LECTURESFoundational Thinking12

Supplementary course

Analytical Skill

A toolbox of analysis for decision-making

Based on Masatake Ushiro's "The Technique of Analysis for Decision-Making." Use the five frames — 80/20, sensitivity analysis, MECE comparison, gap analysis, and process-leak analysis — across Ph.1 / Ph.3 / Ph.4.

Analytical Skill

─ ARTICLE COVER

Foundational ThinkingSupplementary course

§I ─ POSITION

Where this course fits

A supplementary course of the DX-project curriculum (a cross-cutting toolbox). A set of frames that activate in every setting of data analysis, issue decomposition, and TO-BE evaluation.

§II ─ TAKEAWAYS

What you will learn

  1. 01

    Use the five analysis frames appropriately to decide from both quantitative and qualitative sides

  2. 02

    Judge the activation trigger (which frame to use in which setting)

  3. 03

    Escape the state of "feeling like you've analyzed" and produce implications too

§III ─ EXCERPT

Excerpt from the course

01

Quick reference of activation triggers

Memorize the triggers — "when you hear this, use this frame" — and you can activate them on the spot in a discussion.

When you hear thisFrame to activate
"Too many SKUs to keep up with"The 80/20 rule
"Multiple moves to make and torn on priority"Sensitivity analysis
"Want to evaluate multiple options from many angles"MECE comparison
"Don't understand the reason for the gap from the industry average"Gap analysis
"Can't see the cause from the result"Process / leak analysis

02

Card A: The 80/20 rule

The basis for narrowing the target of concentrated investment and tidying up the lower tier. INPUT: a list of targets and a metric. OUTPUT: a three-rank split of top 20% / middle / bottom, plus a share table. Pitfall: cutting on one axis (amount only) makes you overlook strategic items. Don't instantly decide to "scrap the whole lower tier" (evaluate the impact after scrapping separately).

03

Card B: Sensitivity analysis

Evaluate multiple moves side by side and decide priority. INPUT: candidate moves (3–5) with their improvement target, improvement range, and difficulty. OUTPUT: a summary table of improvement range × impact × difficulty. Score it as "impact ÷ difficulty." Pitfall: looking only at impact and ignoring difficulty / writing the improvement range as a wished-for value.

04

Card C: MECE comparison

Evaluate multiple options without omission. INPUT: a list of comparison targets. OUTPUT: a MECE-lens × target matrix. Derive the lenses by asking "what do we look at to decide?" three times. Pitfall: skewed lenses (choosing on price and lead time only) / starting to build the table while skipping MECE verification.

05

Card D: Gap analysis

Structure the difference between ideal and current. Decompose the gap from the industry average, competitors, or your own targets into elements to pinpoint the cause. Example: gross margin is 5pt below the industry average → decompose into the difference in raw-material ratio / the difference in SG&A ratio / the difference in price pass-through rate.

06

Card E: Process / leak analysis

When you can't see the cause from the result, look at the yield per step. Example: measure counts at each step of order → shipment → revenue recognition to pinpoint where the leak is. Note both the "leak rate" and the "reason for the leak" for each step.

07

Where gap analysis shines: cutting away "unfillable gaps"

Gap analysis comes into its own when you MECE-decompose the gap from the industry average or a leading company by factor and decide "where to concentrate your moves." In the classic ¥45-billion gap decomposition from Masatake Ushiro's "The Technique of Analysis," the profit gap between one's own company (Company A) and a leading company (Company B) was split into five factors.

FactorContributionMove
Difference in revenue (scale)¥15B✗ Can't be changed in the short term
Overhead ratio (organization)¥8B
Difference in selling price (pricing)¥12B
Difference in manufacturing cost (process)¥6B
Difference in admin cost (indirect)¥4B

08

The strength of being able to decide "scale can't be filled"

The value of the decomposition above lies in being able to decide: "the scale gap can't be filled, but the other four factors (worth ¥30B) have moves." Act on a measure seeing only "there's a gap from the industry average" without gap analysis, and you'll spend time on hard-to-realize moves like "scaling up." It's MECE decomposition that makes the decision to cut things away possible.

09

The biggest trap in supplier comparison

When designing lenses in a MECE comparison, the most common failure is lining things up on "price and lead time only." Price fluctuates, but quality can't be brought back. For a supplier comparison, the starting point is to MECE-design on five lenses: price / quality / lead-time stability / BCP / substitutability. "Deciding on price alone and having one supplier collapse" is a judgment error at the requirements-definition level.

10

A classic of process analysis: the pigeons of Hibiya Park

Looking at "why did the pigeons increase?" from the result alone tells you nothing. But trace the steps in sequence — egg-laying → hatching → chick survival → adulthood → reaching breeding age — and look at the rate at each stage, and you can pinpoint which stage's rate rose. It's the same in operations. Measure the counts (and dwell times) at each step of order → confirmation → allocation → shipment → acceptance → billing → payment, and "where it's leaking / where it's clogged" becomes visible.

─── Continue in the download edition ───

§∞ ─ DOWNLOAD

Get the full materials, exercises and answers
in the download edition.

─ EXERCISE

Exercises Q1–Q5 plus a 90-minute practical test (Marumi Baking). With a 4×4 rubric, you can grade whether your analysis "produces implications." Each card × hands-on exercise is built using the Azika Foods case, so you can apply it to your own work the day after the training.

Lecture slides

Every slide of the course

Cheat sheet

Quick reference for the field

Exercises

With answers and grading

Advanced / test

Hands-on plus rubric

INCLUDED PDFS ─ 7files

IT Consulting Guidebook | A Systematic IT Consulting Method Across 18 Lessons, from IR Analysis to PM | IPLoT Inc.