180DC Academy | Module 1: Consulting 101

Summary

Jasmine Ilia, director of marketing at 180 degrees Consulting, introduces the seven-step consulting process as part of the 180° Consulting Academy. The session focuses on defining the problem, creating a problem statement, and formulating hypotheses. It covers brainstorming for problem statements, identifying root causes, and using tools like PESTAL, PORTER's Five Forces, and SWOT for top-down analysis. The module aims to equip consultants with foundational skills and logical thinking to tackle business challenges.

Takeaways

• 🔍 The first step in the consulting process is defining the problem, which is crucial as it sets the direction for the entire consulting journey.
• 📝 Problem statements can be broad and open-ended during brainstorming, guiding discussions towards goals without specifying the process.
• 🎯 The goal of problem statement brainstorming is to achieve specific, sometimes quantified objectives, such as understanding consumer needs or increasing efficiency by a certain percentage.
• 🚀 A problem statement serves as a guiding question throughout the consulting process, aiming to mitigate an issue or address a new opportunity.
• 🏢 In the case of Company X, the goal is to increase profitability and mitigate price pressure from new entrants with aggressive pricing strategies.
• 🤔 As a consultant, fostering a hypothesis-driven logic is essential, such as hypothesizing about weak pricing strategies or unexplored marketing opportunities.
• 🔑 Hypotheses gathered during brainstorming can form the basis for a fact base, which is then used to prove or disprove the hypotheses.
• 🌳 It's important to differentiate between symptoms of a problem and the actual root cause, using techniques like Five Whys or Six Sigma to uncover the root cause.
• 📊 A top-down analysis approach involves examining the external business environment, industry, and company in a hierarchical order, starting from broad perspectives and narrowing down to specifics.
• 🛠 Tools like PESTAL, PORTER's Five Forces, and SWOT can be used for market and industry analysis, while frameworks like SWOT or FREO can analyze the internal capacity of a business.
• 🛡 Solution formulation is an experiential learning process with no one-size-fits-all approach; it's key to address the root cause and consider the specific context of the business case.

Q & A

What is the first step in the seven-step consulting process discussed by Jasmine Ilia?

The first step in the seven-step consulting process is defining the problem, which is crucial as it lays the foundation for the entire consulting process.

What are the two types of problem statements mentioned in the script?

The two types of problem statements are typical brainstorming, which is broad and open-ended, and specific, quantified goals that guide towards a particular objective.

Why is it important to frame the problem statement as an objective?

Framing the problem statement as an objective ensures that the consulting process is directed towards either mitigating an issue or addressing a new opportunity effectively.

What is the purpose of brainstorming in the consulting process?

Brainstorming in the consulting process is used to generate ideas and hypotheses that can lead to specific, quantified goals, and it serves as a guiding question throughout the consulting process.

Can you provide an example of a problem statement from the case study of Company X?

A problem statement for Company X could be: 'What strategy or product development can Company X implement to increase profitability and mitigate the price pressure from new entrants?'

What is the role of hypothesis-driven logic in the consulting process?

Hypothesis-driven logic is used to formulate potential causes for the problem, which are then tested through fact-based analysis to either prove or disprove them.

How does one differentiate between a symptom and the root cause of a problem in consulting?

To differentiate between a symptom and the root cause, one must conduct a thorough analysis using methods like the Five Whys, PESTEL, PORTER's Five Forces, or SWOT, and avoid confusing symptoms for the underlying issues.

What is the significance of a top-down analysis in the consulting process?

A top-down analysis allows consultants to examine the external business environment, industry, and company in a hierarchical order, starting from a broad perspective and narrowing down to specific details for a comprehensive understanding of both external and internal factors.

What tools are suggested for conducting a top-down analysis in the script?

The suggested tools for a top-down analysis include PESTEL for market conditions, PORTER's Five Forces for industry competitiveness, SDP for customer segmentation, and SWOT or FREO for internal business capacity.

What are the three types of marketing strategies mentioned in the script?

The three types of marketing strategies are targeted strategy, which focuses on specific market segments or locations; value proposition, which enhances product, service, or pricing; and go-to-market strategy, which focuses on distribution, sales, and marketing.

How does the script emphasize the importance of creativity in consulting?

The script emphasizes creativity by suggesting that while there are standard frameworks like PESTEL, PORTER's Five Forces, and SWOT, consultants should feel free to create their own analysis frameworks to suit the unique needs of each case.

Outlines

00:00

📈 Defining the Consulting Problem

Jasmine Ilia, the director of marketing at 180 degrees Consulting, introduces the first module of the 180° Consulting GM Academy. The focus is on the seven-step consulting process, beginning with defining the problem. A problem statement is crucial as it guides the consulting process. There are two types of problem statements: brainstorming, which is broad and open-ended, and specific problem statements that aim to achieve quantified goals. The session uses the case of 'Company X' to illustrate how to formulate a problem statement. The company faces aggressive pricing strategies from new market entrants, leading to decreasing unit prices and slow revenue growth. The goal is to increase profitability and mitigate price pressure. Hypothesis-driven logic is emphasized, with examples such as weak pricing strategy or unexplored marketing opportunities. The importance of distinguishing between symptoms and root causes is highlighted, suggesting tools like PESTAL, PORTER's Five Forces, and SWOT for a top-down analysis.

