5

CASE SOLVING
180 DC BITS Goa

TRAINING MODULE 2-1

Complied by:
Shubham Chaplot
Yash Agarwal

180 Degrees Consulting

Problem Solving Methodology

SCQA
The SCQA is frequently used tool for case competitions. It works well both as a tool to understand the
context, challenges and key question of the case, but also as a communication tool to make a good
executive summary. We recommend that the team does the SCQA right after reading the case. A good
tip is to first do it individually and then as a group to ensure independent thinking and maximize chances
of getting it right. Make sure that you have a short and crisp SCQ that you are completely aligned on
before moving on the finding the right answer.

Situation – Set the scene

1
Must be indisputable & relevant to create buy-in among judges

Complication – Describe the problem

2
Must be biggest tension in your storyline

Question – Make it clear what you solve

3
Must arise logically from complication & be SMART*

Answer – Present your recommendation

4
Must release tension from complication and arise logically from question

The importance of the SCQA cannot be overstated: having the right understanding of the company and
solving the right problem is a must in order to win a case competition.

Example of SCQA
• We possess a number of strongholds today which have been the backbone of
our performance, namely Situation
–…
• However, lately performance has been declining … due to
Complication
–…
– …, having resulted in unsatisfactory sales and profit performance, as well as …

• Therefore, the key question we have to answer is… Question

Focus on XYZ will be essential to our future success

• Several possible directions have been considered and matched with current
business strengths
Recommen
–…
dation
• Given our current business strengths, our future goal should be
–…
• We will, therefore, build up our business model around …
* See SMART explanation on web

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Problem Solving Methodology
How Consultants
work
Hypothesis-driven problem solving
The most fundamental skill of any problem solver is hypothesis-based thinking. Structuring analyses in
this way ensures efficiency and focus because only relevant data is being analyzed. A crucial part of the
hypothesis-based methodology is to ensure that the formed hypothesis is falsifiable. When a falsifiable
hypothesis is formed, one should construct a framework that enables testing of the hypothesis and
collect the data required to do so.

Data required
to test the
hypothesis

Confirm Conclusion

Case Initial
Analysis
question hypothesis

New
Falsify
hypothesis

Relevant
framework to test
the hypothesis

Example:
Confirm / New
Question Hypothesis Analysis falsify hypothesis

How can the Increasing Scale Hypothesis New

client cut scale by 1% benchmark falsified. hypothesis:
procurement will reduce of main Regression Sourcing in
expenses by price per competitors. shows that emerging
10%? item bought Required scale does markets will
by 1.5% data: Price not affect reduce
per bought price per procurement
item and item expenses
volume for all
competitors

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Problem Solving Methodology
How Consultants
work
The MECE issue tree
Issue trees are used to break down complex problems into more manageable sub-issues. While the
previous section explained the process of hypothesis testing, the MECE framework helps identify the
relevant hypotheses. MECE is an acronym for "Mutually Exclusive, Collectively Exhaustive" and is a
way of organizing information – often in the context of issue trees. If the issue tree is done in a "MECE"
way, all sub-issues collectively exhaust the solution space (all possible solutions) and the sub-issues are
mutually exclusive (no sub-issues are overlapping). A MECE issue tree ensures that no possible
solution is missing and that work streams can be distributed among the case team members without any
duplication of the work.

Example:
Selected
Question MECE issue tree hypotheses

By putting pressure
on government in
How to reduce supply in
growing countries,
growing countries?
drug problems can
be reduced
How to reduce How to stop drugs in
supply for drugs transit?
By increasing the
How to punishment for
How to stop distribution in
reduce distributing drugs,
user countries?
the problems can be
quantity reduced
of drug
How to help users
use? recognize the real costs?
By increasing the
How to reduce
How to punish users punishment for using
demand for
more? drugs, problems can
drugs?
be reduced
How to reduce perceived
How can drug benefits of users?
problems be
reduced?
How to improve anti-
How to help addiction treatments?
users recover By handing out clean
from drugs? How to improve needles, drug
rehabilitation? problems can be
reduced
How to How to make drugs
reduce healthier and safer?
the How to reduce
By developing a
impact the dangers?
How to encourage switch new, healthier drug,
of drug
to less harmful drugs? drug problems can
use?
be reduced

