Strategic Decision Making and Problem Solving Hamle 2015
Strategic Decision Making and Problem Solving Hamle 2015
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Strategic Decision-making and Problem Solving
Hamle 10-12/2015
Ambassador Hotel, Addis Ababa, Ethiopia
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Climate Setting
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Getting to Know Each Other
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/ Time Manager
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Training Schedule
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/ Energy Team
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2.
3.
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Active participation
Be on time
No side talk
Our Learning Approach
Practice
• We empower our
trainees to use the
Internalize
new knowledge
• We enable participants to and skills or
make attitudinal or methods and
Understand behavioral
translate into
• We enable our trainees to transformation as part of
their profession by actual application.
perceive the meanings
Learn and purpose of each understanding the lessons
• Our trainings serve as training topics aligned learned.
a tool for participants with their profession.
to gain or acquire new
knowledge or skills.
• Limited Lecture
• Experiential sharing
• Group Discussions
Training • Cases
Methods
• Games
• Group Exercises
• Self-evaluation Exercises
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Learning Pyramid:
what’s been remembered three days later.
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%
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Your Expectations
From the
From the
Trainer
Training
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define the concepts of strategic decision
Making and problem solving
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Questions to Ponder
Core Values
• Excellence
• Integrity
• Initiation
• Teamwork
• Innovation
• Social responsibility
• Impartiality
• Learning organization
As a manager you must articulate the mission,
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An Overview of Strategic Decision
Making and Problem Solving
Reflective Activity
A
Examining Heart of an Making a
systematic
possibilities Organization choice
process
What is a problem?
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Decision-making and Problem Solving
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the
Strategic decision-making is
process of charting a course
based on long-term goals and a
longer term vision.
Strategic Strategic decision-making refers
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Types of Decisions
Programmed Non-programmed
Programmed vs. Non-programmed Decisions
Characteristics Programmed Non-programmed decisions
decisions
is available.
Managers have information on operating conditions, resource
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b) Risk … cont’d
success or failure.
The measure of risk captures the possibility that
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c) Uncertainty
What happens if you face a decision where you’re not
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c) Uncertainty … cont’d
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d) Ambiguity
situation.
Ambiguity means that
solved is unclear,
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d) Ambiguity … cont’d
Ambiguity is what employees
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d) Ambiguity … cont’d
issues.
Wicked problems are associated with
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d) Ambiguity … cont’d
ambiguity.
When they are, managers must conjure up goals and
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Decision Making Process
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5 DM 2
1. Quality
1 2 2. Speed
3. Execution
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4 4. Effort
The Eight Elements of a Great Decision
Consider the holistic
Address the root cause, not impacts of a problem
just the symptoms
Shaped by consideration
of many different
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Are Timely
2.
8 viewpoints
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7 4
Are made by a clearly Balance short-term and
5.
6.
accountable person long-term value
3. Empowering
4. Communicate Effectively
5. Delegate Pragmatically
Techniques for Improving Decision Making
1 2
Nominal
Brainstorming
Group
Technique
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Delphi Consensus
Mapping
Technique
Six C’s of Decision Making
6 1
Commit Construct
5 Enter 2
Text Here
Consider Compile
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Compare Collect
Common Mistakes Made in Decision Making
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Not Considering
Priorities
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Not taking
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enough time Mistakes
Forgetting how to
say no
Lacking of
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peace
Procrastinating
Reflective Activity
Question 1 Question 2
Take one practical decision made
Evaluate the practices of in SDB and share the procedures
DM in SDB. you have followed.
If you are repeating what you did two years ago, is something wrong?
Strategic Decision Making
and Problem Solving
TRAINING PROGRAM
Day 2
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Deloitte Consulting, January 2017
Recap - Day 1 Personal Selling Skills Training, 58
“የክረምት መሻገሪያህን በበጋ ተመልከተው፡፡” ኢትዮጵያዊያን
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64 Manage the change or it will manage you.
Decision Making Models
Decision making models
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1. Rational Choice Decision Making Model
Focuses on how decisions ought to be made.
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2. Cybernetic (Bounded Rationality/Administrative)
Decision Making Model
Derives from the criticism of the Rational Choice Model,
Information constraint about alternative options,
Today’s best decision may cause other problem,
Have three assumptions:
1) The content of the decision affect at least two values that have trade-off
relations, meaning that realizing one value comes at the expense of the other.
