Business Question

PROBLEM SOLVING AND DECISION
MAKING
General – ‫عام‬
MGT – 312
Dr. Faisal Alhathal
MATERIAL PREPARED IN THESE SLIDE ARE MAINLY BASED ON “PROBLEM SOLVING AND DECISION MAKING”, JEFF BUTTERFIELD (2013)
ASSIGNMENT 1: HINTS
Q1: Write the problem statement about the above case. Problem statement
should include the followings:
[Marks 4]
[400-600 words]
a) Description and summary of the problem
b) Scope of the problem
c) Consequences of the problem
d) The methods for resolving the problem in the above case?
General – ‫عام‬
OBJ. 4: DEVELOPING
EFFECTIVE PROBLEM
STATEMENT
• Describe ideal situation: where you
want to be!
Do’s & Don’ts
Guideline
Do
Purpose
–
Audience
• Summarize the problem
–
–
• Identify symptoms
• Describe the size, scope of problem
Content
–
• Identify consequences; costs
–
HINT
General – ‫عام‬
A problem statement is clear,
concise description of the
problem and the effect you
expect from the solution
–
–
Don’t
Describe a single
problem
Use objective measures
–
Provide the problem
statement to the
responsible person
Involve others who are
helping to solve the
problem
–
Don’t give the problem
statement to everyone
in the company!
Identify the ideal
situation from the point
of view of your
audience
Describe the conditions
that prevent it
Identify symptoms
Describe size and scope
of problem objectively!
Identify real
consequences of not
doing anything!
–
List every condition or
symptoms;
Offer opinion about
possible consequences;
focus on FACTS!
–
–
Address more than one
problem
Identify causes (yet)
Assign blame
Describe solutions (not
yet ready)
BASED ON “PROBLEM SOLVING AND DECISION MAKING”, JEFF BUTTERFIELD (2013)
OBJ. 4: AN EXAMPLE OF EFFECTIVE PROBLEM STATEMENT
•Describing the ideal situation: Reducing costs by 10%
to improve profitability.
Our company’s high operational costs have
resulted in a profit margin of 5% only
which is below the industry average.
We must reduce costs by 10% next year to
improve profitability and remain
competitive, avoiding financial risks.
•Summarizing the problem: High operational costs
leading to a lower profit margin.
•Identifying symptoms: Profit margin below the industry
average.
•Describing the size and scope of the problem: The
specific target of reducing costs by 10%.
•Identifying consequences: Risk to profitability and
competitiveness if costs are not reduced.
General – ‫عام‬
BASED ON “PROBLEM SOLVING AND DECISION MAKING”, JEFF BUTTERFIELD (2013)
ASSIGNMENT 1: HINTS
Q2:
a) Discuss the problem with 5-Why analysis.
b) Draw a cause-and-effect diagram based on the problem of the case?
General – ‫عام‬
OBJ. 5: DETERMINING
CAUSES
• Differentiate between symptoms and causes
• Consider that sometimes you have more than one cause
• Examples 1:
•
•
Symptom: Many customers visit my store but few buy from me.
Cause: My prices are higher than nearby competitor
• Example 2:
•
•
Symptom: Employees have low productivity
Possible causes:
• Unclear job specification/requirements
• Minimal training
• Unrealistic Expectations,
• Etc…
• In complex issues, you may use other techniques for your analysis
General – ‫عام‬
BASED ON “PROBLEM SOLVING AND DECISION MAKING”, JEFF BUTTERFIELD (2013)
OBJ. 5: DETERMINING
CAUSES
• Use the 5whys! Why? Why? Why? Why? Why? ☺
1- Why is employee productivity low?
Because employees are not performing tasks effectively.
2- Why are employees not performing tasks effectively?
Because they lack the necessary skills and knowledge to complete their tasks efficiently.
3- Why do they lack the necessary skills and knowledge?
Because they have not received adequate training for their roles.
4- Why have employees not received adequate training?
Because the company does not have a structured training program in place for new or existing employees.
5- Why does the company not have a structured training program?
Because the company didn’t want to invest in employee development, underestimating the long-term impact on productivity.
General – ‫عام‬
BASED ON “PROBLEM SOLVING AND DECISION MAKING”, JEFF BUTTERFIELD (2013)
OBJ. 5: DETERMINING
CAUSES
• REAL EXAMPLE FROM A STUDENT SUBMISSION – With mistakes.
1- Why: Sheema and Hala are experiencing conflict.
Due to differing perceptions of their roles and responsibilities
2- Why They have differing perceptions of their roles and responsibilities?
Because the initial hiring process and subsequent leadership arrangement .
3- Why There is a lack of clear communication and understanding between them?
Because the lack of clear communication protocols and established expectations.
4- Why The initial hiring process and subsequent leadership arrangement may have contributed to the conflict?
Because The differing expectations set during the hiring process and the imposed joint leadership arrangement may have created tension
and conflict.
5- Why There may be underlying personality differences or power struggles between the two individuals?
Because the company didn’t want to invest in employee development, underestimating the long-term impact on productivity.
General – ‫عام‬
BASED ON “PROBLEM SOLVING AND DECISION MAKING”, JEFF BUTTERFIELD (2013)
CAUSE AND EFFECT DIAGRAM (SAMPLE)
-?
-Out of date
adveristing venue
(Newspaper,
magazines)
-Pricing issues
-?