05:01

🛠 Solution Formulation in Consulting

The second paragraph delves into solution formulation, a skill developed through consulting experience. It emphasizes the need to address the root cause identified in the issue tree. Solutions can vary widely and are not one-size-fits-all, requiring a return to the issue tree for guidance. The paragraph briefly mentions three types of marketing strategies: targeted, value proposition, and go-to-market strategies. The session concludes with an encouragement to apply foundational skills and logical thinking in consulting, with a预告 for the next module of the 180 degrees Consulting UGM Academy.

Keywords

💡Consulting Process

The consulting process refers to a systematic approach used by consultants to help clients solve complex problems or improve their operations. In the video, the seven-step consulting process is introduced as a framework to kickstart a consulting journey. This process is crucial as it guides consultants through identifying problems, analyzing them, and formulating solutions.

💡Problem Statement

A problem statement is a clear and concise description of the issue at hand. It is the starting point of the consulting process, as it helps to define the scope and direction of the consulting engagement. In the script, problem statements are differentiated into two types: brainstorming, which is broad and open-ended, and specific, quantified goals that guide the consulting process towards a solution.

💡Brainstorming

Brainstorming is a creative technique used to generate a list of ideas or solutions to a problem. It is an open discussion where all ideas are welcome, regardless of their feasibility. In the context of the video, brainstorming is used during the problem statement phase to explore various angles and possibilities before narrowing down to a specific goal.

💡Hypothesis-Driven Logic

Hypothesis-driven logic is an approach where consultants form educated guesses or hypotheses about the root causes of a problem and then test these hypotheses with data and analysis. The video emphasizes the importance of fostering this logic in consulting, as it helps consultants to focus their efforts on the most likely causes and solutions.

💡Root Cause

The root cause is the underlying reason for a problem or issue. Identifying the root cause is essential in consulting because addressing symptoms alone does not lead to lasting solutions. The video script uses the example of a chocolate company experiencing decreased revenue to illustrate the importance of distinguishing between symptoms and root causes.

💡Top-Down Analysis

Top-down analysis is a method of examining a problem by starting with a broad perspective and then gradually focusing on more specific details. This approach is highlighted in the video as a way to conduct a comprehensive analysis of both external and internal factors affecting a business. Tools like PESTEL, PORTER's Five Forces, and SWOT are mentioned as part of this analysis.

💡Issue Tree

An issue tree is a visual tool used to break down a complex problem into smaller, more manageable components. It helps consultants to structure their thinking and ensure that all aspects of the problem are considered. The video mentions issue trees as part of the process to analyze and address the root causes of problems.

💡Solution Formulation

Solution formulation is the stage in the consulting process where potential solutions to the problem are developed. The video emphasizes that there is no one-size-fits-all solution and that consultants must tailor their solutions to the specific needs and circumstances of each client. This process is learned through experience and involves a deep understanding of the client's industry and business model.

💡Market Analysis

Market analysis involves studying the market environment to understand trends, customer behavior, and competitive dynamics. In the video, market analysis is mentioned as a tool within the top-down analysis, where consultants examine the broader market conditions to identify opportunities and threats.

💡Industry Analysis

Industry analysis is the examination of the specific industry in which a company operates, including its structure, competitive forces, and growth potential. The video script refers to industry analysis as a part of the top-down approach, where consultants use frameworks like PORTER's Five Forces to assess the attractiveness and competitive landscape of an industry.

💡Internal Analysis

Internal analysis assesses a company's internal strengths and weaknesses. This includes evaluating its operations, management, financial health, and other internal factors that can impact its performance. The video mentions SWOT (Strengths, Weaknesses, Opportunities, Threats) and FREO (Financial, Reporting, Environmental, Operational) as frameworks for conducting internal analysis.

Highlights

Introduction to the seven-step consulting process as the foundation for a successful consulting journey.

Emphasis on defining the problem as the critical first step in the consulting process.

Explanation of creating a problem statement, which serves as a guiding question for the entire consulting process.

Differentiation between two types of problem statements: brainstorming and specific, quantified goals.

Importance of framing the problem statement as an objective to mitigate an issue or address a new opportunity.

Case study of Company X to illustrate the formulation of a problem statement in response to aggressive pricing strategies.

The necessity of fostering a hypothesis-driven logic in consulting to identify the root cause of problems.

Examples of hypotheses that could be formed during the brainstorming session, such as weak pricing strategy or unexplored marketing opportunities.

The process of building a fact base to prove or disprove hypotheses, turning them into facts.

The distinction between symptoms of a problem and the actual root cause, with an example from a chocolate company.

