The Problem Solving Model 2-1

Summary

This 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

00:00

🛠️ 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.

05:02

🔍 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.

10:03

🧩 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.

15:03

📈 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.

Keywords

💡Business Ethics

Business Ethics refers to the application of ethical principles to business practices and decision-making. It involves evaluating what is right and wrong in the conduct of a business. In the video, the concept is introduced as a foundation for understanding how to manage ethically, focusing on the development of skills to become an 'inclusive manager' or 'warrior' who considers the impact on all business partners, including employees, customers, shareholders, and the environment.

💡Inclusive Manager

An Inclusive Manager is a term used in the video to describe a manager who adopts an ethical approach by considering the interests of all stakeholders involved in the business. This contrasts with an 'exclusive manager' or 'gladiator,' who might focus solely on winning at the expense of others. The video emphasizes the importance of being an inclusive manager to foster ethical management and positive outcomes for all partners in the business.

💡Problem Solving Model

The Problem Solving Model is a structured approach to addressing issues within a business. It is mentioned in the video as a sequential process applicable to various aspects of a company, including ethical management. The model involves applying learned principles to resolve issues successfully. The video discusses how this model is crucial for ethical decision-making, requiring a step-by-step approach to understand and solve business problems.

💡Thinking Outside the Box

Thinking Outside the Box is a concept that encourages creative and unconventional thinking to find solutions to problems. In the video, it is defined as thinking beyond the constraints that limit one's field of action. The video uses the analogy of moving the walls of a room to illustrate how managers can expand their thinking to consider new options and approaches, which is essential for ethical management and problem-solving.

💡Constraints

Constraints are limitations or restrictions that affect the range of possible actions or decisions in a business context. The video discusses how constraints such as budget, management directives, or the business environment can limit problem-solving. Understanding and navigating these constraints is part of thinking outside the box and is crucial for ethical managers to find innovative solutions.

💡Stakeholders

Stakeholders are individuals or groups who have an interest or are affected by the actions of a business. In the video, stakeholders are identified as key players in the problem-solving process. The video emphasizes the importance of understanding who the stakeholders are and how they are affected by the issue at hand, which is essential for making ethical decisions that consider the impact on all parties involved.

💡Facts vs. Opinions

The distinction between Facts and Opinions is highlighted in the video as a critical aspect of problem-solving and ethical decision-making. Facts are objective and verifiable pieces of information, while opinions are subjective and based on personal beliefs or feelings. The video stresses the importance of separating fact from opinion to make informed and ethical business decisions, as opinions can cloud judgment and lead to ineffective solutions.

💡Options

Options are the various potential solutions or courses of action that can be considered to address a problem. The video discusses how thinking outside the box can lead to the identification of new options that were not initially apparent. It is part of the problem-solving process where, after understanding the issue and stakeholders, managers explore different solutions to the problem.

💡Ethical Arguments

Ethical Arguments are the justifications based on moral principles and standards used to support a particular decision or course of action. In the video, ethical arguments are mentioned as a necessary component when presenting options to others. Managers must use the moral standards of their company's culture to solidify their arguments and ensure that the chosen option is ethically sound.

💡Moral Standards

Moral Standards are the principles or values that guide ethical behavior within a society or organization. The video suggests that these standards are used to support ethical arguments when choosing among options. The video also hints that these standards will be discussed further in subsequent content, indicating their importance in the ethical decision-making process.

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