Cracked it! cover

Cracked it!

by Bernard Garrette, Corey Phelps & Olivier Sibony

Cracked it! provides a strategic toolkit for solving complex problems efficiently. Discover the 4S method, which integrates hypothesis-driven thinking and the Pyramid Principle to refine your decision-making and communication skills, making you an invaluable problem-solver in any organization.

Think Better: The Discipline of Problem Solving

How can you consistently make better decisions when surrounded by complexity, bias, and pressure? In Think Better: The Discipline of Problem Solving, the authors argue that clear thinking can be learned systematically. They weave insights from psychology, logic, and design to show that success depends less on intelligence and more on how you frame, structure, analyze, and communicate problems. You think fast by instinct but must learn to slow down by method.

Fast and slow thinking

You default to fast, intuitive judgments—what Daniel Kahneman called System 1—but real problem solving demands deliberate, slow System 2 reasoning. Fast thinking assembles stories from fragments (What You See Is All There Is). It feels coherent yet often incomplete. When Dell’s performance dipped in 2007, many analysts immediately blamed its CEO. Only by slowing down could one see broader factors—industry shifts, supplier failures, or legacy strategy choices. The rule: let System 1 propose hypotheses, then force System 2 to verify them.

The five traps of poor problem solving

Every organization falls into predictable traps: defining the wrong problem (like calling digital music piracy rather than disruption), confirming preferred solutions, using the wrong mental model, drawing narrow analogies, or miscommunicating insight. Each destroys potential value. Your safeguard is process—the book’s 4S method—which institutionalizes rigor and creativity.

The 4S problem-solving method

The 4S method—State, Structure, Solve, Sell—turns thinking into a repeatable routine. You begin by stating the right question (using TOSCA: Trouble, Owner, Success criteria, Constraints, Actors), then structure it into testable branches (via hypothesis pyramids or issue trees), solve with data and creative tests, and finally sell the recommendation through clear storytelling. This framework is how consultants, strategists, and designers impose discipline on the chaos of business questions.

Balancing analysis and empathy

Some problems are numerical; others are human. You learn to blend analytical rigor (checking assumptions, avoiding sampling bias, interpreting numbers correctly, distinguishing correlation from causation) with empathy-led design thinking that reveals users’ hidden needs. The GE Adventure Series case shows how empathy reframed MRI scanning for children: not technology modification, but emotional re-imagination.

From logic to persuasion

Even the best analysis fails if you cannot persuade. The Pyramid Principle and presentation design chapters teach you to sell solutions through a core governing thought and MECE arguments supported by clean visuals. Your message should fit into one sentence and survive an elevator pitch. Communication converts insight into impact.

Mastery through practice

Ultimately, problem solving is a craft. You must practice framing real issues, building trees, crafting pyramids, and running design cycles. The authors echo the spirit of The McKinsey Mind and Thinking, Fast and Slow: mastery comes by alternating intuition with deliberate structure. Practice these routines daily and you become the person trusted to untangle complexity—and deliver clear, credible answers.


Fast and Slow Thinking in Action

Most bad decisions begin as fast, coherent stories that feel right. Your mind craves causality: declining metrics mean a failing leader, slow growth means poor marketing. Yet System 1’s storytelling is blind to what’s missing. Slowing down activates System 2, the analytical engine capable of testing alternative explanations. The contrast between Othello’s rush to judgment and Hamlet’s paralysis illustrates the extremes; effectiveness lies between them.

Building awareness of WYSIATI

The acronym “What You See Is All There Is” summarizes the fast-thinking trap. You must pause and ask what you don’t see: unavailable data, unstated assumptions, unseen actors. Techniques include writing initial hypotheses, listing assumptions, and searching for disconfirming evidence. Team dissent and red‑team processes institutionalize slow thinking.

Expertise and humility

Experience helps pattern recognition but can entrench bias. Seasoned leaders fall for familiar narratives because they look plausible. The “expertise trap” reminds you to combine confidence with curiosity—treat every case as both a memory and an experiment.

Core insight

Use fast thinking to generate candidate stories, not conclusions. Let slow thinking audit, refine, and sometimes overturn them.


Avoiding the Five Pitfalls

Five recurring traps derail problem solving. First, a flawed problem definition—solving symptoms instead of causes. Second, solution confirmation—starting with your favorite idea. Third, the wrong framework—forcing mismatched models. Fourth, narrow framing—borrowing analogies blindly. Fifth, miscommunication—failing to persuade with clarity.

Examples in practice

The music industry misframed digital disruption as piracy; Apple reframed it as distribution evolution. Grameen–Danone’s Shoktidoi yogurt venture confirmed its product bias and ignored field realities. CallCo’s HR director Lisa escaped a wrong framework by redefining turnover causes through evidence. Ron Johnson at J.C. Penney fell for narrow framing, copying Apple’s boutique model to a discount culture. And communication failures—John Yudkin’s muted sugar warning—show that truth still needs storytelling power to move audiences.

Designing defenses

Keep these errors visible as checklists. Restate problems, test hypotheses, diversify teams, and plan communication strategy early. Structured routines like TOSCA and 4S embed such defenses naturally. The point is not to avoid mistakes once but to engineer an environment where mistakes surface and get corrected fast.


Framing with TOSCA and Structure Tools

Clear definition is the foundation of all reasoning. The TOSCA method (Trouble, Owner, Success criteria, Constraints, Actors) makes you articulate the precise problem before analysis begins. You define the gap, locate ownership, set measurable success, acknowledge limits, and map stakeholders. This transforms vague symptoms into actionable questions.

