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Visual Thinking for
Business Analysis
Practitioners
Kenneth McGrath
Senior Business Analyst and Project
Management Consultant
Ottawa, Canada
Visual Thinking

Theory and Examples
What is Visual Thinking?

   Simple: It’s thinking in pictures.




   Visual thinking allows us to solve
    complex problems, especially once we
    know more about how visual thinking
    works…
Why Visual?

   Visual Modality & Learning
     The visual modality is our primary
      source of information.
     Visual images are easily stored and
      retrieved from our long term memory.
     We can associate visual images and
      their meaning with messages in other
      contexts.
        • Example: Hypnotic Writing for Sales
Hypnotic Writing for Sales
Opening
     1.    Stopper: Get Attention > Merge to Trance
     2.    Reel Them In: Promise/Benefit/Curiosity
     3.    Build Desire: Emotion, Paint Picture, Tell Story
Pitching
     4.    Give Reasons: Logic, Explain/Develop
     5.    Dialogue: Rebut Objections (Mind Reading)
     6.    Prove It: Statistics, Testimonials
Closing
     7.    Guarantee: Risk Reversal
     8.    Action: Why Buy Now?
     9.    Reminder/P.S.: Pain/Pleasure, Added Gifts
Hypnotic Writing for Sales
Opening



Pitching
           A+B=C   ?       !
Closing
                   Act          P.S.
                         Now!
            100%                       +
Hypnotic Writing Form

                 Uses the visual icons
                  to depict what should
                  be written.

                 Is way more intuitive to
                  use.

                 Visuals aren’t even
                  needed after a while as
                  they become easily
                  memorized.
Textually-biased Learning

 We learn to speak (informally)
 We learn to read and write (formally)



   THEN the remainder of our formal
    learning is largely based upon “text”
    (reading and writing)
Text: How efficient?

   Reading (Within a language context):
     Decode written symbols to sounds
     Process sounds within grammar logic
     Derive semantic meaning


       example:
        • r-a-b-b-i-t = rab-bit
        • rabbit = noun, describes furry mammal
          with buck teeth, long ears
Text: How efficient?

             Decode written symbols to
rabbit    
              sounds
              Process sounds within
              grammar logic
             Derive semantic meaning

                        vs.

             Derive visual meaning
Text: How effective?

 We don’t know much about the
  particular rabbit that the author had in
  mind without more words to describe
  the rabbit.
 From our individual experience of
  various types and forms of “rabbit” we
  are left only with a sense of “rabbit-
  ness”
                    VS.
Text: How effective?
The author uses a picture to illustrate the “rabbit”…




Hence the expression “A picture is worth a thousand words.”
Visuals > Long Term Memory

   Because we can only encode 7 (+ or – 2)
    pieces of information in short term memory
    at a time, how to people remember things
    that are made up more than 9 parts?
Visuals > Long Term Memory

   Answer: Use visual patterns and/or images.

   For example my friend “Wojie” in Poland is
    memorizing Pi to well over 10,000 digits in
    order to set a world record.

   His technique? Create images associated
    with sequential number patterns.
Visual Thinking in Four Steps
                              x
  1.   Look    3.   Imagine




  2.   See     4.   Show      x
Look = Collecting + Screening

      We do these steps automatically:

  1.   Orientation

  2.   Position
                        ?
  3.   Identification

  4.   Direction
Look = Collecting + Screening

We also automatically perceive:

Pr    ox im ity
Color
Shape
Shading
See = Selecting + Clumping

        Who or What?
        How much?

        When?

        Where?

        How?

        Why?
Imagine = Seeing what isn’t there.

x        Simple or Elaborate?

          Quality or Quantity?

         Vision or Execution?

       Individual or Comparison?

     Delta (Change) or Status Quo?
Show = Making it all Clear

 x
    Select Appropriate Framework

    Use the Framework to Create our Picture

    Present and Explain our Picture
What if I can’t Draw?!

   If you can draw the following, you can
    practice visual thinking:
What tools can I use?

