PROBLEM SOLVING

Chapter - 3
 2 - Sessions
Agenda 4 - Hours

• What is Problem Solving

• Barriers of effective Problem Solving

• Problem Solving Process

• Problem Solving Tools

– Six Thinking Hats

– Porter’s 5 Forces

– Ishikawa Diagram

– Mind Mapping

– SWOT analysis

• Exercise
Problem Solving
 3.1 What is Problem Solving

• An approach about how to proceed from a given state to a desired goal state.

• It is part of larger problem process that includes problem finding & shaping.

• “Problems call forth our courage and our wisdom; indeed, they create our
courage and our wisdom. It is only because of problems that we grow
mentally and spiritually.” - M. Scott Peck

• Considered the most complex of all intellectual functions, problem solving has
been defined as higher-order cognitive process that requires modulation and
control of more routine or fundamental skills (Goldstein & Levin, 1987).

Problem Solving
3.1 What is Problem Solving

• Process of finding solutions to difficult or complex issues

• Problem solving is the act of defining a problem; determining the cause of

the problem; identifying, prioritizing and selecting alternatives for a solution;
and implementing a solution.

• Consists of using generic or ad-hoc methods in an orderly manner to find

solutions to problems.

• “He who asks a question may be a fool for five minutes, but he who
never asks a question remains a fool forever.” - Tom Connelly

Problem Solving
3.2 Barriers of effective Problem Solving
Barriers:
• Failure to recognize the problem
• Conceiving the problem too narrowly
• Making a hasty choice
• Failure to consider all consequences
• Failure to consider the feasibility of the solution
• Irrelevant information
• Dreaming: problem-solving without waking consciousness

Problem Solving
3.3 Problem Solving Process
“It's not that I'm so smart, it's just that I stay with problems
longer.” - Albert Einstein

• Accept the Problem.

6 steps of Problem solving Process;

1. Defining the problem.

2. Generating alternatives.

3. Evaluating & selecting alternatives.

4. Make a Decision

5. Implementing solutions.

6. Reviewing the solution.

Problem Solving
 3.3 Problem Acceptance
• Willingness to accept the problem by acknowledging its existence, and
committing to try & to solve it.

• Strategies to find the motivation and commitment to prepare to enter problem-

solving process:

1. List the benefits– how will solving the problem benefit you?

2. Formalize your acceptance- formal commitment to solve problem

3. Accept responsibility for your action

4. Create a “worst-case” scenario- potential disastrous consequences of your

actions or inactions

5. Identify what’s holding you back from solving the problem.

Problem Solving
3.3.1 Defining the problem
• Define the problem precisely.
• State the underlying problem that has to be solved.
• Know specifically who said, ordered, or demanded what.
• Don’t settle for second hand information.
• Get Details.

• Step 1A: What do I know about the situation?

• Step 1B: What results am I aiming for in this situation?
• Step 1C: How can I define/RE-define the problem?
– View the problem from different perspectives.
– Identify component problems.
– State the problem clearly and specifically.

Problem Solving
3.3.1 Defining the problem
Some important factors;
 Time required to make the decision
 Result of making a good and a bad decision
 People who would help you
 Who will face the consequences of the decision?

 Affect of the decision on you and the people around you

 What will happen if the decision is not made?

Problem Solving
3.3.2 Generating alternatives
• Situation of making decision arises because of alternatives.

• Don’t restrict with obvious options, rather go for out-of-the-box ideas.

• Step 2A: What are the boundaries of the problem situation?

• Step 2B: What alternatives are possible within these boundaries?

– Discuss the problem with other people.

– Brainstorm ideas.

– Change your location/position.

Problem Solving
3.3.3 Evaluating and selecting alternatives

• Brainstorm
• Group-think

• Step 3A: What are the advantages of each alternative?

• Step 3B: What are the disadvantages of each alternative?

• Step 3C: What additional information do I need to evaluate each

alternative?

Problem Solving
3.3.4 Decision Making

• Process of making choices

– by identifying a decision, & gathering information,

– after assessing alternative solutions.

• Choosing the best alternative that can impact success and effectiveness.

• Which alternative(s) will/should I pursue?

– Evaluate and compare alternatives.

– Combine alternatives.

– * Try out each alternative.

Problem Solving
3.3.4 Decision Making Approach
• Individual
– Individual makes decision based on personal values and preferences.
– Challenging and difficult at times because some people are too dependent
on others for a sound decision.
– A conflict of values and preferences also affects individual decision.
• Authoritarian
– Decision relies on leader or group head.
– Leader must gather sufficient knowledge.
– Not driven by personal choices; must explain the decision to all.
• Group
– Members brainstorm and share ideas, discuss the considerations, to finalise
upon an agreed decision.
– Everyone takes accountability.
– Usually more effective.
Problem Solving
3.3.5 Implementing solutions

• Step 5A: What steps can I take to act on the alternative(s) chosen?

