Creative Thinking, Problem Solving, Professionalism, and Ethics Notes

Chapter 6: Creative Thinking and Problem-Solving

Introduction

  • Rapidly changing, demanding, and competitive markets pose challenges for businesses.

  • Maintaining or expanding competitive advantage requires creative problem-solving.

  • Leaders must solve problems creatively and quickly.

  • Solutions may range from small changes to complete paradigm shifts for business survival.

1. What is Creativity in a Business Context?

  • Creativity extends beyond artwork, books, or advertisements.

  • It involves:

    • Seeing things differently than others.

    • Breaking down and rebuilding concepts.

    • Organizing thoughts and resources for viable solutions.

    • Discovering insights and considering different approaches.

    • Rejecting the obvious to find novel solutions.

    • Differentiating the business for a competitive edge.

2. The Importance of Creativity in Business

  • Richard Branson emphasizes the need for creativity and innovation in business practices.

  • Businesses must adapt to rapid market changes to survive and prosper.

  • Responding to challenges creatively has been key to Branson's success.

  • Futurists Heidi and Alvin Toffler predicted "future shock," the feeling of being overwhelmed by change.

  • Generations Z (born 1990 onwards) and Y (born 1980-1990) are accustomed to rapid changes.

  • Older generations may find these changes more challenging.

  • Businesses must continuously innovate to meet consumer needs.

  • Thinking "outside the box" is not enough; businesses need to think as if there is no box.

  • Logical thinking alone may not solve all problems; creativity is essential to outmaneuver competitors.

  • Businesses should encourage intrapreneurship, where employees suggest creative solutions.

  • Jack Welch, former CEO of General Electric (GE), advocated rewarding creativity, risk-taking, and innovation which added more than 400 billion in value to the company.

  • Rewarding these behaviors allows the business to take control of the future through innovation.

3. Developing Creative Problem-Solving Skills

  • Creativity can be taught and developed.

3.1 The Four Pillar Approach to Creativity
  • Fluency: The ability to produce many different ideas, which can be developed through brainstorming sessions within and between teams.

  • Flexibility: Being able to view situations and concepts from different points of view.

  • Originality: The ability to develop unique and new ideas that stand out.

  • Elaboration: Adding details and depth to different solutions.

Activity 1 (Examples)
  1. Fluency: List everything of a chosen color in 10 minutes.

  2. Flexibility: List items with wheels, then think of items without wheels that would benefit from them.

  3. Originality: Come up with original uses for an eraser.

  4. Elaboration: Improve the design of a school desk with innovative details.

Activity 2
  • Explain how fluency, flexibility, elaboration and originality could affect the creativity within the business.

3.2 SCAMPER
  • SCAMPER helps generate new ideas for improving existing products/services.

  • It is an acronym with the following elements:

    • Substitute:

      • What materials or suppliers can be substituted?

      • Can a new market be created?

      • What other processes can be used?

      • What other uses would this product have?

    • Combine:

      • What happens if features are combined?

      • Can it be combined with other products/services?

      • Can different materials be combined?

      • Which other resource can be combined when making this product?

    • Adapt:

      • How can it be adapted to satisfy different needs?

      • How can it be adapted to perform more reliably?

      • Can the product be adapted to be more environmentally friendly?

    • Modify:

      • What can be modified to make it better? (Color, shape, size, etc.)

      • How can it be made smaller/bigger/faster/more fun?

    • Put to other uses:

      • Can this product be used elsewhere?

      • How can wastage be recycled?

      • How else could this product be used?

    • Eliminate:

      • What features should be taken away?

      • How will this affect the target market?

    • Reverse:

      • What would happen if we reversed the order of service delivery?

      • Can the sequence of production be rearranged?

      • What impact will a change in layout or pattern have?

Activity 3
  • Apply the SCAMPER method to solve a problem at a local fast-food franchise.

3.3 Force Field Analysis
  • A problem-solving and decision-making tool that weighs the pros and cons of implementing a new idea or project.

  • It analyzes factors that support the current position (restraining forces) versus factors that support change (driving forces).

  • "Forces" include resources, people's attitudes, values, needs, legislation, competitors, etc.

3.3.1 Steps in the Force Field Analysis
  1. Define the problem: Determine what needs to change to help the business achieve its objectives.

