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Why Kepner Tregoe?

• Kepner-Tregoe Rational Process


Kepner-Tregoe Problem Solving and – When confronted with difficult problems,
important decisions, and the need for successful
Decision Making (PSDM) Process actions, you can't just make a “best guess” and
hope for a positive outcome.
Strategic Decision Making & Negotiation – Hunches, instinct, and pure intuition may
occasionally be inspiring, but they more often lead
MM5009
to unforeseen difficulties.

What is Kepner Tregoe PSDM?

• Step-by-step process that helps people rapidly


and accurately resolve a wide range of business
issues
• Provide a framework for problem solving and
decision making that can easily be integrated into
standard operating procedures
• Designed for all levels in the organization:
executives, managers, supervisors, team leaders,
operators, maintenance, engineers, technicians,
etc

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Four Distinct Processes in PSDM
• Is used to clarify issues, set priority and plan appropriate
Situation resolutions
Appraisal • When confusion is mounting, the correct approach is
unclear, or priorities overwhelm plans

• Is us to find the cause of a positive or negative deviations.


Problem Analysis • When people , machinary, systems or processes are not
performing as expected.

• Is used for making choices


Decision Analysis • When a choice is not clear, when there are too many
choices, or the risk of making the wrong choice great

Potential • Is used to protect plans and exceeds expectation.


Problem Analysis • When a task or project simply must go well

Kepner-Tregoe Problem Solving and PSDM Model


Decision Making Process
Problem Analysis
2. Analyze the problems
Avoid
Problem Jumping
Analysis to Cause

Decision Analysis
Sort out Balance
3. Generate and
Decision evaluate alternative
Priority Benefits
Analysis
Concern
Situational Appraisal
and Risks solutions
4. Propose and
Implement Solution
Situation Appraisal
Avoid
Potential
Problem Reactive
Potential
Analysis Action 1. Identify concerns or issue Problem Analysis
5. Analyze the outcome
6. Improve the process
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1. Situation Appraisal
(Situation Analysis)

A Management Team The Paradox


• Leader/Entrepreneur - aggressive, driven, • We need this diversity on a management team
quick to provide the necessary expertise to make
• Finance - analytically focused, thorough the organization successful.
• Sales - enthusiastic, sometimes impatient • BUT, with so many different mindsets, how
• R&D - balance between feasible and desirable can we coordinate their efforts in an effective
and efficient way.
• Production - reality driven

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The Solution Four Basic Patterns of Thinking
• We need simple, common, sensible guidelines  EVERY productive activity is related to one of four
and procedures expressed in commonly basic patterns of thinking.
understood language. (1) What is going on? - clarification
(2) Why did this happen? – cause and effect
– for gathering, sharing, and using information
(3) Which course of action should we take? - choice
– for solving problems
(4) What lies ahead? – looks into future
– for making decisions
– for protecting the organization’s future

The Four Basic Rational Processes The Four Basic Rational Processes
• Applying the four basic thinking patterns in an • Situation Appraisal
organizational setting leads to systematic – What is Going On?
procedures for using and sharing information • Breaks down complex into components
about organizational concerns. • Separates relevant from irrelevant
• Sets priorities and delegates responsibilities
• Known as the 4 basic rational processes, they
– Identifies
are universally applicable regardless of
• Problems to be solved
cultural setting or content.
• Decisions to be made
• Future events to be analyzed

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The Four Basic Rational Processes The Four Basic Rational Processes
• Problem Analysis • Decision Analysis
– Why Did This Happen? – Which Course of Action?
• Based on the cause-and-effect thinking pattern • Based on the choice-making thinking pattern
– Enables us to: – Methodical means to examine:
• identify, describe, analyze, and resolve • the purpose of the decision
• situation in which something has gone wrong without • the available options
explanation • the risks of each alternative
– Methodical means to extract relevant and useful
information about a situation

The Four Basic Rational Processes


• Potential Problem Analysis
– What Lies Ahead? Problem Solving /
• Based on the anticipating the future thinking pattern
– Methodical means to: Decision Making
• avoid possible negative consequences
• turn situations to our advantage
SITUATION APPRAISAL

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Evaluative Techniques of Situation
Where to Begin?
Appraisal
• Where to Begin
• How to recognize situations that require action • When faced with a situation, we may
• How to break apart overlapping and confusing issues experience confusion and uncertainty over
• How to set priorities where to begin.
• How to manage a number of simultaneous activities • We may struggle to recognize and break
efficiently apart actions that overlap and are required
to address the situation.

