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Module 1.1 Basic Principles and Frameworks

1. This document introduces consulting and provides examples of how consultants work similarly to courtiers for kings. Consultants gather information, provide objective advice, solve problems, and communicate strategic recommendations to clients. 2. It discusses a case where BTPN saw an opportunity to create Indonesia's first digital bank but lacked capabilities for concept planning, product development, and market research. Therefore, BTPN hired consultants from 2010-2015 to conduct due diligence, create a business plan and prototype, and help launch Jenius as Indonesia's first digital bank in 2016. 3. Consulting requires skills like problem solving, rational thinking, impactful communication, and presenting recommendations to clients based on research and critical analysis.

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Cozzy Pawer
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© © All Rights Reserved
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0% found this document useful (0 votes)
35 views

Module 1.1 Basic Principles and Frameworks

1. This document introduces consulting and provides examples of how consultants work similarly to courtiers for kings. Consultants gather information, provide objective advice, solve problems, and communicate strategic recommendations to clients. 2. It discusses a case where BTPN saw an opportunity to create Indonesia's first digital bank but lacked capabilities for concept planning, product development, and market research. Therefore, BTPN hired consultants from 2010-2015 to conduct due diligence, create a business plan and prototype, and help launch Jenius as Indonesia's first digital bank in 2016. 3. Consulting requires skills like problem solving, rational thinking, impactful communication, and presenting recommendations to clients based on research and critical analysis.

Uploaded by

Cozzy Pawer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Basic

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Principles and
title
Frameworks
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Gandeng Foundation
subtitle
General Agenda

1 Introduction to Consulting

2 Basic Principles in Consulting

3 Basic Frameworks in Consulting

4 Exercises

This document is confidential and was prepared by Gandeng Foundation solely for the internal use of Gandeng Consulting #GandengSetaraTumbuhBersama l 2
Introduction
to Consulting
Introduction to Consulting

What is actually known as consulting?


Consulting Consultants

A relationship business that provides expertise to Individuals who provide professional advices in a
third parties in exchange for monetary rewards. particular field of business for their clients.

Their daily responsibilities is similar to how the courtier of kings work for their kingdom

Courtiers in kingdom… When applied in a business context…

● Gather the voice of the people and extract ● Conduct due diligence through primary
it into information to be analyzed and/or secondary research conducted and
● Provide objective directions for the scrutinized it to fit in the business project
royalties during decision making ● Solve problems using structured and logical
processes approach
● Involves in creating deliverables, with ● Gives strategic advices and influence
Courtier: an individual that
problem solving and rational thinking, through impactful communication on what
attends royal court as advisor with consensus from the royalties, best practices should businesses do
to the royalties especially during courts ● Perform presentation and meetings with
clients, which utilizes critical skills that involves
problem solving and rational thinking

Source: MyConsultingOffer (2021), Consultancy.uk (2022) #GandengSetaraTumbuhBersama l 4


Introduction to Consulting

There was a critical case happened in the 2010s that involves


one of the most well-known bank in Indonesia Participation point!

What Happened

● BTPN were out of trend since it’s hard for


them to reach more customer segmentation

● There was a moment where a lot of startup


that acquire tech-savvy customers
What do you think
(millennials) emerged
BTPN did?
● And yet, still there wasn’t a comprehensive
digital bank released

● This is an opportunity for every banks


including Jenius to chime into.

Source BTPN (2017): #GandengSetaraTumbuhBersama l 5


Introduction to Consulting

Do you think BTPN directly made JENIUS? By planning and


product development by themselves?
2016-Launch the First
Indonesian Digi Bank
● Financial Management
Features
● Safe and secure with
OJK Permit
2010-2013 Concept Planning
● Automatic Forex
● Market Research: Making Persona
Account
● Product Benchmarking: From Foreign
● Flexi Cash Loans
DigiBanks

2010-BTPN saw an opportunity 2013-2015 Product Development


● Ideate to create the first local DigiBank ● Business plan: creating
● Adopted the concept of banking digitalization clear financial projections,
● Extracted bank BTPN’s banking system and marketing objective
improvised its strategy to conceptualized ● Prototype: building the
DigiBank product roadmap
● Crowdfunding
● Design and finalization of
product

