Management consulting

Box 8.2 Issues in problem identification

It is useful to recall briefly some common mistakes made in defining problems, not only by clients but also by some consultants. The way people define problems affects their ability to solve them.

●Mistaking symptoms for problems. This is the most common error. Some obvious issues that worry management (e.g. falling sales, shortage of innovative ideas in the research and development department, absenteeism) are looked upon as problems, although they may be only symptoms of more profound difficulties.

●Preconceived ideas about the causes of problems. Some managers and consultants feel that, thanks to their experience, they know pretty well what the causes “must” be and that analysing facts cannot reveal anything new.

●Looking at problems from one technical viewpoint only. This happens frequently if the diagnosis is made by a manager or a consultant with a strong background and bias in one technical area (e.g. engineering, accounting, behavioural science) and if the interdisciplinary nature of management problems is disregarded.

●Ignoring how the problem is perceived in various parts of the organization. For example, the consultant may accept the definition made by top management, without finding out how the problem is seen by the lower management echelons.

●Wrong appreciation of the urgency of a problem. Appreciation of the urgency of a problem may be influenced by emotions, resistance to change, incorrect conclusions from diagnosis, and other factors.

●Unfinished problem diagnosis. Owing to time and cost constraints or for other reasons, the consultant may be tempted to conclude diagnostic work prematurely. He or she may miss further problems and opportunities that may be directly related to the original issue presented by the client.

●Failure to clarify the focus purpose. The purpose is vaguely defined and the consultant wastes time and energy by looking into many issues that will eventually be ignored. He or she works on the wrong problem or on totally unrealistic proposals.

methodology of the exercise will have to be adapted to the nature and complexity of the problem, and the profile and attitude of the client. Diagnosis consists of seeking answers to questions in the areas reviewed above: the purposes pursued; the nature and characteristics of the problem itself; the causes of the problem; other significant relationships; the client’s potential to solve the problem; and possible directions of further action. The exercise starts with information obtained through the preliminary problem diagnosis during the entry phase, and with assumptions and hypotheses that the consultant develops at the beginning in collaboration with the client.

In planning the diagnostic phase it is essential to determine the degree and form of the client’s involvement in each activity. If the process-consulting mode

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