DECISION MAKING
&
PROBLEM SOLVING
BY: SOFT SKILLS WORLD

“We cannot solve our problems
with the same thinking we used
when we created them”
-Albert Einstein

Let’s Take a Decision

PROBLEM SOLVING
• Problem - a discrepancy
– current state-desired state
• Decisions- Choices
– Two or more alternatives
• Decision Making
– process of choice making

General model of problem solving
• Identify problem
• Define Objective
• Make a predecision
• Generate alternatives
• Evaluate alternatives
• Make a choice
• Implement choice
• Follow up

Types of Decisions
• Programmed
– Simple, routine; preestablished routines and procedures;
lower level workers (usually alone)
• Non programmed
– Complex, creative; no prescriptions available, upper level
supervisors (usually in groups)
• Strategic
– high level, non programmed, directions for organization

Types of Decisions
• Certain vs. uncertain
– knowledge of decision outcomes
– probability of decision outcomes
– information available
• Uncertainty Reduction

Types of Decisions
• top down vs. empowered
• decentralisation
• premises
• computers

Individual differences in decision making
• Directive
– prefer simple, clear solutions
– make decisions rapidly
– don’t consider many alternatives
– rely on existing rules

Individual differences in decision making
• Analytical
– prefer complex problems
– carefully analyse alternatives
– enjoy solving problems
– willing to use innovative methods

Individual differences in decision making
• Conceptual
– socially oriented
– humanistic and artistic approach
– solve problems creatively
– enjoy new ideas

Individual differences in decision making
• Behavioural
– concern for their organizations
– interest in helping others
– open to suggestions
– rely on meetings

Moving away from the rational
• bounded rationality
• intuition
• selective perception
• halo effect
• contrast effect
• projection
• stereotyping
• self fulfilling profecy

Moving away from the rational
• obvious candidate
• garbage can model
• self interests
• enactment
• training

Circle of Influence vs. Circle of Control
Some things are within our control
Circle
Some things are outside our control but
of they affect us
Control When we keep working on our circle of
control it expands
Circle of Concern

Circle of concern / circle of influence
All the things I care about
All things that affect me
All things that impact work
Circle of Concern
Circle of
Influence
All the things I can affect
All things I can impact
All things I can change
The 7 Habits of Highly Effective People
- Stephen Covey
16

Where is your focus?
Circle of Concern
Circle of Concern
Circle of Circle of
Influence Influence
Reactive Proactive
The 7 Habits of Highly Effective People
- Stephen Covey
17

Basic Requirements of Decision making

Skills & Qualities
 Knowledge / expertise in a given field
 Past Experience
 Communication Skills
 Self Confidence/Conviction
 Analytical Skills
 Time Management Skills
 Creativity
 At last but not the least……….

Accountability & Onus

How do we make Decisions?

Six C's of Decision Making
1. Construct - a clear picture of precisely what must be decided
2. Compile - a list of requirements that must be met
3. Collect - information on alternatives that meet the
requirements
4. Compare - alternatives that meet the requirements
5. Consider - the "what might go wrong" factor with each
alternative
6. Commit - to a decision and follow through with it

Decision Filters
When
Who
Problem Faced Dilemma Decisions
Why
What
How
(Implementation)

The Decision-Making
Process
Implement the
Define the Evaluate
chosen
Problem Alternatives
Alternative
Gather facts and Select the best Follow up and evaluate
develop alternative. the chosen alternative.
alternatives.

Let’s Take Another Decision

Problem Solution
• Analyzing the Problem
• Defining the Problem
• Identify the Causes
• Generating Solutions
• Decision

Analyze the Problem
• Key Issues
• Ideal Outcomes
• Avoid Judgments

Defining the Problem
• Why it is Problem?
• What type of problem is it ?
• How urgent is the problem?
• What are the consequences ?

Causes
• Mindset
• Environment
• Inability
• Lack of Experience

Generating Solutions
• Optimal Solution
• Maximum Gain / Minimum Loss
• Predictions (Trial and Error)

Decisions
• What is the probability of success?
• Be Confident
• Avoid Dilemmas
• Forecast
• Choose alternative which best meets the criteria.

Problem Solving Test
How Good are You At Problem Solving

Interpretation
Score Comment
You probably tend to view problems as negatives, instead of seeing them as
opportunities to make exciting and necessary change. Your approach to
problem solving is more intuitive than systematic, and this may have led to
36-55
some poor experiences in the past. With more practice, and by following a
more structured approach, you'll be able to develop this important skill and
start solving problems more effectively right away.
56-75 Your approach to problem solving is a little "hit-and-miss." Sometimes your
solutions work really well, and other times they don't. You understand what
you should do, and you recognize that having a structured problem-solving
process is important. However, you don't always follow that process. By
working on your consistency and committing to the process, you'll see
significant improvements
75 & You are a confident problem solver. You take time to understand the problem,
above understand the criteria for a good decision, and generate some good options.
Because you approach problems systematically, you cover the essentials each
time – and your decisions are well though out, well planned, and well
executed. You can continue to perfect your problem-solving skills and use
them for continuous improvement initiatives within your organization.

