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Think Tools
Version 1.7
www.thinktools.com
Think Tools Suite 1.7
Page 1
New Tools for Thinking
Think Tools® is a software-based support system for qualitative reasoning, decision-
making and knowledge management.
Throughout history, mankind has used tools, from the wheel and the lever to aircraft
and computers, to enhance innate human abilities. However, until recently, tools to
support complex reasoning have not been available.
Think Tools methodologies are used today by leading companies, governments and
consultancies for complex strategic questions and knowledge management. They are
also used to enhance the interactivity, knowledge efficiency and transparency of
organizational thinking processes; e.g. strategy development, product creation or
policy planning processes.
After more than a decade of basic research at the Max Planck Institute for Physics in
Munich, Think Tools translated the research results into user-friendly and practical
tools and methodologies. They were first introduced to a broader public at the
Annual Summit of the World Economic Forum in Davos in 1997.
Characteristics
Think Tools® is revolutionary in that the tool suite was created specifically to facilitate
advanced thinking. The tools enable one to improve the efficiency of our cognitive
operations by supporting them with the few processes that computers can perform
better.
The tools do not replace those functions - judgment and the application of insight -
in which the brain excels, but complement our reasoning skills by allowing
visualization of problems, more systematic exploration of alternatives and estimation
of outcomes thereby facilitating a more rapid and deeper understanding of complex
issues.
Benefits
Deeper Understanding
The graphic nature of Think Tools® enables faster and deeper understanding of
complex issues and options. Visual representation enables one’s mind to deal with
increased number of variables and multiple dimensions.
Faster decision-making
The quality of real time decision-making is greatly enhanced, as all computations
take place instantaneously and the results are displayed immediately.
Page 2
Easier consensus building
The linear process of verbal reasoning employed in discussion often leads to
delays, misunderstanding and conflict. Think Tools® enables one to circumvent
these impediments by facilitating a more rapid and deeper understanding of highly
complex issues, promoting earlier consensus. Where disagreements emerge, their
basis is clearly apparent and the assumptions and judgments underlying them can
be isolated and addressed.
Page 3
Qualitative Analysis
Overview
Understanding the structure and dynamics is
fundamental in tackling a complex problem. The
Qualitative Analysis (QA) tool assists in developing
a systemic overview, then enables further analysis
by identifying active and passive elements and
feedback loops in the system.
Getting Started
Create a new QA file:
1. Click the QA icon:
2. Click the Save icon:
3. Assign a file name no longer than 8
characters under the appropriate folder
4. Click OK
Page 4
Qualitative Analysis
Page 5
Qualitative Analysis
Analyze
Identify critical areas of the system
with the Portfolio Evaluation: Drive other Pivots of
1. Click the Portfolio Evaluation View items the system
icon:
-Key Factors on the upper left
quadrants are active elements, or the
drivers of the system (They are Are driven by
often external factors that cannot be other items
influenced by the problem-solver
of this issue)
-Key Factors on the lower right Right mouse click to display
quadrants are passive elements, or element title and description
the outputs of the system
- Key Factors are displayed in the upper Tip If the element in the upper
right quadrant is not a
right quadrant are are at the core of the critical factor of the system,
system, being both drivers and outputs return to the Graphics View
to check the validity of the
relationship
2. To return to the diagram, click the
Graphics View icon:
Page 6
Qualitative Analysis
Example
Situation
A multi-national, consumer products company with a large market share was
under attack from the low end by an Asian competitor that was gaining 1-2%
market share per year. The Asian company dropped prices by 30% across the
board and the consumer products company began to lose market share rapidly.
Approach
In approaching this problem, QA was
the first tool that the company used.
It helped them take a step back from
the problem and start tackling the
issue by first understanding the market
structure and its key elements. Then
they identified the driving factors in the
marketplace and analyzed the
relationships between those factors.
Next Step
The company is now able to create a strategic option space and explore potential
scenarios with these critical factors in mind. The Evolutionary Scenario Generator
(ESG) tool supports that process.
