Market size difference by revenue vs by volume

For graduates aspiring to embark on a career in consulting, understanding and effectively navigating complex situations is essential. The Cynefin Framework (pronounced: Kin-ev-in) provides a powerful tool for consultants to make sense of different problem domains and determine appropriate approaches.In this article, we will explore the Cynefin Framework, its sections - Simple, Complicated, Complex, and Chaotic and the Disorder domain. Additionally, we will provide an example of how the framework can be applied in the consulting industry. Understanding the Cynefin FrameworkThe Cynefin Framework, developed by Dave Snowden, offers a sense-making model to categorize problem areas based on their levels of complexity and uncertainty (the two “basis elements” of the framework).  It helps consultants identify the appropriate management and decision-making approaches in five different contexts that result in four areas and a center unit:Simple Domain: Best Practices and Standard Operating Procedures In the Simple domain, problems are clear-cut, predictable, and easily resolved using established best practices and standard operating procedures. Consultants can rely on known solutions and established rules to address challenges within this domain.Complicated Domain: Expertise and Analysis The Complicated domain involves issues that require expertise and analysis to determine the most suitable solutions. There may be multiple valid approaches, but they require careful investigation, expert opinions, and data analysis to make informed decisions.Complex Domain: Emergence and Adaptation The Complex domain is characterized by uncertainty, ambiguity, and a lack of clear cause-and-effect relationships. Consultants must navigate this domain by probing, sensing, and responding to emergent patterns. Multiple perspectives, experimentation, and adaptive strategies are crucial in dealing with complex problems.Chaotic Domain: Urgency and Rapid Response The Chaotic domain represents situations of extreme uncertainty and urgency, where there is no apparent order. Consultants must act swiftly and decisively to establish stability and restore order. This may involve making quick decisions, containing crises, and stabilizing the situation.Disorder: Transition and Uncertainty The Disorder domain serves as a center unit and describes the transition state, representing a lack of clarity about which domain a problem falls into. It highlights the need for consultants to identify and understand the nature of the problem before determining an appropriate approach.  Applying the Cynefin Framework in the Consulting IndustryLet's consider a case where a consulting firm is working with a global manufacturing company facing a significant disruption in its supply chain:Simple: The consulting team identifies that the supply chain disruption is due to a known issue—a breakdown in communication between departments. They can apply a predefined set of best practices and standard operating procedures to address the problem and restore communication channels.Complicated: Upon further investigation, the consulting team discovers that the disruption is caused by a breakdown in a critical supplier relationship. They bring in experts and conduct a detailed analysis of alternative solutions, such as identifying new suppliers or renegotiating contracts, based on the company's specific requirements.Complex: As the investigation deepens, the consulting team realizes that the disruption is a result of multiple interconnected factors, including geopolitical events and market volatility. They facilitate diverse perspectives and experimentation to explore adaptive strategies, such as diversifying the supplier base, implementing risk mitigation measures, and leveraging emerging technologies for real-time supply chain visibility.Chaotic: In a worst-case scenario, if the disruption escalates into a chaotic situation, such as a natural disaster or political crisis, the consulting team's focus shifts to rapid response and containment. They assist the company in activating crisis management protocols, establishing alternative supply routes, and stabilizing the situation to restore order.  Mastering the Cynefin FrameworkThe Cynefin Framework is a leader's framework for decision making. It equips consultants with a powerful sense-making tool to navigate complexity and make informed decisions in different problem domains. By understanding the characteristics of the Simple, Complicated, Complex, and Chaotic domains, consultants can apply appropriate strategies and approaches to address diverse challenges.As graduates embarking on a consulting career, mastering the Cynefin Framework will enable you to effectively analyze and solve complex problems, bringing value to clients in an ever-changing business landscape.

