Leadership patterns in a decision-making environment

 Leadership patterns in a decision-making environment

(Emotional Management for Personal & Professional Growth Series)
 

In continuation of last week's discussion on how different types of managerial styles affect the people's capability in problem-solving and decision-making in the organization, let us understand some leadership patterns in creating a positive environment for problem-solving and decision-making.
 
Managers/Leaders create an environment by their functioning and style, which determines the organization's decision-making capability.
 
Let me summarise some of the patterns i have observed in many outstanding managers/leaders.
 

• Clarity on the problem and delegation level
• Communication and expectation setting on solving the problem
• Switching between micro  &  macro management of detailing 
• Space for risk-taking and  learning attitude to deal with risk and failure 

 
Clarity on the problem and delegation level :
 
Effective manager/ leader is good at developing clarity on what needs to be delegated and what must be solved by themselves. They create clarity based on the intensity of the problem and its impact, timeline pressure, and the team's competency level.

                                                            

 

 For example,
 
In a good case, in one of the organizations, a manager makes the decision every day on what needs to be produced and how much needs to be produced and just delegates the team to comply. He is not delegating the production planning. Since he is only aware of the big picture of change in customer preference, internal capacity, team's influence on each other, and the impact of the delayed decision on business deliverables, he makes decisions himself.No more complexity in the system on decision making.
 
Whereas in another case, one organization always runs with a crisis on the working capital issues, and the business head expects the production head and finance head to take decisions on priority. Since the impact of the decisions would affect the deliveries, the functional heads either delays the decision or are indecisive most of the time. The environment becomes chaotic as each one points out others for their problem-solving and decision-making speed and quality. The cause of the problem is over delegation of critical issues to inappropriate people and expecting fast decision-making and problem-solving.
 
In both cases, the underlying factor is getting clarity on which problem we need to delegate and setting the expectation on problem-solving and decision-making at the team's level. 

 
When we do not have the clarity to distinguish, as a manager/leader we create an environment with unrealistic expectations.
 
Some effective managers/ leaders are good at differentiating the problem, the impact of the problem, and the level of delegation by which they set the right environment for timely decision-making and problem-solving.
 
Let us discuss other leadership patterns next week. 
 

Have a great week ahead.

Managerial style Vs. Team's decision-making capability

 

  

One of the concerns most business heads/managers have is how to bring the problem-solving and decision-making capabilities among the team?

This genuine concern comes from the reality that they spend more time giving instructions/ decisions on many routine tasks as people approach them and also from the feeling that they could not devote time to significant problems or value addition where they can only do it.

The concern needs to approach from two aspects. One is on more profound education or awareness of the importance of problem-solving competency, methodologies, tools, and techniques. Learning to some extent helps the team to improve their problem-solving & decision-making abilities.

However, as a second aspect, to a large extent, it is the business head/manager’s managerial style that determines the organizational environment for the team to take the lead on problem-solving and decision-making in any situation.

Hence the first aspect can be more straightforward than the second aspect of relooking the manager’s style of getting things done.
 
For example, consider the type of managers/leaders we might have come across in the organization.
 
Category 1:

The type of managers/leaders who do not want to hear any problem or bad news and used to say to the team, “Don’t bring me the problem only, come with solutions.”Sometimes they spend time with the team to resolve the problem. They display both distant and friendly behavior towards problem-solving. Uncertainty in predicting the behavior.

In this environment, the team is likely reluctant to take the lead in solving the problem independently and clueless about the expectation of problem-solving and decision-making.
 
Category 2:

The type of managers/ leaders who enjoy solving the problem themselves. Their pride is in solving an issue of any kind and operating with the belief that their core responsibility is to solve the problem irrespective of assigning ownership. 

Likely, in this environment, the managers will resolve all the issues, and the team will be open enough to escalate the problem. They think problem-solving is all about escalation to the boss, and the scope for enhancing problem-solving and decision-making competency will be limited.
 
Category 3:

These managers/leaders believe in the larger goal, define the escalation process and ownership, good at delegating and empowering the team to make decisions. They pitch only when there is an escalation to their level and is also disciplined enough to make the people accountable for the task through clarity and periodic reviews.
Likely, in this environment, people are reasonably good at problem-solving and decision-making and enjoy learning more from the boss.
 
