Transcript

EFFECTIVE PROBLEM SOLVING

& DECISION MAKING

Why is Effective Problem Solving

and Decision Making important in your business?

A problem exists when there is a gap between what you expect to happen and what actually happens

Defining Decision Making

Decision making is selecting a course of action from among available alternatives

• Process of analyzing critical data to determine best decision

• We don’t always pick best choice

• Need rational, systematic approach

• Limited resources require better decisions

The Difference between Problem Solving and Decision Making

Problem Solving involves defining the problem and creating solutions for it.

Problem Solving is a 4-step process that always involves Decision Making

Decision Making is analyzing info data to make the best decision, but…

Not all Decision Making involves solving a problem.

Problem Solving Process

STEP 1: DEFINING THE PROBLEM

1: Defining the Problem

Diagnosing a situation so the focus is on the real problem, not just on symptoms.

Symptoms seen first are usually not the true root cause.

1: Defining the Problem

Separate fact from opinion and speculation

Specify underlying causes

State the problem explicitly

Avoid stating the problem as a “disguised solution”

Selecting Problems to Define

2 Guidelines:

• Spend time gathering data and defining the problem to avoid working on the wrong problem.

• Do not overspend resources based on small-scale problems.

Causes of Problems

Materials

Equipment and/or tools

Methods & procedures

Policies

Other external factors

Work goals/work roles

People

Factors to Consider for Problem Solving and Decision Making

Who should be involved in problem solving?

Deciding how to decide means deciding who should be involved.

And even if the question does not come up, a choice has still been made.

Four Situational Factors to Consider for Problem Solving and Decision Making

Time

Information

Capability

Group acceptance

Four Situational Factors: Time

If no time, Supervisor alone option is necessary

If limited time, may use others based on time limit

Is there enough time to include the group?

Four Situational Factors: Information

Does problem-solver have enough

info to decide alone?

If yes, you can do

alone, but you do not have to.

If no, you probably

need to use a different option.

Four Situational Factors: Capability

Does the group have ability, willingness, experience, and information necessary to help?

– Issue is not just individual competence, but group capability

Four Situational Factors: Acceptance

Is group acceptance of the decision critical for implementing it?

Is group acceptance relevant at all?

If yes, use some form of group participation

If acceptance is not critical or not relevant, it was a done deal anyway

Four Options for Problem Solving and Decision Making

Option 1: Problem-solver decides alone

Option 2: Problem-solver consults group, then decides alone

Option 3: Participative decision by group and problem-solver

Option 4: Problem-solver lets someone else decide

• “I’ll decide.”

• Decide alone and inform the group after the fact.

• Explaining it is OK.

Option 1: Problem-Solver decides alone

Option 2: Problem-Solver Consults the group then decides alone

• “Let’s talk, then I’ll decide.” • Consult group for information (not a

vote) then decide alone. • Before implementing, explain the

rationale to help with group buy-in.

Option 3: Participative Decision by Group

• “Let’s talk, then we decide.” • Supervisor can flex the range of control

allowed to the group. • Voting may occur, yet it does not have

to.

Option 4: Problem-solver lets other(s) decide

• “You decide.”

• Supervisor presents the situation to the group & describes the criteria limiting it.

• Group solves the problem.

STEP 2: CREATE ALTERNATIVE SOLUTIONS

Once a problem has been defined, the next step is to create alternative solutions.

Good alternative solutions take into account both short and long-term issues.

To effectively create solutions, postpone the process of selecting any one solution to the problem until Step 3.

Using a group problem solving process usually takes more time, but identifying the larger variety of ideas that a group can create may be worth the extra time.

2: Create Alternative Solutions

STEP 3: EVALUATE ALTERNATIVES & SELECT ONE

3:Evaluate Alternatives and Select One

This step involves the careful weighing of the pros and cons of the proposed alternatives in order to make a final selection.

• Decision makers need to be sure that the alternatives are judged in terms of the extent to which they will solve the problem without causing other unanticipated problems.

• Judging alternatives means that people are using criteria – standards or requirements that are important to solving the problem – in order to select the best alternative(s).

3:Evaluate Alternatives and Select One

Satisfactory Approach

• Alternatives are evaluated only until one is found that is “satisfactory,” then it is implemented. This means there are likely to be alternatives that do not get evaluated, since the process is finished when one that is “good enough” is found.

• This process is usually faster, since the decision maker is trading quality for speed on purpose. The risk is a lower quality decision that is less effective.

3:Evaluate Alternatives and Select One

Optimal Approach

To achieve the best decision in a given situation, alternatives are identified and evaluated with respect to decision criteria, and the best available alternative solution (the optimum one) that meets those criteria is chosen.

• This approach takes more time than the other approach (the satisfactory approach)

• In the long run the quality and effectiveness of the decision is likely to be higher

• This process is slower than the satisfactory approach

STEP 4: IMPLEMENT AND FOLLOW UP

4: Implement the Solution and Follow Up

• Implementing a solution is a change in status quo

– Change is often resisted

• Must be both proactive and reactive

– Proactive to get problem solved

– Reactive to make adjustments when resistance occurs

• Implement solutions at the right time and in the right sequence.

• Provide opportunities for feedback. • Gain acceptance of the solution by those

affected by problem. • Establish an ongoing monitoring system for

the solution. • Evaluate success based on how well the

solution solved the problem, not on side benefits.

4: Implement the Solution and Follow Up

EFFECTIVE PROBLEM SOLVING

& DECISION MAKING


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