Chapter 3Chapter 3

Problem SolvingProblem Solving

Why Care About Problem Solving?Why Care About Problem Solving? Organizational members are increasingly being evaluated on Organizational members are increasingly being evaluated on

their problem-solving ability. So, decisions may affect your their problem-solving ability. So, decisions may affect your career, rewards, and satisfaction.career, rewards, and satisfaction.

The quality and acceptability of your decisions will affect how The quality and acceptability of your decisions will affect how well you perform and the degree of your satisfaction with well you perform and the degree of your satisfaction with work.work.

Solving problems takes considerable time and effort and is Solving problems takes considerable time and effort and is often uncomfortable. It makes sense to try to do well on often uncomfortable. It makes sense to try to do well on something on which you will spend so much time and psychic something on which you will spend so much time and psychic energy.energy.

Activities in organizations are generally the results of Activities in organizations are generally the results of decisions. By examining how decisions are made, you may decisions. By examining how decisions are made, you may better understand how organizations work.better understand how organizations work.

The Problem Solving Process (Figure 3-The Problem Solving Process (Figure 3-1)1)

Define theProblem

InformationGathering

IdentifyAlternativeSolutions

Evaluateand Choose

anAlternative

Implementthe

Decision

Monitorand Control

DecisionOutcomes

Guidelines for Problem DefinitionGuidelines for Problem Definition State the problem explicitly. Even ‘obvious’ problems are State the problem explicitly. Even ‘obvious’ problems are

seen differently by different people or not seen at all.seen differently by different people or not seen at all. Specify the standard(s) violated. These may be personal, Specify the standard(s) violated. These may be personal,

group, organizational, or even societal standards.group, organizational, or even societal standards. State the problem in specific behavioral terms, rather than State the problem in specific behavioral terms, rather than

with broad generalizations.with broad generalizations. Specify whose problem it is; that is, who “owns” the Specify whose problem it is; that is, who “owns” the

problem?problem? Avoid stating the problem as a preferred solution.Avoid stating the problem as a preferred solution. Avoid stating the problem as a dilemma.Avoid stating the problem as a dilemma.

Identify Alternative SolutionsIdentify Alternative Solutions

Alternatives are the various approaches that Alternatives are the various approaches that may be taken to solving the problem; good may be taken to solving the problem; good solutions require good alternatives.solutions require good alternatives.

In their rush to judgment, problem solvers In their rush to judgment, problem solvers often slight the alternative-generation stage.often slight the alternative-generation stage.

At this stage, At this stage, divergent thinkingdivergent thinking is needed. is needed. That is, problem solvers must stretch their That is, problem solvers must stretch their

minds, seeking new possibilities.minds, seeking new possibilities. Creativity is especially important at this Creativity is especially important at this

stage.stage.

Evaluate and Choose an Evaluate and Choose an AlternativeAlternative

Once alternatives are thoroughly generated, they Once alternatives are thoroughly generated, they can be evaluated and a choice can be made.can be evaluated and a choice can be made.

This stage requires This stage requires convergent thinkingconvergent thinking, a , a narrowing in on a solution.narrowing in on a solution.

There are two general approaches to evaluation and There are two general approaches to evaluation and choice:choice: With With screening approachesscreening approaches, each alternative is , each alternative is

identified as satisfactory or unsatisfactory and identified as satisfactory or unsatisfactory and unsatisfactory alternatives are screened out.unsatisfactory alternatives are screened out.

Scoring approachesScoring approaches assign a total score to each assign a total score to each alternative and the alternative with the best score is alternative and the alternative with the best score is chosen. chosen.

Screening Table (Figure 3-2)Screening Table (Figure 3-2)

AttributesAttributes

AlternativesAlternatives Mega-Pixels Price ($)

Included

Memory

OpticalZoom

Olympus Camedia E-10 4.14.1 11001100 3232 4X4X

Fujifilm Fine Pix 601 Zoom

3.03.0 550550 1616 3X3X

HP Photosmart 850 4.04.0 500500 1616 8X8X

ConstraintsConstraints > 2.0 <800 >8 ≥3X

Screening ApproachesScreening Approaches

Once a screening table is developed, it can easily Once a screening table is developed, it can easily be used to make a choice.be used to make a choice.

Elimination by aspectsElimination by aspects screens out those screens out those alternatives not satisfying the constraint for the alternatives not satisfying the constraint for the most important attribute, then screens out those most important attribute, then screens out those not satisfying the constraint for the next most not satisfying the constraint for the next most important attribute, and so on, until only one important attribute, and so on, until only one alternative remains or no attributes are left.alternative remains or no attributes are left.

SatisficingSatisficing checks the alternatives against the checks the alternatives against the constraints, one alternative at a time, until an constraints, one alternative at a time, until an alternative is found that satisfies all constraints.alternative is found that satisfies all constraints.

Scoring ApproachesScoring Approaches

Scoring approachesScoring approaches assign a total score to assign a total score to each alternative. Then, the alternative with each alternative. Then, the alternative with the best score can be chosen.the best score can be chosen.

Attributes are given Attributes are given weightsweights according to according to their relative importance.their relative importance.

Attribute levels are assigned Attribute levels are assigned utilitiesutilities -- from -- from 100 for the best level to 0 for the worst level 100 for the best level to 0 for the worst level -- according to their relative levels of -- according to their relative levels of satisfactoriness. satisfactoriness.

Scoring Approaches (Continued)Scoring Approaches (Continued)

Overall utility for an alternative is determined as Overall utility for an alternative is determined as follows:follows:

UUii = = j=1 j=1 (W(Wj j x Ux Uijij))

nn

Where:Where:

UUi i is the overall utility, or satisfactoriness, of is the overall utility, or satisfactoriness, of

alternative Ialternative I

WWj j is the relative weight given to alternative jis the relative weight given to alternative j

UUijij is the utility, or satisfactoriness, of alternative I is the utility, or satisfactoriness, of alternative I on attribute Jon attribute J

Implement the DecisionImplement the Decision The first three stages of the problem-solving process The first three stages of the problem-solving process

are called are called decision makingdecision making.. Some people make the mistake of assuming the Some people make the mistake of assuming the

problem-solving process is over once they have problem-solving process is over once they have completed these stages.completed these stages.

Decisions do not implement themselves. Necessary Decisions do not implement themselves. Necessary resources must be available for implementation, and resources must be available for implementation, and those who will be involved in implementation must those who will be involved in implementation must fully understand and accept the solution.fully understand and accept the solution.

A fundamental question at this stage is how long to A fundamental question at this stage is how long to persist in trying to successfully implement the persist in trying to successfully implement the decision.decision.

