Creative Thinking & Problem Solving

• Benefits of creative thinking

  • To solve business problems: New products, services, creative marketing, adapting to changing product needs
  • Creative working environment: Spirit of play, positive feedback, working in teams, recognition and reward, freedom to express ideas
  • Promotes team work and non-conventional solutions
  • Improves quality of production
  • Motivates employees to improve their skills
  • Improves productivity
• Creative Thinking

  The process of thinking of new, innovative, out of the box ideas.

  • Unconventional thinking.
• Decision Making

  Choosing which ideas best fits with the vision and mission of your business after considering all alternatives.
• Problem Solving

  Involves creative thinking and decision making to choose the best solution.
• Problem Solving Cycle

  1. Identify the problem
  2. Define the problem
  3. Formulate strategy
  4. implement the strategy
  5. Allocate the resources
  6. monitor the solution
  7. Evaluate the process
• Pros and Cons Chart

  • This technique helps management to make a decision based on advantages and disadvantages of specific option.
  • Example, should I study locally or overseas?
  • Similar to Force Field analysis.
• Decision Tree

  • A mathematical model used to help managers make decisions.
  • It uses estimates and probabilities to calculate likely outcomes.
  • Is a visual representation of different outcomes to a single event.
  • Helps to decide whether the net gain from a decision is worthwhile. Helps decision maker to look at different options and consequences of each.
• Value Chain Analysis

  • A business needs satisfied customers to be successful.
  • Therefore the concept of adding value for the customer and other stakeholders should be the aim.
  • It is important to look at the entire business process to decide where value is added in a cost-effective manner to enhance the quality of the product or service rendered.
  • If a business is not involved in something that is not their core-strength, that particular activity will probably not add value to the business process.
  • Example, a small bakery employing four people may not have sufficient work to warrant a full time person to handle the payroll. It will be best if they outsource this payroll function.
• Delphi Technique

  • Getting experts to interact on a common project through internet, skype, email or other electronic means.
  • Allows participants to remain anonymous.
  • Run by a facilitator who organises the logistics of the process.
  • The facilitator will pose the questions and determine the formality of the process.
  • Avoids problems of negative Group Dynamics,

  Negatives:

  • It is open to manipulation by the facilitator.
  • Time consuming with the response and feeback.
  • Experts may not respond timeously
• RIMS

  • Stands for: Rational Interaction for Moral Sensitivity
  • Primary focus is on society instead of individual. (utilitarian approach)
  • All participants are considered equal.
  • Based only on facts.
• Steps in RIMS

  STEP 1: Generate and evaluate all points of view. It should be a moral not selfish argument, it must be understandable and clear to all. It must be factually correct

  
  

  STEP 2: Identify implications. Identify positive and negative implications expressed in all the points of view.

  
  

  STEP 3: Find solutions that will minimise negative implications and maintain positive implications
• DRIVE Technique

  1. DEFINE: the problem and criteria to solve problem.

  2. REVIEW: the background of problem to find crux.

  3. IDENTIFY: the real problem and related issues.

  4. VERIFY: if solving real issue achieves desired outcome.

  5. EXECUTE: the proposed solution and evaluate to prevent similar issues.
• Drill Down Analysis

  • Technique used to break down complex problems into smaller parts.
  • METHOD: Write down the problem on the left side (halfway down the page)
  • Break it into "component parts" by asking questions about it.
  • Example, how to improve sales of King Pie?
  • Break down the component parts into Actions(new menu items, healthier options), Timeframes(6 months), People responsible
  • Try to find the solutions to the smaller components as this is more manageable
• Resource Based Approach

  • States that business should find which resources are of strategic importance to them.
  • These resources assist the business to gain competitive advantage.
  • Resources may include tangible resources( scarce raw materials, financial resources, equipment, land and buildings). Intangible resources( patents, established brand, skills, moral/ethical workforce)
  • Example: two people want to establish a fast food restaurant in an area. One of them already have an established franchise while the other does not. The person with the already established franchise will have an advantage in terms of scarce resources such as knowledge, expertise.
• Balanced Score Card (BSC)


  • Developed to describe the key outcomes that the business would like evaluate in order to improve.

  elements used to identify and describe the role they play in the business:

  • Financial perspective: maximizing utilisation of assets and minimising costs.
  • Customer perspective:
  • Internal perspective: focused on innovative products and services, management of operations and social investments.
  • Learning and growth perspective: looks at how employees in business can improve and create value. Focus here is on leadership, teamwork, accountability.
• Steps in Value chain Analysis

  Step 1: Divide the business into different activities

  Step 2: Describe each process requires to complete the production

  Step 3: Identify those areas that are critical to gaining competitive advantage

  Step 4: Decide whether these areas remain in the business or are outsourced
• Value Chain Analysis

  An examination of the entire business process to identify where value is added and how to do it cost-effectively.
• Adding Value to Customers and Stakeholders

  The ultimate goal is to make customers and other stakeholders satisfied by delivering something of worth.
• Core-Strength

  A business's unique expertise or expertise zone.