Source BTPN (2017): #GandengSetaraTumbuhBersama l 6


Introduction to Consulting

Do you think BTPN directly made JENIUS? By planning and


product development by themselves?
2016-Launch the First
Indonesian Digi Bank
● Financial Management
Features
● Safe and secure with
OJK Permit
2010-2013 Concept Planning
● Automatic Forex
● Market Research: Making Persona
Account
● Product Benchmarking: From Foreign
● Flexi Cash Loans
DigiBanks

2010-BTPN saw an opportunity 2013-2015 Product Development


● Ideate to create the first local DigiBank ● Business plan: creating
● Adopted the concept of banking clear financial projections,
digitalization
2010-2015 planning all is done by Consultants
marketing objective
● Extracted bank BTPN’s banking system ● Prototype: building the
and improvised its strategy to product roadmap
conceptualized DigiBank ● Crowdfunding
● Design and finalization of
product

Source BTPN (2017): #GandengSetaraTumbuhBersama l 7


Introduction to Consulting

Thinking like a consultant requires not only essential skills


needed, but also a mindset shift and approaches
Bureau of Labor Statistics (2017) stated that most of
Consultants adopted critical skills to solve 80% of prospective consultants still have incomplete
business problems expertise…

● Difficulty presenting effectively in front of large groups


● Inability to fully consider other people’s thoughts and
Critical skills feelings when making decisions
● Difficulty staying organized when given too many
tasks or assignments
● Fail to understand business problems in a structured
manner.
Common Skills Consultancy Skills
● Domain
● Teamwork
● competence
● Problem-solving
● Business
● Communication
● competence
● Critical Thinking
● Organization
● Adaptability
development

Source: CLO Media (2017) #GandengSetaraTumbuhBersama l 8


Introduction to Consulting

Thinking like consultant requires not only essential skills


needed, but also mindset shift and approaches
Having a structured manner means that you are able to possess a healthy obsession looking for a “better way” to do things

Structured manner involves…

1 2 3 4 5

Worrying less about “what” Defining the problem and Communicate insights and
Directionally right vs Getting feedbacks and
to make and worry about the make sure you are not synthesize instead of merely
precisely right continue to practice
process, or the “how” solving a symptom summarizing

Now, let’s say you only have Rp100.000 as your leftover monthly pocket money, yet you still have to
fulfill your needs…
4. Find stores that offers 5. Inform your parents about
1. Separate spending and 2. Find out the root cause of 3. Limit your purchase in
cheaper prices, while being your financial situation and
saving focus with smart what makes you broke, e.g. wants and start prioritizing
aware that you are in a limited seek for more suggestions in
budgeting (the process) buying too many wants your needs first
financial state saving and spending wisely

Source: CLO Media (2017), StrategyU (2017) #GandengSetaraTumbuhBersama l 9


Basic Principles
in Consulting
Basic Principles in Consulting

Imagine that Luthfi is single (JOMBLO) and is looking for a


partner, what will you do to help him? Participation point!

Source: #GandengSetaraTumbuhBersama l 11
Basic Principles in Consulting

Imagine that Luthfi is single (JOMBLO) and is looking for a


partner, what will you do to help him?
Umur tambah tua, cewe kaga ada… Gimana ini nasib gue?

Luthfi Gaada nasib-nasiban, bisa lu dapet cewe. Emang kriteria lu apa?

Nah, itu gue gatau jujur. Masih explore sana sini siapatau ketemu yang Joy
sefrekuensi.
Luthfi
Oalah, kalo gitu gue bisa kasih tips nih nyari cewe.
1. Kalo mau cari yang ambis, di LinkedIn
2. Kalo mau cari yang seksi, di TikTok (joget-joget)
3. Kalo mau cari yang pinter banget, daftar ke Gandeng Foundation Joy

Anjay, kayaknya gue mau cari yang ambis dulu deh, mumpung gue pengen
ikut beberapa lomba grup. Rekomendasi lu mantep banget dah.
Luthfi
Iya dong, kan gue MECE anaknya.
Joy

Source: #GandengSetaraTumbuhBersama l 12
Basic Principles in Consulting

Introducing a consulting principle that Joy used: MECE


(Ga Timpang Tindih & Sangat Lengkap)
and of course, helps you to become a better prospective consultant.