How to make
How to reduce precautionary actions?
side-effect (e.g.
gangs, crime)? How to help drug-users
back from side-effects? 4
Problem Solving Methodology

Idea generation
We have experienced that most teams are having issues with switching into a highly creative mode to
come up with a good idea when they under time pressure. We have identified three common pitfalls
when teams try to brainstorm: 1) You try to think of the good idea directly 2) You hold back ideas that
could inspire your colleagues 3) You shut down your colleagues creativity by being realistic and critical
to early in the process. Shortly, we will present you with a simple method that allows you to avoid these
issues. Furthermore, we have also seen that a lot of teams struggle with deciding on a solution and
therefore spends a too much time in the brainstorming phase. The way to overcome this is to have a
process that the group has jointly decided on and which it trusts to give a “good enough” idea. Here it is
important to remember that there is no perfect solution. In the end, the winner will the team that presents
the most well-argued and compelling solution to the judges. Thus, the idea is just one parameter of your
solution and it is only as strong as your argumentation and story.

The method that we recommend to incorporate in your process is called” The Disney Dreamer”. It
consists of three phases that your team go through. First, we have the dreamer phase where you write
up all your ideas up a blackboard – everything is good enough, so not criticism. The trick here is to think
quantity over quality because you want expansive thinking and not restricted thinking. By being inspired
by each other’s crazy ideas, you will develop creative out of the box ideas you would otherwise never
have thought of. The next phase, the realist, is really all about thinking how can we make these crazy
ideas work. How can we adjust and combine them so that they actually become feasible? Force
yourself to find ways of making the impossible possible. The last phase, the spoiler, is finally the time to
be critical of your ideas. Bring out the devil’s advocate and narrow down your best solution/combined
solution. When you have completed the process, you will feel good about your solution because you
know it was the outcome of a comprehensive process.

The Dreamer The Realist The Spoiler

• Bring out all ideas! • Re-examine ideas • Be critical and find

• No criticism is • Re-work them into holes in your
allowed something practical solutions
• Think totally out of • Try to make the ideas • Narrow down the
the box possible – Think “how” best solutions

• ~20-25 minutes • ~15-20 minutes • ~15 minutes

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Problem Solving Methodology
An Approach to
Case Cracking
Backward case cracking approach
A highly effective approach to case cracking is to push your team to select a solution very early in the
process. This allows for the majority of the time being spent on building a solid argumentation and
obtaining depth in the solution. The team starts by doing the SCQ to narrow down the context and case
question. Directly thereafter, the team initiate a thorough brainstorm on recommendations to get all ideas
on the table. After this, the team narrows down the solution primarily based on business logic, only
making strictly necessary analysis and checkups with data outside of the case. Using this approach, a
team can settle on a solution within the first 4-6 hours. This makes the majority of the time available to
build the argumentation for the chosen solution, limiting time spent on other options that won’t be
presented anyway.

Based on business
logic and limited data

Case Brainstorm Select

Build Argumentation
question Solutions Solution

Comparison of the two problem solving approaches

Keep in mind that there is no “correct” solution in case competitions, just as in real world consulting.
Therefore, in a case competition an extra hour spent analyzing your way to the optimal solution might
sometimes be better spent on building your argumentation. The upside here is clear: The extra time
allows you to obtain more depth in your solution and strengthen your arguments. However, selecting
your solution based on less data points and analysis implies the risk of uncovering contradicting data
points at a later stage. Here you face the choice of “making it fit” or changing your solution and losing
time. The approach is often useful in case competitions, since the strict time pressure does not allow for
a full analysis of all relevant alternative solutions.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Hypothesis Driven Problem Solving