In all the categories, the managers/leaders have a good intention of getting things done, and no one will resemble the same type all the time; it will be a combination of all styles depending on the situation.  However, what category or style one demonstrates most of the time determines the team’s problem-solving and decision-making capability.
 
If the managers/ leaders are aware of their style, delegation, communication process, and change in style lead to change in the organizational environment for enhancing decision-making capabilities among the team.

We can talk about some of the strategies for each type of category next week.

Until then, you relate to your managerial style in most of the time and how good your team’s capability in problem-solving and decision-making.
 
Have a great week ahead.

Developing Action Plan skill

 Developing Action Plan skill 

(Emotional Management for Personal & Professional Growth Series)

On the topic of structured problem solving for chronic issues in the organization, we have discussed the importance of data, data analysis, getting into causes, and selling the ideas to others. In selling ideas to others, each manager must learn one critical skill: "making an action plan."

Action plan :

• An action plan is planning the action in terms of what, who, when, and sometimes explaining by how.
• The action plan is about articulating what needs to be done to solve the problem, who is supposed to be accountable for the action and when the action is to be completed.
• It is all about setting the direction for others to solve the problem

Making an action plan is nothing but the manager's conviction on the solution part.

 
One typical pattern i observe in many young managers is that they are good at data collection, analyzing the data, and identifying the causes, but stuck at converging on the solution part with conviction.
 
Why are we stuck in making the action plan stage? 
 
The simple reason is uncertainty about the future outcome, fear about the consequence of failure, and worry too much about others on rejection. That is natural for anyone, but one who overcomes it emerges as a  better manager/leader in their profession.
 
There are many techniques/formats available like 5W1H / 3W1H, which can be learned as knowhow.

However, the lack of courage is pulling us into making the consolidated action plan skill, which we can develop with awareness and by practice whenever the opportunity comes.
 
Benefits of developing the skill  :
 
When we improve the craft of making an action plan,

• our communication or articulation ability is increasing even in day-to-day conversations
• enhances our comprehensive skill  in any complex situation  
• Team perceive us as a leader as they need someone to guide them on things to be done

 
Hence, developing the skill of making an action plan is an art that can be developed by learning the techniques and practicing.
 

Have a great week ahead.

Overcoming fear of failure with REASONING

 

                                                       
 

On the subject of fear of failure in selling our ideas or solutions to others in a professional setup, we discussed the reason for fear and its impact. We listed the following approach to overcome the fear.

1. Redefine the failure
2. Imposing Logical / reasoning over emotions
3. Learning attitude
 
As we have discussed "Redefining the failure" last week, let us discuss the "Imposing Logical / reasoning over emotions" now.
 
As we are aware that fear is just a feeling or emotion and it does not have any logic or meaning in it, however, it has the power to control our actions.

One of the approaches experts suggests countering the feeling with reasoning. 

What is meant by reasoning?

It is the action of thinking about something logically, sensible way. The reasoning has more facts and logic.

For example, when you take some initiative in the organization, you may worry about the consequence of failure as it may affect you in terms of creditability, or you may lose time or money. During those moments, when you counter the feeling with logical thinking or questions, that is called reasoning.
 
The following logical thinking or questions will help to manage the emotions of fear.
 
How many times in the past have we failed in our new initiatives?
Even if it failed, what were the changes in the assumptions and in the environment made to fail?
What would worst happen if we fail again?
What are the options available to correct even if we fail?
What benefit would happen if we move ahead and succeed in the initiative?

So, countering emotions with logical thinking will help to overcome the fear to some extent...

The other approach is getting into action, fail and perceive the failure as a learning experience.

The point is that as professionals, we may encounter many situations to deal with emotion, and how we manage and move ahead differentiates us from others.

Have a great week ahead.

How to sell ideas with EXECUTION clarity?

 

We have been discussing the emotional aspects that prevent us from selling our idea or solutions to others. Last week, we discussed one approach to overcome the fear of rejection by bringing the business sense to any solutions. The next approach to overcome the rejection possibility is to provide clarity on the execution.
 
When will other people say "NO" to your idea or solutions despite realizing the business value? Only when they are uncertain about the execution because it is natural for every human being to avoid complexity or risk aversion.

