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Analytical Thinking Training
Analytical Thinking Training
Course Outline
I. Overall Process
II. Defining the Problem
III. Formulating the Hypothesis
IV. Collecting the Facts
V. Conducting the Analysis
VI. Developing the Solution
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Course Objectives
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At the end of this session, participants should be able
to….
Problem
Solution Hypothesis
Analysis Facts
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Defining the Problem Solution
Problem
Hypothesis
Analysis Facts
Definition:
• A problem is a situation that is judged as something that needs to be
corrected – implies that a state of "wholeness" does not exist
Importance:
• It is our job to make sure we’re solving the right problem – it may not be
the one presented to us by the client. What do we really need to solve?
Basic Concepts:
• Most of the problems are initially identified by our clients
• Defining the problem clearly improves focus – it drives the analytical
process
• Getting to a clearly defined problem is often discovery driven – Start
with a conceptual definition and through analysis (root cause, impact
analysis, etc.) you shape and redefine the problem in terms of issues
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Formulating the Hypotheses Solution
Problem
Hypothesis
Analysis Facts
Definition:
• Hypothesis is a tentative explanation for an observation that
can be tested (i.e. proved or disproved) by further
investigation
Importance:
• Start at the end - Figuring out the solution to the problem,
i.e. "hypothesizing", before you start will help build a
roadmap for approaching the problem
Basic Concepts:
• Hypotheses can be expressed as possible root causes of
the problem
• Breaking down the problem into key drivers (root causes)
can help formulate hypotheses
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Collecting the Facts Solution
Problem
Hypothesis
Analysis Facts
Definition:
• Meaningful information (has merit – not false) that is qualitative (expert
opinions) or quantitative (measurable performance) to your decisions
Importance:
• Gathering relevant data and information is a critical step in supporting
the analyses required for proving or disproving the hypotheses
Basic Concepts:
• Know where to dig
• Know how to filter through information
• Know how to verify – Has happened in the past
• Know how to apply – Relates to what you are trying to solve
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Conducting the Analysis Solution
Problem
Hypothesis
Analysis Facts
Definition:
• The deliberate process of breaking a problem down through the
application of knowledge and various analytical techniques
Importance:
• Analysis of the facts is required to prove or disprove the hypotheses
• Analysis provides an understanding of issues and drivers behind the
problem
Basic Concepts:
• It is generally better to spend more time analyzing the data and
information as opposed to collecting them. The goal is to find the
“golden nuggets” that quickly confirm or deny a hypothesis
• Root cause analysis, storyboarding, and force field analysis are some
of many analytical techniques that can applied
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Developing the Solution Solution
Problem
Hypothesis
Analysis Facts
Definition:
• Solutions are the final recommendations presented to our
clients based on the outcomes of the hypothesis testing
Importance:
• Solutions are what our clients pay us for…
Basic Concepts:
• It is important to ensure the solution fits the client –
solutions are useless if they cannot be implemented
• Running an actual example through the solution is an
effective way of testing the effectiveness and viability of the
solution
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TOOLS AND TECHNIQUES
FOR
Employee
turnover
rate has Why? Why? Why? Why? Why?
been
increasing
Employees are Employees are not Employees feel Other employers Demand for such
leaving for other satisfied that they are are paying higher employees has
jobs underpaid salaries increased in the
market
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Root Cause Analysis Technique – Fishbone Diagram
Result (Problem)
Detail Detail
Cause Cause
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TOOLS AND TECHNIQUES
FOR
Hypothesis #1A
Issue #3
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Key Components of Issue Diagram
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Identifying the Issues
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Formulating the Hypotheses
Etc.
Etc. 24 of 58
Framing the Key Questions
Large percentage of
employees will likely retire Key Question #3A-a
Impacts on in two years.
Employees?
How many
Hypothesis #3A Key Question #3A-b employees are 50
Issue #3 years old or older
and interested in
Hypothesis #3B Key Question #3A-c retiring?
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Common Pitfalls in Creating Issue Diagram
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Brainstorming – A Method for Identifying Issues and
Formulating Hypotheses
FOR
• Number of
companies in the
How many are industry
Key Question #1A-a large enough to • Revenues for the
take on the client's last 5 years
business? • Etc.
Issue #1
Hypothesis #1A Key Question #1A-b
Hypothesis #1B
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Data Collection Techniques
FOR
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Specific Sequential Steps that lead up to the Analysis
Make sure you know what you are trying to solve – Clearly
1 defined issues or questions drive the analysis!
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Apply analytical tools and move back upstream
External Assessment of direct and indirect forces, social, economic, political, etc.
Opportunities Threats
Untapped demand exists in almost half Other clients are investing in newer
of the World technologies
New Technologies make it possible to Some clients are entering into strategic
expand service reach partnerships to expand their global
footprint
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Force Field
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Force Field Example
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Impact Analysis Tools
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Pareto Analysis
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Pareto Chart
# of Employees, etc.
Downtime, Errors,
FOR
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Summary
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Questions and Comments
Thanks for
your participation!
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