Advanced Users
Export key factors to ESG:
1. Choose to export a groups of boxes or all boxes. If a group is to be exported,
click and drag to highlight the desired boxes
2. Select Item>Export>All or Selected
3. Open ESG >Edit>Paste>Paste from QA
Shortcuts:
1. Copy boxes: while holding down the Control key, click on the box to be copied
and drag it to another place on the screen
2. Link boxes: while holding down the Shift key, click on the source box and
drag it to the destination box to link them
Color boxes to emphasize a key factor
Excessive use of colors could
or highlight a starting point: overshadow important
1. Select View>Draw mode>Color relationships in the system
Boxes
2. Highlight box
3. Click Properties icon:
4. Select Color>Assign color
5. Click OK Selecting Color Arrow in
Draw Mode turns the default
Color arrows to enter additional
arrow color to black,
dimensions to the system: including the color of all
1. Select View>Draw mode>Color arrows created up to that
Arrows point. Select Draw Mode at
the beginning of the session
2. Double-click on arrow
if the Color Arrow function is
3. Select Color>Assign color to be used during the
4. Click OK session
Page 7
Evolutionary Scenario Generator
Overview
The ESG supports the process of scenario building
and/or strategy development. In ESG, the user can
take a problem and break it down into several key
areas to explore and identify alternative options
within those key areas. Then all the options are rated
against one another based on their compatibility in
order to generate a series of different strategies or
scenarios, which can be listed according to the
highest level of consistency and stability.
Getting started
Create a new ESG file:
1. Click the ESG icon:
2. Click the Save icon:
3. Assign a file name no longer than 8
characters under the appropriate folder
4. Click OK
Add Key Area Descriptors:
1. Click the New Key Area icon:
2. Double-click within the box and enter a
name that best represents the key area What are the key areas that
to be considered. need to be explored?
*As with QA, to add detail or attach a supporting How could this complex
document to any boxes: problem be dissected into a
-Highlight box, click Edit>Properties collection of Key areas?
-Add an asterisk in the box to indicate detail
Add a Title:
1. Double click the Title Bar
What is the focus of the
2. Enter a name that describes the option
strategy or scenario?
space
Page 8
Evolutionary Scenario Generator
Add Options:
1.Click the New Options icon:
2. Double-click in the box and enter
a name that best represents a mutually What are the relevant
exclusive option within that key area options within those key
areas?
3. To add options at any time,
highlight the desired gray box first,
then click the New Options icon Tip Create simple option spaces
(i.e. 5-6 columns and to 3-4
yellow boxes), especially in
Edit Key Areas and Options: the beginning, until groups
-To move a box, highlight the box, drag become proficient in
and drop to the desired location managing them.
-To delete a box, highlight the box,
then click the Delete icon:
Page 9
Evolutionary Scenario Generator
Analyze
View a list of strategies or scenarios:
1. ESG computes all possible strategies
or scenarios and lists the top 100,
ranked in the order of their highest
Inter-Pillar Consistency (IPC).
Page 10
Evolutionary Scenario Generator
Example
Situation
A multi-national, consumer products company with a large market share was
under attack from the low end by an Asian competitor that was gaining 1-2%
market share per year. The Asian company dropped prices by 30% across the
board and the consumer products company began to lose market share rapidly.
Approach
The company used the QA tool to
understand the market structure
and its key elements. Then having
identified the driving factors in the
marketplace, they created and
explored their strategic option
space. They used the critical factors
as the key areas and identified a few
alternative options within each of the key areas. Having assessed how each option
coexists with all the rest of the options in the system, they were able to come up
with a few consistent, yet different strategies.
Next Step
The company is now able to evaluate these strategies against one another using a
number of objectives that they had set. The Strategy Evaluation tool supports
that process.
Page 11
Evolutionary Scenario Generator
Advanced Users
Import “Key Factors” as “Key Areas”
to explore from the QA tool:
1. Select critical factors that are
considered to be Key Areas of a
strategy or scenario by
highlighting these boxes
2. Select Item>Export>All or Selected
3. In ESG, select Edit>Paste>Paste
from QA
Test Strategies against Scenarios:
Combining the strategy space with
the scenario space allows testing
of various strategies against
scenarios:
1. Open the scenario file
2. Select Hierarchy>Merge
3. Choose the strategy file. This will
place the strategy option space
to the right of the scenario space.
