Consulting

Consulting Frameworks

Comprehensive methodologies used by top consulting firms (McKinsey, BCG, Bain, Accenture) for problem-solving, strategy, and business transformation.

How to Consult

When applying this skill, act like an engagement manager, not an encyclopedia:

1. Clarify before analyzing. If the problem is vague, ask up to 3 questions about scope, success criteria, and constraints — or state your assumptions explicitly and proceed. 2. Lead with a Day-1 hypothesis. State your initial answer early, then use analysis to test it. Don't survey frameworks hoping an answer emerges. 3. Pick 1–3 frameworks, not many. Choose the ones that fit the question (use the Quick Framework Selection below) and apply them deeply. Listing frameworks is not analysis. 4. Show your structure. Render issue trees and matrices as ASCII diagrams so the user can challenge the breakdown. Keep every breakdown MECE. 5. Quantify wherever possible. Rough numbers with stated assumptions beat qualitative hand-waving. Sanity-check estimates top-down and bottom-up. 6. End every analysis with "So what?" Conclusions must be recommendations the user can act on, not observations. Structure final answers with the Pyramid Principle: answer first, then 3–5 supporting arguments. 7. Offer a deliverable. When a template matches the work (SWOT report, business case, project charter, RACI, BMC), offer to fill it in.

Framework Categories

Quick Framework Selection

"I need to solve a complex problem"

→ McKinsey 7-Step Process + MECE + Issue Tree See: problem-solving.md

"I need to structure a presentation"

→ Pyramid Principle + SCQ + Storyboarding See: problem-solving.md

"I need to analyze a company or market"

→ PESTEL (macro) + Porter's 5 Forces (industry) + SWOT (company) + 3C (positioning) See: strategy.md

"I need to evaluate growth options"

→ Ansoff Matrix + GE-McKinsey Matrix + BCG Matrix See: strategy.md

"I need to create a new strategy"

→ Blue Ocean + VRIO + Porter's Generic Strategies See: strategy.md

"Why are profits declining?"

→ Profitability Framework (Revenue × Volume breakdown) See: cases.md

"How big is this market?"

→ Market Sizing (Top-down + Bottom-up) See: cases.md

"Should we acquire this company?"

→ M&A Framework + Due Diligence + Synergy Analysis See: cases.md

"What price should we set?"

→ Pricing Framework (Cost-plus, Value-based, Competitive) See: cases.md

"Should we enter this market?"

→ Market Entry Framework + Porter's 5 Forces + Profitability See: cases.md

"I'm designing a new product or business"

→ Business Model Canvas + Design Thinking + Customer Journey See: design.md

"I'm managing a project"

→ WBS + RACI + Risk Matrix + Stakeholder Analysis See: projects.md

"I'm driving organizational change"

→ Kotter's 8 Steps + ADKAR + Stakeholder Analysis See: projects.md

"I need to set goals and measure performance"

→ OKRs + Balanced Scorecard + KPIs See: projects.md

"I need to make an investment decision"

→ NPV + IRR + Payback + Sensitivity Analysis See: finance.md

"I need to improve operations"

→ Process Mapping + Root Cause Analysis + Lean + Six Sigma See: operations.md

The Complete Consulting Flow

1. RECEIVE PROBLEM
   └── Clarify scope and success criteria
              ↓
2. CREATE DAY-1 ANSWER
   └── Initial hypothesis based on experience
              ↓
3. DEFINE PROBLEM (SCQ)
   └── Situation, Complication, Question
              ↓
4. STRUCTURE (MECE + Issue Tree)
   └── Break into testable components
              ↓
5. PRIORITIZE (80/20)
   └── Focus on high-impact branches
              ↓
6. BUILD WORKPLAN
   └── Who, what, when, how
              ↓
7. STORYBOARD (Ghostpack)
   └── Design the end deliverable
              ↓
8. CONDUCT ANALYSES
   └── Test hypotheses with data
              ↓
9. SYNTHESIZE ("So What?")
   └── Extract insights and implications
              ↓
10. STRUCTURE COMMUNICATION (Pyramid)
    └── Answer-first, supporting arguments
              ↓
11. PRESENT & DELIVER
    └── Communicate, get approval, implement

Framework Combinations

Strategic Planning

PESTEL → Porter's 5 Forces → 3C → SWOT → Issue Tree → Recommendations

New Market Entry

Market Sizing → Porter's 5 Forces → 3C → Market Entry Framework → Financial Analysis

M&A Evaluation

Strategic Rationale → Target Analysis → Due Diligence → Synergies → Valuation → Integration Plan

Business Turnaround

Profitability Analysis → Root Cause → Value Chain → Cost Reduction → Quick Wins → Transformation Roadmap

Product Launch

Market Sizing → STP → Business Model Canvas → Pricing → Go-to-Market → OKRs

Transformation Program

Current State → Gap Analysis → Kotter's 8 Steps → WBS → RACI → Balanced Scorecard

Available Templates

See templates/ for ready-to-use documents:

• SWOT Analysis Report
• Business Model Canvas
• Business Case Template
• Project Charter
• RACI Matrix

Framework Index (Alphabetical)

Case Interview & Analysis Frameworks

Core frameworks for common business case types: profitability, market sizing, M&A, pricing, and market entry.

Profitability Framework

Purpose: Diagnose why profits are declining or how to improve profitability.

The Basic Equation

PROFIT = REVENUE - COSTS

Revenue = Price × Volume
        = Price × (Customers × Transactions × Units per Transaction)

Costs = Fixed Costs + Variable Costs
      = (Rent, Salaries, etc.) + (COGS, Commissions, etc.)

Profitability Tree

Profit Decline
├── Revenue Decline
│   ├── Price Decline
│   │   ├── Competitive pressure
│   │   ├── Customer negotiation
│   │   └── Product commoditization
│   └── Volume Decline
│       ├── Fewer customers
│       │   ├── Lower acquisition
│       │   └── Higher churn
│       ├── Lower frequency
│       └── Smaller basket size
└── Cost Increase
    ├── Variable Costs
    │   ├── Raw materials
    │   ├── Direct labor
    │   └── Sales commissions
    └── Fixed Costs
        ├── Rent/facilities
        ├── Salaries (overhead)
        └── Depreciation

Diagnostic Questions

Revenue Side:

• Is revenue declining, flat, or growing slower than market?
• Is it a price problem or a volume problem?
• Is it affecting all products/regions or specific ones?
• When did it start? What changed?
• What are competitors doing?

Cost Side:

• Are costs increasing absolutely or as a % of revenue?
• Which cost categories are growing fastest?
• How do our costs compare to competitors?
• What's driving the cost increases?

Profitability Analysis Template

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Market Sizing

Purpose: Estimate the size of a market, opportunity, or quantity.

Two Approaches

Top-Down Approach

Start with total population, then apply filters:

Total Market = Population × % Applicable × Usage Rate × Price

Example: Coffee shop revenue in NYC
- NYC Population: 8 million
- % Adults (18+): 75% → 6 million
- % Coffee drinkers: 60% → 3.6 million
- % Buy out (vs home): 40% → 1.44 million
- Cups per week: 3 → 4.32 million cups/week
- Price per cup: $4 → $17.3 million/week
- Annual market: ~$900 million

Bottom-Up Approach

Build from individual unit:

Market Size = # of Units × Revenue per Unit

Example: Coffee shop revenue in NYC
- # Coffee shops in NYC: ~3,000
- Average customers/day: 200
- Average ticket: $5
- Revenue/shop/day: $1,000
- Days/year: 350
- Revenue/shop/year: $350,000
- Total market: $350,000 × 3,000 = $1.05 billion

Sanity Check

Always cross-check with:

• Alternative calculation method
• Known benchmarks
• Common sense ("does this feel right?")

Market Sizing Structures

Common Assumptions to Know

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M&A Framework (Mergers & Acquisitions)

Purpose: Evaluate whether to acquire a company and at what price.

M&A Decision Framework

Should We Acquire?
├── Strategic Rationale
│   ├── Why buy vs. build vs. partner?
│   ├── What's the strategic goal?
│   └── Does target align with our strategy?
├── Target Attractiveness
│   ├── Market position
│   ├── Financial performance
│   ├── Competitive advantages
│   └── Management quality
├── Synergies
│   ├── Revenue synergies
│   ├── Cost synergies
│   └── How achievable are they?
├── Risks
│   ├── Integration risk
│   ├── Cultural fit
│   ├── Key person dependency
│   └── Hidden liabilities
└── Valuation
    ├── Standalone value
    ├── Synergy value
    ├── Premium justified?
    └── Returns meet hurdle rate?