The Stacey Matrix is an important tool for navigating complexity in project management, developed by Ralph Douglas Stacey in the 1990s.In this article, we’ll break down how the matrix works, explore different project types, and discuss its relevance in consulting and case interviews. Plus, we’ll dive into its strengths and limitations in project management. Let’s get started! What Is the Stacey Matrix?The Stacey Matrix is a tool for representing and managing complexity in projects. It helps teams navigate uncertainty and align on the most suitable approach for project execution. It consists of two axes: Requirements (y-axis) and Approach (x-axis). Requirements represent “what” needs to be developed, while the Approach represents the 'how'. It is commonly used in software development and IT consulting to determine the complexity of a project or task. 🚀 Within the axes, there are four areas:SimpleComplicatedComplexChaoticThe character of a project is defined along its bisecting line. Closer proximity to the axes' intersection denotes simplicity, with clear goals and established approaches. Moving away leads to increasingly complex areas, culminating in ambiguity where goals and approaches are entirely unknown. In the IT sector, this scenario is commonly termed "agile," relying on agile frameworks for problem-solving.The following diagram represents the Stacey Matrix, with the Y-axis indicating the clarity of requirements (from unclear to clear) and the X-axis representing the solution approach (from clear and proven to new and unproven). Projects are categorized into four types: simple, complicated, complex, and chaotic, based on the clarity of requirements and the approach to solutions. Four Examples of Classification Into Individual Project TypesThe structure of the Stacey Matrix becomes clearer when we illustrate the four areas of the individual project types using examples.➡️ Simple ProjectsA simple project is characterized by clearly defined requirements and a known approach. For example, using a familiar technology to fulfill well-established requirements qualifies as a "simple" or "trivial" project, where the solution is straightforward. In such cases, the traditional waterfall model is suitable for project management, as it involves working through predetermined steps without the need for extensive adaptation or iteration.➡️ Complicated ProjectsHowever, when either or both of these factors change, projects become more complex. For example, in IT, this might mean using a new technology that the team isn't fully proficient with, or implementing new requirements that haven't been addressed previously. In such cases, more time is needed for upfront planning and exploration, as the team is venturing into unfamiliar territory. Examples include adopting a new JavaScript library, entering a new market, or integrating a new invoicing system.➡️ Chaotic ProjectsIt goes even further when both the solution approach (or technology) and the requirements are completely unknown - "chaotic". The question arises, how does one plan a project when neither the requirements nor the approaches to be used are partly unknown? The answer is simple: one can't. Chaos can't be planned.This is also the reason why, especially in IT, agile frameworks like Scrum or Kanban are used in this case. When neither the requirements or the approaches are known, one must gradually approach the supposed goal.The current most famous examples of Chaotic problems in consulting are the economic crisis, a pandemic like COVID-19, or wars.➡️ Complex ProjectsHowever, between the complicated and the chaotic area lies another area called "complex". In a complex system or project, the boundary conditions - requirements and approaches - can be set and left unchanged so that the system can self-organize within these boundaries.A consulting example for this is the development of a new business model or the introduction of a new product. The Problem Statement in the Case InterviewThe Stacey Matrix is a tool for decision-making that helps identify problems in case interviews. It considers the chosen solution approach and the team's familiarity with methods to determine the implementation strategy and the type of case.👉 Solve 200+ cases in our Case Library now!By using the Stacey Matrix for the case at hand or the respective project, clarity is created for the upcoming tasks. By first determining the 'What' requirements on the Y-axis and then defining the 'How' on the X-axis, the solution path and implementation can be derived. Advantages and Disadvantages of Using The Stacey Matrix in ConsultingThe use of the Stacey Matrix in consulting primarily serves to visualize the problem at hand. This results in advantages and disadvantages of using it in a case interview, with the client or within projects:Advantages:The Stacey Matrix is quickly drawn by hand on a flip chart or paper to explain the situation to stakeholders.All stakeholders can evaluate projects upfront, identifying potential frustrations early.It uncovers challenges and responsibilities early, influencing personnel decisions.The division into 'What' and 'How' clarifies argumentation and approach structuring.Disadvantages:In practice, 'What' is typically decided by higher management, not 'How', making complete classification challenging.The Matrix doesn't suggest approaches to the problem. Participants with varying experience levels may assess projects differently.It's a model and doesn't consider real-world factors like project environment, resources, and time constraints.Depending on how it's used, the Stacey Matrix can be manipulated to fit one's agenda, potentially shaping the project to fit a predetermined approach rather than adjusting the approach to fit the project. Conclusion on the Stacey MatrixEspecially in agile or digital transformation projects, the Stacey Matrix is a frequently used tool to determine the complexity of corporate structures, processes, and projects. Specifically in the area of decision-making in complex or chaotic situations, it can help to find a suitable project management approach as quickly as possible.💡 Depending on experience, however, one should be careful that the actual purpose of the Matrix is not subordinated to one's own interests, for example, to select a specific, familiar solution approach (Waterfall, Lean, Agile). Practice Cases with the Stacey MatrixWhy not apply the Stacey Matrix in realistic case studies! We've compiled three fitting cases for you. Don’t forget: The more you practice, the better you get! 💪