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4.1 Introduction
Projects get conceived as a result of the strategy planning. A strategy plan
to set up a new business unit may have been already made by the business
promoter or a team of business promoters. In a running business unit, new
projects get conceived to increase the volume of business or to increase its
profitability or for diversification of business or even for maintaining the
market share in the face of increasing and stiffer competition. The company
must strive to keep generating ideas by creating a favorable environment
within the organization. The company must also keep evolving strategies by
scanning the environment and continuously appraising its strengths and
weaknesses. When a number of projects come up for consideration, the
company needs to deploy criteria for selecting the projects for
implementation.
Objectives
After studying this unit, you will have an understanding of:
1. Group techniques deployed for generation of project ideas in the
organization
No criticism of ideas
Go for large quantity of ideas
Build on each others ideas
Encourage wild and exaggerated ideas
There is a facilitator who composes the brainstorming panel and an idea
collector (facilitator can himself be the idea collector) to record the
suggested ideas. The facilitator chairs the session without suggesting his
own ideas, but ensures that ground rules are followed, and the environment
in the group meeting stimulates creativity. Examples of leading questions he
can ask during the session are „Can we combine these ideas?‟, „How about
looking from another perspective?‟ The idea-collector keeps writing on
sheets of flipchart the ideas called out by members without paraphrasing
and numbers each idea for future reference.
Brainstorming can be used for just generating ideas for others to evaluate
and select. But a more effective strategy is to allow the group itself to
evaluate and select one as the solution to the problem proposed to the
group. In either case, there should be incentives for participation so that
participants maintain their efforts.
Brainstorming is a lateral thinking process. It is particularly helpful when you
need to break out of stale, established patterns of thinking, so that you can
develop new ways of looking at things. This helps when you need to look at
new opportunities, where you want to improve the service that you offer, or
when existing approaches just are not giving you the results you want. It
asks that people come up with ideas and thoughts that seem at first to be a
bit shocking or crazy. You can then change or improve them into ideas that
are useful, and often stunningly original. During the brainstorming process,
there is no criticism of ideas, as free rein is given to people‟s creativity
(criticism and judgment cramp creativity) which can take the idea to the next
stage. Group brainstorming can be very effective as it uses the experience
and creativity of all members in the group. When individual members reach
their limit on the idea, another member‟s creativity and experience is
brought out. This often makes group brainstorming sessions enjoyable
experiences, which greatly facilitate bringing team members together.
Individual brainstorming is best for generating many ideas, but tends to be
less effective at developing them. Group brainstorming tends to develop
fewer ideas, but takes each idea further. Group brainstorming needs formal
rules to work smoothly. This is to ensure that uncreative people do not crush
ideas given by individual group members, who may thus feel humiliated.
Nominal group technique:
This is a type of brainstorming that encourages all participants to have an
equal say in the process. Participants are asked to write their ideas
anonymously. The moderator collects the ideas and each is voted on by the
group. Voting can simply be by show of hands. The top ranked ideas are
sent back to the group or sub groups for further brainstorming. Each
subgroup will come back to the whole group for ranking the listed ideas.
Sometimes ideas that were previously dropped may be brought forward
again once the group has revaluated the ideas. This method requires a
trained facilitator, as well as priming and encouraging the group to embrace
the process. It may take a few practice sessions to train the team in this
method before tackling the important ideas.
Delphi method:
This is a systematic, interactive, forecasting method which relies on a panel
of independent experts, carefully selected. It is based on the principle that
forecasts from a structured group of experts are more accurate than those
from unstructured groups or individuals. The experts answer prepared
questionnaires in two or more rounds. After each round, a facilitator provides
an anonymous summary of the experts‟ forecasts from the previous round s
well as the reasons they provided for their judgments. The participants can
therefore revise their earlier answers by knowing the responses of other
members of the group. It is expected that in this process the range of the
answers will decrease and the group will converge towards the correct
answer.