If the solutions seem to be complex, anyone tries to delay the decision-making process by citing many practical reasons.
 
For example, if someone offers you advice to improve your skillset to enhance your professional growth. What would be your reaction? Even though you are aware of the importance of skill development, if you are not sure about the area in which you need to improve your skillsets, the method of developing a skillset, and affordability, you will not take the advice seriously. The reason is the lack of clarity on the execution. That is normal human behavior.

Likewise, in professional dealing, others will accept your solutions or idea only when they are sure about the execution plan in simple terms.
 
For example,

i witnessed in one of the organizations that the business head wanted the team to improve the product rejections by 50 % in a year. Everyone understood the importance of the initiative; however, the business head was not comfortable spending money due to a lack of clarity on the execution by his second-level reportees.

With many iterations, one of the senior managers presented the different approaches or paths the team was going to adopt to improve the quality with a timeline for each approach, say through supply chain improvements, awareness creation to the team, inhouse process improvements, design improvements, educating the customers on handling the product and so on. In each approach, he presented with clear timeline and challenges in each step and mitigation plan. By sensing the clarity of the execution plan, the business head approved the solution and funded it for implementation. The organization achieved what it had planned in less than a year.

The key to getting the acceptance of your proposal is giving clarity to anyone on how we are going to execute it. The clarity could be on the approach you adopt or the phasing/timeline plan and the risk mitigation plan during execution.

The more you provide clarity on the path, the more likely, you will get the success in selling your approach to anyone.

Breaking the complexity into simple, multiple steps and sequencing is the key to bringing clarity. The art of bringing clarity can be learned with practice.

Have a great week ahead.

Countermeasure Vs. Holistic Solution

 

As we have discussed the importance of data, finding a pattern, and converging to the root cause for solving chronic problems, the next step is proposing solutions.

In my observation, most managers are stuck in this step as proposing solutions calls for conviction on the outcome. Let us discuss the softer aspects of developing the conviction later.

The quality of solving the problem depends on the approach we take.

Generally, there are two approaches to proposing solutions.
 
1. Countermeasure approach
2. Holistic solution approach

Countermeasure approach :
 
When a problem arises, to counter the negative impact, we take some action that may be temporary or eliminate the problem.

For example, when we receive a customer complaint, we either do rework or segregation or replace defectives immediately to avoid further damage. That is a countermeasure that may solve the problem at that moment.

This approach calls for a quickly reacting mindset and belief in incremental or continuous improvement.
 
Holistic solution approach:
 
In the same customer complaint problem, we intend to solve the problem by looking at all the factors and trying to fix the problem from recurrence. The solutions could be from different perspectives and time-consuming. 
 
Both approaches have their pro and cons and which one we use most of the time determines the quality of problem-solving and our time management.
 
In the countermeasure approach, the intention is to avoid further damage, urge to react fast, and mostly the solutions come from authority..some time this works. In this method, there is a belief that when we do more countermeasures or improve incrementally, we may avoid the problem from recurrence.
 
Whereas the holistic solution approach calls for detailing the causes, going in-depth into all the factors causing the problem, and is time-consuming. The approach calls for a participative process from all the stakeholders, and likely the engagement will improve in the organization.

There is a different school of thought on quality management and lean management perspective . It suggests encouraging more incremental, countermeasure improvements as there is always scope for change in the ultimate solutions.
 
Most chronic problems, when we approach through a holistic solution approach, bring tremendous results and engagement among the team, as i witnessed in most of my client operations.
 
From an individual perspective, as a manager/leader, we need to do introspect where we spend time, whether on incremental, countermeasure, or holistic solutions approach, that will answer the quality of self and team management in the organization!
 
Let us discuss some insights on the holistic solutions approach next week.
 
Have a great week ahead!
 

A quick way to find the root cause

 

 

Having discussed the importance of data collection and finding a pattern for solving chronic problems in a professional environment, the next step is to fix the root cause by removing all the noises.
 
What is meant by root cause?

Among many causes that we assume contribute to the problem, only a few causes contribute to the problem significantly. That causes are called the root causes.
 
In quality management, we have been taught different tools and techniques to arrive at the root cause of the problem, like a tree diagram, why-why analysis, and cause-effect analysis. Those techniques, when we apply, eventually get into the likely root causes of the problem. However, it is a time-consuming process.

