BUSINESS PROBLEM SOLVING

Business Problem Solving is a crucial skill for managers, entrepreneurs, and analysts. In a
constantly evolving and complex environment, the ability to identify, frame, and resolve
problems efficiently determines strategic success. The foundation of effective problem-
solving lies in proper problem framing, which ensures that the right questions are being
asked and the root causes are being addressed rather than just symptoms.

1. What is the importance of Problem Framing in Business Decision-making?

Explanation: Problem framing is the process of defining the context and boundaries of a
business issue to ensure effective decision-making. A well-framed problem directs attention
to the root causes rather than symptoms and aligns stakeholders.

Example: A company facing declining sales might initially blame poor marketing, but proper
framing may reveal deeper issues like product relevance or customer experience.

flowchart

Observed Symptom (e.g., low sales)

Identify Stakeholders

Gather Data & Context

Frame the Core Problem

Set Decision Criteria

Guide Solution Development

2. Explain various problem-solving methodologies.

Explanation:

 Root Cause Analysis (RCA): RCA is a method used to identify the root causes of
problems instead of just addressing the symptoms. It involves collecting data,
identifying causal relationships, and determining why the problem occurred.
Steps in RCA:

1. Define the problem.

2. Collect data on the problem.

3. Identify possible causal factors.

4. Determine the root cause(s).

5. Implement solutions and monitor results.

Flowchart for RCA:

Problem Identified

Collect Relevant Data

Identify Possible Causes

Drill Down to Root Causes

Develop and Implement Solutions

Monitor Outcomes

6. Example: In a manufacturing unit with frequent machine breakdowns, RCA

might reveal that a lack of preventive maintenance scheduling is the root
cause.

 PDCA Cycle (Plan-Do-Check-Act): A continuous improvement method involving:

o Plan: Identify a problem and plan a solution.

o Do: Implement the solution on a small scale.

o Check: Analyze the results.

o Act: If successful, implement the solution at scale.

Example: A retail store testing a new layout in one location before rolling it out chain-wide.

 5 Whys Technique: A simple but powerful tool used to drill down to the root cause of
a problem by asking "Why?" five times (or as many times as needed).

Example:

1. Why is delivery late? — Trucks arrive late.

2. Why are trucks late? — Loading is delayed.

3. Why is loading delayed? — Insufficient staff.

4. Why insufficient staff? — Poor shift planning.

5. Why poor planning? — No scheduling software.

 Design Thinking: A user-centric methodology that solves complex problems through

empathy and experimentation.

Stages:

1. Empathize (understand user needs)

2. Define (the problem)

3. Ideate (generate ideas)

4. Prototype (build solutions)

5. Test (try solutions and iterate)

Example: A startup designing an app for visually impaired users begins by interviewing users
to understand daily challenges.

 Six Sigma (DMAIC): A data-driven quality strategy with five phases:

1. Define the problem and goals.

2. Measure key aspects of the current process.

3. Analyze data to identify cause-effect relationships.

4. Improve the process by implementing solutions.

5. Control the process to sustain improvements.

Example: A call center uses DMAIC to reduce average call handling time by analyzing
patterns and training staff.

3. What is the relevance of Business Problem Framing?

Business Problem Framing is one of the most critical steps in any business research,
decision-making, or problem-solving process. It sets the foundation for everything that
follows — from data collection to analysis to solution development

Aspect Explanation Example

“Why are online sales dropping

Ensures everyone understands the
Clarifies Objectives despite increased website
exact issue that needs solving
traffic?”

Aligns with Business Connects the problem to strategic Links declining sales to revenue
Goals business outcomes targets

Guides Data Helps determine what data is Customer feedback, purchase

Collection needed and why history, competitor pricing

Prevents teams from solving the

Don’t mistake symptoms (low
Avoids Wasted Effort wrong problem or asking irrelevant
sales) for causes (poor UX)
questions

Stakeholders agree: “We want to

Improves Provides a clear and shared
reduce cart abandonment by
Communication understanding among stakeholders
20%”

Supports Better Well-framed problems lead to Targeted improvements instead

Decision Making focused, evidence-based decisions of general marketing push

Problem: “Improve delivery

Proper framing may reveal hidden
Enhances Innovation time” → Opportunity: “Offer
opportunities
same-day”

Scenario: A clothing retailer faces falling foot traffic in stores.