MECE (Mutually Exclusive, Collectively Exhaustive) Each term in MECE has different What makes a good MECE?
approaches…
A C M M
M1 M2 1 2 A. Not exclusive ● Clean and intuitive
Too scattered and overlapping Do a quick check to make
B. Not exhaustive sure that none of the areas
Not exclusive Not exhaustive
Not thorough and complete in your framework have
C. Mutually exclusive significant overlap
B D Distinctly separate and not ● No risk to miss
M M M overlapping something
M1 M2 1 2 3 D. Collectively exhaustive Focus on including areas
Set of ideas is inclusive of all that collectively make up
possible options 80% or more of the whole
Mutually exclusive Collectively exhaustive

Remember!
1. The MECE method should be used when looking to craft an issue tree for a specific case or project
2. Use the magic rule of three; small sets of items are also less time-consuming to describe.
3. Consider plotting your MECE in a logical manner.

Source: ManagementConsulted (2022), StrategyU (2017), Praxie (2021) #GandengSetaraTumbuhBersama l 13


Basic Principles in Consulting

Ice Breaking: Is this MECE?


Participation point!

As a university student, you must be able to save your monthly


pocket money (jangan repotin ortu!!). Which group would you
choose to spend your money on that, at the same time, saves your
money the most?

Choose 1 answer only


Group X Group Y A. Group X
B. Group Y

Water Cinema
tickets Transport Food

Source: #GandengSetaraTumbuhBersama l 14
Basic Principles in Consulting

Ice Breaking: Is this MECE?

Answer: Group Y
As a university student, you must be able to save your monthly
pocket money (jangan repotin ortu!!). Which group would you
choose to spend your money on that, at the same time, saves your
Reason: Group X has a mixed
money the most? of both need (water) and want
(cinema tickets). Note that as
university student it is more
wise to spend on your basic
Group X Group Y needs before purchasing your
wants (for survivability wise).
Therefore, group X is not
mutually exclusive. On the
other hand, group Y is filled with
essential basic needs (transport
Water Cinema
tickets Transport Food and food) for you to live as a
university student, making it
MECE.

Source: #GandengSetaraTumbuhBersama l 15
Basic Principles in Consulting

Now that you’ve learned the basics, in the business context,


MECE could be applied through 5 different strategies
No Strategies Description Example(s)
2 Profitability MECE
1 Two-Part MECE ● Follows the structure of “X” Economic barriers: raw materials, equipment,
and “Not X” labor
● To brainstorm a long list of Non-economic barriers: knowledge & expertise,
Profit
ideas brand name, distribution channels
Revenue Costs
2 MECE Math ● Use math formulas Basic formula for profit: Profit = Revenue – Costs,
● To improve a particular ● Revenue = Quantity * Price
Price Quantity Variable Fixed
metric ● Costs = Variable Costs + Fixed Costs
Cost Cost

3 Including “other” to
make MECE
Identify the largest and most relevant
parts of the whole, then add “Other” to
Finding total revenue of Samsung by baselining its
products and services, with “others” used. 3 Including “other” to make MECE
make it collectively exhaustive
Samsung Products & Services

Products Services
4 Breaking down To identify issues or opportunities for Improving a marketplace strategy for its delivery,
processes improvement. we can determine
1. the right warehouses to ship from Phones Media
2. local delivery vehicle and route of the Services
transportation
Tablets
Repair
5 Breaking down ● Identify all of the major City government officials, shipping companies, Services
stakeholders groups of stakeholders. financial institutions, and labor unions
Computers
● To identify strategies to target Other
each group Other

Source: Hacking The Case Interview (2022) #GandengSetaraTumbuhBersama l 16


Basic Principles in Consulting

Let’s say you want to harvest apples, but you only have
wooden logs as the equipment

Situation 1

You use all the wood Ideal answer


to build a foothold so
you can pick up the
apple from the top of
the tree ● A way to give the
biggest impact
with the least
effort, such as
option 2.
Situation 2 ● Although not
100%, the results
You only use 2 pieces
are already very
of wood to reach 80%
good when
of the apples on the
compared to the
tree.
effort given.
With only such limited equipment,
how can you harvest the apples?

