SUBJECT: PROJECT MANAGEMENT AND ENTREPRENEURSHIP (HSMC-701)

UNIT 4: ENTREPRENEURIAL MOTIVATION

Design Thinking
Design thinking is an approach used for practical and creative problem-solving. It is based heavily on the methods and
processes that designers use (hence the name), but it has actually evolved from a range of different fields—including
architecture, engineering and business. Design thinking can also be applied to any field; it doesn’t necessarily have to
be design-specific.

The Five Stages of Design Thinking

Stage 1: Empathize—Research Users' Needs

The team aims to understand the problem, typically through user research. Empathy is crucial to design thinking
because it allows designers to set aside your assumptions about the world and gain insight into users and their needs.

Stage 2: Define—State Users' Needs and Problems

Once the team accumulates the information, they analyze the observations and synthesize them to define the core
problems. These definitions are called problem statements. The team may create personas to help keep efforts human-
centered.

Stage 3: Ideate—Challenge Assumptions and Create Ideas

With the foundation ready, teams gear up to “think outside the box.” They brainstorm alternative ways to view the
problem and identify innovative solutions to the problem statement.

Stage 4: Prototype—Start to Create Solutions

This is an experimental phase. The aim is to identify the best possible solution for each problem. The team produces
inexpensive, scaled-down versions of the product (or specific features found within the product) to investigate the
ideas. This may be as simple as paper prototypes.

Stage 5: Test—Try the Solutions Out

The team tests these prototypes with real users to evaluate if they solve the problem. The test might throw up new
insights, based on which the team might refine the prototype or even go back to the Define stage to revisit the problem.

These stages are different modes that contribute to the entire design project rather than sequential steps. The goal is
to gain a deep understanding of the users and their ideal solution/product.

TRIZ:
TRIZ is the Russian acronym for the "Theory of Inventive Problem Solving," an international system of creativity
developed in the U.S.S.R. between 1946 and 1985, by engineer and scientist Genrich S. Altshuller and his colleagues.

According to TRIZ, universal principles of creativity form the basis of innovation. TRIZ identifies and codifies these
principles, and uses them to make the creative process more predictable.

In other words, whatever problem you're facing, somebody, somewhere, has already solved it (or one very like it).
Creative problem solving involves finding that solution and adapting it to your problem.

TRIZ is most useful in roles such as product development, design engineering, and process management. For
example, Six Sigma quality improvement processes often make use of TRIZ.
The Key TRIZ Tools

Let's look at two of the central concepts behind TRIZ: generalizing problems and solutions, and eliminating
contradictions.

1. Generalizing Problems and Solutions

The primary findings of TRIZ research are as follows:

• Problems and solutions are repeated across industries and sciences. By representing a problem as a
"contradiction" (we explore this later in this article), you can predict creative solutions to that problem.

• Patterns of technical evolution tend to repeat themselves across industries and sciences.

• Creative innovations often use scientific effects outside the field where they were developed.

Using TRIZ consists of learning these repeating patterns of problem and solution, understanding the contradictions
present in a situation, and developing new methods of using scientific effects.

You then apply the general TRIZ patterns to the specific situation that confronts you, and discover a generalized version
of the problem.

Figure – The TRIZ Problem-Solving Method

Here, you take the specific problem that you face and generalize it to one of the TRIZ general problems. From the TRIZ
general problems, you identify the general TRIZ solution you need, and then consider how you can apply it to your
specific problem.

The TRIZ databases are actually a collection of "open source" resources compiled by users and aficionados of the
system (such as the 40 Principles and 76 Standard Solutions, which we look at, below).

2. Eliminating Contradictions

Another fundamental TRIZ concept is that there are fundamental contradictions at the root of most problems. In many
cases, a reliable way to solve a problem is to eliminate these contradictions.

TRIZ recognizes two categories of contradictions:

1. Technical contradictions. These are classical engineering "trade-offs," where you can't reach the desired state
because something else in the system prevents it. In other words, when something gets better, something else
automatically gets worse. For example:
 • The product gets stronger (good), but the weight increases (bad).

• Service is customized to each customer (good), but the service delivery system gets complicated (bad).

• Training is comprehensive (good), but it keeps employees away from their assignments (bad).

The key technical contradictions are summarized in the TRIZ Contradiction Matrix. As with all TRIZ resources, it takes
time and study to become familiar with the Contradiction Matrix.

2. Physical (or "inherent") contradictions. These are situations in which an object or system suffers contradictory,
opposite requirements. Everyday examples include:

• Software should be complex (to have many features), but simple (to be easy to learn).

• Coffee should be hot (to be enjoyed), but cool (to avoid burning the drinker).