 Wall chart paper
 Physical Whiteboard


 Tablet or Electronic whiteboard
 MS-PowerPoint
 MS-Paint
 MS-Visio
 Adobe Illustrator or Photoshop
Six Types of Problems

     Type        Image                      Description
                                        Things, people, roles…
Who or What?                 Portrait


                                        Measuring, counting…
How Much?         1st Qtr
                  2nd Qtr
                              Chart
                  3rd Qtr
                  4th Qtr




                                        Scheduling, timing…
When?                       Timeline
Six Types of Problems

       Type           Image             Description
                                    Direction, how things fit
Where?                        Map   together…


                                    Logic flow, how things
How?                   Flowchart    influence one another…


                                    Rationale, the big
Why?          y
                        Multiple    picture…
                        Variable
                  x         Plot
S.Q.U.I.D.
There are 5 x 2 ways of drawing each type of problem:
Visual Thinking Codex

   In Dan Roam’s book “Back of the
    Napkin” he combines the 6 types of
    problems with the 5x2 ways of
    drawing each of them to create what
    he calls the Visual Thinking Codex.
       Hand-out is also available free of
        charge on-line at
        http://www.thebackofthenapkin.com/tools.php
Visual Thinking

Applied to Business Analysis
Visual Thinking Steps as Business Analysis


   Look – Data Gathering for a “Problem”


   See – Data Analysis of Current (AS IS) State


   Imagine – Brainstorming of Future (TO BE) State


   Show – Depiction of a “Solution”
Strategic (Portfolio Level)
Business Analysis
 Client comes with a problem
 Client wants software developed to
  solve the problem (has the solution in
  mind)
 Client wants this a.s.a.p.

 Client is one of many within the
  enterprise
 Which client’s problem is fixed first?
Analyze Business Value of Projects

   This is a “how much” problem…
       How much business value comes with
        each project?
   Answer to question:
       Priority = Ordination from highest to
        lowest business value
Analyze Business Value of Projects - Look


   First step is to gather all available
    information about:
     The list of projects
     How business value is measured
     Their business value

   Let’s say that we do this and we find
    the following…
Analyze Business Value of Projects - See


   Project backlog indicated three:
     iPhone App Project – Marketing Dept.
     User Interface Re-Design – Web Channel
     New Features for Main Product – Operations

 Each group says their project is “priority #1”.
 The documentation for each project shows
  missing “business value” metrics.
Analyze Business Value of Projects - See
       So we build a chart to triage the data…
       We ask the project leads to estimate the amount of return
       business (a major corporate KPI) they expect to generate.
   iPhone App Project –                     KPI = 20% in return
    Marketing Dept.                           business

   User Interface Re-Design –
                                             KPI = 10% in return
    Web Channel
                                              business

   New Features for Main
    Product – Operations                     KPI = 25 % in
                                              return business
Analyze Business Value of Projects - Imagine
          The priority list seems clear however we notice a pattern. Both
          marketing an web channel are doing UI type projects…


1.   New Features for Main                      KPI = 25 % in
     Product – Operations                        return business

2.   iPhone App Project –                       KPI = 20% in return
     Marketing Dept.                             business

3.   User Interface Re-Design –                 KPI = 10% in return
     Web Channel                                 business
Analyze Business Value of Projects - Imagine
         So we put a meeting together to examine their projects more
         closely…

   iPhone App Project                        Goal is to provide
                                               more immediate
                                               support to product
                                               users



   User Interface Re-Design                  Goal is to enhance
                                               product users
                                               support experience
Analyze Business Value of Projects - Imagine
        Brainstorming with Marketing and Web Channel some more we
        discover an even BETTER solution…


   User Interface Re-Design will
    create the main interface for the
    iPhone App Project

   The groups estimate a 40%
    increase in return business
    since the new enhancements
    will be available to more users.

   Therefore, the combined project
    is priority #1.
Analyze Business Value of Projects - Show

Now we can illustrate the rationale for combining two projects that will bring
the company more business value prior to releasing the upgrade…




              +              =                           vs.


KPI=20%           KPI=10%         KPI=40%                           KPI=25%
Enterprise Analysis

   What model of the enterprise will
    show us the big picture so that, as we
    make changes to how we do
    business, we can consider the
    potential impacts of those changes?
Enterprise Analysis - BMC
Enterprise Analysis
Partners    Resources         Offer       Relationships Customers




              Activities                   Channels




    Cost Structures         Business          Revenue Streams
                           Model Canvas

                           by Dr. Alex
                           Osterwalder
Enterprise Analysis
           CURRENT STATE (AS IS)                                               FUTURE STATE (TO BE)
Partners    Resources       Offer       Relationships   Customers   Partners    Resources       Offer       Relationships   Customers




             Activities                 Channels                                 Activities                 Channels




   Cost Structures                          Revenue Streams            Cost Structures                          Revenue Streams
                          Business                                                            Business
                           Model                                                               Model
                           Canvas                                                              Canvas

                          by Dr. Alex                                                         by Dr. Alex
                          Osterwalder                                                         Osterwalder
Strategy Maps

   How do we make the changes needed
    take us from current state (AS IS) to
    future state (TO BE)?
     Look – Consider the DELTAs
     See – Consider the Impacts
     Imagine – Brainstorm Benefits/Risks
     Show – Strategy Maps
Strategy Map - Look




          Deltas
Strategy Map - See

                 How might changes
                  in any area of the
                  business affect
                  others?

