Effective Decision Making

 Problem Solving  No Responses »
Mar 222011
 

We are faced with many decisions on a daily basis both in our work and personal lives, for example:

  • Do we pursue a new business, product or market opportunity?
  • Do we proceed with establishing a new collaborative partnership?
  • Do we accept an invitation to attend a network meeting?
  • Do we take the family on another vacation even though the budget is tight?

Decision making is a mental function that involves selecting a course of action among alternative options and involves making a final choice. Decision making is critical to managing and leading individuals, teams and organizations. Following is a model that outlines where decision making and choice making occur in a problem solving context. 

The model begins with the realisation that an undesirable state  (a problem) exists and that a solution needs to be identified and implemented. The decision making stages involve firstly the diagnosis of a problem, followed by the generation of alternative solutions and finally choosing an appropriate solution. 

Decision making on a daily basis may involve the following approaches:

  • Choosing the first option that comes to mind (based on past experience) which is perceived to be likely to achieve the desired outcome
  • Listing the advantages and disadvantages of a situation, then making a decision
  • Making a list of available options and then choosing the most appropriate option to acheive the desired outcome
  • Decision making based on intuition
  • Flipping a coin to make a decision

When faced with difficult decisions it is best to utilise a systematic approach to achieve the best outcomes. An effective decision making approach is outlined below:

  1. Outline the goal and desired outcome you wish to achieve.
  2. Gather the available data and information to provide background knowledge on the situation.
  3. Brainstorm to develop a number of alternative solutions.
  4. Evaluate each alternative by determining the advantages and disadvantages for each option, and the likely impact it will create.
  5. Make the decision by choosing the most optimal solution.
  6. Implement the solution immediately by taking action.
  7. Evaluate the outcome, and learn from and reflect on the decision making.

Dr John Kapeleris

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Crowdsourcing – Open Innovation Strategy

 Ideas, Innovation, Knowledge, Opportunities, Problem Solving  1 Response »
Jan 242011
 

Crowdsourcing refers to the outsourcing of tasks and activities, traditionally performed internally by an employee or an external contractor, to a large group of people (a crowd), through an open innovation approach or an open call.

In their book Wikinomics Don Tapscott and Anthony Williams discuss how mass collaboration can impact big changes in business. They also present a number of case studies of successful outsourcing and collaboration, including Goldcorp and Proctor & Gamble. In the case of Goldcorp, a Canadian gold mining company, after internal reports and advice from technical staff indicated that the gold mine had run out of gold, the CEO placed all the geological studies, surveys and reports related to the gold mine into the public domain via the Internet and offered a sum of money to whoever could come up with new information or leads for new gold deposits. The CEO’s strategy was successful. New computer modeling technology located in another small organization was able to predict the location of new gold deposits using the existing geological survey data.

By utilizing an open call to an undefined group of people (generally through the Internet), the call brings together people who are in the best position to be able to solve complex problems, provide new ideas and develop new opportunities.

Crowdsourcing has a number of advantages, however, it can also result in intellectual property (IP) issues, including ownership issues and confidentiality of IP. An appropriate governance process is required to ensure the disadvantages of crowdsourcing are minimized. Some of the advantages of using a crowdsourcing approach can include:

  • Reducing transaction costs of organisations
  • Finding new business opportunities
  • Building appropriate teams by finding the right  external people
  • Re-using previous work
  • Building user defined products and services
  • Solving difficult and complex problems

A number of online sites are available that specialise in bringing together different parties or groups to work on a particular project or solve a specific problem. Alternatively an organisation can also ask a question through one of its online networks such as facebook or LinkedIn. A selection of crowdsourcing sites of interest are outlined below:

  • Chaordix – Business innovation – Engaging crowds through the web to solve your business problem
  • kluster – Brainstorming / feedback – Harness the power of your own hand-picked crowd to brainstorm ideas
  • namethis – Brand names – A 48 hour competition site to find a suitable brand name for your venture
  • innocentive -  Problem solving – Brings together seekers who have a problem together with solvers from around the world who may be able to help
  • Rent A Coder – Software development – International marketplace to locate software coders
  • Global Ideas Bank - Social innovation – A site which collects social inventions that can change the world, which are rated by online voters.

One specific type of crowdsourcing strategy is crowdfunding which is also referred to as crowdlending. Crowdfunding is the collective cooperation,  attention and trust by people who network and pool their money together, usually via the Internet, in order to support efforts initiated by other people or organizations. For example, crowdfunding has been used to fund open source software projects, online services, music, independent films, charity and social enterprises.

A number of online crowdfunding and crowdlending websites are available that can be used to raise funds for specific projects or for charitable work. A number of websites are described below:

An entrepreneur seeking seed funding for a new venture, who has not been successful sourcing funds through either government funding programs or through traditional angel investors or venture capitalists, could use crowdfunding from online communities to solicit pledges of small amounts of money from individuals who typically would not be professional financiers. The amounts pledged are usually so small people tend to support a venture that has the right value proposition for them. Confirming a threshold value also ensures that all pledges will not be used unless a threshold target amount is reached.

