Strategic Problem Solving Action Planning Dott ssa Claudette

Strategic Problem Solving & Action Planning Dott. ssa Claudette Portelli 6 November 2014

Life is full of changes and challenges

Brainstorming and Creative Thinking Put on your thinking caps. The need to come up with alternatives but how can one go about doing this? Abstract notions such as Brainstorming or Creative envisioning need to be replaced with operative methods that actually help reflect on how to analyze the critical situation and elicit concrete strategic ideas to overcome it. Porter Competitive Strategy, 1980

“Give a man a fish; you have fed him for today. Teach a man to fish; and you have fed him for a lifetime” (Kuan - Tsen VII B. C. ) Chinese Proverb

Strategic Action Planning is based on a rigorous intervention model holds its roots in Mathematical logic, constructivist developments of the Cybernatic theory, the Palo Alto Problem-oriented approach and Milwakee Solution-focused approach.

Problem Definition of the Problem Agree on the objective Evaluation of the Attempted Solution How to worsen technique Scenario Beyond the Problem technique Mountain Climber Technique Self-Correcting process Solution Strategic Action Planning Problem-oriented techniques & Solution-oriented techniques

Step 1: Definition of the Problem Concretely define the problem and its specific characteristics. What is actually the problem? Who is involved? When does it occur? Where does it occur? How it works/functions?

Definition of the Problem LOOK AT THE PROBLEM FROM DIFFERENT ANGLES Whether you are working in a group/team or individually, we need to try to look at the problem from all possible prospective ASK: How would others perceive and define the problem?

« Reality depends on the point of view of the observer » Albert Einstein

Definition of the Problem CREATIVE THINKING: the ability to lose free from one’s self-deceiving logics and mental traps. Often we see what we expect to see. Confirmation trap: we seek to confirm our preconceived views. E. g. Genrich Altschuller- to redefine the characteristics of the problem is the key to creative thinking that generate geniality and inventivity. “The genius is that person who is capable to look at reality from non-ordinary perspectives” WILLIAM JAMES

Definition of the Problem Dedicate time to define the problem, so as to avoid wasting time and energy later. To take time to think and define the problem is not a luxury but a necessity Donald R. Keough Former President of the Coca-Cola Company Leave after, so as to arrive before Chinese Stratagem

Step 2: Agree about the Objective Definition of the Problem Definition of the Objective to be reached What is the effective and desired change? What needs to concretely take place to say that the objective has been reached?

Agree about the Objective Sharing the same objective- teaming up Collaboration Cohesion towards the desired goal Resistances to change Co-participation FOCUS-ORIENTED PROCESS: Keep the line so as to avoid going off track.

Cohesion & Collaboration

Reducers of Complexity Importance of finding the Reducers of Complexity (Stafford Beer) COMPLEX SIMPLE Example: Carl Frederick Gauss His elementary school teacher asked class to sum up one by one all numbers from 1 to 100 and give me the total. Using intuitively what now we came to call algorithm, after a minute Gauss surprised his teacher with the correct answer 5050. 1+100=101 2+99=101 3+98=101 4+97=101 5+96=101 Thus 50 X 101= 5050

Step 3: Evaluating Attempted Solutions Identify failing attempted solutions what has not worked so as to avoid repeating the same mistake. what has worked in other similar situations, yet evaluate whether this can be replicated in the present situation. We apply a common approach to problems based on our past experiences. Often we are caught in doing ‘MOREOF-THE-SAME’, risking in going round into circles. What can actually worsen the situation What does not help to solve a problem, ends up maintaining or even worsening the problem. School of Palo Alto, California.

Evaluating Attempted Solutions Attempted solution can reveal a lot on how to proceed on towards our objective. If I find 10, 000 ways something won’t work, I haven’t failed. Every wrong attempt discarded is just one more step forward. Sir Thomas Edison Who did what and with what results? What has been done so far: it didn’t work. it worked just partially or in a similar situation. it led to a worsening of the situation.

Evaluating Attempted Solutions With all the good intentions, we often produce the worst consequences. Oscar Wilde Example: Public Speaking Attempted Solution: Try to rationally control his fear, makes him lose control Avoidance Delegating others

Step 4: Problem-Oriented Techniques: “How to Worsen” If, instead of improving, I wanted to worsen the situation. . what should I do or not do, say or not say, think or not think so as to worsen my present situation? What are the strategies and methods I should use if I wanted to surely make my plan fail? How could I worsen my present situation? To straighten something, I have to first learn how to bend it even more Chinese stratagem

How to Worsen the Situation? Operative knowledge: it helps identify what can worsen thus avoid waist of time and energy, by going off track. Intervention: Awareness creates an averse reaction towards such dysfunctional actions, thus individual becomes more cautious and will start to spontaneously block them.