4. Disproportionate influence of one Is the strategy influenced by
space over the other can be a scenario?
displayed (and included in the
overall computation in “Advanced
Mode”) by creating a hierarchy between
the option spaces. The strategy space is
therefore dependant on the scenario.
-Highlight the Title Bar of the second
option space and select Hierarchy>
One Down
Page 12
Evolutionary Scenario Generator
Page 13
Evolutionary Scenario Generator
Change Settings:
1. Change Computational Parameter:
Select Settings>Computational
Parameters (The setting must be
in Advanced Mode for the dialog
box to display as seen here).
To allow for more weight on the
compatibility matrix instead of the
probability setting, move the Scenario
Performance Factor bar towards IPC.
2. Show Values: Within the Compatibility
Matrix, you have the option to see
the number within each square. Select
View>Show Matrix Values.
3. Change Colors: You may also change
the default colors of the Compatibility
Matrix. Select Settings>Color.
Click on each
number for its
Use the Evolutionary computational color palette
process for large option spaces: to appear
Running a Deterministic Process (by
clicking the icon) to generate scenarios
could take a long time for large option
spaces. This is due to the fact that the
Deterministic Process computes all feasible
scenarios, up to approximately 150,000,
in order to generate the most consistent
scenarios.
Page 14
Evolutionary Scenario Generator
1. Navigation System
To navigate through the strategy
and scenario patterns, highlight a
green circle, which will then turn
into a red circle. This will also change
correspondingly the combination of
red dots in the Option Space.
Page 15
Strategy Evaluation
Overview
The Strategy Evaluation tool allows systematic
evaluation of strategies or options. By evaluating
the performance of each strategy or option against
multiple, weighted criteria in up to three relevant
time horizons, instantaneous, visual interpretations
of the input are displayed for comparison, leading
to quick understanding and better decision-making.
Getting Started
Create a new Strategy Evaluation file:
1. Click the Strategy Evaluation icon:
2. Click the Save icon:
3. Assign a file name no longer than 8
characters under the appropriate folder
4. Click OK
Add Strategies:
1. Select Manage>Strategies
2. Click Add What are the strategy
3. Choose and type the Strategy name options that should be
that is descriptive and intuitive evaluated?
4. Click the drop down arrow in the Color
Tip Evaluate not only strategies,
field and select a color but also other complex and
5. Enter a concise strategy description controversial decisions, such
6. If the strategy resulted from the ESG as projects, partners,
candidates, competitors, etc.
tool, attach the ESG file by double
clicking on the strategy, then clicking
Browse in the Strategy Composition file
and adding the ESG file. This will serve
as a reminder of the specific composition
and details of the strategy. Click Launch
to open the attached ESG file.
7. Click OK
8. Continue steps 2-7 for additional strategies
Page 16
Strategy Evaluation
Add Criteria:
1. Select Manage>Criteria
2. Click Add
What are the evaluation
3. Type the Criterion Name criteria/objectives?
4. Press <Tab> then type a short name
or an acronym of the criterion
Tip If the criteria are unclear,
5. Enter a concise criterion description start with the IGP tool to
6. Click OK refocus on the goals
7. Continue steps 2-6 for additional
criteria
description
4. Click OK
Page 17
Strategy Evaluation
Analyze
Once the strategies have been rated in
each time frame, the outcome can be
viewed:
Click the View icon: to display a bar
Short-term
chart that compares all strategies
against one another based on the
performance rating input.
Mid-term
Change any criteria weighting or
strategy performance rating and
view their changes in the outcome
instantaneously. Long-term
Example
Situation
A multi-national, consumer products company with a large market share was
under attack from the low end by an Asian competitor that was gaining 1-2%
market share per year. The Asian company dropped prices by 30% across the
board and the consumer products company began to lose market share rapidly.
