Documente Academic
Documente Profesional
Documente Cultură
Making
Lecture 1
1
Lecture Outline
1. Introduction to the course
2. Assessment
3. Topic 1 - Problem solving:
Introduction and identification
1
2
11
15
Study topic 1
Problem solving:
Introduction and
identification
16
Topic outline
Learning objectives
Set readings
Topic 1:
1. Problem components, phases, types, limitations, tools
2. Problem Identification
I.
II.
III.
IV.
SWAT
PEST
5Ws and root cause analysis
Value chain analysis
3. Next week
Learning objectives:
Wood et al Chapter 1
5. Compare and contrast SWOT and PEST analysis with regard to the strengths and
limitations of these tools for problem identification.
6. Describe the process of 5Ws to identify and define problems.
7. Explain briefly with an example the value chain framework for implementing
organisational strategy.
18
1. Problem components,
phases, types, limitations, and
tools
Problem-solving Phases
Problem Identification
Purpose: Establish an understanding of the
problem and a definition of the problem
Involves clarification of current state of affairs
(scope? dimension?)
Involves diagnosis of potential causes of the
problem
Involves consideration of how broadly the problem
should be defined this influences the solution
Involves consideration of whether the problem is
defined in terms of a solution
1-22
Problem-solving Phases
Solution Generation
Purpose: Identify a range of possible
solutions
It is useful to generate more than one
potential solution
To allow for comparative assessment
To predict quality of final solution chosen
To combine different potential solutions
1-23
Problem-solving Phases
Solution Evaluation
Purpose: Evaluate how well the different
potential solutions move you away from the
current state and toward the desired state
Best achieved by an explicit desired state, and an
evaluation of the potential solutions against this
target
Evaluations require two predictions:
1. What effects or outcomes each solution may generate
2. How well the outcomes for each solution will satisfy your goals
Combination of these two judgments gives you an expected value of each
option
1-24
Problem-solving Phases
Implementation Planning and Execution
Types of Problems
Static vs. Dynamic
Understanding the nature of the problem helps in
deciding the problem-solving process and in ensuring
you are solving the correct problem
Static problems = one-off problems that go away when
effectively solved. Solution analysis and steps with static
problems move you from the current state to the desired
state
E.g. buying a car or completing an assignment
Dynamic problems = those that recur over and over.
These need to be solved as a series of static problems,
or a process for solving them on an ongoing basis needs
to be created
1-26 E.g. inventory management and cash flow
Types of Problems
Structured vs. Ill-structured
The degree of structuring refers to how well the three
components of the problem are understood
Highly structured problems = those where the current
and desired states, as well as the steps for moving
between them, are clearly defined and understood
Ill-structured problems = those with a lack of
understanding at one or a combination of the three
components
Lack of understanding may be due to the nature of the
problem, or to the problem solver not having the
knowledge to solve the problem
1-27
Types of Problems
Simple vs. Complex
Complexity refers to the amount of information that has
to be processed in order to solve the problem
Common sources of complexity:
Dynamics: how the components of a problem change over
time independently of the problem solvers actions
Delays: lags in the effects of actions make it difficult to plan
solutions
Non-linear relationships between potential causes and effects
Feedback loops: situations where an outcome from your
actions (an effect) becomes a cause that influences the
current situation, which results in the need for further action
to solve problem
1-28
Feedback Loop
29
32
synthesise
Relationships may be specified
Integrate convergent and divergent thinking
Facilitates systematic problem assessment
Focusses problem solvers on position and context
37
38
39
2. Problem identification
Phase one of the problem solving process
Issues may be defined as a range of discrete problems
Problem definition is the most important and often the most difficult
phase in problem solving
The definition must be communicated clearly and agreed upon by the
problem solvers
Solutions are often not feasible, accepted or implemented due to an
ill-defined problem
We will not review some tools used to define problems. Before this,
read the Lickity Split Ice-Creeam, case from Wood et al. (2009, p. 26).
