A logic tree is a systematic tool with a hierarchical structure, which is used to find faults and solve problems. In which all the possible causes of a failure event can be structured, and it can also be known which event has what effect and how much.
As you know, various problems faced in business sector day to day.
It is not enough to follow intuition and conventions to find their causes and find appropriate solutions.
Therefore, it is imperative to analyze things as logically as possible.
And it is imperative to have not only calm judgement, but also explanations that people around you can understand.
Moreover, the way of thinking or the way of reaching the conclusion should be consistent, it is also important.
How would your subordinates feel if they had a boss who judged various problems and came up with solutions based only on their own interests?
Also, if you can’t convince a business partner and they say, “This is how we always solve problems,” what will they think?
Not only will you not be able to communicate in good quality, but you will lack the credibility of the company both inside and outside the company.
In business, sometimes ruthless judgement is required, but more than that, there must be a “sense of satisfaction” in the emotional part.
A tool that can be used to foster a sense of satisfaction within and outside the organization is the “logic tree“.
Using a logic tree, we will divide the problem into “Finding the cause” and “creating the solution”, breaking each into smaller pieces and studying them in depth.
By doing this, you can understand the pros and cons of things, and at the same time, you can understand all the points to consider.
Identify the causes of problem
Whenever we seek to diagnose a problem, it is natural that we need to use special tools. Here we understand what to do to create a special type of visualization tool, the logic tree.
Here we take for example – the general question that applies to every business, such as “Why aren’t sales increasing?”. For such types of problems, we will use logic tree to understand where the root causes can be.
To summarize the situation again, we will use a logic tree to explain how we can show our subordinates about the business and the business partners where the root causes are.
First of all, let us understand, what are the reasons why business sales are not increasing?
Here are three important points:
Whenever doing root analysis one should not think based on short sighted answers.
When you provide information about the reason, be sure to be as specific as possible about the reason, so that it remains clear.
Repeat and ask – “Why?”
Based on the points mentioned above, we proceed further, which can finally be obtained as follows:
We will proceed with the example shown above. There we have a question that – why sales are decreasing, it is necessary to know the reasons and diagnose it. So we will proceed to find its main reasons.
[Regarding the above question]
Analyzing the question found the following other questions:
The price of the product is higher than the product available in the market. – The price is not right.
Product differentiation is not enough.
Using ” Why? ” , we will repeat the questions…
✦ PRODUCT DIFFERENTIATION
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Why?
⇩
What is share?
⇩
Why?
⇩
Is Differentiation needed? / What strategy is best? / What is the status of the product?
✦ PRICES
⇩
Why?
⇩
Comparison with other companies’ products
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Why?
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Customer satisfaction? / Profit margin? / Which is more important, quantity or quality?
[Considering business partners]
Channel – The channel available for selling the product is not functioning properly.
Promotion – There is a problem with the way we market the product.
If we repeat “why?” …
Location/Distribution Channel
Why?
⇩
Difference Between Over the Counter and Mail-Order Selling
⇩
Why?
⇩
In-Store Advantages and Disadvantages/Advantages and Disadvantages of mail order? Sales Methodology/Advertising Strategy ⇩
Why?
⇩
Salespeople’s Labor Cost
Why?
⇩
Existing Ads and Internet Advertising
⇩
What is the Salespeople’s Profit Efficiency? / What are the effects of existing advertising and Internet advertising?
Now to generalize the problem, we narrow down the points to 4 points based on the 4Ps (Product, Price, Place, Promotion).
Try to find more specific problems in the real field.
One of the benefits of using a framework like the 4Ps is that you can understand problems without making mistakes.
It is good to remember that using some frameworks at an early stage is also effective for creating logic trees.
[Problem Solving by Logic Tree]
Once you have identified the problems in the logic tree of causality, the next step is to build a logic tree to solve the problem.
Depending on how well you can identify the problem without making a mistake at the root-following stage, the more accurate the problem solving will be.
While re-examining each problem and cause, we will choose a solution and “How specifically?”
(A) Reasons
Company Problems: “Why Sales Are Not Growing”
Reason: “The Product Strategy Was Unclear”
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The solution?
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Concentration strategy ? | Pricing strategy ? | Technology Strategy ?
⇩
“How special?”
Concentration strategy | Search for ease of use | Exclusive for the elderly
(B) Reasons
Problems of Marketing / business partners: “Why are sales not increasing”
Reason:“Internet measures (both sales and promotion) were insufficient”
⇩
The solution?
Solution? Extension of homepage? | A shift to online advertising? | building Proprietary Media
⇩
“How special?”
