vicky zhao

Consultant Explains: Tactical Business Frameworks (Part 2)

Vicky Zhao -

In Part 1 of this two-part video series, we went through three mental models for consulting problem solving frameworks. You can check out Part 1 here.

In this post, we move onto tactical frameworks. Check out the video below for brainstorming solutions and structuring analysis frameworks.

There are four sections to this two-part video series:

Part 1 can be found here.

  • Section 1: Consulting problem solving frameworks

Part 2 in the video above

  • Section 2: Brainstorming solutions
  • Section 3: Structuring analysis

Section 2: Brainstorming the Solutions

Morphological analysis

This framework is specifically built to come up with innovative solutions to a complex problem. It’s easy to use and all you have to do is break down the problem into its core components.

Example: Ice cream shop

In our ice cream shop example, you looked at the problem as a revenue problem (Revenue = Price x Volume). You suggested focusing on price (based on the Harvard Business Review research), your boss took your suggestion and it worked out great. You improved profitability.

Now, your boss wants to work on volume and wants to try opening a new ice cream shop. The question now is the kind of ice cream shop to open.

Here, we can use morphological analysis.

First, we need to identify the core components of an ice cream shop. For example, we can think of it in terms of place - the location, atmosphere, function of the shop. Are we just selling ice cream? Or are we trying to do something else? Once you have your categories, you can create all sorts of possibilities.

For example, its location may be close to a transportation hub with lots of people passing by. Or near beaches and pools where people want to eat ice cream, or next to a school. Its atmosphere could be fun and funky, or retro, or feature local farmers’ products used in your artisanal ice cream to showcase your connection to the local farming community. The function might be for families to gather on weekends, or is an instagrammable space and draws people to take photos and videos. Or you might collaborate with local artists and feature their photography and art.

Once you have all your different ideas listed, you can switch them around and try interesting combinations from each of the categories. Here are two tricks to keep in mind:

  1. Be as specific as possible
    Word the idea in a way that helps people visualize what is happening. This helps them understand your idea, and helps others come up with more ideas based on your visual.
  2. Switch up the core elements that you’ve identified if you feel stuck or the ideas are not interesting enough
    For example, you can test the ice cream shop format - it could be a pop-up, a physical store or a truck. And then mix and match with the other components. It could be a pop-up by the beach that features local farmers and intended for families to gather. Or it could be a retro style physical store that’s near schools, and very instagrammable for people to take photos.

Next, you want to categorize and prioritize the different ideas by using the next framework, the payoff matrix.

Payoff Matrix

Depending on your goals, you may want to draw a matrix with two axes.

Example: Ice cream shop

In this example, let’s say the goal of the ice cream truck is to be practical and creative. On these axes, you plot your ideas. Maybe the instagrammable physical store is not practical because too much money would be spent on real estate. Maybe the pop-up near the  beach is more practical and somewhat creative.

By doing this, you start to see where your ideas fit. During this process, you might realize none of your ideas are creative and you have to return to the drawing board for more ideas.

When you finish prioritizing your ideas, it’s time to do some analysis.

Section 3: Structuring Analysis

In general, there are three areas you want to analyze. These are the three Cs: company, competitor and customers.

Company and Competitors

There are many frameworks to understand companies and competitors. The most common ones are:

  1. SWOT analysis
    Strength, weakness, opportunities, threat
  2. Porter’s 5 Forces
    Competition in the industry, potential of new entrance into the industry, power of suppliers, power of customers, threat of substitute products
  3. 4 Ps of Marketing
    Product, price, place, promotion

Customers

There are many frameworks for the customer as well, but the one I have found most useful is customer journey mapping. Specifically, there are the five stages of awareness:  unaware, problem aware, solution aware, product aware and most aware.

Example: Ice cream shop

The problem we're trying to solve is there lacks something of high quality and something connected to the local community in the ice cream market. When someone is unaware, they don’t even know the problem exists; they never thought they wanted something local or of higher quality. When they are problem aware, they realize the ice cream they’ve been eating is not really high quality and they want something better. Then they go and try to solve that problem, bringing to the stage of being solution aware.

They might ask their “foodie” friends, who might make recommendations for artisanal shops focused on using local ingredients and producing high quality ice cream. This brings them to the next stage of being product aware, and specifically, being aware of your company’s product.

The last stage is most aware. This is when people are ready to make a decision. Your customer checks out your shop, you give them something to try and they think your product is exactly what they need. They decide to buy, and continue down their customer journey.

TL;DR

In Part 2 of this two-part series, we looked at Brainstorming Solutions and Structuring Analysis:

  1. Brainstorming Solutions: Morphological Analysis
    This framework breaks down the problem by identifying core components to come up with innovative solutions.
    Two tricks to use here are to be as specific as possible, and to switch up the elements if you’re feeling stuck or the ideas don’t seem interesting enough.
  2. Brainstorming Solutions: Payoff Matrix
    Plot your goals on two axes and place your ideas along the matrix. This helps to categorize and prioritize your ideas.
  3. Structuring Analysis: Companies and Competitors
    Common frameworks include SWOT, Porter’s 5 Forces, 4 Ps of marketing
  4. Structuring Analysis: Customers
    A useful framework is the customer journey mapping, using the five stages of awareness.

With these frameworks, you have a head start compared to everyone else who doesn’t use framework thinking yet. If you missed Part 1, check out the post here for consulting problem solving framework!

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