Opportunity Solution Tree (OST)

As professionals, we're constantly bombarded with decisions. Which market should we enter? What product should we build next? How do we optimize our operations for maximum return?

Without a clear framework, these choices can feel like navigating a dense, dark forest. The Opportunity Solution Tree (OST) is a powerful, visual tool that brings clarity, alignment, and a laser focus to problem-solving and value creation.

Coined by Teresa Torres, the OST is a practical approach to structured thinking that can transform how teams identify, explore, and validate solutions. Forget jumping straight to solutions based on a gut feeling. The OST encourages a more deliberate, evidence-based journey from problem to validated impact.

What Exactly Is an Opportunity Solution Tree?

The OST is a mind map that visually represents the connection between a desired outcome, the opportunities that prevent or contribute to achieving that outcome, and the solutions that address those opportunities. It's a top-down, cascading structure that looks something like this:

• Desired Outcome (Root): This is your ultimate goal. It could be Increase Revenue by 15% or Reduce Operational Costs by 10%. Strategically, it might be Become the Market Leader in X Segment or Enhance Brand Loyalty. This must be a measurable, impactful objective.
• Opportunities (Branches): These are the unmet user needs, pain points, or desires that, if addressed, will contribute to achieving your desired outcome. They are problems to be solved, not solutions. For example, if your outcome is Increase Revenue, an opportunity might be Customers find our pricing structure confusing, or Our onboarding process has a high drop-off rate. The key here is to identify multiple, distinct opportunities that cascade from your main outcome.
• Solutions (Leaves): These are the potential ways you could address a specific opportunity. For Customers find our pricing structure confusing, solutions could include Develop a simplified pricing page, Offer a pricing calculator, or Implement a guided sales flow. Critically, for each opportunity, you should brainstorm multiple potential solutions.
• Experiments (Roots of Solutions): While not always explicitly drawn as separate nodes, the OST implicitly encourages thinking about how you'll validate each solution. Before investing heavily, what small, low-fidelity experiments can you run to test the viability and desirability of your proposed solution? This is where the continuous discovery habit truly shines.

Why is the Opportunity Solution Tree Important?

1. Ensures Outcome-Driven Thinking: No more solution-first approaches. The OST forces teams to start with the why – what are we trying to achieve? This aligns everyone around a shared objective and prevents wasted effort on initiatives that don't move the needle.
2. Uncovers Root Causes: By breaking down outcomes into opportunities, you're encouraged to delve deeper into the underlying problems rather than just superficial symptoms. This leads to more effective and sustainable solutions.
3. Fosters Holistic Problem-Solving: The tree structure allows you to see the interconnectedness of various opportunities and solutions. You might discover that addressing one opportunity could positively impact several others.
4. Promotes Strategic Alignment: When everyone can visually see how their work contributes to the overarching strategic goals, it enhances understanding, collaboration, and buy-in across departments (e.g., product, marketing, sales, finance).
5. Encourages Iteration and Experimentation: The OST naturally lends itself to a build-measure-learn cycle. By brainstorming multiple solutions and prioritizing experiments, you reduce risk and learn faster, a crucial advantage in fast-moving markets.
6. Optimizes Resource Allocation: With a clear understanding of opportunities and potential solutions, finance teams can make more informed decisions about where to invest capital and allocate resources for maximum impact. You can prioritize opportunities that offer the highest leverage and solutions with the best return on investment (ROI).
7. Enhances Communication: The visual nature of the OST makes it an excellent communication tool. It allows stakeholders to quickly grasp complex strategic pathways and understand the rationale behind specific initiatives.

How to Build Your Own Opportunity Solution Tree

1. Define Your Desired Outcome: Start by clearly articulating your measurable, impactful outcome. Make it SMART (Specific, Measurable, Achievable, Relevant, Time-bound).
2. Identify Opportunities Through Discovery: This is where the discovery in continuous discovery habits comes in. Don't guess. Engage with customers, analyze data, conduct interviews, and observe behaviors to uncover genuine pain points and unmet needs. Ask why repeatedly to dig deeper.
3. Brainstorm Solutions for Each Opportunity: Once you have a solid understanding of the opportunities, start ideating. Encourage divergent thinking – no idea is too silly at this stage. Think broadly about how you could solve each problem.
4. Prioritize and Select Solutions: Not all solutions are created equal. Consider factors like impact, feasibility, cost, and alignment with your strategic capabilities.
5. Design Experiments: For your chosen solutions, what's the smallest, quickest way you can test your assumptions? Think about prototypes, A/B tests, user interviews, or landing page tests.
6. Learn and Iterate: Based on your experiment results, decide whether to pivot, persevere, or stop. The OST should evolve as you learn.

The OST in Action: Example

Let's imagine your desired outcome is: Increase Average Revenue Per User (ARPU) by 20% in the next 12 months.

• Outcome: Increase ARPU by 20% in 12 months.
  • Opportunity 1: Users don't understand the value of premium features.
    • Solution A: Redesign in-app onboarding for premium features.
      • Experiment: A/B test new onboarding flow with a small user segment, track feature adoption.
    • Solution B: Create targeted email campaigns highlighting premium benefits.
      • Experiment: Send email campaign to a segment of non-premium users, track conversion rates.
  • Opportunity 2: High churn rate among new users.
    • Solution C: Implement a dedicated customer success outreach program for new users.
      • Experiment: Pilot program with 50 new users, track 30-day retention.
    • Solution D: Enhance initial product experience to demonstrate immediate value.
      • Experiment: User testing on initial product experience, track sentiment and task completion.
  • Opportunity 3: Limited upsell opportunities for existing users.
    • Solution E: Introduce tiered pricing structure with clear upgrade paths.
      • Experiment: Test new pricing page with a focus group, gather feedback on clarity and perceived value.
    • Solution F: Offer personalized recommendations for complementary products/services.
      • Experiment: Implement a recommendation engine for a small user group, track click-through and conversion.

Conclusion

The Opportunity Solution Tree empowers leaders to move beyond reactive problem-solving to proactive value creation.

By fostering deep understanding of customer needs, encouraging iterative learning, and ensuring alignment around measurable outcomes, the OST is a valuable tool for problem solving and growth.