One thing i learned by working with many organizations on solving business or people-related problems is that ultimately we end up with either PEOPLE or PROCESS as the root cause for any problems.
 
Either people are unaware of the approach or do not adhere to the rules, or we have not yet defined the process. There is no other root cause than people or process,

We may argue that money, materials, and equipment may be contributing to the root cause. When we go deep beyond those causes, we only end up with either people or processes.

That is what i realized in many organizational problems.
 
For example, for the poor business results, the business head and their team used to point out lack of equipment capacity, lack of conducive business environment, lack of funds, etc., as the root causes of the problem.

When we work with them to improve the business performance, eventually, we all come to the realization that either we do not have business processes for solving capacity issues, handling the external environment and fund flow, or the people are not engaged or not aware of the business processes. That is the root cause, and when we fix it, we see a business improvement.
 
My personal experience and firm belief is that in all the technical or managerial or business problems, the root cause lies in either process or in people.
 
How this insight will help you for solving the problem?
 
As a manager or leader, you need not reinvent too much on finding the root cause for any chronic problem, just use the filter of people and process. You can quickly get into the root cause of the problem. This will save your time and effort.
 
Always look at the problem by fixing either the process or people, by that way, you are very close to the solution to the problem.
 

Have a great week ahead.

Developing data skill-finding a Pattern

 

As we have discussed in developing the data skills, the first step is to clarify what data we want; the second step is to look for patterns.
 
What is meant by pattern?

The pattern is something that is repetitive and follows a rule.
 
For example,

You are commuting from home to the office daily…If you plot your arrival data to the office, you can see some patterns like arriving in the office on time with a variation of + / - 5 min or some other patterns.
 
Likewise, if you consider your product variety and volume, you may observe a pattern that a specific product set contributes to high volume.
 
If you have many customers for your products/ service, you may observe a pattern that only a few customers contribute to sales growth, or you may find a pattern that a few customers give you troubles like non-payment on time, complaints, etc.

If you have many reporteees, you may observe a pattern that very few people are consistent in delivery and relationship, and others are mediocre and low performers.
 
The key insight we need to learn is that in any situation or in any set of data for a longer time duration, you can find a pattern…The pattern will never change until we make some improvements or disturbances to the situation.…

How will this insight help you?

•  You will realize that any complexity of a situation or data can be made simple if you find a pattern and take action on it.
• Finding a pattern in any situation or data will help you remove the noises or non-repetitive instances from the population, and you can progress towards the next step in solving the problem.

How can we develop the skill of finding data in any situation or data set?

By breaking the complex project or data set into multiple small  GROUPS, you can find a pattern. By practicing with many situations, you eventually get to see patterns in any complex case..Anyone can learn this skill...

Have a great week ahead.
 

The first step in developing Data skill

 

 

As we have discussed developing the data skill, one aspect is to avoid the tendency of bias toward your opinion on the data. The second aspect is to be aware of what you want from the data.

By nature, some data is registered in the system every second or every transaction.

For example, consider any equipment in your organization. Every second, it gives us data like the energy spent, cycle time, idleness for various reasons, and many such data.

Similarly, consider your product or service, or customer. Much data is being generated in every transaction like volume, value, complaints, quality or service feedback, etc. 

What do you want from those data? 

When you want to improve your data skill, the first step required is CLARITY on what you want to solve from the data. What data do you want from the pool of data mine, and how will it help solve the problem?
 
How will this clarity help you?

As a manager/leader, if you know what you want to solve or what information you want, you can design your FORMAT, TEMPLATE, or FILTER the unwanted data.
 
Today the problem is not on the data availability; As Managers/leaders, we need to learn to ask the right questions about the correct data required to solve the problem.
 
In one organization, i observed that the team spent resources like software and human resources to capture the plant data, organize and send the report to all. Still, the organization struggled to know the exact reason for delivery failure. The reason i found was that the leaders/managers were focusing more on technology on capturing the data and engaged in the data storage and retrieval process than on finding the right question on which data or insight they have to look for to solve the business delivery problems.
 
The point is that technology is an enabler, and it is the managers/ leaders who need to know how to use the technology to filter out the RIGHT data for solving the functional or business problem.

Clarity on what you want from the data pool or what data is essential from the gold mine will help improve the data skill of the practicing managers/leaders.