Types of Synergies

Synergy Analysis

Revenue Synergies:

• Cross-sell products to each other's customers
• Enter new markets with combined capabilities
• Increase pricing power
• Accelerate growth through combined R&D

Cost Synergies:

• Eliminate duplicate functions (HR, Finance, IT)
• Consolidate facilities
• Purchasing economies of scale
• Shared services

Due Diligence Checklist

Valuation Methods

M&A Return Calculation

Value Created = Synergies - Premium Paid - Integration Costs

Example:
- Target standalone value: $100M
- Synergies (NPV): $30M
- Acquisition price: $120M
- Premium paid: $20M
- Integration costs: $5M
- Value created: $30M - $20M - $5M = $5M

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Pricing Framework

Purpose: Set or adjust prices for products/services.

Pricing Approaches

                    ┌─────────────────┐
                    │     PRICING     │
                    └────────┬────────┘
                             │
         ┌───────────────────┼───────────────────┐
         │                   │                   │
    ┌────┴────┐        ┌─────┴─────┐       ┌────┴────┐
    │  COST   │        │   VALUE   │       │ COMPET. │
    │  PLUS   │        │   BASED   │       │  BASED  │
    └─────────┘        └───────────┘       └─────────┘

    Cost + Margin      What customer      Match or beat
                       willing to pay     competitor

Pricing Methods

Value-Based Pricing

Customer Value = Reference Value + Differentiation Value
                = Best alternative + Added value of our product

Maximum Price = Customer Value
Actual Price = Customer Value × Value Capture %

Price Sensitivity Analysis

Factors that reduce price sensitivity:

• Unique product features
• High switching costs
• Low price relative to total cost
• Shared cost (someone else pays)
• Quality/prestige importance
• Can't easily compare prices

Pricing Decision Tree

Pricing Decision
├── Understand Customer Value
│   ├── What problem does it solve?
│   ├── What alternatives exist?
│   └── What would customer pay?
├── Analyze Costs
│   ├── Variable cost per unit
│   ├── Contribution margin required
│   └── Break-even volume
├── Assess Competition
│   ├── Competitor prices
│   ├── Competitor reactions
│   └── Market positioning
└── Set Price
    ├── List price
    ├── Discount structure
    └── Terms and conditions

Price Elasticity

Elasticity = % Change in Quantity / % Change in Price

If Elasticity > 1: Demand is elastic (lower price → higher revenue)
If Elasticity < 1: Demand is inelastic (higher price → higher revenue)

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Market Entry Framework

Purpose: Decide whether and how to enter a new market.

Market Entry Decision Tree

Should We Enter This Market?
├── Market Attractiveness
│   ├── Size and growth
│   ├── Profitability
│   ├── Competitive intensity
│   └── Barriers to entry
├── Company Fit
│   ├── Do we have required capabilities?
│   ├── Can we leverage existing assets?
│   ├── Strategic alignment
│   └── Risk tolerance
├── Entry Strategy
│   ├── Organic build
│   ├── Acquisition
│   ├── Partnership/JV
│   └── Licensing
└── Implementation
    ├── Investment required
    ├── Timeline
    ├── Success factors
    └── Exit criteria

Market Attractiveness Analysis

Entry Mode Comparison

Go/No-Go Criteria

Barriers to Entry

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Combining Frameworks

Typical Case Flow

1. CLARIFY THE OBJECTIVE
   └── What exactly are we trying to solve?
              ↓
2. STRUCTURE THE PROBLEM
   └── Which framework(s) apply?
              ↓
3. HYPOTHESIZE
   └── What do we think the answer is?
              ↓
4. ANALYZE
   └── Test each branch systematically
              ↓
5. SYNTHESIZE
   └── What did we learn? So what?
              ↓
6. RECOMMEND
   └── What should the client do?

Framework Selection Guide

Multi-Framework Cases

Many cases require combining frameworks:

"Should we launch a new product?" 1. Market Sizing → Is the opportunity big enough? 2. Market Entry → Can we compete effectively? 3. Profitability → Will it be profitable? 4. Pricing → What should we charge?

"How do we turn around this business?" 1. Profitability → Where are we losing money? 2. 3C Analysis → What's the competitive situation? 3. Value Chain → Where can we improve? 4. Prioritization → What should we do first?

Business Design Frameworks

Frameworks for designing new businesses, products, and customer experiences.

Business Model Canvas

Origin: Alexander Osterwalder, 2008

Purpose: Visualize and design business models on a single page.

The Canvas

┌─────────────────────────────────────────────────────────────────────────────┐
│                          BUSINESS MODEL CANVAS                               │
├──────────────┬──────────────┬──────────────┬──────────────┬────────────────┤
│              │              │              │              │                │
│    KEY       │    KEY       │    VALUE     │  CUSTOMER    │   CUSTOMER     │
│  PARTNERS    │  ACTIVITIES  │ PROPOSITIONS │ RELATIONSHIPS│   SEGMENTS     │
│              │              │              │              │                │
│  (8)         │  (7)         │  (2)         │  (4)         │  (1)           │
│              │              │              │              │                │
│  Partners    │  Activities  │  Value Prop  │  Relationships │  Customers    │
│              │              │              │              │                │
│              ├──────────────┤              ├──────────────┤                │
│              │              │              │              │                │
│              │    KEY       │              │   CHANNELS   │                │
│              │  RESOURCES   │              │              │                │
│              │              │              │  (3)         │                │
│              │  (6)         │              │              │                │
│              │              │              │  Channels    │                │
│              │  Resources   │              │              │                │
│              │              │              │              │                │
├──────────────┴──────────────┴──────────────┴──────────────┴────────────────┤
│                                                                             │
│           COST STRUCTURE                    REVENUE STREAMS                 │
│           (9)                               (5)                             │
│                                                                             │
│           Cost Structure                    Revenue Streams                   │
│                                                                             │
└─────────────────────────────────────────────────────────────────────────────┘

The 9 Building Blocks

Right Side (Value Creation & Delivery)

1. Customer Segments Who are we creating value for?

Types:

• Mass market
• Niche market
• Segmented
• Diversified
• Multi-sided platforms

2. Value Propositions What value do we deliver to the customer?

Elements:

• Newness
• Performance
• Customization
• Design
• Brand/Status
• Price
• Cost reduction
• Risk reduction
• Accessibility
• Convenience

3. Channels How do we reach our customers?

Phases: 1. Awareness 2. Evaluation 3. Purchase 4. Delivery 5. After-sales

4. Customer Relationships What relationship does each segment expect?

Types:

• Personal assistance
• Dedicated personal assistance
• Self-service
• Automated services
• Communities
• Co-creation

5. Revenue Streams For what value are customers willing to pay?

Types:

• Asset sale
• Usage fee
• Subscription
• Lending/Renting/Leasing
• Licensing
• Brokerage fees
• Advertising

Left Side (Efficiency)

6. Key Resources What do we need to deliver our value proposition?

Types:

• Physical
• Intellectual
• Human
• Financial

7. Key Activities What must we do to deliver our value proposition?

Types:

• Production
• Problem solving
• Platform/network

8. Key Partners Who are our key partners and suppliers?

Motivations:

• Optimization
• Risk reduction
• Resource acquisition

9. Cost Structure What are the most important costs?

Characteristics:

• Cost-driven
• Value-driven
• Fixed costs
• Variable costs
• Economies of scale
• Economies of scope

How to Use the Canvas

1. Start with Customer Segments - Who are you serving? 2. Define Value Propositions - What problem do you solve? 3. Map Channels & Relationships - How do you reach and keep customers? 4. Identify Revenue Streams - How do you make money? 5. List Key Resources & Activities - What do you need and do? 6. Add Key Partners - Who helps you? 7. Calculate Cost Structure - What does it cost? 8. Iterate - Test assumptions, refine

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Design Thinking

Origin: IDEO, Stanford d.school

Purpose: Human-centered approach to innovation and problem-solving.