• Step 5B: What factors suitable for smooth/successful Execution of solution.

Problem Solving
3.3.6 Reviewing the solution

• Step 6A: What is my evaluation?

– Compare the results with the goals.

– Get other perspectives.

• Step 6B: What adjustments are necessary?

Problem Solving
3.4 Problem Solving Tools/Models

Tools to facilitate effective problem solving:

• Six Thinking Hats

• Porter’s 5 Forces
• Ishikawa Diagram
• Mind Mapping
• SWOT analysis

Problem Solving
3.4.1 Six Thinking Hats
3.4.1 Six Thinking Hats

• A powerful tool set.

• Once learned can be applied immediately!

• Its a method for doing one sort of thinking at a time.

• Role-playing (Put the hat on, take the hat off, switch hats, signal your thinking)
• Simple, effective parallel thinking process

• More productive, focused, & mindfully involvement.

Problem Solving
 3.4.1 Six Thinking Hats__Advantages
• Improve communication
• Maximize productive collaboration & minimize counterproductive interaction/behaviour
• Consider issues, problems, decisions, and opportunities systematically
• Use Parallel Thinking as a group or team to generate more, better ideas and solutions
• Make meetings much shorter and more productive (Speed up decision making)
• Reduce conflict among team members or meeting participants (Avoid debate)
• Stimulate innovation by generating more and better ideas quickly
• Create dynamic, results oriented meetings that make people want to participate
• Go beyond the obvious to discover effective alternate solutions
• Spot opportunities where others see only problems
• Think clearly and objectively
• View problems from new and unusual angles
• Make thorough evaluations
• See all sides of a situation
• Keep egos and "turf protection" in check (Detaching the Ego)
• Achieve significant and meaningful results in a less time
Problem Solving
3.4.1 Six Thinking Hats
3.4.1 Six Thinking Hats__White Hat Objective
Facts, Figures, Data and Information

Neutral/Factual thinking hat

Questions:

• What information do we have here?

• What information is missing?

• What information would we like to have?

• How are we going to get the information?

Problem Solving
3.4.1 Six Thinking Hats__Red Hat Objective
Feelings, Intuition, Emotions and Hunches

- Emotional thinking hat

- How do I feel about this right now?

- No need to justify the feelings.

Examples:

• My gut-feeling is that this will not work.

• I don't like the way this is being done.

• This proposal is terrible.

• My intuition tells me that prices will fall soon.

Problem Solving
3.4.1 Six Thinking Hats__Green Hat Objective
Creative Ideas, Alternatives, Suggestions, and Proposals

Creative Thinking Hat

Questions:

• Are there any additional alternatives?

• Could we do this in a different way?

• Could there be another explanation?

• What are some possible solutions and courses of action?

Problem Solving
3.4.1 Six Thinking Hats__Yellow Hat Objective
Benefits, Feasibility and Optimism

Positive thinking Hat

Questions:

• Why is this worth doing?

• What are the benefits?

• Why can it be done?

• Why will it work?

Problem Solving
3.4.1 Six Thinking Hats__Black Hat Objective
Caution, Difficulty, Judgment and Assessment

Critical/ Negative thinking Hat

Questions:

• Is this true?

• Will it work?

• What are the weaknesses?

• What is wrong with it?

Problem Solving
3.4.1 Six Thinking Hats__Blue Hat Objective
Sums up what is learned.

Organization of thinking.

Thinking about the thinking process (Reflection).

Control thinking Hat

Examples:

• Set the agenda.

• Suggest the next steps.

• Ask for other hats.

• Ask for summaries, conclusions, and decisions.

Problem Solving
3.4.1 Six Thinking Hats
3.4.1 Six Thinking Hats__Seeking Idea
White Gather available information.

Green Explore and generate alternatives.

Yellow Assess the benefits and feasibility of each alternative.

Black Assess the weaknesses of each alternative.

Green Further develop the most promising alternatives & make a choice.

Blue Summarize and assess what has been achieved so far.

Black Make the final judgment on the chosen alternative.

Red Find out the feelings on theSolving

Problem outcome.
3.4.1 Six Thinking Hats__Reacting to a Presented Idea

Red Find out the existing feelings about the idea.

Yellow Find out the benefits in the idea.

Black Point out the weaknesses, problems and dangers in the idea.

See if the idea can be modified to strengthen the yellow-hat

Green
benefits and to overcome the black-hat problems.

See if available information can help in modifying the idea to make

White
it more acceptable.

Green Develop the final suggestion.

Black Judge the final suggestion.

