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clarify the issue Step 2. You are responsible for ensuring the clarity of the problem 8 STEP 2: DISAGGREGATE THE ISSUES Why use logic trees? 1. To break a problem into ponent parts so that ?Problemsolving work can be divided into intellectually manageable pieces ?Priorities can be set among the parts ?Responsibilities can be allocated to individuals 2. To ensure that the integrity of the problem solving is maintained ?Solving the parts will really solve the problem ?The parts are mutually exclusive and collectively exhaustive (., no overlaps, no gaps) Subissue Subissue Subissue Subissue Subissue Subissue Issues/hypothesis No. 1 Issues/hypothesis No. 2 Issues/hypothesis No. 3 Problem statement Suggestions Describe your approach to the interviewer as you proceed. Don?t assume they know what you are thinking! State your hypotheses as crisply as possible. Only use frameworks if they are appropriate don?t force fit. The ideas are important, not the framework. “I think we should look at the power of buyers and industry petitiveness” is better than “I?d like to apply part of the Porter Five Forces framework”. 9 STEP 3: ELIMINATE ALL NONKEY ISSUES Why ?First step in constant, interactive refinement process ?Focuses your effort on what is most important Do’s Don’ts ?Always ask yourself “so what” . . . but also ask yourself what you might have missed ?Tell the interviewer what you are cutting and why Problem statement Issue 1 Issue 2 Issue 3 10 STEP 4: CONDUCT CRITICAL ANALYSIS Do’s Be hypothesisdriven and end productsoriented “Porpoise” frequently between hypothesis and data Keep the analyses as simple as you can. Be suspicious of huge linear programs and their ilk. Do order of magnitude estimates before you start detailed analyses Use 80/20 and backofenvelope thinking Do not be afraid to be creative Don’ts Do not just “run the numbers”– ask yourself “what question am I try