Have a great week ahead.
 

Developing Data Skill

 

Unlike crisis moments, all chronic problem-solving requires an essential ingredient: DATA.

In an organizational setup, the data is created in every transaction or moment, and the data is considered a hidden treasure or gold mine. The way the managers/ leaders access the correct data, refine it for decision-making makes a difference in their problem-solving capability. That is data skill.

Data skill is the ability to get the correct data and interpret and use the insight to make decisions.

Generally, most of us tend to either give immediate solutions based on the data or give our opinion about the data, which leads to a different direction. If you are at the influencing level, your opinion counts much, and the truth from the data will drift.


 
For example,
 
You have data that say that the "machine breakdown on an avg 3 hrs per day".
Here, the opinion could be "our machine is old, thereby we get this trouble," or "Maintenance service provider is not providing good service,"
 But, the truth could be that machine lubrications are not ensured at the right time or periodically.

Your opinion strongly drifts the data far away from the truth, and the data may not be helpful.
 
The data skill is how you collect RIGHT inputs, identify some of the noises, remove them, and finally get into the TRUTH. That is a skill every manager needs to learn for better problem solving and decision making.

In one of my client organizations, the delivery was not consistent, and when the team collected the data, they found some supply chain partners were not supplying on time. This is DATA as registered in the system.

The team shared the OPINION that the cash flow was the primary reason, as the firm could not pay to supply partners on time; in turn, they could not deliver the material on time.
 
Later, the team found the truth that there were planning and communication issues like forecasting, coordinating with supply partners and the cash flow was a relatively minor cause for the problem.

That is learning data skills for using the data, removing the noises, and reaching out to the truth. 
 
The point is how we collect the right inputs, filter out some of the noises, weigh down opinions, and get into the truth.It is essential in data analytics as a skill.
 
We need to introspect our bias towards data, opinion and truth in solving chronic problems or even in data to day interactions.

Let us discuss some more insights on data analytics and skill development next week.
 
Have a great week ahead!
 

Why should we define an Objective clearly before solving a problem?

 Why should we define an Objective clearly before solving a problem?  

(Emotional Management for Personal & Professional Growth Series)

As we discussed the insights in structured problem-solving methodology, first, we have discussed how the business managers can choose or prioritize the problem in the organization. The next step after selecting the problem is         " Defining the objectives clearly."

What is meant by Objective?

Objective means aim or goal or target or where our effort should go towards solving the problem.

For example," Reduce the customer complaint by 50%" is an objective, goal, or target.

Why should we define the Objective clearly?

First, it gives clarity to all what we intend to solve
Second, it sets the boundary condition or scope under which we are going to work 
Third, it improves the focus as we define the end and the scope clearly at the beginning.
 
Without a clear objective definition, the team may divert the focus in many sub-problems related to the main problem and go endlessly without achieving the goal.
 
For example,

As a business head, you set the goal to increase the business profitability by 25% in the next financial year.
 
To achieve this goal, you may have multiple options, and you can pursue all the possibilities. In the process, you may be chasing many options, achieving the goal, or failing to achieve it.
 
When you define your Objective clearly, like by specifying the result and the focus area, like
to increase profitability by 25 % by introducing new customers or new products, it sets sharp direction and clarity to you and the team on which path you want to pursue. By establishing a clear objective, you are certain to focus your energy on building new products or new customers, and most likely, you may achieve the result.

Likewise, instead of defining objectives like reducing rejection by 50 %, if you define clearly, like, reducing the supply base rejection by 50 % within three months timeline, you are giving more clarity and direction to the team, where they suppose to focus. Otherwise, the team can choose to work on supply rejections, inhouse manufacturing rejection, customer rejection, and so on…
 
The point is that articulating the objectives clearly helps to reduce ambiguity and improve the focus. 

Suppose managers and leaders learn to articulate the objectives with a clear target, timeline, scope, which will likely improve the team's effectiveness in solving the problems. Also, it helps them become better problem solvers in their careers.

Have a great week ahead!

How to prioritize problems?

 How to prioritize problems? 

(Emotional Management for Personal & Professional Growth Series)

                              

 As we discussed the steps in structured problem solving, in this series, let us discuss some of the insights in each step as this helps the Managers/ Leaders to get a perspective on the practical dilemma in problem-solving.
 
