These words are wisdom, but wisdom is a virtue of few. The rest need to develop it. Tata Docomo recently launched an ad campaign asking people to “Keep It Simple, Silly,” which became an instant hit. Organizations have found that it is easier to sell simple ideas than complicated ones. Every idea is an answer to a problem. So if the answer needs to be simple, why should the solution be complicated? Solving problems is the course of doing business.

Unresolved problems could in time turn complex such that it becomes very difficult to conjure up a cure. The issue does not lie in the complexity of the problem, but with one’s approach towards solving it. Amongst many such approaches used by consultants, is the structure based approach. Solving problems in a structured manner not only helps draw out a simpler framework but also helps reduce the amount of effort put into solving it.

Structured problem solving has benefited consultants to come up with:

1.      An effective initial hypothesis which lays the foundation for data collection, factual synthesis and analysis.

2.     The scope of the problem and a guideline for a researcher which helps him explore in the right direction. Every project is limited by resources and one should avoid expending too many resources in the wrong direction. This helps researchers come up with comprehensive solutions before deadlines and add value to the final product which benefits the client.

3.    Easy to comprehend and simple to implement frameworks which enable them to break complex problems into smaller components that can be solved individually. In today’s competitive scenario, organizations face complex problems, for which untying the Gordian Knot itself is insufficient, one has to unthread the rope into individual threads and solve each thread to the origin of the rope; i.e. the root of problem. A logic tree or a problem tree could be a tool to achieve this.

The advantages can be better understood by looking at a simple case. Indian retail industry which contributes up to 12% of the GDP faces the challenge of increasing competition. The Indian retail sector has witnessed too many players in too short a time, which has made this sector turn vapid. New entrants along with existing players keep asking the same question, “How do we make money in this industry?”

An ad-hoc approach towards this problem could look like the image on the right where there are ‘n’ number of interdependent variables across internal and external factors.

Applying structured based approach towards solving this complex problem could corroborate our assumptions.

Major hurdles faced by a player in the Indian retail industry can be classified into three categories:

1. Threat of rapid price changes and low margins
2. Threat from unorganized sector
3. Legal policies

We can sub categorize by breaking down these categories so that no aspect of the problem is left untouched. One could keep breaking it down till a simple framework of the problem is achieved. I have broken down one arm of the problem tree demonstrating the break-down of a problem down to 5 levels. This can be further broken down into more levels.

We understand that FDI regulation affects New Technology and R&D in retail. This will ultimately help companies deal with low margins. Due to constrain of this blog I will not go deep into these subcategories.

The above approach enables us to cover all the aspects associated with the problem. It also enables consultants to look at different perspectives which would have been hidden or overlooked before.

The golden rule says, no matter how complex the problem, if its solution is not simple then one is on the wrong track. One must always try to simplify the problem as much as possible keeping sure that nothing is left and every possibility is considered. It is only through the most complex situations that the subtle art of simplicity be understood.

Companies therefore commission research where the starting hypothesis is that the market is great and there is money to be made and the research agency is asked to prove it. The research firm promptly goes around collecting data to support the hypothesis and the point is made to the Board. So if all goes as per plan, there are a lot of promotions. If the “opportunity” turns out to be a mirage, you know whom to blame.

So, if this is what companies need research for, then why should firms (like us?) bother with methodology, sample sizes, segmentations, Porter’s five forces, SWOTs and what not. My entire team devotes itself to ensuring rock-solid credibility and we believe that clients want us to deliver the truth as we see it and not what they want to see.

Anyway, it took me a moment to respond to my prospective client, but when I had gathered my thoughts I told him that the kind of research he referred to possibly existed but I could quote instances when our research just turned the client hypothesis upside down – and we stuck by it.

The scene was this – a global insurance player wanted to enter the Indian market in a particular niche which they thought was unexplored and held potential and they could quickly step in and gain first mover advantage. This particular market was so niche and so under – documented that we had to think of new and innovative ways to size it up.  Our initial results said there wasn’t much of a market. We were of course, not ready to say that to the client right away and extended our research to cross check and (further cross check!) our sources and analysis. After this, we had an intensive three day peer review of the report, but our conclusion remained the same. We finally had to go back and tell the client what we thought. Our client was quite shocked and hadn’t expected this – in fact, so confident were they that they were processing the licence in parallel. Needless to say, the client’s Group Board wasn’t amused by our report at all and we had to face three rounds of review and grilling before the client finally decided to shelve entry plans. Its been four years now, but there’s still no foreign player in this niche in India!

Does this prove all research is credible? – My answer is if a research firm stakes its reputation on it, it better be!!