BC

WVU Entr 440: Problem-Solving Notes

Why Problem-Solving Matters

  • Entrepreneurship is problem-solving at its core
  • Consultants are paid to define, structure, and solve complex business challenges
  • Trusted advisors don’t just 'answer' – they help clients frame the right questions
  • Practical Exercise: In groups, list 3 reasons a business leader might hire a consultant instead of solving the issue internally.

The 7-Step Problem-Solving Approach

  • Conn & McLean’s structured process:
    1. Define the problem clearly
    2. Disaggregate issues (break down)
    3. Prioritize what matters most
    4. Build a work plan & hypotheses
    5. Conduct rigorous analysis
    6. Synthesize findings
    7. Communicate solutions effectively

Step 1: Defining the Problem

  • Spend more time clarifying the real issue
  • Frame with 'How might we…?' or 'What will it take to…?'
  • Avoid rushing to solutions
  • Practical Exercise: Take the problem 'declining sales.' As a group, write 3 different problem statements that frame the challenge in unique ways.

Disaggregation & MECE Thinking

  • Break problems into MECE buckets:
    • Mutually Exclusive: no overlap between categories
    • Collectively Exhaustive: nothing important left out
  • Helps consultants avoid duplication and blind spots
  • Example: Declining profits →
    • Revenue drivers (pricing, volume, new customers)
    • Cost drivers (labor, materials, overhead)
  • Practical Exercise: Break down the issue 'low employee morale' into MECE categories. Check if your categories overlap or miss something important.

Prioritization & Hypothesis-Driven Thinking

  • Not all issues matter equally – focus where impact is largest
  • Start with hypotheses: educated guesses you can test
  • Efficient: saves time, narrows focus
  • Example: 'We believe customer churn is driven primarily by poor onboarding.'
  • Practical Exercise: Formulate one testable hypothesis about why customers might be leaving a subscription service.

From Analysis to Synthesis

  • Analysis = breaking things apart
  • Synthesis = putting it together
  • Always ask: 'So what?' after each piece of data
  • Move from facts → insights → recommendations
  • Consultant’s Role: Tell the client a clear, actionable story
  • Practical Exercise: Review 3 data points (given in class) and work together to form a single recommendation for a business leader.

Communication & Trusted Advisor Role

  • Great solutions fail if poorly communicated
  • Use structured storytelling: situation → complication → resolution
  • Build trust through:
    • Clarity
    • Honesty
    • Actionability
  • Practical Exercise: Draft a 2-minute 'elevator pitch' for a business solution that communicates the problem, insight, and recommendation.

Connections, Implications, and Real-World Relevance

  • Problem-solving is a universal skill in entrepreneurship and consulting; the 7-step approach provides a repeatable framework.
  • MECE thinking helps ensure all relevant areas are considered without duplication or gaps.
  • Hypothesis-driven thinking aligns with the scientific method and data-driven decision-making.
  • Synthesis as storytelling emphasizes that insights must be translated into clear, actionable recommendations.
  • Communication quality directly affects outcomes: structured storytelling builds trust and increases implementation likelihood.
  • Ethical and practical implications:
    • The need for clarity, honesty, and actionability to maintain trust with clients
    • The risk of framing problems to push a preferred solution; guardrails include transparent hypotheses and evidence-based reasoning
    • The obligation to present feasible, implementable recommendations rather than overpromising.