1. Problem Solving / Decision MakingChapter 1 - 1 Problem Solving / Decision Making Kepner-Tregoe The New Rational Manager Chapter 1

2. Problem Solving / Decision MakingChapter 1 - 2 Chapter 1 Contents u Organizational Effectiveness u Four Basic Patterns of Thinking u Basic Patterns in an Organizational Context u Some Thoughts on Teamwork u Applying the Model u Rational Management

3. Problem Solving / Decision MakingChapter 1 - 3 Organizational Effectiveness u Sadly, most of organizations today do not operate as integrated enterprises l disparate effectiveness & efficiency l overlaps & gaps l lack of communication l synergism & counter productivity

4. Problem Solving / Decision MakingChapter 1 - 4 Kepner-Tregoe u K-T have been in the business of organizational improvement for over 30 years u Our text documents the results of K-T’s experience in this area through research, trial, error, and innovation l management skills l installation

5. Problem Solving / Decision MakingChapter 1 - 5 K-T’s Groups vs Teams u Groups are characterized by: l understanding l sensitivity l adaptation l common regard l psychological benefit u There is a closeness and an intention to be mutually supporting

6. Problem Solving / Decision MakingChapter 1 - 6 K-T’s Groups vs Teams u By contrast, Teams are characterized by: l varying expertise l varying methods l common goal l “tolerate one another enough to work closely together” u The goal is “to win” not necessarily to become friends

7. Problem Solving / Decision MakingChapter 1 - 7 A Management Team u Entrepreneur - aggressive, driven, quick u Finance - analytically focused, thorough u Sales - enthusiastic, sometimes impatient u R&D - balance between feasible and desirable u Production - reality driven

8. Problem Solving / Decision MakingChapter 1 - 8 The Paradox u We need this diversity on a management team to provide the necessary expertise to make the organization successful. u BUT, with so many different mindsets, how can we coordinate their efforts in an effective and efficient way.

9. Problem Solving / Decision MakingChapter 1 - 9 The K-T Solution u We need simple, common, sensible guidelines and procedures expressed in commonly understood language. l for gathering, sharing, and using information l for solving problems l for making decisions l for protecting the organization’s future

10. Problem Solving / Decision MakingChapter 1 - 10 A BIG Plus to the K-T Approach u Skills for good PS/DM are transferable l sports team analogy (W pg 3; B pg 15) l unnamed case example (W 4-5; B 16-17) l Installing Rational Process case (W 5-6; B 17-18)

11. Problem Solving / Decision MakingChapter 1 - 11 The Human Nature Aspect u People generally resist change u BUT, people will embrace change that seems good for them and the things they care about. u A system for change must l facilitate introduction of ideas l provide means for implementation l offer rewards

12. Problem Solving / Decision MakingChapter 1 - 12 Four Basic Patterns of Thinking l READ & THINK CAREFULLY about what this overhead says - it is the crucial foundation of the K-T approach. l EVERY productive activity is related to one of four basic patterns of thinking. (1) What is going on? (2) Why did this happen? (3) Which course of action should we take? (4) What lies ahead?

13. Problem Solving / Decision MakingChapter 1 - 13 The Four Thinking Patterns Just How Important Are They? u These four patterns have not altered substantially since the emergence of the human race. u They are universally applicable to any situation. u Survival is guaranteed by the ability to use these patterns.

14. Problem Solving / Decision MakingChapter 1 - 14 What Is Going On? Assessing and Clarifying u This is the most important thinking pattern u It allows us to examine a confusing situation and: l assess l clarify l sort out l impose order

15. Problem Solving / Decision MakingChapter 1 - 15 Why Did This Happen? Relating Cause to Effect u Assign meaning to what we observe by relating events to outcomes. u Assign meaning by relating causes to effects. u Allows us to move from reactive to proactive.

16. Problem Solving / Decision MakingChapter 1 - 16 Which Course of Action? Making Choices u Allows us to make reasoned choices. u Three major activities are involved: l Determination of purpose l Consideration of available options l Assessment of relative risks

17. Problem Solving / Decision MakingChapter 1 - 17 What Lies Ahead? Anticipating The Future u This future oriented thinking allows us to imagine and construe the future. u Closely related to the cause and effect thinking pattern. u There is much unfulfilled potential in this area.

18. Problem Solving / Decision MakingChapter 1 - 18 The Four Basic Rational Processes u Applying the four basic thinking patterns in an organizational setting leads to systematic procedures for using and sharing information about organizational concerns. u Known as the 4 basic rational processes, they are universally applicable regardless of cultural setting or content.

19. Problem Solving / Decision MakingChapter 1 - 19 The Four Basic Rational Processes u Situation Appraisal (Chapter 7) l What is Going On? u Breaks down complex into components u Separates relevant from irrelevant u Sets priorities and delegates responsibilities l Identifies u Problems to be solved u Decisions to be made u future events to be analyzed

20. Problem Solving / Decision MakingChapter 1 - 20 The Four Basic Rational Processes u Problem Analysis (Chapters 2 & 3) l Why Did This Happen? u Based on the cause-and-effect thinking pattern l Enables us to: u identify, describe, analyze, and resolve u situation in which something has gone wrong without explanation l Methodical means to extract relevant and useful information about a situation

21. Problem Solving / Decision MakingChapter 1 - 21 The Four Basic Rational Processes u Decision Analysis (Chapters 4 & 5) l Which Course of Action? u Based on the choice-making thinking pattern l Methodical means to examine: u the purpose of the decision u the available options u the risks of each alternative

22. Problem Solving / Decision MakingChapter 1 - 22 The Four Basic Rational Processes u Potential Problem (Opportunity) Analysis (Chapter 6) l What Lies Ahead? u Based on the anticipating the future thinking pattern l Methodical means to: u avoid possible negative consequences u turn situations to our advantage

23. Problem Solving / Decision MakingChapter 1 - 23 The Two Remaining Chapters u Chapter 8 l Application of Rational Management to human performance problems u Chapter 9 l Installing Rational Management within an Organization

24. Problem Solving / Decision MakingChapter 1 - 24 Team Work u All people possess the capacity to utilize the four basic thinking patterns l they are not necessarily used automatically l they are not all used equally well l they are not easily shared u We need to: l Raise the level of skill in thinking l Enhance the ability to share these skills

25. Problem Solving / Decision MakingChapter 1 - 25 Team Work u If you have not read the Hunting and Gathering case (W 16-18; B 27-29), be sure you do. l It is an interesting discussion of the rise and fall of team work.

26. Problem Solving / Decision MakingChapter 1 - 26 Applying the Model u We need: l a means to act as a team and yet maintain individuality l a means which can be used regardless of content l accurate communication with common understanding l PS/DM based on facts and data

27. Problem Solving / Decision MakingChapter 1 - 27 Rational Management u Rational Management means making full use of the thinking ability of the people in an organization l continuing process l individual payoff is great / organizational payoff is far greater l major change / major commitment l conscious use of common approaches expressed in simple, common language