Problem Solving

STEP 1: Describe the Situation

Before identifying the issues and opportunities in the scenario, read the text materials carefully and spend some time reflecting on the Mind Map. Write several introductory paragraphs identifying the key business concepts and theories that are illustrated in the scenario and note why they are important (do remember to cite your references to the text and/or selected readings). Then describe how the situation at the subject organization reflects these concepts and theories. Taking time to understand these key business concepts and theories will also help you to then detail the issues and opportunities the organization in the scenario is facing.

When identifying ethical dilemmas, start by comparing and contrasting the rights and interests of the different key stakeholders. A good way to do this is to think about how the values of the different stakeholders compete with each other. Some values to consider might be trust, caring, accountability, fairness, respect, citizenship, and honest, among others.


STEP 2: Frame the “Right” Problem

The problem must be broadly stated so that it will lead to many possibilities, and must be one where there can be no single answer.

A litmus test for a problem statement:

It should be short and memorable—almost like a vision statement (25 words or less).
It should be about realizing opportunities.
It shouldn't have a solution or suggest a specific tactic—it should lend itself to many solutions.

One way to begin to think about how to craft a problem statement is to think about what the organization aspires to be and the major challenge it must overcome to achieve that vision. Ask:

What does the organization aspire to be?
What is the major challenge the organization must overcome to achieve its vision?

The organization will ___(a)___ by ___(b)___.


STEP 3: Describe the “End-State” Goals

The end-state goals are really how the organization will know it has become what it wants to become.

What does the ideal future end state look like? What are the goals that define it?
Things to consider when thinking about end-state goals:

Profitability Measures: revenues, expenses, margins, net income, and ROI
Innovation: Introduction of New Technologies
Social Responsibility
Employee Development
Organizational Development
Product and Market Development
Quality Control
Customer Acquisition and Retention


STEP 4: Identify the Alternatives

Do my possible solutions support my problem statement? Have I thought about how I might be able to combine several into a blended solution?

When creating alternatives:

Identify the alternative using generic benchmarking.
Make sure the findings are company specific.
Validate the alternative with the generic benchmarking findings you used to create the alternative.

Benchmarking Analysis: The A-B-C approach

Summarize/paraphrase the benchmarking findings. Include the relevant citations expected in all scholarly research.
Explain the relevance of this benchmarking to the company in the scenario.
Identify a specific solution that you can detail for the company in the scenario, based on this finding.


STEP 5: Evaluate the Alternatives:

Seldom is there a single "best solution." Second-tier alternatives integrate the best of various alternatives into a "second-order" or "second-tier" alternative.

When evaluating alternatives, ask:

How does each alternative meet the end-state goals?
What scoring system should I use? (See Table 4 in the Problem Solution Template)
Are there goals which, if not met, would eliminate the solution?
What are my assumptions and constraints?
What are some best-case solutions?

Eliminate all but the best three or four solutions.


STEP 6: Identify and Assess Risks

In this step, the two or three possible solutions are each evaluated to identify potential risks and negative consequences. If the risks or negative consequences are severe enough, a solution might be eliminated from consideration. For the solutions that remain, the following question is then asked: How do we address or mitigate these risks? Tactics are identified to address potential risks.

Moen, B., and Rundmo, T. (2004), offer a good explanation of risk mitigation. From their perspective, it includes any one or more of the following approaches, with an emphasis on attempting those measures in the sequence in which they are listed below:

· Avoiding the impact altogether by not implementing a solution or parts of a solution
· Minimizing impacts by limiting the degree or magnitude of the solution and its implementation
· Rectifying the impact by repairing, rehabilitating, or restoring the environment
· Reducing or eliminating the impact over time by preservation and maintenance operations during the life of the solution implementation
· Compensating for the impact of the solution implementation by replacing or providing substitute resources or environments


STEP 7: Make the Decision

What are the reasonable alternatives to consider?

What are pros and cons of each?

What is the best decision given the facts and considering your intuition?

For each alternative, consider the following, and label it in Table 6 in the Problem Solution Template as pro or con:
· How well does it fit with the end-state goals?
· How strong is the benchmarking validation for the alternative?
· How significant are the risks associated with the alternative?
· How well can you mitigate those risks?
· Are there any major constraints associated with the alternative?


STEP 8: Develop and Implement the Solution

When thinking about the implementation plan, consider the following:
What? Define the work to be completed.
Capability? Conduct a skills gap analysis to determine whether the organization has the capability to complete the work.
How long? Identify the time needed to complete the work.
What cost ($)? Identify the budget needed to get the work done.
How much (resources)? Identify the resources (people, supplies, etc.) needed to complete the work.
Who? Identify who is going to oversee the work.

The last step is to create a schedule and timeline. It may be best to put this in table format:
Work
Start and End Dates
Cost
Resources
Person in Charge












STEP 9: Evaluate the Results

Things that can’t be measured can’t be improved. When measuring the implementation of a solution to determine its success, ask the following questions:

· What is the expected outcome?
· Does the outcome align with the end-state goals?
· How will you measure the outcome?
· How will the measurement be tracked (especially through feedback loops)?

The goal of making measurements is to permit managers to see their company more clearly from many perspectives, and to make more effective long-term decisions. This is a very simple approach to thinking about measuring outcomes. As you make your way through the program, your approach to this step will become more sophisticated.