Structured problem solving with a Critical Thinking Framework

Managers are solving problems and making decisions through the day. These are the toughest and riskiest part of any managers job. A good decision or effective solution to a problem moves the company forward while a bad one can be disastrous. While decisions and solutions cannot be judged by their outcomes, good decisions and effective solutions are often the result of a good decision making and problem solving process rather than any individuals creativity or intelligence.

What’s lacking in todays problem solving and decision making processes is a holistic approach. A problem presents itself, we get solution ideas, do some basic evaluation and go ahead and finalize a solution. The same goes for many decisions as well. What we don’t do is to consider all the dimensions that go into making a good decision or developing a solution. We are also inconsistent in the dimensions we evaluate in problem solving and decision making. For some decisions we may consider implications and for others completely ignore any deliberation.

So what can we do to bring in a holistic approach to problem solving and decision making ? We first define what are the dimensions that go into making good decisions and develop a framework. We then use this framework when evaluating decisions or solutions. We have a framework which we find adapts itself very well to a holistic approach, and we call this the ‘critical thinking framework’

Our Critical thinking framework consists of seven dimensions:

Define the problem
Gather the evidence
Analyze the evidence
Develop alternative solutions, freeze on one
Explicitly articulate the assumptions made
Explicitly articulate the implactions of the decision or solution
Outline from whose point of view the solution or decision has been finalized (In organizations there are different stakeholders: Managers, Reportees, Shareholders, customers. Stakeholder views on decisions and solutions may also vary between functional areas. For example the Sales Manager is very happy with price discounting as a strategy to drive sales but the Marketing manager is not happy to do so.

So here’s a diagrammatic representation of the Critical thinking framework

critical thinking framework

The steps are not sequential

While you have numbering for each element of the framework, the steps need not be followed in any sequential order, and we are likely to flip back and forth across different elements as we go about addressing the issue on hand. What is important about the framework is that we ensure we have addressed each of the elements in the framework.

Define the problem:

In the problem definition step of the critical thinking framework, there are several variables that must be considered, including the possibility of starting with only the symptoms of a problem, the scope of the problem, and framing bias.

Firstly, it is important to note that sometimes a problem may initially be identified by its symptoms, rather than its root cause. In such cases, the problem definition may evolve as more information is gathered and analyzed. Therefore, it is essential to remain open-minded and flexible when defining the problem, recognizing that the initial definition may change as more information becomes available.

Next, it is important to consider the scope of the problem, which involves determining the boundaries of the problem and the extent to which it affects different stakeholders. This requires an understanding of who is impacted by the problem and how. Defining the scope of the problem helps to ensure that the subsequent steps of the critical thinking process are focused and relevant.

Finally, framing bias should also be considered when defining the problem. Framing bias refers to the tendency to view a problem from a particular perspective, which may influence the definition of the problem and the subsequent analysis. To avoid framing bias, it is important to consider different perspectives and engage in open-minded thinking.

Overall, the problem definition step involves a process of refining the problem statement by considering new information and perspectives. It is important to define the problem in a specific, measurable, and objective way while also considering the scope and framing bias. By doing so, the subsequent steps of the critical thinking framework can be more effective in solving the problem or making a decision.

Gather the evidence:

When gathering evidence, it is important to approach the process with an open mind and not be biased towards a particular hypothesis or solution. All possible and plausible causes of the problem should be considered so that the evidence gathered is not limited to only confirming the initial hypothesis.

If the problem is related to a decision, it is important to consider all possible decision options and gather evidence that is relevant to each of those options. This will help in evaluating each option objectively and making an informed decision.

Evidence for Analysis : You may just gather data and perform simple inferences, or you If you want to use some analytical frameworks or statistical analysis. Sometimes you may know how you will analyze the data upfront, and sometimes you may form an idea later. To that extent evidence gathering also could be an iterative step between analysis and evidence gathering.

Additionally, it is important to be aware of the possibility of missing out on some causal hypotheses, and therefore, important evidence, during the evidence gathering process. This could be due to various reasons such as a lack of awareness or bias towards certain hypotheses. Therefore, it is important to approach the evidence gathering process with an open mind and consider all possible causal hypotheses to ensure that all necessary evidence is collected.

