[CU747] Solve business problems
[CU747] Solve business problems
[747.1] Understand business problems and their causes
1.1 Describe ways of recognising when a business problem exists
In most organizations recognition of a business problem typically relies on measures and management reporting of measures against expectations. Usually each performance area measures quality, cost, and speed of service - plus possibly customer satisfaction. If one of these measures starts to vary from expectations then management should investigate the reason and determine if it represents a business problem or possibly the result of some one-time event or temporary glitch.
1.2 Explain how to identify possible causes of business problems
Some sample indicators of a business problem are, decline in profits, customers leaving, no new customers, no new goals, employees leaving or dissatisfied, lack of sales etc. The possible causes could be poor policies and procedures, poor training, poor rewards, poor quality products, price too high, lack of technology, old systems, poor maintenance, etc. In all these situations “Why” is the word to be researched. You need to find out why this problem happened and that will help you identify the causes of the problems. Use flowcharts or histograms to write down the process for analysis.
1.3 Describe ways of analysing business problems
The following is a good method of Analysing a business problem: Analyse and find out what happened, define the problem, Does the problem really exist? Analyse the reason why it happened, How long has this problem persisted? The series of causes that led to this problem, the money and resources that it cost, Other minor problems that led to this major problem, Effect or impact of this problem on the business, Work out possible solutions and methods of reducing this and preventing this from happening in the future and how they will be implemented, Are there any risks involved?
[747.2] Understand techniques for solving business problems
[747.1] Understand business problems and their causes
1.1 Describe ways of recognising when a business problem exists
In most organizations recognition of a business problem typically relies on measures and management reporting of measures against expectations. Usually each performance area measures quality, cost, and speed of service - plus possibly customer satisfaction. If one of these measures starts to vary from expectations then management should investigate the reason and determine if it represents a business problem or possibly the result of some one-time event or temporary glitch.
1.2 Explain how to identify possible causes of business problems
Some sample indicators of a business problem are, decline in profits, customers leaving, no new customers, no new goals, employees leaving or dissatisfied, lack of sales etc. The possible causes could be poor policies and procedures, poor training, poor rewards, poor quality products, price too high, lack of technology, old systems, poor maintenance, etc. In all these situations “Why” is the word to be researched. You need to find out why this problem happened and that will help you identify the causes of the problems. Use flowcharts or histograms to write down the process for analysis.
1.3 Describe ways of analysing business problems
The following is a good method of Analysing a business problem: Analyse and find out what happened, define the problem, Does the problem really exist? Analyse the reason why it happened, How long has this problem persisted? The series of causes that led to this problem, the money and resources that it cost, Other minor problems that led to this major problem, Effect or impact of this problem on the business, Work out possible solutions and methods of reducing this and preventing this from happening in the future and how they will be implemented, Are there any risks involved?
[747.2] Understand techniques for solving business problems