Let's move on now to look at steps for creative problem solving and decision making. Better thinking leads to better results. And the first step to more creative problem solving and decision making is to form a group with a mix of thinking styles as we discussed earlier. The second step is to follow a process, process comprises define the problem, analyze the problem, generate ideas, test the solutions, and decide, select and implement a solution. Now, everyone in the group will like the idea of a process since these lists and realists for example, but you need them in the group. So build rapport with them so that they will join in and you'll get the benefit of their different thinking styles, as Russell lac have said in 1956, a problem never exists in isolation is surrounded by other problems.

Now, I'm sure in your studying in your career, you've come across some different problem solving methods. And I've listed just a few here, the toy after eight step method. From clarifying the problem, break down the problem, set the target, analyze the root cause develop countermeasures, implement countermeasures, monitor results in process, standardize and share success, the ooda loop, which I hadn't heard of before, I did my research for this course, to make which is from six sigma, define, measure, analyze, improve and control, and the join a seven step method, which is from Brian joiners, book and associated materials, fourth generation management. This is not a definitive list, and you may have come across other problem solving methods, and it's easy to get confused or even worried by the range of methods available. But actually, they all break down to very similar steps. If you look at them.

It's about defining the problem. It's about analyzing the problem. It's about looking at potential solutions to the detailed problem, and then it's about selecting the correct solution and implementing it. So let's look at the steps in turn. And the first step is to define the problem. And my approach to defining the problem is to use the problem statement.

The problem statement helps us define the problem in a way that everyone understands and includes the agreed scope of the problem. The problem statement summarizes the issue that we're addressing in three or four sentences to answer the following questions, what is the business problem? What are the consequences of the problem? Who is affected and how, what are the impacts of the problem on the customer on the process and on the organization? And we should provide data for those impacts if possible. And example problem statement looks like the following.

Currently, our delivery service is unreliable, with 20% of items not arriving in Italy. Delivery windows specified to the customer. An average of 40 customer complaints a week relate to poor delivery performance. This results in dissatisfaction and frustration for customers, significant compensation costs, and the loss of future sales. Working as a group to define the problem statements is a great way of getting everyone on the same page with their understanding of the problem, and importantly, on the parameters of what is and what is not covered by the group's work. After we define the problem statement, we go on to define the goal statement.

And the goal statement is the opposite of the problem statement. It is the outcome we're trying to achieve from the improvement project by resolving the issues defined in the problem statement. So after we've created the problem statement, the goal statement is a short summary of what we would like to achieve by addressing the problem and it will answer questions such as what will be improved what Will the impact be on customers and on the organization? How will the key metrics be impacted by the improvement, and we can put in some targets here. So for the previous problem statement that we had about deliveries, the equivalent goal statements might be to consistently reduce the number of deliveries outside of the specified window to less than 5%, reducing customer complaints, and reducing compensation claims due to poor delivery performance to 10% of the current level. In essence, the goal statement is the target state for the problem.

And it puts a positive spin on the problem statement by defining what the aim of the project should be if it's going to resolve the problem defined. And the first tool I'm going to present to help define the problem is called the problem grid. And the source for this is a book called breakthrough thinking by Nick Salter, which I find a useful source of problem solving tools and you'll see several of them In this course, anyway, the problem grid comprises four elements, the what elements, the who element, the why element, and the when element. So in the what elements, we define what is the problem? What is the opportunity? What are our criteria for success?

In the HU element? We're looking at who are the parties involved, ie the stakeholders? Who is losing out by this issue? Who is benefiting, if anyone and how are they benefiting? In the why element we look at why has this problem developed? Why have we not solved it before?

What's preventing us? Why are we choosing to solve it now? And in the when element, we look at when will we take action? When will we complete the task? When will we review and assess the results? And posing these questions again helps us look at the problem from different points of view from different aspects and input typically find interesting the question about who is benefiting from the problem at present, because that can be the source of resistance to change somehow, if there are individuals or groups who are perhaps benefiting from the way things are working at the moment.

The second tool we can use to help define the problem is to restate the problem. And again, this tool comes from the book breakthrough thinking by Nick Salter. And it's about analyzing the problem from different angles. Once again, working as a group to restate the problem in different ways is a creative way of fleshing out the issue from different angles and from different viewpoints. It's quite similar to the five why's technique, but it helps reduce our tendency to think that we know what the problem is, and therefore to jump to a solution. So the method is to find 10 ways to restate the problem, and that will give a new perspective on the issues involved.

The next tool to help define the problem is the process This map, one of my favorite tools, and really useful in defining and analyzing process problems. We have in the picture on the slide, an example very high level process map for a mortgage application process. And we can see at the bottom there that the elapsed time for applying for a mortgage and receiving an offer. In this example, which is based on real life from some years ago, is 11 days, the actual value added activity time is one hour. Why does a process that takes an hour and 20 minutes require 11 days of elapsed time to work. And the method is to work as a group to draw a simple process map for the business area being examined.

And this can help identify the points where problems arise, where there are risks where errors occur, and so on. At this stage, we're talking about a high level process map. We don't want to get bogged down in detail. And we're not using any formal notation that you may have. across, we're just looking at the process and trying to identify points in that process, where the problem may arise or where rather issues errors and risks arise. On the next slide, we have another high level example.

Here we have a customer placing an order, the order goes through four work centers, each of which have inventory between them. And we can see at the bottom there, there is processing time and wait time. The point here in this example is that handoffs between processes between teams between activities often create problems and lead to rising work in progress inventory, which itself risks damage or loss, and miscommunication between the stages of the steps is also a common cause of problems. In fact, handoffs and waiting for the realizations are the main causes of delay, and of error in service processes. The third example of a process map here given is one from a few years ago. It's a wastewater inspection process and this does use a notation called EPC event process chain.

This is a high level process map with swim lanes for each of the departments and the customer involved so we can see who's working out each activity. And again, we can see the process does jump between teams quite a bit, which is a potential source of error to finish then on defining the problem, here are some tips for identifying problems in a process. And the key principle in process improvement is that we aim to make work flow with fewer interruptions. So common problem areas to look out for in the process include those steps or activities which adds no value for the final customer. Those steps and activities which could be combined to reduce handoffs, where the order of steps is illogical or creates a backwards loop. steps where quality problems arise, and the reject or rework rate at each step in the process is a good KPI.

For this, we should also look at steps and activities which can be done in parallel rather than in series, for example, doing setups for machines ahead of the work arriving. And finally, we should look at activities and procedures that can be standardized to reduce errors, because people are more familiar with the work requirement.