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Techniques for creative credit problem solving
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.
Cause and effect credit analysis
Cause and effect analysis. When treating a patient, a doctor observes the symptoms to decide what the problem is. Similarly, in cause and effect analysis, one first determines the effects of the problem in order to work out what the actual problem is and deal with it. To do this, it helps to take the following steps.
Label the problem. Express its effects in detail so that others can also identify what it is. Labels should endeavour to connect effects to possible causes. For example, if the effect is a 10% increase in late deliveries of goods in the last month, then connect this to all the causes of this problem, such as people, poor transport, inefficient order systems, limited product availability, or whatever.
Identify the root causes of the problem. The most common are likely to be people, materials and equipment. For example, if late product delivery is because of poor communication, then communications systems or bureaucracy might be the root cause.
A flow diagram of work processes can help to illustrate the relationship between problems, their effects and their causes.
Collect data on the causes of the problem. Asking the staff involved for their opinions should help pin down the cause or causes, which can then be dealt with.
Welcome! My name is Eve Santori. I professionally deal with money management for almost 15 years now and this blog was created to share some of my knowledge with your. After graduation from Stanford University I learned a lot about thing that ordinary people find confusing and frightening, such as loans, mortgage or debt. I shared that experience in two books that I've published, but I also decided to offer the same information on my blog. So, there it is!