Strategic problem-solving often has a very wide scope, intricate factors, and needs to take an interdisciplinary approach today.
Fundamentally running a business is an iterative problem-solving continuum. Problem-solving is about seeing a problem and actually delivering a real solution to that problem, not just the band-aid approach to fixing the symptom.
Business Case provides the description and reason for starting an initiative to solve business problems, particularly at the strategic level by articulating and aligning with VSSP (Vision-Strategy-Structure-People&Processes). Business cases should place enough focus on the "why" - understanding, qualifying, and quantifying the problem, also should focus on the "what" - the solution and outcome.
Context - problem definition: Due to the unprecedented level of business complexity, it is fundamental but critical to figure out what is exactly the problem. The assumption that there is a single cause to a "problem" in a complex adaptive business system is unhelpful. Assessing and defining problems is usually more important than solving them. Because it’s worthwhile considering why things are the way they are for, in doing so, you are challenging automatic assumptions that something needs fixing.
Often, events are observed on the surface, and then the action is taken, but that is too early. Until the underlying problem is addressed, the symptom or result will continue to return. Contextual problem framing helps to see a larger business system with interactive pieces and “conflict” goals. There are multiple, inter-related dynamics and you need to be looking for patterns rather than isolating causes. So problem framing is about addressing the correct need and perhaps the problem becomes how to identify the need at the right level, develop a good business case, and continue to ask 'Why is that a problem?' at each successive stage.
Solution options and which solution option is most aligned with the strategic goals of the business: A well-articulated business case helps the business management clarify: What solution options are available that will meet the business need and which option is the best option? Is it one solution or multiple solutions that will be required? Which solutions represent the best business value in terms of achievement of the business outcomes? The main emphasis is on doing "better pre-work" - defining alternative solutions and the "success criteria," enabling consideration of the range of options, rather than the more traditional "jump to solution" problem-solving methodology and practice.
It might be a good idea to first split problems into different categories and to assess the relative importance of the different categories and what could be done about it. You can simulate the problem-solving processes and identify the constraints, robustness, modularity, scalability, costs, requirements, stability, and everything else you would need for solution optimization. Knowing these before real problem-solving development will drastically increase the probability of success with a premium solution (as close as possible).
Viability projections of the solution over a period of time covering the ROI and NPV: It’s important to discover and design better solutions, to push the envelope, and to go beyond what is expected; and last but not least, you need to evaluate outcomes of problem-solving. A good business case will demonstrate some measure of ROI, ROA, or ROE, Net Present Value, Internal Rate of Return and time to pay back, etc. Having the appropriate performance indicators is very important. And taking a systematic approach to measurement can avoid blind-spots in problem-solving,
To project the solution over a period of time and evaluate the practicality and outcome of problem-solving, there are quite a lot of questions worth asking, such as: What if it takes six months longer than planned and anticipated? How is ROI affected if it costs you 50% more to do the project? What is the cost of not taking these business initiatives? How to accurately project the economic impact of the proposed solutions, etc, both in terms of future maintenance needs and the increased risk of disruption. Having answers to all those worse case scenarios or data-based analysis will demonstrate to finance sponsors that you’ve seriously thought through all possibilities and come up with an optimal solution.
Risks and issues associated with the solution: Business management should ponder what are the risks associated with the solution. Is the level of risk acceptable to the enterprise? Companies should put in place a risk appetite system that goes beyond high-level statements, a good business case helps to identify and prioritize risks, and then look to mitigate the most important risks to bring them within appetite and provide business solutions with risk intelligence.
In essence, the goal for risk management metrics and measures is to build an understanding of decision support for problem-solving. The pitfall is that the risk management system is detached from the real management of the business. Enterprise risk management has to be expanded into enterprise opportunity management and embed risk identification and assessment in operational processes and multiple management disciplines.
Problem-solving is about understanding a problem and actually discovering or designing a premium solution. Strategic problem-solving often has a very wide scope, intricate factors, and needs to take an interdisciplinary approach today. A good business case helps to articulate, define, and align strategic problem solving with VSSP (Vision-Strategy-Structure-People&Processes). A solution should match a problem and with that in mind, the one thing change would be to have a phrase at the heart of everything the organization does.
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