The process is stopped after a predetermined stop-criterion (e.g. number of
rounds, achievement of consensus). Usually, participants maintain
anonymity even after completion of the final report. The facilitator
(coordinator of the Delphi method) sends out the questionnaire, collects and
analyses responses, and identifies common and conflicting viewpoints. The
process continues up to the stop-criterion stated above. Traditionally, this
method has aimed at consensus by iteration. However, companies can also
opt to use the method as a decision support method by focusing on ongoing
Process Technology
Innovation innovation
Joly 1993
“Creativity is the ability of thinking out of scheme, reaching new and
functional conclusions, suited to solve a problem or to catch an opportunity”
Bertone 1993
“The fundamental „ingredients‟ of creativity are: the expertise in a specific
field or expertise, it is to say those sectorial skills , representing the grasp in
a particular area ; the second ingredient is the ability to thinking in a creative
way, in other words the ability to look at the events from a new perspective
and to imagine a wider range of different possibilities ; finally, the third and
last ingredient is the intrinsic motivation, resulting from the pleasure of doing
a specific thing”
Teresa Amabile
Whatever the definition that is propounded by various authors on the
subject, most agree that creativity starts from a good problem‟s formulation.
In order to set a problem and to solve it by means of using a provoked
creativity, it is necessary to adopt a proper method of working, which is very
Sikkim Manipal University Page No. 102
Introduction to Project Management Unit 4
different from the usual one, since it implies the use of some suited
techniques. In practical terms, two paths have to be paced simultaneously to
apply creativity.
1. the 1st path is a psychological one and requires the abolition of
inhibitions i.e. personal and natural hindrances
2. the 2nd path is a logical one and implies the adoption of a well identified
action process as well as intuitions based on techniques and methods
properly chosen and adapted to the specific problem to be solved
Another model of interest is that propounded by Mr. Ned Herrmann in 1995,
who stated that there are four pure styles of thinking that combine to yield a
wide range of different thinking styles. He developed an instrument that
measures these preferences in an individual, called the Hermann Brain
Dominance Instrument (HBDI). The individual respondent receives a profile
in which score ranges from1, which is most preferred, to 3, which is least
preferred. There is no 0 score as everyone uses all four styles to some
degree. Each style is put in one quadrant of a circle.
Quadrant A thinking associated with this quadrant is logical, analytical,
technical, mathematical and problem solving. e.g. people in professions of
engineering, mathematics, legal and financial and some middle
management positions.
Quadrant B thinking associated with this quadrant is similar to A, but with
significant differences. Words that describe B quadrant are organizational,
administrative, conservative, controlled and planning. e.g. supervisors,
administrators, planners, bookkeepers, cost accountants.
Quadrant C Thinking associated with this quadrant is interpersonal,
emotional, musical, spiritual and talkative – in summary very „feeling‟ and
„people oriented‟ e.g. nurses, social workers, musicians, teachers,
counselors.
Quadrant D Thinking associated with this quadrant can be described as
artistic, holistic, imaginative, synthesizing, conceptual e.g. people who feel
drawn to careers involve entrepreneurial effort, facilitation, advising,
consulting, art, sales.
Mr. Hermann is careful to emphasize that this instrument measures only the
individual thinking preferences, not thinking abilities or skills. He also
Individual creativity
low high
Organizations based Successful
on continuous organizations
Organizational high development, on High rate of
systematic research of innovations
efficiency
Few innovations, just Low rate of
limitations innovations,
Not effective sometimes
creativity low organizations radical, based on
entrepreneurial
spirit of
individuals
TABLE B
Source: Same as Table 4 A
1. Always pretend to know more than everybody around you.
2. Get employees to fill in time sheets
3. Run daily checks on progress of everyone‟s work
4. Ensure that highly qualified people do mundane work for long periods.
5. Put barriers up between departments
6. Don‟t speak personally to employees, except when announcing
increased targets, shortened deadlines and tightened cost constraints
7. Ask for a 200-page document to justify every new idea
8. Call lots of meetings
Then try all combinations of the variables for the key attributes e.g. liquid,
can, vegetarians.