  2. Define the change objective: Describe the desired outcome or goal as specifically as possible.

  3. Identify driving forces: Identify factors supporting the change and how it adds value.

  4. Identify restraining forces: Consider factors resisting the change.

  5. Develop a change strategy: Create a visual representation of all factors to determine if change is a good idea.

Activity 4
  • Complete a force field analysis for expanding your favorite brand into Africa.

4. Obstacles to Creative Thinking

  • Believing there is only one correct answer.

  • Lack of sleep and stress.

  • Overreliance on routine or logical thinking.

  • A mindset of "this works well, why change?".

  • An attitude of "I don't have time to be creative".

  • Managers discouraging subordinates' creativity.

  • People stating "I am not creative" (self-fulfilling prophecy).

5. Indigenous Thinking

  • Indigenous thinking (knowledge) refers to local knowledge unique to a culture or society.

  • It includes skills, know-how, experience, and insight.

  • Can help create a competitive advantage by offering a unique product/service.

  • May also pose a threat to businesses unfamiliar with the market.

Activity 5
  • Discuss the concept of indigenous thinking and when a business would employ it.

Additional Activities (Examples)

  1. Define creativity.

  2. Discuss the importance of creative thinking in business.

  3. Assess how creativity can assist a business with change.

  4. Discuss how the SCAMPER method could be used as part of the different management tasks of a manager.

  5. Draw a mind map to on the force-field analysis method used in the decision making process.

  6. Define the term indigenous thinking.

  7. Think of three examples where it is possible a business used indigenous thinking as part of its business strategy. Explain why you think the business opted for this approach.

Chapter 7: Professionalism and Ethics

1. Effective Business Practice

  • Identify core values important to the business and integrate them into daily practices.

  • Core values vary for each business, influencing how they measure success.

  • Ethical theories guide behavior and decision-making.

2. Ethical Theories

2.1 Principle-Based Theory
  • Values or rules determine the ethicality of an action.

  • Principles differ among individuals.

  • Ignoring the outcome and strictly adhering to principles may lead to undesirable results.

2.2 Consequence-Based Theory
  • The outcome of a situation determines whether the action is ethical.

  • However, there's a gray area between small fibs and unacceptable lies.

  • It raises questions about when the action becomes less important than the consequence.

2.3 The Utilitarian Theory
  • Focuses on outcomes, stating actions are justifiable if they benefit the majority.

  • For example, a pharmaceutical company releasing a drug with side effects for a minority if it cures the majority.

2.4 Narrative Theories
  • Uses stories, folklore, or organizational culture to illustrate acceptable behavior.

  • The storyteller guides the audience to a conclusion about the actions.

2.5 Other Ethical Theories
  • Virtue-based theory: Judges a person by character and reputation rather than an individual action.

  • Deontology: States that if a person upholds their obligation towards another person or society, the action will be ethical.

3. Professionalism, Ethics, and Responsible Behavior

  • Ethical behavior is a component of professionalism.

  • Ethical behavior:

    • Being honest and acting with integrity.

    • Acting acceptably to society.

    • Doing what is right, not what is easy or financially rewarding.

  • A professional person will act in an ethical manner and also:

    • Ensure current knowledge and skills.

    • Be committed to lifelong learning.

    • Share knowledge to develop other employees.

    • Exercise good judgement.

    • Be reliable and honor commitments.

    • Accept accountability for mistakes.

    • Ensure appearance matches high standards.

    • Be punctual.

    • Use appropriate language.

    • Avoid gossiping.

    • Keep personal issues separate from work.

Introduction

  • Rapid changes in markets require adaptable businesses.

  • Competitive advantage needs creative problem-solving.

  • Leaders must solve problems creatively and quickly.

  • Solutions range from small changes to paradigm shifts.

  1. What is Creativity in a Business Context?

  • Creativity is more than art; it's business innovation.

  • It involves:

    • Seeing things differently.

    • Breaking down and rebuilding concepts.

    • Organizing for solutions.

    • Discovering insights.

    • Rejecting the obvious.

    • Differentiating the business.

  1. The Importance of Creativity in Business

  • Branson: Creativity and innovation are essential.

  • Businesses must adapt to market changes to survive.

  • "Future shock" (Toffler): Overwhelm from rapid change.

  • Gen Z/Y are used to change; older gens may struggle.

  • Businesses must innovate to meet needs.

  • Think without a box; logic isn't always enough.

