Solving Managerial Problems Systematically

Hans Heerkens, Arnold van Winden

• Publisher: Routledge
• Year: 2021
• eBook ISBN: 9781000406184
• Topic: Business
• Subtopic: Accounting
• Index: Business

In their new book Solving Managerial Problems Systematically, Hans Heerkens and Arnold van Winden teach students how to identify and efficiently deal with problems. The book uses the Managerial Problem-Solving Method, which deals with problems step by step.

Solving Managerial Problems Systematically describes the seven phases of the Managerial Problem-Solving Method, a roadmap on how to identify, conduct thorough research into, and lastly solve a core problem. This textbook treats the concept of a 'problem' as an analytical one; a concept that can be found in any department in any organisation. Creative techniques are used to help find a solution for the problems encountered, which makes the method an ideal tool that is applicable in nearly any situation.

Solving Managerial Problems Systematically is intended for Bachelor studies (professional education and university) where students engage in problems and problem-solving in individual courses, projects, or graduation. It is a valuable aid for consultants and advisors to help identify and analyse managerial problems, and to advise companies on possible solutions.

1
A Framework for The Best Solution

Which is more effective: tackling a problem systematically or doing so creatively? Using the MPSM, an acronym of Managerial Problem-Solving Method, you can apply a systematic approach to your work while still retaining creativity.

This chapter addresses the following questions:

• How can a creative and a systematic approach complement one another?
• What types of problem can the MPSM be used for?
• At what point in your problem-solving approach do you start conducting research?
• Why does the MPSM work?

Managerial Problem-Solving Method

The Language of Variables

How to Find a New Violinist

After 43 years of loyal service, violinist Albert closes the lid on his violin case for the very last time. The regional symphonic orchestra will have to start looking for a new violinist. But the members of the strings section are divided on how to proceed. A number of musicians prefers a systematic approach, with a list of prerequisites for potential new recruits. Others would rather focus on finding a virtuoso artist, someone who plays from the heart; they are less interested in credentials. The chief conductor asks both sides to come up with a well-founded proposal.

Those favouring the systematic school of thought feel that a new violinist should be a graduate of an academy of music. Applicants should have at least five years’ experience in a large orchestra. Neither famous violin concertos by great composers nor more obscure works by lesser giants should hold any secrets for them. The requirements are to be published in an advert. A selection commission, consisting of the conductor, a first violinist, and a cellist, will be reviewing new applicants based on an established checklist of requirements. Whoever meets these requirements demands best will get the job.

The second group opts for a different approach. These musicians aim to publish an announcement in a major national newspaper. They are looking for a violinist who plays ‘from the heart’. Any musicians interested in being part of the orchestra can come by next Wednesday afternoon to present their performance. The strings section will then decide which applicant would best fit the orchestra.

Which approach should the chief conductor go for? The systematic approach has a high chance of yielding a performer capable of handling the work. The creative approach, on the other hand, may uncover some home-schooled musical marvel – a passionate violinist who would have otherwise been overlooked.

Put it like that, and the creative approach would seem to have the most benefits. But it does come with some risks. What if the ‘brilliant’ violinist plays a soulful and touching rendition of a piece by Vivaldi at the Wednesday afternoon audition, but then utterly butchers a sonata by Bach during an official recital? Are they familiar enough with the violin score? Are they fast enough when it comes to reading musical notes or rehearsing for new performances?

The final decision is left to the chief conductor. Both options have their own advantages and disadvantages. So he chooses a third option: a combination of the two methods. Any interested violinist is invited to demonstrate their skill on Wednesday afternoon, on one condition: they have to be a graduate of an academy of music. Based on performance, the orchestra will choose the most passionate violinist who, happily, also meets the minimum prerequisites for playing in an orchestra. For a while, the chief conductor considered inviting all comers, and having them take an academic level test. But that approach would take up a lot of time – time the chief conductor does not have.

1.1 Characteristics of the Managerial Problem-Solving Method

Some people refuse to enter a supermarket without a grocery list. If a job needs doing well, they will swear by using an established plan of attack or a solid script. Others rely on their creativity and adaptability. They tend to work based on circumstances. They need some elbow-room to arrive at better solutions. So how can you work systematically without losing out on creativity? This chapter introduces the Managerial Problem-Solving Method (MPSM). These are the characteristics of the MPSM:

Managerial Problem-Solving Method (MPSM)

• The MPSM is a method in which the creative and the systematic complement each other
• The MPSM is divided into seven phases
• The method can be used anywhere and at any time
• Problems are handled in their organisational context
• Problems are expressed in terms of variables
• The MPSM is an adaptable framework
• There MPSM is a method in which investigating and trouble-shooting meet

1.2 Systematic or Creative Approach?

The MPSM is not stringently rigid, but a framework for you to fill in as you need. Without requiring too much complicated prior knowledge, it allows you to reach solutions to managerial problems in a variety of situations. But you do need to know how you can apply the MPSM’s methodology in a meaningful manner. Which is best: a systematic or a creative approach? Think of it as a choice between putting your money into investments, or into a savings account. Investing money can help you increase your funds more rapidly than saving money at a bank. But the reason not everybody has fully poured their own capital into investments is because investing comes at a greater risk. This is similar to using a creative approach to solve a problem. You may come across imaginative solutions, frequently better than what a systematic approach could have yielded. But there’s a relatively greater chance that your inventive idea will not be practical, or simply does not work. So should you revert to the systematic approach?

