Edit from an article from SLOAN MANAGEMENT REVIEW
sloanreview.mit.edu/article/the-most-underrated-skill-in-management/
There are few management skills more powerful than the discipline of clearly articulating the problem you seek to solve before jumping into action.
sloanreview.mit.edu/article/the-most-underrated-skill-in-management/
There are few management skills more powerful than the discipline of clearly articulating the problem you seek to solve before jumping into action.
Academic research suggests that the
ability to incorporate new ideas and technologies into existing ways of doing
things plays a big role in separating leaders from the rest of the pack, It is easier to manage a sequence of bite-sized
changes than one huge reorganization or change initiative but - while many strive for continuous change and learning - few actually achieve
those goals on a regular basis.
In the late 1990s, one of the authors, Don Kieffer, was
ready to launch a big change initiative: implementing the Toyota production
system in one of Harley-Davidson Inc.’s engine plants and hired a seasoned
consultant: Hajime Oba, But in Don’s office, when he started asking
questions: When do we start? What kind of results should I expect? How much is
it going to cost me? But, Mr. Oba wouldn’t answer those questions. Instead he
responded repeatedly with one of his own: “Mr. Kieffer, what problem are you
trying to solve?”
Don was perplexed. He was ready to spend money and he had one
of the world’s experts on the Toyota production system in his office, but the
expert (Mr. Oba) wouldn’t tell Don how to get started. To Don, it seemed like a word game. Eventually the consultant walked out of Don’s office. It was later realized that Mr. Oba was trying to teach one of
the foundational skills in leading effective change: formulating a clear
problem statement.
We have now come to
believe that problem formulation is the single most underrated skill in all of
management practice. There are few questions in business more powerful than “What
problem are you trying to solve?”
As valuable as good problem formulation can be, it is rarely
practiced because (cognitive scientists) suggest that “jumping to conclusions” can be effective, particularly
when done by experts facing extreme time pressure, like fighting a fire or
performing emergency surgery. But, when making change, neglecting to formulate
a clear problem statement often prevents innovation and leads to wasted time
and money. In this article, we hope to both improve your problem formulation
skills
How Our Minds Solve Problems
Human brain has at least two different methods for tackling problems and which
method dominates is situational : automatic processing and conscious
processing. They are fundamentally different and happen at different speeds.
Conscious Processing : happens in the part of the brain that
you control and you are aware that you are
using conscious processing. It is the only process in the brain capable of forming a mental
picture of a situation at hand and then playing out different possible
scenarios, even if those scenarios have never happened before. With this
ability, humans can innovate and learn in ways not available to other species. But, despite its power, conscious processing is “expensive” in at
least three senses (1) it is slow (2) our capacity to do this is quite because there is no "background processing" (3) it burns scarce energy and declines when
people are tired, hungry, or distracted. Because of these costs, the human
brain system has evolved to “save” conscious processing for when it is really
needed and, when possible, relies on the “cheaper” automatic processing mode.
Automatic Processing : works differently as we don’t have control over it or even feel it happening. Instead,
we are only aware of the results, such as a thought that simply pops into your
head or a physical response like hitting the brake when the car in front of you
stops suddenly. You cannot directly instruct your automatic processing
functions to do something; instead, they constitute a kind of “back office” for
your brain. When a piece of long-sought-after information just pops into your
head, hours or days after it was needed, you are experiencing the workings of
your automatic processing functions.
When we tackle a problem consciously, we proceed logically,
trying to construct a consistent path from the problem to the solution. In
contrast, the automatic system works based on what is known as association or
pattern matching. When confronted with a problem, the automatic processor tries
to match that current challenge to a previous situation and then uses that past
experience as a guide for how to act. Every time we instinctively react to a
stop sign or wait for people to exit an elevator before entering, we rely on
automatic processing’s pattern matching to determine our choice of action.
The automatic
processing functions are the only parts of the brain capable of processing
information quickly enough to return a serve in tennis or hit a baseball.
Psychologist Gary Klein has documented how experienced professionals who work
under intense time pressure, like surgeons and firefighters, use their past
experience to make split-second decisions. Successful people in these
environments rely on deep experience to almost immediately link the current
situation to the appropriate action.
However, because it relies on patterns identified from
experience, automatic processing can bias us toward the status quo and away
from innovative solutions. It should come as little surprise that breakthrough
ideas and technologies sometimes come from relative newcomers who weren’t
experienced enough to “know better.” Research suggests that innovations often
result from combining previously disparate perspectives and experiences.
Furthermore, the propensity to rely on previous experiences can lead to major
industrial accidents like Three Mile Island if a novel situation is misread as
an established pattern and therefore receives the wrong intervention.
That said, unconscious processing can also play a critical
and positive role in innovation. As we have all experienced, sometimes when
confronting a hard problem, you need to step away from it for a while and think
about something else. There is some evidence for the existence of such
“incubation” effects. Unconscious mental processes may be better able to combine
divergent ideas to create new innovations. But it also appears that such
innovations can’t happen without the assistance of the conscious machinery.
Prior to the “aha” moment, conscious effort is required to direct attention to
the problem at hand and to immerse oneself in relevant data. After the flash of
insight, conscious attention is again needed to evaluate the resulting
combinations.
The Discipline of Problem Formulation
When the brain’s associative machine is confronted with a
problem, it jumps to a solution based on experience. To complement that fast
thinking with a more deliberate approach, structured problem-solving entails
developing a logical argument that links the observed data to root causes and,
eventually, to a solution. Developing this logical path increases the chance
that you will leverage the strengths of conscious processing and may also
create the conditions for generating and then evaluating an unconscious
breakthrough. Creating an effective logical chain starts with a clear
description of the problem and, in our experience, this is where most efforts
fall short.