While creativity is typically used to refer to the act of producing new ideas by
individuals or groups, innovation is the process of both generating and
applying such creative ideas in some specific context. In an organization,
therefore, the term innovation is often used to refer to the entire process by
which an organization generates creative new ideas and converts them into
novel, useful and viable commercial products, services and business
practices. Creativity by individuals and teams is a starting point for
innovation, the first being a necessary but not sufficient condition for the
second. (Amabile)
Opportunities ( O ) Threats ( T )
What good opportunities are What trends could harm you?
open to you? What is your competition
What trends could you take doing?
advantage of? What threats do your
How can you turn your weaknesses expose you to?
strengths into opportunities?
1. 1.
2. 2.
3. 3.
4. 4.
. .
. .
Weaknesses (W) WO WT
1. “Mini-Maxi” “Mini-Mini” Strategy
2. Strategy
3. Strategies that Strategies that
. minimize minimize weaknesses
weaknesses by and avoid threats
.
taking advantage
of opportunities
S1 S2 S3 S4
O1
O2
O3
O4
Fig. 4.5: SWOT matrix
Step 4: Evaluate the options generated, and identify the relative benefits
which is discussed in the section 4.6.
4.3.2 Scanning the Environment for SWOT analysis
The environment (external) which is scanned to identify opportunities and
threats for SWOT analysis can be divided into six broad sectors as shown
under;
COMPETITORS
ECONOMY GOVERNMENT
BUSINESS
SOCIO-DEMOGRAPHICS TECHNOLOGY
SUPPLIERS
(The Customer sector, which is of equal significance, is considered
embedded in Economy or Government)
(The max. possible score for a project will be 5, and if the hurdle value is set
as 3, this project passes the initial screening)
Sometimes it may be difficult to give weights and ratings to the factors. This
happens when there are a number of variables involved that affect the
measure of each factor that a project or strategy would yield. In such a case,
the priority matrix is worked out by comparing whether project A is better
than project B (designated by 1 for project A & 0 for project B – this can be
called a binary digit approach or a paired comparison ). The same is done
by pairing various projects. As an example, the final matrix for projects A, B,
C, D will turn out as under:
4.5 Summary
Projects are conceived and initiated as a result of strategy planning. While
setting up a new business unit is a project, a business unit can ill afford to
remain static in today‟s competitive scenario. Avenues for business growth,
diversification, and sometimes, even for maintaining market share, need to
be constantly explored by generation of ideas in any organization.
Successful organizations continuously scan the environment, keep
appraising their strengths and weaknesses and strive to provide a favorable
environment for such idea generation in the organization. Thus ideas are
thrown up for initiating projects.
Many organizations understand that idea generation can take place at any
hierarchical level and adopt group techniques to tap individual creativity and
nurture it at the organizational level. Brain storming, nominal group
technique, Delphi method and mind mapping are some group techniques
deployed for idea generation. The company must foster an organizational
culture and methods to tap creativity both at the individual and
organizational levels. In a section of this unit, some factors enabling
individual creativity, as well as some factors which tend to kill creativity were
listed. A good problem definition is also important to elicit ideas and
solutions which are relevant to the problem.
Periodic SWOT analysis, which is a strategic planning tool, also helps in the
generation as well as screening of ideas. SWOT analysis examines the
organization‟s internal environment to identify its strengths and weaknesses,
and the external environment to identify the opportunities and threats. A
corporate appraisal can be done for an analysis of the internal environment
considering factors such as the organization‟s USPs (Unique selling points),
marketing & distribution, production & operations, R & D, corporate
resources & personnel and finance & accounting.
Idea generation may yield several projects for consideration. These need to
be screened for selection and subsequent initiation. A project rating index
can be adopted for rating and prioritizing the projects. The analytical
hierarchy approach or a qualitative approach, as found relevant can be
adopted for selection and initiation of projects. Net positive value method is
popularly adopted for project selection.
Answers to TQs
1. (Section 4.1)
2. (Section 4.2.1)
3. (Last portion of section 4.2.1)
4. (Section 4.2.2)
5. (Section 4.2.3)
6. (Section 4.2.3)
7. (Section 4.3.2)
8. (Section 4.3.1)
9. (Section 4.3.3)
10. (Section 4.4)