                 What potential
                  benefits and/or risks
                  should be
                  considered?
Strategy Map – Imagine
    This could really benefit
       sales as well if we
     educate our partners.

                                          If we also change
                                           automate billing
                                             we’ll get more
                                                clients!




                                We’ve identified three new
                                projects that should
       We’ll need to            accompany our initiative.
      alert technical
         support.               Now we can draw strategy
                                maps to illustrate our plan.
Strategy Map - Show

                         Product Enhancement Project


Pictures
can help                                           Alert Support        Press
                Automate Billing
us                                                                     Release
identify
gaps

            Create Training Material       Partner Education Project



           January 1st                     April 1st                   Oct 1st
Breaking Down the Question

   Sometimes the QUESTION needs to be
    broken down in order to engage the best
    drawings to solve the problem.

Example:
       What does the future of gaming look like?
Breaking Down the Question

    What does the future gaming look like?

    Really this involves a few key questions:
    1.   What does gaming look like today?
    2.   How does one determine the future of
         gaming?
Breaking Down the Question

1.   What does              Look for all data to
     gaming look like        draw a portrait of
     today?                  the gaming world.

2.   How does one           Look for all data to
     determine the           suggest how one
     future of gaming?       determines the
                             future of the
                             gaming industry.
Breaking Down the Question
     Data portraying the gaming world
      depicts sales by game
      environment.

     Experts are future-gazing based
      upon history/trends and
      convergence in technologies.
Breaking Down the Question

x         Data portraying the gaming world
           depicts sales (how much) by
           game environment.

          Experts are future-gazing based
           upon history/trends (portraits in
           timeline) and convergence (a
           logical flow) in technologies.
Breaking Down the Question

x

                ?                          ?
       Data portraying the       Experts are future-
        gaming world depicts       gazing based upon
        sales (how much) by        history/trends (portraits
        game environment.          in timeline) and
                                   convergence (a logical
                                   flow) in technologies.
Breaking Down the Question




           ?
Resources

                        by Dan Roam

            by Dr. Alex Osterwalder

                  by David Sibbet
The End

Thank you for your kind attention.

Questions and/or follow-up may be
directed to kmcgrath@edc.ca or
kenneth.mcgrath@hotmail.com

