LECTURESConsulting Skills05

Ph.3 Structuring the Issues

Issue Tree

Structure issues with point decomposition + hypothesis testing

The skill of not leaving issues as a flat list after discovery, but structuring them all the way down to root causes with an issue tree. Following the book "The Complete Book of Strategic Thinking," learn to use it distinctly from related logic trees such as the Why tree.

Issue Tree

─ ARTICLE COVER

Consulting SkillsPh.3 Structuring the Issues

§I ─ POSITION

Where this course fits

Ph.3 "Structuring the Issues." Decompose the symptoms gathered in Ph.2 down to addressable root causes. Includes an advanced section, a practical guide to investigation trees, and a quick reference of tree patterns.

§II ─ TAKEAWAYS

What you will learn

  1. 01

    Speak to the difference between an issue tree and Why / How / investigation trees, and use each appropriately

  2. 02

    Map onto typical tree patterns by operational domain and run hypothesis testing

  3. 03

    Structure things while distinguishing "point," "fact," and "implication"

§III ─ EXCERPT

Excerpt from the course

01

A tree isn't just one kind

It's tempting to lump everything under "tree," but the issue tree that decomposes points, the Why tree that traces causes, the How tree that exhausts solutions, and the investigation tree that gathers facts are different in both purpose and how they're written. Mix them and your thinking stalls.

  • Issue tree: decompose points (questions answerable Yes/No)
  • Why tree: trace causes by repeatedly asking "why?"
  • How tree: exhaustively expand solutions
  • Investigation tree: gather facts and fill it in

02

The 3 steps of building an issue tree

Build in the order: define the problem → layer the "why?" → ground it in facts.

  • Step 1: Define the problem ("what" / "what's happening" / "why it's a problem" + numbers and facts)
  • Step 2: Dig down 2–3 layers of "why?" (constantly check that no solution has crept in)
  • Step 3: Ground it in facts (put "X times a month," "X hours," "X%" on each node)

03

MECE checklist

Questions to ask when checking the elements lined up at the same layer.

LensQuestion
Any omissions?When you sum these elements, do they explain 100% of the issue above?
Any overlaps?Do two elements contain the same content?
Is the granularity consistent?Are things of different levels mixed, like "raw-material cost" and "Mr. Yamada is busy"?
Is the causality correct?Are they truly parallel, or is one the cause of the other?

04

Easy-to-use templates for MECE decomposition

Think up axes from scratch and you'll get stuck. Apply one of these templates instead. Cost-related → by expense item; process-related → by flow order; org-related → by department; unclear → "people, things, money, information."

05

Conversion table for grounding in facts

Convert vague expressions from discovery notes into facts.

Vague expressionQuestionAfter conversion
Ordering work is toughHow many minutes each / how many a month?20 min × 5 suppliers × 12 times/month = 20 hours of manual entry a month
Lots of emergency ordersHow many a month / around what time?2–3 times a month, the chief handles them after 11 p.m.
It's person-dependentHow many people can do that work right now?Only one person, Mr. Yamada, can handle it
Frequent stockoutsHow many a month / which items?2–3 stockouts a month → triggering emergency orders

06

Priority matrix

Place items in four quadrants by importance (impact of solving) × urgency (how fast it worsens if left alone).

High urgencyLow urgency
High importanceTop priority: start nowPlan to start: begin design next sprint
Low importanceDelegate / systematize: assign an owner and handle itDefer: review each quarter

07

Write the leaves as "questions"

It's easy to confuse this with logic trees in general, but in the strategic-thinking style, the leaves of an issue tree are always written as "questions." End them as descriptions of phenomena and no flow of hypothesis testing rides on them.

  • ✗ "Change in sales channels" — a description of a phenomenon (thinking stops)
  • ○ "How are sales channels changing?" — a point (hypothesis testing runs)
  • The leaves of a Why tree are "facts (root causes)," the leaves of a How tree are "moves." Don't mix them

08

Emphasis (the 8:2 rule)

Once you start drawing a tree, you'll want to dig every branch equally deep. That's a time thief. Consciously separate "branches to dig" from "branches not to dig," and pour your time into the branches with the biggest impact. Placing the important axis to the left / top is also about adding visual emphasis.

09

Turn the unknown into executable tasks with an "investigation tree"

Even after MECE decomposition, "don't know" comes up — that's normal. There are two anti-patterns: writing "don't know" and deleting it from the tree (no one follows up), and writing "investigate further" and stopping (what / who / when is unclear). The investigation tree turns "don't know" into an executable task.

  • Always start from an "initial hypothesis." One to three, on a hunch (rough is fine)
  • Don't start the investigation from a blank slate (the No.1 reason "we learned a lot" never leads to a conclusion)
  • Don't aim for 100 points in one shot; build up — 50 today, 60 tomorrow, 90 a week later
  • Make the hypothesis judgeable as YES/NO (so a single fact can evolve it)
─── Continue in the download edition ───

§∞ ─ DOWNLOAD

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

─ EXERCISE

A three-part set of exercise, advanced exercise, and investigation-tree practice exercise. Using Azika Foods' "sales concentration on specific customers" and "gross-margin variance by sales office" as material, you write a tree and verify it. A dedicated practical guide on "how to refine hypotheses in unknown territory" is attached separately.

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 ─ 8files

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