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Chapter 03 - Solving Problems
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The Management Live mentions a “meta-analysis” that was conducted to examine the veracity of
the advice of sticking with one’s first instinct. The instructor should remind students that a meta-
analysis is a study that statistically combines a number of other studies that have been conducted.
3.2 The Hot Hand
This Management Live discusses another fallacy; this fallacy, common in basketball known as
the “hot hand.” The idea behind the hot hand is that players who have made a number of shots in
a row are “hot” and are more likely to make the next shot. Despite the folklore, however, the
evidence simply does not support the existence of the hot hand.
Why did the “hot hand” belief become so popular and why do people believe it even if it isn’t
true? One reason is the representative bias. Additionally, it is possible that people assume that a
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3.3 Solving the Wrong Problem Precisely
The situation presented in this Management Live shows that it is critically important to solve the
right problem, not only to solve the problem right! In many cases, a failure to include relevant
stakeholders will result in a shallow understanding or even a misunderstanding of the problem. S
3.4 Brainstorming at IDEO
This Management Live reviews brainstorming techniques used by IDEO. The instructor can
review these techniques with the class and then divide the class into groups of 7-10 students. The
instructor may choose the brainstorming topic, but some possible ideas are below:
Brainstorming topics:
1) Creating a new slogan or motto for their business school
2) Developing a motivational plan to encourage student success
3) Coming up with ways for their school to become more environmentally responsible
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3.5 After Action Review
see below).
TOOL KIT APPLICATION EXERCISE
3.1 Stakeholder Analysis
The purpose of this Tool Kit is to show students how a stakeholder analysis is conducted. The
instructor might wish to present a case of a problem that has already been solved and show how
3.2 Methods for Reframing Problems
Students can practice the tips from this toolkit with the following problems. Ask students to try
each of the four methods in the toolkit: paraphrase, 180° turnaround, broaden it, and redirect the
problem:
Problem 1: An advertising agency is losing top clients to a new competing firm. How can they
stop losing these clients?
Problem 2: A shipping company is losing money due to increased fuel costs. How can they stop
losing money?
Problem 3: An amusement park is wondering whether to open a water park adjacent to their
existing park. Will this be a profitable expansion?
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3.3 Pareto Graphing
Instructors can utilize the case below to demonstrate Pareto graphing.
The Santa Rosa Health Clinic provides medical services to a community of 15,000 people. A
recent analysis, however, showed that the center is not being utilized by everyone who needs it -
for example, fewer than 70% of the people with respiratory ailments in the community have
them treated at the clinic.
After an extensive review of possible causes of the problem, the staff of the clinic has identified
a long wait time as the number one reason patients are unwilling to come to the clinic. In fact,
research shows that the average patient spends 138 minutes (over two hours) from the time they
get to the clinic, until the time they leave. Most of that time (approximately 120 minutes) is
spent simply waiting - seeing the receptionist, nurse, and doctor takes no more than 18 minutes.
But what causes the long wait time? Interviews with clinic staff and users reveal 20 different
causes for wait time, shown in the chart below.
Possible Causes of Long Wait Time
Percent of Total
Policies require excess information on users
1
Policies require complicated procedures
1
Too much paperwork
2
Not enough funding
2
Inadequate schedules
13
Inadequate policies
2
Clinic personnel have too many chores at home
2
Clinic personnel have other jobs
2
Clinic personnel lack punctuality
6
Clinic personnel have insufficient training
2
Clinic personnel aren't motivated
1
Clinic personnel are careless
1
Clinic personnel don't follow the schedule
16
Users forget ID cards
1
Users don't keep appointments
2
Users are uncooperative
1
Delay in handing over lab results to doctors
14
Outdated methods
12
Lack of automation
9
Procedures take too long
11
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Discussion Questions
2. The causes for long wait times in the table above were established by surveying both patient
and medical center staff. To what extent might these survey results be influenced by
Teaching Notes and Answers to Discussion Questions
This case was adapted from a case developed by Management Sciences for Health and the
1. Using the Pareto analysis technique described in Tool Kit 3.3, determine what causes of
delay need to be addressed immediately.