Red Find out the feeling onProblem

the Solving
outcome.
3.4.1 Six Thinking Hats__Short Sequences

• Yellow/Black/Red: Quick assessment (idea)

• White/Green: Generate ideas

• Black/Green: Improve an existing idea

• Blue/Green: Summarize & suggest alternatives

“...Be open-minded and creative about the sequence use, too!”

Problem Solving
 3.4.3 Fishbone Analysis
• Ishikawa, Fishbone, Cause-&-Effect diagram

• Diagram looks much like a skeleton of a fish.

• Japanese quality control expert Dr. Kaoru Ishikawa, invented to help employees
avoid solutions that merely address the symptoms of a much larger problem

• Visualization tool for categorizing potential causes of a problem in order to

identify its root causes.

• Useful in brainstorming sessions to focus conversation.

• First find all possible causes for problem; then rate potential causes according
to their level of importance; and diagram a hierarchy.

Problem Solving
3.4.3 Ishikawa Analysis

How to create a fish diagram:

• Create a head, which lists the problem or issue to be studied.

• Create a backbone for fish (straight line which leads to the head).

• Identify at least four “causes” that contribute to the problem.

• Connect these causes with arrows to the spine (first bones of the fish)

• Brainstorm around each “cause” to document those things that contributed

to the cause.

• Continue breaking down each cause until the root causes have been
identified.
Problem Solving
3.4.3 Ishikawa Analysis
5-M models (e.g. manufacturing)

– Machine (equipment, technology)

– Method (process)

– Material (includes raw material, consumables, and information)

– Man / mind power (physical or knowledge work; suggestions)

– Measurement / medium (inspection, environment)

Expanded by some to include an additional three (8-Ms of Manufacturing)

– Mission / mother nature (purpose, environment)

– Management / money power (leadership)

– Maintenance
Problem Solving
3.4.3 Ishikawa Analysis Example

Problem Solving
3.4.3 Ishikawa Analysis
The 8-P Model (used in product marketing)

Crucial attributes for planning in product marketing:

– Product (or service)

– Price

– Promotion

– Place

– Process

– People (personnel)

– Physical evidence

– Performance
Problem Solving
3.4.3 Ishikawa Analysis

The 4-S Model (used in service industries)

– Surroundings

– Suppliers

– Systems

– Skills

Problem Solving
3.4.3 Ishikawa Analysis Example

Problem Solving
3.4.4 Mind Mapping

Problem Solving
 3.4.4 Mind Mapping
• Graphical way to represent ideas & concepts. (resembles more closely how brain
actually works)

• Visual thinking tool that helps structuring information, helping to better analyze,
comprehend, synthesize, recall and generate new ideas.

• Since it is an activity that is both analytical and artistic, it engages your brain in a much,
much richer way, helping in all its cognitive functions.

• Visual representation of hierarchical information that includes a central idea

surrounded by connected branches of associated topics.

• Visual form of note taking that offers overview of a topic and its complex information,
allowing participants to comprehend, create new ideas and build connections.

– Through the use of colors, images and words, mind mapping encourages one to
begin with a central idea and expand outward to more in-depth sub-topics.
Problem Solving
3.4.4 Mind Mapping

Problem Solving
3.4.4 Mind Mapping _ Steps
1. Start in the middle of a blank page (landscape) with the main idea.

2. Develop the related subtopics around this central topic, connecting each of
them to the centre with a line.

3. Repeat the same process for the subtopics, generating lower-level subtopics
as it fits, connecting each of those to the corresponding subtopic.

• Use of colors, drawings and symbols (Be as much visual as possible)

• Keep the topics labels as short as possible (single word, even just a picture)

• Vary text size, color and alignment (thickness & length of lines)

– More visual is more simple to understand and relate to.

Problem Solving
3.4.4 Mind Mapping _ Guideline
• Start in the centre with an image of the topic

• Use key words, images, symbols, codes, and dimensions throughout your mind map.

• Each word/image is best alone and sitting on its own line.

• Lines should be connected, starting from the central image.

• Lines become thinner as they radiate out from the centre.

• Lines to be of same length as the word/image they support.

• Use colors throughout the mind map (for visual stimulation, encoding/grouping).

• Develop own personal style of mind mapping.

• Use emphasis, and show associations.

• Keep it clean, simple, understandable, & meaningful.

Problem Solving
3.4.4 Mind Mapping

Problem Solving
3.4.4 Mind Mapping _ Advantages
• Help participant brainstorm and explore any idea, concept, or problem

• Facilitate better understanding of relationships and connections between

ideas and concepts

• Make it easy to communicate new ideas and thought processes

• Allow to easily recall information (memorization)

• Help to take notes and plan tasks

• Make it easy to organize ideas and concepts

• Easy Planning, and Presenting information

• Gaining insight on complex subjects

Problem Solving
3.4.5 SWOT analysis
• Organized list of business aspect

– Internal: Strengths, Weaknesses.

