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How do you generate and test hypotheses with an issue tree?

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As a consultant, you often need to solve complex and ambiguous problems for your clients. One of the most powerful tools you can use to do that is an issue tree. An issue tree is a visual representation of the main question you are trying to answer, and the sub-questions and hypotheses that break it down into smaller and more manageable parts. In this article, you will learn how to generate and test hypotheses with an issue tree, and how to use it to structure your analysis and communication.

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Manish R.

5 years in BizOps - GTM Strategy, Revenue Operations | MBA @ Babson & ESADE | SQL, Tableau

1 What is an issue tree?

An issue tree is a hierarchical diagram that starts with the main question or problem statement at the top, and then branches out into sub-questions and hypotheses at lower levels. Each branch represents a logical and mutually exclusive way of addressing the higher-level question. The goal is to cover all the possible causes, drivers, or solutions of the problem, without overlapping or missing any important aspects. An issue tree can help you clarify your thinking, organize your data, and communicate your findings.

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2 How to generate hypotheses with an issue tree?

To generate hypotheses with an issue tree, you need to follow a systematic and creative process. First, you need to define the main question or problem statement that you are trying to answer or solve. This should be clear, specific, and measurable. For example, "How can we increase the profitability of our online store?" Second, you need to identify the main factors or drivers that influence the main question. These are the high-level sub-questions that you need to answer to get closer to the solution. For example, "What are the revenue and cost drivers of our online store?" Third, you need to break down each sub-question into smaller and more detailed sub-questions and hypotheses, until you reach a level that can be tested with data or evidence. For example, "How can we increase the conversion rate of our website visitors?" or "How can we reduce the shipping costs of our orders?" These are the hypotheses that you will test with your analysis.

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Manish R.

5 years in BizOps - GTM Strategy, Revenue Operations | MBA @ Babson & ESADE | SQL, Tableau
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To generate hypotheses with an issue tree, define the main question, identify key factors, break them down into detailed sub-questions, and form hypotheses for testing. Examples include increasing conversion rate or reducing shipping costs. Be systematic, creative, and data-driven.

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3 How to test hypotheses with an issue tree?

To test hypotheses with an issue tree, you need to collect and analyze relevant data or evidence that can support or refute each hypothesis. Depending on the type and availability of data, you can use different methods and techniques, such as benchmarking, surveys, experiments, or financial modeling. The key is to be rigorous, objective, and critical in your testing, and to prioritize the most important and impactful hypotheses. As you test each hypothesis, you need to update your issue tree with the results and implications, and mark the hypotheses as validated, invalidated, or partially validated. This will help you track your progress and identify any gaps or inconsistencies in your logic.

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Manish R.

5 years in BizOps - GTM Strategy, Revenue Operations | MBA @ Babson & ESADE | SQL, Tableau
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Gather and analyze relevant data. Use methods like benchmarking, surveys, experiments, or financial modeling. Be rigorous, objective, and critical. Update the issue tree with results, marking hypotheses as validated, invalidated, or partially validated. Track progress and identify logic gaps.

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4 How to use an issue tree for communication?

An issue tree can also help you communicate your problem-solving approach and recommendations to your clients or stakeholders. You can use your issue tree as a guide to structure your presentation or report, and to show how you arrived at your conclusions and suggestions. You can also use your issue tree as a visual aid to illustrate your main points and arguments, and to highlight the key insights and evidence that support your hypotheses. By using an issue tree for communication, you can demonstrate your clarity, logic, and rigor in your problem-solving, and persuade your audience with your findings and recommendations.

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5 What are the benefits and challenges of using an issue tree?

Using an issue tree in consulting work can be beneficial for breaking down complex and ambiguous problems, generating and testing hypotheses, organizing and prioritizing data and analysis, and communicating problem-solving approaches. However, this process can be time-consuming and resource-intensive, particularly for large problems. Additionally, it can be difficult to ensure the issue tree is comprehensive, mutually exclusive, and logically consistent. It may also be challenging to test hypotheses that require qualitative or subjective data or evidence, or involve uncertainty or assumptions. Lastly, adapting the issue tree to changing circumstances or new information can be hard. Therefore, flexibility and adaptability when using an issue tree are essential, as well as constantly reviewing and refining it as more data and feedback are gathered.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you generate and test hypotheses with an issue tree?

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1 What is an issue tree?

2 How to generate hypotheses with an issue tree?

3 How to test hypotheses with an issue tree?

4 How to use an issue tree for communication?

5 What are the benefits and challenges of using an issue tree?

6 Here’s what else to consider

Consulting

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How do you generate and test hypotheses with an issue tree?

1

2

3

4

5

6

1 What is an issue tree?

2 How to generate hypotheses with an issue tree?

3 How to test hypotheses with an issue tree?

4 How to use an issue tree for communication?

5 What are the benefits and challenges of using an issue tree?

6 Here’s what else to consider

Consulting

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