40
SWOT Analysis
Definition
A tool to identify the Strengths, Weaknesses,
Opportunities and Threats associated with the
organisational context for a particular problem
Strengths and weaknesses are internal valuecreating (or -destroying) factors (e.g. skills and
resources) that can be measured using internal
assessments or external benchmarking
Opportunities and threats are external valuecreating (or -destroying) factors a company cannot
control, but which emerge from the environment
41
SWOT Analysis
When to Use
Problem identification (exploration of
organisational context)
Solution generation (identification of
alternative problem solutions)
Solution evaluation (appraisal and
prioritisation of solutions)
To define an organisations strategy
To develop plans for work or personal life
Individuals career planning
2-42
SWOT Analysis
Simple Rules
Be realistic
Be specific
Distinguish between where your organisation
is today, and where it could be in the future
Always analyse strengths and weaknesses in
the context of your competition
Keep it short and simple
Keep in mind: A SWOT is subjective
2-43
SWOT Analysis
Guiding Questions
Strengths
Every organisation has strengths
SWOT Analysis
Guiding Questions
Weaknesses
Every organisation has weaknesses
SWOT Analysis
Guiding Questions
Opportunities
All organisations have some opportunities from
which they can gain.
What chances are available?
What are the interesting trends?
Useful opportunities can come from:
Changes in technology and markets on both a broad and a
narrow scale
Changes in government policy related to your field
Changes in social patterns
2-46
SWOT Analysis
Guiding Questions
Threats
No organisation is immune
2-47
Potential Resource
Threats
Powerful strategy
No clear strategic
direction
Serving additional
customer groups
Outdated practices,
facilities
Expanding to new
geographic areas
Loss of sales to
substitutes
Proprietary technology
Vertical integration
Cost advantages
Staff motivations, skills
Shared values,
commitment of staff
Openings to take MS
from rivals
Vulnerability to business
cycle
Alliances
Growing leverage of
customers or suppliers
Internal operating
problems.
Alliances
Openings to extend
brand name, image
2-48
Expansion of products,
services
SWOT Analysis
Limitations
Provides a description of the organisations
position
Raises awareness
Can encourage to explore widely
Can help to inform debates
Does not identify problems
Does not provide answers
2-49
SWOT
Example 1
50
SWOT Example 2
51
SWOT Example 3
52
SWOT
Exampl
e4
53
Activity
Wood et al. (2009, p. 31)
Activity 2.2 then 2.1 box complete in
small groups one for each of SWOT if time present to class
54
PEST Analysis
Definition
A tool to identify the Political, Economic, Social
and Technological factors of a particular problem
The emphasis is on the importance of the
environment when generating solutions to
problems
Organisations environment
Internal: staff, internal customers, office technology,
wages, etc.
Micro: external customers, agents, distributors,
suppliers, competitors
Macro: political, economic, socio-cultural, technological
forces
2-55
PEST Analysis
When to Use
To assist solving more complex problems for
large businesses
Revision of a strategy, marketing proposition,
etc.
Problem identification (the position, potential
and direction for a business)
Solution generation (triggers proactive thinking
about consequences of proposed problem
solutions)
2-56
PEST Analysis
Simple Rules
Be realistic
Be specific
Distinguish between where your organisation is
today, and where it could be in the future
Always analyse strengths and weaknesses in the
context of your competition
Keep it short and simple
Keep in mind: A PEST is subjective
2-57
PEST Analysis
Guiding Questions
Political - Influence upon the regulation of
businesses
2-58
PEST Analysis
Guiding Questions
Economic - Consider short- and long-term
state of trading economy
2-59
Interest rates?
Inflation?
Employment level per capita?
Long-term prospects for the economy Gross
Domestic Product (GDP) per capita?
PEST Analysis
Guiding Questions
Socio-cultural - Varies from country to country
2-60
PEST Analysis
Guiding Questions
Technology - Major driver of globalisation
PEST Analysis
Example
2-62
Activity
Wood et al. (2009, p. 39)
Activity 2.3 box complete in small
groups one for each of SWOT - if time
present to class
63
Solution generation
Can be used in combination with a fishbone diagram
To explore all potential or actual causes for a problem
What?
When?
Who?
Where?
Why?
2-68
69
2-70
2-71
2-78
Example 2
79
Assessment 1 - Quiz
Online automated quiz available from the
course site
Due date: 31 May 2015 (11:55 p.m.)
Details of task:
Self-paced series of quizzes completed online
for topics 1 to 12 (60 questions in total)
Important: All questions for each of 12 topic
81
quizzes must be answered correctly Multiple
Assessment 1 - Quiz
Note that once all correct answers has been submitted for a
topic then further attempts will not override this completed
status.
Weighting/Value: Contributes 10% towards assessment all questions must be answered correctly (otherwise zero
marks)