Focus on Management: Escalation Focus on Management: Escalation of Commitment in the NBAof Commitment in the NBA

In one interesting study, new players in the In one interesting study, new players in the National Basketball Association were National Basketball Association were examined.examined.

The research found that players for whom the The research found that players for whom the initial investment was greater, as measured by initial investment was greater, as measured by their higher draft position, had more playing their higher draft position, had more playing time and longer NBA careers, independent of time and longer NBA careers, independent of their performance.their performance.

The NBA draft is highly visible, and team The NBA draft is highly visible, and team managers may have expected criticism if they managers may have expected criticism if they failed to field their expensive players.failed to field their expensive players.

As such, they gave their higher draft choices As such, they gave their higher draft choices more playing time, even when their more playing time, even when their performance didn’t justify it.performance didn’t justify it.

Guidelines for Minimizing the Guidelines for Minimizing the Dangers of Escalation of Dangers of Escalation of

CommitmentCommitment Create “stopping rules” prior to launching a project.Create “stopping rules” prior to launching a project. Specify objective criteria for evaluating the status of Specify objective criteria for evaluating the status of

a project.a project. Actively gather information on project performance, Actively gather information on project performance,

and accept warning signals when they occur.and accept warning signals when they occur. Make it clear that “pulling the plug” is a viable option, Make it clear that “pulling the plug” is a viable option,

and don’t be afraid to follow through when needed.and don’t be afraid to follow through when needed. Be wary of penalizing managers if their projects fail.Be wary of penalizing managers if their projects fail. Seek objective views on project status, such as from Seek objective views on project status, such as from

external auditors.external auditors.

Monitor and Control Decision Monitor and Control Decision OutcomesOutcomes

The final step in the problem-solving process is to The final step in the problem-solving process is to monitor decision outcomes and take necessary monitor decision outcomes and take necessary corrective action.corrective action.

If decision control is to be effective, steps must be If decision control is to be effective, steps must be taken to ensure that necessary information is taken to ensure that necessary information is gathered.gathered.

Also, contingency plans are needed. Also, contingency plans are needed. Contingency planningContingency planning is the process of is the process of developing alternative courses of action that can developing alternative courses of action that can be followed if a decision, perhaps because of be followed if a decision, perhaps because of unexpected events, does not turn out well.unexpected events, does not turn out well.

Focus on Management:Focus on Management:The Roar of the CrowdThe Roar of the Crowd

Bill Walsh, formerly the offensive coordinator of Bill Walsh, formerly the offensive coordinator of the Cincinnati Bengals football team, recalls a the Cincinnati Bengals football team, recalls a close game where the Bengals trailed the Oakland close game where the Bengals trailed the Oakland Raiders 31-28 with three minutes left in a playoff Raiders 31-28 with three minutes left in a playoff game at Oakland.game at Oakland.

The Bengals had the ball but crowd noise and a The Bengals had the ball but crowd noise and a malfunctioning phone Walsh used to communicate malfunctioning phone Walsh used to communicate with his spotter in the press box caused with his spotter in the press box caused coordination to break down and the Bengals lost.coordination to break down and the Bengals lost.

Walsh says the event taught him the importance Walsh says the event taught him the importance of contingency planning. We wrote, “We lost the of contingency planning. We wrote, “We lost the game, and I decided that I would never again be game, and I decided that I would never again be confronted by circumstances I hadn’t prepared confronted by circumstances I hadn’t prepared for, no matter how unlikely.”for, no matter how unlikely.”

The PDCA CycleThe PDCA Cycle(Figure 3-3)(Figure 3-3)

Plan:• Define purposes and goals• Develop theory• Define measures of success• Plan activities

Do:• Undertake activities• Introduce interventions• Apply best knowledge in pursuit of desired purpose and goals

Check:• Monitor outcomes• Study results for signs of progress or unexpected outcomes• Search for new lessons to learn and new problems to solve

Act:• Integrate lessons learned• Reformulate theory• Adjust methods• Learn more about what needs to be learned

Influences on Problem SolvingInfluences on Problem Solving In an ideal world:In an ideal world:

the decision maker would have all the information the decision maker would have all the information needed -- and no more -- when it was needed and in needed -- and no more -- when it was needed and in the desired form.the desired form.

the perceptual processes would select and process the the perceptual processes would select and process the information in an unbiased way.information in an unbiased way.

the cognitive processes would quickly, accurately, and the cognitive processes would quickly, accurately, and objectively evaluate the information and arrive at an objectively evaluate the information and arrive at an optimal choice.optimal choice.

Subsequent evaluation of consequences would be Subsequent evaluation of consequences would be unbiased and storage would be efficient.unbiased and storage would be efficient.

The “real-world” situation is far from this ideal The “real-world” situation is far from this ideal scenario.scenario.

Factors Influencing Decision Factors Influencing Decision MakingMaking

(Figure 3-4)(Figure 3-4)

InformationInputs

Evaluation ofConsequences

StoredInformation

PerceptualProcesses

CognitiveProcesses

DECISION

DecisionOutcomes

Time and CostConstraints

OrganizationalInfluences

GroupInfluences

Stress

Information InputsInformation Inputs People must often act on the basis of less-than-People must often act on the basis of less-than-

perfect information.perfect information. It may be incomplete, late, or in the wrong It may be incomplete, late, or in the wrong

form.form. There may be too much of it, and it may simply There may be too much of it, and it may simply

be wrong.be wrong. One reason information may be imperfect is One reason information may be imperfect is

that there may be too little time to carry out a that there may be too little time to carry out a full information search.full information search.

Rapidly changing, complex situations make it Rapidly changing, complex situations make it especially difficult to get good information.especially difficult to get good information.

Some sorts of problem solvers -- including those Some sorts of problem solvers -- including those who are young, risk takers, or dogmatic -- act who are young, risk takers, or dogmatic -- act on the basis of relatively little information. on the basis of relatively little information.

Perceptual ProcessesPerceptual Processes Our perceptual processes can result in distortions.Our perceptual processes can result in distortions. For instance:For instance:

we perceive what we’re expecting to perceivewe perceive what we’re expecting to perceive our perceptual selection is influenced by needs our perceptual selection is influenced by needs

and personality factors and many things about and personality factors and many things about the nature of the object being perceivedthe nature of the object being perceived

when we interpret information, we are subject when we interpret information, we are subject to stereotyping, halo error, projection, to stereotyping, halo error, projection, perceptual defense, and a host of other perceptual defense, and a host of other troublesome influencestroublesome influences

Cognitive ProcessesCognitive Processes

We have very limited short-term memories, with a We have very limited short-term memories, with a capacity for only a few pieces of information.capacity for only a few pieces of information.