From TOSCA to trees and pyramids

Once stated, you structure it. Hypothesis pyramids work top‑down—start with a candidate solution and test sub‑claims. Issue trees go bottom‑up—split the core question into MECE sub-issues. Librinova’s Canadian expansion case shows both techniques producing clarity. MECE (“mutually exclusive, collectively exhaustive”) ensures every branch is distinct and complete. Logical structuring converts complexity into manageable parts.

Framework selection

Frameworks—marketing, financial, or industry-specific—accelerate analysis but can mislead when mismatched. Choose based on the problem, not habit. For Starbucks, same-store versus portfolio drivers make more sense than a raw cost/revenue split. Remember: a way of seeing is also a way of not seeing.

Integrating multiple frameworks

You master structuring by learning to combine pyramid logic, MECE trees, and relevant frameworks into one coherent map. Teams help surface blind spots and verify logic boundaries. Structuring is where creativity meets discipline—the architecture underlying all good analysis.


Analysis, Assumptions and Data Discipline

After structure comes analysis. You transform each hypothesis into an explicit plan: data sources, tests, and timing. The book describes eight degrees of analysis—from hard numbers to judgment calls—to show that not all evidence is equal. Prioritize make-or-break hypotheses first, and disclose where you rely on judgment instead of data.

Making assumptions explicit

Explicit assumptions are the backbone of credible recommendations. Always list the values you’ve used—growth rates, exchange rates, adoption speeds—and translate them into tangible terms. Benchmark against peers, test sensitivities, and share the boundary conditions under which your proposal holds. Hidden assumptions destroy trust and distort results.

Avoiding sampling and survivor bias

Data collection introduces bias. Interviewing only current customers teaches you why they stayed, not why others left. Always ask who’s missing from your sample. Reach lapsed customers, skeptical employees, and defectors. Label data precisely (“production vs. consumption”) and scrutinize sources for optimism. Conservative assumptions make better analyses.

Correct use of numbers and correlations

Numerical rigor protects you from the illusion of proof. Double-check arithmetic (percentages, VAT reversals, spreadsheet errors) and sanity test outputs—no business grows 5,000 percent overnight. Distinguish correlation from causation by testing chronology and controlling confounders. Correlations are clues, not conclusions. Treat them with caution and curiosity to uncover true drivers.


Design Thinking for Human Problems

When the problem is human, abstract analysis alone fails. Design thinking complements logic with empathy and iteration. You use it when causes are unclear or touch user experience. Its five phases—Empathize, Define, Ideate, Prototype, Test—guide you from observation to verified solutions.

Empathy and discovery

Empathy means stepping into users’ worlds. Participant observation, shadowing, and immersion reveal real behaviors and hidden pain points. Semi‑structured interviews and extreme-user stories expose needs no survey detects. Synthesis tools—empathy maps and journey maps—convert observations into design imperatives. The LEGO and OXO stories demonstrate how empathy for special cases generates universal breakthroughs.

Ideation and prototyping

Ideation thrives on quantity and diversity. Techniques like SCAMPER, morphological analysis, and analogical thinking create rich idea pools. Prototyping brings ideas to life; early rough models—like McDonald’s tennis‑court kitchen sketch—allow inexpensive learning. Testing closes the loop: observe real users, record feedback grids, and iterate rapidly. The mantra “fail often to succeed sooner” captures the process essence.

Mindset shifts

Design thinking demands creative confidence and tolerance for ambiguity. Doug Dietz’s GE Adventure Series MRI reframe shows its power: empathy produced innovation that data alone couldn’t. You learn to see problems not as puzzles to solve but as experiences to redesign—expanding what solutions can mean.


Selling Ideas through Story and Design

The final step is persuasion. Your audience must grasp and believe. The Pyramid Principle aligns storytelling with logic: start from the governing thought—one clear recommendation—and support it with two or three MECE pillars. Every slide or paragraph builds those pillars.

Crafting storylines

If your idea is clear, build top-down; when findings are scattered, build bottom-up by clustering themes into pillars. Structure arguments either as lists (independent reasons) or logical chains (situation–complication–resolution). The Mustang Airlines case shows how reorganizing evidence under a simple governing thought (“pass on A320neos”) transforms confusing data into persuasive narrative.

Designing slides and reports

Each slide carries one actionable message with a clear title and visual proof. Charts must match purpose—time series for trends, waterfalls for decompositions, scatterplots for correlations. Keep decks compact, spell‑check numbers, and pre‑wire stakeholders before final meetings. Dialogue beats monologue: good delivery turns analysis into action.

Insight to remember

In the end, selling is problem solving’s last mile—where clarity of thought meets clarity of presentation to create change.


Practicing Mastery and Critical Thinking

Mastery comes not from knowing methods but from applying them repeatedly. The authors close by urging consistent practice: write TOSCA statements for everyday issues, create small issue trees, design one-page pyramids. Feedback and iteration cement habits. Collaboration accelerates learning—peer critique exposes blind spots and fights confirmation bias.

Learning by doing

Use structured methods on real scenarios. Treat each project as rehearsal for clarity: define, test, communicate, refine. Over time these routines become reflexes. The payoff is not only professional skill but personal decision quality—research shows critical thinking lowers error rates in life choices.

Humans and AI

Artificial intelligence augments analysis but cannot replace framing or persuasion. Machines can model; humans define meaning. The future belongs to hybrids: individuals who can integrate algorithms with human insight, empathy, and narrative skill. Practice that fusion daily.

Final message

Think systematically, test relentlessly, communicate vividly. Done together, these habits turn ordinary problem solvers into trusted masters of clarity.

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