Crowdfunding, therefore, has the potential to help launch simple ideas through minimal investment, resulting in faster outcomes and the development of new products or services, particularly for social enterprises.

To your success!

Dr John Kapeleris

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Creative Problem Solving

 Creativity, Problem Solving  6 Responses »
Dec 082010
 

We are faced with problems and challenges in our work and personal lives, daily. A problem occurs when a present state is unsatisfactory and we wish to change the present state to a more desirable state. The model of a problem is outlined below:


However, finding the appropriate solution path is not always easy and straight forward, requiring a number of different options and meandering pathways, as represented by the diagram below:

A number of different approaches and processes have been documented to solve problems. However, in addition to the process, the right mindset (attitude) is also required for successful problem solving. A simple problem solving process, involving a sequence of steps, was presented by Herbert Simon in 1978 and is outlined below:

The process begins with the realisation that an undesirable state (problem) exists which needs to be analyzed and defined. The next step, design, involves the development of potential solutions to solve the problem. This step is followed by selecting the most suitable solution to the problem and implementing the solution. Finally, a review activity is undertaken to ensure that the solution implemented was effective in solving the problem.

A more detailed Rational Problem Solving process was described by Kepner and Tregoe in 1981 and involved nine discrete steps, as outlined in the diagram below:

Although it became widely used as a rational and systematic approach to problem solving, it did not incorporate creative thinking tools or approaches to solve more complex problems. Having used a number of different problem solving processes, I developed a novel six step Creative Problem Solving process in 1996 that combines a number of creative and analytical tools with a rational approach to problem solving. The process is summarised in the table below:

I also developed a Problem Solving Worksheet that can be used with the above six step Creative Problem Solving process. By using the approach outlined above I have found that both simple and complex problems can be resolved with minimal effort, but at the same time achieve effective and long-term solutions.

Dr John Kapeleris

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Establishing a Creativity Club to Drive Innovation

 Creativity, Innovation, Problem Solving  1 Response »
Dec 062010
 

In my previous company Panbio Ltd, one of the key success factors of the company was embedding innovation across the whole organisation and not limited to the R&D Department alone. One of the initiatives that I implemented to drive innovation in the organisation was the establishment of a Creativity Club. The main objective of the creativity club was to stimulate creative thinking in individuals and encourage the use of creative thinking tools to come up with new ideas, and to solve problems in the organisation and for our customers.

The original objectives that we brainstormed at our first creativity club at Panbio are outlined below:

The format and structure of the creativity club included the following:

  1. The creativity club was open to all employees of the organisation. Everyone was invited to deliver presentations, and to share their knowledge and experiences.
  2. The creativity club was held either at lunchtime or before work (lunch and breakfast were provided which was a great attraction for employees).
  3. The agenda of each meeting consisted of the following:
    1. Ice-breaker – each participant would be asked to describe a creative experience or reading since the last meeting (those participants that could not describe a creative experience would be asked to tell a joke – right brain thinking)
    2. Formal presentation – a theme was chosen as a focus of each creativity club including: Introduction to Creative Thinking, Serendipity vs Synchronicity, Idea Management, Creativity Tools, Imagination, Innovation case studies (3M, Dupont, Lotus Corporation, Ideo etc), Creative Problem Solving, Intuition, Chaos Theory, etc
    3. Informal discussion – this session included open discussion about the specific topic presented and the practical application of the learnings from the presentation
    4. Action planning – the creativity club concluded with the recording of action plans that each participant could take back to their department or functional area and implement
  4. The creativity club was modelled on the Dupont OZ Creative Thinking Network and the Parisian Salons (creative communities) of the 1920′s. The creativity club included a number of games and puzzles to stimulate the creative juices of participants. It also provided a fun environment conducive to the sharing of knowledge and ideas that could be further developed or implemented. A database was set up within the Knowledge Management system of the organisation to capture and record the presentations, knowledge, ideas, learnings, discussions and action plans arising from the creativity club.

The creativity club at Panbio also spawned the development of Creative Problem Solving Hit Teams. These teams consisted of cross-functional team members that would work on solving problems both inside and outside the organisation. When an internal functional area or an external customer could not solve a particular problem then a Creative Problem Solving Hit Team was deployed. The cross-functional nature of the team allowed a wider range of skill-sets to be incorporated in the team, providing a diverse perspective when investigating each problem. The team included people directly involved with the problem but also people who had never been exposed to the problem. Team members were also equipped with a variety of creative problem solving tools and resources. These teams became so effective that we started to provide this service beyond our existing clients and domain areas of expertise.

Enjoy!

Dr John Kapeleris

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Why, why, why? – Challenging the Status Quo

 Creativity, Innovation, Mind, Problem Solving  2 Responses »
Nov 012010
 

“Theirs not to reason why, Theirs but to do and die.” Alfred, Lord Tennyson

Did you know that if you ask “Why?” three to five times you can identify the root cause of a problem or issue? Children often ask “Why?” because their curious and open mind is trying to explore how things work or they are trying to better understand their surrounding environment. As adults we tend not to ask “Why?” that often because we either have already formed our own preconceived perceptions or are afraid to challenge the status quo.