We are basically serial-information processors, and We are basically serial-information processors, and as a result process information relatively slowly.as a result process information relatively slowly.

We have limited computational ability.We have limited computational ability. Unlike a computer, we care about the outcomes of Unlike a computer, we care about the outcomes of

our decisions, and have doubts about whether our our decisions, and have doubts about whether our decisions are correct.decisions are correct.

We evaluate information differently depending on We evaluate information differently depending on how it is presented to us (or “framed”).how it is presented to us (or “framed”).

Focus on Management: Deep BlueFocus on Management: Deep Blue There is an ongoing debate and controversy There is an ongoing debate and controversy

over whether computers can “think” and over whether computers can “think” and whether computers can really outperform whether computers can really outperform humans at challenging mental tasks.humans at challenging mental tasks.

One battleground in the human versus One battleground in the human versus computer skirmishes is the chessboard.computer skirmishes is the chessboard.

In 1997, a much-watched match between In 1997, a much-watched match between world champion Gary Kasparov and IBM’s world champion Gary Kasparov and IBM’s Deep Blue supercomputer ended with Deep Blue supercomputer ended with Kasparov’s resignation in the sixth and final Kasparov’s resignation in the sixth and final game and his losing the competition to Deep game and his losing the competition to Deep Blue.Blue.

A dispirited Kasparov said, “I’m a human A dispirited Kasparov said, “I’m a human being. When I see something that is beyond being. When I see something that is beyond my understanding, I’m afraid.”my understanding, I’m afraid.”

Time and Cost ConstraintsTime and Cost Constraints

Time and cost constraints restrict our ability to get Time and cost constraints restrict our ability to get good, thorough information.good, thorough information.

Time constraints also may cause us to change the Time constraints also may cause us to change the nature of our decision processes.nature of our decision processes.

When pressed to make a quick decision, for When pressed to make a quick decision, for instance, we may seek negative information about instance, we may seek negative information about alternatives to screen them out quickly instead of alternatives to screen them out quickly instead of carefully balancing positive and negative aspects.carefully balancing positive and negative aspects.

Many managers face strong pressure from the Many managers face strong pressure from the organization to take action as quickly as possible organization to take action as quickly as possible rather than to analyze an issue at length.rather than to analyze an issue at length.

StressStress Decision makers often act under great Decision makers often act under great

psychological stress.psychological stress. Especially when stakes are high, we may find Especially when stakes are high, we may find

it difficult to react with cool rationality.it difficult to react with cool rationality. While things such as chemical disasters, While things such as chemical disasters,

nuclear incidents, plant crashes, and product nuclear incidents, plant crashes, and product tamperings are notable examples, executives tamperings are notable examples, executives regularly face less visible hot decision regularly face less visible hot decision situations.situations.

These These hot decision situationshot decision situations often lead to often lead to inadequate decision making.inadequate decision making.

Consequences of Decision BarriersConsequences of Decision Barriers(Figure 3-5)(Figure 3-5)

Barriers toProblemSolving

Use ofHeuristics

Procrastination

Incrementalizing

Conservatismin Information

Processing

DissonanceReduction

DecisionConfirmation

DefensiveAvoidance

Use of HeuristicsUse of Heuristics HeuristicsHeuristics (from the Greek word (from the Greek word heuriskeinheuriskein, meaning , meaning

“to find or discover”) are devices we use -- often without “to find or discover”) are devices we use -- often without knowing it -- to simplify decision making. They are knowing it -- to simplify decision making. They are simplifying rules of thumb.simplifying rules of thumb.

While potentially harmful, heuristics may not be all bad. While potentially harmful, heuristics may not be all bad. For one thing, in actual job settings we often receive For one thing, in actual job settings we often receive continuous feedback concerning our performance. So, if continuous feedback concerning our performance. So, if a heuristic “points us in the right direction” we can use a heuristic “points us in the right direction” we can use feedback to make adjustments.feedback to make adjustments.

However, we may not know we are using heuristics, so However, we may not know we are using heuristics, so they can be dangerous, especially in one-time decision they can be dangerous, especially in one-time decision situations.situations.

Some Important HeuristicsSome Important Heuristics SatisficingSatisficing means choosing the first acceptable means choosing the first acceptable

alternative.alternative. When faced with a great amount of information, we may When faced with a great amount of information, we may

simply ignore most of the information and focus on just simply ignore most of the information and focus on just two or three attributes.two or three attributes.

RepresentativenessRepresentativeness is the tendency to place something in is the tendency to place something in a class if it seems representative of the class.a class if it seems representative of the class.

AvailabilityAvailability is the tendency to estimate the probability of is the tendency to estimate the probability of an event based on how easy it is to recall instances of the an event based on how easy it is to recall instances of the event.event.

Anchoring and adjustmentAnchoring and adjustment is the tendency to use an early is the tendency to use an early bit of information as an anchor and then use new bit of information as an anchor and then use new information to adjust from that initial anchor.information to adjust from that initial anchor.

ProcrastinationProcrastination Because we find decision making to be Because we find decision making to be

uncomfortable, we may put off making and uncomfortable, we may put off making and announcing a decision as long as possible.announcing a decision as long as possible.

This This procrastinationprocrastination delays the time at which we delays the time at which we commit ourselves to a decision and thus makes is commit ourselves to a decision and thus makes is more difficult for us to reverse that decision.more difficult for us to reverse that decision.

We may justify the delay on the grounds that we’re We may justify the delay on the grounds that we’re gathering more information, but secretly we may be gathering more information, but secretly we may be wishing that the problem would go away.wishing that the problem would go away.

Procrastination can cost time, money, reputation, Procrastination can cost time, money, reputation, and opportunity. It can also lead to scrambling to and opportunity. It can also lead to scrambling to meet deadlines, and even to cheating or other meet deadlines, and even to cheating or other unethical behaviors.unethical behaviors.

Procrastination at Blimpie’sProcrastination at Blimpie’s When Blimpie International sub shops teetered When Blimpie International sub shops teetered

on the brink of insolvency in 1988, founder on the brink of insolvency in 1988, founder Anthony Conza identified procrastination in Anthony Conza identified procrastination in decision making as a major cause.decision making as a major cause.

In response, he set specific goals for In response, he set specific goals for improvements and provided firm dates for improvements and provided firm dates for task completion.task completion.

Within five years, Blimpie’s had rebounded. It Within five years, Blimpie’s had rebounded. It tripled in size, and its share price rose from tripled in size, and its share price rose from $0.125 to $11.50.$0.125 to $11.50.

Blimpie’s now has more than 2,100 Blimpie’s now has more than 2,100 restaurants in 16 countries.restaurants in 16 countries.