The Five Stages

     ┌─────────┐    ┌─────────┐    ┌─────────┐    ┌─────────┐    ┌─────────┐
     │         │    │         │    │         │    │         │    │         │
     │EMPATHIZE│───▶│ DEFINE  │───▶│ IDEATE  │───▶│PROTOTYPE│───▶│  TEST   │
     │         │    │         │    │         │    │         │    │         │
     └─────────┘    └─────────┘    └─────────┘    └─────────┘    └─────────┘
           │                                                           │
           └───────────────────── ITERATE ─────────────────────────────┘

Stage Details

1. Empathize

Goal: Understand users deeply

Methods:

• User interviews
• Observation
• Immersion
• Journey mapping

Questions:

• What do users say?
• What do users do?
• What do users think?
• What do users feel?

2. Define

Goal: Frame the right problem

Tools:

• Point of View (POV) statement
• How Might We (HMW) questions
• Persona creation

POV Template:

[USER] needs [NEED] because [INSIGHT]

Example:
"Busy working parents need quick healthy meal solutions
because they feel guilty about feeding their kids fast food
but don't have time to cook."

HMW Questions:

How might we... help busy parents prepare healthy meals quickly?
How might we... reduce guilt about meal choices?
How might we... make cooking feel less time-consuming?

3. Ideate

Goal: Generate many possible solutions

Methods:

• Brainstorming
• Worst possible idea
• SCAMPER
• Mind mapping
• Crazy 8s

Brainstorming Rules: 1. Defer judgment 2. Encourage wild ideas 3. Build on others' ideas 4. Stay focused on topic 5. One conversation at a time 6. Be visual 7. Go for quantity

4. Prototype

Goal: Build to think and test

Principles:

• Start rough
• Fail fast
• Build to learn
• Low fidelity first

Prototype Types:

• Paper prototypes
• Storyboards
• Role-playing
• Digital mockups
• Physical models

5. Test

Goal: Learn from user feedback

Methods:

• Usability testing
• A/B testing
• Feedback sessions

Questions to Ask:

• What worked?
• What didn't work?
• What questions do you have?
• What would you change?

---

Customer Journey Mapping

Purpose: Visualize the complete customer experience across all touchpoints.

Journey Map Structure

┌─────────────────────────────────────────────────────────────────────────┐
│                      CUSTOMER JOURNEY MAP                                │
├─────────────┬─────────────┬─────────────┬─────────────┬────────────────┤
│   STAGE     │  AWARENESS  │CONSIDERATION│  PURCHASE   │   RETENTION    │
├─────────────┼─────────────┼─────────────┼─────────────┼────────────────┤
│   ACTIONS   │             │             │             │                │
├─────────────┼─────────────┼─────────────┼─────────────┼────────────────┤
│ TOUCHPOINTS │             │             │             │                │
├─────────────┼─────────────┼─────────────┼─────────────┼────────────────┤
│  THOUGHTS   │             │             │             │                │
├─────────────┼─────────────┼─────────────┼─────────────┼────────────────┤
│  EMOTIONS   │             │             │             │                │
├─────────────┼─────────────┼─────────────┼─────────────┼────────────────┤
│ PAIN POINTS │             │             │             │                │
├─────────────┼─────────────┼─────────────┼─────────────┼────────────────┤
│OPPORTUNITIES│             │             │             │                │
└─────────────┴─────────────┴─────────────┴─────────────┴────────────────┘

How to Create a Journey Map

1. Define the persona - Who is the customer? 2. Define the scenario - What goal are they trying to achieve? 3. List the stages - What phases do they go through? 4. Map touchpoints - Where do they interact with you? 5. Capture emotions - How do they feel at each stage? 6. Identify pain points - Where are they frustrated? 7. Find opportunities - How can you improve?

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STP (Segmentation, Targeting, Positioning)

Origin: Philip Kotler

Purpose: Define target market and competitive positioning.

The STP Process

┌─────────────────┐     ┌─────────────────┐     ┌─────────────────┐
│                 │     │                 │     │                 │
│  SEGMENTATION   │────▶│   TARGETING     │────▶│  POSITIONING    │
│                 │     │                 │     │                 │
│  Divide market  │     │ Select segments │     │ Define position │
│  into segments  │     │   to focus on   │     │  in customers'  │
│                 │     │                 │     │     minds       │
└─────────────────┘     └─────────────────┘     └─────────────────┘

1. Segmentation

Segmentation Variables:

2. Targeting

Targeting Strategies:

Segment Evaluation Criteria:

• Size and growth potential
• Structural attractiveness (competition)
• Company fit (resources, capabilities)

3. Positioning

Positioning Statement Template:

For [TARGET SEGMENT]
Who [NEED/WANT]
[PRODUCT/BRAND] is a [CATEGORY]
That [KEY BENEFIT]
Unlike [COMPETITORS]
[PRODUCT/BRAND] [KEY DIFFERENTIATOR]

Example:

For busy professionals
Who need to stay productive on the go
MacBook Air is a premium laptop
That combines power with extreme portability
Unlike other ultrabooks
MacBook Air offers seamless integration with iPhone and Apple ecosystem

Positioning Map:

                    HIGH PRICE
                        │
                        │    ○ Premium
                        │
        ○ Niche         │         ○ Luxury
                        │
   LOW ─────────────────┼───────────────── HIGH
   QUALITY              │                 QUALITY
                        │
        ○ Budget        │         ○ Value
                        │
                        │    ○ Economy
                    LOW PRICE

Financial Analysis Frameworks

Frameworks for evaluating investments, building business cases, and making financial decisions.

Return on Investment (ROI)

Purpose: Measure the gain or loss generated relative to the investment cost.

Formula

ROI = (Net Benefit / Cost) × 100%

Where:
- Net Benefit = Total Benefits - Total Costs
- Cost = Initial Investment

Example

Calculation:

• Total Benefits: $40,000 × 3 = $120,000
• Total Costs: $100,000 + ($10,000 × 3) = $130,000
• Net Benefit: $120,000 - $130,000 = -$10,000
• ROI: (-$10,000 / $100,000) × 100% = -10%

ROI Limitations

• Doesn't account for time value of money
• Doesn't consider risk
• Can be manipulated by timeframe selection
• Ignores qualitative benefits

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Net Present Value (NPV)

Purpose: Calculate the present value of future cash flows, accounting for the time value of money.

Formula

NPV = Σ [Cash Flow_t / (1 + r)^t] - Initial Investment

Where:
- t = time period
- r = discount rate
- Cash Flow_t = cash flow in period t

Simplified Table Approach

Discount Factors

NPV Decision Rule

• NPV > 0: Project creates value → Accept
• NPV < 0: Project destroys value → Reject
• NPV = 0: Project breaks even → Indifferent

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Internal Rate of Return (IRR)

Purpose: Find the discount rate at which NPV equals zero.

Interpretation

• IRR is the project's "break-even" discount rate
• Compare IRR to your required rate of return (hurdle rate)

Decision Rule

• IRR > Hurdle Rate: Accept
• IRR < Hurdle Rate: Reject

Example

If a project has an IRR of 15% and your company's cost of capital is 10%:

• The project returns more than it costs to fund → Accept

IRR Limitations

• Assumes reinvestment at IRR rate
• Can give multiple values with non-conventional cash flows
• Doesn't account for project size
• Use NPV for mutually exclusive projects

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Payback Period

Purpose: Determine how long it takes to recover the initial investment.

Simple Payback

Payback Period = Initial Investment / Annual Cash Flow

Example:
- Investment: $100,000
- Annual Cash Flow: $25,000
- Payback: $100,000 / $25,000 = 4 years

Uneven Cash Flows

Payback: 3 years + ($10,000 / $50,000) = 3.2 years

Discounted Payback

Same approach but using present values of cash flows.

Payback Limitations

• Ignores cash flows after payback
• Ignores time value of money (unless discounted)
• Doesn't measure profitability
• Arbitrary acceptance threshold

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Break-Even Analysis

Purpose: Determine the point where revenue equals costs.

Formula

Break-Even Units = Fixed Costs / (Price per Unit - Variable Cost per Unit)

Break-Even Revenue = Fixed Costs / Contribution Margin Ratio

Where:
- Contribution Margin = Price - Variable Cost
- Contribution Margin Ratio = Contribution Margin / Price

Example

Break-Even Units: $50,000 / $40 = 1,250 units/month Break-Even Revenue: 1,250 × $100 = $125,000/month

Break-Even Chart

Revenue/Cost ($)
     │
     │                    ╱ Revenue
     │                  ╱
     │                ╱
     │              ╱ ──── Break-Even Point
     │            ╱╱
     │          ╱╱   Total Costs
     │        ╱╱
     │──────╱╱─────── Fixed Costs
     │    ╱
     └──────────────────────────── Units

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Sensitivity Analysis

Purpose: Understand how changes in assumptions affect outcomes.