– External: Opportunities, Threats.

• Helps to assess changing environment and respond proactively.

• Part of planning process.

Problem Solving
3.4.5 SWOT analysis _ Example

Problem Solving
 3.4.5 SWOT analysis _ Strengths
• Positive attributes, tangible & intangible, internal to organization (within control)

• What do you do well?

• What internal resources do you have?

– Positive attributes of people (knowledge, background, education,

credentials, network, reputation, or skills)

– Tangible assets of the company (capital, credit, existing customers or

distribution channels, patents, or technology)

• What advantages do you have over your competition?

• Do you have strong research-development capabilities? (Manufacturing facilities?)

• What other positive, internal aspects add value or offer competitive advantage?
Problem Solving
3.4.5 SWOT analysis _ Weakness
• Internal, Negative factors.

• Aspects of business that detract from the value to offer or place you at a
competitive disadvantage (need to enhance these areas ).

• What factors that are within your control detract from your ability to obtain
or maintain a competitive edge?

• What areas need improvement to accomplish your objectives or compete

with your strongest competitor?

• What does your business lack (expertise or access to skills or technology)?

– Does your business have limited resources?

– Is your business in a poor location?

Problem Solving
3.4.5 SWOT analysis _ Opportunity
• External, Positive factors: reasons for business likely to prosper.

• What opportunities exist in your market or the environment that you can
benefit from?

• Is the perception of your business positive?

• Has there been recent market growth or have there been other changes in
the market the create an opportunity?

• Is the opportunity ongoing, or is there just a window for it? In other words,
how critical is your timing?

Problem Solving
3.4.5 SWOT analysis _ Threat
• External, Negative factors beyond your control
– could place your strategy/business at risk.
– No control over these.
• Who are your existing or potential competitors?
• What factors beyond your control could place your business at risk?
• Are there challenges created by an unfavourable trend or development that
may lead to deteriorating revenues or profits?
• What situations might threaten your marketing efforts?
• Has there been a significant change in supplier prices or availability of raw
materials?
• What about shifts in consumer behavior, economy, or government
regulations that could reduce your sales?
• Has a new product or technology been introduced that makes your products,
equipment, or services obsolete?
Problem Solving
 3.4.6 Porter’s 5 Forces
• Strategic analysts often use Porter’s five forces to understand whether new
products or services are potentially profitable.

• Understanding of where power lies; identify areas of strength; improve

weaknesses; avoid mistakes.

• Competitive Position Analysis tool/theory, developed in 1979 by Michael E

Porter of Harvard Business School as a simple framework for assessing and
evaluating competitive strength and position of a business organisation.

• 5 forces that determine competitive intensity & attractiveness of a market.

• Helps to identify where power lies in a business situation.

• Useful both in understanding strength of organisation’s current competitive

position, and strength of a position that organisation may look to move into.
Problem Solving
 3.4.6 Porter’s 5 Forces

• Potential of new entrants into the industry;

• Power of suppliers;
• Power of customers;
• Threat of substitute products;
• Competition in the industry.

Problem Solving
 3.4.6 Porter’s 5 Forces
Supplier power- An assessment of how easy it is for suppliers to drive up prices.
– Driven by: number of suppliers of each essential input; uniqueness of their
product or service; relative size and strength of the supplier; and cost of
switching from one supplier to another.

Buyer power- How easy it is for buyers to drive prices down. Driven by:
– number of buyers in the market; importance of each individual buyer to
the organisation; and cost to the buyer of switching from one supplier to
another.
– If business has just few powerful buyers, they are often able to dictate
terms.

Competitive rivalry- Main driver is the number and capability of competitors in

the market.
– Many competitors, offering undifferentiated products and services, will
reduce market attractiveness.
Problem Solving
3.4.6 Porter’s 5 Forces

Threat of substitution- Close substitute products in market increases likelihood

of customers switching to alternatives in response to price increases.
– Reduces power of suppliers, and also attractiveness of market.

Threat of new entry- Profitable markets attract new entrants, which erodes
profitability.
– Unless incumbents have strong and durable barriers to entry, for
example, patents, economies of scale, capital requirements or
government policies, then profitability will decline to a competitive rate.

Regulation, taxation and trade policies make government a sixth force for many
industries.

Problem Solving
Chapter-3 :: Exercise-3 (45 minutes)

• Draw a Cause-&-Effect Diagram for MIU Canteen … (10 min)

• Draw one Mind Map for MIU Annual Sports Events … (10 min)
• Design a SWOT analysis for MIU SRC … (15 min)

• Discussion… 10 min

Problem Solving