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Problem Solving / Decision Making Chapter 1 - 1

Problem Solving /

Decision Making

Kepner-Tregoe

The New Rational ManagerChapter 1

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Chapter 1 Contents

Organizational Effectiveness

Four Basic Patterns of Thinking

Basic Patterns in an OrganizationalContext

Some Thoughts on Teamwork

Applying the Model

Rational Management

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Organizational Effectiveness

Sadly, most of organizations today donot operate as integrated enterprises

disparate effectiveness & efficiency

overlaps & gaps

lack of communication

synergism & counter productivity

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Kepner-Tregoe

K-T have been in the business oforganizational improvement for over 30

yearsOur text documents the results of K-Ts

experience in this area through

research, trial, error, and innovation management skills

installation

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K-Ts Groups vs Teams

Groups are characterized by:

understanding

sensitivity

adaptation

common regard

psychological benefit

There is a closeness and an intention tobe mutually supporting

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K-Ts Groups vs Teams

By contrast, Teams are characterized by:

varying expertise

varying methods

common goal

tolerate one another enough to work

closely togetherThe goal is to win not necessarily to

become friends

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A Management Team

Entrepreneur - aggressive, driven, quick

Finance - analytically focused, thorough

Sales - enthusiastic, sometimesimpatient

R&D - balance between feasible anddesirable

Production - reality driven

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The Paradox

We need this diversity on amanagement team to provide the

necessary expertise to make theorganization successful.

BUT, with so many different mindsets,

how can we coordinate their efforts inan effective and efficient way.

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The K-T Solution

We need simple, common, sensibleguidelines and procedures expressed in

commonly understood language. for gathering, sharing, and using

information

for solving problems for making decisions

for protecting the organizations future

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A BIG Plus to the K-T

ApproachSkills for good PS/DM are transferable

sports team analogy (W pg 3; B pg 15)

unnamed case example (W 4-5; B 16-17)

Installing Rational Process case (W 5-6; B17-18)

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The Human Nature Aspect

People generally resist change

BUT, people will embrace change that

seems good for them and the thingsthey care about.

A system for change must

facilitate introduction of ideas

provide means for implementation

offer rewards

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Four Basic Patterns of

Thinking READ & THINK CAREFULLY about what

this overhead says - it is the crucial

foundation of the K-T approach. EVERY productive activity is related to one of

four basic patterns of thinking.

(1) What is going on?

(2) Why did this happen?

(3) Which course of action should we take?

(4) What lies ahead?

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The Four Thinking Patterns

Just How Important Are They?These four patterns have not altered

substantially since the emergence of the

human race.They are universally applicable to any

situation.

Survival is guaranteed by the ability touse these patterns.

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Why Did This Happen?

Relating Cause to EffectAssign meaning to what we observe by

relating events to outcomes.

Assign meaning by relating causes toeffects.

Allows us to move from reactive to

proactive.

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Which Course of Action?

Making ChoicesAllows us to make reasoned choices.

Three major activities are involved:

Determination of purpose

Consideration of available options

Assessment of relative risks

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What Lies Ahead?

Anticipating The FutureThis future oriented thinking allows us

to imagine and construe the future.

Closely related to the cause and effectthinking pattern.

There is much unfulfilled potential in

this area.

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The Four Basic Rational

ProcessesApplying the four basic thinking

patterns in an organizational setting

leads to systematic procedures for usingand sharing information aboutorganizational concerns.

Known as the 4 basic rational processes,they are universally applicableregardless of cultural setting or content.

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ProcessesSituation Appraisal (Chapter 7)

What is Going On?

Breaks down complex into componentsSeparates relevant from irrelevant

Sets priorities and delegates responsibilities

IdentifiesProblems to be solved

Decisions to be made

future events to be analyzed

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ProcessesProblem Analysis (Chapters 2 & 3)

Why Did This Happen?

Based on the cause-and-effect thinking pattern

Enables us to:

identify, describe, analyze, and resolve

situation in which something has gone wrongwithout explanation

Methodical means to extract relevant anduseful information about a situation

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ProcessesDecision Analysis (Chapters 4 & 5)

Which Course of Action?

Based on the choice-making thinking pattern

Methodical means to examine:

the purpose of the decision

the available options the risks of each alternative

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ProcessesPotential Problem (Opportunity)

Analysis (Chapter 6)

What Lies Ahead?Based on the anticipating the future thinking

pattern

Methodical means to:

avoid possible negative consequences

turn situations to our advantage

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The Two Remaining Chapters

Chapter 8

Application of Rational Management to

human performance problemsChapter 9

Installing Rational Management within an

Organization

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Team Work

All people possess the capacity toutilize the four basic thinking patterns

they are not necessarily used automatically they are not all used equally well

they are not easily shared

We need to: Raise the level of skill in thinking

Enhance the ability to share these skills

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Team Work

If you have not read the Hunting andGathering case (W 16-18; B 27-29), be

sure you do. It is an interesting discussion of the rise

and fall of team work.

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Applying the Model

We need:

a means to act as a team and yet maintain

individuality a means which can be used regardless of

content

accurate communication with commonunderstanding

PS/DM based on facts and data

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Problem Solving / Decision Making Chapter 1 27

Rational Management

Rational Management means makingfull use of the thinking ability of the

people in an organization continuing process

individual payoff is great / organizational

payoff is far greater major change / major commitment

conscious use of common approachesexpressed in simple, common language

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