Source: #GandengSetaraTumbuhBersama l 17
Basic Principles in Consulting

Pareto introduces you to give less effort, yet produces


greater amount of results
Pareto (1896) found that 80% of Italy’s land is owned by Understanding Pareto 80/20 rule in different scenarios
20% of the population

Effort Results Consumer Spending


Scene 1: A company’s growth is
● We might work twice 20% determined by the amount of profit
20%
as hard, but the end 80% received, where 80% of it comes from
Profit
result may not be 20% consumer spending
doubled
80% ● Every result in this
world is not evenly Drivers
distributed Scene 2: A company’s growth is
80% 20%
● Maximize determined by the amount of profit
contribution to 80% received, where 80% of it comes from
Traffic 20% consumer spending
produce sufficient Accidents
20%
output

Source: Hacking The Case Interview (2022) #GandengSetaraTumbuhBersama l 18


Basic Principles in Consulting

Now let's see an example of the application of the Pareto


Principle in everyday life, for example about monthly
pocket money Expenses Total
Using SCQ framework… Food Rp500.000

Transport Rp400.000
Situation
● You get a monthly pocket money of IDR Additional stationery & university
S 2,000,000 from your parents supplies Rp200.000
● In a month, you spend IDR 1,750,000
Pulsa & Data Packages Rp150.000

Cinema tickets Rp125.000


Complication Online game vouchers Rp100.000
● You want to buy a new gadget, so you have to
C increase the money in your savings KPOP Merchandises Rp100.000

● Unfortunately, your income can't go up Music Service Subscription Rp50.000

Beauty Subscription Service Rp50.000

Question Streaming Service Subscription Rp50.000

Q ● To increase the amount of your savings, what Others Rp25.000


expenses should you cut?
Total Expenses Rp1.750.000

Source: #GandengSetaraTumbuhBersama l 19
Basic Principles in Consulting

Then to reduce the amount of spending, do you have to cut


the amount of spending in every aspect? Apparently not....

Expenses Total Accumulation Weight Weight of Accumulation


Food Rp500.000 Rp500.00 29% 29%
Transport Rp400.00 Rp900.000,00 23% 51%
Additional stationery &
university supplies Rp200.000 Rp1.100.000 11% 63%
Pulsa & Data Packages Rp150.000 Rp1.250.000 9% 71%
Cinema tickets Rp125.000 Rp1.375.000 7% 79%

The ideal answer would be…


● Turns out, almost 80% of your total contests are influenced by only the 5 aspects above, so you only need to focus
on reducing these 5 aspects.
● If reducing expenses for food, transportation, and stationery is difficult, maybe you can start by reducing the
frequency of watching movies at the cinema and being more efficient in using the internet.

Source: #GandengSetaraTumbuhBersama l 20
Basic Principles in Consulting

You will get used to using Pareto by implementing these


steps…

Step 1 - Identify and List Problems Step 3 - Score Problems Step 5 - Add up Scores for Each Group
● List of all of the problems that you Score each problem listed by ● Add up the scores for each group that
need to resolve importance you've identified.
● Gather feedback from clients and ● The one with the top score should be
team members your highest priority, and the group with
the lowest score your lowest priority.

Step 2 - Identify the Root Cause of Each Step 4 - Group Problems Together Step 6 - Take Action
Problem Use the root cause analysis that you carried out in Start brainstorming ideas on how
● 5 Whys Step 3 to group problems together by common cause to solve the highest scoring
● Cause and Effect Analysis problem
● Root Cause Analysis

Remember!
1. When trying to implement Pareto, be sure to evaluate all of your tasks and assess your goals
2. To achieve the 80/20 rule, eliminate the distractions that interrupt you most

Source Mindtools (2017) #GandengSetaraTumbuhBersama l 21


Basic Frameworks
in Consulting
Basic Frameworks in Consulting

Let’s say you want to save the most from your monthly
pocket money, what will you eliminate from the given list?

Expenses Total

Food Rp500.000

Transport Rp400.000

Pulsa & Data Packages Rp150.000

Cinema tickets Rp125.000

Music Service Subscription Rp50.000

Streaming Service Subscription Rp50.000

Total Expenses Rp1.275.000

Source: #GandengSetaraTumbuhBersama l 23
Basic Frameworks in Consulting

If I were in your position, I would eliminate…

Expenses Total Hypothesis


1 Food is an essential basic need for me to survive as a university student, and
spending about Rp500.000 would be fine
Food Rp500.000
2 I need transport to go from campus to my apartment, vice versa, so spending
Rp400.000/month would be necessary

Transport Rp400.000 3 I need Pulsa & Data Packages to keep on track for the updates of classes I
attended as well as maintaining clear streamline of communication with people
in different areas
Pulsa & Data Packages Rp150.000 4 Spending money for cinema tickets would be risky since my most awaited films
may be published through their theater, which would make me to repetitively buy
cinema tickets
Cinema tickets Rp125.000
5 Waiting for ads on Spotify would be okay for me as long as I am able to
encounter my favourite song, so music service subscription would no longer be

