Use Socratic Method for Business Problems - Solve for Profit

 How to have a successful business using the Socratic Method?

Identifying the issue or problem to be examined: In this example, let's say the business is facing a decrease in sales and needs to find a solution.

Asking questions to define the issue or clarify the problem: The first step is for the team to gather information and ask questions to understand the issue. For example, they might ask, "What specifically is causing the decrease in sales?" or "Can you provide data on sales trends over the past few months?"

Examining underlying assumptions and beliefs: The next step is to examine the underlying assumptions and beliefs the team has about the cause of the decrease in sales. For example, they might believe that the decrease is due to increased competition, while another team member believes it's due to a lack of marketing efforts.

Questions to ask:

• What are our assumptions or beliefs about the cause of the decrease in sales?
• How do these beliefs impact our understanding of the problem?
• Are there alternative perspectives we can consider?

Proposing alternatives and considering different perspectives: In this step, the team could propose different solutions or alternatives for the decrease in sales. For example, they could agree to invest in a targeted marketing campaign or to develop new products to differentiate themselves from the competition.

Questions to ask:

• What are the potential solutions or alternatives to the decrease in sales?
• What are the pros and cons of each alternative?
• How does each alternative address the underlying issue or problem?

Arriving at a conclusion through logical reasoning: The final step is to arrive at a conclusion through logical reasoning. The team evaluates the alternatives, considering the evidence and information available, and makes a decision based on the best available information. For example, they may agree to invest in a targeted marketing campaign and to continue to monitor sales trends to see if additional steps are necessary.

Questions to ask:

• What is the most logical conclusion based on the information available?
• What evidence supports this conclusion?
• How does this conclusion address the underlying issue or problem?
• Are there any potential risks or drawbacks to this conclusion?

Example 2 Using the Socratic Method to solve Business Problems

How to launch a new business product?

1. Clarifying concepts: A team is discussing a proposal to launch a new product. There are differing opinions on what the product should be and what the target market should be.

Questions to ask:

• What does each person mean by "product"?
• What does each person mean by "target market"?

Probing assumptions: The team may have assumptions about the market demand for the product, the competition, or the resources required to launch the product.

Questions to ask:

• What assumptions do you have about market demand for the product?
• What assumptions do you have about the competition?
• What assumptions do you have about the resources required to launch the product?

Probing rationale, reasons, and evidence: The team needs to understand the reasoning behind each person's position on the product and target market. For example, one team member may believe that the target market should be young professionals, while another may believe that it should be families.

Questions to ask:

• What is the reasoning behind your position on the product and target market?
• What evidence supports your reasoning?

Questioning viewpoints and perspectives: The team needs to consider each other's perspectives and understand how their experiences, beliefs, and values influence their opinions. For example, one team member may have experience in a similar market, while another may have a strong personal interest in a different market segment.

Questions to ask:

• How have your experiences and values influenced your opinions on the product and target market?
• How do your experiences and values affect your perspective on the issue?

Probing implications and consequences: The team needs to consider the potential consequences of each proposed product and target market. For example, launching a product for young professionals may require a different marketing strategy and budget than launching a product for families.

Questions to ask:

• What are the potential implications and consequences of each proposed product and target market?
• How do these implications and consequences align with the company's goals and values?

Questioning the question: Finally, the team needs to question the underlying assumptions and beliefs that are driving the disagreement. For example, they may need to question the assumption that they must choose between a product for young professionals or families or that they must make a decision right away.

Questions to ask:

• What are the underlying assumptions and beliefs driving this disagreement?
• Are there alternative ways of framing the issue that could lead to a more mutually agreeable solution? 
• What assumptions and beliefs are at the root of this disagreement?
• Can reframing the issue lead to a more mutually satisfactory solution?