One of the challenges for most managers and business leaders is "How to prioritize the problems in the organization ?"

The question arises as there are many problems in the organization, and almost all work on one or other problems. Still, in the end, the quantum of the problem remains the same, or the organizational objectives are not met consistently. This scenario is most common in an organization where people are busy managing a day-to-day crisis.

Some leaders are good at prioritizing the problems, channeling all the resources in solving that problem, and finally making an impact on business, thereby creating a pleasant work environment.This competency is required for every leader and can be learned as well.

One method of prioritizing the problems in the organization is through  Impact Vs. Complexity.

Impact vs Complexity:

Impact means if the problem is resolved, it will improve business performance like delivery, revenue, customer retention, morale etc.

Complexity means the solution calls for many stakeholders or cross-functional teams and the problem arises due to a variety of reasons like people, equipment, money, communication issues etc. Generally, a day-to-day crisis management methodology cannot solve the complexity.



For example, 

As a leader, if you choose a "customer delivery problem" as a priority for solving through a structured approach, it will significantly impact the organization. The delivery problems also call for involving cross-functional stakeholders and addressing many areas.

when you choose the high impact vs high complexity problem and involve many stakeholders as part of the structured problem solving and delegate in submodules, eventually, the solutions will make the organization make a high impact on business performance and morale of the people.

alternatively, when we choose low impact and less or more complex problems, neither the organization will realize many benefits nor the problems deserve much attention from many .

As Managers / Leaders, we need to have clarity on where to focus for higher impact!

Have a great week ahead!

Steps in the structured problem-solving process

 Steps in the structured problem-solving process 

(Emotional Management for Personal & Professional Growth Series)

Having discussed the definition and type of problem (Adhoc or chronic) one needs to solve at the workplace, we need to learn the structured way of solving the chronic problems.

 
What is a structured way of solving chronic problems?
 
Unlike emergency or firefighting situations, all chronic problems can be solved step by step logical process. We are sure to move towards permanent or practical solutions to the problem in each step of the logical process.

What does it call for?

The structured approach calls for data analytical skills, the ability to look at the big picture and micro-detail, the ability to get the insight and narrow down to the causes, decision-making skills, and more than above the ability to get the collaboration from all the stakeholders to implement the solutions.

Since structured problem-solving competency is a combination of multi-skills, only a few people take effort to learn and become masters in applying the holistic approach.

Steps in a structured problem-solving approach?

Since there are many problem-solving processes available in the market like Six sigma, QC approach, A3,8D, all the approaches lead to solving the chronic problem in a structured way. The tools and formats may be different, and it is up to the individual to learn and master any approach.
 
Ultimately all the approaches consist of the following step.
 

• Prioritizing the problem
• Defining the objective
• Collecting the data/ facts
• Understanding the insights from data /removal of noises
• Converging to causes
• Articulating the actions -short / medium / long term perspective
• Taking action and checking the effectiveness

Developing a comprehensive understanding of the problem-solving process as a capability will enhance your managerial skill to get things done and career growth.

Let us discuss some of the insights in each step next week.

Have a great week ahead!

Which problem do we solve MORE?

 Which problem do we solve MORE?  

(Emotional Management for Personal & Professional Growth Series)
 

 

Having discussed the definition of a problem from a professional perspective, let us understand what types of problems need our attention MORE  in a professional environment.
 
There are two types of problems we always face in the workplace. One is Adhoc nature, which calls for quick fixing and the solutions are predominantly emotions-based with little logic. The solutions are not necessarily preventive.
 
The other problem is repetitive nature and looks like part of our life, and this problem needs to be fixed predominately with the logical conclusion. The solutions need to be preventive.
 
For example, at a personal level, when we get sudden health issues, we may not overthink it, and we use to take some pain relievers / any other pills and move on. Sometimes the solution also works well. This problem and solution are called Adhoc problem-solving. 

If the same health issue is repeated frequently, the same pain reliever/ pills may not work, and it may also bring other complications. This problem is called a chronic problem. These repeated health issues or chronic problems call for structured diagnostic and treatment, which is more logical, and the solution may be a permanent cure. That is a structured problem-solving process.
 