Music Service Subscription Rp50.000 6 an option and allow me to save up better


Since I chose not to spend for cinema tickets, for self-reward purposes, I would
still subscribe to streaming service subscription. Aside from its accessibility, I
Streaming Service Subscription Rp50.000 could watch my favourite movies anytime and anywhere, with cheaper price
than what cinemas offered

Initial Total Expenses Rp1.275.000 Current Total Expenses: Rp1.100.000 (saved Rp175.000)

Source: #GandengSetaraTumbuhBersama l 24
Basic Frameworks in Consulting
There are three approaches to do problem solving in consulting:
Hypothesis-driven, Domain-IP, and the Engineering approach
Each problems are unique and demand its own solution, therefore there are different approaches in solving problems
The Hypothesis-Driven The Domain-IP The Engineering
possible solution deep dive in next slide possible solution
possible solution

problem

problem
solution solution solution

process process process

Mostly used among all the types, the Usually used by the more experienced problem The engineering approach depicts a divergent yet
hypothesis-driven approach starts with all solvers, the domain-IP approach immediately convergent way of problem solving -
possible solutions and works backward to prove choose the most efficient and impactful experimenting on all possible solutions and
or disprove the possible solutions. solution, eliminating other options assessing its impact later on

Example (refer to slide - apple harvesting) Example (refer to slide - apple harvesting) Example (refer to slide - apple harvesting)
You want to harvest apples but the tree is too You want to harvest apples but the tree is too You want to harvest apples but the tree is too
high high high
stairs stick rocks fruit picker stairs stick rocks fruit picker stairs stick rocks fruit picker
Problem solver will make hypothesis: experiment experiment experiment
-Stairs: might reach the apples but too much effort Problem solver is an expert - he’s the
-Sticks: hard in reaching the apples gardener and immediately recognizes fails fails fails
succeed
-Rocks: have to aim skillfully that fruit picker is a good investment - pivots to pivots to pivots to
-Fruit picker: easier to succeed but more expensive it’s quick and effective stick rocks fruit picker
.. and will prove/disprove those

Source: #GandengSetaraTumbuhBersama l 25
Basic Frameworks in Consulting

D-S-S problem solving framework can help you structure


your problem
Hypothesis-driven approach: have a first cut solution to a problem, and then to stress test its validity by putting it through
a rigorous problem solving process

Structure the problem down into


Define your problem clearly Focus on impactful actions
small chunks

What should you do? 1. Define your problem 2. Structure the problem 3. Synthesize issues

● What problem is your project? ● Identify the best problem


● What are the constraints you solving approach ● Synthesize key findings
face? ● Prioritize and target key and develop
● Who are the stakeholders issues recommendations
How do you achieve it? involved? ● Do the problem- ● Engage and leverage
● Debate and agree on core breakdown fulfill the leadership
problem definition as a team pareto principle? ● Why: Build momentum
● Why: Team is aligned around ● Why: Bring the right around recommendation
problem and methodology approach to the situation
and to the end customer

Source: #GandengSetaraTumbuhBersama l 26
Basic Frameworks in Consulting

D-S-S problem solving framework can help you structure


your problem
Hypothesis-driven approach: have a first cut solution to a problem, and then to stress test its validity by putting it through
a rigorous problem solving process

Structure the problem down into


Define your problem clearly Focus on impactful actions
small chunks

What should you do? 1. Define your problem 2. Structure the problem 3. Synthesize issues

● What problem is your project? ● Identify the best problem


● What are the constraints you solving approach ● Synthesize key findings
face? ● Prioritize and target key and develop
● Who are the stakeholders issues recommendations
How do you achieve it? involved? ● Do the problem- ● Engage and leverage
● Debate and agree on core breakdown fulfill the leadership
problem definition as a team pareto principle? ● Why: Build momentum
● Why: Team is aligned around ● Why: Bring the right around recommendation
problem and methodology approach to the situation
and to the end customer

Source: #GandengSetaraTumbuhBersama l 27
Basic Frameworks in Consulting

Let’s do some exercise!

1. Indonesia COVID test capacity is too low, 2. BakeryCo experienced major decline in
making it difficult to reach the entire country operating margin in the last few years

How would you write the problem statement? How would you write the problem statement?

