 2014

10. ANALYTICAL THINKING & PROBLEM SOLVING
THE ANALYSIS
5
WHYs
AN EXAMPLE
TURN LIGHTS ON AT A LATER TIME
119 Sep 2014

11. ANALYTICAL THINKING & PROBLEM SOLVING
ROOT CAUSE ANALYSIS - FISH BONE DIAGRAM
Example: A manager is having problems with an uncooperative branch office.
Step 1 – Identify the problem
Step 2 – Work out the major factors involved
E.g. Site, Task, People, Equipment, Control
Uncooperative
Branch Office
Uncooperative
Branch Office
- also known as cause and effect diagram
- Provides a systemic way of looking at effects and causes
129 Sep 2014

12. ANALYTICAL THINKING & PROBLEM SOLVING
ROOT CAUSE ANALYSIS - FISH BONE DIAGRAM
Step 3 – Identify possible causes
139 Sep 2014

13. ANALYTICAL THINKING & PROBLEM SOLVING
14
ANALYTICAL TECHNIQUES - FORCE FIELD ANALYSIS
What other business processes will be
affected by the change?
What are the risks ?
What business benefit will the
change deliver?
Who supports the change? Who is
against it? Why?
How easy will it be to make the change? Do
you have enough time and resources to
make it work?
What costs are involved?
9 Sep 2014

14. ANALYTICAL THINKING & PROBLEM SOLVING
9 Sep 2014 15
PARETO ANALYSIS
Simple technique for prioritizing problems
Based on Pareto Principle – 80/20 rule
Idea – 80% of problems may be caused by 20% of causes
# Problem (Step 1) Cause (Step 2) Score
(Step 3)
1 Phones aren't answered quickly enough. Too few service center
staff.
15
2 Staff seem distracted and under pressure. Too few service center
staff.
6
3 Engineers don't appear to be well organized.
They need second visits to bring extra parts.
Poor organization and
preparation.
4
4 Engineers don't know what time they'll
arrive. This means that customers may have
to be in all day for an engineer to visit.
Poor organization and
preparation.
2
5 Service center staff don't always seem to
know what they're doing.
Lack of training. 30
6 When engineers visit, the customer finds
that the problem could have been solved
over the phone.
Lack of training. 21
Step 1: Identify and List Problems
Step 2: Identify the Root Cause of
Each Problem
Step 3: Score Problems
Step 4: Group Problems Together
By Root Cause
Step 5: Add up the Scores for Each Group
Step 6: Take Action

15. ANALYTICAL THINKING & PROBLEM SOLVING
9 Sep 2014 16
PARETO ANALYSIS
Pareto Analysis shows
- the most important problem to solve,
- how severe the problem is.
Lack of training
(items 5 and 6) – 51 complaints.
Too few service center staff
(items 1 and 42 – 21 complaints.
Poor organization and preparation
(items 3 and 4) – 6 complaints

16. ANALYTICAL THINKING & PROBLEM SOLVING
Basic Questions to Ask in Defining the Problem (regardless of the technique used)
• Who is causing the problem?
• Who says this is a problem?
• Who are impacted by this
problem?
• Etc.
• What will happen if this problem
is not solved?
• What are the symptoms?
• What are the impacts?
• Etc.
• Where does this problem occur?
• Where does this problem have
an impact?
• Etc.
Who What Where
When
• When does this problem occur?
• When did this problem first start
occurring?
• Etc.
• Why is this problem occurring?
• Why?
• Why?
• Etc.
Why How
• How should the process or
system work?
• How are people currently
handling the problem?
• Etc.
179 Sep 2014

17. ANALYTICAL THINKING & PROBLEM SOLVING
189 Sep 2014

18. ANALYTICAL THINKING & PROBLEM SOLVING
19
QUESTIONS?
9 Sep 2014