1. Business Studies
Grade 11

2. Business ventures and Business roles
Term 2
Business ventures and Business roles

3. CREATIVE THINKING AND PROBLEM SOLVING

4. Introduction
Business enterprises are under constant pressure to outperform their competitors
In order to maintain market position, business enterprises need to solve their problems efficiently and find creative solutions to problems.

5. Acquiring problem solving skills in a business context
All people and business enterprises experience problems.
The problem solving cycle is a problem solving tool that is used to solve problems.
The process comprises 7 steps which can be presented in a cycle diagram – it is presented as a cycle, because the process needs to be repeated if the problem is not solved by working through the process the first time.

6. The seven steps: Identify and define the problem
Analyse protential causes
Identify alternative solutions
Choose the best solution
Develop an action plan
Implement the solution
Evaluate the chosen solution / strategy

7. The Problem Solving cycle
Identify the problem
Make a list of all factors that can potentially cause the problem
Analyse potential causes of the problem
Write down what the symptoms of the problem is to ensure that everyone involved fully understand the problem.
Identify alternative solutions
Generate a list of potential solutions through applying creative thinking techniques such as brainstorming, the force field analysis or the Delphi technique.
Choose the best solution
Develop a set of criteria that the solution must meet to solve the problem in terms of the:
Costs and time involved
Probability of success
Risks involved
Degree of resistance or acceptance by employees

8. The Problem Solving cycle
Develop an action plan
Create a Gantt chart indicating tasks, employees responsible for the respective tasks and deadlines.
Implement the solution
The solutions that were developed in the previous steps of the problem solving process are now put into action.
Evaluate the chosen strategy
This step involves comparing actual results with desired results and deciding which strategies worked and which strategies didn’t.
This steps aims to determine whether the problem was solved and to record the lessons learnt in order to create better solutions in future.

9. Routine thinking versus creative thinking
Refers to thinking in a way you always do.
Means that you apply old thinking patterns to new situations.
Routine thinkers tend to make the same mistakes over and over.
Creative thinking, on the other hand, refers to thinking differently.
Means applying new ways to thinking to old situations.
If we are not used to thinking creatively, we can easily get stuck in old thinking patterns.
We should try breaking our routine thinking habits, because routine thinking hampers creative thinking.
Some people believe that they have a mental block to creativity.

10. Mental blocks to creativity
The belief that you cannot be creative
Our own thinking patterns often limit our creativity because we tell ourselves that we cannot be creative. Start telling yourself that you are creative and be positive about your capabilities.
Trying to be too practical
Sometimes, we criticise an idea because the idea is not practical, without letting the idea grow on us. If we make minor adaptions to an idea which at first seems impractical, we might discover that the idea is practical after all.
Logical thinking
Logical thinking can limit our creativity because being creative means looking at problems differently and even approaching them illogically.
Following rules
Rules limit our behaviour because rules can act as boundaries. Breaking general rules concerning the way we think will require us to be brave and to move outside our comfort zones. If we can manage to do this, we will be more creative.
Believing that being wrong is bad
Mistakes allow us to learn. We must therefore view making mistakes as learning opportunities and allow ourselves to become more creative through the lessons we learn form our mistakes.

11. Recap: Complex problem solving techniques
a) Delphi technique
The technique aims to obtain the opinions of experts, without bringing the experts together face-to-face.
Useful for generating and clarifying ideas, reaching consensus and making decisions.
Makes use of a series of questionnaires.
The purpose of the questionnaires is to obtain feedback from different people.

12. Recap: Complex problem solving techniques
b) Force field analysis
Is a useful technique for looking at all the forces for and against a decision.
It is often used to plan and implement change in a business.
To carry out a force field analysis you need to follow these steps:

13. Recap: Complex problem solving techniques
b) Force field analysis (Steps)
Divide you page into three columns. The heading of the left column is “forces for change”. State the problem in the middle column. The heading of the right column is “forces against change”.
List all the forces for change in the left column and all the forces against change in the right column.
Assign a score from 1 to 5 to each force. One indicating that the effect of the force is weak and five indicating that the effect of the force is big.
Calculate the total score for each column.
You can now decide whether the change you want to implement, is viable or not.

14. Recap: Complex problem solving techniques
c) Other complex problem solving techniques include:
Involving others
Some problems may fall outside the business’ scope of expertise. Management can then make use of consultants.
Working in teams
Some problems are too complex to be dealt with by individuals. Dividing employees into problem solving teams is a creative problem solving technique with several advantages, including:
Viewing the problem from different perspectives.
Having access to a broad base of knowledge, skills and expertise.
Obtaining a careful analysis of the problem.
Pro-active problem solving
Pro-active problem solving means to anticipate problems and to prevent them from occurring. This strategy will ensure that resources are not wasted on problems that could have been prevented.

15. Recap: Complex problem solving techniques
c) Other complex problem solving techniques include:
Intuitive decision making
Problem solving teams are often required to make a decision or solve a problem when time and information are limited. As a result, teams cannot always rely on their intuition, common sense and past experience.
SWOT analysis
A SWOT analysis forces management to analyse the enterprise’s strengths and weaknesses. This helps management anticipate problems and prevent them from occurring.
PEST analysis
The PEST analysis assesses a business’ position in terms of political, economical, social and technological factors and will help management anticipate problems on these fronts. The PEST analysis is more useful to larger business enterprises.

16. Working with others to solve problems
Some problems are to complex to be dealt with by individuals.
Working with others can help us be more creative because we are exposed to other people’s thinking patterns and to the way other people approach problems.
Dividing employees into problem solving teams is a creative problem solving technique with several advantages, including:
The problem is viewed from different perspective.
Team members have access to a broad base of knowledge, skills and expertise.
Teams will analyse the problem in greater detail which will lead to a better understanding of the problem.

17. Working with others to solve problems
Brainstorming is a useful problem solving tool for groups.
Brainstorming aims to promote creative thinking and idea generation by thinking of as many ideas possible to solve a problem, without any of the ideas being criticised during the creative thinking process.
One of the biggest advantages of brainstorming is that group members can build on one another’s ideas, because an idea of one person can spark another person’s creativity.

18. Acquiring creative thinking skills
A person can acquire creative thinking skills by:
Looking at problems, but trying to see opportunities.
Being open-minded and not being judgmental.
Applying new solutions to old problems.
Your knowledge by reading about a variety of topics.
Identifying things that inspire you.

19. Conventional versus Non-convertional solutions
Conventional solutions: Conventional solutions are ordinary and unimaginative Non-conventional solutions Non-conventional solutions are different and creative

20. Conventional versus Non-convertional solutions
What a person perceives as being conventional or non-conventional depends on that person’s background and culture.
The advantage of applying conventional solutions to problems is that we are certain of the outcome.
Applying conventional solutions can hamper creativity or limit personal growth.
Non-conventional solutions allow us to discover alternative paths to solving problems

21. Conventional versus Non-convertional solutions
Non-conventional solutions can even lead to the discovery of new opportunities.
Referring to indigenous knowledge systems is (to many people) a non-conventional approach.
Indigenous knowledge is local knowledge, for example knowing which plants to use a medicine.

22. Activities