MGMT8370 RISK & ISSUE MANAGEMENT

WEEK 2: PART 2 PROBLEMS AND DECISION

PROFESSOR LISA POLLARD
AGENDA
• Review
• Issues vs. Risks
• Issue Management
• Decision Making
Part 2
• Problem Solving Process
IDENTIFYING THE PROBLEM
Symptoms are not the Problem!
The key to a good problem definition is ensuring that you deal with the real
problem – not its symptoms

Review this statement

Performance in your department is substandard
Symptom or Problem
Is this due to
Carelessness
Lack of motivation
Not enough training
Unreasonable workload ....
GENERATE THE PROBLEM STATEMENT
Look out for… defining the problem that’s really a solution
Poor problem statement:
“We have to find a way of disciplining people who do substandard work”

Almost:
"We have a problem with substandard work."

Better:
"We have a problem with increased volumes of work and this is causing
substandard results."
PROBLEM STATEMENT STRATEGY
Key elements of an effective problem statement include:
▪ Gap: Identify the gap (pain) that exists today.
▪ Timeframe, location and trend: Describe when and where the
problem was first observed and what kind of trend it is
following.
▪ Impact: Quantify the gap (cost, time, quality, environmental,
personal, etc.)
▪ Importance: To the organization, the individual, etc. to better
understand the urgency.

Source: Source: https://www.isixsigma.com/new-to-six-sigma/getting-started/how-to-write-an-effective-problem-statement/

SAMPLE PROBLEM STATEMENT
The Humane Society is in need of additional funds to
support their pet adoption program. The funds are
needed to cover staff and medical costs associated with
boarding pets and ensure they are in good shape for
adoption. If additional funds are not available, more
potential pets will be destroyed. The Humane Society
Volunteer Team is responsible for implementing a fund
raising event with a goal to raise $10K. Staff are available
to assist with the event planning but their efforts are
limited to 5 hours per week.
SIX-STEP APPROACH TO PROBLEM SOLVING
1. IDENTIFY, DEFINE, AND DETERMINE CAUSE(S)

▪ Identify the problem or issue that exists today.

▪ Determine causes

▪ Define the problem

2. IDENTIFY CRITERIA / STANDARDS

After generating the problem statement but before identifying solutions,

identify criteria that needs to be met by the chosen solution

Enable fair comparison between alternatives

• Must align with company/team accepted standards of performance

Provide a guide for the selection process

• At minimum ‘must have’ versus ‘nice to have’
• Simple Y/N criteria OR numeric ranking 1-5
• Accounts for attributes such as cost, difficulty, risk, values, etc.
3. GENERATE ALTERNATIVES
Consultative approach to generating solutions is likely to
result in more commitment from the team.

Brainstorming is the most common approach

• More details about brainstorming next week.
4. SELECT ALTERNATIVES
 Guided from the selection criteria score
 Ensure stakeholder engagement
 Additional factors maybe considered where multiple
alternatives have similar scores
 Which is most likely to have a longer solution
 Which is the most “realistic”
 Level of risk
 Impact on other projects
 Stakeholder preference
5. IMPLEMENT SOLUTION (DECISION)
 Most likely involves some level of change
 Plan, Plan, Plan
 Not reactive
 Appropriate measure need to be established
 Engage team
 Maximize benefit
 Communicate decision and reasoning
6. MONITOR AND EVALUATE

 Compare the outcome to expected results

 Utilize quantitative and qualitative data
COMMON “PITFALLS”
 Two or more objectives
 Focusing on past
 Defining problem with specific solution
 Confusing opinions with fact
 Confusing symptoms with causes
 Discussing solutions before decisions defined
 Evaluating solutions before all causes are identified or defined
 Choosing solutions that are more complicated/risky
FORCE-FIELD ANALYSIS
 Document the forces for and against a problem.
 Aid in response planning

Source Course Text Page 51

9 STEP CHECKLIST FOR IMPLEMENTING A DECISION

Source Course Text Page 52

SUMMARY
• Decision Making
• Defining problems
• Problem Solving Process