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Visual Thinking

  • 1. Visual Thinking for Business Analysis Practitioners Kenneth McGrath Senior Business Analyst and Project Management Consultant Ottawa, Canada
  • 3. What is Visual Thinking?  Simple: It’s thinking in pictures.  Visual thinking allows us to solve complex problems, especially once we know more about how visual thinking works…
  • 4. Why Visual?  Visual Modality & Learning  The visual modality is our primary source of information.  Visual images are easily stored and retrieved from our long term memory.  We can associate visual images and their meaning with messages in other contexts. • Example: Hypnotic Writing for Sales
  • 5. Hypnotic Writing for Sales Opening 1. Stopper: Get Attention > Merge to Trance 2. Reel Them In: Promise/Benefit/Curiosity 3. Build Desire: Emotion, Paint Picture, Tell Story Pitching 4. Give Reasons: Logic, Explain/Develop 5. Dialogue: Rebut Objections (Mind Reading) 6. Prove It: Statistics, Testimonials Closing 7. Guarantee: Risk Reversal 8. Action: Why Buy Now? 9. Reminder/P.S.: Pain/Pleasure, Added Gifts
  • 6. Hypnotic Writing for Sales Opening Pitching A+B=C ? ! Closing Act P.S. Now! 100% +
  • 7. Hypnotic Writing Form  Uses the visual icons to depict what should be written.  Is way more intuitive to use.  Visuals aren’t even needed after a while as they become easily memorized.
  • 8. Textually-biased Learning  We learn to speak (informally)  We learn to read and write (formally)  THEN the remainder of our formal learning is largely based upon “text” (reading and writing)
  • 9. Text: How efficient?  Reading (Within a language context):  Decode written symbols to sounds  Process sounds within grammar logic  Derive semantic meaning  example: • r-a-b-b-i-t = rab-bit • rabbit = noun, describes furry mammal with buck teeth, long ears
  • 10. Text: How efficient?  Decode written symbols to rabbit  sounds Process sounds within grammar logic  Derive semantic meaning vs.  Derive visual meaning
  • 11. Text: How effective?  We don’t know much about the particular rabbit that the author had in mind without more words to describe the rabbit.  From our individual experience of various types and forms of “rabbit” we are left only with a sense of “rabbit- ness” VS.
  • 12. Text: How effective? The author uses a picture to illustrate the “rabbit”… Hence the expression “A picture is worth a thousand words.”
  • 13. Visuals > Long Term Memory  Because we can only encode 7 (+ or – 2) pieces of information in short term memory at a time, how to people remember things that are made up more than 9 parts?
  • 14. Visuals > Long Term Memory  Answer: Use visual patterns and/or images.  For example my friend “Wojie” in Poland is memorizing Pi to well over 10,000 digits in order to set a world record.  His technique? Create images associated with sequential number patterns.
  • 15. Visual Thinking in Four Steps x 1. Look 3. Imagine 2. See 4. Show x
  • 16. Look = Collecting + Screening  We do these steps automatically: 1. Orientation 2. Position ? 3. Identification 4. Direction
  • 17. Look = Collecting + Screening We also automatically perceive: Pr ox im ity Color Shape Shading
  • 18. See = Selecting + Clumping  Who or What?  How much?  When?  Where?  How?  Why?
  • 19. Imagine = Seeing what isn’t there. x Simple or Elaborate? Quality or Quantity? Vision or Execution? Individual or Comparison? Delta (Change) or Status Quo?
  • 20. Show = Making it all Clear x  Select Appropriate Framework  Use the Framework to Create our Picture  Present and Explain our Picture
  • 21. What if I can’t Draw?!  If you can draw the following, you can practice visual thinking:
  • 22. What tools can I use?  Wall chart paper  Physical Whiteboard  Tablet or Electronic whiteboard  MS-PowerPoint  MS-Paint  MS-Visio  Adobe Illustrator or Photoshop
  • 23. Six Types of Problems Type Image Description Things, people, roles… Who or What? Portrait Measuring, counting… How Much? 1st Qtr 2nd Qtr Chart 3rd Qtr 4th Qtr Scheduling, timing… When? Timeline
  • 24. Six Types of Problems Type Image Description Direction, how things fit Where? Map together… Logic flow, how things How? Flowchart influence one another… Rationale, the big Why? y Multiple picture… Variable x Plot
  • 25. S.Q.U.I.D. There are 5 x 2 ways of drawing each type of problem:
  • 26. Visual Thinking Codex  In Dan Roam’s book “Back of the Napkin” he combines the 6 types of problems with the 5x2 ways of drawing each of them to create what he calls the Visual Thinking Codex.  Hand-out is also available free of charge on-line at http://www.thebackofthenapkin.com/tools.php
  • 27. Visual Thinking Applied to Business Analysis
  • 28. Visual Thinking Steps as Business Analysis  Look – Data Gathering for a “Problem”  See – Data Analysis of Current (AS IS) State  Imagine – Brainstorming of Future (TO BE) State  Show – Depiction of a “Solution”
  • 29. Strategic (Portfolio Level) Business Analysis  Client comes with a problem  Client wants software developed to solve the problem (has the solution in mind)  Client wants this a.s.a.p.  Client is one of many within the enterprise  Which client’s problem is fixed first?
  • 30. Analyze Business Value of Projects  This is a “how much” problem…  How much business value comes with each project?  Answer to question:  Priority = Ordination from highest to lowest business value
