Chapter 4 - Creative thinking Flashcards
Distinguish between problem solving and decision making
Decision making
- Decision making is often done by one person or by senior management – authoritarian
- It is the practise of considering a number of existing alternatives and deciding which one is the best solution
Problem Solving
- Problem solving requires creative thinking in a process that evaluates alternatives and uses research to solve a problem
- Problem solving is frequently carried out by a group and is therefore more inclusive than decision-making
- It encourages creative thinking to generate innovative solutions which can be implemented and evaluated
Decision-making does form part of the problem solving, since decisions need to be taken at each step of the problem-solving process
Name/Outline/Apply the steps in problem-solving from given scenarios/case studies
Step 1 Identify the problem
- You must know and truly understand what the problem is
- Step1 creates the focus of the process
- In order to get a true sense of the problem you should get the opinions and suggestions of everyone involved
- Collect as much information as possible and really study the problem
- Create information/ determine factors that potentially cause the problem
Step 2 – Define the problem
- Once you have an in-depth knowledge and understanding of the problem, you need to generate a definition that is as concrete and specific as possible
Step 3 – Formulate a strategy
- The strategy is the plan of action and it requires further investigation before a decision can be reached
- You need to use problem-solving techniques to find as many feasible solutions as you can
- You need to look at solutions that have been used before and evaluate how effective they were
- Team-work is often the best tool to use when trying to formulate possible solutions
- Once you have identified and generated a number of solutions you must decide on one strategy
Step 4 – Implement the strategy
- It is time to put the strategy in action, but this too takes planning
- You need to plan the steps required to implement strategy
- You need to ensure that you have the necessary resources to implement it: money, equipment, people, time….
Step 5 – Allocate the resources
- This forms part of the implementation process
- You ensure that the necessary equipment has been purchased and the people allocated for implementing the strategy
- You need to communicate to the employees involved so that they understand the strategy and know who will do each job and in what order and time-frame
- This takes very good planning, communication and organisation skills
Step 6 – Monitor the problem solving
- Once the strategy has been put in place, you need to monitor whether or not it has solved the problem as defined in step 1
- If you find that it has not worked, or is less effective than you anticipated, you need to be flexible enough to return to step 3 and come up with an alternative strategy
- Difficult problems often require a trail-and-error approach and you need to persevere until the best solution is found
Step 7 – Evaluate the problem solving
- Whether the strategy is successful in solving your problem or not it is useful to evaluate the process that was used to reach the strategy
- You need to decide if the process was effective or whether it could be made more effective in some way.
- You need to analyse what lessons can be learnt from the problem you were facing and whether those lessons can be applied to other areas of the business
- It is useful to get the views of the people involved
- Apply creative thinking skills to solve complex business problems
- Complex business problems have some typical characteristics that can be summarised as follows
- Lack of clarity of the situation i.e. often one can see that there is a problem, but there are a number of factors which influence the situation
- Multiple goals i.e. work more efficiently, save on expenses and increase profits
- Many factors which influence each other i.e. to increase sales the budget must be increased, but the finance department cannot allocate funds
- Limited time: i.e. problems get worse over time and more complex with more risk to lose money
Identify the business problem and how can it be solved
Uncertainty
- Uncertainty: Nobody can predict the future and they therefore tend to focus on short-term solutions
The problem to be solved is how to balance the need for a short-term focus with the need for informed, long-term strategies
Identify the business problem and how can it be solved
Globalistation
- Globalisation: The increased participation of all nations in the world economy
The problem to be solved is how to better understand international markets and cultures through better information-gathering and better analysis of the information
Identify the business problem and how can it be solved
Innovation
Innovation: Ideas that are developed very quickly can change the core business of an organisation
The problem to be solved is how to become more innovative while still maintaining control over the organisation
Identify the business problem and how can it be solved
Regulation
Regulation: Introducing new measures to regulate an industry can have a huge impact on cost effective delivery
The problems to be solved are how to understand the meaning of regulation in the particular industry, its implications for the business, and to develop the skills necessary to deal with it
Identify the business problem and how can it be solved
Technology
Technology: The changing environment makes it difficult for companies to make choices
The problem to be solved is how to develop a long-term technology strategy while remaining flexible enough to take advantage of unforeseen technology developments
Identify the business problem and how can it be solved
Diversity
Diversity: All workplaces are diverse, and values and approaches differ within cultures
The problem to be solved is how to understand what diversity means and then to foster the expansion of differing ideas and viewpoints while ensuring cohesion and teamwork
Identify the business problem and how can it be solved
Complexity
Complexity: External factors often bring complex processes which can hamper growth and “business as usual”
The problem is how to develop better systems-thinking capabilities so that business models, processes, products and services can be designed with maximum ease
Identify the business problem and how can it be solved
Information overload
Information overload: Information is available to all in huge quantities. Finding what is useful to the company can be challenging
The problem to be solved is how to deal with this mountain of information with both technology and human know-how, and to convert this information into company specific knowledge
Identify the business problem and how can it be solved
Supply chains
Supply chains: Where to find quality, cost-effective suppliers that can deliver on time
The problem to be solved is how to develop a supply-chain strategy that ensures the lowest costs and that minimises the risk of disruptions
Identify the business problem and how can it be solved
Problem Solving
Problem-solving: Problems have increased in complexity and quantity at all levels of an organisation
The problem to be solved is how companies can develop problem-solving capabilities at all levels in the organisation
Explain the benefits/advantages of creative thinking in the workplace
- It improves the quality of solutions to business problems
- It stimulates profitable new ideas for products, marketing campaigns and public relations, among other things
- It motivates workers and improves their skills and makes for a happier workforce
- It improves productivity
- Better/Unique/ ideas/solutions is generated.
- Leads to more positive attitudes.
- Have a feeling of great accomplishment.
- Keep up with fast changing technology.
- Stimulates brain function of employees/managers.
Steps & Impact
Delphi
Steps
- A panel of carefully selected experts is invited to participate in the process
- A questionnaire is distributed to the panel
- The panellists respond to the questionnaire individually and return it to the organisation
- Responses are summarised in a feedback report, but the responses are anonymous
- The feedback report and a second set of questions related to the feedback are sent to the panellists
- The panellists read the feedback report and decide if they wish to change their initial ideas, suggestions or solutions they then complete a second questionnaire
- A final summary and feedback report is prepared. The idea is that consensus will be reached through this method and the best solution will be found
Advantages
- Experts give anonymous suggestions so may feel free to be more creative
- Experts can feed off each other’s ideas
Disadvantages
- Suggestions may not converge so consensus may not be reached