Step 5: Solution-Focused Techniques • SFT focuses on the desired solution, not on the problem; on what can be done (Milwakee Model). • The current actions are often what maintains the problem, doing more of the same becomes always more ineffective. Change necessitates identifying what can be changed and to change it (Steve De Shazer).

The Scenario Beyond the Problem Think about an important change you are trying to accomplish: Imagine that tonight as you sleep, a miracle happens. Overnight, all your internal barriers to that change evaporate, and you awake fully embodying the change. Because you were asleep, neither you nor the people around you know that the change has occurred Now imagine yourself waking in the morning. As you go through your day, what are the ways you notice that the change has occurred?

The scenario beyond the problem What will happen when you reach the objective? How will the scenario be when you’ve achieved the objective (or solved the problem)? What changes would you observe? Imagine the ideal scenario and its characteristics created after the strategic change. Applied: • When the problem is not clear • To activate creative envisioning, to then select the most adequate options and put them into play • Launching a prophecy in the right direction (self-fulfilling prophecy)

The scenario beyond the problem • What would the scenario be (in the company) once you’ve reached the goal (or solved the problem)? • What are the concrete indicators of change? • What would you do differently? • What will make you understand that the objective has been reached ( or the problem solved)?

The scenario beyond the problem Changing our language shapes how we think about the problem and broadens our thinking about the solution. What is the scenario beyond the problem? Altschuller has defined this technique as “the fantasy of the perfect machine”, employed by most great inventors Creating out of nothing Chinese Stratagem

Self-Fulfilling Prophecy is many times the principal cause of the events foretold Hobbes (Behemoth) Self-fulfilling prophecy is a term used to refer to the fact that frequently things turn out just as one expects that they would, not necessarily because of one’s prescience but because one behaves in a manner that optimized these very outcomes. Vaihinger’s Philosophy of the As if.

STEP 6: The Mountain Climber Technique What would make us say that we are on the right track? Applied What would be the smallest possible change? Fill-in all steps from top to bottom to: -Construct an action plan starting from top (final objective) to bottom ( to the smallest possible step) -Create micro-objectives -Identify the first minimal step - To keep the focus

The Mountain Climber Technique 10 Top-down process so as to keep the solution as our focus 9 8 7 5 1

Action Plan Go Slow Technique: The power of thinking big by going small. Example: Just an hour of your time, even a brief initial phone call would help. The chances are that this little step in the right direction won't prove so little after all. Better to suggest the small possible change. 'A journey of a thousand miles begins with a single step'. Confucius

The Mountain Climber Technique The logic behind this technique is that: • to turn a global limiting problem or a new objective into a a step-bystep action plan. • by fragmenting something complicated into smaller goals, it renders the problem simpler and thus more manageable. • by having micro-steps, it becomes possible to verify the effectiveness of the action plan at each stage and correct it if the desired effects are not achieved, without jeopardizing the final result. • by subdividing the objectives, we can overcome resistance to change. If intervention is small, resistance is kept minimal • by introducing a small voluntary change, we trigger a series of other spontaneous changes (The Butterfly effect)

The Butterfly Effect Even the smallest change, introduced within a complex system, can trigger a chain reaction that can subvert its entire equilibrium Thom (1990)

A Rigorous Yet Self-Corrective Process There problems that are so complex, that they require not just one solution but a series or a sequence of solutions. Just like in the game of the Chinese Boxes, once we open a box we might find another, and in it another and so forth. In such case it is fundamental to avoid facing all the problems at one go but instead start dealing with the most accessible possible one, then move to solve another but always holding a global perspective. In this way we avoid losing ourselves in the complexity but also avoid losing the focus of our problem solving process and final objective. Rigour alone leads to asphisia, while creativity on its own is sheer folly Gregory Bateson “ Steps to an Ecology of the Mind, (1973)

Example- Case Study • Problem Solving Session with Top managers of a multinational oil company • 17 delegates present representing all departments of the company • Teaming up to develop an Action Plan using the Mountain Climber technique, filling in each step using the answers given to Attempted Solutions, How to Worsen and Scenario beyond the Problem.

