Analytical Thinking Training

A Course on Analytical Thinking

of 58 Course Outline ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

of 58 Course Objectives ,[object Object],[object Object],[object Object]

of 58 At the end of this session, participants should be able to…. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

of 58 Analytical Thinking follows the scientific approach to problem solving Problem Hypothesis Facts Analysis Solution

of 58 Defining the Problem ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Problem Hypothesis Facts Analysis Solution

of 58 Formulating the Hypotheses ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Problem Hypothesis Facts Analysis Solution

of 58 Collecting the Facts ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Problem Hypothesis Facts Analysis Solution

of 58 Conducting the Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Problem Hypothesis Facts Analysis Solution

of 58 Developing the Solution ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Problem Hypothesis Facts Analysis Solution

TOOLS AND TECHNIQUES FOR "DEFINING THE PROBLEM"

of 58 Problem Identification ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

of 58 Getting to the "Root" of the Problem ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

of 58 Root Cause Analysis Technique - Five Why’s ,[object Object],Why? Why? Why? Why? Why? Employee turnover rate has been increasing Employees are leaving for other jobs Employees are not satisfied Employees feel that they are underpaid Other employers are paying higher salaries Demand for such employees has increased in the market

of 58 Root Cause Analysis Technique – Fishbone Diagram The value of the Fishbone Diagram is that it provides a method for categorizing the many potential causes of problems or issues in an orderly way and in identifying root causes Cause Detail Cause Detail Cause Detail Cause Detail Fishbone Diagram (a.k.a. Cause and Effect Diagram) is an analysis tool that provides a systematic way of looking at effects and the causes that create or contribute to those effects. Result (Problem)

of 58 Other Root Cause Analysis Techniques ,[object Object],[object Object],[object Object],[object Object]

of 58 Basic Questions to Ask in Defining the Problem (regardless of the technique used) ,[object Object],[object Object],[object Object],[object Object],Who What Where When Why How ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

TOOLS AND TECHNIQUES FOR "FORMULATING THE HYPOTHESES"

of 58 Issue Diagram is an effective method for breaking down problems and formulating hypotheses Problem Issue #1 Issue #2 Issue #3 Hypothesis #1A Hypothesis #1B Hypothesis #1C Hypothesis #1D Key Questions #1C-a Key Questions #1C-b Key Questions #1C-c Key Questions #1C-d

of 58 Key Components of Issue Diagram Issues Hypotheses Key Questions Questions which need to be answered or topics which need to be explored in order to solve a problem Speculative answers for issues that are phrased as questions and/or areas of exploration for issue phrased as topics Questions that probe hypotheses and drive the primary research required to solve the problem

of 58 Identifying the Issues Problem Issue #1 Issue #2 Issue #3 Client wants to decide whether they should divest their widget X manufacturing business Is there a market for divesting this business? Is this a cost effective solution for the client? What impacts will there be for the displaced employees? What key topics should we explore to help the client solve this problem?

of 58 Key to Identifying Issues ,[object Object],[object Object],[object Object]

of 58 Formulating the Hypotheses Problem Issue #1 Issue #2 Issue #3 Hypothesis #1A Hypothesis #1B Hypothesis #2A Hypothesis #2B Hypothesis #3A Hypothesis #3B Market Interest? Cost Effectiveness? Impacts on Employees? Etc. Etc. Etc. Divest Widget X Business? The market is large. What are some possible answers to the issues? Large percentage of employees will likely retire in two years.

of 58 Framing the Key Questions Problem Issue #1 Issue #2 Issue #3 Hypothesis #1A Hypothesis #1B Hypothesis #2A Hypothesis #2B Hypothesis #3A Hypothesis #3B Market Interest? Cost Effectiveness? Impacts on Employees? Divest Widget X Business? The market is large. What questions need to be answered to prove/disprove the hypothesis? Large percentage of employees will likely retire in two years. Key Question #1A-a Key Question #1A-b Key Question #1A-c How many players are there in the market? How many are large enough to take on the client's business? Key Question #3A-a Key Question #3A-b Key Question #3A-c How many employees are 50 years old or older and interested in retiring?

of 58 Common Pitfalls in Creating Issue Diagram Issues Hypotheses Key Questions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

of 58 Key Messages ,[object Object],[object Object],[object Object]

of 58 Brainstorming – A Method for Identifying Issues and Formulating Hypotheses ,[object Object],[object Object],[object Object],[object Object],[object Object]

of 58 Tips for Brainstorming ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

