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Problem Solving & Decision Making

Program Overview
Learning Objectives
• Apply problem solving steps and tools
• Analyze information to clearly describe problems
• Identify appropriate solutions
• Think creatively and be a contributing member of
a problem solving team
• Select the best approach for making decisions
• Create a plan for implementing, evaluating, and
following up on decisions
• Avoid common decision-making mistakes
Definitions
Defining Problem Solving and Decision Making (II)

Albert Einstein is quoted as saying that if he had


an hour to save the world, he would spend fifty-
five minutes defining the problem and only five
minutes finding the solution.
Six Problem-Solving Steps
The most effective method uses both rational and
intuitive or creative approaches. There are six steps in
the process:
• Identify the problem
• Search for alternatives
• Weigh the alternatives
• Make a choice
• Implement the choice
• Evaluate the results and, if necessary, start the
process again
Identify the Problem
Root cause analysis (RCA)
5 Whys
Step 1. Assemble a Team
Step 2. Define the Problem
Step 3. Ask the First "Why?"
Step 4. Ask "Why?" Four More Time
Step 5. Know When to Stop
Step 6. Address the Root Cause(s)
Step 7. Monitor Your Measures
Needed Skills
1- Be an Active Listener
2- Use your Leadership Skills
3- Don’t Be Detective
Fish Bones
Fish bones and 5 Ways
1- The strength of the fish bone diagram is that it
allows you to focus on specific cause categories,
the Point of Cause (POC)
Point of Cause (POC) - Defect
6M
Manpower - causes are in humans, people - sense of responsibility and
disciplines

Machines - causes are in equipment, such as machinery, computers,


tools, instruments, technology

Materials - causes are in defect or material properties

Methods - causes are in the rules, regulations, laws or standards –


workflow.

Management - causes are in improper management

Mother-nature.: Environment: Humidity – Temperature – Lighting - Noise


The First Why: Starting your analysis

the Methods the company has


employed.
The Second Why

Why question: Why did employees use manual calculations?


Answer: They are unable to use complicated Excel formulas.
The Third Why

Why question: Why did management not anticipate the lack


of skill?
Answer: There was insufficient thought put into long-term
planning.
PDCA Cycle is golden cycle for KAIZEN
PDCA concept for productivity management, and
continuous quality improvement of process and
products.

1- Plan is to establish objectives and process or countermeasures


with expected outcome based on the past performances or future
forecasting of work
2- Do is to implement the processes or countermeasures planed.
3- Check is to measure the effectiveness or achievement of
processes or countermeasures planed between the actual results
and expected results to ascertain any differences.
4- Act is to analyze the differences to identify the causes of “Gap”,
and take necessary action to improve changes
Search for alternatives
Brainstorming
The Problem Solving Toolkit
Creative Thinking Methods (II)

Before Brainstorming
• Define your purpose
• Choose the participants
• Change the environment
• Design an informal atmosphere
• Choose a facilitator
Session Five:
The Problem Solving Model
Phase Two (I)

Creative Thinking Methods: Brainstorming


Balanced Scorecards
Balanced Scorecards
The strategy map links intangible assets and critical processes to the
value proposition and customer and financial outcomes
Balanced Scorecard

Financial Perspective
“If we succeed, how will we look to our stakeholders?”

Customer Perspective
“What do our customers expect from us?”

Internal Perspective
“To satisfy our customers, at which business processes
must we excel?”

Learning and Growth Perspective


“To be successful, how must our organization learn and improve?”

Copyright © 2015 Pearson Education, Inc. 8-24


Weigh the alternatives
Once a number of ideas have been generated, you need to assess
each of them to see how effective they might be in addressing the
problem. Consider the following factors:
• Impact on the organization
• Effect on public relations
• Impact on employees and organizational climate
• Cost
• Legality
• Ethics of actions
5- Make a choice
6- Implement the decision-
7- Evaluate the outcome
Decision Making
Strategic Management
It is all about enhancing the organizational
Competitive Advantage

introduction 27
Competitive Advantage
• A competitive advantage exists
when the organization is able
to deliver the same benefits
as competitors but at a lower cost
(cost advantage), or deliver
benefits that exceed those
of competing products
(differentiation advantage).
• Thus, a competitive advantage enables
the firm to create superior value for its customers and
superior profits for itself.

Competitive Advanatge 28
The Four Phases of Strategic
Planning
Define vision & mission statements
• Phase 1 Strategy Formulation Define organizational values
Conduct a SWOT and TOWS Analysis
• Phase 2 Strategy Development Establish long-term objectives
Identify strategies to achieve
objectives

Establish short-term objectives


• Phase 3 Strategy Implementation Develop action plan
Allocate resources
Motivate employees

Review strategies
• Phase 4 Strategy evaluation
Measure performance
Take corrective action
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Phase 1: Strategy Formulation
• Develop a vision and a mission statement( page 55)
- Vision Statement:
◦ It is a guiding image of the organization’s desired future.
◦ It reflects what leadership envisions for the organization
“What do we want to become?”

- Mission Statement:
◦ Specifies the activities and what course management will
pursue in the future
◦ It specifies how the organization will achieve the vision

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Swotting Up
SWOT Analysis (I)

• Solving business problems can be a bit different


than everyday dilemmas.
• SWOT stands for the strengths, weaknesses,
opportunities, and threats facing your company.
• The strengths and weaknesses are usually
considered to be internal.
• The opportunities and threats are generally
external to the company.
Swotting Up
SWOT Analysis (II)
Swotting Up
SWOT Analysis (III)
 Your company and its strengths and its weaknesses
 Your products and/or services and their strengths and
weaknesses
 The community and what is currently going on
 Your primary and secondary target markets
 The competition and what they are doing
 The external forces that will affect your business
 Opportunities that are available to you and your company
 Environment and market factors that could threaten your
business
Swotting Up
Individual Analysis
CIA Vision
• We will provide knowledge and
take action to ensure the
national security of the United
States and the presevention of
American life and ideals.

Ch 2 -35
Vision & Mission
CIA Mission
• We are the eyes and ears of the nation and at
times its hidden hand. We accomplish this
mission by:
– Collecting intelligence that matters.
– Providing relevant, timely, and objective all-source analysis.
– Conducting covert action at the direction of the president to preempt threats
or achieve United states policy objectives.

Vision & Mission 36


Goals
• Identifications – the overall objectives of
a business that have been established
by its management and communicated to
the employees.
• Long-range intentions for operating
Time Management
Making Decisions
What it Means (I)

Ground Rules
• Encourage everyone to participate.
• Encourage new ideas without criticism.
• Build on each other’s ideas.
• Use data to facilitate problem solving.
• Remember that solving problems and making
decisions is a creative process.
Making Decisions
Types of Decisions (I)

• Autocratic decision
• Consultative decision
• Group decision