The Problem Solving Model 2-1
Summary
TLDRThis module delves into business ethics, contrasting the inclusive 'warrior' manager with the exclusive 'gladiator'. It emphasizes the importance of ethical management and developing skills to solve ethical issues. The instructor introduces a problem-solving model applicable to various business aspects, stressing the sequential process of decision-making. The concept of 'thinking outside the box' is explored, encouraging managers to expand their constraints and consider new options. The module also discusses the necessity of correctly defining problems, identifying stakeholders, and distinguishing facts from opinions to make informed ethical decisions.
Takeaways
- 🧩 The concept of 'inclusive' versus 'exclusive' management is introduced, emphasizing the importance of being a 'warrior' who includes all stakeholders in ethical decision-making.
- 🌐 The 'partners' in business include employees, customers, shareholders, and the environment, which are all integral to ethical management.
- 🔍 Problem-solving in business ethics is a sequential process applicable across various company functions, requiring a structured approach to reasoning.
- 🤔 'Thinking outside the box' is defined as expanding the constraints to explore new solutions, moving beyond traditional limitations to find innovative answers.
- 💡 Constraints in business can be financial, managerial, or environmental, and understanding these can help in thinking creatively to overcome them.
- 📋 Defining the problem accurately is crucial; the Coca-Cola 'New Coke' example illustrates the consequences of misidentifying the issue.
- 👥 Identifying stakeholders and understanding how they are affected by an issue is essential for effective problem-solving.
- 🔑 Separating fact from opinion is vital for making informed business decisions, as opinions can cloud judgment and lead to poor outcomes.
- 🛠️ Once the issue and stakeholders are clear, the next step is to isolate key objective facts to form a solid foundation for decision-making.
- 📈 After establishing facts, the process involves creating options that address the issue, thinking expansively to include possibilities not initially considered.
- 🗣️ The final step is to choose and present an option supported by ethical arguments and moral standards that align with the company's culture.
Q & A
What is the concept of the 'warrior versus the gladiator' in ethical management?
-The 'warrior versus the gladiator' concept refers to the idea of being an inclusive versus an exclusive manager in ethical management. The 'warrior' represents an inclusive manager who works collaboratively with partners in business, while the 'gladiator' represents an exclusive manager who may focus on winning at all costs, potentially to the detriment of others.
Who are considered the 'partners' in a business according to the transcript?
-The 'partners' in a business, as mentioned in the transcript, include employees, customers, shareholders, and to some extent, the environment or the materials used to make the products.
What is the significance of the problem-solving model in ethical management?
-The problem-solving model is significant in ethical management because it provides a sequential process for decision-making that can be applied across various aspects of a company. It helps in addressing issues by applying learned principles to reach a successful resolution.
Why is 'thinking outside the box' important in business problem-solving?
-'Thinking outside the box' is important because it involves moving beyond the constraints of a situation to explore new possibilities. This can lead to innovative solutions that might not be apparent when considering only traditional approaches.
What does 'thinking outside the box' mean in the context of business?
-In the context of business, 'thinking outside the box' means thinking beyond the existing constraints or limitations (like budget, management directives, or the business environment) to find new and creative solutions to problems.
What was the issue Coca-Cola faced with its competition with Pepsi in the 1980s?
-Coca-Cola faced an issue where it consistently lost taste tests against Pepsi. The management concluded it was a flavor problem and introduced 'New Coke' to address it, which turned out to be a costly mistake.
Why is defining the problem correctly crucial in ethical management?
-Defining the problem correctly is crucial because it sets the direction for finding a solution. If the problem is misunderstood, the solution developed may not address the actual issue, leading to ineffective resolutions and potentially negative consequences.
What are the key stakeholders or partners in a business problem?
-The key stakeholders or partners in a business problem can include employees, customers, shareholders, and the environment. Understanding their involvement and how they are affected by the problem is essential for effective problem-solving.
How does understanding the stakeholders' impact help in problem-solving?
