Frameworks: removing complexity of “new”

In 2022 alone, the tech industry is set to exceed $5.3 trillion with over 1000+ unicorn startups (Source: CB Insights), and those mythic beasts form less than 1% of the total startups crowding the market! With such an infusion, the market landscape is morphing at a pace never seen before. Even if every startup isn't well differentiated, that's a lot of "new" (or new-ish) ideas ready to take the world by storm. 

Both consumers and professionals face novel challenges that have no analog in the past. So too, are executives in companies, where not only is a decision made for oneself and/or one's family, it's made for tens to hundreds of thousands of employees.

Newer problems/decisions/considerations have less to ground that decision in fact or experience.

The Jesuits and the Dutch have a name for this type of decision where they must interrogate and solve emerging situations without prior reference points. However, most people don't dig into history to solve for the future (a bit of shame, though, as older cultures have lots of experience on which to draw). This is where very smart people do something less smart - they assume that the ideas are inscrutable to old methods.

Here's why: they're either so different or involve new technology, or new people, which results in them looking for how it is different versus where it is similar.

Yes, concepts that seemingly come from the left field challenge the boundaries of our knowledge and even how we know it. However, this lack of concrete answers is where frameworks come in. They represent an excellent way to tease novel problems into bite-sized slices, allowing for better problem-solving.

We all have a few consulting standards on which we've grown to rely, but I wanted to share a few foundational consulting approaches that I go back to repeatedly. Some will be obvious to some readers, yet others are less familiar. For me, they bridge the technology and strategy worlds and become excellent tools for ensuring your thinking has completeness and consumability.

Here I share the frameworks which I find myself coming back to again and again.

I use these frameworks to drive clarity to my thinking. They ground me logically when making strategic decisions that have longer-term implications. They infuse deeper considerations when you force yourself to ask more questions and actual scenarios requiring step-by-step progressions.

Lets refresh our understanding of these 4 foundational consulting concepts – Hypothesis based problem-solving, 80/20 method, the MECE framework, and the Minto Pyramid principle.

1. Hypothesis based problem solving

It is a framework where you begin with the question/answer and then work through the data to prove or disprove the answer. Your issue is solved when you have a statement that stands on supporting arguments and insights. It is an iterative process, where if the data does not support your argument, you change it and explore again

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2. MECE, Mutually Exclusive, Collectively Exhaustive framework

This is powerful when it's combined with hypothesis-driven problem-solving. To be MECE, the arguments need to be organized in distinct groups with no overlaps (i.e., exclusive from each other), and the number of groups should exhaust all possible options (i.e., collectively exhaustive) 

This MECE framework allows you to take significant complex issues and break them down into manageable chunks. The idea is that solving the parts will solve the whole

3. The 80/20 Principle

This rule is derived from the Pareto principle, which states that 80% of effects come from 20% of the cause. Focusing on that, 20% of the reasons allow you to (a) Focus on the most relevant, (b) Exclude trivial analysis (c)Drive the highest impact through better prioritization. Note that numbers aren't always 80/20, but the rule most often holds and allows you to focus on results by knowing what is essential.

4. The Minto Pyramid Principle

For the uninitiated, the Minto pyramid was coined by Barbara Minto, the first female post-MBA hire in the 1970s by McKinsey. It is a fundamental writing framework used in strategy consulting that suggests structuring your presentation to get messages across logically.

The name "pyramid" comes from the visual presentation of ideas in a pyramid schema. This is the framework that forms the foundation for hypothesis-based problem-solving. It leads with the answer and gives critical supporting arguments, backing them up with curated data points while staying MECE.

Now let's look at how the concepts we discussed above translate to the world beyond consulting.

In a fast-moving, morphing market landscape where the competition and the users are constantly evolving, it's essential to be agile (yes! An overused word in the tech world – yet meaningful in context). If you wait, you could miss the opportunity or, worst still, be leapfrogged by the market.

At the highest level, decision-making falls into 2 distinct camps: Those who follow intuition over analysis and those who follow data, with much lower regard for their gut feelings and intuition.

On the surface, they are quite distinct - Intuition-based decisions are experiential. This decision-making type is essential and challenging in a fast-cycling market. 

While data-based leaders follow the data trail, they can be prone to deep dives and occasional rabbit holes and detours.

The real win is to consider both - marrying hypothesis-driven problem-solving approaches can be a great tool when coupled with agility, bringing the best of intuition and data-based decisions together.

Today, in a role where I own ecosystem development in an emerging tech business, I lean on these traditional consulting tools to drive decisions/strategies on a wide-ranging set of questions. These questions range from "How do we reduce the adoption cycle times" to "where should I expand my market to?"  and even more mundane," "What should I prioritize for the budget spread this year."

Here's the flow

1. Let your starting hypothesis be informed by your intuition
2.   Look for what arguments would support the hypothesis – ensure they are MECE
3. Gather the data following the 80/20 rule (Prioritize 20% of data that can lead to 80% of your insight) – this is a key aspect of ensuring agility in your data-based decision making
4. Look for insight and see if the data proves or refutes your intuition/hypothesis. Revise and revert as needed
5. Build experiments (if appropriate) to test  (think beta releases in the product life cycle)
6. Scale to broader org/audience based on results from the experiment above

While it sounds time-consuming, it isn't quite as much. Applying this method limits the data needed to the most important and drives focus on the highest potential solutions through its MECE framework (i.e., you don't end up boiling the ocean while accounting for all variables). It allows you to back your intuition with solid logic and make informed choices quickly. Additionally, as this follows a logical stream and needs others involved, it brings together the team on the decision-making journey.

Once you have a path forward, you need to communicate it clearly. The business operates at warp speed, so where time is at a premium, being succinct and eloquent is essential (OK, eloquent may not be required, but it is a very desirable outcome). When messaging works, calm ensues, work happens, and chaos is avoided. This is the provenance of Minto Pyramid Principles.

I have found that using the Minto pyramid principle forces you to articulate your net-net first.

Personally, getting to the "so what" right at the beginning helps me ground my thinking and appropriately divide my effort.         

Anyone involved in finding and communicating solutions for complex problems can apply the Minto principle. This includes marketing, sales, product, engineering, and other teams in the organization.

Here's the HOW:

• Start with the core answer or actionable point (why/what)
• Summarize the supporting arguments (The wisdom of the experienced says no more than 3 supporting arguments per core message – makes it easier to digest)
• Depending on the communication type, add supporting facts to substantiate your argument
• Recap and close

Are they always relevant? The answer is "No."

Yet, you examine the context and the audience. In that case, these tools give you a helpful construct for problem-solving and presenting your ideas/solutions clearly, succinctly, and agilely.

Be sure to take action to reinforce your practice.         

Try using a hypothesis-based problem-solving approach to tackle a strategic decision you're sitting with now or use the pyramid principle to structure an upcoming report/presentation.

 The more you do this, the more natural it gets. And that's why we call it a practice, even though there is no perfect.        

Posted originally on  Bridgingchasm.com dedicated to the growers & their obsession with adoption 

PS: This is an opinion piece and may not reflect my employer’s official views.