  • 31. Analyze Business Value of Projects - Look  First step is to gather all available information about:  The list of projects  How business value is measured  Their business value  Let’s say that we do this and we find the following…
  • 32. Analyze Business Value of Projects - See  Project backlog indicated three:  iPhone App Project – Marketing Dept.  User Interface Re-Design – Web Channel  New Features for Main Product – Operations  Each group says their project is “priority #1”.  The documentation for each project shows missing “business value” metrics.
  • 33. Analyze Business Value of Projects - See So we build a chart to triage the data… We ask the project leads to estimate the amount of return business (a major corporate KPI) they expect to generate.  iPhone App Project –  KPI = 20% in return Marketing Dept. business  User Interface Re-Design –  KPI = 10% in return Web Channel business  New Features for Main Product – Operations  KPI = 25 % in return business
  • 34. Analyze Business Value of Projects - Imagine The priority list seems clear however we notice a pattern. Both marketing an web channel are doing UI type projects… 1. New Features for Main  KPI = 25 % in Product – Operations return business 2. iPhone App Project –  KPI = 20% in return Marketing Dept. business 3. User Interface Re-Design –  KPI = 10% in return Web Channel business
  • 35. Analyze Business Value of Projects - Imagine So we put a meeting together to examine their projects more closely…  iPhone App Project  Goal is to provide more immediate support to product users  User Interface Re-Design  Goal is to enhance product users support experience
  • 36. Analyze Business Value of Projects - Imagine Brainstorming with Marketing and Web Channel some more we discover an even BETTER solution…  User Interface Re-Design will create the main interface for the iPhone App Project  The groups estimate a 40% increase in return business since the new enhancements will be available to more users.  Therefore, the combined project is priority #1.
  • 37. Analyze Business Value of Projects - Show Now we can illustrate the rationale for combining two projects that will bring the company more business value prior to releasing the upgrade… + = vs. KPI=20% KPI=10% KPI=40% KPI=25%
  • 38. Enterprise Analysis  What model of the enterprise will show us the big picture so that, as we make changes to how we do business, we can consider the potential impacts of those changes?
  • 40. Enterprise Analysis Partners Resources Offer Relationships Customers Activities Channels Cost Structures Business Revenue Streams Model Canvas by Dr. Alex Osterwalder
  • 41. Enterprise Analysis CURRENT STATE (AS IS) FUTURE STATE (TO BE) Partners Resources Offer Relationships Customers Partners Resources Offer Relationships Customers Activities Channels Activities Channels Cost Structures Revenue Streams Cost Structures Revenue Streams Business Business Model Model Canvas Canvas by Dr. Alex by Dr. Alex Osterwalder Osterwalder
  • 42. Strategy Maps  How do we make the changes needed take us from current state (AS IS) to future state (TO BE)?  Look – Consider the DELTAs  See – Consider the Impacts  Imagine – Brainstorm Benefits/Risks  Show – Strategy Maps
  • 43. Strategy Map - Look Deltas
  • 44. Strategy Map - See  How might changes in any area of the business affect others?  What potential benefits and/or risks should be considered?
  • 45. Strategy Map – Imagine This could really benefit sales as well if we educate our partners. If we also change automate billing we’ll get more clients! We’ve identified three new projects that should We’ll need to accompany our initiative. alert technical support. Now we can draw strategy maps to illustrate our plan.
  • 46. Strategy Map - Show Product Enhancement Project Pictures can help Alert Support Press Automate Billing us Release identify gaps Create Training Material Partner Education Project January 1st April 1st Oct 1st
  • 47. Breaking Down the Question  Sometimes the QUESTION needs to be broken down in order to engage the best drawings to solve the problem. Example:  What does the future of gaming look like?
  • 48. Breaking Down the Question  What does the future gaming look like?  Really this involves a few key questions: 1. What does gaming look like today? 2. How does one determine the future of gaming?
  • 49. Breaking Down the Question 1. What does  Look for all data to gaming look like draw a portrait of today? the gaming world. 2. How does one  Look for all data to determine the suggest how one future of gaming? determines the future of the gaming industry.
  • 50. Breaking Down the Question  Data portraying the gaming world depicts sales by game environment.  Experts are future-gazing based upon history/trends and convergence in technologies.
  • 51. Breaking Down the Question x  Data portraying the gaming world depicts sales (how much) by game environment.  Experts are future-gazing based upon history/trends (portraits in timeline) and convergence (a logical flow) in technologies.
  • 52. Breaking Down the Question x ? ?  Data portraying the  Experts are future- gaming world depicts gazing based upon sales (how much) by history/trends (portraits game environment. in timeline) and convergence (a logical flow) in technologies.
  • 53. Breaking Down the Question ?
  • 54. Resources by Dan Roam by Dr. Alex Osterwalder by David Sibbet
  • 55. The End Thank you for your kind attention. Questions and/or follow-up may be directed to kmcgrath@edc.ca or kenneth.mcgrath@hotmail.com