-Understanding the stakeholders' impact helps in problem-solving by identifying who is affected by the issue and how. This insight can guide the development of solutions that consider the well-being and interests of all parties involved.
What is the importance of isolating key facts from opinions in ethical decision-making?
-Isolating key facts from opinions is important in ethical decision-making because it ensures that decisions are based on observable and verifiable information rather than personal biases or emotions. This leads to more objective and fair decisions.
How does the process of thinking outside the box help in creating options for problem-solving?
-The process of thinking outside the box helps in creating options for problem-solving by expanding the range of possibilities beyond the initial constraints. This allows for the identification of innovative and potentially more effective solutions.
What is the final step in the problem-solving process as described in the transcript?
-The final step in the problem-solving process is to choose one of the developed options, solidify it with ethical arguments using the company's moral standards, and present it to the relevant group or decision-makers.
Outlines
🛠️ Introduction to Ethical Management and Problem Solving
The speaker introduces the second module on business ethics, emphasizing the concept of being an 'inclusive manager' or 'warrior' as opposed to an 'exclusive manager' or 'gladiator.' The focus is on developing skills to work with partners in business, which include employees, customers, shareholders, and the environment. The speaker outlines the importance of problem-solving in ethical management, suggesting that decision-making is a sequential process involving reasoning and understanding constraints. The concept of 'thinking outside the box' is introduced, explaining it as expanding the boundaries of constraints to explore new options for problem-solving.
🔍 Understanding the Issue and Stakeholders in Problem Solving
The speaker discusses the first step in problem-solving, which is understanding the issue at hand. Using the example of Coca-Cola's competition with Pepsi, the speaker illustrates the importance of correctly defining the problem before attempting to solve it. The speaker then moves on to discuss identifying stakeholders and understanding how they are affected by the issue, rather than just what actions they are taking. The example of pollution and its impact on health is used to emphasize the need to consider the effects on stakeholders.
🧩 Isolating Key Facts and Separating Fact from Opinion
The speaker continues with the third element of problem-solving, which is isolating key facts and distinguishing them from opinions. The importance of separating observable facts from emotional opinions is highlighted, as opinions can cloud decision-making. The speaker uses the example of drug pricing to show how opinions can differ based on individual perspectives, and how facts should guide business decisions. The speaker also sets the stage for discussing options and ethical arguments in the next session.
📈 Developing Options and Applying Moral Reasoning
The speaker concludes with the fourth and final steps in problem-solving: developing options and applying moral reasoning. The emphasis is on creating options that address the original issue and on choosing an option that can be supported by the company's moral standards. The speaker suggests that the next video will delve into moral standards and how they can be used to solidify ethical arguments for the chosen solution.
Mindmap
Keywords
💡Business Ethics
💡Inclusive Manager
💡Problem Solving Model
💡Thinking Outside the Box
💡Constraints
💡Stakeholders
💡Facts vs. Opinions
💡Options
💡Ethical Arguments
💡Moral Standards
Highlights
Introduction to the concept of inclusive versus exclusive management styles.
The importance of developing skills to become an 'ethical warrior' in business.
The definition of partners in business ethics, including employees, customers, shareholders, and the environment.
The sequential process of decision making in ethical management.
The concept of 'thinking outside the box' and its application in business problem-solving.
Defining constraints in business as limits to action, such as budget or management directives.
The idea of expanding the boundaries of constraints to think creatively.
The five sequential steps in problem-solving within the context of business ethics.
The critical first step of problem-solving: accurately defining the issue at hand.
The Coca-Cola 'New Coke' case study as an example of incorrect problem definition.
Understanding the stakeholders involved and how they are affected by the issue.
The necessity to differentiate between facts and opinions in ethical decision-making.
Identifying key objective facts to separate from subjective opinions.
Creating options for problem resolution by thinking outside the box.
The final step of choosing an option and presenting it with ethical arguments.
The upcoming discussion on moral standards within a company's culture.
Applying moral reasoning to the problem-solving process in business ethics.
