Strategy Flashcards
What are the 6 elements of Data Quality?
- Appropriate Frame
- Creative, Doable Alternatives (what we can do)
- Meaningful, Reliable Info (what we know)
- Clear Values and Trade-offs (what we want)
- Logically Correct Reasoning
- Commitment to Action
What are the seven steps of the McKinsey Problem Solving Process?
- Define the problem
- Structure the problem
- Prioritize issues
- Develop issue analysis and work plan
- Conduct analyses
- Synthesize findings
- Communicate the recommendation
Problem Definition: What are the seven elements of a good problem definition?
Basic question – What are we trying to solve? The question should be SMART (specific, measurable, action-oriented, relevant, time bound)
Context – What is the situation and complication?
Criteria for success – How are we defining success in terms of both quantitative and qualitative measures?
Stakeholders – Who is the decision maker? Who are other important stakeholders, and are they helpers or blockers? If many people are involved, it may make sense to lay out a RAPID decision making framework.
Scope – What are the segments that will be included in the study? What segments will not be included in the study?
Constraints – What limits the possible solutions within the segments under consideration?
Sources - What approaches already exist, and what knowledge can be accessed?
Problem Structure: What are two possible was to structure the problem?
- Hypothesis Tree
2. Issue Tree
Problem Structure: Articulating the problem as hypotheses, rather than issues, is preferred because it leads to a more focused analysis of the problem. What are the elements of a powerful hypothesis?
A powerful hypothesis is DART:
Debatable – if it cannot be wrong, it is simply a statement of fact, and unlikely to produce a key insight
Actionable – if proven, points to steps that should be taken
Relevant – if you refers the hypothesis, it would make a difference to the overall logic
Testable – can be proven or disproven
Problem Structure: When should an issue tree be used?
Issue trees are best used when the you have insufficient knowledge to build a complete hypothesis tree at the start. It is best constructed as a series of open questions in sentence form.
- Start with the base questions and break it down into components
- Ensure a MECE set of complete questions at each level
Use sub-issues to drive answers and higher levels - Open questions (beginning with What, How or Why) 4. produce deeper insights than closed questions (starting with Can or Does)
Prioritization: How should issues be prioritized?
Use a 2×2 matrix to prioritize issues.
The vertical axis is typically Impact. The other axis may be ease of implementation, likelihood of success, fit with capabilities, strategic alignment, or urgency.
Analysis: What are the elements of an issue analysis and work plan?
Issue – An important, unresolved question, phrased so it can be answered yes or no
Hypothesis – Likely answer to the issue
Rationale – Reasons that support the hypothesis
Analysis – Work that is necessary and sufficient to prove or disport the hypothesis, or resolve the issue
End Product – Output of the analysis
Responsibility – The person who is responsible for the end product
Timing – When the end product is due
Sources – Data sources that can help answer the question; sources can be (a) internal or external and (b) people or documents
Synthesis: What is the Pyramid Principle?
The principle asserts that every synthesis should explain a single concept – the governing thought. The supporting ideas in the synthesis for a thought hierarchy proceeding in a logical structure from the most detailed facts to the governing thought, ruthlessly excluding the interesting but irrelevant.
Synthesis: What are the two logical structures of the Pyramid Principle?
Deductive (logical argument) – Presents a line of reasoning that leads to a “therefore” conclusion. The governing thought is a summary of that line of reasoning. Deductive point arrive from each other.
Inductive (logical grouping) – Group of ideas of facts that are similar. The governing thought is a statement/inference about the similarity. Inductive points do not arrive from each other.
Synthesis: What needs to be tested traversing each direction through the pyramid (down, across, up)?
Going down – Does each governing thought pose a single why or what question?
Going across – Is each level of the pyramid MECE (mutually exclusive and collectively exhaustive)?
Going up - Does each group of boxes, taken together, provide one answer/so-what that is essentially the governing thought above it?
Recommendation: What are the three elements of an Action Plan?
Relevant initiatives, along with clear sequence, timing, and the activities required the realize them. Should consider not only the need for sustained impact, but also the effect of visible quick wins, the resources available, and any competing priorities.
Clear owners for each initiative.
Key success factors and challenges involved in delivering on the initiatives.
What are the five SMART characters of a good recommendation?
SMART = specific, measurable, action-oriented, relevant, time-bound
What is the ACCA framework for audience development?
Awareness
- Audience: Is aware that a problem exists, but not convinced that they can do anything about it
- Communication: Describe situation (data, example, benchmarks)
Conviction
- Audience: Understands that they can help solve the problem, but feels that there are more barriers to action than benefits
- Communication: Provide solution (recommendation, reasons, options)
Courage
- Audience: Is motivated to help solve the problem, but is not exactly sure what to do next
- Communication: Create vision (stress benefits, how barriers can be removed, reinforce values, provide incentives)
Action
- Audience: Takes action
- Communication: Show the way (next steps, convey confidence, define required coaching, reward success)
What does the Business Model Canvas describe?
The BMC describes the key operations of a business:
- Value Proposition
- Key (Operating) Activities
- Partners
- Assets/Resources
- Customer Relationships
- Go-To-Market Channels
- Customer Segments
- Cost Structure
- Revenue Streams
