A LESSON IN CREATIVE

PROBLEM-SOLVING
Morgan: American Financier
By Jean Strouse
Not all problems have
simple solutions

Not all problems have simple solutions.

You need to think differently

That’s when you need to think differently,

approach the issue from a different angle
A little creative thinking
can reap big rewards

Sometimes, a little creative thinking can reap big rewards –

And solve seemingly insurmountable
problems

and solve seemingly insurmountable problem

The year was 1896
 SOURCE: WIKIMEDIA.ORG

The Northern Pacific Railroad

The Northern Pacific Railroad,

https://upload.wikimedia.org/wikipedia/commons/a/ae/Northern_Pacific_Railway_logo.png
 SOURCE: WIKIMEDIA.ORG

a railroad Morgan had worked with for over two decades, was floundering

AN- logo will move here from previous slide

 SOURCE: WIKIMEDIA.ORG

1883
Debt switched to Fixed costs
equity brought down
. It had been Morganized once already, back in 1883: that is, its debt had been switched
to equity and fixed costs brought down.
A decade later,
it defaulted on its loans again

But a decade later, it defaulted on its loans again.

 SOURCE: WIKIMEDIA.ORG

. A grand plan of merging Northern Pacific with another railroad was nixed by the US Su-
preme Court
 SOURCE: WIKIMEDIA.ORG

Northern Pacific was backwhere it started–

in dire need of capital.

and now, Northern Pacific was back where it started – in dire need of capital.
But it's charter didn’t allow for
raising capital through
issue of bonds

. Its charter, though, didn’t allow for raising capital through issue of bonds
Morgan’s lawyers did some
out of the box thinking

. And that’s where Morgan’s lawyers did some out of the box thinking.
Morgan’s team hunted around and hit upon
 SOURCE: WIKIMEDIA.ORG

Wisconsin
the Superior & St. Croix Railroad, an unbuilt, dormant railroad in Wisconsin

https://en.wikipedia.org/wiki/St._Croix_Valley_Railroad#/media/File:Scxyherald.png
 SOURCE: WIKIMEDIA.ORG

They quickly moved to acquire the Superior & St. Croix,

AN- logo will turn from front to back

https://en.wikipedia.org/wiki/St._Croix_Valley_Railroad#/media/File:Scxyherald.png
 SOURCE: WIKIMEDIA.ORG

changed its name to Northern Pacific Railway and made this newly-created company
take over Northern Pacific Railroad
https://en.wikipedia.org/wiki/St._Croix_Valley_Railroad#/media/File:Scxyherald.png
 Northern Pacific Railway’s
charter had no restriction
on raising capital

Northern Pacific Railway’s charter had no restriction on raising capital and

AN- visual will fade out when the vo says - no restriction on raising capital
 SOURCE: WIKIMEDIA.ORG

It promptly issued $45 million

worth of securities

promptly issued $45 million worth of securities to a syndicate of J.P. Morgan & Co.
and Deutsche Bank.

https://commons.wikimedia.org/wiki/File:JP_Morgan_logo.jpg#/media/File:JP_Morgan_logo.jpg
https://it.wikipedia.org/wiki/Deutsche_Bank#/media/File:Deutsche_Bank_logo_without_wordmark.svg
Someone in Morgan’s team
had their thinking cap on

Someone in Morgan’s team clearly had their thinking cap on.

 How do the rest of us become
equally adept problem solving?

How do the rest of us become equally adept at problem-solving? Here are some simple
but effective tips:
1. Ask why? Why?

1. Ask why.
Before you start searching
for answers, make sure
you’ve understood
the question

Before you start searching for answers, make sure you’ve understood the question.
Figure out why the problem
exists and why you’re seeking
unusual solutions

Figure out why the problem exists and why you’re seeking unusual solutions.
2. Encourage disruption.
Challenge the status quo

2. Encourage disruption. Challenge the status quo.

When we question the
existing solutions and
conventional wisdom,
we come up with
more elegant and
efficient variations

It’s only when we question the existing solutions and conventional wisdom that we
come up with more elegant and efficient variations
3. Look outside. Don’t limit your
thinking to your industry or
area of expertise

3.Look outside. Don’t limit your thinking to your industry or area of expertise.
 Widen your world view

Speak with people from different spheres of life, widen your world view.

AN- Bring is image when vo says - Speak with people...

Creative, out of the box thinking
 isn’t the prerogative of a select few

AN- all the bulbs/brains will come and brighten up

Seek new perspectives by
interpreting information
and data differently

. We can all train our minds to seek new perspectives by interpreting information
and data differently
Playing devil’s advocate
with the ideas you already have

and playing devil’s advocate with the ideas we already have.

 And just sometimes, all it takes to change the game is a change of name.

AN- “G” wil be puhed up by “N”

 UP NEXT

9
A YEAR'S WORK IN MONTHS