Transcripts
hi class okay this is the second module
we've already talked a little bit about
a bit of a an introduction
to business ethics and i've tried to
present you
with the concept of the inclusive
manager
versus the exclusive manager or
the warrior versus the gladiator concept
so you understand that in ethical
management
we are trying to develop our skills in
the area
of becoming warriors and inclusive
of what i've been calling the partners
in our business
so just by way of a review those
partners are
the employees the customers
shareholders and of course
to some extent the environment or the
materials that you're using to make the
product
that you're making so with that
introduction
we're kind of let it ready now to enter
some of the basic skills that we're
going to need in order to be able
to to work and to solve
issues in that business ethics
so first of all let's just take a look
at what's the uh
the problem solving model you have to
understand
this model is first of all applicable to
any um aspect of a company whether it's
finance marketing production or in this
case
ethical management so
decision making needs to be
and is a sequential process
which means that you apply
different principles that you've been
learning
along the way to the solution and the
successful resolution
of the issue or the problem that you're
dealing with
so therefore we can say that being an
ethical manager
really becomes a process
of reasoning
let me give you an idea of what i mean
we've all heard
of the idea of thinking
outside the box and everybody wants to
be able
to think outside the box
but nobody knows what it means usually
when i ask that question
in a live class
[Music]
people will have a lot of trouble coming
up with what a definition
of thinking outside the box means they
know that it's a highly desirable
quality they know that it's a good thing
they just don't know what it is and it's
kind of difficult
to acquire the quality or the capability
of thinking outside the box
if you don't even know what the term
means so let me try to give you
uh an introductory definition
as to what that term means in any
situation that you will be confronted
with
in the business world regardless of the
discipline that you'll be applying
you're going to be confronted with
a series of constraints
that you understand limit your field of
action
a constraint can be a budget a
constraint can be
management directives a constraint
can be the business
environment that you're in the political
environment
so you can see there are many different
constraints
in the problem in in any problem that
you're confronted with
when we talk about thinking outside the
box
we are therefore talking about thinking
that
is outside of those constraints
so if you imagine those constraints
to be the walls of a room
essentially what you're doing is you're
moving the walls
further away either on all four sides or
on two of the sides
and you have to understand what are the
parameters of the movement
that i can make so for example if you
have an issue
of budget so the traditional
source of where the funding will come
from to accomplish the goal that you may
have
may not be accessible to you perhaps
there are other sources of funding
that will be accessible to you
i'm not talking necessarily about a bank
loan but perhaps you could be
in a situation where you're trying to
deal with a pollution
issue and
the company doesn't have the money but
but you can perhaps get the city that
you're in to help fund
the uh the improvements
that you do
so that's just an idea of how you can
sort of move the boundaries
around and try to
accomplish the goals that you want so
when we talk about thinking outside the
box
we are talking about moving the
boundaries as they currently exist
in a reasonable way a little bigger and
a little wider
so that you therefore end up essentially
with a whole series of
additional options
uh so that's that's the beginning of of
of the idea of how you solve a problem
now
there are essentially five sequential
steps
that you will need to understand
terms of solving a problem and you'll be
able to apply that
to the the midterm work that we're going
to be doing
as well as the final case that you're
going to be doing
the first thing you've got to be able to
do
is understand what
is the issue what's the problem here
and that may seem like a very simple
solution
or a very simple thing rather to to
accomplish
but let me give you a little story which
is a marketing story but it highlights
the the importance of defining the
problem
coca-cola had an issue
with um
its competition with pepsi this goes
back to the 1980s
the difficulty they had was that every
taste test
against pepsi pepsi one and coke lost
so they were filling a tremendous amount
of pressure
the conclusion of coca-cola management
at that time was that it was a flavor
problem and that if they could alter the
flavor
of coca-cola they would then be able to
win
all of the um taste tests
and once that happened that would again
re-reassert their dominance
in the soft drink market
and that's what they did they went about
redeveloping the formula
and they introduced a product called the
new coke
which was an immediate disaster
and cost them about 300
million dollars in the 1980s in lost
revenue and about six or seven points
in declining market share
so clearly the problem is they saw it
which was one of taste ended up to be
