Online Money Manager
Posts Tagged ‘economics’
A questioning aproach to credit
Questioning is a useful starting point for creative problem solving. Challenging the way that things are can lead to alternatives being generated. Although questioning alone may not provide breakthrough thinking, it is often an essential first step in breaking traditional thinking. In particular, it can help to question established logic, asking “Why?” as well as “Why not?”. Questioning the limits of existing processes, systems or technology can also stimulate creativity.
Identifying false assumptions is another valuable step. Accepting that good ideas come from anywhere. Ideas are no respecters of status or salary. It may be true that in certain industries senior people have the best ideas, and this is probably a reflection of their experience or confidence. However, excellent ideas can be found in unexpected places: junior members of staff, competitors, other industries or historical legend.
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!