Backward case Cracking Approach

Time spent deciding on solution Time spent building argumentation Illustrative

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Structured and Effective
Communication

Story lining
When building slides, action titles are the foundation of your communication. Action titles summarize the
key message of the slide in as short a manner as possible. An action title differs from a regular headline,
as it provides a complete, sensible argument that would work outside the context of the given slide. The
idea of “story lining” is that a list of the action titles should work as a script that stands on its own and
summarizes your story. You can think of the action titles as collectively forming an “elevator speech” of
the case solution. It is a way to structure key messages and ensure consistent communication.

1 2 3 4 5
Front page By focusing on Changing competitive To successfully Simplicity has defined
simplicity, flexibility landscape and compete, the client must other industries for years
and transparency, the unsatisfied customers develop a simple and the client must
client can reduce put the client under platform that provides leverage the same
churn rates and grow pressure across all flexibility and enhances simplicity platform in their
product categories transparency value proposition
revenue from 2018

6 7 8 9 10
Flexibility to tailor Transparency in pricing Employing a risk Simplicity, flexibility and We recommend to
individual services will solves a central mitigating strategy will transparency improve reconnect with
enable the client to challenge for the client maximize revenue customer satisfaction customers by building a
provide customers and facilitates an potential while reducing and decrease churn, simple platform that
exactly what they want, improving customer risk resulting in strong top allows for service
thereby decreasing churn satisfaction line growth by 2018 flexibility and price
transparency

NB: Illustrative example only

Dot - Dash
The Dot-Dash is a helpful tool to structure your presentation that incorporates story lining. The idea is to
write out the key messages with supporting arguments for each slide. A bullet point (dot) represents the
headline of a slide and a hyphen (dash) represents a supporting argument/data point. We recommend
that you make a Dot-Dash after you have settled on a solution. By using the Dot-Dash you will structure
all of your key messages into a coherent story right from the start in a way that easily allows for
delegation of work.

Example of a Dot-Dash

• We possess a number of strongholds today which have been the backbone of our performance,
namely
– High customer loyalty (customer survey with churn rates)
– Low production
– High cost (graph
brand awareness for comparative
(customer survey withvariable cost across competitors)
brand awareness)
See SCQA example on earlier for more

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 Structured and Effective
Communication

Storyboarding
The storyboard is a translation of the Dot-Dash into slides and a tool for putting a presentation together
in an efficient way. You draw up the slides on a white board with action titles (dots) and then visualize
the supporting arguments (dashes). Visualizing ideas and arguments on slides require a lot of practice
and therefore it makes sense do to this together as a team to help each other out. Typically, some team
members are better than others at slide production, and storyboarding can help leverage the strengths
of different team members.

Example of a storyboarding

Situation points (Supporting situation Complication points (Supporting

slides) complication slides)
•… •…
•… •…
•… •…

Recommendation… 1. … 1.a. … 1.b. …

100
1. … a. … 80
60
2. … b. … 40
20
3. … c. … 0
1. kvt.2. kvt.3. kvt.4. kvt.

1.c. ..... Resolution main 2. … 2.a. …

… points
… a. …
1. …
… b. …
… 2. …
… c. …
… 3. …

Tell what you want to tell them, then tell them,

and then tell them what you just told them
To win a case competition, you have to communicate your findings
effectively. Generally, it is a good idea to repeat your main findings
three times to make sure the judges remember them. We
recommended that you start with an executive summary, then you
present the actual solution, and lastly, your synthesis the main findings
of the solution.

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 Structured and effective
communication

The Pyramid Structure

The pyramid structure is a principle of how to structure communication and thinking. The idea is to first
summarize the conclusion and then present the supporting arguments. Optimally, this should be done
following the MECE principle. Breaking thoughts down in this way has proved to be the most logical way
and makes it easier to understand for the receiver. Primarily, there are two ways of presenting
arguments, namely, the inductive reasoning structure and the deductive reasoning structure. Generally,
inductive is preferred as it is easier to follower, but deductive is very useful when making a controversial
point.