something different but since they
hadn't defined the problem
correctly they ended up developing a
solution that was also
ineffective and that's why at the
beginning of the process defining the
problem
is so critical
and so when we come to the field of
ethics it's
similarly the same thing when we're
talking about
the life of a person for example if
that's what the challenge is let's say
it's a pollution issue
and instead we choose to call it whether
we should pollute using this system
or pollute using another system we've
kind of got the problem definition
incorrect and therefore no matter what
we do to solve it
we're going to not end up resolving the
ethical issue that's involved
the second thing to understand in
problem solving is um
who the players are in the game who are
the stakeholders
or the partners as you may call them
that are involved in the game and how
are they
affected not what are they doing
but how are they affected so for example
if one of the
stakeholders in the in the problem
is you and there is
possibly the chance that you may have to
blow the whistle
and reveal the unethical behavior to a
wider audience
you are obviously going to be affected
by the fact that you might lose your job
similarly if again if it's an issue with
pollution
the people who are being exposed to the
toxic
gas or waste or whatever it is
that you're polluting with they can
become sick
that's how they're affected not the fact
that they live in the neighborhood
not the fact that they're doing uh or
that they are polluting if it's the
if it's the management so you have to be
able to
ascertain not only who are the
stakeholders the key primary stakeholder
stakeholders
but also how they are affected
the third element in the development of
the problem
now that we know the issue and we
understand the
stakeholders is of course to
isolate what the key facts
are in this particular situation
so who is doing what to whom
and what is the impact of that activity
and you may have four or five different
facts that that you have there
now what is really important is for you
to be able to separate
fact from opinion
um that is extremely critical
in terms of making business decisions
because opinion
more times than not reflects
the emotional connection that you may
have with a particular issue
for example you may feel that it's
unethical to raise the price
of certain drugs beyond a certain level
because you feel there will be people
who don't have the ability to pay for
the drugs at that higher
cost level and you and you're 100
correct
however that's your opinion
that's your feeling another person can
be sitting in the room and say
that's great you don't want to raise the
prices
but we're a corporation that has to
produce profits
and we have to fund let's say it's for a
drug
so we have to fund the research in order
to create these drugs
and we need the higher price in order to
be able to
um accomplish the goal of
keeping this organization ongoing
and you're pretty well shot out of the
water right then
and there so it's very important that
when you're looking at the facts
and we'll talk about this a little later
in the next session
that you uh keep the facts
to those things that are observable
and as i said we'll talk about that a
little bit later
once we have established these three
things
what are the facts what is the issue
sorry
who are the stakeholders who's playing
in the game and how are they
in the game and what are the
keys subjective
facts sorry objective facts
in the case now we're ready to do the
last two functions
the fourth function is to
determine what are my options now when
i'm thinking outside the box
if i've moved the walls a little bit i
now have the ability to see
new options that i may not have seen
before
so creating the options that will
resolve
the original issue that i spoke about
so if my issue as i gave you the story
with coca-cola was the tase test
then they came up with the right
solution
they decided to change the formula and
affect the taste
so that matched the issue
with the with the eventual resolution
and it was certainly one of the options
they had
so coming up with the options are
dependent
on how you identified the original issue
finally once you have come up with a
number of options you're going to have
to choose one of those
options and then you're going to have to
present those
options to some other group it could be
your peers
it could be a management group it could
be the bank if you need funding
it could be any number of places that
you have to
present that information
and and so in order to present it
you have to solidify
the option with ethical arguments
and you use the moral standards
that are a part of the culture of your
company
in order to solidify those arguments
and again we'll talk about the moral
standards
in my next video but for now
whatever option you're going to choose
you will have to find amongst the small
list of
moral standards that i'm going to give
you moral standards that
strongly support the option that
you're choosing um
once we've done that and we have
our options we have a strategy that we
have chosen that we want to follow
we know the issues we know the
stakeholders and we know what the facts
are
now we're ready to apply that moral
reasoning process
and put that whole package together and
we are going to talk about that
in the next video
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