  • Encourage intrapreneurship (employee solutions).

  • Welch (GE): Reward creativity; it added 400B in value.

  • Reward innovation to control the future.

  1. Developing Creative Problem-Solving Skills

  • Creativity can be taught.

3.1 The Four Pillar Approach to Creativity

  • Fluency: many ideas (brainstorming).

  • Flexibility: different views.

  • Originality: unique ideas.

  • Elaboration: add details.

Activity 1 (Examples)

  • Fluency: List items of a color in 10 mins.

  • Flexibility: Items w/o wheels that would benefit.

  • Originality: Uses for an eraser.

  • Elaboration: Improve a school desk.

Activity 2

  • How fluency, flexibility, elaboration, originality affect business creativity.

3.2 SCAMPER

  • SCAMPER: Improve products/services.

  • Substitute:

    • Substitute materials/suppliers?

    • New market?

    • Other processes/uses?

  • Combine:

    • Combine features?

    • Combine w/ other products/services/materials/resources?

  • Adapt:

    • Adapt to needs/perform more reliably/be eco-friendly?

  • Modify:

    • Modify color/shape/size?

    • Make it smaller/bigger/faster/more fun?

  • Put to other uses:

    • Use elsewhere?

    • Recycle wastage?

    • Other uses?

  • Eliminate:

    • Take away features?

    • Affect on target market?

  • Reverse:

    • Reverse service delivery order?

    • Rearrange production sequence?

    • Impact of layout/pattern change?

Activity 3

  • Apply SCAMPER to a fast-food problem.

3.3 Force Field Analysis

  • Weigh pros/cons of a new idea/project.

  • Analyze restraining vs. driving forces.

  • "Forces": resources, attitudes, values, etc.

3.3.1 Steps in the Force Field Analysis

  • Define the problem: What needs to change?

  • Define the change objective: Desired outcome?

  • Identify driving forces: Factors supporting change.

  • Identify restraining forces: Factors resisting change.

  • Develop a change strategy: Visual representation.

Activity 4

  • Force field analysis for brand expansion into Africa.

  1. Obstacles to Creative Thinking

  • Only one correct answer belief.

  • Lack of sleep/stress.

  • Overreliance on routine/logic.

  • "Why change?" mindset.

  • "No time to be creative" attitude.

  • Managers discourage creativity.

  • "I'm not creative" belief (self-fulfilling).

  1. Indigenous Thinking

  • Indigenous thinking: local knowledge.

  • Includes skills, know-how, experience.

  • Creates competitive advantage.

  • May threaten businesses unfamiliar with the market.

Activity 5

  • Discuss indigenous thinking and when to employ it.

Additional Activities (Examples)

  • Define creativity.

  • Discuss the importance of creativity in business.

  • Assess how creativity assists with change.

  • Discuss how SCAMPER is used in management tasks.

  • Draw a mind map on force-field analysis.

  • Define indigenous thinking.

  • Examples of businesses using indigenous thinking.

Chapter 7: Professionalism and Ethics

  1. Effective Business Practice

  • Identify core values and integrate them.

  • Core values vary, influencing success measurement.

  • Ethical theories guide behavior.

  1. Ethical Theories

2.1 Principle-Based Theory

  • Values/rules determine ethics.

  • Principles differ.

  • Ignoring outcomes may lead to issues.

2.2 Consequence-Based Theory

  • Outcome determines ethics.

  • Gray area between fibs and lies.

  • Action vs. consequence?

2.3 The Utilitarian Theory

  • Focus on outcomes; actions benefit the majority.

  • E.g., drug with side effects for minority if it cures the majority.

2.4 Narrative Theories

  • Use stories/culture to illustrate behavior.

  • Storyteller guides the audience.

2.5 Other Ethical Theories

  • Virtue-based: Judge by character.

  • Deontology: Uphold obligations.

  1. Professionalism, Ethics, and Responsible Behavior

  • Ethical behavior is part of professionalism. Ethical behavior:

    • Honesty and integrity.

    • Acting acceptably.

    • Doing what is right.

  • A professional person:

    • Has current knowledge/skills.

    • Is committed to learning.

    • Shares knowledge.

    • Exercises good judgement.

    • Is reliable.

    • Accepts accountability.

    • Matches appearance to standards.

    • Is punctual.

    • Uses appropriate language.

    • Avoids gossip.

    • Keeps personal issues separate.