In the same way, in a workplace, when we relate to our day-to-day decision-making to solve problems, it could be either an ad-hoc problem or a chronic problem.

Which type of problems do we solve MORE in the workplace, ad-hoc or chronic?
 
In some organizations, as i  observed, people are always busy with delivery-related issues, which in my opinion, is a chronic problem. When the potential chronic problems are not solved structured, that will become day-to-day firefighting problems.
 
As a manager or leaders, our time and presence are required for solving chronic issues that need a more structured process of problem-solving, which calls for broader participation and decision making rather than spending most on ad-hoc problems. When we are growing on the career ladder, we suppose to solve more chronic issues than managing firefighting or ad-hoc issues.
 
We need to be aware of our decision-making activities on whether we are solving ad-hoc or chronic problems for most of our time.
 
To solve chronic problems, we need to be familiar with the structured problem-solving process and discuss it next week.

Have a great week ahead.

 

Understanding the term "problem."

 Understanding the term "problem." 

(Emotional Management for Personal & Professional Growth Series)
 

As we have been discussing problem-solving and decision making, before going into the problem-solving process and its insights, let us have clarity on what we mean by the term "problem" in the professional context.

The term " Problem " is interchangeably used to refer to challenges/issues/troubles/difficulties.

What do we mean by "problem" in a professional context?

We are desiring or expecting something, and the current reality is different...there is a gap between expectation and reality, and the gap is nothing but PROBLEM.

For example,

You want to earn "X " amount as salary, and you earn less than "X," there is a gap ..that is a problem to be solved.
You desire to grow your business by 30 % every year; in reality, you are growing only by 10 % every year..there is a gap between your desire and reality..that gap is a problem to be solved.

Likewise, you can look out any gap between the desired level and current actual status as a gap and consider it as a problem.

Why this term understanding/clarity is required?

When we have precise clarity on the definition of a problem from a professional or business perspective, it will help us narrow or define the solution objective quickly. Otherwise, we struggle to progress on the problem-solving approach.

For example,

one of the business heads mentioned that he has people problems in his organization. The people problem could be excess / scarcity of people or skill or behavioral or integrity related. When you express people's problems, that would be generic, and no progress will be on it.
Later on, when we clarified the definition, he articulated that his people are loyal and good; however, he expected the team to take independent decisions in his absence. In reality, the team does not make decisions without his guidance. That is a gap that makes it easy to move to the next step in problem-solving.

When you have clarity about your expectations on any aspects and relate to existing reality, you define the problem precisely as this will help move to the next level of the problem-solving step.

We need to articulate the problem or understand the problem from desirable / expectation vs. reality to get clarity.

Let us discuss some other aspects of the problem-solving process next week.

Have a great week ahead.

Problem Solving Vs. Decision making

 Problem Solving Vs. Decision making 

(Emotional Management for Personal & Professional Growth Series)

 

In the last few weeks, we have discussed some aspects of emotions that affect the quality of decisions. First, we need awareness about emotions. Second, we need to develop structured problem-solving capability, which to some extent, will help us not to get into the trap of emotional bias in decision making.
 
What is meant by problem-solving?

Problem-solving is an analytical process to solve the problem. It is more of a structured way of solving the issues.
 
The problem could be making decisions on the complex business problems like

Should i invest in a new business or not?
Which candidate i recruit, candidate A or Candidate B? 
How much inventory do I need to keep to manage the uncertainty?
How should I select the stock as there are plenty of options in the market?
 
In all the above examples, you have a choice to go ahead with impulsive, emotional decisions or you have an option to apply a structured problem-solving process. Both choices will have an impact on the quality of decisions.
 
Problem-solving is a process of understanding the facts, removing unnecessary noises in the data, looking for patterns or insights or root causes, making the right actions and implementing the actions, and looking for evidence of improvement.
 
Problem-solving vs. decision making
 
Problem-solving is a process, and decision-making is an outcome of problem-solving. Both are interrelated. 
 
If we couple analytical problem solving and decision making, there is a high chance that we are making the right decisions as it is a logical or rational approach than emotional.

Why is problem-solving capability important?
 
