Chapter 22 | STARTING WITH THE DATA| Q&A 1.Question What historical trends led to the development of better consulting practices in the 50s and 60s? Answer:The consulting profession was in its infancy during the 1950s and 1960s, lacking extensive industry knowledge. Initially, firms approached client problems with broad company and industry analyses which often resulted in an overwhelming number of facts with little connection to the actual client issues. Many firms found that 60% of their fact-finding efforts were wasted, prompting a search for more structured and effective analysis methods. 2.Question What specific challenges did consultants face when gathering data for analysis? Answer:Consultants faced the challenge of amassing too many 'interesting' facts that were only marginally relevant to the client's core problems. Often the gathered data was
incomplete, leading to last-minute data collection, adding costs and stress. Organizing these facts into coherent conclusions proved difficult, resulting in lengthy reports that poorly reflected the insights derived from their work. 3.Question How did the perception of consulting analysis change over time? Answer:As costs increased and results became unsatisfactory, consulting firms shifted their focus to structuring the analysis before data collection began. They began to adopt methods similar to the scientific method, generating hypotheses and gathering data targeted to validate or refute these hypotheses, leading to a more focused and effective consulting process. 4.Question What is the significance of employing a diagnostic framework when defining problems? Answer:Using a diagnostic framework helps consultants critically analyze the structure surrounding the problem at
hand, which can uncover 'likely possible reasons' for its existence. This structured approach provides clarity and guides data-gathering efforts towards confirming these hypotheses, ultimately enabling the consultant to develop effective solutions. 5.Question What is the difference between diagnostic frameworks and nondiagnostic logic trees in consulting? Answer:Diagnostic frameworks are designed to assist in the thorough analysis of issues and understand underlying causes, whereas nondiagnostic logic trees focus on generating recommendations. Recognizing this distinction is crucial for consultants to employ the right analytical technique at the appropriate stage of problem-solving. 6.Question How did the shift to a structured approach in consulting improve outcomes? Answer:The shift to a structured approach improved outcomes by enabling consultants to focus their analysis and
data collection on specific hypotheses, leading to clearer conclusions. This method reduced wasted effort and provided a stronger foundation for developing actionable and creative solutions to clients' problems. 7.Question Why is it important for consultants to critically examine the 'Opening Scene' of a problem? Answer:Critically examining the 'Opening Scene' or starting point of a problem allows consultants to identify the context in which the issue arises, facilitating deeper understanding and exploration of potential causes. This step is essential for effectively defining the problem and generating relevant hypotheses.