6 Thinking Hats

INTRODUCTION

Six thinking hats is a system which is describes a tool for group discussion and individual thinking involving six coloured hats which are yellow hat, white hat, black hat, red hat, green hat and blue hat. It is a simple, effective parallel thinking process that helps people to be more productive, focused and mindfully involves. Six thinking hats help to balanced assessment of our ideas, problems and challenges that can see an overview of the questions that are typical for each of the six thinking hats.

SIX THINKING HATS

WHITE HAT

1. Definition of white hat

The white hat is about data and information. It is used to record information that is currently available and to identify further information that may be needed.  A decision making will be referred to facts related to the situation faced, excluding opinions and judgements. Some questions involve are “What information that we have? “, “What information do we need?” and “How are we going to get all of the information needed?”.

1. Point extracted from the hat

Point that can be derived based on facts about thoughts of purchasing our own shop is the economic situation. Economic conditions do give impact to all businesses and are unpredictable. Small businesses often feel the effect of faster economic changes.

1. Explanation on why economic situation influence decision making

We need to be smart on dealing with uncertain economic climate especially when it comes with the decision of owning a property. As an entrepreneur, these factor must be put on consideration before pursuing an implementation.

Good economy saves an opportunity of a business to grow. Stable cash flows in a country allow potential buyers to be prepared for ownership by saving up for deposits to reduce their debt levels. Rather than leasing, purchasing decision provide the benefit of any appreciation in the value of property. We can make any addition or renovation if we have the control of a property. When we are not sure that the facility that we will select now will serve our needs in the future, or our target market will be moved then buying would not be functional.

However, if the country’s economy is struggling, it will impact the ability to afford a property purchase. Debt will even worst the condition. At this level, we might be considering on leasing. Pros of leasing is an opportunity to spend money on marketing efforts and building up customer base. We will have predictable expenses. Unfortunately, leasing can end up costing more as a knowledgeable lessor will be aware of our potential profit to raise rental payment.

1. How economic situation will solve this problem

After a comparison is done and examination is made, we assumed that leasing is better than buying. Leasing might be expensive due to the rent hike. However, the initial cost is cheaper than the cost of owning a location. It takes a lot of time for the cost to increase in which our business is a lot more stable and all we have to do is work our way up to purchase our own shop. Economic situation brought financial resources into consideration before a decision can be put on.

RED HAT

1. Define the red hat

The red hat is focuses on feeling, intuition, and emotion. The red hat allows people to put forward feelings without any need to explain or justify them. By using this hat can help someone to express emotions and feelings and share fears, likes, dislikes, loves, and hates.

1. Point extracted from the hat

The point that can obtain from red hat is become full of enthusiasm and confident   in doing business when afford to buy our own shop without need to rent shop. By having our own shop, we will feel enthusiastic to run our business successfully.

1. Explanation on why feels full of enthusiastic influence decision making

By having our own store, the feeling of enthusiastic and confident in running the business will be increase and be more ambitious to become successful entrepreneur. Being more confident and enthusiastic in doing business can influence the decision making because becoming an entrepreneur, the confident level, self-esteem and spiritual is important to face the challenges, the hardship and problems that all entrepreneur might faces soon. In the business industry, inner self should be strong enough so that they do not feel down and easily give up if their business does not growth well. Thus, this point will influence the decision whether should buy our own shop or not.

1. How feels motivated will solve this problem

The feeling of enthusiastic and confident in doing the business when having our own store can solve the problem of buy own shop. The problem can be solved because red hat main objective is to seek intuitive answers to the problem at hand. By referring to our own feeling and intuition, the problem of buy own shop can be solved because when having our own store, its will encourage us to run the business successfully and become the successful entrepreneur.

YELLOW HAT

1. Definition of yellow hat

Yellow hat is focus for positive view of problems and solutions possibilities that allow us explore the benefits of the decision and the value in it.

1. Point extracted from the hat

Yellow hat allowed us to think positively and looking forward to the future. Usually, yellow hat focus on the benefits that will be get in future and the effective way how it will be work. In our situation, if we a buy a shop, it becomes our property or asset that is valuable to be used as our security.

1. Explanation on why having an asset influence decision making

Yellow hat thinking really influence us to make decision to buy our own shop. By buying our own shop, we will have our own asset which is useful and valuable thing for a person that can be use in the future or in emergency case. By buying a shop, we also do not have to pay for a rent and debt anymore.

1. How having an asset will solve this problem

By having our own asset, we are free from paying a monthly rent which can reduce our cost. So, it will save our cost and can be used for any other important things to our business. Asset also can be use in emergency case if there is any problem with our business in future for example facing bankruptcy. It is also important to have asset which is a physical asset because it can be inherit to our generation without the intervention of a third parties.

BLACK HATS

1. Definition of black hat

Using Black Hat's thinking, we can see the potential negative results of the decision. Look carefully and defend yourself. Try to see why it does not work. This is important because it highlights the weakness of the plan. It allows you to delete it, change it, or provide contingency plans against it. Black Hat's thinking helps make your plans "more difficult" and more resilient. This is one of the real benefits of this model, as many successful people can think positively that they often can’t see the problem first. This causes them not to be in trouble.