Approach
The company used the QA tool to understand the
market structure and its key elements. Then having
identified the driving factors in the marketplace,
they created and explored their strategic option
space using the ESG tool. In the Strategy Evaluation
tool, they vertically listed the strategies that were
identified and horizontally listed their objectives to
use as evaluation criteria. They then rated each
strategy’s potential to meet each criteria in three
time horizons: 3 months, 6 months and 24 months.
Page 18
Strategy Evaluation
Advanced Users
Settings can be changed to display Double-click
results in different ways. Double-click anywhere inside
the pane to
anywhere inside the pane and a dialog change settings
box will appear.
Check any one to see results for that
single time horizon, or check any two or
all three to view aggregated results.
disaggregated view.
3. Ranking: Compares between the
strategies, summed over all criteria.
4. Compare: Allows a comparison
between a chosen strategy versus
any other chosen strategy or
strategies.
Page 19
Sequence Assessment
Overview
Probabilities of various outcomes should be
anticipated in order to reach the most desirable
outcome. The Sequence Assessment(SA) tool
supports the process of defining risks or
implementation hurdles and assigning probabilities
to those events. This process enables one to
understand the path to potential outcome and
allows analysis of critical intervention points
that influence end results.
Getting Started
Create a new Sequence Assessment file:
1. Click the SA icon:
2. Click the Save icon:
3. Assign a file name no longer than 8
characters under the appropriate folder
4. Click OK
Page 20
Sequence Assessment
Page 21
Sequence Assessment
Analyze
View probability of outcome:
-Select Event>Show Probabilities
Page 22
Sequence Assessment
Example
Situation
A multi-national, consumer products company with a large market share was
under attack from the low end by an Asian competitor that was gaining 1-2%
market share per year. The Asian company dropped prices by 30% across the
board and the consumer products company began to lose market share rapidly.
Approach
The company used the QA tool to understand the market structure and its key
elements. Then having identified the driving factors in the marketplace, they
created and explored their strategic option space using the ESG tool. With the
Strategy Evaluation tool, they rated the identified strategies against their
criteria in three time horizons.
The best performing strategy was then
subjected to a reality check using the
Sequence Assessment tool to anticipate
risks and estimate success probabilities.
The outcome of the risk check is displayed
to the right. The results indicate that
although the strategy has a 12% chance
of backfiring and 20% being blocked, the
success ratio is quite high at 68%, giving
them enough confidence to move forward
with the “Trade Exclusives” strategy.
They also identified a few risk levers through
the Back Track analysis that can help increase the success ratio.
Next Step
The company now has developed a strategy that will serve as a base for their
future marketing efforts. In addition, they have captured the knowledge in an
interactive format, so that this knowledge will be stored as systemic knowledge in
its proper context, and not merely as data or information. The conclusions can be
rationally justified to their Board and all elements of the reasoning process can be
revisited, interrogated and updated very easily at any time in the future.
Advanced Users
Shortcuts:
1. Copy boxes: while holding down the Control key, highlight the box to be
copied and drag it to another place on the screen
2. Link boxes: while holding down the Shift key, highlight the source box and
drag it to the destination box to link them
Page 23
Document Master
Overview
The Document Master (Documaster) tool represents the
reasoning architecture used in addressing a complex
problem. It enables one to navigate through the
thinking process while retaining an overview of the entire
structure. The icon representing each tool in the Docu-
master provides direct access to the tool application.
Getting Started
Create a new Documaster file:
1. Click the Documaster icon: A dialog
box with the default name “dcm.ici” will
appear
2. Choose a folder where all the files from this
project should reside. If necessary, go to
Windows Explorer to create a new folder.
3. Accept the default file name or assign a file
name no longer than 8 characters, after
having clicked on the appropriate folder
(the picture representing this folder should
show as being open in the dialog box).
4. Click OK.
Page 24
Document Master
Create Links:
1. Highlight the box from where you want
the link to originate, click the Link
icon: and highlight the destination
box.
