A brief power point on how to determine and define your environment as you frame a solution for a business problem. This is the second in a series titled "How to Solve Business Problems".

1. How to Solve Business Problems, Part 2
How to Scan / Define the Environment
Armin J Cruz
Master in Business Administration
Six Sigma Master Black Belt

2. How to Scan / Define the Environment
• First and foremost, ask yourself the question “Why am I
having an issue?” What is the business problem we need
to solve. Often times this is referred to as the “problem
statement” and a crisply defined problem statement will
aid in the direction for your environmental scan.
6/27/2015Armin J Cruz armin.j.cruz@hotmail.com
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3. How to Scan / Define the Environment
• For internal issues and/or components to the scan, start by
reviewing the current state environment
• What is the scope of the business problem
• What is the business case for change
• What is the problem statement
• What are the existing processes / procedures
6/27/2015Armin J Cruz armin.j.cruz@hotmail.com
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4. How to Scan / Define the Environment
• If you are comparing to your competitors (external
components) consider completing:
• SWOT
• Measure and define your Strengths, Weaknesses, Opportunities,
and Threats
• Benchmarking
6/27/2015Armin J Cruz armin.j.cruz@hotmail.com
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5. How to Scan / Define the Environment
• Complete a Gap Analysis
• Identify the differential between the desired target state
environment and your current state. Separate into like items
(rational subgrouping) and provide the supporting data to
define the components to the gap.
6/27/2015Armin J Cruz armin.j.cruz@hotmail.com
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6. How to Scan / Define the Environment
• What to do after the Gap Analysis:
• STOP. Many teams jump to solution building here. However,
there is an entire methodology to building the solution. If you
continue to define the solution now, before measuring and
acquiring the data you are in essence practicing a “Ready,
Shoot, Aim” approach. Stop, and proceed to step 2, which is
define the avenues of approach.
6/27/2015Armin J Cruz armin.j.cruz@hotmail.com
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7. How to Scan / Define the Environment
• In Summary:
• 1) Determine the reason for change
• 2) Define the internal factors at play
• 3) Define the external factors at play
• Both controllable and non-controllable
• 4) Complete a Gap analysis
• STOP – do not build the solution set. This comes with time.
It requires discipline, but there are many advantages to this.
6/27/2015Armin J Cruz armin.j.cruz@hotmail.com
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8. How to Scan / Define the Environment
• Summary of Steps to Solve a Business Problem
• 1) Define the Environment
• 2) Define your Objective
• 3) Create your Avenues of Approach
• 4) Measure your Success and Create your After-Action
Report
6/27/2015Armin J Cruz armin.j.cruz@hotmail.com
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9. About the Author
• Armin Cruz is an operational excellence practitioner specializing
in the financial sector. Armin has worked for a “big four” bank
for nearly 10 years and conducted turn-around operations in
mortgage sales, mortgage fulfillment, banking center and retail
banking operations as well as process excellence. Currently,
Armin is tasked to drive the process enhancements at the
division/business unit level.
• Armin Cruz has a Master in Business Administration (MBA), as
well as several industry certifications such as Business process
management as well as in Six Sigma. Armin is a LEAN Master
Black Belt (MBB) that is passionate about enhancing and creating
value through cost avoidance and process optimization.
6/27/2015Armin J Cruz armin.j.cruz@hotmail.com
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