Let’s Call It A Day

Let’s Call It A Day

Share Your Experience
• 1 incident when problem was solved by you
• 1 incident when you were not able to solve the problem

The 7 Habits of Highly Successful People
Stephen R. Covey, Simon & Schuster, Inc., 1989
• Be Proactive - take the initiative
• Visualize the end from the start - know where you’re going
• List priorities (Put first thing first)
• Think WIN/WIN
• Understand -- listen, listen, listen / learn, learn, learn (SEEK
FIRST TO UNDERSTAND, THEN BE UNDERSTOOD)
• Synergize -- make the whole more than the sum of the parts
• Personal Renewal (SHARPENING THE SAW)

Problem solving ?
Two wilderness hikers chanced upon a fierce grizzly bear.
One of them pulled his running shoes from his pack and
rapidly laced them up. His companion yelled in astonishment,
“Are you crazy? You can’t outrun a bear.”
His reply as he took off down the trail,
“I don’t have to outrun the bear.
All I have to do is outrun you.”
Defining the real problem. A difficult task!

Problem Solving Test
4 Square Questions
B A
Look carefully to the
diagram
Now I will ask you 4
questions about this
square.
Are you
ready?
C D
1

The Kepner-Tregoe (K.T.) method
• The Kepner-Tregoe (K.T.) method
• Problems are rated according to:
• • Timing (urgency)
• • Trend (potential for growth or disaster)
• • Impact (how serious; how will it affect others?)
• High (H); Medium (M); Low (L)
• Also, what type of K.T. to carry out?
• Problem analysis (PA);
• Decision analysis (DA);
• Potential Problem analysis (PPA)
• Core K.T. ideas:
• Things were OK; they’re not now. What’s changed?
• Something distinguishes
• what is a problem and
• what is not.
• Who was involved?
• Who was not?
• Why was it important?
• Why is it unimportant?
• How was the conclusion reached?

Kepner-Tregoe approach to decision analysis
- Steps
• Prepare a decision statement having both an action and a result
component.
• Establish strategic requirements (Musts), operational objectives (Wants),
and restraints (Limits)
• Rank objectives and assign relative weights.
• Generate alternatives.
• Assign a relative score for each alternative on an objective-by-objective
basis.
• Calculate a weighted score for each alternative and identify the top two
or three.
• List adverse consequences for each top alternative and evaluate
probability (high, medium, low) and severity (high, medium, low).
• Make a final, single choice between top alternatives.

Fish Bone Approach

“Thinking-- The Ultimate Human Resource”
• We can always improve our thinking skills.
• Confused thinking arises from trying to do too much at once.
• We should emphasize what can be, not what is.

Six Hats
• There are six different imaginary hats that you can put on or
take off.
• Think of the “hats” as thinking icons.
• Each hat is a different color and represents a different type
or mode of thinking.
• We all wear the same hat (do the same type of thinking) at
the same time.
• When we change hats -we change our thinking.
• Edward De Bono M.D., Ph.D., (philosophy, medicine &
psychology), Rhodes scholar

Six hats is parallel thinking

The blue hat
• Thinking about thinking
• Instructions for thinking
• The organization of thinking
• Control of the other hats
• Discipline and focus

The blue hat role
• Control of thinking & the process
• Begin & end session with blue hat
• Facilitator, session leader’s role
• Choreography
– open, sequence, close
– Focus: what should we be thinking about
– Asking the right questions
– Defining & clarifying the problem
– Setting the thinking tasks

Open with the blue hat…
• Why we are here
• what we are thinking about
• definition of the situation or problem
• alternative definitions
• what we want to achieve
• where we want to end up
• the background to the thinking
• a plan for the sequence of hats

…and close with the blue hat
• What we have achieved
• Outcome
• Conclusion
• Design
• Solution
• Next steps

White Hat Thinking
• Neutral, objective information
• Facts & figures
• Questions: what do we know, what don’t we know,
what do we need to know
• Excludes opinions, hunches, judgements
• Removes feelings & impressions
• Two tiers of facts
– Believed Facts
– Checked Facts

Red Hat Thinking
• Emotions & feelings
• Hunches, intuitions, impressions
• Doesn’t have to be logical or consistent
• No justifications, reasons or basis
• All decisions are emotional in the end

Yellow Hat Thinking
• Positive & speculative
• Positive thinking, optimism, opportunity
• Benefits
• Best-case scenarios
• Exploration

Green Hat Thinking
• New ideas, concepts, perceptions
• Deliberate creation of new ideas
• Alternatives and more alternatives
• New approaches to problems
• Creative & lateral thinking

Black Hat Thinking
• Cautious and careful
• Logical negative – why it won’t work
• Critical judgement, pessimistic view
• Separates logical negative from emotional
• Focus on errors, evidence, conclusions
• Logical & truthful, but not necessarily fair

Six hats summary
Blue: control & organization of thinking
White: objective facts & figures
Red: emotions & feelings
Yellow: hope, positive & speculative
Green: creativity, ideas & lateral thinking
Black: cautious & careful

Force Field Analysis

Activity Time
• BCCI Selection Committee