 Poorly framed problem: “Why are our stores failing?”

 Well-framed problem: “How can we increase foot traffic in our physical locations
while maintaining profitability in the face of growing online competition?”

✅ Why framing matters: The well-framed version points toward actionable causes and
measurable goals like promotions, location strategy, or in-store experiences — not just
symptoms.

4. What do you mean by business problem? Explain with examples.

A business problem is a specific challenge or obstacle that prevents an organization from

achieving its goals. These problems may arise in any area of the business — marketing,
operations, finance, human resources, customer service, etc. — and often require data
analysis, strategy, or innovation to solve.
Characteristic Explanation

It obstructs the achievement of a business objective (e.g., profit,

Goal-Oriented
efficiency)

It can be addressed through decision-making or operational

Actionable
changes

Effective framing digs deeper than symptoms to uncover core

Root Cause Oriented
issues

Quantifiable or
Usually affects key performance indicators (KPIs)
Measurable

5.Explain the different kinds of business problems.

Category Type of Problem Explanation Example

A startup scaling too

Lack of clear The company lacks a long-
Strategic fast without a clear
direction term strategy or vision
market position

Product doesn’t meet Launching a luxury

Market
customer needs or product in a price-
misalignment
expectations sensitive market

Time, cost, or resources are Delays in order

Inefficiencies in
Operational wasted in day-to-day processing due to
processes
operations manual workflows

Disruptions in sourcing,
Poor supply Inventory shortages
transportation, or
chain/logistics due to supplier delays
warehousing

Sales dropped by 20%

Revenue from key products
Marketing & Sales Declining sales in Q2 despite
or regions is falling
promotional efforts

Low traffic on newly

Poor brand Customers don’t recognize
launched e-commerce
visibility or trust the brand
platform

Lack of interaction or App downloads are

Low customer
repeat purchases from high, but user activity is
engagement
target segments low

Financial Declining Costs are rising faster than Increased raw material
Category Type of Problem Explanation Example

profitability revenue prices eroding margins

Company struggles to cover Receivables are not

Poor cash flow
day-to-day expenses collected on time

Employees leave frequently,

High employee 25% of workforce quits
Human Resources leading to hiring and
turnover within 12 months
training costs

Employees lack the Company shifts to

Skill gaps necessary capabilities for digital but lacks tech-
growth or innovation savvy talent

Outdated tools that slow Sales team can't sync

Technology & Legacy systems or
down processes or create CRM with inventory
Systems poor integration
security risks software

Customer data leak

Data breaches or system
Cybersecurity risks leads to reputational
vulnerabilities
damage

Customers are dissatisfied Negative reviews and

Customer Poor service
with support or service drop in Net Promoter
Experience quality
processes Score (NPS)

Customers don’t return 60% churn rate among

Low retention
after first interaction new users in 30 days

Business practices conflict Fined for violating data

Regulatory
Compliance/Legal with local or international privacy laws (e.g.,
violations
laws GDPR)

5.What are the key elements of Business Problem Framing

Framing a business problem effectively ensures the right issue is being addressed in the
right context, enabling better decisions and strategic clarity. Below are the key elements,
presented in an exam-ready format with examples.

Element Description Example

1. Problem A clear, concise definition of the “Customer churn rate has increased
Statement business issue or challenge by 15% in the last quarter.”

2. Business The environment, background, Highly competitive telecom industry

Context and key drivers behind the issue with price wars
Element Description Example

3. Stakeholders People or departments affected Marketing, Customer Support, Senior

Involved by or responsible for the issue Management

What the business wants to Reduce churn rate by 10% over the
4. Objectives
achieve by solving the problem next 3 months

Define what is included and

5. Scope & Focus only on prepaid mobile
excluded from the analysis or
Boundaries customers, not postpaid users
solution

6. Underlying Initial beliefs or hypotheses that Customers are leaving due to poor
Assumptions guide analysis service quality

7. Metrics/KPIs Key performance indicators Churn Rate, Customer Lifetime Value

Affected impacted by the problem (CLTV), NPS

Limitations in budget, time, Budget cap of ₹10 lakhs; timeline =

8. Constraints
technology, or resources 60 days

Framing the issue as a “How “How might we improve customer

9. Problem
Might We…” question for solution retention without increasing
Framing Question
generation operational costs?”

6.Differentiate symptoms from root causes. Why this distinction is important

Understanding the difference between symptoms and root causes is crucial in business
problem-solving. Solving only the symptoms leads to short-term fixes, while addressing the
root cause leads to sustainable solutions.

