Problem Solving In a World of Constant Change John G. Mathers 2013

Growing a Business is Challenging! Becoming Change-ABLE Page 2 Governance Technology Operations Regs Risk Growth Strategy Sustainability Talent Macro Income Output Consumption Unemployment Inflation Savings Investment Intl trade Intl finance Regs Micro Demand Supply Costs Pricing Channels Competitors Labor

Handling “Problems” is What You Do Becoming Change-ABLE Page 3

So Willingness to Change is Required! “All great changes are preceded by chaos.” Deepak Chopra Spiritual Guide “Understanding is the first step to acceptance, and only with acceptance can there be recovery.” J.K. Rowling Writer Page 4 Becoming Change-ABLE

And Change Means … Your Mental Map! “When the structure of the industry [or a market … or a business] changes, all of the elements change too. The mental map that you have been carrying with you all these years and relied upon in charting your company's course of action suddenly loses its validity … [and] you haven't had a chance to replace it with a new mental map.” Andy Grove Only the Paranoid Survive Page 5 Becoming Change-ABLE

Becoming an Extraordinary Business “Successful organizations that have sustained rapid growth for years while achieving even higher levels of efficiency and quality have change woven into the very fabric of the organization. Like a school of fish these organizations are constantly moving -- they are fast, focused and extremely flexible.” Page 6 John Mathers & Bill Daniels Change-ABLE Organization Becoming Change-ABLE

Page 7 Lots of Problem-Solving Tools RR CC EFFECT - /+- /+ Affinity Cause Effect Diagram Interrelationship Diagram Solution Grid Our Answer Stakeholder Plus Minus Becoming Change-ABLE

But Where to Start? Most Common Approach to Problem-Solving Becoming Change-ABLE Page 8 ACTION OUTCOME and Mismatch to Expectations Primary Response to Mismatch: CHANGE THE ACTION Primary Response to Mismatch: CHANGE THE ACTION ASSUMPTIONS

Page 9 Most Effective Approach: Double Loop Learning GOVERNING VALUES & ASSUMPTIONS GOVERNING VALUES & ASSUMPTIONS OUTCOME: Mismatch to Expectations ACTION Primary Response to Mismatch: CHALLENGE THE VALUES and ASSUMPTIONS Primary Response to Mismatch: CHALLENGE THE VALUES and ASSUMPTIONS Single Loop Becoming Change-ABLE

Page 10 The Learning Environment ASSUMPTIONS Single Loop: Correction Double Loop: Reflection SUCCESS “Making Progress” FAILURE ACTION Threat and Fear Blaming or “Fight” Resignation or “Flight” LEARNING graphic based upon materials from Dr. W. E. Deming and Dr. J. D. Milojkovic Management Board CEO/Pres Becoming Change-ABLE

Page 11 Overview of Problem-Solving Process Generate Plan Plan Analyze 50% Gather Data 30% Interpret Data 20% Plan Actions Becoming Change-ABLE

Page 12 HOW: Define the topic Generate and record ideas on cards Display the cards (leave room) Arrange the cards into columns of random, but related themes Define the related themes and create the "Header Cards" Draw the finished affinity Affinity Diagram WHEN: To gather and organize large amounts of data into natural groupings of ideas, opinions or issues. Becoming Change-ABLE

Page 13 Interrelationship Digraph WHEN: To identify the sequential relationships among ideas/issues RR CC HOW: Agree on issue/problem statement Display cards Draw relationship arrows Get feedback, then review and revise Tally the incoming/outgoing arrows Incoming = Results Outgoing = Major Causes Select Key Items and Draw final ID Check the results against your common sense Becoming Change-ABLE

Page 14 WHEN: To visually display and examine the possible root causes of a specific problem or opportunity. EFFECT Cause and Effect Diagram HOW: Define Problem Statement Draw the "C&E" Diagram, using the "4Ps" or “4Ms” Generate and plot a list of causes on the "C&E" Diagram Ask "Why?" 5 times to ensure root cause analysis Identify the Most Likely Causes Becoming Change-ABLE

People Processes Assumptions Materials Documentation Equipment Direction Decisions etc. Page 15 Cause and Effect Diagramming EFFECT Becoming Change-ABLE

Page 16 Stakeholders Stakeholder Our Answer Stakeholder Becoming Change-ABLE

December 2001 Page 17 Stakeholder Analysis 5)Propose possible Responses to the Concerns 4)Define Issues that are of concern to each stakeholder 3)Assess Current Level of Commitment to Outcomes 2)List Stakeholders 1)Define Problem/Opportunity Statement and Desirable Outcomes

Page 18 The Solution Grid A. Brainstorm Ideas –List on page B. Select Criteria –Weight them if appropriate C. Compare each idea to the criteria Highest number is better D. Look at the Grid -- Use Common Sense Becoming Change-ABLE

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