IncrementalizingIncrementalizing IncrementalizingIncrementalizing involves changing one attribute involves changing one attribute

of a current alternative a little and then another, of a current alternative a little and then another, rather than starting from scratch to design an rather than starting from scratch to design an alternative.alternative.

For instance, someone asked to design a perfect For instance, someone asked to design a perfect mousetrap may think of the best currently available mousetrap may think of the best currently available mousetrap and then begin to revise it bit my bit, mousetrap and then begin to revise it bit my bit, adding a better spring or disposal mechanism.adding a better spring or disposal mechanism.

While incrementalizing may be appropriate if only a While incrementalizing may be appropriate if only a “somewhat better” alternative is needed, it can “somewhat better” alternative is needed, it can seriously stifle truly creative alternatives.seriously stifle truly creative alternatives.

Conservatism in Information Conservatism in Information ProcessingProcessing

We tend to show We tend to show conservatism in information conservatism in information processingprocessing, characterized by underrevision of our , characterized by underrevision of our estimates when presented with new information.estimates when presented with new information.

For instance, if we initially believe the probability For instance, if we initially believe the probability of an event is .5 and are presented new of an event is .5 and are presented new information that should increase the probability information that should increase the probability to .8, we are likely to revise our estimate to only .6 to .8, we are likely to revise our estimate to only .6 or .7.or .7.

Conservatism can have serious consequences for Conservatism can have serious consequences for decision making since we don’t respond fully to decision making since we don’t respond fully to changing situations.changing situations.

Dissonance ReductionDissonance Reduction Most decisions require us to make difficult choices.Most decisions require us to make difficult choices. Even though our choice may seem best overall, we may Even though our choice may seem best overall, we may

still like some things about the alternatives we reject still like some things about the alternatives we reject and may not care for some things about the chosen and may not care for some things about the chosen alternative.alternative.

This creates a condition of conflicting thoughts, called This creates a condition of conflicting thoughts, called cognitive dissonancecognitive dissonance..

Since cognitive dissonance is uncomfortable, we take a Since cognitive dissonance is uncomfortable, we take a variety of actions, including a search for confirming variety of actions, including a search for confirming information, a distortion of attitudes, and an avoidance information, a distortion of attitudes, and an avoidance of disconfirming information, to justify our decisions.of disconfirming information, to justify our decisions.

As a result, we are likely to overestimate the quality of As a result, we are likely to overestimate the quality of our past decisions, and to underestimate the need to our past decisions, and to underestimate the need to improve our decisions. improve our decisions.

Decision ConfirmationDecision Confirmation

Decision confirmationDecision confirmation is dissonance reduction is dissonance reduction that occurs before the announcement of a decision.that occurs before the announcement of a decision.

For instance, research found that it was possible to For instance, research found that it was possible to identify students’ job choices weeks before the identify students’ job choices weeks before the students announced them.students announced them.

The students apparently made a decision fairly early The students apparently made a decision fairly early in the process.in the process.

The remainder of the process was spent building a The remainder of the process was spent building a case for the preferred alternative.case for the preferred alternative.

When they finally announced the decision, the When they finally announced the decision, the students could present a strong argument in its students could present a strong argument in its favor.favor.

Defensive AvoidanceDefensive Avoidance Psychological stress in hot decision situations may result Psychological stress in hot decision situations may result

in errors in scanning of alternatives.in errors in scanning of alternatives. When a hot situation -- such as a major decision, an When a hot situation -- such as a major decision, an

impending attack, or major surgery -- occurs and it looks impending attack, or major surgery -- occurs and it looks like important goals cannot be met, stress increases.like important goals cannot be met, stress increases.

This stress is especially great if someone is committed to This stress is especially great if someone is committed to a course of action that is challenged by new information.a course of action that is challenged by new information.

As stress grows, there is a tendency to lose hope of As stress grows, there is a tendency to lose hope of finding a better solution to the decision conflict, and finding a better solution to the decision conflict, and defensive avoidancedefensive avoidance occurs. occurs.

Defensive Avoidance (Continued)Defensive Avoidance (Continued)

Defensive avoidanceDefensive avoidance is a condition in is a condition in which the individual avoids information which the individual avoids information about risks of the chosen alternative or about risks of the chosen alternative or opportunities associated with an unchosen opportunities associated with an unchosen alternative.alternative.

Defensive avoidance is characterized by:Defensive avoidance is characterized by: lack of vigilant searchlack of vigilant search distortion of the meaning of warning distortion of the meaning of warning

messagesmessages selective inattention and forgettingselective inattention and forgetting rationalizingrationalizing

The Many Faces of IntuitionThe Many Faces of Intuition

Intuition as paranormal power or sixth senseIntuition as paranormal power or sixth sense. . According to this view, intuitive managers succeed According to this view, intuitive managers succeed because they have extrasensory powers.because they have extrasensory powers.

Intuition as a personality traitIntuition as a personality trait. . Intuition is Intuition is sometimes used to mean a personality type that sometimes used to mean a personality type that prefers to rely on hunches, inspiration, and insight prefers to rely on hunches, inspiration, and insight to solve problems.to solve problems.

Intuition as an unconscious processIntuition as an unconscious process. . This view This view sees intuition as a set of processes that occur at sees intuition as a set of processes that occur at the unconscious level at the same time that the unconscious level at the same time that analysis is proceeding at the conscious level.analysis is proceeding at the conscious level.

The Many Faces of Intuition The Many Faces of Intuition (Cont.)(Cont.) Intuition as a set of actionsIntuition as a set of actions. Intuition is sometimes seen . Intuition is sometimes seen

as a set of observable methods or actions used by as a set of observable methods or actions used by decision makers. For example, successful intuitive decision makers. For example, successful intuitive decision makers are said to often skip levels and seek decision makers are said to often skip levels and seek information directly from key individuals, to meet face information directly from key individuals, to meet face to face with those individuals, and to subtly probe for to face with those individuals, and to subtly probe for information.information.

Intuition as distilled experienceIntuition as distilled experience. According to this view, . According to this view, a manager who makes the same sorts of decisions many a manager who makes the same sorts of decisions many times over the years can identify an appropriate course times over the years can identify an appropriate course of action without conscious information processing.of action without conscious information processing.

Intuition as a residual categoryIntuition as a residual category. This view says that any . This view says that any choice that isn’t a product of systematic, conscious data choice that isn’t a product of systematic, conscious data gathering and analysis must be intuition.gathering and analysis must be intuition.