One-Way Sensitivity

Test one variable at a time:

Tornado Diagram

                    NPV Impact
         -$500K   -$250K    $0    +$250K   +$500K
              │       │      │       │       │
   Revenue    ████████████████████████████████
   Costs      ██████████████████████████
   Volume     █████████████████████
   Price      ███████████████
   Timing     █████████

Scenario Analysis

Expected NPV = (0.2 × $2.5M) + (0.6 × $1.0M) + (0.2 × -$0.5M) = $1.0M

---

Business Case Template

Executive Summary

• Investment required
• Expected benefits
• Recommendation

Current State

• Problem or opportunity
• Impact of doing nothing

Options Considered

Financial Analysis

Qualitative Benefits

• Strategic alignment
• Risk reduction
• Customer satisfaction
• Employee productivity

Risks and Mitigation

Implementation Plan

• Key milestones
• Resource requirements
• Timeline

Recommendation

[Clear recommendation with rationale]

---

Quick Decision Guide

Decision Hierarchy

1. NPV is the gold standard - maximizes shareholder value 2. IRR is useful for comparing projects of similar risk 3. Payback adds a liquidity/risk constraint 4. ROI is simple but should be supplementary

Operations & Process Improvement Frameworks

Frameworks for analyzing processes, identifying inefficiencies, and driving operational excellence.

Process Mapping

Purpose: Visualize workflows to understand and improve processes.

Types of Process Maps

SIPOC Diagram

Suppliers → Inputs → Process → Outputs → Customers

┌──────────┬──────────┬──────────────────┬──────────┬──────────┐
│ SUPPLIERS│  INPUTS  │     PROCESS      │ OUTPUTS  │CUSTOMERS │
├──────────┼──────────┼──────────────────┼──────────┼──────────┤
│          │          │  ┌───┐   ┌───┐   │          │          │
│ Vendor A │ Material │  │ 1 │──▶│ 2 │   │ Product  │ Customer │
│          │          │  └───┘   └───┘   │          │          │
│ Dept. B  │ Data     │    │       │     │ Report   │ Manager  │
│          │          │    ▼       ▼     │          │          │
│          │          │  ┌───┐   ┌───┐   │          │          │
│          │          │  │ 3 │──▶│ 4 │   │          │          │
│          │          │  └───┘   └───┘   │          │          │
└──────────┴──────────┴──────────────────┴──────────┴──────────┘

Flowchart Symbols

Swimlane Diagram

┌─────────────────────────────────────────────────────────────┐
│ CUSTOMER    │ Request ──▶ Receive ────────────────▶ Pay     │
├─────────────┼───────────────────────────────────────────────┤
│ SALES       │    │                  ▲                       │
│             │    ▼                  │                       │
│             │ Review ──▶ Quote ─────┘                       │
├─────────────┼───────────────────────────────────────────────┤
│ OPERATIONS  │              │                                │
│             │              ▼                                │
│             │         Fulfill ──▶ Ship                      │
└─────────────┴───────────────────────────────────────────────┘

Value Stream Map Elements

---

Root Cause Analysis

Purpose: Identify the underlying causes of problems, not just symptoms.

5 Whys

Repeatedly ask "Why?" to drill down to the root cause.

Example:

Root Cause: Outdated compensation practices Solution: Implement annual market salary reviews

5 Whys Best Practices

1. Focus on process, not people (avoid blame) 2. Base answers on facts, not assumptions 3. May need more or fewer than 5 whys 4. Often multiple root causes - branch out 5. Verify the chain - does fixing root cause fix problem?

Fishbone (Ishikawa) Diagram

Purpose: Categorize potential causes systematically.

                                    ┌─────────────────┐
         ┌──────────────────────────│    PROBLEM      │
         │                          └─────────────────┘
         │                                   │
    ─────┼─────────────────────────────────────────────
    Man  │  Machine        Method  │  Material
         │     │              │    │     │
    ┌────┴───┐ │          ┌───┴──┐ │ ┌───┴───┐
    │Cause 1 │ │          │Cause4│ │ │Cause 6│
    └────────┘ │          └──────┘ │ └───────┘
           ┌───┴───┐           ┌───┴──┐
           │Cause 2│           │Cause5│
           └───────┘           └──────┘
        ┌───────┐
        │Cause 3│
        └───────┘

6M Categories (Manufacturing)

8P Categories (Service)

---

Lean Principles

Origin: Toyota Production System

Purpose: Eliminate waste and maximize customer value.

The 8 Wastes (DOWNTIME)

Lean Tools

5S Methodology

---

Six Sigma

Origin: Motorola, 1980s

Purpose: Reduce variation and defects using statistical methods.

DMAIC Framework

Sigma Levels

Key Six Sigma Metrics

---

Pareto Analysis (80/20 Rule)

Purpose: Focus on the vital few causes that create most impact.

Pareto Principle

80% of effects come from 20% of causes

Examples:

• 80% of revenue from 20% of customers
• 80% of defects from 20% of causes
• 80% of complaints from 20% of issues

Pareto Chart

Defect Count                              Cumulative %
    │                                           100%
100 │ ████                                 ──────●
    │ ████                           ──────●
 80 │ ████ ████                 ────●
    │ ████ ████           ────●     ─────────────80%
 60 │ ████ ████ ████ ────●
    │ ████ ████ ████●
 40 │ ████ ████ ████ ████
    │ ████ ████ ████ ████ ████
 20 │ ████ ████ ████ ████ ████ ████
    │ ████ ████ ████ ████ ████ ████ ████
    └─────────────────────────────────────────────
      Cat A Cat B Cat C Cat D Cat E Cat F Cat G

How to Create

1. List all categories/causes 2. Count occurrences or impact for each 3. Sort descending by count 4. Calculate cumulative percentage 5. Draw bar chart (counts) and line (cumulative %) 6. Identify the 20% causing 80% of issues

---

Continuous Improvement Cycle (PDCA)

Origin: W. Edwards Deming

Purpose: Iterative improvement through experimentation.

The PDCA Cycle

         ┌─────────────┐
         │    PLAN     │
         │  - Identify │
         │  - Analyze  │
         │  - Plan     │
         └──────┬──────┘
                │
    ┌───────────┴───────────┐
    │                       │
    ▼                       ▼
┌───────┐             ┌───────┐
│  ACT  │◄────────────│  DO   │
│       │             │       │
│Adopt  │             │Test   │
│Adjust │             │Pilot  │
│Abandon│             │Execute│
└───┬───┘             └───┬───┘
    │                     │
    └──────────┬──────────┘
               │
        ┌──────┴──────┐
        │    CHECK    │
        │  - Measure  │
        │  - Compare  │
        │  - Learn    │
        └─────────────┘

Phase Details

---

Key Metrics Dashboard

Operational Metrics

Process Capability

Problem-Solving Frameworks

Core thinking frameworks developed and used by top consulting firms for structured problem-solving.

MECE (Mutually Exclusive, Collectively Exhaustive)

Origin: Developed at McKinsey by Barbara Minto in the 1960s

Purpose: Break down complex problems into distinct, non-overlapping categories that cover all possibilities.

Principles

1. Mutually Exclusive (ME): Each category is distinct - no overlap 2. Collectively Exhaustive (CE): All categories together cover 100% of the problem

How to Apply MECE

1. Define the problem clearly - What exactly are you trying to break down? 2. Choose a breakdown dimension - By what criteria will you divide? 3. Create categories - List all categories 4. Check for overlap - Does anything belong to multiple categories? If yes, redefine 5. Check for gaps - Is anything missing? If yes, add categories

Common MECE Structures

Example: "Why are sales declining?"

MECE Breakdown by Revenue Formula:

Revenue Decline
├── Volume Decline
│   ├── Fewer customers
│   └── Lower purchase frequency
└── Price/Mix Decline
    ├── Lower prices
    └── Shift to lower-margin products

Common Mistakes

• Not exhaustive: Missing a category (e.g., forgetting "Other")
• Overlapping: Categories that share elements
• Wrong level: Mixing different levels of detail
• Too granular: Breaking down beyond what's useful

---

Pyramid Principle

Origin: Barbara Minto at McKinsey, 1970s

Purpose: Structure communication (presentations, documents, emails) for maximum clarity and impact.

