Online Money Manager

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It is often said that in many organisations, too much attention is paid to norms, rules, procedures and precedents and not enough to creative thinking. However, many of the problems that organisations face today cannot be solved without a creative approach. Some of the most popular and effective approaches are described below.

Vertical and lateral thinking. Creativity can be divided into left-brain activities, those that are logical and analytical, and right-brain activities, those that are creative and integrative. A systematic approach to creativity is provided by Edward de Bono, who distinguished between vertical thinking, bounded by logic and linear thinking, and lateral thinking, which cuts across normal boundaries and processes. He claims that where traditional techniques are inadequate for solving problems, lateral thinking will generate new ideas and approaches that provide the answer. Lateral thinking combines ideas and concepts that have not previously been brought together. It removes assumptions, typically by asking “What if?” questions.

These steps are common to all forms of problem solving, but there are many ways to complete them. Some problems may require ingenious solutions that can only be arrived at by the careful adoption of such different techniques as ratio analysis and brainstorming. It is therefore necessary to differentiate between two types of problem: programmed and non-programmed.

Programmed problems are usually those that occur as a routine part of a manager’s job. Even when they are complex, requiring careful deliberation, the solutions are often found by following organisational precedent and procedures. Examples include machine breakdown, salary and staff dilemmas, and budget issues. Linear programming, queuing theory and decision-tree techniques are methods that can be used to deal with such problems.

Non-programmed problems are those for which there is no single system or procedure for determining the right course of action. They may involve anything from new-product development to the shape of a marketing campaign, and they are usually of fundamental importance to the success of particular product lines, even an organisation itself. The most common but not always the most effective technique for solving non-programmed problems is creative roblem solving, including brainstorming. Other useful techniques include cause and effect analysis and Pareto analysis.