Harnessing the Power of Hypothesis-Driven Problem-Solving in Business


Hello, and welcome to another episode of “Continuous Improvement.” I’m your host, Victor Leung, and today, we’re diving into the heart of a fundamental skill in business: problem-solving. But we’re not just talking about finding solutions; we’re exploring the art of crafting a narrative that connects an issue to its solution through strategic use of language. This approach follows a structure I like to call “A, but B, so the question is…”

Let’s start with a simple example. Imagine you have a desire to purchase a Mercedes—a rather expensive car. The issue is clear: “I want to buy a Mercedes, but I don’t have enough money, so the question is, how can I gather enough funds to buy a Mercedes?” This type of questioning isn’t just about seeking answers; it’s about raising awareness, engaging critical thinking, and aligning ourselves with the task at hand.

Now, let’s bring this technique into a business setting. Consider this scenario: “We need to achieve efficient cost-saving through our procurement system. But only 20% of our workforce is utilizing it, so the question is, how can we increase adoption of our procurement process to 100%?” Here, the situation isn’t just about acknowledging the problem; it’s about exploring the solution space with precision and conscious effort.

The journey of problem-solving begins with understanding the hierarchy of questions. Among these, “What can we do about it?” stands out as the most crucial. It’s the question that moves us from passive contemplation to active solution-finding.

As business owners, consultants, or problem solvers, our job is to navigate through the complex maze of client communication. Often, clients know there’s a problem but can’t articulate what they need. It’s our role to be patient and diligent, to frame the issue back to them, to validate and understand, much like how a therapist listens to guide their patient.

In regions like APAC, where the utilization of consultants is still maturing compared to markets like the US, setting expectations becomes a two-way street. It’s about collaborating to define the scope and success criteria of the project. It’s essential to ensure alignment, even if it’s not perfect.

To this end, we start meetings by framing them as exploratory discussions, where perfection isn’t the goal—progress is. This mindset allows for value addition and embraces an agile way of working.

Engagement and alignment with stakeholders are not one-off events; they are continuous touchpoints where feedback is gathered, and check-ins are frequent. It’s not just about the ego of the consultant; it’s about integrating clients into the solution-building process, working together, and being seen not as an outsider but as a partner.

So, how does one differentiate between a hypothesis and a solution? Data. A hypothesis remains an educated guess until it’s tested against real-world variables. Hence, we often approach this with a “blah, but blah, so the question is…” format, making the logic clear and the pathway to resolution transparent.

While it may be interesting to know why a problem exists, it’s more critical to understand how to reverse it. This may involve a top-down or bottom-up approach, depending on the complexity of the issue. But remember, in business, less is often more. We prioritize—the top three hypotheses are focused on, not ten, because time is never on our side.

In conclusion, the power of hypothesis-driven problem-solving lies in its ability to drive work through focused inquiry. It’s about choosing the low-hanging fruit and working agilely to find solutions. It’s about taking a step back to see the bigger picture and avoid the pitfalls that can throw an organization off course. So the next time you’re faced with a business challenge, remember: start with the hypothesis, validate it with data, and let it guide you to the solution.

That’s all for today’s episode of “Continuous Improvement.” I’m your host, Victor Leung. Thank you for joining me, and until next time, keep striving for excellence and continuous improvement.