Core Concept: Answer First

Start with the conclusion/recommendation, then provide supporting arguments.

        ┌─────────────────┐
        │   Main Point    │  ← Start here (answer/recommendation)
        │  (1 sentence)   │
        └────────┬────────┘
                 │
    ┌────────────┼────────────┐
    ▼            ▼            ▼
┌───────┐   ┌───────┐   ┌───────┐
│ Key   │   │ Key   │   │ Key   │  ← Supporting arguments (3-5)
│Point 1│   │Point 2│   │Point 3│
└───┬───┘   └───┬───┘   └───┬───┘
    │           │           │
    ▼           ▼           ▼
 Evidence    Evidence    Evidence   ← Data, examples, analysis

The SCQ Framework (Situation-Complication-Question)

Before presenting your pyramid, set up the context:

1. Situation: The current state (facts everyone agrees on) 2. Complication: What changed or what's the problem 3. Question: The key question this raises (implicitly answered by your main point)

Example

Situation: "We launched Product X in Q1 targeting enterprise customers."

Complication: "Sales are 40% below target after 6 months."

Question: "What should we do to meet our annual sales target?"

Main Point: "We should pivot to mid-market customers and reduce the price by 20%."

Supporting Arguments: 1. Enterprise sales cycle is too long (9 months vs. 3 months mid-market) 2. Mid-market has 5x more potential customers 3. Competitors are not focused on mid-market

MECE in the Pyramid

Each level of the pyramid must be MECE:

• Supporting arguments should not overlap
• Together they should fully support the main point

Grouping Logic

Arguments can be grouped by:

• Deductive: If A and B, then C (logical chain)
• Inductive: A, B, C all point to the same conclusion (similar ideas grouped)

---

Issue Tree

Origin: Standard consulting methodology

Purpose: Break down a problem into component issues to identify root causes and prioritize investigation.

Structure

Main Problem
├── Issue 1
│   ├── Sub-issue 1.1
│   │   ├── Hypothesis 1.1.1
│   │   └── Hypothesis 1.1.2
│   └── Sub-issue 1.2
├── Issue 2
│   ├── Sub-issue 2.1
│   └── Sub-issue 2.2
└── Issue 3
    └── Sub-issue 3.1

How to Build an Issue Tree

1. Start with the key question (at the top) 2. Break into major issues (first level - use MECE) 3. Decompose each issue (second level) 4. Continue until actionable (usually 3-4 levels) 5. Form hypotheses at leaf nodes

Example: "How can we increase profitability?"

Increase Profitability
├── Increase Revenue
│   ├── Increase Volume
│   │   ├── Acquire new customers
│   │   ├── Increase purchase frequency
│   │   └── Reduce churn
│   └── Increase Price/Mix
│       ├── Raise prices
│       └── Shift to premium products
└── Reduce Costs
    ├── Reduce Variable Costs
    │   ├── Reduce COGS
    │   └── Reduce sales costs
    └── Reduce Fixed Costs
        ├── Reduce headcount
        └── Reduce facilities cost

Prioritization

After building the tree, prioritize branches by:

• Impact: How much could this improve the outcome?
• Feasibility: How easy is it to address?
• Speed: How quickly can we act?

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Hypothesis-Driven Problem Solving

Origin: Scientific method applied to business consulting

Purpose: Efficiently solve problems by testing hypotheses rather than boiling the ocean with data.

The Approach

1. Form initial hypothesis - What do you believe the answer is? 2. Structure the hypothesis - Break into testable components 3. Prioritize tests - Which tests are most critical? 4. Gather data - Only collect data that tests the hypothesis 5. Analyze and iterate - Confirm, refute, or refine hypothesis

Day 1 Answer

Consultants often create a "Day 1 Answer" - their best hypothesis before any analysis:

"Based on initial information, we believe [hypothesis]. This would require [key assumptions to be true]. We will test this by [analysis plan]."

Hypothesis Tree

Main Hypothesis: "Revenue decline is due to customer churn"
├── Sub-hypothesis 1: "Churn rate has increased significantly"
│   └── Test: Compare churn rates YoY
├── Sub-hypothesis 2: "Churned customers cite product issues"
│   └── Test: Analyze exit surveys
└── Sub-hypothesis 3: "Competitors are winning our customers"
    └── Test: Win/loss analysis

Hypothesis vs. Issue Tree

When to Use Each

• Issue Tree: New problem, no prior knowledge
• Hypothesis Tree: Experience suggests likely cause, need to validate

---

McKinsey 7-Step Problem Solving Process

Origin: McKinsey & Company's core methodology

Purpose: Structured, hypothesis-driven approach to solve any business problem.

The 7 Steps

┌─────────────────────────────────────────────────────────────────┐
│               McKINSEY 7-STEP PROBLEM SOLVING                   │
├─────────────────────────────────────────────────────────────────┤
│                                                                 │
│  1. DEFINE THE PROBLEM                                          │
│     └── What exactly are we trying to solve?                    │
│                     ↓                                           │
│  2. DISAGGREGATE / STRUCTURE                                    │
│     └── Build issue tree (MECE)                                 │
│                     ↓                                           │
│  3. PRIORITIZE ISSUES                                           │
│     └── Focus on high-impact, testable branches                 │
│                     ↓                                           │
│  4. BUILD WORKPLAN & ASSIGN                                     │
│     └── Who does what analysis by when?                         │
│                     ↓                                           │
│  5. CONDUCT ANALYSES                                            │
│     └── Gather data, test hypotheses                            │
│                     ↓                                           │
│  6. SYNTHESIZE FINDINGS                                         │
│     └── So what? Develop recommendations                        │
│                     ↓                                           │
│  7. COMMUNICATE / BUILD BUY-IN                                  │
│     └── Present using Pyramid Principle                         │
│                                                                 │
└─────────────────────────────────────────────────────────────────┘

Step Details

Step 1: Define the Problem

A good problem statement includes:

• Context: Background situation
• Success criteria: What does "solved" look like?
• Scope: What's in and out of bounds
• Constraints: Time, budget, resources
• Stakeholders: Who cares about this?

Problem Statement Template:

"[Client] is facing [problem] which is causing [impact]. We need to determine [key question] by [deadline], considering [constraints]."

Step 2: Disaggregate / Structure

Build an issue tree that is:

• MECE - Mutually exclusive, collectively exhaustive
• Hypothesis-driven - Each branch has a testable hypothesis
• 3-4 levels deep - Enough to be actionable

Step 3: Prioritize Issues

Use a 2x2 matrix:

                    IMPACT
               Low         High
         ┌───────────┬───────────┐
    Easy │   QUICK   │   DO      │
         │   WINS    │   FIRST   │
EFFORT   ├───────────┼───────────┤
    Hard │   DON'T   │ PLAN      │
         │   BOTHER  │ CAREFULLY │
         └───────────┴───────────┘

Apply 80/20 rule: 80% of insights come from 20% of analyses.

Step 4: Build Workplan

For each prioritized issue:

Step 5: Conduct Analyses

• Test hypotheses with data
• Look for "so what?" - what does this mean?
• Iterate - refine hypotheses based on findings

Step 6: Synthesize Findings

Move from "what we found" to "what it means":

Step 7: Communicate

Use the Pyramid Principle: 1. Lead with the answer 2. Support with 3-5 key arguments 3. Back up with data

---

SCQ Framework (Situation-Complication-Question)

Purpose: Set up any communication to create tension and engagement.

The Structure

SITUATION    →    COMPLICATION    →    QUESTION    →    ANSWER
(Stable)          (Unstable)           (Tension)        (Resolution)

Components

SCQ Examples

Strategy Recommendation:

• S: "Our company has been the market leader for 10 years."
• C: "A new competitor entered with 30% lower prices and is growing rapidly."
• Q: "How should we respond to maintain our market position?"
• A: "We should launch a fighter brand targeting price-sensitive segments."

Operational Issue:

• S: "Our customer service team handles 10,000 calls per day."
• C: "Wait times have increased from 2 to 8 minutes, and complaints are up 50%."
• Q: "How can we reduce wait times while controlling costs?"
• A: "Implement a chatbot for simple queries, freeing agents for complex issues."

SCQ Variations

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Storyboarding (Ghostpack / Ghost Deck)

Purpose: Plan the final deliverable before doing the analysis.

What is a Ghostpack?

A "ghost" version of the final presentation:

• Slide titles and key messages written
• Charts sketched with expected patterns
• Sources/analyses identified but not yet done

Why Storyboard First?

