How can you use the Kepner-Tregoe model for better business decisions?

1 What is the Kepner-Tregoe model?

The Kepner-Tregoe model was developed in the 1950s by Charles Kepner and Benjamin Tregoe, two consultants who wanted to improve the quality of managerial thinking and decision making. They based their model on the premise that every decision involves four distinct processes: situation appraisal, problem analysis, decision analysis, and potential problem analysis. By following these processes, you can structure your thinking, avoid biases, and communicate your reasoning effectively.

2 How to apply situation appraisal?

Situation appraisal is the initial step of the Kepner-Tregoe model, which involves recognizing and ordering the issues that need your attention. To do this, ask yourself: what is happening (describing the current situation and the symptoms of the problem), what is the impact (assessing the urgency, importance, and risk of each issue), who is involved (identifying the stakeholders, their roles, and their expectations), and what are the objectives (defining the desired outcomes and criteria for success). By answering these questions, you can rank the issues by priority and determine which ones to address first.

3 How to apply problem analysis?

Problem analysis is the second step of the Kepner-Tregoe model, which involves finding the root cause of the problem and verifying it with evidence. To do this, you should ask yourself what the problem is, where it is located, when it occurs, what its extent is, and what its cause is. You can then measure the magnitude, severity, and variation of the problem and generate possible causes to test them with data. Based on your answers, you can isolate the most likely cause and confirm it with logic and facts.

4 How to apply decision analysis?

Decision analysis is the third step of the Kepner-Tregoe model, and it involves evaluating the alternative solutions and selecting the best one. To do this, you must first generate as many options as possible and list their pros and cons. Then, establish the musts and wants that the solution should meet and weigh them according to their importance. Additionally, rate each option against each criterion and calculate their scores, as well as identify the potential drawbacks, uncertainties, and trade-offs of each option. Based on your answers, you can choose the option that has the highest score and the lowest risk.

5 How to apply potential problem analysis?

Potential problem analysis is the fourth and final step of the Kepner-Tregoe model, and it involves planning and executing the action and preventing or minimizing any negative consequences. To do this, you should define the action plan, the responsibilities, and the timeline. Additionally, anticipate the possible difficulties, obstacles, and side effects of the action. Furthermore, take measures to avoid or reduce the likelihood of potential problems and prepare contingency plans to cope with or mitigate their impact. Based on your answers, you can then implement the action, monitor the results, and adjust as needed.

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?