TOOLS AND TECHNIQUES FOR "COLLECTING THE FACTS"

of 58 Getting to the Facts ,[object Object],[object Object],[object Object],[object Object],[object Object]

of 58 Using the Issue Diagram to identify data and information needs Problem Issue #1 Issue #2 Issue #3 Hypothesis #1A Hypothesis #1B Hypothesis #2A Hypothesis #2B Hypothesis #3A Hypothesis #3B What information or data needs to be collected to answer these questions? Key Question #1A-a Key Question #1A-b Key Question #1A-c How many are large enough to take on the client's business? Key Question #3A-a Key Question #3A-b Key Question #3A-c How many employees are 50 years old or older and interested in retiring? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

of 58 Data Collection Techniques Using Available Information Observing Interviewing Administering Written Questionnaires Conducting Focus Groups Using data that has already been collected by others Systematically selecting, watching and recording behavior and characteristics of people, objects or events Oral questioning of respondents, either individually or as a group Collecting data based on answers provided by respondents in written form Facilitating free discussions on specific topics with selected group of participants Technique ,[object Object],[object Object],Description Tools ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

of 58 Importance of Combining Different Data Collection Techniques ,[object Object],Qualitative Techniques (Flexible) Quantitative Techniques (Less Flexible) VS. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

TOOLS AND TECHNIQUES FOR "CONDUCTING THE ANALYSIS"

of 58 Conducting the Analysis ,[object Object],[object Object],What are the most important issues? Pareto Analysis What forces can influence the problem? What are the core competencies of the client? What performance areas are weak? Force Field Analysis SWOT Benchmarking

of 58 Specific Sequential Steps that lead up to the Analysis Make sure you know what you are trying to solve – Clearly defined issues or questions drive the analysis! 1 2 3 Once you’ve matched up the analytical tools against the question or issue, then go out and collect the facts Match up the clearly defined question or issue with the appropriate analytical tool(s)

of 58 Apply analytical tools and move back upstream Problem Issue #1 Issue #2 Issue #3 Hypothesis #1A Hypothesis #1B Hypothesis #2A Hypothesis #2B Hypothesis #3A Hypothesis #3B What analysis needs to be done to answer this question? Key Question #1A-a Key Question #1A-b Key Question #1A-c How many are large enough to take on the client's business? Key Question #3A-a Key Question #3A-b Key Question #3A-c How many employees are 50 years old or older and interested in retiring? # of companies in industry Revenues for last 5 years Age of employees Employee interest level in retiring 1. Start with clearly defined issues or questions 2. Select the Analytical Tool Benchmarking 3. Collect required information per the Analytical Tool selected 4. Once you complete your analysis, move back upstream to answer the key question you started with

of 58 Analytical Techniques ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

of 58 Benchmarking ,[object Object],[object Object],[object Object],[object Object],[object Object]

of 58 Benchmarking Example Air Force . . . . . . . . . . . 75 Days Army . . . . . . . . . . . . . . . 96 Days Canadian Army . . . . . . 145 Days Navy . . . . . . . . . . . . . . . 116 Days Average Days for Source Selection

of 58 SWOT – Strengths Weaknesses Opportunities Threats ,[object Object],[object Object],[object Object],[object Object],[object Object]

of 58 SWOT Example Internal Assessment of the organization, its people, services, competencies, etc. External Assessment of direct and indirect forces, social, economic, political, etc. Client has a global infrastructure to service all types of customers Strengths Weaknesses Services are in high demand in most parts of the world Client has limited resources for expanding its global reach Key processes are not very cost competitive when compared to other service providers Untapped demand exists in almost half of the World New Technologies make it possible to expand service reach Other clients are investing in newer technologies Some clients are entering into strategic partnerships to expand their global footprint Threats Opportunities

of 58 Force Field ,[object Object],[object Object],[object Object],[object Object]

of 58 Force Field Example ,[object Object],[object Object],[object Object],[object Object],Direct – More Important Indirect – Less Important Positive Forces – Promotes the Solution Problem: Agency is not strategically focused Negative Forces – Inhibits the Solution ,[object Object],[object Object],[object Object]

of 58 Cost Benefit ,[object Object],[object Object],[object Object],[object Object],[object Object]

of 58 Cost Benefit Example ,[object Object],[object Object],[object Object],[object Object],[object Object],The Costs (minuses) The Benefits (pluses) Choice A: Proposed Solution - Design and develop an on-line database system ,[object Object],[object Object],[object Object],[object Object],[object Object],Choice B: Do Nothing – Status Quo ,[object Object],[object Object],[object Object],Change in Costs Choice A – B = $ 700,000 Change in Benefits Choice A – B = $ 950,000 Net Benefit = $ 250,000

of 58 Impact Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object]

of 58 Impact Analysis Tools ,[object Object],[object Object],[object Object],[object Object],[object Object]

of 58 Pareto Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object]

of 58 Pareto Chart Measure Categories Causes, Products, Mfg. Lines, Operators Machines, Defect Types, etc. Downtime, Errors, # of Employees, etc.

of 58 Key Messages ,[object Object],[object Object],[object Object],[object Object]

TOOLS AND TECHNIQUES FOR "DEVELOPING THE SOLUTION"

of 58 Basic Concepts ,[object Object],[object Object],[object Object],[object Object]

of 58 Common Land Mines that Blow Analytical Thinking Apart ,[object Object],[object Object],[object Object],[object Object]

of 58 Summary ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

of 58 Questions and Comments Thanks for your participation!

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