2. The default color of the arrow is dark
Tip Use red arrows to indicate
blue. To assign a different color, core reasoning architecture
double click on the link and click color. and blue arrows to indicate
input to or output from the
This will be the arrow color until it is
core
changed again. The thickness of the
arrow can also be adjusted by increasing
Use different strength values
or decreasing the strength value. only if it adds significant
clarity to the reasoning
Remove Boxes and Links:
1. Highlight the box and click the remove
box icon:
2. Click the remove link icon: and point
the arrow over the link.
Page 25
Document Master
Refresh files:
1. If new files were created while the
Documaster file was open, click
Refresh Files icon: The list of Refresh Files icon =
files will be updated and the new file
Open Files icon =
names will be displayed by clicking
the View Both icon:
Example
Situation
A multi-national, consumer products company with a large market share was
under attack from the low end by an Asian competitor that was gaining 1-2%
market share per year. The Asian company dropped prices by 30% across the
board and the consumer products company began to lose market share rapidly.
Approach
Throughout this handbook, you
will see how this company used
Think Tools® to identify the
driving factors in their market
place, generate potential
strategies based on those key
factors, evaluate each of those
strategies against one another,
and finally run a risk check to
determine the probability of the
chosen strategy’s success.
The above diagram visually represents the reasoning architecture of the exercise
conducted by the consumer products company. By double-clicking each box, we
are able to see all elements of the reasoning process that led to the selected
strategy. Capturing all the knowledge generated in an interactive, dynamic “tool-
based” format allowed the company to store “knowledge as knowledge”, and not
simply as static information.
Page 26
Document Master
Page 27
Interests, Goals and Priorities
Overview
The Interests, Goals and Priorities (IGP) tool
helps define interests and goals and prioritize
them by understanding their relative
importance over time. IGP also allows one
to assess and visualize the performance of
the current strategy in fulfilling the outlined
interests and goals.
Getting Started
Create a new IGP file:
1. Click the IGP icon: Tip Use IGP in the beginning
and again at the end to
2. Click the Save icon: track changes in the
3. Assign a file name no longer than 8 objectives fulfillment with
the current strategy versus
characters under the appropriate folder
the new strategy
4. Click OK
List goals or success criteria:
1. Click the Add icon:
Are the goals or success
2. Enter a brief description of the goal criteria clearly defined?
in the Criterion field. What are they?
List goals that are on the same
strategic level, otherwise list Avoid listing goals that are
not on the same strategic
sub-goals (see Advanced Users level
for the sub-goal description).
3. Enter further description as necessary
4. Assign a color by clicking the down arrow
5. Click OK
6. Continue steps 1-5 for additional
goals. Make sure that the first line Tip It is easier to have all goals
listed before assigning
labelled Interests, Goals and relative importance
Priorities is highlighted as you
click the Add icon.
7. To change the order of the goals, highlight
the goal, then drag and drop on the first line
Page 28
Interests, Goals and Priorities
Analyze
Once the fulfillment has been assessed
in each time frame, the outcome can be
viewed:
Short-term
Click the View icon: to display a pie
chart that compares all goals against one
another based on the relevance and
the fulfillment input.
Mid-term
Page 29
Interests, Goals and Priorities
Advanced Users
If it is difficult to assign a value to a
goal because the goal constitutes a
number of different components, then
create sub-goals:
1. Highlight the main goal
2. Click the Add icon:
ST MT LT
3. Enter a brief description of the sub-goal
in the Criterion field, as has been done
for the main goal
4. Additional sub-goals can be entered as
long as the main goal is highlighted
when clicking the Add icon
5. The value of the main goal can be
shown to reflect the arithmetic mean
of the sub-goals. Double-click on the
main goal, then click Calculate.
Tip Use the time dimension for
dimensions more befitting
each situation (e.g.
Time dimension can be replaced by other Benchmarking, different
dimensions, such as benchmarking: view points, employment
1. Consider “Best Practice” as the full pie satisfaction, etc.)
with maximum values of ten
2. Rate organization and 2 main competitors My Company
in a snapshot mode.
