1. 1-1 Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a Managerial Problem Solving by Wood Slides prepared by Robert Wood, Julie Cogin and Jens Beckmann Managerial Problem Solving Frameworks, Tools, Techniques Robert Wood Julie Cogin Jens Beckmann

2. 1-2 Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a Managerial Problem Solving by Wood Slides prepared by Robert Wood, Julie Cogin and Jens Beckmann Chapter 1 Thinking, Emotions and Problem Solving

3. 1-3 Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a Managerial Problem Solving by Wood Slides prepared by Robert Wood, Julie Cogin and Jens Beckmann Basic Components of Problems Current state Goal or desired state Set of operations or problem-solving steps Problem occurs if current state differs from goal state and means of achieving the goal are not readily available

4. 1-4 Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a Managerial Problem Solving by Wood Slides prepared by Robert Wood, Julie Cogin and Jens Beckmann Basic Components of Problems Problem-solving Phases 1. Problem identification 2. Solution generation 3. Solution evaluation 4. Implementation a)Planning steps: what needs to be done to implement solutions to achieve the goal b)Action steps: implement selected solution In complex and dynamic problems cycling back through the problem-solving and implementation planning may be required

5. 1-5 Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a Managerial Problem Solving by Wood Slides prepared by Robert Wood, Julie Cogin and Jens Beckmann Problem-solving Phases Problem Identification Purpose: Establish an understanding of the problem and a definition of the problem Involves clarification of current state of affairs (scope? dimension?) Involves diagnosis of potential causes of the problem Involves consideration of how broadly the problem should be defined – this influences the solution Involves consideration of whether the problem is defined in terms of a solution

6. 1-6 Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a Managerial Problem Solving by Wood Slides prepared by Robert Wood, Julie Cogin and Jens Beckmann Problem-solving Phases Solution Generation Purpose: Identify a range of possible solutions It is useful to generate more than one potential solution To allow for comparative assessment To predict quality of final solution chosen To combine different potential solutions

7. 1-7 Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a Managerial Problem Solving by Wood Slides prepared by Robert Wood, Julie Cogin and Jens Beckmann Problem-solving Phases Solution Evaluation Purpose: Evaluate how well the different potential solutions move you away from the current state and toward the desired state Best achieved by an explicit desired state, and an evaluation of the potential solutions against this target Evaluations require two predictions: 1. What effects or outcomes each solution may generate 2. How well the outcomes for each solution will satisfy your goals  Combination of these two judgments gives you an expected value of each option

8. 1-8 Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a Managerial Problem Solving by Wood Slides prepared by Robert Wood, Julie Cogin and Jens Beckmann Problem-solving Phases Implementation Planning and Execution Purpose: Plan for and execute the steps required to implement the chosen solution N.B. Solution and evaluation phase are not necessarily discrete or sequential – it is good practice to take account of the implementation phase during solution evaluation, e.g. consider cost or ease of implementation Also, implementation planning and execution may reveal the need to revisit solution generation and evaluation

9. 1-9 Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a Managerial Problem Solving by Wood Slides prepared by Robert Wood, Julie Cogin and Jens Beckmann Types of Problems Static vs. Dynamic Understanding the nature of the problem helps in deciding the problem-solving process and in ensuring you are solving the correct problem Static problems = one-off problems that go away when effectively solved. Solution analysis and steps with static problems move you from the current state to the desired state E.g. buying a car or completing an assignment Dynamic problems = those that recur over and over. These need to be solved as a series of static problems, or a process for solving them on an ongoing basis needs to be created E.g. inventory management and cash flow

10. 1-10 Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a Managerial Problem Solving by Wood Slides prepared by Robert Wood, Julie Cogin and Jens Beckmann Types of Problems Structured vs. Ill-structured The degree of structuring refers to how well the three components of the problem are understood Highly structured problems = those where the current and desired states, as well as the steps for moving between them, are clearly defined and understood Ill-structured problems = those with a lack of understanding at one or a combination of the three components Lack of understanding may be due to the nature of the problem, or to the problem solver not having the knowledge to solve the problem

11. 1-11 Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a Managerial Problem Solving by Wood Slides prepared by Robert Wood, Julie Cogin and Jens Beckmann Types of Problems Simple vs. Complex Complexity refers to the amount of information that has to be processed in order to solve the problem Common sources of complexity: Dynamics: how the components of a problem change over time independently of the problem solver’s actions Delays: lags in the effects of actions make it difficult to plan solutions Non-linear relationships between potential causes and effects Feedback loops: situations where an outcome from your actions (an effect) becomes a cause that influences the current situation, which results in the need for further action to solve problem

12. 1-12 Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a Managerial Problem Solving by Wood Slides prepared by Robert Wood, Julie Cogin and Jens Beckmann Thinking and Memory Processes Limitations and Biases Judgment heuristics = rules of thumb to simplify the definition of problems and the search for and evaluation of solutions Availability heuristic = use of information, definitions and solutions that are readily available (commonly, our own experience) rather than search for more options Representative heuristic = tendency to assume that the causes or solutions to problems have a similar form to the appearance of the problem Confirmatory bias = tendency to seek and accept information that confirms what we already believe and be resistant to information that challenges our beliefs

13. 1-13 Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a Managerial Problem Solving by Wood Slides prepared by Robert Wood, Julie Cogin and Jens Beckmann Thinking and Memory Processes Types of Thinking Divergent thinking includes mental operations leading to alternative definitions of the problem, alternative diagnoses, new hypotheses, new options, new criteria, etc Convergent thinking includes mental operations that reduce or minimise the amount of information to be consciously processed, e.g. by narrowing the definition of the problem and the elimination of options and criteria Strategic thinking refers to mental operations by which the problem solver moves into the conceptual space of a problem. Addresses three issues: 1.What are the expectations of external stakeholders? 2.Consider the future in which the solution will be implemented 3.What are the current strengths and weaknesses of the problem-solving unit?

14. 1-14 Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a Managerial Problem Solving by Wood Slides prepared by Robert Wood, Julie Cogin and Jens Beckmann Thinking and Memory Processes Values, Emotions and Conflict in Problem Solving Emotional reactions are a reflection of values and therefore are integral to the specification of goals and desired states Values = beliefs about what is right and wrong, and important and unimportant, e.g. what we believe is important is reflected in our goal/desired state Emotions can also influence the speed of information processing and attentiveness during problem solving Emotions can also lead to conflicts that interfere with effective problem solving