2. The causes for long wait times in the table above were established by surveying both patient
and medical center staff. To what extent might these survey results be influenced by
fundamental attribution error? Describe any additional analyses you would do to identify
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Fundamental attribution error suggests that when looking at the causes for our problems, we
tend to look outside ourselves, whereas when we look for the causes of success, we tend to
3. Using the methods in Tool Kit 3.2, combine and reframe the causes of delay. After
examining the reframed problem, recommend the ONE area for action that should have the
biggest impact on long wait times at the Santa Rosa Health Clinic.
Automation may help with this process.
3.4 After Action Review
After action review (AAR) occurs after a decision has been made and implemented and is a
serious evaluation of how the event was handled. As such, AAR can provide an excellent
learning and growth opportunity for the future.
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Alternatively, if no group project exists, the instructor may wish to design a group project that is
Materials needed for Egg Drop Exercise:
-Eggs -Ladder/table/chair/balcony (location to drop the eggs)
-Egg carton -Plastic grocery sacks
-Scissors -Other miscellaneous materials for creating egg package
EXTRA CLASS EXERCISES
Employee Involvement Cases
(Source: McShane, S. L. and Von Glinow, M. A.. Organizational Behavior (3rd ed.)
Vroom and A.G. Jago, 1987)
Case 1: The Sugar Substitute Research Decision
You are the head of research and development (R&D) for a major beer company. While
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The sugar substitute discovery is in its preliminary stages, and considerable time and resources
would be required before it would be commercially viable. This means that some resources
would necessarily be taken away from other projects in the lab. The sugar substitute project is
beyond your technical expertise, but some of the R&D lab researchers are familiar with that field
of chemistry. As with most forms of research, the amount of research required to further identify
and perfect the sugar substitute is difficult to determine. You do not know how much demand is
expected for this product. Your department has a decision process for funding projects that are
behind schedule. However, there are no rules or precedents about funding projects that would be
licensed but not used by the organization.
Case 2: Coast Guard Cutter Decision Problem
You are the captain of a 200-foot Coast Guard cutter, with a crew of 16, including officers. Your
mission is general search and rescue at sea. At 2:00 this morning, while en route to your home
port after a routine 28-day patrol, you received word from the nearest Coast Guard station that a
small plane had crashed 60 miles offshore. You obtained all the available information
concerning the location of the crash, informed your crew of the mission, and set a new course at
maximum speed for the scene to commence a search for survivors and wreckage.
You have now been searching for 20 hours. Your search operation has been increasingly
impaired by rough seas, and there is evidence of a severe storm building. The atmospherics
associated with the deteriorating weather have made communications with the Coast Guard
station impossible. A decision must be made shortly about whether to abandon the search and
staying.
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Discussion Questions (Cases 1 and 2)
1. To what extent should your subordinates be involved in making this decision? Select one of
the following levels of involvement:
2. What factors led you to choose this level of employee involvement rather than the others?
3. What problems might occur if less or more involvement occurred in this case?
Answers to Case Questions
Case 1: The Sugar Substitute Research Decision
1. To what extent should your subordinates be involved in this decision? (Note: You may
assume that neither case has time constraints that would prevent the highest level of
participation.) Please choose one of the following:
AI You make the decision alone with no employee involvement.
the advice that subordinates have provided.
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GII You describe the problem to subordinates in a meeting. They discuss the problem and
2. What factors led you to choose this alternative rather than the others?
This question can be answered by reviewing the key decisions in the Vroom-Jago model.
Quality requirement – High. A wrong decision could cost the company lots of money,
either in wasted research funds or lost revenue.
that would be licensed but not used by the organization.
Commitment probability -- Probably Yes. This might be debatable, but most employees
leader, but they would not have sufficient information to make the decision alone.
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3. What problems might occur if less or more involvement occurred in this case (where possible)?
A higher degree of involvement would probably be difficult because of the conflict problem.
problem.
Case 2: Coast Guard Cutter Decision
1. To what extent should your subordinates be involved in this decision? Choose from the
options AI, AII, CI, CII, or GII described in the text.
2. What factors led you to choose this alternative rather than the others?
Students can offer a few reasons why no employee involvement (i.e. AI) is preferred. The
Here are the decision tree results using the Vroom-Jago model:
Quality requirement High
Subordinate information Maybe
3. What problems might occur if less or more involvement occurred in this case (where
possible)?