A good problem statement has five basic elements:
- It references something the organization cares about and connects that element to a clear and specific goal;
- it contains a clear articulation of the gap between the current state and the goal;
- the key variables — the target, the current state, and the gap — are quantifiable;
- it is as neutral as possible concerning possible diagnoses or solutions; and
- it is sufficiently small in scope that you can tackle it quickly.
Decades of research suggest that people work
harder and are more focused when they face clear, easy-to-understand goals. More
recently, psychologists have shown that mentally comparing a desired state with
the current one, a process known as mental contrasting, is more likely to lead
people to change than focusing only on the future or on current challenges.
Recent work also suggests that people draw considerable motivation from the
feeling of progress, the sense that their efforts are moving them toward the
goal in question. A good problem statement accordingly contains a clear
articulation of the gap that you are trying to close.
Quantify even if you can’t measure.
Being able to measure
the gap between the current state and your target precisely will support an
effective project. However, structured problem-solving can be successfully
applied to settings that do not yield immediate and precise measurements,
because many attributes can be subjectively quantified even if they cannot be
objectively measured. Quantification of an attribute simply means that it has a
clear direction — more of that attribute is better or worse — and that you can
differentiate situations in which that attribute is low or high. For example,
many organizations struggle with so-called “soft” variables like customer
satisfaction and employee trust. Though these can be hard to measure, they can
be quantified; in both cases, we know that more is better. Moreover, once you
start digging into an issue, you often discover ways to measure things that
weren’t obvious at the outset. For example, a recent project by a student in
our executive MBA program tackled an unproductive weekly staff meeting. The
student began his project by creating a simple web-based survey to capture the
staff’s perceptions of the meeting, thus quickly generating quantitative data.
Remain as neutral as possible. A good problem formulation
presupposes as little as practically possible concerning why the problem exists
or what might be the appropriate solution. That said, few problem statements
are perfectly neutral. If you say that your “sales revenue is 22% behind its
target,” that formulation presupposes that problem is important to your
organization. The trick is to formulate statements that are actionable and for
which you can draw a clear path to the organization’s overarching goals.
Is your scope down?
Finally, a good problem statement is
“scoped down” to a specific manifestation of the larger issue that you care
about. Our brains like to match new patterns, but we can only do so effectively
when there is a short time delay between taking an action and experiencing the
outcome. Well-structured problem-solving capitalizes on the natural desire for
rapid feedback by breaking big problems into little ones that can be tackled
quickly. You will learn more and make faster progress if you do 12 one-month
projects instead of one 12-month project.
To appropriately scope projects, we often use the
“scope-down tree,” a tool we learned from our colleague John Carrier, who is a
senior lecturer of system dynamics at MIT. The scope-down tree allows the user
to plot a clear path between a big problem and a specific manifestation that
can be tackled quickly.
Narrowing a Problem’s Scope
For example, the overall problem of excessive
equipment downtime at a company’s plants is broken down first into two types of
equipment (rotating and nonrotating), and then further into different
subcategories of equipment, ultimately focused on a specific type of pump in
one plant. The benefit of reducing the problem’s scope is that instead of a big
two-year maintenance initiative, a team can do a 60-day project to improve the performance
of the selected pumps and generate quick results and real learning. Then they
can move on to the next type of pump, and hopefully, the second project will go
more quickly. Following that, they move to the third type of pump, and so on.
People generate great results when they
have the discipline to scope down their projects to an area where they can,
say, make a 30% improvement in 60 days. The short time horizon focuses them on
a set of concrete interventions that they can execute quickly. This kind of
“small wins” strategy has been discussed by a variety of organizational
scholars, but it remains rarely practiced.
Four Common Mistakes
we have observed
four common failure modes. Avoiding these mistakes is critical to formulating
effective problem statements and focusing your attention on the issues that
really matter to you and your organization.
- Failing to Formulate the Problem : The most common mistake is skipping problem formulation altogether. People often assume that they all already agree on the problem and should just get busy solving it. Unfortunately, such clarity and commonality rarely exist.
- Stating the Problem as a Diagnosis or a Solution : Another frequent mistake is formulating a problem statement that presupposes either the diagnosis or the solution. A problem statement that presumes the diagnosis will often sound like “The problem is we lack the right IT capabilities,” and one that presumes a solution will sound like “The problem is that we haven’t spent the money to upgrade our IT system.” Neither is an effective problem statement because neither references goals or targets that the organization really cares about. The overall target is implicit, and the person formulating the statement has jumped straight to either a diagnosis or a solution. Allowing diagnoses or proposed solutions to creep into problem statements means that you have skipped one or more steps in the logical chain and therefore missed an opportunity to engage in conscious cognitive processing. In our experience, this mistake tends to reinforce existing disputes and often worsens functional turf wars.
- Lack of a Clear Gap : A third common mistake is failing to articulate a clear gap. These problem statements sound like “We need to improve our brand” or “Sales have to go up.. The lack of a clear gap means that people are not engaging in clear mental contrasting and this creates two related problems. First, people don’t know when they have achieved the goal, making it difficult for them to feel good about their efforts. Second, when people address poorly formulated problems, they tend to do so with large, one-size-fits-all solutions that rarely produce the desired results.
- The Problem Is Too Big : Many problem statements are too big. Broadly scoped problem formulations lead to large, costly, and slow initiatives; problem statements focused on an acute and specific manifestation lead to quick results, increasing both learning and confidence. Use John Carrier’s scope-down tree and find a specific manifestation of your problem that creates the biggest headaches. If you can solve that instance of the problem, you will be well on your way to changing your organization for the better.
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