Guidelines Regarding Use of the Guidelines Regarding Use of the Term “Intuition”Term “Intuition”

If someone refers to intuition, ask what he or she means.If someone refers to intuition, ask what he or she means. There is no support for the “intuition as paranormal There is no support for the “intuition as paranormal

power” perspective and no reason to believe that such power” perspective and no reason to believe that such abilities could be developed if they did exist.abilities could be developed if they did exist.

There is no value in treating intuition as a residual.There is no value in treating intuition as a residual. If intuition is seen as a personality trait, it may be If intuition is seen as a personality trait, it may be

possible to select managers based on their intuitive possible to select managers based on their intuitive ability, but training will have little impact. There is little ability, but training will have little impact. There is little evidence, though, to suggest that personality traits are evidence, though, to suggest that personality traits are associated with more associated with more effectiveeffective “intuitive” decisions. “intuitive” decisions.

Guidelines Regarding Use of the Guidelines Regarding Use of the Term “Intuition” (Continued)Term “Intuition” (Continued)

If intuition is seen as distilled experience, it is If intuition is seen as distilled experience, it is learnable but not teachable; developing intuition will learnable but not teachable; developing intuition will require years of practice.require years of practice.

If intuition is conceptualized as an unconscious If intuition is conceptualized as an unconscious process it may not be possible to develop the process it may not be possible to develop the unconscious, and there is little evidence that unconscious, and there is little evidence that decision makers can be trained to rely more on the decision makers can be trained to rely more on the unconscious.unconscious.

If intuition is viewed as a set of actions taken by If intuition is viewed as a set of actions taken by certain types of decision makers, it may be possible certain types of decision makers, it may be possible to study those decision makers and learn from them.to study those decision makers and learn from them.

Guidelines for Improving Problem Guidelines for Improving Problem Solving (Figure 3-6)Solving (Figure 3-6)

ImprovedProblemSolving

Be Aware of Barriersto Effective

Problem Solving

Learn More AboutYour Characteristicsas a Problem Solver

Pay Attention to AllStages of the Problem

Solving Process

Work to AttainComplete and

Accurate Information

Employ CreativityEnhancementTechniques

Consider UsingComputers as an Aidto Problem Solving

Use Systematic Toolsfor Evaluation

and Choice

Consider Using aGroup Problem-Solving Process

Fostering CreativityFostering Creativity Good problem solving occurs when managers Good problem solving occurs when managers

have many viable, creative alternatives to have many viable, creative alternatives to consider.consider.

To inspire employees to approach problems To inspire employees to approach problems creatively and to nurture a creative environment, creatively and to nurture a creative environment, organizations follow three general approaches:organizations follow three general approaches: hiring creative individualshiring creative individuals applying specific creativity-enhancement techniquesapplying specific creativity-enhancement techniques developing a creative organizationdeveloping a creative organization

The Nature of CreativityThe Nature of Creativity

Creative behaviorCreative behavior is defined as is defined as production of ideas that are both new production of ideas that are both new and useful.and useful.

Creative abilityCreative ability is the ability to produce is the ability to produce ideas that are both new and useful.ideas that are both new and useful.

Both motivation and a proper setting Both motivation and a proper setting may be necessary if innate creative may be necessary if innate creative ability is to blossom into creative output.ability is to blossom into creative output.

The Creative ProcessThe Creative Process

Preparation Incubation VerificationInsight

The Creative ProcessThe Creative Process PreparationPreparation involves gathering, sorting, and involves gathering, sorting, and

integrating information and other materials to provide a integrating information and other materials to provide a solid base for a later breakthrough.solid base for a later breakthrough.

During the During the incubationincubation stage, the mind is not stage, the mind is not consciously focused on the problem. The individual may consciously focused on the problem. The individual may be relaxed, asleep, reflective, or otherwise involved.be relaxed, asleep, reflective, or otherwise involved.

The The insightinsight (“Eureka!”) stage is the familiar, sudden (“Eureka!”) stage is the familiar, sudden moment of inspiration.moment of inspiration.

Finally, Finally, verificationverification is necessary. Here, the individual is necessary. Here, the individual carries out the chores involved in carefully checking carries out the chores involved in carefully checking facts to support the insight.facts to support the insight.

Techniques for Enhancing Techniques for Enhancing CreativityCreativity

EnhancedCreativity

GordonTechnique

Synectics

IdeaChecklists

AttributeListing

CheckerboardMethod

Retroduction

Gordon TechniqueGordon Technique When asked to come up with a creative idea, When asked to come up with a creative idea,

people often instead incrementalize, taking an people often instead incrementalize, taking an available alternative and improving it bit by available alternative and improving it bit by bit.bit.

The The Gordon techniqueGordon technique is used to avoid such is used to avoid such incrementalizing.incrementalizing.

It uses an initial focus on function.It uses an initial focus on function. For instance, rather than being told to build a For instance, rather than being told to build a

better mousetrap, the group might first be told better mousetrap, the group might first be told that the focus was capturing.that the focus was capturing.

SynecticsSynectics SynecticsSynectics means “the joining together of apparently means “the joining together of apparently

unrelated elements.”unrelated elements.” Synectics relies heavily on use of analogies, including:Synectics relies heavily on use of analogies, including:

Direct analogyDirect analogy involves looking at parallel facts, involves looking at parallel facts, knowledge, or technology in a different domain from the knowledge, or technology in a different domain from the one being worked on.one being worked on.

With With personal analogypersonal analogy, synectics group members try to , synectics group members try to identify psychologically with key parts of the problem.identify psychologically with key parts of the problem.

Fantasy analogyFantasy analogy asks, “How in my wildest dreams can I asks, “How in my wildest dreams can I make this happen?” make this happen?”

Synectics also includes a full structured problem-solving Synectics also includes a full structured problem-solving sequence.sequence.

Idea ChecklistsIdea Checklists Idea checklistsIdea checklists involve asking a series of involve asking a series of

questions about how we might use something questions about how we might use something that we already have.that we already have.

For example, one checklist of idea-spurring For example, one checklist of idea-spurring questions is called SCAMPER, for:questions is called SCAMPER, for: Substitute?Substitute? Combine?Combine? Adapt?Adapt? Modify or magnify?Modify or magnify? Put to other uses?Put to other uses? Eliminate or reduce?Eliminate or reduce? Reverse or rearrange?Reverse or rearrange?

Eliminating and Putting to Other Eliminating and Putting to Other UsesUses

As an example of eliminating, As an example of eliminating, Kiichiro Toyoda, the founder of Kiichiro Toyoda, the founder of Toyota, developed the “just-in-Toyota, developed the “just-in-time” approach of eliminating time” approach of eliminating inventories after viewing inventories after viewing American supermarkets.American supermarkets.

