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Problem Solving / Decision Making

Kepner-Tregoe The New Rational Manager Chapter 1


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Chapter 1 Contents
Organizational

Effectiveness Four Basic Patterns of Thinking Basic Patterns in an Organizational Context Some Thoughts on Teamwork Applying the Model Rational Management
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Organizational Effectiveness

Sadly, most of organizations today do not 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 of organizational improvement for over 30 years Our 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 to be mutually supporting


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Problem Solving / Decision Making

K-Ts Groups vs Teams


By

contrast, Teams are characterized by:

varying expertise varying methods common goal tolerate one another enough to work closely together
The

goal is to win not necessarily to become friends


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Problem Solving / Decision Making

A Management Team
Entrepreneur

- aggressive, driven, quick Finance - analytically focused, thorough Sales - enthusiastic, sometimes impatient R&D - balance between feasible and desirable Production - reality driven
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The Paradox
We

need this diversity on a management team to provide the necessary expertise to make the organization successful. BUT, with so many different mindsets, how can we coordinate their efforts in an effective and efficient way.
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The K-T Solution


We

need simple, common, sensible guidelines 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 Approach


Skills

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; B 17-18)

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The Human Nature Aspect


People

generally resist change BUT, people will embrace change that seems good for them and the things they 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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Problem Solving / Decision Making

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 to use these patterns.
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What Is Going On? Assessing and Clarifying


This

is the most important thinking pattern It allows us to examine a confusing situation and:
assess clarify sort out impose order

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Why Did This Happen? Relating Cause to Effect


Assign

meaning to what we observe by relating events to outcomes. Assign meaning by relating causes to effects. Allows us to move from reactive to proactive.

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Which Course of Action? Making Choices


Allows

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 Future


This

future oriented thinking allows us to imagine and construe the future. Closely related to the cause and effect thinking pattern. There is much unfulfilled potential in this area.

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The Four Basic Rational Processes


Applying

the four basic thinking patterns in an organizational setting leads to systematic procedures for using and sharing information about organizational concerns. Known as the 4 basic rational processes, they are universally applicable regardless of cultural setting or content.
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The Four Basic Rational Processes


Situation

Appraisal (Chapter 7)

What is Going On?


Breaks down complex into components Separates relevant from irrelevant Sets priorities and delegates responsibilities

Identifies
Problems to be solved Decisions to be made future events to be analyzed

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The Four Basic Rational Processes


Problem

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 wrong without explanation

Methodical means to extract relevant and useful information about a situation


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Problem Solving / Decision Making

The Four Basic Rational Processes


Decision

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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The Four Basic Rational Processes


Potential

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

Application of Rational Management to human performance problems

Chapter

Installing Rational Management within an Organization

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Team Work
All

people possess the capacity to utilize 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 and Gathering 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 common understanding PS/DM based on facts and data
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Rational Management
Rational

Management means making full 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 approaches expressed in simple, common language

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