Abstract
There are three kinds of solutions to business problems: symptom solution, pattern solution, and root solution. Symptom is simply visible phenomena; they are not problems; therefore, symptom solution is only temporary, such as adding cold water to a boiled water. Pattern solution looks alright, but it is not sustainable, costly, and sometimes risky; therefore, it also won't help the business in the long run, such as adding cold water through a thin pipe to the same boiled water. Root solution is powerfully simple, because it dives to the bottom of the issue, such as turning the stove off. Obviously, businesses need to seek root solutions. For years, Company Q has been trying to seek the “right” answers to manage the company, but facts have always left them disappointed, until they found out that the GPS-IE® Management Improvement System is truly systematic, logic- and result-driven, and sustainable.
TopSetting The Stage
However, in 2014, under the new administration’s policy, the real estate industry cooled down. Housing prices started to fluctuate, and people were not certain where the trend would end. GDP growth rate in 2011 dropped to 9.5%, and in 2012 it decreased to 7.9%. The economic slowdown continued, between 2013 and 2014, GDP growth rate slowed down to 7.77% and 7.30%. Real estate industry growth also declined from 5.4% in 2011 to 1.2% in 2012. People started to buckle up because the economy would take a roller-coaster ride. The following table shows the China’s GDP growth rate between 1998-2018.
Table 1.
China’s GDP growth rate, 1997-2018
| Year | GDP Growth (%) | Annual Change |
| 2018 | 6.60% | -0.16% |
| 2017 | 6.76% | 0.02% |
| 2016 | 6.74% | -0.17% |
| 2015 | 6.91% | -0.39% |
| 2014 | 7.30% | -0.47% |
| 2013 | 7.77% | -0.09% |
| 2012 | 7.86% | -1.69% |
| 2011 | 9.55% | -1.09% |
| 2010 | 10.64% | 1.24% |
| 2009 | 9.40% | -0.25% |
| 2008 | 9.65% | -4.58% |
| 2007 | 14.23% | 1.51% |
| 2006 | 12.72% | 1.32% |
| 2005 | 11.40% | 1.28% |
| 2004 | 10.11% | 0.08% |
| 2003 | 10.04% | 0.91% |
| 2002 | 9.13% | 0.79% |
| 2001 | 8.34% | -0.15% |
| 2000 | 8.49% | 0.82% |
| 1999 | 7.67% | -0.17% |
| 1998 | 7.84% | -1.39% |
Source: Wikipedia.org (Historical GDP of China, 2019)
Key Terms in this Chapter
Level 1 Problem: BU-level, business strategy-oriented result discrepancies.
Driver Equation: A mathematical formula that all unalienable factors for result are organized for arithmetic operations.
Symptom: Visible phenomenon.
Level 2 Problem: BU-level, annual result-oriented driver discrepancies.
Approach: Different ways to solve discrepancies.
Problem: Quantified discrepancies between current and expected situations.
Cause: Measurable factors that lead to symptoms.
Level 3 Problem: BU-level, driver-oriented activity discrepancies.
GPS-IE®: A management methodology co-developed by Hui Ding and George Limin Gu (2017) AU6: The in-text citation "Limin Gu (2017)" is not in the reference list. Please correct the citation, add the reference to the list, or delete the citation. who also co-founded Shanghai Management Improvement Consulting Co., Ltd. (brand: Improvement Consulting, or IC).
Product: BU independently delivered carrier of value.
Result: Output of all plans and inputs.