1. Efficiency: Know exactly what analyses to run 2. Alignment: Get buy-in on approach before investing time 3. Quality: Story flows logically from start 4. Speed: Parallel work - team knows what to build

Storyboard Template

For each slide:

┌─────────────────────────────────────────────────────────────┐
│ SLIDE TITLE (Action Title - contains the "so what")         │
├─────────────────────────────────────────────────────────────┤
│                                                             │
│    [Sketch of chart/visual]          Key Message:           │
│                                      • Point 1              │
│         📊                           • Point 2              │
│                                      • Point 3              │
│                                                             │
├─────────────────────────────────────────────────────────────┤
│ Data Source:                    Analysis Needed:            │
│ Owner:                          Due:                        │
└─────────────────────────────────────────────────────────────┘

Action Titles

Each slide title should be a complete sentence with the insight:

Storyboard Flow

1. Executive Summary (answer + 3 key points)
        ↓
2. Situation & Context
        ↓
3. Analysis & Findings (grouped by theme, not by analysis type)
        ↓
4. Implications
        ↓
5. Recommendations
        ↓
6. Implementation Roadmap
        ↓
7. Appendix (detailed analyses)

---

Workplan Development

Purpose: Translate problem structure into actionable tasks with clear ownership.

Workplan Components

Workplan Template

┌────────────────────────────────────────────────────────────────────┐
│                         PROJECT WORKPLAN                           │
├──────────────┬─────────────┬────────┬─────┬───────────────────────┤
│ Workstream   │ Activity    │ Owner  │Days │  Week 1  │  Week 2   │
├──────────────┼─────────────┼────────┼─────┼──────────┼───────────┤
│ Market       │ Size market │ Alice  │  3  │ ████     │           │
│ Analysis     │ Segment     │ Alice  │  2  │     ██  │           │
│              │ Trends      │ Bob    │  3  │ ███      │           │
├──────────────┼─────────────┼────────┼─────┼──────────┼───────────┤
│ Competitive  │ Map players │ Carol  │  2  │ ██       │           │
│ Analysis     │ Benchmark   │ Carol  │  4  │   ████   │           │
├──────────────┼─────────────┼────────┼─────┼──────────┼───────────┤
│ Internal     │ Financials  │ Dave   │  3  │ ███      │           │
│ Assessment   │ Operations  │ Dave   │  3  │    ███   │           │
├──────────────┼─────────────┼────────┼─────┼──────────┼───────────┤
│ Synthesis    │ Integrate   │ Lead   │  3  │          │ ███       │
│              │ Present     │ Lead   │  2  │          │    ██     │
└──────────────┴─────────────┴────────┴─────┴──────────┴───────────┘

One-Page Analysis Template

For each analysis:

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80/20 Rule (Pareto Principle in Consulting)

Purpose: Focus effort on the vital few factors that drive most of the impact.

Application in Problem Solving

How to Apply

1. Don't boil the ocean - Focus on most impactful analyses 2. Hypothesis-driven - Test likely causes first 3. Perfect is enemy of good - 80% right today beats 100% right never 4. Iterate - Start rough, refine as needed

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Combining Frameworks: The Complete Consulting Flow

1. RECEIVE PROBLEM
   └── Clarify scope and success criteria
              ↓
2. CREATE DAY-1 ANSWER
   └── Initial hypothesis based on experience
              ↓
3. DEFINE PROBLEM (SCQ)
   └── Situation, Complication, Question
              ↓
4. STRUCTURE (MECE + Issue Tree)
   └── Break into testable components
              ↓
5. PRIORITIZE (80/20)
   └── Focus on high-impact branches
              ↓
6. BUILD WORKPLAN
   └── Who, what, when, how
              ↓
7. STORYBOARD (Ghostpack)
   └── Design the end deliverable
              ↓
8. CONDUCT ANALYSES
   └── Test hypotheses with data
              ↓
9. SYNTHESIZE ("So What?")
   └── Extract insights and implications
              ↓
10. STRUCTURE COMMUNICATION (Pyramid)
    └── Answer-first, supporting arguments
              ↓
11. BUILD BUY-IN
    └── Align stakeholders, refine recommendations
              ↓
12. PRESENT & DELIVER
    └── Communicate, get approval, implement

Project & Change Management Frameworks

Frameworks for planning projects, defining roles, and driving organizational change.

Work Breakdown Structure (WBS)

Purpose: Decompose a project into manageable components for planning and tracking.

Structure

Project Goal
├── Phase 1 / Deliverable 1
│   ├── Work Package 1.1
│   │   ├── Task 1.1.1
│   │   └── Task 1.1.2
│   └── Work Package 1.2
├── Phase 2 / Deliverable 2
│   ├── Work Package 2.1
│   └── Work Package 2.2
└── Phase 3 / Deliverable 3

WBS Principles

1. 100% Rule: WBS must include 100% of the work - nothing more, nothing less 2. Mutually Exclusive: No overlap between elements at the same level 3. Outcome-Focused: Define deliverables, not activities 4. Appropriate Depth: Decompose until work packages are estimable (8-80 hour rule)

How to Create a WBS

1. Start with the end goal - What is the final deliverable? 2. Identify major phases or deliverables - What are the main components? 3. Decompose each phase - Break into smaller deliverables 4. Continue decomposing - Until work packages are manageable 5. Assign IDs - Create a numbering scheme (1.0, 1.1, 1.1.1) 6. Validate - Check against 100% rule

WBS Dictionary Entry

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RACI Matrix

Purpose: Define roles and responsibilities for each task or decision.

The RACI Roles

RACI Matrix Template

RACI Best Practices

1. One A per row - Only one person can be accountable 2. Limit C's - Too many consulted slows decisions 3. A can also be R - Accountable person can also do the work 4. Validate with stakeholders - Everyone should agree on their role 5. Review regularly - Update as project evolves

Common RACI Problems

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Kotter's 8-Step Change Model

Origin: John Kotter, Harvard Business School, 1996

Purpose: Lead organizational change effectively.

The 8 Steps

┌─────────────────────────────────────────────────────────────────┐
│                  KOTTER'S 8-STEP MODEL                          │
├─────────────────────────────────────────────────────────────────┤
│                                                                 │
│  CREATING THE CLIMATE FOR CHANGE                                │
│  ┌─────────────────────────────────────────────────────────┐   │
│  │ 1. Create Urgency                                        │   │
│  │    - Help others see the need for change                 │   │
│  ├─────────────────────────────────────────────────────────┤   │
│  │ 2. Build a Guiding Coalition                             │   │
│  │    - Assemble a group with power to lead change          │   │
│  ├─────────────────────────────────────────────────────────┤   │
│  │ 3. Form a Strategic Vision                               │   │
│  │    - Create a vision to direct the change effort         │   │
│  └─────────────────────────────────────────────────────────┘   │
│                                                                 │
│  ENGAGING & ENABLING THE ORGANIZATION                           │
│  ┌─────────────────────────────────────────────────────────┐   │
│  │ 4. Enlist a Volunteer Army                               │   │
│  │    - Communicate vision to get buy-in                    │   │
│  ├─────────────────────────────────────────────────────────┤   │
│  │ 5. Enable Action by Removing Barriers                    │   │
│  │    - Remove obstacles, change systems that undermine     │   │
│  ├─────────────────────────────────────────────────────────┤   │
│  │ 6. Generate Short-Term Wins                              │   │
│  │    - Create visible improvements, recognize contributors │   │
│  └─────────────────────────────────────────────────────────┘   │
│                                                                 │
│  IMPLEMENTING & SUSTAINING THE CHANGE                           │
│  ┌─────────────────────────────────────────────────────────┐   │
│  │ 7. Sustain Acceleration                                  │   │
│  │    - Use wins to drive more change, don't let up         │   │
│  ├─────────────────────────────────────────────────────────┤   │
│  │ 8. Institute Change                                      │   │
│  │    - Anchor new approaches in the culture                │   │
│  └─────────────────────────────────────────────────────────┘   │
│                                                                 │
└─────────────────────────────────────────────────────────────────┘

Step Details

Step 1: Create Urgency

• Identify potential threats and opportunities
• Develop scenarios of the future
• Start honest discussions about what's happening

Key Question: Why must we change NOW?

Step 2: Build a Guiding Coalition

• Identify true leaders (not just managers)
• Build a diverse, credible team
• Ensure commitment to work as a team

Key Question: Who has the power and influence to lead this?