A The Pyramid Structure B Two main ways of presenting arguments

• Give answer upfront

S
• Easier to group thoughts
C • Easier overview for the
Q receiver
A
Top Inductive
reasoning structure
Down

• If receiver might
disagree upfront
• If receiver needs basic
understanding before
• Summarizes first conclusion /
• Easier for the receiver to digest – does not recommendation
Deductive
have to look for the pattern reasoning structure
• Structures in the most logical order

Example of deductive structure – argument

You must change

Statement Cause/why? How?

Here is what Here is what Thus, here is what
is going wrong is causing it you should do

Example of inductive structure – grouping

You must change

Why?
How? Do A Do B Do C

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Fundamentals of Slide Production

The major elements of a case presentation

There is no formal "right" way of structuring a case presentation. However, most presentation include an
executive summary, analysis providing key insights, elaboration of proposed recommendations, financial
impact, risk assessment, implementation plan of the solution and a summary. Below you will find one
example of how to structure a slide deck

• Set the stage and tell them what challenge you are solving
"Executive
• Tell the recommendation and its impact up front
summary"
• Tool: SCQA – 1-2 Slides

• Identify the sub-problem and what is causing it

”Key insights" • This part should drive towards your recommendation
• 2-4 slides

• Detailed description of each of your recommendations

”Solution" • Body of the case deck – clear communication is key
• 2-5 slides

• What is the implementation strategy and what are the risks?

"Impact, risk and • What is the impact? Show that you solve the problem!
implementation" • 3-4 slides

• Synthesize solution with context created in the executive

"Summary" • A catchy ending with a call to action
• Less than 1 minute – 1 slide only

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 Fundamentals of Slide Production

Building blocks of a case competition slide

Every slide should serve one of the following three purposes: 1) Communicate a set of key implications
or facts. 2) Guide the audience through different analyses or create a logical transition. 3) Drive towards
recommendation. Below we give an example of how to structure a slide.

Transparency in pricing solves a fundamental problem for the Client Logo

Always
Action title client and facilitates an improving customer satisfaction include the
conveys logo of the
the key case
message In the telco industry 60% of customer This is a central problem for the client, but is company
inquiries concerns billing issues solved with transparent pricing
of the slide
Customer Recommendation Billing easy to understand
complaints score -18
Transparent pricing
100% 8% 100%
100 Highlight
Key 13% 76 73 75 70 important
60% 66
takeaway 55 aspects of
of graph is 50% 50 the data
told in the
header
0% 0
Billing Installation Other Total TDC Telia Telenor
Use of issues problems inquires
graphics to Especially for the client, price transparency is a
Customers in the telco industry face severe weak spot
enhance difficulty in understanding their bills • Transparency remains an obvious lever for
communi- • Why are some calls free when others are not? customer satisfaction Tracker to
cation • Why am I charged extra for this • Quick wins are realizable even if help
particular service? performance is only increased to peer levels guiding the
audience

Executive Insights Solution Impact Summary

Slide writing
commandments

• Synthesis:Synthesize many analyses into one story

• Accuracy: Use precise, clear communication with no ambiguity
• Transparency: Transparent logic and connection between data and conclusion
• Impact: Highlight key implications and explain the insights
Design principles • Context. Tell the story that addresses your audience's concerns, not your story

• Show it, don't tell it – a figure is worth a thousand bullets

• Less is more – design your slides for quick reading
• Keep focus on what is important - avoid excessive use of colors
• Focus on one key message per slide

Text or graphs?

• Qualitativeinformation ➔ Text slide with supporting visuals

• Quantitative information or relationship ➔ Graph
• When details are demanded ➔Table or matrices
• Clear graphics to support conclusion, explicit text to explain insight

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