Table: Symptoms vs Root Causes

Aspect Symptoms Root Causes

Observable outcomes or signals The underlying reason why the problem

Definition
of a problem exists

Nature Surface-level Deep, foundational

Visibility Easily noticeable Often hidden, requires analysis

Duration Short-term or recurring Long-term impact

Solution
Temporary relief Permanent or strategic improvement
Impact

Example Declining sales Poor customer targeting or outdated

Aspect Symptoms Root Causes

product features

Lack of career growth, poor management,

Another or low morale
High employee turnover
Example

Why This Distinction Is Important:

Reason Explanation

Avoids Misdiagnosis Treating only the symptom may ignore the true issue

Saves Time and Efforts are directed toward long-term solutions, not repeated band-
Resources aid fixes

Improves Strategic Root cause solutions often lead to better performance and
Outcomes customer satisfaction

Solving the root cause ensures the problem doesn't return

Illustrative Example:

Scenario:A retail store reports a drop in foot traffic.

 Symptom: Low customer visits

 Assumed Solution: Increase advertising

Prevents Recurrence
Root Cause (after investigation):

 Poor store layout, limited parking, and unengaging in-store

experience.

Effective Solution:

 Redesign the store layout, introduce customer loyalty

programs, improve accessibility.

8. Define Business Problem Framing.

Business Problem Framing is the process of clearly identifying, structuring, and articulating a
business challenge in a way that guides focused analysis and solution development. It
involves separating symptoms from root causes, understanding stakeholder needs, and
aligning the problem with strategic goals.
Key Aspects of Business Problem Framing

Element Explanation

Clarity Ensures the problem is well-defined and not vague or overly broad

Relevance Links the problem to real business goals and metrics (KPIs)

Contextualization Considers internal and external factors affecting the problem

Helps avoid solving the wrong problem by breaking it into manageable

Focus
parts

Guidance Sets the direction for data analysis, brainstorming, and decision-making

🧠 Simple Example:

A company says:

"Our profits are falling."

That’s a symptom. With problem framing, it becomes:

“How might we reduce operational inefficiencies in the supply chain that are eroding our

profit margins by 12%?”

This reframed version:

 Identifies the root area (supply chain)

 Quantifies the impact (12%)

 Sets a direction for solutions (reduce inefficiencies)

9. Explain the relevance of identifying the stakeholders and their perspectives on business
decisions

Identifying stakeholders and understanding their perspectives is a critical step in business

problem-solving and decision-making, especially in complex environments where decisions
affect multiple groups.

📋 Who Are Stakeholders?

Stakeholders are individuals or groups who are directly or indirectly affected by a business
decision or who can influence the outcome. They may be internal (e.g., employees,
managers) or external (e.g., customers, investors, regulators).

📊 Why Stakeholder Identification Matters

Reason Explanation

✅ Improves Decision Diverse inputs help uncover blind spots and make more
Quality informed choices

✅ Reduces Resistance to Early involvement of key stakeholders fosters buy-in and

Change reduces implementation barriers

Helps ensure decisions align with both business goals and

✅ Aligns Goals
stakeholder needs

✅ Enhances Knowing who to inform and involve reduces miscommunication

Communication and confusion

Identifying opposing perspectives early helps mitigate conflict

✅ Manages Risks
and reputational risk

🧠 Example: Stakeholder Perspectives in a Product Launch Decision

Stakeholder Perspective/Concern

Customers Will the product solve their pain point? Is it priced fairly?

Sales Team Do they have the tools and training to sell the product?

Finance Team Is the product financially viable? What is the ROI?

Operations Can we produce and deliver the product efficiently at scale?

Regulators Does the product meet legal and compliance standards?

10. Explain the techniques for problem exploration and analysis.

These techniques help understand the root of business problems, uncover hidden issues,
and gather evidence to support data-driven decision-making.

