how to solve business problems
TRANSCRIPT
4 STEPS TO BUSINESS
PROBLEM SOLVING
A SI M
P L I FI E
D AP P R O A C H U
S I NG L
E A N ,
A G I LE , A
N D OP E R AT I O
N A L EXC E L L E N C E
P R I NC I P
L E S
BY: A R M I N
CR U Z
D AT E : J U
N E 13 , 2
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4 STEPS TO BUSINESS PROBLEM SOLVING• As one considers a strategy to solve business problems one
is inundated with a plethora of methodologies and strategies. Often times I am asked which is better? Is it LEAN, is it Six Sigma, is it AGILE, is it Operational Excellence or BPM or something else entirely? This presentation aims to simplify the approach and present a unified 4 step process to solve technology / people / or process issues plaguing a business unit.
• Please note, this is the first in a series, and is the high level construction of an approach. It is not intended to provide the low level detail needed to solve the issue, but rather ask one to re-examine the method in which one approaches business problems. In short, this is a framework not a detail design.
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4 STEPS TO BUSINESS PROBLEM SOLVINGFirst, Define the environmentArguably, the second most important step is to have a clear and concise picture of the world around you as it applies to the problem. Are you trying to reconcile a regulatory or compliance issue, is it also related to revenue or expense management? Does this have an impact to operational or credit risk? These are questions that must be answered up front, before any additional action is taken.
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4 STEPS TO BUSINESS PROBLEM SOLVINGItems to consider:What is the problem statement?
Should be able to convey this issue in no more than 3 sentences.
What is the business case for change? Need a compelling reason to detract assets and resources
from other projects to solve this issue.What is the scope of the issue/problem?What will your measurement of success look like?
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4 STEPS TO BUSINESS PROBLEM SOLVINGSecond, Determine your objectiveNow that you have identified the issue causing your business pain, you may determine what a future and target state environment should look and feel like. Consider the business case from the previous slide and incorporate that to your business level team to define what you are targeting the change to accomplish.
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4 STEPS TO BUSINESS PROBLEM SOLVING
Items to consider:When defining what the goal and objective should be consider the 3 D’s. Most problems are going to fall under one of the following categories, if not all. What can you bring as an agent of change as it relates to:Dollars – Cost Savings and/or Revenue Generation
Days – Time to market and / or Cycle TimeDefects – Getting it right the first time . . .EVERYTIME!
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4 STEPS TO BUSINESS PROBLEM SOLVINGThird, create your avenues of
approachThere is an old saying “One is none, and Two is One” when it comes to planning. I am a firm believer that one should always, regardless of circumstance, have a back-up plan. Consider creating at least two, but preferably three avenues of approach to meet your definitions of success.
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4 STEPS TO BUSINESS PROBLEM SOLVING
Item to consider Just because you have three plans, does not mean all should be published. This can cause confusion. Rather have them documented and ready in the event something goes wrong and your Plan “A” is no longer feasible.
Always ensure that all your avenues of approach meet all minimum definitions of success.
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4 STEPS TO BUSINESS PROBLEM SOLVING
Fourth, measure your success and create an after action report
The single most important aspect to solving a business problem is . . . That’s right, knowing if you solved the business problem!
Come up with metrics that define the solutions’ success and ensure you are meeting your defined targeted goals.
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4 STEPS TO BUSINESS PROBLEM SOLVINGItems to consider: Primary Metric
The main solution set – What you are trying to achieve Secondary Metric
The unintended consequence of solution set – What you don’t want to offset because of your solution set
Critical to Quality What is important to the solution or drives a Primary or
Secondary Metric Team Goal
Smaller task level goals and metrics that lead to one of the above.
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SUMMARY1) Define the Environment2) Define the Objective3) Create at least 2-3 Avenues of
Approach4) Measure your success and
document After Action ReportIf you have any questions, please
feel free to email me at armin.j.cruz <at> hotmail.com. Replace <at> with @
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ABOUT THE AUTHOR Armin Cruz is an operational excellence practitioner
specializing in the financial sector. Armin has worked for a “big four” bank for nearly 10 years and conducted turn-around operations in mortgage sales, mortgage fulfillment, banking center and retail banking operations as well as process excellence. Currently, Armin is tasked to drive the process enhancements at the division/business unit level.
Armin Cruz has a Master in Business Administration (MBA), as well as several industry certifications such as Business process management as well as in Six Sigma. Armin is a LEAN Master Black Belt (MBB) that is passionate about enhancing and creating value through cost avoidance and process optimization.
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