One of the prime responsibilities of a manager or leader is making impactful decisions at the right time. Quality of decision-making will improve only when they learn the art of solving the problem in a structured way, particularly for all chronic or complex business challenges.
The World economic forum lists problem-solving competency as one of the Top 5 competencies for the 21^st century. I remembered that the forum survey reported that professionals with problem-solving capability would have more demand and be paid high in the job market.
As i observed, many leaders in organizations who possess excellent problem-solving capabilities will run the organization more effectively than those who lack the same.

Problem-solving and decision-making are competencies each manager and leader to develop for professional growth.
 
Let us discuss the following insights in the next few weeks.
 
The process of problem solving and steps involved ; 
The myth of the problem-solving approach
The skillset required for problem-solving
Methods of developing the problem-solving competency as an individual and organization
 
Have a great week ahead.

Awareness of thinking traps in decision making

 Awareness of thinking traps in decision making 

(Emotional Management for Personal & Professional Growth Series)

As we have discussed the different types of thinking traps that affect our decision-making process, let us summarise the thinking traps and their influence on our decisions.

• Except for routine activities, most of us have decision dilemmas in all business decisions.

• We generally assume that we are logical thinkers and equipped with tools and techniques for decision-making. However, research says that despite all the resources on the rational decision-making process, we are unconsciously trapped into thinking bias which affects the quality of decision making, particularly in complex business decisions.

 
Some of the thinking traps we have discussed with examples are
 

• Giving excess weightage to the first information
• Maintaining the status quo even though it is not relevant now
• Seeking confirmation evidence for our initial thought from people who are favoring us
• Not clearly defining the problem itself
• Judgement trap either overconfidence or underestimating.

 
In every stage of the business decision-making process, we have more stakeholders, more assumptions, and inputs coming from different ends, leading to misperception. This bias influences our choices or decision-making quality.

Some of the above thinking traps can work in isolation, or they can work in combination.

For example, we give more weightage to the first information we receive, believe it true, and seek confirmation from the people in favor of our initial thinking. Then we take some decisions that will become status quo. We stick to it as our sunk cost mentality will not allow us to detach ourselves from our earlier decisions and finally get into the trap of living with the pain of our decision.

The only protection from the different thinking trap is AWARENESS.
 
Even though we cannot avoid the inputs/assumptions from different stakeholders, we can build tests and be disciplined enough in the decision-making process, which will help to get into the trap. That needs a step back and challenge our thought process while making decisions in important events.

More we take unbiased choices without a trap, our confidence improves.

It is easier said than done; however, it needs awareness and practice to take the unbiased, right decisions in a complex business environment.

Have a great week ahead.

Judgement Trap in the decision-making process

 Judgement Trap in the decision-making process 

(Emotional Management for Personal & Professional Growth Series)

 

As discussed, the thinking trap that affects decision-making quality, the last one is the "judgment trap."

What is judgement trap?

Most of us are good at predicting the outcome in routine activities like judging the distance, traveling time, some people's responses to particular queries, etc. We do it frequently and adjust our predictions based on experience and feedback.

However, business events are not easy to predict, and poor prediction will affect the quality of decision-making. For example, the commodity price next year and the sales projections for the next three months are all difficult to judge unless we do the judgements too frequently and get feedback to correct our predictions.

In those business decisions, we fall into the trap of overconfidence or underestimate or go by our past experience, which most of the time affects the quality of decision making. That is a judgment trap.

Most organizational growth challenges are not due to people's capability or resource issues. It is primarily due to underestimating the growth potential by the business leaders and not being prepared for it.

In the book "It happened in India," the author Kishore Biyani argued that we had underestimated the growth as a nation, which resulted in a lack of infrastructure. That is a judgement trap, either overestimate or underestimate.

How can we improve our judgement accuracy?
 

1. Expert suggests that instead of anchoring one figure, always go for high and low extreme projections and challenge the assumptions in each scenario, then arrive at some RANGE than sticking on to one fixed no. For example, when estimating the sales projection for next year, look for the ranges in the worst and best scenarios and improve the range instead of fixing one figure.
2. We subconsciously go by our memory or experience; it is better to share our judgment with the people who are not biased with the past. They may give better projections that can be considered.

 
Despite there being many forecasting techniques in the market, we are biased with our thinking of overestimation or underestimation or biased to memory which may affect the decision making.
 
We need to be aware of the trap when judging future projections or events.
 
Have a nice week ahead!