Definition of the Problem What is actually the problem? : Stagnation and Fear of Business Failure Who is involved? Top management yet recently involving various areas of the company. When does it occur? Started approximately 2 years ago with the breaking news of the recession. Where does it occur? Mostly at top level because sales and production proceed normally. How it works/functions? Fear brings fear Fear of investing Fear of failing

Different Point of Views Different perceptions of the problem: Financial manager: we can not speak of business failure since sales and production have remained rather stable in these years of recession but need to keep a look-out. HR manager “we lost the we-feeling” Marketing manager: we need to believe in our product and promote better our image Research department: we need to invest in new technology

Transforming a problem into an objective Problem: Stagnation and Fear of Business Failure Objective: from 8. 2% conquer 10% of the market in the next 5 years

Attempted Solutions • Trying to understand the 'why' of stagnation and correcting one another (blaming game) • Foreseeing possible future disasters • Continuously speaking between individuals about possible down-fall yet no specific action plan made. • Obsessively reporting other companies that have closed down even if not in the same sector. • We-cannot-risk-attitude: Avoiding or postponing big decisions and investments (image, incentives, new technology, incentives, training, etc)

How to Worsen • Loose Present Position & Image • Poor or wrong publicity * 9 • Raise or reduce prices • Ignore the importance of the image • Reduces investments * 1 • Ignore rivals • Ignore the importance of having clients • Reduce the sales force • To garrison less the territory • Becoming less systemic * 5 • Lack of harmony * 1 • Change brand

How to Worsen • Poor Innovation * 7 • • Lack of incentives * 2 Discourage the personnel Reduce training 2 Increase red tape * 2/1 • • • Claim company is in crisis * 1 Ignore normative innovation * 3 Negative talk 1 Blaming game 1 Back stabbing 1 • Poor Communication (intra) * 1/5 (inter) * 8 • Financial Errors • Management Control 2

Scenario beyond the Problem • Company sponsors Ferrari 9 • Introducing a fidelity programme without contributions 9 • Company on stock-market 8 • Employees holding stock-options 9 • Less red-tape/ able to authorise contracts directly 3 • Take over another company 8 • Business diversification 8 • Consolidate and grow 4 • Smiley happy people 5 • Informal/ formal meetings/get togethers organised from the working force 3 • Management driven by working force 7

Scenario beyond the Problem • • • Jeans and shirt 6 Optimising Marketing 9 Create an effective Business Unit 7 Telecommute/Telework 6 An Interactive Website 6 More Human- Ergonomic Technology 6 The company a one big family 5 Become re-known as a company that changed the market 4 Technological Progress 6 New energy frontiers 8 Benefits and better quality of life 4 Better quality of life at work 3

Mountain Climber Technique 10% of the market 9: Optimising Marketing, Optimising Publicity, Sponsoring Ferrari, Employees hold stock-options 8: new energy, Business diversification, Powerful Inter- Communication, Present on stock-market 7 Accessible technological progress 6 Effective B. U. , Management dal basso 5 Serene atmosphere, ‘like-to-be-here’ attitude 4 consolidate and grow, benefit, a we-feeling 3 Internal: quality of life, quality of work, express oneself, increased trust. 2 certainities, recognitions and incentives, delegation of power and flexibility 1 more efficient organization, more serene relationships, negative talk, obtain more investments, Stop to obsessively report bad news.

Problem Definition of the Problem Agree on the objective Evaluation of the Attempted Solution How to worsen technique Scenario Beyond the Problem technique Mountain Climber Technique Correcting the goal Solution Strategic Problem Solving & Action Planning

References Keough D. R. (2008) The Ten Commandments for Business Failure. Penguin Books, USA. Milanese, R. Mordazzi, P. , (in press) Strategic Coaching: Turning Limits in Resources. Karnac publishing House, UK. Nardone, G. , Mariotti, R. , Milanese, R. , Fiorenza, A. , (2000) La Terapia dell’azienda malata: Problem Solving strategico per organizzazioni. Ponte alle Grazie, Milano. Nardone, G. , Portelli, C. (2005) Knowing through Changing. Crown Publish House, UK. Papantuono, Portelli, Gibson (2014) Winning without Fighting. Malta University Press, Malta Watzlawick, P. , Weakland, Fisch, R. (1974) Change: Principles of Problem Formation and Problem Resolution. W W Norton Company.

Thank you claudetteportelli@gmail. com