Introduction

DM 309 – Problem Solving & Decision

Making
Dr. Joyce A. Bodah

Ifugao State University

College of Advanced Education
Doctor of Philosophy in Management
Nayon, Lamut, Ifugao
Learning Outcomes PSDM

At the end of this module, you will be able to:

1. Distinguish between problem and opportunity;
2. Explain why there is a need to solve a problem;
3. Enumerate different skills needed in problem solving.
I. Problem and Problem Solving PSDM

Problem or Opportunity
“While it’s commonly said that a clearly defined
problem statement is a ‘problem that is 50% solved,’
there are instances where we may not be certain about
the problem itself, yet we are aware of existing
opportunities. Understanding the difference between a
problem and an opportunity is crucial for effectively
selecting the proper approach to any project.”
 I. Problem and Problem Solving PSDM

Problem Statements
Problem statements typically arise in response to identified
issues and are often developed reactively.
Problem Statements are generally easier to recognize, as they
are reactive statements aimed at solving a known problem.

Common Problem Solving Tools

> Root Cause Analysis – Fishbone Diagrams, The 5 Whys to
uncover the underlying causes of the issue and prevent its
recurrence.
 I. Problem and Problem Solving PSDM

Opportunity Statement
An initiative that enhances or improves a process to help achieve
its objectives.
Opportunity statements are often more challenging to develop
as they do not stem from a specific problem.

Common Opportunity Tools

> Benchmarking, Voice of Customer analysis, Market analysis, and
the Balanced Scorecard – typically used to identify and define
opportunities for improvement or advancement.
 I. Problem and Problem Solving PSDM

Problem vs. Opportunity

When several problems are identified within a process, it may
indicate underlying inefficiencies or areas of improvement.
Multiple problems can collectively present an opportunity to
improve a process overall.
 It is in this case that an opportunity statement can be developed
to define the specific improvements that could be made.
This statement should outline the goals and objectives, as well
as the potential benefits of implementing the proposed changes.
 I. Problem and Problem Solving PSDM

Problem vs. Opportunity: A problem or opportunity

statement boils down to the situation we are facing:
• Problem – A clear issue or challenge that needs to be
addressed. It hinders progress, causing inefficiencies or
preventing goals from being achieved.
• Opportunity – A chance to improve or enhance an
existing process, system, or product. It’s all about
improving things or capitalizing on a potential advantage
while focusing on innovation and improvement.
 I. Problem and Problem Solving PSDM

Problem vs. Opportunity: A problem or opportunity

statement boils down to the situation we are facing:
• Make sure that when choosing a problem or
opportunity statement, it truly depicts the situation.
• When faced with problems, address them.
• When presented with opportunities, we capitalize on
them.
 Discussion Questions: PSDM

• When was the last time you were involved in a problem-

solving project or process in your organization? Can you
determine whether the project or process you’ve gone
through is addressing a problem or capitalizing on an
opportunity?
• What tools did you use to analyze the problem?
 I. Problem and Problem Solving PSDM

Problem-Solving
• Problem-solving is the method used to understand what
is happening in the environment, identify things that
need change, and figure out the things that need to be
done to create the desired outcome.
• It is the source of all new inventions, social and cultural
evolution, and the basis for market-based economies.
• It is the basis for continuous improvement,
communication, and learning.
 I. Problem and Problem Solving PSDM

Problem-Solving
• Problem solving is the process of systematically
removing barriers that prevent you or others from
reaching goals.
• Your business/organization removes obstacles in
customers’ lives through its products/services, just as
you can remove obstacles that keep your team from
achieving business goals.
 I. Problem and Problem Solving PSDM

Design Thinking
• Human-centered, solutions-based approach to
problem-solving and innovation.
• It was originally created for product design but now
it’s used to solve internal business problems, too.
• It has four stages: Clarify, Ideate, Develop, Implement.
 I. Problem and Problem Solving PSDM

Design Thinking
1. Clarify: Clarify a problem through research and feedback
from those impacted. Make concrete observations about
users. Reframe the problem to gain deeper insight into user
needs.
2. Ideate: Armed with new insights, generate as many
solutions as possible. Identify design principles to guide
ideation. Overcome cognitive fixedness to generate
innovative ideas that fulfill the users needs identified in
research.
 I. Problem and Problem Solving PSDM

Design Thinking
3. Develop: Combine and cull your ideas into a short list of
viable, feasible, and desirable options before building prototypes
(if making physical products) and creating a plan of action (if
solving an intangible problem). Combine ideas into concepts by
critiquing possible solutions. Prototype quickly and purposefully
to answer critical questions about concepts’ viability.
4. Implement: Execute the strongest idea, ensuring clear
communication with all stakeholders about its potential value
and deliberate reasoning.
 I. Problem and Problem Solving PSDM

Creative Problem-Solving
(Useful when a problem’s root cause has yet to be defined. These
steps can also be used in the design thinking ideate”stage.)
1. Brainstorming: Instruct everyone to develop as many ideas as
possible in an allotted time frame without passing judgment.
2. Divergent thinking exercises. Rather than arriving at the
same conclusion (convergent thinking), instruct everyone to
come up with a unique idea for a given prompt (divergent
thinking). This type of exercise helps avoid the tendency to agree
with others’ ideas without considering alternatives.
 I. Problem and Problem Solving PSDM

Creative Problem-Solving
3. Alternate worlds. Ask your team to consider how various
personas would manage the problem. For instance, how
would pilot approach it? What about a young child? What
about a seasoned engineer?