George Washington Carver George Washington Carver asked the question “How can asked the question “How can peanuts be put to other uses?” peanuts be put to other uses?” and came up with over 300 and came up with over 300 applications.applications.

Adapting from the InuitsAdapting from the Inuits

• Clarence Birdseye worked as a fur trader in Labrador before World War I.

• He note that Inuit preserved fish by quick-freezing and that the dish, when thawed, were flaky and moist.

• Birdseye adapted this process to make quick-frozen food available to the general public.

• This replaced the old slow-freeze process that left food dry and tasteless.

• The huge success of quick-frozen food led to the creation of General Foods.

Attribute ListingAttribute Listing According to the developer of According to the developer of attribute listingattribute listing, ,

“Each time we take a step we do it by changing an “Each time we take a step we do it by changing an attribute or a quality of something, or else by attribute or a quality of something, or else by applying that same quality or attribute to some applying that same quality or attribute to some other thing.”other thing.”

There are two forms of attribute listing:There are two forms of attribute listing: With With attribute modifyingattribute modifying, the main attributes of the , the main attributes of the

problem object are listed. Then, ways to improve problem object are listed. Then, ways to improve each attribute are listed.each attribute are listed.

Attribute transferringAttribute transferring is similar to direct analogy in is similar to direct analogy in synectics; attributes from one thing are transferred synectics; attributes from one thing are transferred to another.to another.

Checkerboard MethodCheckerboard Method The The checkerboard methodcheckerboard method, also called , also called

morphological analysismorphological analysis, is an extension of attribute , is an extension of attribute modifying.modifying.

Specific ideas for one attribute or problem dimension Specific ideas for one attribute or problem dimension are listed along one axis of a matrix.are listed along one axis of a matrix.

Ideas for a second attribute are listed along the other Ideas for a second attribute are listed along the other axis.axis.

If desired, a third axis (and attribute) can be added.If desired, a third axis (and attribute) can be added. The cells of the matrix then provide idea The cells of the matrix then provide idea

combinations.combinations. The benefit of the method is that it makes us aware The benefit of the method is that it makes us aware

of all possible combinations of the attributes.of all possible combinations of the attributes.

The Checkerboard MethodThe Checkerboard MethodApplied to Paper ClipsApplied to Paper Clips

(Figure 3-8)(Figure 3-8)

Metal Plastic

MATERIAL

Thick

THICKNESS

Thin

Square SHAPE Round

RetroductionRetroduction

We are all slaves of our assumptions; they dictate We are all slaves of our assumptions; they dictate the way we behave.the way we behave.

RetroductionRetroduction involves changing an assumption. involves changing an assumption. This may serve two purposes:This may serve two purposes: our assumptions may be wrongour assumptions may be wrong even if our assumptions are correct, we may gain even if our assumptions are correct, we may gain

valuable new perspectives from looking at things valuable new perspectives from looking at things from a different anglefrom a different angle

One retroduction technique says, “Suppose X One retroduction technique says, “Suppose X were Y”were Y”

Another asks “What if?”Another asks “What if?”

The Creative OrganizationThe Creative Organization

An organization may try to choose appropriate An organization may try to choose appropriate structure and processes to foster creative behavior.structure and processes to foster creative behavior.

Some writers have studied creative individuals and Some writers have studied creative individuals and their desires and have drawn a picture of an their desires and have drawn a picture of an organization that would seem to suit them best.organization that would seem to suit them best.

The organization that emerges is loose, free-flowing, The organization that emerges is loose, free-flowing, and adaptive -- similar to the organic organization and adaptive -- similar to the organic organization structure,structure,

Organic structures seem appropriate in dynamic, Organic structures seem appropriate in dynamic, complex, uncertain situations -- exactly those most complex, uncertain situations -- exactly those most requiring creativity.requiring creativity.

Characteristics of the Creative Characteristics of the Creative Organization (Figure 3-9)Organization (Figure 3-9)

CreativeOrganization

Open Channels ofCommunication

Encouragement ofOutside Contacts

Idea Units Freed ofOther Responsibilities

HeterogeneousPersonnel Policy

Investment inBasic Research

Decentralized,Diversified

Risk-TakingEthos

Not Run as a “Tight Ship”

Separation of Creativefrom Productive Functions

Stable, SecureInternal Environment

Lighten Up: The Ig® Nobel PrizeLighten Up: The Ig® Nobel Prize Each year 10 individuals whose achievements “cannot Each year 10 individuals whose achievements “cannot

or should not be reproduced” are honored with Ig® or should not be reproduced” are honored with Ig® Nobel Prizes.Nobel Prizes.

Some recent winners:Some recent winners: Peace: Charl Fourie and Michelle Wong of Peace: Charl Fourie and Michelle Wong of

Johannesburg, South Africa, for inventing an Johannesburg, South Africa, for inventing an automobile burglar alarm consisting of a detection automobile burglar alarm consisting of a detection circuit and a flame-thrower.circuit and a flame-thrower.

Environmental protection: Hyuk-ho Kwon of Kolon Environmental protection: Hyuk-ho Kwon of Kolon Company of Seoul, Korea, for inventing the self-Company of Seoul, Korea, for inventing the self-perfuming business suit.perfuming business suit.

Nutrition: John Martinez of J. Martinez and Company, Nutrition: John Martinez of J. Martinez and Company, Atlanta, for Luak Coffee, the world’s most expensive Atlanta, for Luak Coffee, the world’s most expensive coffee, which is made from coffee beans ingested and coffee, which is made from coffee beans ingested and excreted by the luak, a bobcat-like animal native to excreted by the luak, a bobcat-like animal native to Indonesia. Indonesia.

Venture TeamsVenture Teams

A A venture teamventure team is a temporary grouping of is a temporary grouping of organization members for generating new ideas.organization members for generating new ideas.

So that creative thinking is not stifled, team members So that creative thinking is not stifled, team members are freed from the organization’s bureaucracy and in are freed from the organization’s bureaucracy and in many cases have a separate location and facilities -- many cases have a separate location and facilities -- these separate entities are known as these separate entities are known as skunk worksskunk works..

Companies such as IBM, 3M, Dow Chemical, and Texas Companies such as IBM, 3M, Dow Chemical, and Texas Instruments have used venture teams to solve Instruments have used venture teams to solve technical problems and promote change.technical problems and promote change.

Ford Motor Company used a skunk works to keep the Ford Motor Company used a skunk works to keep the new Mustang alive.new Mustang alive.

Focus on Management: Focus on Management: MetrojetMetrojet

Two dozen mechanics, flight attendants, dispatchers, Two dozen mechanics, flight attendants, dispatchers, and reservation agents of US Air, selected by senior and reservation agents of US Air, selected by senior managers and union leaders, were offered an managers and union leaders, were offered an unusual assignment: Help start a low-fare airline for unusual assignment: Help start a low-fare airline for US Air.US Air.