[Use the three columns, ST, MT and LT Competitor 1
for Organization, Competitor 1 and
Competitor 2]
Competitor 2
Benchmarking
Page 30
Interests, Goals and Priorities
Shortcuts:
Once the values have been assigned, the
fulfillment of the goal can be fine-tuned
directly in the pie chart. Click on the edge
of the segment and drag. Corresponding Click and drag
value is displayed in the bottom right corner.
Page 31
Phase Space Migration
Overview
The Phase Space Migration (PSM) tool is used for the
dynamic visualization of large volumes of information
over time. The user can select up to four dimensions
of information which is displayed in video mode over
the course of a few seconds. This allows the user to
easily observe and extract significant trends and/or
anomalies.
Getting Started
Create a new PSM file:
1. Click the PSM icon:
2. Click the Save icon:
3. Assign a file name no longer than 8
characters under the appropriate folder
4. Click OK
Page 32
Phase Space Migration
Page 33
Phase Space Migration
Export to PSM
1. Once all entries have been made,
highlight the entire gray area
2. Go to the toolbar and click on TT-Export If TT-Export is not on your
3. Choose Phase Space Migration (PSM) Excel toolbar, install it by
4. When the dialog box appears, enter OK selecting Tools>Add-
Ins>Browse>
Click Ici-exp.xla>OK
Analyze
Play video representation:
1. Click the Start Icon:
- The data will play from the
beginning date of entry
Page 34
Idea Manager
Overview
The Idea Manager (IM) is a brainstorming tool enabling
one to view complex multidimensional relationships
in a three dimensional space. Through this visual
representation, complex interactions can be
envisioned and clusters of associated items
can easily be identified.
Getting Started
Create a new Idea Manager file:
1. Click the IM icon:
2. Click the Save icon:
3. Assign a file name no longer than 8
characters under the appropriate folder
4. Click OK
Add Items:
1. Click the New Item icon: What are the key factors or
2. Click Add Item items under evaluation?
3. Assign a different color from the default
red, only you want to help this item
stand out from the rest or if it helps to
better visualize interactions
4. Enter a short name, the full name and
its description, if helpful
5. Continue steps 2 & 3 to add additional
items
Add Aspects:
Which aspect or whose
1. Click the Aspects icon: aspect needs to be
2. Click Add Aspect considered?
3. Enter a short name, the full name and
its description, if helpful
4. Continue steps 2 & 3 to add additional
aspects. e.g. the Board’s aspect,
Investors’ aspect, the Project team’s
aspect, etc.
Page 35
Idea Manager
Assign connections:
1. Click the Connections icon:
2. All the listed items will be shown
once in the left box, and again in the
right box, except for the first item
3. For the two highlighted items,
evaluate and assign a correlation
value by considering their level of
fit
4. For each of the item in the left box, If the two highlighted items have:
-a high degree of fit, assign a value
complete the evaluation process
from 6 to 10
for all the items in the right box -a low degree of fit, assign a value
by moving down and highlighting from 1 to 5
the items to be evaluated -a degree of friction, assign a value
from –1 to –10
-no fit, assign a rating of 0
Analyze
Choose an aspect and optimize:
1. Click the Show Aspects icon:
2. Click on the aspect that you want to see
3. To combine aspects, select the different
aspects that you want to combine
4. Click the Optimize icon:
Page 36
Creating Screen Shots
1. With the Think Tools file open, press the “PrtSc” Key on your computer
keyboard (not computer screen)
2. Open PowerPoint
5. Trim the screen shot as necessary with the Crop icon: from the Picture
Toolbar
-The Picture Toolbar can be found under: View>Toolbars>Picture
Create a hyperlink:
7. In the “Slide Show” mode, move the mouse over the screen shot and click on
it
8. A dialog box will appear asking whether or not to open the file. Click Yes.
Page 37
Think Tools AG
Genferstr. 21
For more information: TT, Inc. TT AG
Zürich, Switzerland
e-mail: support@thinktools.com TT Asia
Tel: +41-1-204 60 10
Internet: www.thinktools.com Fax: +41-1-204 60 19
TT SA