📋 Table: Key Techniques for Problem Exploration & Analysis

Technique Description Use Case / Example

Identifies underlying reasons Using 5 Whys to explore why

1. Root Cause
behind a problem using structured customer orders are delayed
Analysis
logic repeatedly

Asking “Why?” repeatedly (usually Why is the website conversion

2. 5 Whys 5 times) to trace cause-effect rate low? → Poor UI → No UX
relationships testing, etc.
Technique Description Use Case / Example

Visual tool that categorizes causes

3. Fishbone Diagram Used in manufacturing to identify
of problems (e.g., People, Process,
(Ishikawa) reasons for production defects
Tech)

Exploring internal vs. external

Analyzes Strengths, Weaknesses,
4. SWOT Analysis factors affecting market
Opportunities, Threats
performance

Based on 80/20 rule – identifies

80% of complaints come from 20%
5. Pareto Analysis few key causes that account for
of product defects
most effects

Visual representation of steps in a Mapping customer onboarding

6. Process Mapping
process to find inefficiencies process to identify bottlenecks

Analyzing resistance from

7. Stakeholder Identifies stakeholders’ interests,
departments to a new ERP
Analysis influence, and concerns
implementation

8. Brainstorming & Collaborative idea generation and Team brainstorms reasons for
Mind Mapping problem-structuring tool declining customer retention

Assumes a cause-effect Testing whether pricing changes

9. Hypothesis Testing
relationship, then tests it with data led to drop in sales

Comparing business performance

Comparing delivery times with
10. Benchmarking against industry leaders or best
Amazon or Flipkart
practices

🔍 Example (Case Scenario):

Problem: A retail chain experiences a consistent drop in customer satisfaction scores.

Application of Techniques:

 5 Whys reveals: “Delays at checkout” → “Insufficient staff” → “Poor workforce

planning”

 Pareto Analysis shows: 80% of complaints stem from 2 store locations

 Fishbone Diagram helps categorize causes into People, Process, Technology

 Hypothesis Testing used to check if adding self-checkout improves scores

11. Define problem statements with example.

 📘 Definition
A problem statement is a clear, concise, and focused description of an issue that needs
to be addressed. It defines the current state, identifies the gap or challenge, and
outlines the impact on business objectives. It is the foundation for analysis, research,
and solution design.

🎯 Purpose of a Problem Statement

 Clarifies what exactly needs to be solved
 Aligns teams and stakeholders
 Sets direction for research or data analysis
 Helps avoid working on symptoms rather than root causes

📋 Structure of a Strong Problem Statement

Component Explanation Example

“Customer churn has increased by 15%

Current Situation Describe the existing condition
in the last two quarters.”

Highlight how it affects goals or “This has led to a 10% drop in monthly
Business Impact
performance recurring revenue.”

Root Cause / Point out the underlying issue “The specific reasons behind the churn
Unknown or what is unclear are not fully understood.”

Objective State what you aim to discover “To identify key drivers and design
(optional) or solve retention strategies.”

12. Explain the steps to identify the objectives and define the success criteria

Setting clear objectives and defining success criteria are essential for solving business
problems effectively. These steps ensure alignment with strategic goals and allow progress
to be measured objectively

📋 Table: Steps to Identify Objectives & Define Success Criteria

Step Description Example

Problem: "Customer churn is

1. Understand the Analyze the problem statement to
rising" → Need to improve
Business Problem grasp what needs to be achieved
retention

Consult those impacted or Sales team wants better CRM

2. Engage Stakeholders responsible to align on usage; management wants
expectations higher revenue

3. Define SMART Objectives should be Specific, “Reduce churn by 10% in 6

Step Description Example

Measurable, Achievable, months among prepaid

Objectives
Relevant, Time-bound customers”

Increase customer service

4. Break Down into Break the main goal into smaller,
resolution speed, improve app
Sub-objectives trackable outcomes
usability

5. Identify Key
Choose metrics that will track Churn Rate, Net Promoter Score
Performance Indicators
progress toward each objective (NPS), Repeat Purchase Rate
(KPIs)

6. Define Success Set clear thresholds that indicate “Churn rate drops below 5%
Criteria success within 3 months”

Ensure the criteria reflect Get buy-in from marketing and

7. Validate with
stakeholder expectations and operations to track & report on
Stakeholders
feasibility KPIs

Continuously assess whether

8. Monitor and Revise If churn remains high, explore
goals are being met and adjust if
if Needed different retention tactics
necessary

13. Steps in Establishing Problem Scope and Boundaries

Establishing the scope and boundaries of a business problem ensures the issue is tackled
efficiently and effectively, without wasting resources on irrelevant areas. It defines what is
included and excluded, helping focus analysis and action.

