180DC UGM Academy
Module 1:
Consulting 101
Define the Problem
Formulating the Problem Statement
Brainstorming for Problem Statement
Typical Brainstorming
Problem Statement Brainstorming
OR
What features should we put in the product?
Which features does the customer want and need in the product?
Why are we inefficient? How can we be more efficient?
How do we streamline our process to cut inefficiencies by 20%?
How do we reduce cost?
Which of the cost can we discard to increase cost-effectiveness?
Formulating the Problem Statement
Who?
Ask yourself, “what are you trying to solve?”
What?
Where?
When?
How?
Who are impacted and involved in the problem?
What does the problem impact? What are the growth drivers?
Where does the problem occur? Where does it impact?
How was the problem created? How will it be solved?
Why?
When did the problem begin? How urgent does it need to be solved?
Why is the problem important to solved to the stakeholders and the business?
Formulating the Problem Statement
Frame the problem statement as an objective
Company X is struggling to increase profitability due to decreasing price in the market driven by new entrants, what strategy or product development can the company implement to mitigate the price pressure?
Problem Statement
Goal : Company X wants to increase profitability and mitigate price pressure by new entrants.
Obstacles
New entrants are entering the market with aggressive pricing strategy
The cost has not increased by the revenue is increasing slowly
Despite the low cost, price per unit is decreasing
The company has no overall strategy or product strategy in the near future
Formulating the Problem Statement
Fostering a hypothesis-driven logic
An idea becomes hypothesis
Fact base is built
Hypothesis is proven / disproven
The hypothesis becomes a fact
Example of Hypothesis
Company X has weak pricing strategy causing the vulnerability of price pressure
Company X has not explored a more diverse marketing opportunities unlocked by the new entrants
The advances in technology would allow for Company X to explore other business models or operational model
Structure the Problem
Building an Issue Tree
You can structure your problem solving as such
Problem Statement
Point #1
Point #2
Point #3
Data #1
Data #2
Data #3
Data #1
Data #2
Data #3
Data #1
Data #2
Data #3
Collectively Exhaustive
Mutually Exclusive
Finding the Root Cause
Main Problem
Symptom #1
Symptom #2
Symptom #3
Root Cause
Root Cause
Data #1
Data #2
Data #3
Data #1
Data #2
Data #3
Root Cause
Root Cause
Root Cause
Root Cause
Root Cause
Root Cause
Root Cause
Root Cause is driving the symptom causing the problem
How can you find the root cause?
Ask the 5 Whys
Conduct the Pareto Analysis
Utilise Lean & Six Sigma
Planning & Conducting Analysis
Top-down Approach
A top-down analysis in a business approach involves examining the external business environment, industry, and company in a hierarchical order, starting from the broadest perspective and gradually narrowing down to the specific details.
External Business Factors
Industry
Company
Top-down Approach
Analysis Framework
During a consulting process, you will do external analysis such as in the market and industry to analyse a problem or emerging opportunity. There will also be internal analysis to understand the company’s internal capacity
Analysis Framework
…
…
…
Market Analysis
Industry Analysis
Business Analysis
Competitive Landscape
Perceptual Mapping
PESTLE
Porter’s Five
STP Analysis
Industry Life Cycle
SWOT Analysis
VRIO Analysis
Value Chain Analysis
And many more!
Developing Recommendations
There is never a one size fits all template to consulting, each case in unique to their own! You need to go back to your root cause analysis
Sample Root Cause
Main Problem
Symptom #1
Symptom #2
Symptom #3
Root Cause
Root Cause
Data #1
Data #2
Data #3
Data #1
Data #2
Data #3
Root Cause
Root Cause
Root Cause
Root Cause
Root Cause
Root Cause
Root Cause
Possible Strategies
Targeted Strategy
Value Proposition
Go-To Market Strategy
People
Market
Geographical
Price
Product
Services
Sales
Distribution
Marketing
This is a possible strategy you can create for market expansion case
180DC UGM Academy
Module 1:
Consulting 101