Can COVID-19 test in Indonesia be Can BakeryCo be managed differently


A
managed differently to increase # of A to increase sales?
tests per day?
Should BakeryCo improve its
B
B deteriorating position?
Should Indonesia improve its
COVID-19 test capacity?
BakeryCo is suffering from poor
C
financial performance of its business
Indonesia has difficulty dealing with
COVID because it does not have a
C How to reduce transportation cost by
real picture from the tests being D
carried out 10% in the next 2 years?

Source: #GandengSetaraTumbuhBersama l 28
Basic Frameworks in Consulting

Let’s do some exercise!

Indonesia COVID test capacity is too low, BakeryCo experienced major decline in
making it difficult to reach the entire country operating margin in the last few years

How would you write the problem statement? How would you write the problem statement?

Can COVID-19 test in Indonesia be Can BakeryCo be managed differently


Too general
managed differently to increase # of Too general to increase sales?
tests per day?
Should BakeryCo improve its Not
deteriorating position? disputable
Should Indonesia improve its Not
COVID-19 test capacity? disputable
BakeryCo is suffering from poor Statement of
financial performance of its business fact
Indonesia has difficulty dealing with
COVID because it does not have a Statement of Part of but
real picture from the tests being fact How to reduce transportation cost by
not the main
carried out 10% in the next 2 years? problem

Source: #GandengSetaraTumbuhBersama l 29
Basic Frameworks in Consulting

Let’s do some exercises: What’s the key message?


Sample email

From: Assistant to Pat Jones


To: Pat Jones, EVP

There’s a problem with your hotel booking for the conference in Cologne

I could only book Tuesday and Wednesday night; the hotel is already full on Monday night. I’ve tried several other
hotels, but there’s nothing to be had anywhere because of the electronics fair (I haven’t tried guest-houses yet).

According to the new timetable, there’s a flight on Tuesday morning at 8:30. The arrival time in Cologne is 10:30 local
time. As the conference begins at midday and the journey from the airport will take you about one hour, you will still
arrive on time.

The travel office has booked a seat for you already, just in case.

And by the way: Isn’t it your wedding anniversary on Monday?


Didn’t you miss it last year?

Source: #GandengSetaraTumbuhBersama l 30
Basic Frameworks in Consulting

Let’s do some exercises: What’s the key message?


Applying the pyramid principle

I’ve booked a flight for you on


Tuesday morning at 9:30. It’s
better than traveling on Monday
You’re flying night. Because you will still be
on Tuesday at on time, you won’t have
9:30
accommodation problems, and
you can be at home for your
wedding anniversary
You will still You are more You can be
be on time likely to find a home for your
room anniversary

Source: #GandengSetaraTumbuhBersama l 31
Basic Frameworks in Consulting

When you want to structure the problem, make sure your


problem statement aligns with the SMART goal setting

Specific Measurable Attainable Relevant Time-bound


S.M.A.R.T

Define a clear specific Track progress using Make sure that your goal is Make sure that your goal is Add time restraint and
goal relevant metrics and KPIs realistic realistic targets to keep tasks
accountable

1. What do I want 1. How will I 1. How can I 1. Is it practical? 1. Can I complete


to accomplish? measure the accomplish this 2. Do I have the the goal in a
Ask yourself!

2. Who is progress? goal? resources or time reasonable


involved? 2. How will I know 2. Is this goal logical? needed to complete amount of
3. Which when the goal is the goal? time?
resources or accomplished? 2. What is my
limits are deadline for
involved? achieving this
4. Why is this goal goal?
important

Source: #GandengSetaraTumbuhBersama l 32
Basic Frameworks in Consulting

When you want to structure the problem, make sure your


problem statement aligns with the SMART goal setting

In SMART, try to avoid … Instead, try these tips for better results

1. Making imbalance amount of short-term 1. Assess your current position relative to your
and long-term goals definition of success
2. Being overly focused on performance goal 2. Prioritize learning goal; acquiring knowledge
or a new skill

Source: #GandengSetaraTumbuhBersama l 33
Basic Frameworks in Consulting

Maximize your SMART strategy by applying the pyramid


understanding

What I can suggest to you…

You have just


received a
pocket money
Look up for promos and purchase discounted
from your items so that you can still purchase your basic
parents needs, while saving up for your transport cost.

You want to You want to save


purchase basic up for your
needs transport cost

Source: #GandengSetaraTumbuhBersama l 34
Basic Frameworks in Consulting

Break down your problem statements using issue tree


Suspected Analysis to be
Area of analysis Possible reasons
problems performed

Why does this help?


