One key problem solving skill is identifying core issues quickly.
In a prior post, we explored why “Managers faced with a complex problem typically end up solving the wrong problem” …. and suggested some remedies.
Continuing that discussion …
Recognize that the number of core business problems is not infinite … though variants abound.
More specifically, in my opinion, the defining conceptual structure of most business problems is the same … and is captured in the PAR Framework.
PAR stands for Potential – Action – Results … companies take action against identified market potential to secure results … which, in most cases, are measured as profits.
A business problem – or case interview question — usually centers on one of the PAR components … with the other 2 providing a basis for resolution.
For example, if profits (the “R”) are down, the question is whether it’s due to market conditions (the “P”) or the company’s actions (the (“A”).
Or, the question may be how to respond (the “A”) to a change in market or competitive conditions (the “P”) … and what results to expect for alternative responses.
Or, the question may be what markets to enter (the “P”) in what way (the “A”) … to achieve what results.
The takeaway point: the PAR Framework provides a ready structure for getting your arms around common business problems.
The Homa Files 
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