• An umbrella should be large (to keep the rain off), but small (to be maneuverable in a crowd).

You can solve physical contradictions with the TRIZ Separation Principles. These separate your requirements according
to basic categories of Space, Time and Scale.

How to Use TRIZ Principles – an Example

Begin to explore TRIZ by applying it to a simple, practical problem.

For example, consider the specific problem of a furniture store in a small building. The store wants to attract customers,
so it needs to have its goods on display. But it also needs to have enough storage space to keep a range of products
ready for sale.

Using TRIZ, you can establish that the store has a physical contradiction. The furniture needs to be large (to be useful
and attractive), but also small (to be stored in as little space as possible). Using TRIZ, the store owners generalize this
contradiction into a general problem and apply one of the 40 Principles of Problem Solving – a key TRIZ technique – to
it.

They find a viable general solution in Principle 1 – Segmentation. This advocates dividing an object or system into
different parts, or making it easy to take apart. This could lead the owners to devise flat-pack versions of their furniture,
so that display models can take up the room that they need while inventory occupies much less space per unit. This is
the specific solution.

You, too, can use the 40 Principles of Problem Solving, or the 40 Inventive Principles, and the Contradiction Matrix to
help you with your problem-solving.

Five Top TRIZ Concepts and Techniques

TRIZ comes with a range of ideas and techniques beyond the basic principles outlined above. Some are conceptual and
analytical, such as:

• The Law of Ideality. This states that any system tends to become more reliable throughout its life, through
regular improvement.

• Functional Modeling, Analysis and Trimming. TRIZ uses these methods to define problems.

• Locating the Zones of Conflict. (This is known to Six Sigma problem-solvers as "Root Cause Analysis.")

Some are more prescriptive. For example:

• The Laws of Technical Evolution and Technology Forecasting. These categorize technical evolution by demand,
function and system.

• The 76 Standard Solutions. These are specific solutions devised to a range of common problems in design and
innovation.
McClelland's Motivation Theory

In the early 1940s, Abraham Maslow created his theory of needs. This identified the basic needs that human beings
have, in order of their importance: physiological needs, safety needs, and the needs for belonging, self-esteem and
"self-actualization".

Later, David McClelland built on this work in his 1961 book, "The Achieving Society." He identified three motivators
that he believed we all have: a need for achievement, a need for affiliation, and a need for power. People will have
different characteristics depending on their dominant motivator. [1]

According to McClelland, these motivators are learned (which is why this theory is sometimes called the Learned Needs
Theory).

McClelland says that, regardless of our gender, culture, or age, we all have three motivating drivers, and one of these
will be our dominant motivating driver. This dominant motivator is largely dependent on our culture and life
experiences.

These characteristics are as follows:

Dominant Characteristics of This Person

Motivator
Achievement • Has a strong need to set and accomplish challenging goals.
• Takes calculated risks to accomplish their goals.
• Likes to receive regular feedback on their progress and achievements.
• Often likes to work alone.
Affiliation • Wants to belong to the group.
• Wants to be liked, and will often go along with whatever the rest of the group
wants to do.
• Favours collaboration over competition.
• Doesn't like high risk or uncertainty.
Power • Wants to control and influence others.
• Likes to win arguments.
• Enjoys competition and winning.
• Enjoys status and recognition.

Using McClelland's Human Motivation Theory

McClelland's theory can help you to identify the dominant motivators of people on your team. You can then use this
information to influence how you set goals and provide feedback, and how you motivate and reward team members.

You can also use these motivators to craft, or design, the job around your team members, ensuring a better fit.

Let's look at the steps for using McClelland's theory:

Step 1: Identify Drivers

When your team members succeed, you might be tempted to show them off to the rest of your organization. But while
some people thrive in the spotlight, others dread being "paraded around."

Managing a group of people with different personalities is never easy. But if you're managing or leading a team, it's
essential to know what motivates your people, how they respond to feedback and praise, and what tasks fit them well.

David McClelland's Human Motivation Theory allows you to identify people's motivating drivers. This can then help
you to give praise and feedback effectively, assign them suitable tasks, and keep them motivated.

In this article, we'll explore McClelland's Human Motivation Theory, and look at how you can use it to manage and lead
your team more effectively.

Using McClelland's Human Motivation Theory

McClelland's theory can help you to identify the dominant motivators of people on your team. You can then use this
information to influence how you set goals and provide feedback, and how you motivate and reward team members.

You can also use these motivators to craft, or design, the job around your team members, ensuring a better fit.

Let's look at the steps for using McClelland's theory:

Step 1: Identify Drivers

Examine your team to determine which of the three motivators is dominant for each person. You can probably identify
drivers based on personality and past actions.