The employees did everything from pricing peanuts The employees did everything from pricing peanuts to conducting focus groups to arguing over how fast to conducting focus groups to arguing over how fast the planes should fly.the planes should fly.

Taking just one day off, the team completed the Taking just one day off, the team completed the assignment in only four months.assignment in only four months.

Named MetroJet, the airline achieved great initial Named MetroJet, the airline achieved great initial success but was terminated as part of US Air’s cost-success but was terminated as part of US Air’s cost-cutting moves following the 9/11 tragedy and its cutting moves following the 9/11 tragedy and its devastating effects on the airline industry.devastating effects on the airline industry.

Idea ChampionsIdea Champions An An idea championidea champion is a member of the organization is a member of the organization

who is assigned responsibility for the successful who is assigned responsibility for the successful implementation of a change.implementation of a change.

The idea champion may be a senior manager or a non-The idea champion may be a senior manager or a non-manager, such as the inventor of the idea that has manager, such as the inventor of the idea that has prompted the change.prompted the change.

An idea champion is devoted to the change and is An idea champion is devoted to the change and is willing to spend time and energy to see that the willing to spend time and energy to see that the change takes place.change takes place.

Texas Instruments found the presence of an idea Texas Instruments found the presence of an idea champion to be critical to the success of its technical champion to be critical to the success of its technical projects and now requires an idea champion before projects and now requires an idea champion before approving a project.approving a project.

IntrapreneurshipIntrapreneurship IntrapreneurshipIntrapreneurship is the name given to is the name given to

entrepreneurial activities within a larger organization.entrepreneurial activities within a larger organization. IntrapreneursIntrapreneurs are essentially internal are essentially internal

entrepreneurs.entrepreneurs. Intrapreneurs and entrepreneurs have things in Intrapreneurs and entrepreneurs have things in

common; they value creativity and autonomy and common; they value creativity and autonomy and have a strong desire to achieve.have a strong desire to achieve.

However, since intrapreneurs work within a corporate However, since intrapreneurs work within a corporate system, they face the benefits and constraints of that system, they face the benefits and constraints of that system.system.

Intrapreneurs may need different competencies to Intrapreneurs may need different competencies to succeed than do entrepreneurs, including skill at succeed than do entrepreneurs, including skill at organizational politics.organizational politics.

Freedom FactorsFreedom Factors

FreedomFactors

Self Selection

No Handoffs

Corporate Slack

Ending the Home-Run Philosophy

Tolerance of Risk,Failure, and Mistakes

Freedom from“Turfiness”

Cross-FunctionalTeams

Multiple Options

The Doer DecidesPatient Money

Creativity and DiversityCreativity and Diversity People differing in gender, race, age, disability People differing in gender, race, age, disability

status, and sexual orientation bring to organizations status, and sexual orientation bring to organizations a variety of attitudes, values, and perspectives as a variety of attitudes, values, and perspectives as well as a broad and rich base of experience to well as a broad and rich base of experience to address a problem.address a problem.

As a result, as a group becomes more diverse, the As a result, as a group becomes more diverse, the potential for creativity is enhanced.potential for creativity is enhanced.

Diverse groups may also foster more open, honest, Diverse groups may also foster more open, honest, and effective decision making.and effective decision making.

However, diversity may also increase the potential However, diversity may also increase the potential for misunderstandings and increase conflict and for misunderstandings and increase conflict and anxiety among members.anxiety among members.

Company Programs to Enhance Company Programs to Enhance CreativityCreativity

Quaker Oats Co. executives go horseback riding Quaker Oats Co. executives go horseback riding when they need fresh approaches to problems.when they need fresh approaches to problems.

Those Characters from Cleveland has a half dozen Those Characters from Cleveland has a half dozen weekend retreats in the woods each year, where its weekend retreats in the woods each year, where its creative personnel brainstorm, play games, and creative personnel brainstorm, play games, and sketch to come up with creative ideas.sketch to come up with creative ideas.

At Omron Corp. midlevel employees attend a At Omron Corp. midlevel employees attend a monthly monthly jukujuku, or cram school, where they try to , or cram school, where they try to think and plan as if they were 19th century think and plan as if they were 19th century warlords, private detectives, or Formula One warlords, private detectives, or Formula One racecar drivers.racecar drivers.

Fuji Film asks its senior managers to study topics Fuji Film asks its senior managers to study topics such as the history of Venice and the sociology of such as the history of Venice and the sociology of apes.apes.

Creativity Programs WorldwideCreativity Programs Worldwide The growing emphasis on creativity is evident The growing emphasis on creativity is evident

worldwide.worldwide. For example, independent thinking and For example, independent thinking and

improvisation have historically been stifled in many improvisation have historically been stifled in many Japanese firms, but competitive pressures and Japanese firms, but competitive pressures and rapid change are demanding greater creativity.rapid change are demanding greater creativity.

Shiseido, Japan’s largest cosmetics maker, has Shiseido, Japan’s largest cosmetics maker, has implemented a series of seminars to enhance the implemented a series of seminars to enhance the creativity of its managers. The seminars cover creativity of its managers. The seminars cover such topics as “Time and Space,” “Expression and such topics as “Time and Space,” “Expression and Language,” “Beauty and Truth,” and “Body and Language,” “Beauty and Truth,” and “Body and Soul.”Soul.”

Negotiating and BargainingNegotiating and Bargaining

Decision making is difficult enough when we Decision making is difficult enough when we must “simply” choose alternatives.must “simply” choose alternatives.

When our decision making is in the face of When our decision making is in the face of another party who may have opposing another party who may have opposing interests, things become even more interests, things become even more complicated.complicated.

This requires consideration of strategies for This requires consideration of strategies for negotiating, and associated approaches to negotiating, and associated approaches to attaining “win-win” solutions.attaining “win-win” solutions.

Strategies for NegotiatingStrategies for Negotiating ForcingForcing.. With forcing, the negotiator is assertive and With forcing, the negotiator is assertive and

uncooperative, attempting to satisfy his or her own needs at the uncooperative, attempting to satisfy his or her own needs at the expense of the other party.expense of the other party.

AvoidingAvoiding. . A negotiator adopting an avoiding strategy is neither A negotiator adopting an avoiding strategy is neither assertive nor cooperative, neglecting the interests of both parties assertive nor cooperative, neglecting the interests of both parties by attempting to sidestep the conflict or put off making a decision.by attempting to sidestep the conflict or put off making a decision.

