3 Structuring Policy Problems

Learning Outcomes
 Understand the process of problem structuring
 Contrast relatively well-structured, moderately
structured, and ill-structured problems
 Describe Type III errors in policy analysis
 Learn how to conduct a stakeholder analysis
 Use different methods of problem structuring with
a problem of your choice
 POLICY
PERFORMANCE
evaluation forecasting
problem
structuring

OBSERVED POLICY EXPECTED

OUTCOMES PROBLEMS OUTCOMES

problem
structuring
monitoring recommendation

PREFERRED
POLICIES
 Complex Problems
 We fail more often because we define the wrong problem,
than because we get the wrong solution. We commit
Type III errors: Defining the wrong problem.
 Type III errors can be fatal—”Wrong problem, wrong
solution!”
 Problems are formed by the interaction of thought and
external environments—they are interdependent,
subjective, artificial, and dynamic.
 Problems are wholes not merely parts—an analysis of parts
of a problem may miss the whole.
 Policy makers tend to avoid rather than benefit from
conflicting perspectives—they prefer consensus.
 Three Types of Problems
Problem Well Moderately Ill
Element Structured Structured Structured
STAKEHOLDERS One Several Many

ALTERNATIVES Known Partially Known Mostly Unknown

OUTCOMES OF Known Partially known Mostly Unknown

ALTERNATIVES

PROBABILITIES Objective & Objective & Subjective &

OF OUTCOMES Determined Uncertain Risky

VALUE (UTILITY) Unanimity Consensus Conflict

OF OUTCOMES
 Identifying Stakeholders
 A stakeholder is any individual or group that
affects/and or is affected by a policy. Stakeholders
may be identified by name and title, sampled with
little error, prioritized, and queried indirectly or by
simulation for their perspectives of a problem.

 Internal versus external

 Formal position
 Reputation for influence
 Functional role
 International versus domestic
 High Influence

HIGH
PRIORITY

High Stakes Low Stakes

Low Influence
Problem Structuring with Multiple
Perspective Analysis

 Personal Perspective. Individual interests,

values, character …
 Institutional Perspective. Bureaucratic politics,
incrementalism, interrupted equilibrium …
 Technical Perspective. Benefit-cost analysis,
econometrics, microeconomic policy analysis…