📋 Table: Steps to Define Problem Scope and Boundaries

Step Description Example

1. Review the Problem: “Online cart

Revisit the problem to understand
Problem abandonment rate has increased
what needs solving
Statement by 20%”

2. Identify Key Clarify who is impacted and who has E-commerce manager, IT team,
Stakeholders influence marketing team

Decide which aspects of the business

3. Define Scope Only online store; only desktop
are included (functions, locations,
Dimensions users; only last 3 months' data
products, etc.)

Clearly define what is out of scope to Exclude mobile app data;

4. Set Boundaries
prevent analysis creep exclude international markets
Step Description Example

5. Define Specify the period the problem Analyze cart data from Jan–
Timeframe analysis will cover March 2025

If objective is to reduce
6. Align with Make sure the scope supports the
abandonment by 15%, scope
Objectives SMART objectives set earlier
must include key causes

7. Validate with Review scope/boundaries with Confirm with product and sales
Stakeholders stakeholders to ensure agreement teams before starting analysis

🧠 Example Scenario (Retail Business):

In Scope Out of Scope

Urban store locations Rural or suburban stores

Weekend customer data Weekday or holiday season data

Customer feedback Supplier/vendor issues

14. System Dynamics in Problem Solving

📘 Definition:

System Dynamics is a method of understanding the complex behavior of systems over time
using feedback loops, time delays, and interactions between elements. It helps in solving
business problems by analyzing how changes in one part of a system influence the whole.

🔁 Why Use System Dynamics?

 Many business problems are not linear (A doesn’t always cause B)

 Helps identify unintended consequences of decisions

 Supports long-term thinking and sustainable solutions

 Encourages a holistic approach rather than siloed problem-solving

🧩 Key Concepts in System Dynamics

Concept Explanation Example

Hiring more staff improves service →

Circular cause-effect relationships
Feedback Loops more customers → need for more
where output feeds back as input
staff

Positive feedback that amplifies High customer satisfaction → more

Reinforcing Loop
change referrals → even more customers
Concept Explanation Example

Inventory control: more sales → less

Negative feedback that resists
Balancing Loop stock → more production → stock
change and stabilizes system
stable

Time gaps between cause and Marketing campaign → increase in

Delays
effect sales after 2 months

Stock = accumulation, Flow = rate Stock: Cash balance, Flow: monthly

Stock and Flow
of change revenue or expenses

Causal Loop Diagrams that visualize system Used to map customer churn and
Diagrams (CLDs) behavior and loops retention dynamics

🎯 Example: Customer Service System

Problem: Decline in customer satisfaction

System Dynamics Insight:

 Poor training → bad service → complaints → demotivation → worse service

 Solution: Train staff → better service → positive reviews → improved morale

This reinforcing loop shows how small changes can spiral into bigger outcomes.

15. Tools for Mapping Complex Systems and Relationships

Mapping complex systems helps understand how various elements, stakeholders, or

processes interact, making it easier to solve multi-faceted business problems.

📋 Key Tools for Mapping Systems & Relationships

Tool Purpose Example Use Case

Visualizing how employee

Causal Loop Shows feedback loops between
satisfaction affects productivity and
Diagram (CLD) elements in a system
revenue

Rich Picture Visual, informal drawings to capture Understanding dynamics in a failing

Diagrams messy, real-world complexity supply chain

Systems Identifies key variables and Mapping elements in a healthcare

Mapping interrelationships among them system: patients, staff, technology

Used in decision analysis (e.g.,

Influence Highlights variables and their
impact of price, promotion, and
Diagrams influence on each other
seasonality on sales)

Stakeholder Identifies key players and maps Launching a new product—shows

Tool Purpose Example Use Case

investors, customers, regulators,

Map influence/power/interest
etc.

Process Visualize sequential steps and Mapping customer onboarding or

Flowcharts decision points complaint resolution processes

16. Cognitive Biases in Problem Framing

Cognitive biases are mental shortcuts or errors in thinking that distort how problems are
perceived or framed, leading to poor business decisions.