-Visa Requirement
Changes
-Wars
-?
Political
?
Declining
Sales
Marketing
-Offering travel
packages
-Better quality of
service
-?
General – ‫عام‬
Competition
-Outdate ordering
system
-New ways for
reservation
-?
Technical
-?
?
BASED ON “PROBLEM SOLVING AND DECISION MAKING”, JEFF BUTTERFIELD (2013)
ASSIGNMENT 1: HINTS
Q3: If you are consultant and asked to solve the problem,
a) how will you solve the problem of case?
b) What are the steps you will follow to solve?
General – ‫عام‬
Do’s & Don’ts
OBJ. 1: UNDERSTANDING
PROBLEM SOLVING
Guideline
Do
Don’t
You are a
problem solver!
Feel confident you can do it!
Give up easily
Recognize
Problems
Problems are opportunities
in disguise! Define the
problem and redefine it
–
Intuition for simple problems
Systematic for complex ones
–
• Defining Problem
• You are a problem solver!
• Recognize Problems
Select an
Approach
• Being intuitive vs. Systematic
• Make decisions
Make decisions
Consider all the
alternatives!
–
Ignore problems until
they get out of hand!
Stick to your problem
definition
–
Create details
procedure that is too
difficult to complete
Jump to conclusions
–
Make rash decisions
Second guess yourself
Problem
Solving Steps
Identify
Problem
General – ‫عام‬
Gather
Information
Clarify
Problem
Consider
alternative
Select best
solution
Make a
decision
BASED ON “PROBLEM SOLVING AND DECISION MAKING”, JEFF BUTTERFIELD (2013)
OBJ. 10: DEVELOPING
ALTERNATIVES
• Think Creatively, avoid common
ideas, and assumptions
• Brainstorm ideas
• Ask others for advice
• Develop a Mind Map
Do’s & Don’ts
Guideline
Do
Don’t
Think creatively
Generate as many ideas as
possible
Brainstorm new approaches
Get too attached to your
ideas
Settle for normal approach
Ask others
Collective wisdom is
powerful
Consider opinions of others
Think you that you need to
solve issues alone or work
alone
Document Ideas
Keep track of ideas
Refer to ideas later
Forget ideas
Don’t limit your self to one
or two ideas
Graphic Source: mindtools.com
General – ‫عام‬
BASED ON “PROBLEM SOLVING AND DECISION MAKING”, JEFF BUTTERFIELD (2013)
OBJ. 11: EVALUATE
OPTIONS
Guideline
Do
• Choose a method
Examine
criteria
–
•
Do’s & Don’ts
List of Advantage and Disadvantage, matrix for
evauation (next example), voting, etc…
–
• Select a criteria
•
Which factors are most important in your
decision?
How important are the factors to you?
• Rate the alternatives
•
Provide score for each factor
• Make a decision
General – ‫عام‬
Identify criteria (costs,
time, usefulness)
Choose more than one
criteria
Assign weight
–
Settle on only one
criterion
Assign the same weight,
unless objectively
makes sense
Rate
alternatives
–
Rank alternatives based
on the criteria and
weight
–
Use a single evaluation
method for complex
problems
Make a
decision
–
Choose the best
alternatives
Select good options
instead of waiting for
dream solution
–
Nothing’s perfect, so
don’t worry
Make a decision you
are not comfortable
with
• Weigh your criteria
•
Don’t
–
–
BASED ON “PROBLEM SOLVING AND DECISION MAKING”, JEFF BUTTERFIELD (2013)
Do’s & Don’ts
OBJ. 12: IMPLEMENTING
THE SOLUTION
• Get approval from the problem
owner
Guideline
Do
Communicate
with others
–
Develop a plan
–
• Develop a plan
–
• Notify stakeholders
–
• Anticipate and prepare for
opposition
Anticipate
opposition
–
• Take action
Take action
General – ‫عام‬
–
Don’t
Involve problem owners
Describe the steps you
followed (show your
systematic way!)
Communicate clearly and
frequently
–
Outline the steps for the
solutions
Identify resources you
need
Draft a realistic schedule
–
Build support for the
solution
Continue to communicate
(if you have planned
carefully, and listened to
opinions of others in
planning stage, you
wouldn’t have strong
opposition
–
Ignore opposition
Start implementing
immediately after
deciding
–
Inaction can ruin your
plans!
–
–
Proceed if problem
owners not
comfortable
Withhold information
to ensure all agree
Underestimate time
you need for each
step
Proceeding if plans
not meeting objectives
BASED ON “PROBLEM SOLVING AND DECISION MAKING”, JEFF BUTTERFIELD (2013)
OBJ. 13: MONITORING &
MANAGING THE SOLUTION
• Select appropriate level of monitoring
• Complex Problems: Monitor closely and regularly (e.g., daily/weekly reports).
• Simple Problems: Occasional monitoring is sufficient, but don’t neglect it entirely.
• Involve others with process
• Engage stakeholders, team members, and other key individuals to assist in monitoring.
• Regular check-ins with the team help ensure that all angles are covered.
• Be persistent:
• Consistent monitoring is essential. Don’t assume that everything is going smoothly
• Make correction promptly:
• Address any problems as soon as they arise.
General – ‫عام‬
BASED ON “PROBLEM SOLVING AND DECISION MAKING”, JEFF BUTTERFIELD (2013)

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