MGMT8370 RISK & ISSUE MANAGEMENT

WEEK 3: PROBLEM SOLVING & DECISION MAKING

PROFESSOR LISA POLLARD
LEARNING OUTCOMES
Upon completion of this module, you will be able to:

7.4 Demonstrate effective decision making with the use of tools including:
Good Decision Making
Problem Solving and Decision Making –
7.3 Use problem solving techniques to resolve issues:
7.3.1 Brainstorming
7.3.2 Lateral thinking
7.3.3 Root cause analysis
7.3.4 Divide and conquer
7.3.5 Trial and error

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AGENDA
▪ Objectives & Review
▪ Problem Solving & Decision Making Part 1
▪ Good Decisions & Planning
▪ Productive Thinking
▪ Using Problem Solving Techniques

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REVIEW

▪ Differences between risks & issues

▪ Reasons and benefits of creating an Issue Log
▪ 6 steps to problem solving
▪ Decision levels
▪ Types of decisions

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 Decision Levels
Strategic Tactical Operational
Types of Problems

Performance
Not in Target numbers – call
Deviation Working hours
Market answer rate or
software perf. DECISION &
PROBLEM GRID
Reduce
Improve Customer Working conditions
Improvement Emissions OR
Satisfaction (EG: desk location)
Better Productivity
Match the problem type located in
the rows to the decision level by
column

Better team Short term staffing

Open-ended Better Widget
collaboration problems
Risk Management Problem Solving
PROBLEM SOLVING
CONTEXT
• Plan

• Identify • Define the problem

▪ Payoff Matrix
▪ Decision Trees
• Analysis Qualitative/ • Define the problem ▪ Paired Comparison
Quantitative) • Establish Criteria ▪ Implication Wheels
▪ Good Planning
▪ Productive Thinking
• Generate alternatives ▪ Faster Thinking
• Plan response
• Select response ▪ Brainstorming
▪ Root Cause
▪ Divide & Conquer
• Implement
• Monitor & Control ▪ Trial & Error
• Monitor

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MAKING GOOD DECISIONS

Planning
Creates a proactive environment

Determines the end state

Provides guidelines and goals

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IMPACT OF POOR PLANNING
ON DECISION MAKING WHEN IT IS THE NORM
▪ Reactive ▪ Chaos
▪ Minimal alternatives ▪ Stress
▪ Under developed solutions ▪ Conflict

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 Timely
Sound MAKING GOOD
DECISIONS

Collaborative

Good Decisions

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BENEFITS OF PLANNING

Articulate Identify Create

choices resources measures

Specific Intentional
actions resolution
Isn’t this Risk Management?
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DECISION MAKING

“Although it has its shortcomings, some combination of intuition and

rational analysis may be the best way for managers to make decisions in
uncertain and fast-moving times”

Hudson (2008 p28) as credited in the text book on page 55

Reflect
▪ Intuition
▪ Rational analysis
▪ What works best and why

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NEXT UP: PART 2
PRODUCTIVE THINKING
TECHNIQUES

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