🧠 Common Cognitive Biases in Problem Framing

Bias Description Example in Business Context

Manager only reviews positive

Focusing only on data that
Confirmation Bias feedback while ignoring customer
supports existing beliefs
complaints

Relying too heavily on initial Fixating on last quarter’s sales as the

Anchoring Bias
information “normal” despite major market shifts

Different responses based on how “90% success” sounds better than

Framing Effect
the same problem is presented “10% failure”—affects risk decisions

Availability Basing judgment on recent or Assuming a product will fail again

Heuristic memorable events because it flopped 5 years ago

Ignoring data in favor of personal

Overconfidence Overestimating one's own
experience when launching new
Bias knowledge or forecasts
product

Preference to maintain current Resisting change in process because

Status Quo Bias
situation “this is how we’ve always done it”

Continuing a project due to past Keep funding a failing product

Sunk Cost Fallacy
investment, not future value because of prior investment

17. Steps in Problem Solving,

📋 Table: Steps in Business Problem Solving

Step Explanation Example

1. Problem Recognize that a gap or challenge Decline in customer retention over

Identification exists the last quarter
Step Explanation Example

Frame: “Is retention drop due to

Define the scope, stakeholders,
2. Problem Framing poor service, pricing, or
causes, and context
competitors?”

3. Data Collection & Gather and evaluate relevant Collect customer feedback, support
Analysis internal/external data logs, competitor pricing

4. Generate Brainstorm multiple solutions Improve loyalty program, hire more

Alternatives without judgment support staff, redesign onboarding

Use criteria (cost, feasibility, Loyalty program is cost-effective

5. Evaluate
time, impact) to assess each but takes time; faster support helps
Alternatives
option now

Select the most viable and Decide to redesign onboarding and

6. Decision Making
strategic solution improve loyalty simultaneously

Plan and execute the chosen Launch new onboarding process

7. Implementation
solution and update loyalty benefits

Review retention KPIs monthly;

Track progress and adapt if
8. Monitor & Review adjust program based on user
necessary
feedback

18. Different Problem-Solving Methodologies

These are structured frameworks used to tackle complex business problems efficiently,
ensuring consistency, objectivity, and insight.

Methodology Purpose / Focus Use Case

Root Cause Identifies the underlying issue causing Repeated equipment

Analysis (RCA) the problem breakdown in manufacturing

Asks “Why?” repeatedly to trace to root Customer complaint on late

5 Whys Technique
cause deliveries

Assesses Strengths, Weaknesses,

SWOT Analysis Strategic business planning
Opportunities, and Threats

Fishbone Diagram Diagnosing quality control

Visualizes cause-effect across categories
(Ishikawa) issues

PDCA (Plan-Do- Optimizing a sales process or

Continuous process improvement cycle
Check-Act) service delivery
Methodology Purpose / Focus Use Case

Structured data-driven improvement

Reducing defects in a
DMAIC (Six Sigma) (Define, Measure, Analyze, Improve,
production line
Control)

Product innovation,
Human-centered, iterative problem
Design Thinking improving customer
solving
experience

Streamlining supply chain or

Lean Thinking Eliminate waste, improve value delivery
inventory management

Selecting a vendor,
Map outcomes and probabilities for
Decision Trees investment or marketing
decision-making
strategy

📌 Example (DMAIC in Logistics):

 Define: Delivery delays by 20%

 Measure: Average delay = 2.5 days

 Analyze: Bottlenecks in dispatch

 Improve: Automate scheduling

 Control: Monthly KPIs and dashboard alerts

19. Techniques for Reframing Problems to Uncover New Insights

Reframing is the process of looking at a problem from different angles to reveal new
opportunities or root causes that may not be visible initially.

Technique Explanation Example

Why are sales dropping? → Why is

Ask “Why?” repeatedly (typically 5
5 Whys Analysis customer churn rising? → Why poor
times) to uncover the root cause
support?

Challenge “Must we sell in-store only?” →

Question existing beliefs or "rules"
Assumptions Explore e-commerce model

Substitute, Combine, Adapt,

SCAMPER Can we Substitute physical stores
Modify, Put to other use,
Technique with pop-up kiosks?
Eliminate, Reverse

Reversal Flip the problem on its head — Instead of “How to attract more
Thinking think in the opposite direction customers?” ask “Why are customers
Technique Explanation Example

leaving?”

Use comparisons from other Amazon used logistics techniques

Analogy Thinking
industries or contexts from airlines to optimize delivery

Stakeholder View the problem from different What does this issue look like for
Mapping stakeholder perspectives customers, employees, partners?

What If “What if we had no budget?” or

Explore hypothetical scenarios
Scenarios “What if our biggest client left?”

