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By:
Twyla Garrett
happened to expenses | Twyla
Garrett

Agenda
 Problem Definition discussion
 Problem Definition Exercise
 Objectives:
1. Understand the Problem Definition Process
2. Be Able to Define a Client’s Problem

Ultimate Goal “Here”
How Do You Get “Here”?
Get Here

5 Fatal Flaws of Consulting
1. Projects not defined in terms of client results
2. Unrealistic solutions – beyond the resources
3. Unrealistic solutions – one big change
4. Non-collaborative consulting
5. Labor intensive use of consultants (instead of
leveraged use)

Good Consulting Techniques
1. Project goals are defined in terms of measurable
improvements in client bottom-line results.
2. Project scope determined by assessing what the
client organization will be willing and able to
absorb and implement.
3. Projects divided into steps to produce rapid
results and experience that lay foundation for
further progress.
4. Client and consultant work together as
partnership at every stage of the project.
5. Client teams take major responsibility for the
project, and consultants provide unique, focused

What’s a Problem?
Something that isn’t right that has finally reached
the point that it can’t be ignored any longer.

Problem Definition
Excellent Consulting
begins with
Accurate
Problem Definition

Problem Definiton
What is the difference between
The Symptoms and The Problem?

Presenting Problems =
Symptoms
Symptom - Back Pain
Ask questions:
Where? In the middle of my back &
sometimes my neck.
How long? About 2 hours.
When does it hurt? It started when I
was shoveling snow. It goes away if
I sit down and rest.
Are there any significant medical
issues in your family? Dad died
from a heart attack.
Do Research:
Check Pulse – rapid
Check BP – high
Check Breathing – labored and
shallow
Check Skin – pink, cool and damp
Hypothesis: Heart attack.
Treatment: Immediate cardiac care.
Symptom - Back Pain
Ask questions:
Where? In the middle of my back.
was shoveling snow. It goes
away if I sit up straight and don’t
turn my head.
issues in your family? No.
Do Research:
Check Pulse – normal
Check BP – normal
Check Breathing – slightly elevated
and shallow
Check Skin – pink, warm & dry
Hypothesis: Strained back muscles.
Treatment: Ibuprofen, heat,
relaxation.

Presenting Problems =
Symptoms
Symptom - Back Pain
Ask questions:
Where? In the middle of my back &
sometimes my neck.
was shoveling snow. It goes away
if I sit down and rest.
issues in your family? Dad died
from a heart attack.
Do Research:
Check Pulse – rapid
Check BP – high
Check Breathing – labored and
shallow
Check Skin – pink, cool and damp
Hypothesis: Heart attack.
Treatment: Immediate cardiac care.
Symptom - Back Pain
Ask questions:
Where? In the middle of my back.
was shoveling snow. It goes away
if I sit up straight and don’t turn my
head.
issues in your family? No.
Do Research:
Check Pulse – normal
Check BP – normal
Check Breathing – slightly elevated
and shallow
Check Skin – pink, warm & dry
Hypothesis: Strained back muscles.
Treatment: Ibuprofen, heat,
relaxation.

Presenting Problems
Presenting Problem –
Profitability
Ask Questions:
What has happened to sales?
Remained steady.
What has happened to expenses?
Increased
What areas have increased the
most? Cost of Goods Sold
(COGS)
Why? I’m not sure.
Research:
 Industry Norms
 Historical – COGS% up
 Break down components of
COGS – shipping costs 30%
above industry norm.
Hypothesis: Examine ways to
lower shipping costs of raw
Presenting Problem –
Profitability
Ask Questions:
What has happened to sales?
Declined.
What has happened to expenses?
Increased slightly.
What products have declined the
most? Our pink widgets.
Why? I’m not sure.
Research:
 Industry Norms
 Historical – Pink & Striped
widget sales are down
 Competition, trends, pricing,
etc.
Hypothesis: Competition has
increased in the Pink widget

Defining the Problem
1. Uncover the
Presenting Problems.
2. Identify the key
questions to ask and
investigate further.
3. Answer the key
questions and define
the overall issue.
4. Define a course
of action.

Issue Decomposition
Issue Decomposition = A tool to define/structure key
questions to be answered to solve a business issue
(i.e., Issue Tree)
Issue Tree Enables You to:
 Clearly state a business problem
 Understand the business problem’s key drivers and
components
 Identify interrelationships between factors
 Comprehensively answer/address the business problem
 Organize efforts to collect relevant information
 Communicate your approach, and, eventually, your
recommendations in a logical fashion

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Happened to expenses twyla garrett

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