Gather influential people inside and outside the company | Create a dedicated team for online advertising | Online advertising
We need to carefully decide which solutions we choose based on the business situation, environment, resources etc.
This time, we chose a centralized strategy and online advertising, but it will be necessary to change it from time to time depending on the situation.
Furthermore, no matter how good a measure is for solving a problem, it is meaningless if it cannot be realized.
Let’s be aware of both the “probability” and the best method and look for a more reproducible method.
Notes on logic Tree
So far, we have seen how to use logic trees. We can use logic trees visually, or you can use them in sentences. A logic tree is a tool that can be explained at a glance, so it needs to have visual diagrams as well as an understanding of it.
Of course, if you have time, you can use diagrams and sentences to explain them better.
For example, when explaining to subordinates, it can be effective to first give a simple lecture on logic trees, and then explain them. Also, the presentation through pictures remains more impressive.
Also, if you send your business partner a logic tree made from slides and ask them to read it in advance before explaining it, you will be more likely to be convinced.
However, as you are used to using logic trees, the purpose may be to use logic trees, and you may neglect the basic “understanding the problem” and “presenting the solution”.
A logic tree is just a tool. You will get what you add to it, so accuracy should be maintained while making.
Reaffirm, it’s meant to share your thought process, and keep that in mind when using it.
Now, in the case of “reasoning” and problem solving, let’s review the points to note while constructing a logic tree.
[ Pursuit of reasons]
In general, when there is a lack of mutual understanding between business partners, or poor communication practices, it is likely that it will be difficult to convince subordinates and business partners.
In other words, even though you know the cause of the problem and the process that led to it, the other person doesn’t understand why, and you feel frustrated.
Also, it is natural that – everyone revolts when their principles are imposed.
So, the simple way is to use logic trees to understand all the processes and root causes, and all the necessary steps. For that the following steps can be taken:
- Try to cover all the necessary reasons.
- Fill in as much specific and necessary information as possible.
- Take serious note of all processes, causes and influencing factors.
- Go deep into root causes to get to the root cause.
- Describe the thought process not only in words but also clearly describe that thought process in a diagram.
We should pay attention to these things.
A possible example of failure is using a logic tree to follow a reason, and then presenting only the reason to the other party that you actually use.
As a result, we cannot share our thought process and end up imposing our opinions.
Try checking the cause tracing logic tree again.
Not only problems should be dug without mistakes, but also by level.
Based on the above points, make sure to use it properly.
[Problem Solving]
Care must also be taken when solving problems. That is, drawing short-sighted conclusions from reason.
For example, if the reason your business isn’t growing is because of “insufficient product differentiation” or “prices aren’t right,” what if you instruct your subordinates to “differentiate your products” or “set the right prices”?
This is only an abstract and general solution, and the method is not clear.
This is also true for counter parties, and more specific proposals are needed to encourage them to act.
Let’s summarize the caveats.
Keep in mind that the solution found should be complete and clear.
Investigate the issue where you can act immediately, diagram the thought process properly, and if the cause changes, so will the solution.
The image is that pursuing reason requires a rigid set of problems, while solving problems requires a more flexible attitude.
Implementation of all solutions is time wise and financially unreasonable.
Given that ultimately choice and focus must be made, it is realistic to take the best you can.
[ Difference Between Logic Tree and Pyramid Structure]
As we know, both logic tree and pyramid have almost the same shape, but they are fundamentally different and are used in different ways.
To easily understand the difference between the two, here are the features of each.
Logic tree
This is a vertical expansion that digs deeper into the root causes. Visual representation of features makes it possible to identify elements without errors and without duplication. Assume that the expansion shape is horizontal.
Pyramid Structure
This can be used as a steppingstone to be writing logical sentences, expanding in depth. It presents evidence with a conclusion at the top.
In summary, a logic tree can be used when “following reasons and solving problems“, while a pyramid structure is used when “presenting intentions and sharing ideas”.
However, the important thing is not to use the two exactly, but to recognize the differences between the two.
[ Summary]
- A Logic tree can be constructed to maintain the other party’s “sense of satisfaction”. Which can explain in a visual representation that – what are the root causes behind a problem? which gives satisfaction to other parties.
- Logic trees are used separately for “finding reasons” and “solving problems”.
- 5 WHY and 1H can be used. Khaskari Ne – “Why?” For reason, “how, precisely?” etc. are also useful for solving. Then all the answers, reasons and solutions should be repeated.
- Consideration of feasibility should not be overlooked.