20. Brainstorming Techniques for Generating Innovative Solutions

Brainstorming encourages free-flowing idea generation without judgment — useful when

multiple, novel solutions are needed.

Technique How It Works Best Used When…

Classic Group generates ideas quickly; no Early ideation stage; when

Brainstorming criticism allowed initially exploring open-ended solutions

Central problem is placed in the Structuring creative ideas visually

Mind Mapping
middle, ideas radiate out in branches and spotting connections

6 people write 3 ideas each in 5

Brainwriting (6-3- Avoids loud voices dominating;
minutes, then pass paper to build on
5) encourages silent thinkers
others’ ideas

Prompt-based thinking to modify When improving or transforming

SCAMPER
existing ideas (see above) current products/processes

Think of ways to create or worsen the

Reverse When traditional brainstorming
problem, then reverse those to find
Brainstorming stalls or seems repetitive
solutions

Participants take on different

To generate insights from diverse
Role Storming personas (e.g., customer, CEO) to
perspectives
suggest ideas

Each person takes a turn contributing Ensures equal participation in

Round-Robin
one idea at a time structured team settings

📌 Example (Mind Mapping for a New Product Launch):

 Core Node: New Eco-Friendly Packaging

  Branches: Materials → Customer Reaction → Cost → Marketing → Supplier
Feasibility

21. Five Design Thinking Principles in Problem-Solving

Design Thinking is a human-centered, iterative approach to solving problems creatively

and effectively, especially in complex or uncertain environments.

📋 Five Key Principles of Design Thinking

Example (E-commerce
Principle Explanation
Business)
1. Understand the user’s needs, emotions, and Interview users to learn why
Empathize challenges through observation/interviews they abandon carts
Clearly articulate the core problem based on “Users find checkout process
2. Define
insights gained confusing and slow”
Generate ideas: simplified
Brainstorm multiple solutions without
3. Ideate checkout, mobile-first design,
constraints or judgment
one-click buy
4. Create simple, quick mock-ups or models of Design clickable mockups of
Prototype possible solutions new checkout layout
A/B test versions of the new
design and measure drop-off
Try prototypes with users, gather feedback,
5. Test rate
and refine

22. How Creativity Can Be Incorporated into Problem-Framing Processes

Creativity helps move beyond surface-level symptoms to discover new possibilities, hidden
challenges, and more innovative problem definitions.

📋 Techniques to Incorporate Creativity in Problem Framing

Technique How It Encourages Creativity Example

"What If" Expands possibilities beyond “What if we had no office?” →
Questions current limitations Explore remote-first models
Reframes the problem in the Instead of “How to increase sales?”
Reversal Thinking
opposite direction → “What reduces sales?”
Uses ideas from other Airlines use dynamic pricing — could
Analogy Thinking
industries/contexts retailers?
View the problem through How would a first-time user or
Role Playing
different stakeholders' eyes supplier define the problem?
Constraint-Driven Use constraints as creative “What can we do with half the
Thinking catalysts budget?”
Map out how parts of a system Understand if supply chain delays
Systems Thinking
interconnect are affecting customer experience
23. How Risks and Trade-offs in Decision-Making Can Be Assessed

Decision-making involves evaluating uncertainties and consequences of each alternative. A

structured approach helps businesses balance benefits and costs.

📋 Risk and Trade-Off Assessment Techniques

Technique What It Does Example

Identifies internal Entering a new market might boost

SWOT
strengths/weaknesses and external revenue (O) but expose supply risks
Analysis
risks/opportunities (T)

Cost-Benefit Quantifies financial/economic value of New product launch cost vs.

Analysis options projected lifetime revenue

Decision Visualizes decisions, risks, outcomes, Launch vs. delay product

Trees and probabilities depending on beta test results

Sensitivity Tests how changes in key assumptions How does a 10% cost increase
Analysis affect outcomes impact profitability?

Scenario Envisions different future situations Plan for best-case, worst-case, and
Planning and their implications most-likely sales projections

Maps likelihood vs. impact to prioritize High-likelihood/high-impact = top

Risk Matrix
risks priority risk to mitigate
24. What is the Importance of Peer-Review and Feedback Sessions?

Definition:
Peer-review and feedback sessions involve presenting your ideas, analyses, or solutions to
colleagues or stakeholders for critique, suggestions, and validation before final
implementation.