In terms of sources of evidence, it is important to consider both primary and secondary sources. Primary sources include data and information collected directly from individuals or entities related to the problem, such as surveys or interviews. Secondary sources include data and information that has already been collected by other researchers or organizations, such as research studies or historical data. It is important to ensure that the evidence gathered is reliable, valid, and sufficient to support the subsequent analysis, regardless of whether it is a primary or secondary source.

Overall, the evidence gathering step is crucial in providing the necessary information to support the subsequent analysis and decision-making process. It is important to approach this step with an open mind, consider all possible causes and decision options, and ensure that the evidence gathered is reliable, valid, and sufficient.

Analyze the evidence:

During the analysis stage of problem-solving, the evidence collected in the previous step is examined and evaluated to gain a deeper understanding of the problem and its root causes. This involves applying critical thinking skills to interpret and make sense of the data, looking for patterns, identifying relationships between variables, and evaluating the strength of the evidence.

The analysis should be rigorous and systematic to ensure that all relevant data is considered, and that any biases or assumptions are identified and addressed. Depending on the nature of the problem and the data collected, different analytical techniques may be used, such as statistical analysis, trend analysis, or cause-and-effect analysis. The goal of the analysis stage is to identify the underlying causes of the problem and to gain insights that will inform the development of effective solutions.

The outcomes of the analysis stage will depend on the problem being solved, the data collected, and the analytical techniques used. Some possible outcomes of the analysis stage include:

Identification of root causes: The analysis may reveal the underlying factors that are contributing to the problem, allowing for targeted solutions that address the root cause rather than just the symptoms.

Insights and recommendations: The analysis may provide insights into the problem and its causes, which can inform the development of recommendations or solutions.

Identification of gaps in knowledge: The analysis may reveal areas where additional data or information is needed to fully understand the problem.

Refinement of problem definition: The analysis may reveal that the original problem definition was incomplete or inaccurate, and may lead to a refinement of the problem statement.

Validation of assumptions: The analysis may confirm or challenge assumptions that were made during the problem-solving process, allowing for a more accurate understanding of the problem and its causes.

Overall, the analysis stage is critical for identifying the underlying causes of the problem and informing the development of effective solutions.

Using analytical frameworks in the analytical stage:

In the analytical stage we can use any number of general analysis frameworks. The evidence we have gathered become the input data for these frameworks. Also if we intend to use these framework, we should ensure that we collect the necessary data. Here are some indicative frameworks that may be used in business problems:

SWOT analysis: a strategic planning tool used to identify and evaluate strengths, weaknesses, opportunities, and threats in a business or organization.

PESTEL analysis: a framework used to analyze and monitor external macro-environmental factors that impact a business or organization, including political, economic, social, technological, environmental, and legal factors.

Porter's Five Forces: a framework used to analyze the competitive intensity and attractiveness of an industry, including the bargaining power of suppliers and buyers, the threat of new entrants and substitutes, and the intensity of rivalry among existing competitors.

Root Cause Analysis: a structured approach to identifying the underlying causes of a problem or incident, which helps in identifying appropriate solutions and preventing recurrence of the problem.

Cost-benefit analysis: a framework used to evaluate the costs and benefits of different alternatives or decisions, which helps in selecting the most economically efficient solution.

Decision Tree Analysis: a graphical representation of the different alternatives and potential outcomes of a decision, which helps in selecting the optimal solution based on expected value and probabilities.

These are just a few examples of analytical frameworks that can be used depending on the nature of the problem or decision at hand

Solution

After conducting the analysis, the next step is to develop alternative solutions and choose the best one. This involves using the insights gained from the analysis to generate different options for solving the problem. It's important to consider a range of solutions and not limit oneself to a single option.

Once a range of solutions has been identified, each option should be evaluated for its potential effectiveness, feasibility, and practicality. This involves weighing the pros and cons of each solution and assessing its potential impact on the problem at hand.

After evaluating each solution, one should then freeze on the most appropriate one. The decision should be based on a balance of available evidence, practical considerations, and an understanding of the assumptions, implications, and points of view that underpin each option.