4 A 5 AA 1. Work can be divided
1 Issue 1 3 into smaller steps
4 B 5 BB 2. Priorities can be set
Problem 2 3. Responsibilities can
4 C 5 CC be allocated
Issue 2 3 4. Ensures integrity of
4 D 5 DD the problem solving
is maintained
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 5. Builds a common
understanding within
Derive key
Elements should be Elements should not
takeaways or
the team of the real
necessary and All elements at overlap, yet cover all
Basic question to
sufficient for same level should relevant options;
proposed solutions problem
be resolved based on your
supporting the be of same nature Insert all necessary
previous analysis to
previous line supporting evidences
the problem

Source: #GandengSetaraTumbuhBersama l 35
Basic Frameworks in Consulting

Individual exercise: What should I do to spend less and save


more of my monthly pocket money? Participation point!

xx xx

xx

xx xx
What should I do to spend
less and save more of my
monthly pocket money?
xx xx

xx

xx xx

Source: #GandengSetaraTumbuhBersama l 36
Basic Frameworks in Consulting

Individual exercise: What should I do to spend less and save


more of my monthly pocket money?

Use digital
Monthly budgeting
Save applications
Personal financial
management
Adopt better
Learn financial
financial
management
What should I do to spend management skills
less and save more of my
monthly pocket money? Look up and save
Buy promos and
Spend the date for promos
discounts
and discounts
Spend smartly

Find friends who


Patungan
want to patungan

Source: #GandengSetaraTumbuhBersama l 37
Basic Frameworks in Consulting

More exercise: Bakery Co


Participation point!

xx xx

xx

xx xx
What set of actions could
BakeryCo pursue over the
next 2 years to increase
operating margins by 10%
xx xx

xx

xx xx

Source: #GandengSetaraTumbuhBersama l 38
Basic Frameworks in Consulting

More exercise: BakeryCo


Increase level of penetration in area (% of
xx To be prioritized people who come to our store)
Increase traffic
Already similar with
xx To be deprioritized (total number Increase average frequency of visits
(number of trips/month) peers in the same
of purchases vicinity
Increase /store/month) Increase conversion rate (purchases as %
revenue of visits)
What set of Increase
actions could average Increase volume/customer purchase Compared to peers,
purchase size BakeryCo’s average
BakeryCo pursue
($/customer Increase product price purchase size is lower
over the next 2
years to increase purchase)
Reduce production cost
operating margins Increase Variable cost is higher
by 10% number of Reduce transportation cost compared to peers
stores
Reduce storage cost
Reduce
variable costs Reduce labour cost/store
Reduce (COGS/unit)
cost Reduce rent cost/store Fixed cost is lower
compared to peers
Reduce fixed Reduce utility cost/store
cost

Source: #GandengSetaraTumbuhBersama l 39
Basic Frameworks in Consulting

D-S-S problem solving framework can help you structure


your problem
Hypothesis-driven approach: have a first cut solution to a problem, and then to stress test its validity by putting it through
a rigorous problem solving process

Structure the problem down into


Define your problem clearly Focus on impactful actions
small chunks

What should you do? 1. Define your problem 2. Structure the problem 3. Synthesize issues

● What problem is your project? ● Identify the best problem


● What are the constraints you solving approach ● Synthesize key findings
face? ● Prioritize and target key and develop
● Who are the stakeholders issues recommendations
How do you achieve it? involved? ● Do the problem- ● Engage and leverage
● Debate and agree on core breakdown fulfill the leadership
problem definition as a team pareto principle? ● Why: Build momentum
● Why: Team is aligned around ● Why: Bring the right around recommendation
problem and methodology approach to the situation
and to the end customer

Source: #GandengSetaraTumbuhBersama l 40
Disconnection
Basic Frameworks in Consulting

After obtaining the possible solutions, let’s prioritize to


know which one we should do first
Prioritization using 80-20 rule
100% Key to success
What to do How to do it
High

80% Focus on key issues Finding the right root causes


it
fru

t
ien
Be MECE Sort your options into Mutually Exclusive (Items can only fit into
one category at a time) and Collectively Exhaustive (All items
ing

ffic
can fit into one of the categories)
Impact

ng

t-e
ha

Don’t “boil the ocean” Focus on completing tasks rather than on perfectionism
os
w

tc
Lo

Do back-of-the-envelope Guesstimate only! Don’t be perfectionist!


