Dec 17, 2012
A CEO wants to increase his company’s profitability. The owner of a restaurant wants to fix the chronic saturation of his parking lot. A team managers wonders how to accommodate the workload on her team. At first look, these problems are unrelated but, past the surface, they are similar: they all capacity problems—as in having enough offer (revenue, parking capacity, work capacity) to accommodate for the demand ({costs+margin}, parking demand, work demand). So these problems have the same underlying structure; they are isomorphic.
Recognizing isomorphisms helps your innovation
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A profitability issue tree is useful to breakdown revenues and costs into their driversThe tree allows you to identify exactly once all the possible ways in which you can solve your problem, irrespective of how feasible or desirable these potential solutions are. That is, you are just mapping the solution space. At this stage, you aren’t advocating for pursuing any of these potential solutions, you are just acknowledging their existence. Just as a map shows all the roads that you can use to go from point A to point B, an issue tree lays out graphically all the ways that you can answer your key question.Building an issue tree takes time. All the more because, up to a point, to be insightful, trees might need to be custom made for your problem. The good news is that you can use existing trees to jumpstart your analysis.Next, establish equivalencies between the target problem and the reference oneAnd this is key: by using analogies, you can use an issue tree about profitability to help you solve the saturation of your parking lot. All you have to do is find the equivalency between the components: for instance, revenues become your parking capacity while {costs + margin} become your parking demand. Continuing, a client is an entity that generates revenue (i.e. parking capacity), so maybe that becomes parking space. So, to increase your revenue (parking capacity), you can either use new clients (new space) or returning clients (existing space). So far, nothing ground breaking, but the value of analogical transfer is more apparent when you move to the right in the tree. ‘”Stealing” clients from competitors’ becomes ‘using parking capacity from other organizations’. Do you have a neighbor with unused parking capacity when you need it most? For instance, if you are a restaurant whose issue is to find parking space for people that come for diner, maybe there is a bank, school, or church nearby who has unused parking space at diner time? Maybe they have a similar problem: they might need more space than they have in the mornings, when you don’t use yours. Maybe, by pooling your parking capacity, you can help each other out.This is even more apparent when you think about ‘decreasing costs’ branch (decreasing parking demand). Indeed, when thinking about fixing the parking lot saturation, only a few people think about reducing the demand, and yet this also belongs to the solution space. For a real-life analogous example, look at how IBM solved the Stockholm’s traffic issue: not by building more road (increasing capacity) but by installing a ‘tax and drive’ system with transponders that charge a variable fee depending on the time of the day (reducing demand).While these ideas might not be revolutionary, they aren’t trivial either. I have used this parking lot example with over two hundred students and professionals over the years, and no-one to date has been able to think of a comprehensive solution space that includes both partnering with another organization to increase capacity and decreasing demand.Being able to think about these types of innovative solutions is all the more challenging if you are familiar with your problem, as you lack the distance to step back, see the big picture and ask ‘silly’ questions—a result of habituation. Analogical transfer is a good way to get some artificial distance between you and your problem, which will help you consider non-trivial solutions.
Comments
I found Leslie next to the swim-start area, got my last good-luck kiss and then I watched the pros get the real show on the way. They started at 07h05 and would be followed every 5 minutes by a wave of age-groupers. My age group, M50–54 would be the penultimate one to start at 07h55.
I found Leslie next to the swim-start area, got my last good-luck kiss and then I watched the pros get the real show on the way. They started at 07h05 and would be followed every 5 minutes by a wave of age-groupers. My age group, M50–54 would be the penultimate one to start at 07h55.