CompromisingCompromising. . A compromising negotiator shows moderate A compromising negotiator shows moderate levels of both assertiveness and cooperation, not fully satisfying levels of both assertiveness and cooperation, not fully satisfying the needs of either party.the needs of either party.

AccommodatingAccommodating. . Accommodating negotiators are cooperative Accommodating negotiators are cooperative without being assertive, thus satisfying the other party’s needs without being assertive, thus satisfying the other party’s needs while neglecting their own.while neglecting their own.

CollaboratingCollaborating. . A negotiator adopting this style is both A negotiator adopting this style is both cooperative and assertive; this is the “win-win” style.cooperative and assertive; this is the “win-win” style.

Negotiating StylesNegotiating Styles(Figure 3-10)(Figure 3-10)

Uncooperative Cooperative

COOPERATIVENESS

Assertive

ASSERTIVENESS

Unassertive

Forcing Collaborating

Compromising

AccommodatingAvoiding

Distributive and Integrative Distributive and Integrative ApproachesApproaches(Figure 3-11)(Figure 3-11)

100

70

50

25

0

A

F

D

G

C

B

E

0 30 50 75 100 Returns to Party 2

Returns to Party 1

Distributive (Win-Lose)

Integrative (Win-Win)

Guidelines for Attaining Win-Win Guidelines for Attaining Win-Win SolutionsSolutions

Think win-winThink win-win.. It is critical to keep focused on the goal if a It is critical to keep focused on the goal if a mutually acceptable, integrative solution.mutually acceptable, integrative solution.

Plan for the negotiationsPlan for the negotiations. . Invest the time to determine the Invest the time to determine the who, what, when, why, and how of negotiations. who, what, when, why, and how of negotiations.

Know your BATNAKnow your BATNA. . Know the “Best Alternative To a Negotiated Know the “Best Alternative To a Negotiated Agreement,” since it determines the Agreement,” since it determines the reservation pointreservation point, the , the point at which we are indifferent between a negotiated point at which we are indifferent between a negotiated agreement and an impasse.agreement and an impasse.

Work to understand the other partyWork to understand the other party.. Win-win solutions Win-win solutions demand a relationship of trust and respect. Such relationships demand a relationship of trust and respect. Such relationships are based on mutual understanding and sensitivity.are based on mutual understanding and sensitivity.

Focus on a common objective and depersonalize the Focus on a common objective and depersonalize the problemproblem. . The problem -- not the other party -- should be the The problem -- not the other party -- should be the adversary.adversary.

Guidelines for Attaining Win-Win Guidelines for Attaining Win-Win Solutions (Continued)Solutions (Continued)

Negotiate from interests, not positionsNegotiate from interests, not positions. . Negotiations may Negotiations may stall if each side pushes for its position and fights the other stall if each side pushes for its position and fights the other party’s position. Try to focus instead on underlying interests.party’s position. Try to focus instead on underlying interests.

Build on differencesBuild on differences.. Successful negotiations may flow from Successful negotiations may flow from differences in perceptions, preferences, or probability differences in perceptions, preferences, or probability estimates.estimates.

Work to control emotionsWork to control emotions.. Emotions may short-circuit Emotions may short-circuit rational thinking. Try to understand your emotions and those of rational thinking. Try to understand your emotions and those of the other party, and treat them as legitimate.the other party, and treat them as legitimate.

Use active listeningUse active listening.. Active listening gives you what the Active listening gives you what the other person really wants and is willing to concede, conveys to other person really wants and is willing to concede, conveys to the other party that you are serious about working toward a the other party that you are serious about working toward a solution, and induces the other party to “open up.”solution, and induces the other party to “open up.”

Be creativeBe creative.. For instance, challenge your assumptions about For instance, challenge your assumptions about the other party’s motivation and the scope of the bargaining.the other party’s motivation and the scope of the bargaining.

Techniques for Reaching Integrative Techniques for Reaching Integrative AgreementsAgreements

Obtaining added resourcesObtaining added resources.. While obtaining added resources While obtaining added resources may not always be feasible, we should at least consider the may not always be feasible, we should at least consider the possibility.possibility.

Providing nonspecific compensation. Providing nonspecific compensation. With With nonspecific nonspecific compensationcompensation, one party gets what it wants and the other is paid , one party gets what it wants and the other is paid on some unrelated issue.on some unrelated issue.

Trading issuesTrading issues. . Trading issuesTrading issues means each party concedes on means each party concedes on low-priority issues in exchange for concessions on higher-priority low-priority issues in exchange for concessions on higher-priority issues.issues.

Cost cuttingCost cutting. . With With cost cuttingcost cutting, one party gets what it wants , one party gets what it wants and the other gets the costs associated with the concession and the other gets the costs associated with the concession reduced or eliminated.reduced or eliminated.

BridgingBridging. . With With bridgingbridging, a new option that satisfies the interests , a new option that satisfies the interests of both parties is developed.of both parties is developed.

Tactics to Encourage Sharing of Tactics to Encourage Sharing of InformationInformation

Decide on a distribution rule in advanceDecide on a distribution rule in advance. . This may encourage parties to the bargaining to This may encourage parties to the bargaining to share information.share information.

Ask questionsAsk questions. . While we may not get answers While we may not get answers to all our questions, we’re more likely to get to all our questions, we’re more likely to get answers if we ask than if we don’t.answers if we ask than if we don’t.

Strategically disclose informationStrategically disclose information. I. It is often t is often important to provide some useful -- but probably important to provide some useful -- but probably not critical -- information to the other party. This not critical -- information to the other party. This helps develop trust and may lead to reciprocity.helps develop trust and may lead to reciprocity.

Tactics to Encourage Sharing of Tactics to Encourage Sharing of Information (Cont.)Information (Cont.)

Make multiple offers simultaneouslyMake multiple offers simultaneously. By making a . By making a set of offers, which ideally would be equally set of offers, which ideally would be equally desirable to us but differing in their attractiveness desirable to us but differing in their attractiveness to the other party, we may get faster agreement, to the other party, we may get faster agreement, or may at least gain information about the other or may at least gain information about the other party’s preferences. party’s preferences.

Search for postsettlement settlementsSearch for postsettlement settlements. Once the . Once the parties have reached a mutually acceptable parties have reached a mutually acceptable agreement, they can employ a third party who is agreement, they can employ a third party who is given full information and is told to search for given full information and is told to search for another agreement that is better for both parties. another agreement that is better for both parties. The initial settlement is essentially insurance in The initial settlement is essentially insurance in hand, and it leads to an increased willingness to hand, and it leads to an increased willingness to seek a carefully crafted, preferable alternative.seek a carefully crafted, preferable alternative.