What is the most effective model for solving a given problem?
When tackling an issue, the best path to success requires more than just intuition. A well-thought-out model is essential to developing strategies for problem solving. It guides the efforts to identify a solution, and is key to validating the results.
The most effective models can be divided into two categories: quantitative and qualitative. Quantitative models contain data and mathematical calculations. These are great for issues that require precision and accuracy. Examples of questions that would use a quantitative model include “What is the likelihood of an event occurring?” or “Which type of investment yields the most return?”.
Qualitative models involve examining information and descriptions. These are better suited for situations where the answers are more subjective. For instance, if trying to determine a customer’s preferred product, a qualitative model using customer survey results and market research would be more appropriate than a quantitative one.
When using quantitative models, software such as Monte Carlo Simulation and Decision Tree Analysis can be employed to identify the best answer among a set of options. Monte Carlo Simulations are used to take into account the multiple variables involved in a problem. Decision Tree Analysis enables you to factor in the possible outcomes of different situations.
Qualitative models rely on creativity rather than calculations. The most common of these are brainstorming and 6 Thinking Hats. Brainstorming is a tool used to generate ideas quickly, while 6 Thinking Hats allows you to examine a situational from six different perspectives.
Any problem-solving scenario should evaluate which type of model is necessary in order to get the most accurate results. Quantitative models are used for issues that require precision, while qualitative models are best when the desired answer is more subjective. Exploring both types of models will ensure the most effective solution is achieved.