Step 3: Form a Strategic Vision

• Determine values central to the change
• Create a short summary (1-2 sentences)
• Develop a strategy to execute the vision

Key Question: What will the future look like?

Step 4: Enlist a Volunteer Army

• Communicate the vision constantly
• Address concerns and anxieties
• Lead by example

Key Question: How do we get widespread buy-in?

Step 5: Enable Action by Removing Barriers

• Identify obstacles to change
• Remove or change systems that undermine the vision
• Recognize and reward people making change happen

Key Question: What's stopping people from acting?

Step 6: Generate Short-Term Wins

• Plan for visible performance improvements
• Create those wins
• Recognize and reward contributors

Key Question: How do we prove this is working?

Step 7: Sustain Acceleration

• Analyze what went right and wrong
• Set goals to build on momentum
• Keep ideas fresh with new change agents

Key Question: How do we keep momentum?

Step 8: Institute Change

• Articulate connections between new behaviors and success
• Develop means to ensure leadership development
• Create succession plans

Key Question: How do we make this stick?

---

ADKAR Model

Origin: Prosci, 1990s

Purpose: Individual change management - focus on helping each person through change.

The ADKAR Elements

A ──► D ──► K ──► A ──► R
│     │     │     │     │
▼     ▼     ▼     ▼     ▼
Awareness  Desire  Knowledge  Ability  Reinforcement

ADKAR Assessment

For each element, rate 1-5:

Barrier Point: The first element scoring ≤3 is where to focus effort.

ADKAR vs Kotter

---

Risk Matrix

Purpose: Assess and prioritize risks based on probability and impact.

The Matrix

                          IMPACT
              Low       Medium      High      Critical
         ┌─────────┬─────────┬─────────┬─────────┐
High     │  MEDIUM │   HIGH  │CRITICAL │CRITICAL │
         │    3    │    6    │    9    │   12    │
         ├─────────┼─────────┼─────────┼─────────┤
P  Med   │   LOW   │  MEDIUM │   HIGH  │CRITICAL │
R        │    2    │    4    │    6    │    8    │
O        ├─────────┼─────────┼─────────┼─────────┤
B  Low   │   LOW   │   LOW   │  MEDIUM │   HIGH  │
         │    1    │    2    │    3    │    4    │
         └─────────┴─────────┴─────────┴─────────┘

Risk Register

Risk Response Strategies

---

Stakeholder Analysis

Purpose: Identify and understand stakeholders to manage engagement.

Stakeholder Matrix

                         INTEREST
                    Low           High
              ┌─────────────┬─────────────┐
         High │   KEEP      │   MANAGE    │
              │ SATISFIED   │   CLOSELY   │
   POWER      │             │             │
              ├─────────────┼─────────────┤
         Low  │   MONITOR   │    KEEP     │
              │  (Minimal   │  INFORMED   │
              │   effort)   │             │
              └─────────────┴─────────────┘

Stakeholder Register

Engagement Strategies

---

Balanced Scorecard

Origin: Robert Kaplan & David Norton, 1992

Purpose: Translate strategy into measurable objectives across four perspectives.

The Four Perspectives

┌─────────────────────────────────────────────────────────────────┐
│                      BALANCED SCORECARD                         │
├─────────────────────────────────────────────────────────────────┤
│                                                                 │
│                    ┌─────────────────────┐                      │
│                    │     FINANCIAL       │                      │
│                    │  "How do we look    │                      │
│                    │  to shareholders?"  │                      │
│                    └──────────┬──────────┘                      │
│                               │                                 │
│      ┌───────────────────────┼───────────────────────┐         │
│      │                       │                       │         │
│      ▼                       ▼                       ▼         │
│ ┌──────────┐         ┌─────────────┐         ┌──────────┐      │
│ │ CUSTOMER │         │   VISION    │         │ INTERNAL │      │
│ │          │◄────────│     &       │────────►│ PROCESS  │      │
│ │"How do   │         │  STRATEGY   │         │          │      │
│ │customers │         │  (Center)   │         │"What must│      │
│ │see us?"  │         └─────────────┘         │we excel  │      │
│ └──────────┘                 │               │at?"      │      │
│                              │               └──────────┘      │
│                              ▼                                  │
│                    ┌─────────────────────┐                      │
│                    │ LEARNING & GROWTH   │                      │
│                    │ "How can we continue│                      │
│                    │ to improve?"        │                      │
│                    └─────────────────────┘                      │
│                                                                 │
└─────────────────────────────────────────────────────────────────┘

Perspective Details

Balanced Scorecard Template

Strategy Map

A visual representation of cause-and-effect relationships:

FINANCIAL        Increase Shareholder Value
                         ↑
                 ┌───────┴───────┐
                 │               │
           Revenue Growth   Productivity
                 ↑               ↑
                 │               │
CUSTOMER    Customer        Customer
            Acquisition     Retention
                 ↑               ↑
                 │               │
INTERNAL    New Product     Operational
            Development     Excellence
                 ↑               ↑
                 │               │
LEARNING    R&D            Process
            Capabilities    Improvement Skills

Implementation Steps

1. Clarify strategy - What are we trying to achieve? 2. Identify objectives - 3-5 per perspective 3. Select measures - Lead and lag indicators 4. Set targets - Ambitious but achievable 5. Define initiatives - Projects to achieve targets 6. Cascade - Deploy to departments/individuals 7. Review & adapt - Regular performance reviews

---

OKRs (Objectives and Key Results)

Origin: Andy Grove at Intel, popularized by John Doerr at Google

Purpose: Set and track ambitious goals with measurable outcomes.

OKR Structure

OBJECTIVE: What do we want to achieve? (Qualitative, inspiring)
│
├── KEY RESULT 1: How do we measure success? (Quantitative)
├── KEY RESULT 2: How do we measure success? (Quantitative)
└── KEY RESULT 3: How do we measure success? (Quantitative)

Characteristics

OKR Examples

Company Level:

Objective: Become the market leader in customer satisfaction

KR1: Increase NPS from 40 to 60
KR2: Reduce customer complaint resolution time from 48h to 12h
KR3: Achieve 95% customer retention rate

Team Level:

Objective: Launch a world-class mobile app

KR1: Achieve 4.5+ star rating in app stores
KR2: Reach 100,000 monthly active users
KR3: Achieve <2 second load time on all screens

Individual Level:

Objective: Become an expert in data analytics

KR1: Complete advanced SQL certification
KR2: Build 5 self-service dashboards for the team
KR3: Train 10 colleagues on basic data analysis

OKR Best Practices

OKR Cadence

OKR Scoring

OKRs vs KPIs vs Balanced Scorecard

---

McKinsey Horizon Model

Origin: McKinsey & Company

Purpose: Balance short-term performance with long-term growth.

The Three Horizons

PROFIT/
GROWTH
   │
   │                                          ╱
   │                                        ╱  Horizon 3
   │                                      ╱    (Create viable options)
   │                               ╱────╱
   │                         ╱────╱
   │                   ╱────╱         Horizon 2
   │             ╱────╱               (Build emerging businesses)
   │       ╱────╱
   │ ╱────╱            Horizon 1
   │╱                  (Extend core business)
   └──────────────────────────────────────────── TIME
        Now      Near-term    Medium    Long-term

Horizon Details

Portfolio Allocation

Typical resource allocation:

• Horizon 1: 70% of resources
• Horizon 2: 20% of resources
• Horizon 3: 10% of resources

Application

Business Model Canvas Template

Canvas Information

---

Business Model Canvas

┌─────────────────────────────────────────────────────────────────────────────┐
│                          BUSINESS MODEL CANVAS                               │
├──────────────┬──────────────┬──────────────┬──────────────┬────────────────┤
│              │              │              │              │                │
│    KEY       │    KEY       │    VALUE     │  CUSTOMER    │   CUSTOMER     │
│  PARTNERS    │  ACTIVITIES  │ PROPOSITIONS │ RELATIONSHIPS│   SEGMENTS     │
│              │              │              │              │                │
│              │              │              │              │                │
│              │              │              │              │                │
│              │              │              │              │                │
│              │              │              │              │                │
│              ├──────────────┤              ├──────────────┤                │
│              │              │              │              │                │
│              │    KEY       │              │   CHANNELS   │                │
│              │  RESOURCES   │              │              │                │
│              │              │              │              │                │
│              │              │              │              │                │
│              │              │              │              │                │
│              │              │              │              │                │
├──────────────┴──────────────┴──────────────┴──────────────┴────────────────┤
│                                                                             │
│           COST STRUCTURE                    REVENUE STREAMS                 │
│                                                                             │
│                                                                             │
│                                                                             │
└─────────────────────────────────────────────────────────────────────────────┘

---

1. Customer Segments

Who are we creating value for? Who are our most important customers?

