Step 1: State — Clearly Define the Problem

Accurate comprehension and articulation of the problem at hand is vital. If the issue isn’t stated succinctly, it’s likely not fully understood. Utilize the following framework:

• Trouble: What symptom highlights the existence of this problem?
• Owner: Who is affected by this issue?
• Success: What indicators will signal that the problem has been resolved, and when will you know?
• Constraints: What limitations must be taken into account (e.g., time, resources, skills)?
• Actors: Who is involved, and what are their expectations?

Example: Consider a friend's onsite life coaching business with eight coaches struggling to achieve profitability.

• Trouble: Insufficient profits.
• Owner: The friend, who founded the business.
• Success: Achieving a 50% increase in profits within two years.
• Constraints: No hiring of additional coaches and no incurring new debt.
• Actors: Coaches and clients.

Core Problem Statement: How can we enhance profitability by 50% over the next two years without hiring new staff and without accruing additional debt?

Step 2: Structure — Determine Your Approach

Once you’ve articulated the problem, select an appropriate method to address it:

1. Hypothesis-Driven Approach: Formulate and test hypotheses.
2. Issue-Driven Approach: Decompose the problem into smaller, manageable questions.
3. Design Thinking Approach: Employ empathy and ideation techniques.

Step 3: Solve Using Analytical and Creative Techniques

Utilize both analytical and creative thinking to resolve the issue. For the Hypothesis-Driven Approach:

• Formulate Hypotheses: Decompose the primary hypothesis into smaller, testable components.
• MECE Principle: Ensure that the breakdown is Mutually Exclusive and Collectively Exhaustive.

Example:

• Main Hypothesis: Transition to online coaching to reach a broader clientele.
  • Sub-Hypothesis 1: There is adequate demand for online coaching.
  • Sub-Hypothesis 2: Existing coaches are open to providing online sessions.

For the Issue-Driven Approach:

• Break Down Core Questions: Divide the primary problem into smaller, answerable inquiries.
  • Core Question: How can we raise profits by 50%?
    • Sub-Question 1: How can we boost revenue?
      • Sub-Question 1.1: How can we increase fees per session?
      • Sub-Question 1.2: How can we conduct more sessions?
    • Sub-Question 2: How can we cut costs?
      • Sub-Question 2.1: How can we lower rental expenses?
      • Sub-Question 2.2: How can we reduce marketing costs?

Step 4: Sell or Set in Motion

If you are solving the problem for yourself, take action to implement the solution. If the solution is for a client, present it persuasively:

• Compelling Narrative: Clearly articulate the situation, the problem, potential solutions, and the next steps.
• Core Message: Craft a clear and actionable message.
• Documentation: Utilize online tools for documentation and visual representation.

Example for the Coaching Business:

• Core Message: Expand by introducing online coaching services.
  • Benefits: Tapping into a growing market, enhanced flexibility, and low-cost expansion.