A Why-Why diagram can be used to identify the causes of a particular situation in a systematic way[1]. The Figure below shows an example of a Why-Why diagram. The problem statement is written on the left hand side and then by asking “Why?” a number of possible causes are identified. Asking “Why?” again leads us to further causes and finally to the root causes of  problem. Even though it is simple, this technique is very powerful because it looks at the overall problem as opposed to focusing on a single cause.

The example in the Why-Why Diagram above aims to solve the problem of poor sales relating to a particular product. In many organisations the result of poor sales of a product is usually perceived as poor performance of the Sales Manager and/or the Sales Team. The first inclination is to replace the Sales Manager and/or the Sales Team, however when this is done inconsiderately the result is typically the same – continuing poor sales. The organisation has failed to clearly identify the root cause of the problem. From the example above there can be a number of different reasons why a product has poor sales. The Why-Why Diagram provides a disciplined approach to explore all the possible causes of a problem and not to focus on a single preconceived possible cause.

Humans need to continue to ask “Why?” as a means of fulfilling the needs of their curious minds. We also have been given the freedom and opportunity to challenge the status quo in our society, in our environment, of our governments and in our working lives, otherwise we will become complacent and accept what we have been told by someone else.

As an exercise try applying the Why-Why Diagram technique to a problem you are facing in your personal or business life. You can use the template I have provided – Why-Why Template.

Dr John Kapeleris

[1] Higgins, J.A. (1994), 101 Creative Problem Solving Techniques, New Management Publishing Company, Florida

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Keeping a Journal

 Goals and Objectives, Ideas, Knowledge, Opportunities, Problem Solving, Self-education, Success  6 Responses »
Jan 272010
 

It is no surprise that successful and productive people keep journals or notebooks that capture ideas, inspirations, thoughts and daily reflections. Notable people such as Leonardo da Vinci, Benjamin Franklin, Albert Einstein and Thomas Edison kept journals and notebooks to record their ideas, thoughts, observations and projects. The notebooks of Leonardo da Vinci are well known, containing notes and illustrations of nature, art, science and anatomy. Leonardo’s journals also capture many of his ideas and inventions, but also reflect the character of the person.

Journals allow you to capture ideas and gather information into one location. Ideas can easily come and go, and the only way to remember these ideas is to record them in a journal as soon as they come to mind.  You can then review and work on these ideas at a later date.

I have been keeping journals for many years and have built excellent resources of information, knowledge and wisdom. My “Ideas Journal”, that I keep separately, contains ideas and thoughts that I have recorded since 1994, during the early days of my career. I also like to record notes, ideas and actions from the books I read and the seminars that I attend. Journals have the power to take you from where you are now to where you want to be.

The main type of  journal that I use to capture inspirations, thoughts and information is an A4 artist’s visual diary consisting of thick white sheets of paper bound in double wire, with a hard black plastic front cover and thick cardboard back cover. I prefer to use blank white paper to allow the free-flow of ideas and information. You may want to use a leather-bound journal or just a small simple notebook. Each person will have their own preference.

I take the journal with me everywhere I go in case I have an inspirational thought or idea that I can record immediately. I keep the journal by my bedside when I sleep, I take the journal with me to work, I have it next to me when I am on the computer or reading a book, and I take it with me when I travel or attend seminars. When I completely fill a journal I number and  label it, and then place it on my bookshelf.

What do I record in my journal?

  • Ideas, thoughts and inspirations
  • Interesting observations or experiences
  • Goals, objectives and action plans
  • Learning notes from reading books and attending seminars
  • Business opportunities
  • Names of contacts, leads and interesting people
  • Feelings and impressions
  • Achievements that I have accomplished
  • Interesting words, quotations, internet sites, references and book lists
  • Sketches, logos, brainstorms, mindmaps, inventions and dreams
  • Research topics and outcomes
  • Creative writing and poems
  • Recipes and wine label details
  • Travel experiences

Journals can also be used to manage projects and monitor progress of action plans.  I usually use a separate “Project Journal” to focus on one specific project. For example, when I started to learn about the internet and web publishing I got myself a notebook and labelled it “Internet Journal”. In the journal I recorded my self-education notes and learning journey about the internet. I also recorded website examples, log-in details, potential domain names and other notes. Other examples of project journals include an inventor’s journal or notebook, a travel journal, and a visual journal containing sketches or photographs.

Journal writing can be used to record your life journey. It has the potential to develop your inner self and become a channel of discovery and learning. It can also be a means of self expression or emotional relief. Journaling can also be fun and inspirational by recording creative writing, capturing sketches, brainstorming, solving problems, setting goals, developing action plans or just simply thinking on paper. In the current digital economy which is dominated by the computer keyboard, monitor and mouse it can sometimes be reassuring to grab an old style fountain pen and a page in a journal consisting of thick white paper that encourages us to express our inner creative human spirit!

Periodically you will need to review the ideas and information you capture in your journal. The ideas and information can be quite valuable for further reflection and implementation. Who knows; one of your ideas might be the next “blockbuster” product, service or business opportunity!

I look forward to reading your thoughts on journaling.

Dr John Kapeleris

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