Primary Segments

Segment Details

Segment 1: [Name]

• Demographics:
• Needs:
• Behaviors:
• Pain points:

Segment 2: [Name]

• Demographics:
• Needs:
• Behaviors:
• Pain points:

---

2. Value Propositions

What value do we deliver to the customer? Which customer needs are we satisfying?

Value Proposition per Segment

Value Elements

---

3. Channels

How do we reach our customer segments? How are we reaching them now?

Channel Phases

---

4. Customer Relationships

What type of relationship does each segment expect?

---

5. Revenue Streams

For what value are customers willing to pay? How much does each revenue stream contribute?

Revenue Model

Revenue Details

Total Annual Revenue Target: ¥___________

---

6. Key Resources

What key resources does our value proposition require?

---

7. Key Activities

What key activities does our value proposition require?

---

8. Key Partnerships

Who are our key partners and suppliers?

Partnership Motivations

• [ ] Optimization and economy of scale
• [ ] Reduction of risk and uncertainty
• [ ] Acquisition of particular resources and activities

---

9. Cost Structure

What are the most important costs inherent in our business model?

Cost Characteristics

• [ ] Cost-driven (focus on minimizing costs)
• [ ] Value-driven (focus on value creation)

Cost Breakdown

Total Annual Costs: ¥___________

Key Cost Drivers

1. [Cost driver 1] 2. [Cost driver 2] 3. [Cost driver 3]

---

Financial Summary

---

Assumptions & Risks

Key Assumptions

1. [Assumption 1] 2. [Assumption 2] 3. [Assumption 3]

Key Risks

---

Next Steps

1. [ ] [Action item 1] 2. [ ] [Action item 2] 3. [ ] [Action item 3]

Business Case Template

Document Information

---

1. Executive Summary

Investment Required: $XXX

Expected Benefits: [One-line summary]

Payback Period: X years

Recommendation: [Approve / Reject / Further Analysis]

[2-3 sentence summary of the proposal and recommendation]

---

2. Problem / Opportunity Statement

Current Situation

[Describe the current state and context]

Problem or Opportunity

[What specific problem are we solving or opportunity are we pursuing?]

Impact of Inaction

[What happens if we don't act?]

---

3. Options Analysis

Options Considered

Options Comparison

Recommendation

[Explain why the recommended option is best]

---

4. Financial Analysis

Cost Summary

Benefit Summary

Financial Metrics

Assumptions

1. [Key assumption 1] 2. [Key assumption 2] 3. [Key assumption 3]

---

5. Qualitative Benefits

---

6. Risk Assessment

---

7. Implementation Plan

Key Milestones

Resource Requirements

Dependencies

1. [Dependency 1] 2. [Dependency 2] 3. [Dependency 3]

---

8. Governance

Decision Authority

Reporting

---

9. Recommendation

Recommendation: [Approve / Reject / Further Analysis Needed]

Rationale: [Clear explanation of why this recommendation is being made, referencing key financial and qualitative factors]

Next Steps if Approved: 1. [Next step 1] 2. [Next step 2] 3. [Next step 3]

---

Appendix

A. Detailed Financial Model

[Reference to detailed spreadsheet]

B. Technical Requirements

[Reference to technical documentation]

C. Vendor Proposals

[Reference to vendor documentation]

---

Approvals

Project Charter Template

Document Control

---

1. Project Overview

1.1 Project Purpose

[Why is this project being undertaken? What problem does it solve?]

1.2 Project Description

[Brief description of what the project will deliver]

1.3 Business Case Summary

[Key points from the business case justifying this project]

---

2. Objectives and Success Criteria

2.1 Project Objectives

2.2 Success Criteria

---

3. Scope

3.1 In Scope

3.2 Out of Scope

3.3 Key Deliverables

---

4. Timeline

4.1 Key Milestones

4.2 High-Level Schedule

Phase 1: [Name]     |████████████|
Phase 2: [Name]              |████████████|
Phase 3: [Name]                       |████████████|
                    M1    M2    M3    M4    M5    M6

---

5. Budget

5.1 Budget Summary

5.2 Funding Source

[Where is the budget coming from?]

---

6. Organization

6.1 Project Team

6.2 Governance Structure

                    ┌─────────────────┐
                    │ Steering        │
                    │ Committee       │
                    └────────┬────────┘
                             │
                    ┌────────┴────────┐
                    │ Project Sponsor │
                    └────────┬────────┘
                             │
                    ┌────────┴────────┐
                    │ Project Manager │
                    └────────┬────────┘
                             │
          ┌──────────────────┼──────────────────┐
          │                  │                  │
    ┌─────┴─────┐     ┌──────┴─────┐     ┌─────┴─────┐
    │ Workstream│     │ Workstream │     │ Workstream│
    │     1     │     │     2      │     │     3     │
    └───────────┘     └────────────┘     └───────────┘

6.3 Stakeholders

---

7. Risks and Constraints

7.1 Key Risks

7.2 Constraints

7.3 Assumptions

7.4 Dependencies

---

8. Communication Plan

---

9. Approval

By signing below, the signatories approve this Project Charter and authorize the project to proceed.

---

Revision History

RACI Matrix Template

Project Information

---

RACI Legend

---

Team Members

---

RACI Matrix

Phase 1: [Phase Name]

Phase 2: [Phase Name]

Phase 3: [Phase Name]

---

Key Decisions

---

Validation Checklist

Use this checklist to validate the RACI matrix:

• [ ] Each row has exactly ONE "A" (Accountable)
• [ ] Each row has at least one "R" (Responsible)
• [ ] No person has too many "A"s (overloaded)
• [ ] No person has too many "R"s (overloaded)
• [ ] Key stakeholders are included as C or I
• [ ] No gaps in critical tasks
• [ ] All team members reviewed and agreed

---

Notes

Role Clarifications

[Add any specific clarifications about roles or responsibilities]

Escalation Path

---

Change Log

SWOT Analysis Template

Analysis Information

---

Executive Summary

[2-3 sentences summarizing the key findings and strategic implications]

---

SWOT Matrix

Internal Factors

Strengths

What do we do well? What unique resources do we have?

Weaknesses

What could we improve? Where do we have fewer resources than others?

External Factors

Opportunities

What trends could we take advantage of? What opportunities are open to us?

Threats

What threats could harm us? What is our competition doing?

---

SWOT Visual Matrix

                    HELPFUL                     HARMFUL
                 (to objective)             (to objective)
              ┌───────────────────┬───────────────────┐
              │                   │                   │
   INTERNAL   │    STRENGTHS      │    WEAKNESSES     │
   (origin)   │                   │                   │
              │ • S1              │ • W1              │
              │ • S2              │ • W2              │
              │ • S3              │ • W3              │
              │                   │                   │
              ├───────────────────┼───────────────────┤
              │                   │                   │
   EXTERNAL   │   OPPORTUNITIES   │      THREATS      │
   (origin)   │                   │                   │
              │ • O1              │ • T1              │
              │ • O2              │ • T2              │
              │ • O3              │ • T3              │
              │                   │                   │
              └───────────────────┴───────────────────┘

---

TOWS Strategic Analysis

SO Strategies (Strengths + Opportunities)

How can we use our strengths to take advantage of opportunities?

WO Strategies (Weaknesses + Opportunities)

How can we overcome weaknesses by pursuing opportunities?

ST Strategies (Strengths + Threats)

How can we use our strengths to avoid threats?

WT Strategies (Weaknesses + Threats)

How can we minimize weaknesses and avoid threats?

---

Prioritized Action Plan

---

Key Insights

Critical Success Factors

1. [CSF 1] 2. [CSF 2] 3. [CSF 3]

Key Risks to Monitor

1. [Risk 1] 2. [Risk 2] 3. [Risk 3]

Recommended Next Steps

1. [Next step 1] 2. [Next step 2] 3. [Next step 3]

---

Appendix

Data Sources

• [Source 1]
• [Source 2]
• [Source 3]

Assumptions

• [Assumption 1]
• [Assumption 2]

Limitations

• [Limitation 1]
• [Limitation 2]