📋 Importance of Peer-Review & Feedback Sessions

Aspect Why It Matters Example

Helps spot mistakes or biases that Peer identifies flawed

Error Detection
may have been overlooked assumptions in a business forecast

Brings in alternative viewpoints, A finance team reviews a

Diverse
enriching the analysis and marketing strategy to assess cost-
Perspectives
encouraging broader thinking effectiveness

Improved Encourages rational, evidence-based Feedback helps refine a pricing

Decision Quality decisions supported by consensus strategy before rollout

Learning Enhances critical thinking and Junior analysts learn from senior
Opportunity communication skills peer critiques

Risk Mitigation Surfaces blind spots or unintended Early feedback highlights legal risk
Aspect Why It Matters Example

consequences early in a new policy

Feedback sessions with

Alignment & Ensures stakeholders are engaged
department heads ensure
Buy-in and aligned before execution
smoother implementation

In Business Context:
Feedback loops lead to higher-quality outputs, greater collaboration, and better
organizational learning.

25. Explain SMART Objectives

Definition:
SMART is an acronym used to guide the setting of clear and achievable objectives in business
and research contexts.

📋 SMART Criteria Explained

Component Explanation Example

Clearly defines what is to be “Increase website traffic” is vague →

S – Specific
achieved “Increase blog traffic by 15%”

M–
Quantifiable indicators of success “Grow revenue by ₹10 lakhs”
Measurable

Realistic given available resources Set a goal to increase leads by 10%, not
A – Achievable
and constraints 100% in 1 month

Aligns with business goals or Improving customer satisfaction aligns

R – Relevant
broader objectives with retention strategy

T – Time- Has a specific timeframe for

“Achieve this within Q2 of the fiscal year”
bound completion

🎯 Why Use SMART Objectives?

 Improves focus and motivation

 Enhances accountability

 Provides a benchmark for evaluation

 Reduces ambiguity and misalignment

26. What Are the Common Cognitive Biases in Decision Making?

 Definition:
Cognitive biases are systematic errors in thinking that affect the decisions and
judgments people make.

📋 Common Cognitive Biases in Decision Making

Bias Explanation Example (Business Context)

Tendency to seek or favor

A manager only listens to data that
Confirmation Bias information that supports existing
supports their new product idea
beliefs

Relying too heavily on the first First price quoted influences all
Anchoring Bias
piece of information (the "anchor") future negotiation, even if it's unfair

Availability Judging likelihood based on recent Assuming a market crash is likely

Heuristic or memorable examples because of recent media headlines

Overconfidence Overestimating one's abilities or Overestimating success of a strategy

Bias knowledge without validating assumptions

Following others' actions or Investing in a trend just because

Herd Mentality
opinions blindly competitors are doing so

Preferring current situation and Resisting automation because the

Status Quo Bias
avoiding change existing process “has always worked”

Fear of loss outweighs potential Avoiding strategic risks even when

Loss Aversion
gains ROI is likely

🎯 Importance in Business:

Recognizing these biases is critical to improving judgment, decision quality, and minimizing
risk in complex environments.

27. Strategies for Effective Implementation and Monitoring in Business Problem Framing

Definition:
Implementation turns planned solutions into action, and monitoring ensures that actions
align with objectives and are delivering expected results.

📋 Strategies for Implementation & Monitoring

Stage Strategy Example

Action Planning Break down the solution into tasks, Use RACI chart to assign project
Stage Strategy Example

assign responsibilities roles

Ensure time, people, budget, and Allocate IT team hours and

Resource Allocation
tools are available marketing budget for rollout

Clear Set expectations, keep Weekly email updates and

Communication stakeholders informed dashboard tracking

Define measurable indicators of E.g., “Reduce customer complaints

KPI Setting
success by 30% in 3 months”

Milestones & Use Gantt charts or sprints to track Completion of design phase by end
Timelines progress of Week 4

Customer survey after

Feedback Collect input during rollout for
implementing a new support
Mechanisms continuous improvement
process

Identify and mitigate potential Pre-plan for delays in vendor

Risk Management
barriers or delays response

Monitoring & Compare results vs. objectives; Regular performance reviews using
Evaluation adjust if needed dashboards

🎯 Why It Matters:

Implementation without structured monitoring often fails to deliver ROI — monitoring

ensures accountability, agility, and learning