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3. Organizational process Decision Making Model
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5. Garbage Can Model
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5. Garbage Can Model … cont’d
Problem streams: issues or problems facing the
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6. Ethical Decision Making Models
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6. Ethical Decision Making Models … cont’d
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Closing Round
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• How relevant is decision making
under rationality to our era
where the environment is full of
Activity
volatility, uncertainty,
complexity, and ambiguity
(VUCA)?
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VUCA World
VUCA World … cont’d
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Playing cards
Decision Making Styles, Errors and
Biases
3.1. Decision-Making Styles
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3.1 Decision-Making Styles … cont’d
styles:
1. Directive,
2. Analytical,
3. Conceptual, and
4. Behavioural.
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Dimensions of Decision-Making Styles
Ways of thinking
Rational: orderly, and consistent
Intuitive: creative, and unique
Tolerance for ambiguity
Low tolerance: require consistency and order
High tolerance: multiple thoughts simultaneously
Decision-Making Matrix
3.1 Decision-Making Styles … cont’d
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3.1 Decision-Making Styles … cont’d
information available.
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3.1 Decision-Making Styles … cont’d
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3.2 Decision-Making Biases and Errors
When managers make decisions, they not only use their own
Overconfidence Bias
performance.
Immediate Gratification Bias
information.
6–
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Decision-Making Biases and Errors …
cont’d
Selective Perception Bias
Selecting organizing and interpreting events based on
none exist.
Randomness Bias
6–
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• 1. In groups, identify common
decision errors and biases that
managers in Sidama Bank
make, and describe how each
Group error or bias is made.
Exercise • 2. Determine how could reduce
and/or eliminate such errors.
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Problem Solving
Problem Solving
If you have a problem at work, it is a good idea
to sort things out. This is called problem
solving.
Problem solving involves defining a problem
and creating solutions for it.
Basic intellectual process that has been refined
and systematized for the various challenges
people face.
Involves a decision making steps focused on
trying to unravel an immediate problems which
can be viewed as a gap between “what is?”
and “what should be?”
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Problem Solving… cont’d
Problem makes leader better, not bitter.
If you think you have a problem at work, there
are a number of ways to sort things out:
1. Talk to the person you are having a problem
with.
2. Talk to your supervisor to help you sort out the
problem.
3. Have a meeting with all the people who can
help you sort out the problem.
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What is the
problem?
Why is
there a
problem?
Why is it important to solve problems at work?
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Some Do’s of Problem Solving
person.
Do attack the problem, not the person.
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Some Don’ts of Problem Solving
Don’t be rigid.
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Approaches of problem solving
Trial and error
Intuition
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Options for Problem Solving
Four main options for PS and DM.
Option 1: Problem-solver decides alone (“I’ll decide”)
(“You decide”)
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Cave Rescue
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Structured Unstructured
Crisis
Table Group Work
1. Review the managerial problem you’ve been
assigned and ensure everyone understands the
problem.
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Define the Select possible
Problem solutions
Analyse the
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02 01 05
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Select the best
problem solution
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Generate Possible Implement and
Solutions Evaluate the
solution
Tools for Distinguishing between Symptoms and Causes
of Problems
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Tools for Distinguishing between Symptoms and
Causes of Problems
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i. The “5 Whys” Method
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i. The “5 Whys” Method
Problem:
Orders are late going
•Product not completed
Why? on time
out the door.
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ii. Fishbone diagram
to a problem.
In this way, it helps to define and clarify what decision
effect.
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ii. Fishbone diagram… cont’d
the effect?’
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Fishbone diagram… cont’d
http://www.zarantech.com/blog/lean-six-sigma-tool-identifies-the-common-problem-of-late-coming-at-work-2/
Techniques to Create Alternatives
alternative solutions.
The focus here is on two techniques: brainstorming
more time.
The time and effort spent generating options depends on
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i. Brainstorming
technique is brainstorming.
It combines a relaxed, informal approach to problem solving
session.
Be careful not to overuse or misuse brainstorming.
ACTIVITY
What are the basic rules for brainstorming?
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Basic Rules for Brainstorming
Participants call out as many ideas as possible. No criticism or
judging of ideas is permitted so as to encourage the free flow of
creative ideas.
Do not edit ideas should not be elaborated or defended, just
quickly stated and recorded.
Quantity is vital — the aim is to get as many ideas as possible.