Where to Begin Stages of Situation Appraisal


• A manager who is skilled at the three basic rational
processes of PA, DA, and PPA is more efficient than
one who is not.
– These three rational processes are analytical in nature -
there purpose is to analyze and resolve
• But to be more effective, a manager must also be
skilled at another rational process: Situation
Appraisal (SA)
– SA is an evaluative technique leading to the proper
selection and use the analytical techniques

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Recognize Concerns Recognize Concerns
Four Activities Specific Questions
– Where are we not meeting standards?
• List current deviations, threats, and – What problems remain unsolved?
opportunities – What recommendations are we working on?
• Review progress against goals – What decisions need to be made?
• Look ahead for surprises – What major projects, systems, or plans are about
to be implemented?
• Search for improvement
– What bothers us about …..?

Separate and Clarify Specific


Separate and Clarify Concerns
Questions
• Most issues are more complex than they first – Do we think one action will resolve this?
appear – Do we agree on the reason for our concern?
• “It is unlikely that employing the separation – What evidence do we have that this is a concern?
step of Situation Appraisal will be a waste of – What do we mean by ….?
time.” – What is actually happening in this situation?
Anything else?
– What actions are suggested?

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Separate and Clarify
Setting Priority
Specific Questions
• Together, these questions get below the • A practical and systematic process for determining
surface dimensions of importance
– How much time urgency does it have to keep the concern
• They shift us from subjective opinion to from becoming difficult, expensive, or impossible to
verifiable information resolve – TIMING
• FACTS and DATA! – Will the concern get worst? What is the best estimate of its
probable growth? - TREND
– How serious is the current impact on people, safety, cost,
productivity, organization etc.? - IMPACT

Setting Priority Setting Priority


• Each dimension is evaluated based on 3 degrees of • Postpone any concern that ranks low in all
concern: three dimensions
– High (H)
– Medium (M)
• “Experienced managerial teams …. can usually
– Low (L) pick out the top five (concerns) in a relatively
short time.”
• Don’t be unnecessarily swayed by activities
you enjoy or activities from demanding
people.

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Plan for Resolution: Plan for Resolution:
Problem Analysis Decision Analysis
• Does the situation require explanation? • Does a choice have to be made?
• Is there a deviation from expected • Is there a dilemma around the best action to
performance? take?
• Is the cause of the deviation unknown? • Do objectives need to be set in order to
• Would knowing the cause help us to take undertake some activity?
more effective action?

Plan for Resolution:


Potential Problem Analysis
• Has a decision been made that has not been
implemented, and is it necessary to act now
to avoid possible future trouble?
• Does a plan need to be made to safeguard a
decision or future activity?
• Can we generate additional value by
implementing a plan or decision?

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You know it’s a really bad day when...
Determine Help Needed
1. It is necessary to get the dog off your leg now (High Priority). The trend is
getting worse because there are more and more lacerations (High
Priority) and the impact is that you can do nothing else until the dog is • Often responsibility for resolving concerns
off your leg (High Priority). The process is to decide how to get the dog
off your leg (DA). must be shared or assigned to others
2. Repairing the car can wait (Low Priority) and it is not getting worse (Low – Who needs to be involved for:
Priority), but if it is not repaired soon it could have impact on your job by
your not being able to visit clients (Moderate Priority). The problem is to • Information Approval
find out what is wrong with the car (PA). • Commitment Development
3. Putting out the fire receives high priority in all three categories. The • Implementation Creativity
problem is to decide (DA) how to do it: Get the hose or fire extinguisher; • Analysis Presentation
call the fire department; and/or make sure everyone is out of the house.

4. While the tornado looks somewhat close in the picture, it may be used
to represent a tornado in the area, and thus may only be a tornado
warning. So this hazard could merit Decision Analysis/Potential Problem
Analysis

Determine Help Needed


Summary
(continued)
• What needs to be done and when? • “Far too much time is wasted trying to make
• Who will do it? sense of concerns that are unactionable
• Who will document the process and the collections of concerns, each with its own
results? unique features and requirements.”
• Formal and informal use of SA can significantly
reduce this waste of time and energy.

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Thank You

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