Note: It can be tempting to fall back on how problems have been

solved before, especially if they worked well. However, if you’re
striving for innovation, relying on existing systems can stunt
your company’s growth.
I. Problem and Problem Solving PSDM

Importance of Problem Solving for

Leaders
1. Having frameworks and tools at a
leader’s disposal when issues arise, the
issues can be turned into opportunities.
2. Issues will lead leaders to empower
employees to work together to find the
best solution.
I. Problem and Problem Solving PSDM

Problem Solving Skills for Leaders

1. Problem Framing – Determining the scope,
context, and perspective of the problem being
solved.

“Before you begin to generate solutions for your

problem, you must always think hard about how
you’re going to frame that problem.”- Datar, S.
(Harvard Business School)
I. Problem and Problem Solving PSDM

Example: Company that sells children’s sneakers (problem:

decreasing sales) Consider these when framing the problem:

• What is the children’s sneaker market like right now?

• Should we improve the quality of our sneakers?
• Should we assess all children’s footwear?
• Is this a marketing issue for children’s sneakers specifically?
• Is this a bigger issue that impacts how we should market or
produce all footwear?
I. Problem and Problem Solving PSDM

Problem Solving Skills for Leaders

2. Empathy – Empathize with those impacted
by the problem.
Empathy is the ability to understand
others’ emotions and experiences.
While many believe empathy is a fixed trait,
it’s a skill leaders can strengthen through
practice.
I. Problem and Problem Solving PSDM

Example: Company that sells children’s sneakers (problem: decreasing

sales)

Consider whom it impacts:

• Your organization’s employees, because sales are down.
• The customers who typically buy your sneakers.
• The children who typically wear your sneakers.

> Empathy is required to get to the problem’s root and consider each
group’s perspective. Assuming someone’s perspective often isn’t
accurate, so the best way to get that information is by collecting user
feedback.
I. Problem and Problem Solving PSDM

>When someone shares their feelings and

experiences, you have an opportunity to
empathize with them. This can yield solutions to
their problem that directly address its root and
shows you care. In this case, you may design a
new line of children’s sneakers with extremely
grippy soles for added safety, knowing that’s
what your customers care most about.
I. Problem and Problem Solving PSDM

Problem Solving Skills for Leaders

3. Breaking Cognitive Fixedness
• Cognitive fixedness is a state of mind in which you examine
situations through the lens of past experiences. This locks you
into one mindset rather than allowing you to consider
alternative possibilities.
• For instance, your cognitive fixedness may make you think
rubber is the only material for sneaker treads. What else could
you use? Is there a grippier alternative you haven’t
considered?
• Problem-solving is all about overcoming cognitive fixedness.
You not only need to foster this skill in yourself but among your
team.
 I. Problem and Problem Solving PSDM

Problem Solving Skills for Leaders

4. Creating a Psychologically Safe Environment
• As a leader, it’s your job to create an environment conducive to
problem-solving. In a psychologically safe environment, all team
members feel comfortable bringing ideas to the table, which are
likely influenced by their personal opinions and experiences.
• If employees are penalized for “bad” ideas or chastised for
questioning long-held procedures and systems, innovation has no
place to take root.
• By employing the design thinking framework and creative problem-
solving exercises, you can foster a setting in which your team feels
comfortable sharing ideas and new, innovative solutions can grow.
 I. Problem and Problem Solving PSDM

Building Problem-Solving Skills

> Practice.
• Again and again, when you encounter challenges, use creative
problem solving tools and design thinking frameworks.
• Assess results to learn what to do differently next time.
I. Problem and Problem Solving PSDM

4Cs 21st Century Skills

1. Critical Thinking – The practice of solving problems.
2. Creativity – The practice of thinking outside the box.
3. Collaboration – The practice of working together to
achieve a common goal.
4. Communication – The practice of conveying ideas
quickly and clearly.
References PSDM

Roman, K. (2024 March 9). Problem vs Opportunity Statements.

https://www.linkedin.com/pulse/problem-vs-opportunity-statements-karen-r
oman-gxfte

Stottler, W. and Kepner-Tregoe (n.d.) What is problem solving and why is it

import.
https://kepner-tregoe.com/blogs/what-is-problem-solving-and-why-is-it-imp
ortant/#:~:

Cote, C. (2023 January 17). Why problem-solving skills are essential for
Leaders in any Industry. Harvard Business School Online. .
https://online.hbs.edu/blog/post/problem-solving-in-business
 Activity PSDM

• Assignment:
 Try the Design Thinking Process or the Creative Problem Solving with a worrying issue that your
agency/office is facing.
 MS Word file

Due: September 13, 2024

TODAY: REFLECTIONS JOURNAL

 Follow this essay format: Introduction, Discussion, Conclusion
 1.5 line spacing, “Normal” margins, Font – Arial, Font size – 12; A4 paper size
 Do your activity today and submit your output via your e-Reflections Journal in Google Docs. Make
your e-Reflections Journal through Google Docs and share it with me ([email protected]) today.
 Guide Questions: What new insight did you learn today? Why is it important to me/my work? How
will I apply this to my life/work?
 Introduction
DM 309 – Problem Solving and Decision
Making

PSDM

Ifugao State University

College of Advanced Education
Doctor of Philosophy in Management
Nayon, Lamut, Ifugao