When brainstorming, all ideas are OK — even ones which seem
entirely ‘off the wall’. The obvious solution is sometimes the best.
It may not, anyway, be obvious to everyone; and it may be
possible to twist an obvious idea into something not so obvious.
Don’t fear repetition, either! Accusing someone of being repetitive
is a form of adverse criticism and should be avoided . Combining
other ideas and taking another person’s ideas a step further or
using them for yet another idea is good..
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ii. Nominal Group Technique
This approach to identifying creative alternative
solutions uses the variety of ideas available from a group
of problem solvers;
It differs from brainstorming in two ways.
First, it takes brainstorming a step further by adding a
voting process to rank the ideas that are generated.
Second, it prevents the domination of discussion by a
single person, encouraging every group member to
participate.
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ii. Nominal Group Technique
groups.
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Nominal Group Technique Procedure
a. Each individual silently writes her or his ideas on a
piece of paper
b. Each idea is then written on a board or flip chart one at
a time in a round-robin fashion until each individual has
listed all of his or her ideas.
c. The group then discusses and clarifies each of the ideas.
d. Each individual then silently ranks and prioritizes the
ideas.
e. The group then discusses the rankings and priorities of
the ideas.
f. Each individual ranks and prioritizes the ideas again.
g. The rankings and prioritizations are then summarized
for the group.
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Problem Solving Strategies
3. Assign
someone 4. Do nothing
TABLE TEAM TASK
Review your assigned problem solving strategy.
Table 1: Do it yourself
Table 2: Influence others
Table 3: Assign someone
Table 4: Do nothing
Identity 2 examples where you have applied
this problem sovling strategy
You have 20 minutes
Pitfalls in Problem Solving
Failure to follow up
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Closing Round
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Critical Thinking and Decision
Making
Concept of Critical Thinking
Critical: Critical
Thinking is thinking is
means basically any controlled,
requiring mental purposeful and
careful activity; can be more likely to
judgment. aimless and lead to obvious
uncontrolled; it beneficial
results.
may serve a
purpose.
Standards of Critical Thinking
01 Clarity Relevance 04
02 Precision Consistency 05
Logical 06
Correctness
03 Accuracy
08 Completeness 07
Fairness
Major Habits of Critical Thinkers
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Self-Regulation . Analysis
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Evaluation . Inference
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Explanation
The Critical Thinking Mind
=
The Educated Mind
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Importance of Critical Thinking
Decision Problem
Making Solving
Professional Creativity
Judgment
System Thinking
Focus on
interrelationshi See process
p rather than
snapshots
Show that
there is no
Seeing circles
outside
of causality not
in line
Emotional Intelligence and Decision
Making
Last night I opened the windows and let mosquitoes all
inside then I closed the windows and slept outside. "It is
called confusing the enemy”.
The four intelligence /capabilities
The whole person paradigm (Steven Covey)
Capacity for
Higher dimension of knowledge and the
intelligence ability to analyze,
Our drive to live for meaning reason, think
and propose… having a abstractly, use
sense of meaning to our life. language, visualize,
E.g. Abebech Gobena and comprehend.
Gandhi, Marthin Luther,
Mother Teresa…
weaknesses.
• Self awareness can be developed:
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Blind
Open Johari Window area/self/s
area/self,
free pot
area/self Known to self Not known to self
Not known
to others Hidden Unknown
Hidden
area/self,
Unknown
Avoided
area/self
area/self
The Johari Window
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Leading Organization
Managing large group or various groups
• Leading Strategic Direction/Strategic
Foundations
• Strategic Analysis (Environmental scan)
• Managing Change in organizations
• Culture Awareness
• Systems Thinking
• Organizational Communication
How to Master Self-awareness
4. Create boundaries
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General rule on feedback
KKK
3Ks
1. Self Control
1 2 2. Trustworthiness
3. Adaptability 3
4 4. Innovativenes
s
3. Social Awareness
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3. Social Awareness … cont’d
Social awareness is an expansion of your emotional
awareness.
Socially aware leaders and managers are good at
acknowledging people’s strengths, accomplishments,
and development.
• Empathy
Social • Service Orientation
Awareness • Social Responsibility
Skills • Organizational Awareness
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4. Relationship Management
RM is the ability to be aware of the emotions of the people
you interact with and along with your own emotions and to
build a strong working relationship. You need to:
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Closing Round
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