A systematic approach is one that looks for a good, practicable solution in a stepwise manner. But that solution is not necessarily the best possible answer to your problem. A company that wishes to excel needs something more. If all companies in a certain field were to use the systematic approach, they could all arrive at the same solution, with the same advantages, using the same strategies. In that case, a systematic approach has done nothing for a company in terms of profiling, of distinguishing itself from the competition. A competitive advantage cannot be achieved by a systematic approach alone – if it could, the systematic approach would be all anyone would use.

A creative approach has major potential rewards, but a relatively greater risk of failure. There are rarely any brilliant strokes of luck involved in the outcome of the systematic approach, but it will generally yield acceptable results. It is not always possible to say which of the two approaches will work the best beforehand. In some specific cases, there may be a clear preference. In practice, it is often convenient to opt for a systematic approach while also applying your creativity during certain stages. Think, for example, of developing a name for a new model of car. You start with a list of requirements – as systematically as possible. Using books on marketing and brand management, you establish your demands, i.e. what you expect from a car’s name. Then, you select whatever criteria you feel are relevant. For example, the new name should follow a similar pattern as earlier models by the same manufacturer.

Once you have established you list of demands, it is time to start thinking of names – time to get creative. In a brainstorming session, you come up with as many names as you can. Then you switch back to the systematic approach. You verify your potential names against the list of established requirements. You pick whichever best fits the bill. Following this line of reasoning, it should come as no surprise that Vauxhall produces a car called the Cascada. That name fits in perfectly well with Vauxhall’s established range of seemingly Latin names ending in -a used for their other cars: Corsa, Astra, Meriva, Insignia and Zafira.

The Managerial Problem-Solving Method allows you to embark on necessary creative jaunts within a systematic approach to a problem. Those excursions can be essential for reaching quality solutions. The creative approach is most prevalent in phase 4 of the MPSM; the phase where you look for alternative solutions. The systematic approach and the creative approach are not contradictory; instead, they are complementary. Depending on the situation, use either a systematic approach, a creative approach, or a combination of the two. The MPSM lets you do whatever best serves your purpose.

1.3 Phases of the Managerial Problem-Solving Method

The MPSM is one of several systematic problem-solving approaches. Developed by the University of Twente, the MPSM is based on several different problem solving methods. The MPSM consists of the following seven phases:

1. Defining the problem
2. Formulating the approach
3. Analysing the problem
4. Formulating (alternative) solutions
5. Choosing a solution
6. Implementing the solution
7. Evaluating the solution

When using the MPSM for problem-solving purposes, you follow the seven phases sequentially – but you may have to backtrack on occasion, too. It is quite possible to find that the problem you established in phase 1 does not manifest itself as you thought it did once you reach phase 3. This could mean you need to return to phase 1, and review your initial diagnosis.

All in all, this approach looks neither very new nor original. The MPSM does not appear to deviate substantially from existing problem-solving methods.

Investigating, analysing, concluding, implementing and evaluating; they are all there. And yet, the MPSM is different from other, often more limited problem-solving models.

1.4 MPSM Works Anywhere, Anytime

There are methods which only apply to a certain field or area of expertise. Look at Van den Kroonenbergs technical problem-solving model, for example. Building a bicycle becomes a piece of cake using this detailed method for designing tools or equipment. But it gets you nowhere if what you want to design is an organisation. Another example: Strategic management uses a variety of models designed specifically for a single purpose. Think of the SWOT analysis, Porter’s five forces model, or a fishbone diagram. Each is a very convenient tool for a specific situation – but they all have their limits in terms of applicability.

The MPSM is a more general method, applicable for various problems encountered in various situations in all areas of expertise. It has helped a waste management company solve an issue with working hours which did not fit with garbage truck routes; mathematics alone was not enough to solve this logistical puzzle. MPSM’s consistent approach helped make an airport better suited to certain types of aircraft. It has improved productivity of packaging machines. The MPSM can be used anywhere, anytime.

1.5 Tailored to Your Problem

Many problem-solving methods are only concerned with whatever solution technically solves the problem. Established powers and concerns in an organisation are not investigated. Who has access to what information?...

Table of contents

• Cover
• Title Page
• Copyright Page
• Foreword
• Table of Contents
• 1 A Framework for The Best Solution
• 2 Untroubled Problems
• 3 A Trouble-Shooter’s Log
• 4 In Search of the Core Problem
• 5 D3: Do, Discover, Decide
• 6 In Search of the Unknown
• 7 An Overview of Options
• 8 The Client’s Move
• 9 A Systematic Approach
• 10 Keep Improving
• 11 In Search of Knowledge
• Sources
• Illustration Acknowledgements
• Index
• About the Authors