Problem Formulation And Identification

Problem Formulation and Identification

Organizations literally live and die by their ability to solve challenges that rise up on a continual basis. While many problems are simply remedied on the move, many can become complex and difficult to even define. Companies that do not properly define the issues they are dealing with can quickly find themselves applying patches to symptoms of much larger problems. Doctor's Medical Center, Dillard's Inc., Benton County Foods, and McLeod Insurance Agency are examples of companies within the Northwest Arkansas area that use systematic techniques in first defining what problem the organization is dealing with, then designing a solution for it. Each company is unique in its approach, but this disparity does not diminish the effectiveness once implemented.

Lou Gerstner, a former consultant and IBM chief said he "believes every decision is stronger when a group of people argue about it debate it, try to figure out how to make it better (Chapter 2 paragraph 31). The current decision making method utilized in Doctor's Medical Center, is the "Keep it Simple", or "Limited Search Error" process. The physician wanted input from all stakeholders, however, rather than taking the information into consideration in most cases she had a plan in her head and everybody knew what was gong to happen.

The limited search method is, simply put, staying within reach, never taking a chance, or going with the grain, so to speak. The office was set up on a tried and true foundation, "no need to do anything different if what you are doing is working," Doc said on many occasions, and never truly searched for an alternate because the method she always used was available. The operating procedures and the effectiveness of the office could have been extraordinary if Doc could have taken a step back off of the "status quo" mobile.

Chapter 2 mentions the benefits of "brainstorming:" involving the staff, creating more ideas, getting more people involved, and creating numerous options rather than a few comfortable prospects. In a busy Medical Office, there obviously were opportunities to implement the "Keep it Simple" method. On one occasion an employee's schedule did not reflect her leave request. The employee saw her name on the schedule and was told to find someone else to cover her shift. The employee tried but was unsuccessful. She did not come to work as scheduled, which created a shortage of nurses in the office that day. The following week the employee came to work as scheduled and Doc would not allow here to clock in until the staff met. At the meeting the office rules and regulation manual pertaining to leave and earning was read aloud. It was clear what had to be done, but everyone was feeling uneasy about the employee being terminated. Even though, Doc wanted to keep it simple, and contended that was why the rule and regulatory manual was designed.

Another factor (outside of the box) found by including the other employees was that the employee in question had a funeral to attend; having that information made the difference.

This example was one of the many that solidified Doc's standards of continuous improvement; she also realized that to improve her "keep it simple" method of decision making, the process was going to have to change. This change would be implemented gradually, while exploring other options.

The most prevalent thinking process in the Dillard's Inc. (Dillard's) company is creative thinking. The sales department of Dillard's has learned persuasive sales tactics, depending on different departments. The cosmetics sales associates have always been taught to sit a client down, not call them a customer, and pull a card which keeps their personal preferences. In recent activities concerning soliciting credit card applications, the management has used non-emotional tactics amongst the employees. For example, the employee is required to solicit a credit card once a week. If the employee is unsuccessful at soliciting a credit card during a 4 week period, the employee is required to attend a credit application "class" teaching employees how to solicit a Dillard's credit card successfully. One of the persuasions suggested in class was to offer a gift bag full of deluxe size samples in the cosmetic area.

The problem with soliciting credit card applications at Dillard's is most people have an existing Dillard's account or do not want another credit card bill. The persuasive thinking process to solicit a Dillard's account is to sell it as a rewards card where the customer can earn reward points. For example, when a customer holder opens an account or upgrades a regular Dillard's credit card to an American Express credit card they earn $20 in rewards. The strength of creative thinking on soliciting the credit card is giving employees incentives such as $5 for soliciting a credit card application or other times giving cash incentives during a competition. The weakness of soliciting a Dillard's credit card is having mandatory 7am meeting every month for the employees whom do not open credit card applications. The mandatory meeting creates a negative environment where turnover is starting to increase amongst the Dillard's employees.

Problem solving and decision making are two different things. Decision-making is followed by an action then preceded by problem solving. The decision-making process is not good in solving problems especially if the problem is not properly defined. Lack of information and knowledge can drag out a problem for a considerable time. Benton County Foods has run across a few problems with communication and decision making on the transfer of the company from one to another. With the new company, more responsibilities and tasks have been absorbed. Until