No

calculations

Involve Exploit your intuitive capacity with the HAD Method (mental
judgement/intuition hygiene, expansion of information, and disconnection
Low

Involve your stakeholders Collaborate with clarity and honesty, and continuously
(or team) demonstrate your competence
Low Effort
Take risks Write all possible pros and cons to assess whether the risk is
20% 100% worth taking
Try to be MECE Try to be perfect

Source: #GandengSetaraTumbuhBersama l 41
Basic Frameworks in Consulting

Alternating all possible actions, try to prioritize things that


really matter using impact-ease of implementation matrix
Implement Implement
Suspected Purpose last first
Area of analysis
problems

High
Ease of implementation
Issue 1 First step in constant, iterative
refinement process
● Balance between
Issue 2
hypotheses/theories and data
● Use 80/20 thinking
Problem Issue 3
Concentrate your effort on what is most

Low
important
Issue 4
Low High
Elimination of non-essential issues is key to
Issue 5 limiting unnecessary work Impact

Ranking solutions in evaluation tables and


assessing them on impact-effort matrix helps to
prioritize the potential solutions

Source: #GandengSetaraTumbuhBersama l 42
Asynchronous learning:
Additional basic
frameworks in consulting
Additional basic frameworks in consulting

Creating better business strategy and decision-making


could be done through SWOT/TOWS framework
SWOT and TOWS are acronyms for different arrangements of the words: Strengths, Weaknesses, Opportunities and Threats

SWOT TOWS
Helpful Harmful To develop the TOWS framework, match external opportunities and threats
To achieving the objective To achieving the objective with your internal strength and weakness
Attributes of the subject Attributes of the subject

External External Threats


Opportunities
Internal

S
Strength W
Weakness

Strengths
Internal
Maxi-Maxi Strategy Maxi-Mini Strategy
Use strength to maximise Use strength to minimize
opportunity threat
External

O
Opportunity
T
Threat

Weaknesses
Mini-Maxi Strategy

Internal
Mini-Mini Strategy
Minimize weaknesses by
Minimize weaknesses and
taking advantage of
avoid threats
opportunities
The primary goal of SWOT analysis is to increase awareness
of the factors that go into making a decision while helping
you to identify your weaknesses and threats

Source: #GandengSetaraTumbuhBersama l 44
Additional basic frameworks in consulting

Example of TOWS analysis


External Opportunities External Threats
New markets New entrants
New products and services Market saturation
Purchasing companies Changes in customer behavior

Maxi-Maxi Strategy
Strengths Re-invest profits in new markets
Maxi-Mini Strategy
Profitability Use its brand to sell new products Offer better stakeholder value
Brand recognition Expand global presence by purchasing companies Ensure strong foundation (market share)
Global Presence Increase global brand awareness

Weakness Mini-Maxi Strategy Mini-Mini Strategy


Uneven worldwide New market will balance distribution Entry into new countries before competition
distribution Lower prices for new products Lower prices in Asia
Product pricing Purchases companies to survive Engage with customers with constant rewards
Sustainability

Source: #GandengSetaraTumbuhBersama l 45
Additional basic frameworks in consulting

When trying to assess whether your decision-making will


result in a positive outcome of success, use 7s McKinsey
7s McKinsey covers the nature of change in the organization Strategy Involves an organization’s approach
to market

Structure How a company organizes its


resources
Structure
Systems Processes and workloads linked to
responsibilities and tools used to
accomplish goals
Hard S:
● Easier to define Strategy System Shared Core value that links everyone to
● Management has more ability to Values have the same goal and operate
control, influence, and apply under the same value
changes for these 4S Shared
Values
Soft S:
● Harder to define Style Informal rules of organization,
● Organizational culture have stronger related to the culture and
environment of the company
influences for these 3S

Skills Style Staff Employees of the company;


outlining their growth and
development with the roles they
hold

Skills Skills of individuals and the


Staff organization. Note that the
organization may have core
competencies, but will outsource
when necessary

Source McKinsey (2018) #GandengSetaraTumbuhBersama l 46


Individual Project: Module 1.1 Basic Principles and Frameworks

Module 1.1 Assignment

Kindly check the instructions and details regarding the assignment in this link below:

https://bit.ly/WeeklyLearningAssignment1

Source: #GandengSetaraTumbuhBersama l 47
Thank you!
See you in the next session :)

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