For instance, perhaps one of your team members always takes charge of the group when you assign a project. They
speak up in meetings to persuade people, and delegate responsibilities to others to meet the goals of the group. They
like to be in control of the final deliverables. This team member is likely primarily driven by power.

You might have another team member who never speaks during meetings. They always agree with the group, work
hard to manage conflict when it occurs, and visibly become uncomfortable when you talk about doing high-risk, high-
reward projects. This person is likely to have a strong need for affiliation.

Step 2: Structure Your Approach

Based on the driving motivators of your workers, structure your leadership style and project assignments around each
individual team member. This will help ensure that they all stay engaged, motivated, and happy with the work they're
doing.

Examples of Using Human Motivation Theory

Let's take a closer look at how to manage team members who are driven by each of McClelland's three motivators:

Achievement

People motivated by achievement need challenging, but not impossible, projects. They thrive on overcoming difficult
problems or situations, so make sure you keep them engaged this way. People motivated by achievement work very
effectively either alone or with other high achievers.

When providing feedback, give achievers a fair and balanced appraisal. They want to know what they're doing right –
and wrong – so that they can improve.

Affiliation

People motivated by affiliation work best in a group environment, so try to integrate them with a team (versus working
alone) whenever possible. They also don't like uncertainty and risk. Therefore, when assigning projects or tasks, save
the risky ones for other people.

When providing feedback to these people, be personal. It's still important to give balanced feedback, but if you start
your appraisal by emphasizing their good working relationship and your trust in them, they'll likely be more open to
what you say. Remember that these people often don't want to stand out, so it might be best to praise them in private
rather than in front of others.

Power

Those with a high need for power work best when they're in charge. Because they enjoy competition, they do well
with goal-oriented projects or tasks. They may also be very effective in negotiations or in situations in which another
party must be convinced of an idea or goal.

When providing feedback, be direct with these team members. And keep them motivated by helping them further
their career goals.
Harvest Strategy
A harvest strategy is a calculated decision to minimize all types of spending on a specific product to maximize
profitability, despite a potential decline in market share. A harvesting strategy can be developed for product
or business lines and serves as an “exit” plan should a product become outdated. Harvesting strategies are
usually used and put into action at the end of a product or business life cycle. At this point, it is decided that
additional investment into the product or business line will not increase revenue.
Summary

• A harvest strategy is a calculated decision to minimize all types of spending on a specific product to maximize
profitability, despite a potential decline in market share.

• The strategy can be developed for product or business lines and serves as an “exit” plan. It is usually used and
put into action at the end of a product or business life cycle.

• There are four common stages that every business or product line is expected to follow – the start-up or
introduction stage, the growth stage, the maturity stage, and the renewal or declination stage.

The Product or Business Life Cycle

To fully comprehend the use and applicability of a harvest strategy, it is beneficial to understand the
business/product life cycle. There are four common stages that every business or product line is expected to
follow. They include the start-up or introduction stage, the growth stage, the maturity stage, and the renewal
or decline stage.

• The start-up stage is the very beginning of the cycle. The business model is still being developed, and significant
amounts of investment is needed to market the release of the new product or business line. The start-up stage
focuses on increasing customer awareness and generating initial sales.

• The growth stage of a product or business line is the stage at which demand starts to increase, thereby offsetting
an increase in overall production and product access and availability. At the growth stage, the existing consumer
base begins to mature, while traction for new customers continues to increase.
• The maturity stage of a business is the stage at which a business’ marketing and production costs begin to
decrease, and the business is generating its highest profits. At the maturity stage, revenue is constant, and
operations are efficient.

• The renewal or decline stage is the stage where a product or business line starts to lose market share as a result
of increased competition and/or stagnant revenues. It is also known as the cash-cow stage of the business or
product, where more investment is not necessary, as further investments may not result in increased sales.

A business faces three considerations for employing a harvest strategy – a reduction or complete cut in capital
expenditure and spending, a reduction or complete cut in marketing expenditure, or a reduction or complete cut in
operating expenditure. The strategy can also include a plan on new avenues of investment where resources can be
channelled to.

Examples of Harvest Strategies

Below are a few real-world examples of harvesting strategies:

1. Equity investments

Also referred to as an exit strategy, a harvest strategy is a plan for investors to maximize their profits. A common exit
strategy in equity investments is listing a company on the stock market – i.e., launching an initial public offering (IPO).

2. Telecommunications sector

A common harvesting strategy for business in the telecommunications sector is the redirection of resources and funds
into the development of new technology and brands with notable growth opportunities, instead of allocating resources
to technology or products that are becoming obsolete as technology advances.

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