Taking a Structured Approach to Problem Solving
A case study in structured problem solving: How we cut $3MM in overtime costs at a hospital by applying structured problem solving. One of the most rewarding engagements I’ve had as a management consultant was with a hospital that had been under severe budget pressure for years due to excessive overtime costs. I’d never worked for a hospital, so the expertise I was bringing wasn’t hospital management but a structured problem-solving method that I’d learned as a consultant. Here is an overview of each step I used. You can use these same steps to solve your challenging problems. The Problem Statement. I started by clarifying with my client the problem I was going to solve. I did this with a simple one-page introduction with three parts. – Situation: A definition of the client and their normal situation. – Complication: A definition of what has changed in their normal situation that is causing a problem. – Question: A definition of the problem the consultant is being hired to solve that clearly outlines what success would look like. By clarifying the problem, we defined success as “substantially reducing overtime without negatively impacting patient care.” The Logic Map. Next, I created a logical framework – a logic map – to identify all the potential root causes of overtime and categorize them into distinct categories. I chose “Supply-Driven” versus “Demand-Driven” at the top of my framework to organize the potential causes. Potential overtime root causes in the “Supply” category would be things related to the supply of labor – e.g., ‘not enough staff.’ Potential causes in the “Demand” category would be drivers of the demand for labor – e.g., ‘number of patients increased.’ The Interview Guide. I translated that logical framework into an interview guide that I could use in the meetings with the […]