Techniques for finding the root cause, such as Five Whys, Pareto analysis, Lean, and Six Sigma.

Description of a top-down analysis approach, starting from the external business environment to internal company specifics.

Tools for conducting market analysis, industry analysis, and company analysis, such as PESTAL, PORTER's Five Forces, and SWOT.

Encouragement for consultants to be creative and develop their own analysis frameworks.

Discussion on solution formulation, emphasizing that there is no one-size-fits-all solution and the importance of addressing the root cause.

Variety of solutions across industries and functions, with examples from organizational structure to market expansion strategies.

Overview of three types of marketing strategies: targeted, value proposition, and go-to-market strategies.

Conclusion of the first module, highlighting the foundational skills and logical thinking required in consulting.

Transcripts

hi everyone I'm Jasmine Ilia the

director of marketing at 180 degrees

Consulting egm I will be your Mentor in

the first module of 180° Consulting GM

Academy in this session we will be

discussing the seven step Consulting

process to Kickstart your Consulting

Journey we will start this session with

defining the problem the Consulting

process greatly depend on this first

stage as you cannot solve a problem

without identify it first the first step

in defining a problem is creating a

problem statement there are two types of

problem statements first is the typical

brainstorming this is often Broad and

open-ended as it used to guide a

discussion towards a goal without

specifying the process for example what

features should we put in the product

why are we inefficient how can we be

more efficient and how can we reduce

cost problem statement brainstorming is

done to achieve a specific and sometimes

Quantified goals such as as which

features does the consumers wants and

need in the product how do we streamline

our process to cut an efficiencies by

20% and which of the cost can we discard

to increase cost

Effectiveness the problem statement

brainstorming is desirable brainstorming

method in the Consulting process there

is nothing wrong with kickstarting a

problem definition with the typical

brainstorming the problem statement act

as a guiding question to your your

entire Consulting process you should

frame the problem statement as an

objective remember that the problem

statement is used to either mitigate an

issue or to address a new opportunity

now let's take a look at the case of

company X the company functions in a

market where new entrance are enter

entering with aggressive pricing

strategy despite being in a lowcost

industry the price per unit is

decreasing due to the aggressive pricing

strategy from the company stand point

the cost has not increased but the

revenue is increasing slowly to make

matter worse the company has no overall

strategy or product strategy in the near

future from the case study we can deduct

that as a goal company X wants to

increase profitability and mitigate

price pressure by new

entrance we can then formulate the first

version of the problem statement what

strategy or product development Can

Company X and cement to increase

profitability and mitigate the price

pressure when it comes to defining the

problem always remember that as a

consultant you must Foster a hypothesis

driven Logic for examples hypothesis are

company X has weak pricing strategy

causing the vulnerability of price

pressure company X has not explored a

more diverse marketing opportunities

unlocked by the new entrance or the

advances in technology would allow

company X to explore other business

models or operational model the ideas

gathered during the brainstorming

session it could form a hypothesis from

which a fact base is built this fact

base will then either prove or

disapprove the hypothesis based on the

result the hypothesis then become a fact

problems often have causes but remember

not to confuse a symptom of a problem

with the actual root cause let's say for

example a chocolate company is

experiencing a decrease in revenue and

we find that there is a decrease in

sales generated for the first quarter

the decrease in sales as a symptoms not

the actual root cost to find the root

cost you must ask five wise conduct par

analysis as well as utilizing lean and

Six

Sigma after we have a hypothesis and an

issue three we can then conduct an

analysis to approve or disapprove the

hypothesis a top analysis and a business

approach involves examining the external

business environment industry and

Company in hierarchy order starting from

the broadest perspective and gradually

narrowing down to the specific details

this allows for a comprehensive analysis

of both the external and the internal

factors here are the possible tools you

can use to conduct a top- down analysis

for market analysis you can take an

eagle eye view and look at at things

from the top for example the conditions

of the market to pestal you can then

focus on the segments of the industry

which the company operates in by

analyzing the competitiveness through

portas by forces or customer

segmentation through sdp then you can

analyze the internal capacity of the

business to understand how well they can

address any issue or opportunity in its

external such SWAT or Freo now these

examples are simp simple Frameworks that

you can use when you start your first

Consulting project we will discuss

in-depth framework tools in the next

modules but always remember to be

creative you can always make your own

analysis

Frameworks next let's talk about

solution formulation this is something

you'll learn through experience as

there's no one siiz fits-all solution

for every business case the key point is

to always go back to your issue three

and address the root CA Solutions can

vary widely across Industries and

functions for example a strategy for

organizational structure will diver from

financing strategy for the finance

division for a Market expansion plan

there are three types of marketing

strategy one targeted strategy focus on

specific Market customer segment or

geographical location two value

proposition enhance the product service

or pricing and three goto Market

strategy focus on distribution sales and

marketing that's all for the first

module of 18 degrees Consulting UGM

Academy and I hope you've learned the

foundational skills and logical thinking

of a consultant stay tuned for the next

module