The Analysis Phase

J. Stephen Schiavo

Missouri Southern State University

The Analysis Phase Outcomes: What we produce from this phase Activities: What we do in this phase Sources: Where to look for information Techniques: Best practices from the field Problems: Pitfalls and how to deal with them

Outcomes Detailed description of the current operation

Procedures as they really areControls as they really areWork loads, deadlines, performance as they really are

Pinpoint the cause(s) of the defined problem(s) Identify Critical Success Factors (things that have

to change, or have to be “just so” to succeed.) Proposal to proceed to the Design step.

Outcomes: Details of Current Operations

How does it work now? What are the in/out/puts, processes involved?

How much do we do? How often? Who does it? How long have they done it? How does others’ experience compare to ours?

Compare speed, cost, quality, reliability, etc.?

Volumes / levels of everything

Number of …prospects, clients, proposals, wins, losses, reps, employees, attendees, branches, countries, trucks, client work-stations, servers, products, orders per-, dollars per-, calls per-, returns per time period, courses, majors, classes, degrees, cattle, sheep, cats, dogs, rats, fleas, raisins, … … well, you get the picture!

Standards of comparison … What do competitors do? What did we say we’d do? What did we do before? What do clients expect? What do government statistics say? What do trade associations say? What do x-employees say? What do new-hires say?

Activities Interviews: Talk to people at every level who

might have a role, knowledge or insight Line workers, clerical staff, part-time, full-time …Executives, mid-managers, designers, sales people …Customers, vendors, investors, competitors …

Investigate, turn over rocks, go where others don’t Question everything … assume nothing … Measure, time, compare, verify, confirm …

It was Descartes who advised us not to accept something as fact merely because many believe it.

Techniques Open probes (Open-ended questions):

Who, what, when, where, why, how …Permit the other to relate anything she deems relevantDoes not constrain the subject or the responseUse early, to explore broad areas for promising info

Closed probes (Yes/no or multiple choice)Require specificity in replies where it’s been lackingRestrict the field of response and nail down clarityConfirm conclusions and critical information

… and sometimes, lock the speaker in.

Sources The people you interview are a major source … Corporate publications (ads, brochures, manuals,

annual reports, procedures, policies, …) Industry publications (magazines, journals, other

firms’ brochures and ads) Financial statements

Profit/(Loss): Chronicle of revenue & costs over timeBalance sheet: Snapshot of balances at a point in time.

Financial Statements Operating Statements (or P&L) -- see Google’s P&L

Over a time span Such things as revenues and expenses Resulting in profit/loss statements

Balance-Sheets (Net Worth) – see Google’s Balance Sheet At a point in time Where we stand …

what we have, what we owe, what’s owed us, what we’re worth Assets, liabilities, equity

Cash-Flow (or Sources & Uses of Funds) – see Google’s Where does our money come from, when do we get it;

where do we spend it; when does it flow out … … and when will have a surplus or deficit.

Problems When the interviewee is the cause of the problem

Distinguish the problem practices from the person“The merging caused the problem.” not“You caused the problem when you decided to merge.”

Stress the effort to find the corrective action“We need to come up with the way to neutralize the bad effects of the merger; those effects we have determined are A, B, and C.”

What about when the problems are insurmountable?You don’t know that yet ! (We’re still in analysis!)

Exercise

For the case and objective provided, ask questions to learn current operations and causes of problems.

Begin with open probes Who, what how, why, … Use closed probes to clarify points, narrow the

range of discussion, nail down issues, and gain commitment from interviewee.