The document discusses structured thinking approaches for problem solving. It provides an example of applying the SCQR (Situation, Complication, Question, Resolution) framework to analyze Blockbuster Video's strategic challenges in 1999 as disruptive technologies emerged. The situation statement establishes Blockbuster as the leading video rental retailer. The complication highlights mixed financial results and new technologies. The question asks if Blockbuster should shift investments to new technologies. The resolution hypothesizes that Blockbuster should focus on building efficient technology-enabled channels rather than growing brick-and-mortar stores.

1. Note: This document was used in support of a live discussion. As such, it does not necessarily
express the entirety of that discussion nor the relative emphasis of topics therein.
What’s the Big Think?
Structured Thinking for Impact
Andrew Feinberg
Chief Strategy Officer
Consumer Financial Protection Bureau

2. • Peter Orszag (Fmr. OMB Director)
• Karen Mills (SBA Administrator)
• Susan Rice (National Security Adviser, Fmr. UN Ambassador)
• R. James Woolsey, Jr (Fmr. CIA Director)
• Mitt Romney (Fmr. Governor of Massachusetts)
• Meg Whitman (eBay CEO, Senate Candidate)
• Jeff Immelt (CEO, GE)
• William Hague (Foreign Secretary, United Kingdom)
• Jim Cook (Founder, Boston Beer Works)
• Benjamin Netanyahu (Prime Minister, Israel)
• John Legend (Musician)
• And lots of other corporate CEOs
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All were indoctrinated into the problem-solving methods you are
about to learn
What Do the Following People Have in Common?
2

3. Why Structured Thinking Matters
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Move from… …Towards
• Rigorous processes• Haphazard approaches
• Efficient and targeted
effort
• Spinning your wheels
• Clearly defined questions• Opaque and undefined
problems
• Generating deep and
relevant insight
• Answering the wrong
question

4. Work “Smart”
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q Money - 20% of people have 80% of
the wealth
q Crime - 20% of criminals commit
80% of crimes
q Energy - 20% of population uses
80% of energy
q Competition - 20% of suppliers have
80% of market share
q Carpet - 20% gets 80% wear and tear
The “80 / 20 Rule”—what it is and where it comes from…
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Efficient Trying to be perfect
Benefit for impact
Collective responsibility
to avoid

5. A Basic Approach…
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S
Situation
C
Complication
Q
Question
R
Resolution

6. Gain the Necessary Context
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S
What is a “Situation Statement”?
• Quick background on the issue in question—
the status quo
• Non-controversial (gets the collective in an
‘agreeing’ frame of mind)
• Can be compliment before tougher message
• The foundation, or the starting point, for the
story
Case Study: Blockbuster Video
Situation
• The year is 1999
• Since entering the movie rental
business in 1985, Blockbuster
has become the world’s largest
retailer of home movie rental
market, with:
q 7,200 stores around the
world
q Nearly 100% recognition
with “active renters” in the
U.S.
Tip of the Trade
• “Just the facts ma’am, just the facts”
Sergeant Joe Friday, Dragnet

7. Case Study: Blockbuster Video
• Blockbuster is currently the world’s
leading retailer of rental home
movies…
Complication
• Mixed financial results:
q Net income & operating
income negative ‘97-’99
q EBITDA positive
• Disruptive technologies have
emerged:
q Increasing DVD adoption
q Increased broadband
connectivity
q Emergence of DVRs
S
Frame the Problem
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C
Activity:
Take 2 minutes to collaborate
with your neighbor and
develop a list of sample
complications…
Tip of the Trade
• The framing should make the connection
between the situation and question
seamless…
“So What”? Why does it matter?
• Ask yourself and your colleagues, “in what
way is the current situation causing
complications?” or “What is the
problem we are trying to solve?
• Key change in the status quo that creates
the need for problem-solving
• Can be a positive (e.g., new opportunity) or
negative change (e.g., a new threat)

8. Case Study: Blockbuster Video
• Blockbuster is currently the world’s
leading retailer of rental home
movies…
• The company has experienced mixed
financial results in an environment of
emerging disruptive technologies…
Question
• Are these technological changes
directly impacting financial
results?
• Should Blockbuster direct
investments away from brick
and mortar stores and towards
new technologies?
S
C
Activity:
Take 2 minutes to collaborate
with your neighbor and craft a
question statement
Ensure Relevance
• Ensure that the question being defined is
the most relevant question to the situation
and complication laid out in previous steps
• Make the question specific
• Focus on what information the decision-
maker needs to move forward
Ask the Right Question
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Q
Tip of the Trade
• Don’t give in to your in-coming bias for a
particular action—leverage the framework
to expand your thinking

9. Question Context
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Q
Question to be resolved
• Specific aims / objectives that will solve the problem
Decision makers
• What audience are you addressing?
• Who needs to decide / act?
Criteria and measure for
success
• How would the decision maker judge a
successful problem solving effort?
Key forces acting on decision
makers
• What are their concerns / issues around the
decision
Timeframe for resolution
• How quickly is the answer needed?
Boundaries and constraints
• What is not under consideration or off limits
Accuracy
• What level of accuracy is needed
9

10. Question Context: Blockbuster
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Q
Question to be resolved
• Should Blockbuster direct investments away from brick and mortar stores and towards new
technologies?
Decision makers
• Global management team and Board of
Directors
• Chief Strategy Officer
• Chief Technology Officer
Criteria and measure for
success
• Clear and compelling analysis that includes
an analysis of current state of industry,
future trends, and cash flow projections for
proposed investment
Key forces acting on decision
makers
• Concerns include long-term financial viability
and quarterly earnings pressure
• Analysis must clearly identify short- and long-
term costs and benefits
Timeframe for resolution
• An initial analysis must be completed in
time for the next Board meeting 4 weeks
from today
Boundaries and constraints
• Company will not be able to exit VHS market
for 18 months due to existing studio contracts
Accuracy
• “Beyond a reasonable doubt”
10

11. Case Study: Blockbuster Video
• Blockbuster is currently the world’s
leading retailer of rental home
movies…
• The company has experienced mixed
financial results in an environment of
emerging disruptive technologies…
• Should Blockbuster direct
investments towards new
technologies?
Resolution (Hypothesis)
• Blockbuster should shift focus from
growing, expensive, brick & mortar
stores to building new, more efficient
technology-enabled channels
S
C
Q
Activity:
Take 2 minutes to work with your
neighbor and craft a resolution
statement (or hypothesis)
Articulate the Resolution
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R
Don’t just guess…
• Review all previous experience for analogs
that might inform your hypothesis; analogs
can come from:
ð Your personal experience
ð Prior Bureau work
ð Other government agencies
• If necessary, contact subject matter experts
outside of your direct network
• Test your hypothesis with colleagues
before conducting deep research and
analysis
Tip of the Trade
• Ensure that your hypothesis is “testable”;
data should exist to prove or disprove your
theory
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12. • Use 80 / 20 Thinking
ð Avoid “boiling the ocean” or
“polishing dirt”
ð Acquire just enough data to
sufficiently prove your point beyond a
“reasonable doubt”
• Collaborate: share good ideas with the
team and work together towards
solutions
• Anticipate Obstacles… don’t do a
Titanic
• Use experts as data / strategy sources
• Leverage your colleagues!!! Tap the
creativity around you; in many cases
they have thought through the problem
you are trying to solve
Best Practices for Analysis
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