It's worth noting that the process of finding a solution is rarely straightforward, and it's not uncommon to go back and forth between the analysis and solution stages multiple times as one refines their understanding of the problem and the available options for solving it.

Assumptions: Explicitly articulate the assumptions made

When making a decision or formulating a solution, it is common to make certain assumptions about the situation. These assumptions can relate to data that is not currently available but could become available later, the future, or other factors that could affect the outcome of the decision or solution. It is important to explicitly articulate these assumptions for several reasons.

It helps to clarify and validate the reasoning behind the solution. By explicitly stating the assumptions, decision makers can evaluate their validity and determine if they are reasonable and justifiable.

It facilitates communication and understanding among stakeholders. By clearly stating the assumptions, decision makers can ensure that all stakeholders have a common understanding of the solution and the reasoning behind it.

It enables decision makers to anticipate and prepare for potential challenges and risks. By identifying and articulating the assumptions, decision makers can be aware of the potential limitations and risks of the solution and be prepared to address them.

It supports ongoing evaluation and improvement of the solution. By explicitly stating the assumptions, decision makers can continue to evaluate and refine the solution as new information becomes available or as the situation changes.

We may make assumptions about data that is not currently available to us. By stating these assumptions, we can be aware of the potential limitations of our decision or solution and take steps to mitigate these limitations. Additionally, some assumptions may be critical to the success of the solution. In this case, decision-makers may want to conduct additional research to verify these assumptions and reduce the need for guesswork.

By explicitly stating our assumptions, we can be alert to any developments that may contradict them. This allows us to react quickly and adjust our approach if necessary. For example, if an assumption about the market changes, we may need to re-evaluate our strategy.

Decision-makers and other stakeholders may be able to validate data and remove the need for assumptions because of prior experience or knowledge. However, they can only do this if they are aware of the assumptions being made. By explicitly articulating assumptions, we can leverage the expertise of those around us to improve the quality of our decision-making.

The other benefits of explicitly articulating assumptions are:

Implications: Explicitly articulate the implications of the solution:

Considering the implications of our solution is critical to ensuring that we make an informed decision that takes into account all the potential consequences. Every solution has both positive and negative implications, and it is important to consider both to make an effective decision.

Explicitly articulating the implications helps decision-makers understand the potential consequences of the solution. It also allows them to assess whether the implications are acceptable or not. If the implications are not acceptable, decision-makers may decide to choose a different solution that has fewer negative consequences.

Moreover, by considering and explicitly articulating the implications of our solution, we can proactively identify potential negative effects and develop strategies to mitigate or minimize them. This can help us avoid or minimize any negative impacts on stakeholders, reduce risks and uncertainty, and ensure that the solution aligns with the organization's goals and values.

Overall, considering and explicitly articulating the implications of our solution helps us make a more informed decision that takes into account both the positive and negative consequences. It also enables us to proactively prepare for any negative effects and minimize their impact, ultimately leading to a more effective and sustainable solution

Point of view: Considering the points of view of stakeholders

It is important to consider the points of view of all stakeholders because every decision or solution can have both positive and negative impacts on different individuals or groups. By taking into account the perspectives of all stakeholders, decision-makers can ensure that the solution is fair, ethical, and sustainable in the long run.

Moreover during the process of explicitly considering the points of view of stakeholders, the problem solver may realize that a particular stakeholder's view may be negative and not acceptable to the organization. This may prompt the problem solver to look for another solution that takes into account the needs and concerns of all stakeholders.

For example, let's consider a company that is considering outsourcing some of its operations to a low-cost country to save costs. From the perspective of the company, this decision may seem like a no-brainer as it would result in significant cost savings. However, this decision would also have implications for various stakeholders such as employees, customers, and the local community.

From the employees' perspective, outsourcing may lead to job losses and decreased job security. From the customers' perspective, the quality of products or services may decline due to cultural or language barriers. From the local community's perspective, outsourcing may lead to a decline in the local economy due to job losses and reduced business activity.

Therefore, it is important for the company to consider the viewpoints of all stakeholders before making a decision on outsourcing. This would involve conducting a thorough analysis of the costs and benefits of outsourcing, including its impact on employees, customers, and the local community. By doing so, the company can ensure that its decision is fair and sustainable in the long run.