Creative Thinking in Problem Solving. Application to Professional Consultancy
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1 Creative Thinking in Problem Solving Application to Professional Consultancy Page 1. Company Background 2. Problem faced by the company 3. Fishbone diagram - Mess finding and Problem finding Technique 4. Problem analysis V Relevance Systems 5. Redefined the problem V a Binary Relevance System 6. Improve staff performance V Creative Problem Solving method file:///c /u234/ectraining/public_html/b882/b882tma2.htm (1 / 22) [16/8/2003 PM 06:02:54]
2 7. Improve the process of audit program V SAMM method 8 Evaluation of the problem solving program 9 Note 10 Exhibition I & II 1. Company background file:///c /u234/ectraining/public_html/b882/b882tma2.htm (2 / 22) [16/8/2003 PM 06:02:54]
3 1.1 Company Profile We are professional accounting firm and provide accounting, taxation, secretarial services, audit and management consultant service. A division of management information support for system setup and computerization is recently established for existing client to provide a complete package of audit, taxation, company secretarial and IT service for potential clients. 1.2 Client base According to the business nature, the client type would be divided into four areas with the degree of highly trained professional to handle are : Nature Percentage Degree of skill Trading and wholesale 50% Medium Manufacturing 20% Medium to High Property Investment 15% Medium to High Professional 15% High 1.3 Structure file:///c /u234/ectraining/public_html/b882/b882tma2.htm (3 / 22) [16/8/2003 PM 06:02:54]
4 The company structure is Professional bureaucracy type [i] - Standardization of skill and relied on trained professionals to handle the job independently. Professional bureaucracy means an organization with an environment is stable yet complex. Complexity is due to client portfolio is varied and creative thinking skill is a pre-requisite to handle the case therefore requires decentralization to highly trained individuals, and stability enables them to apply standardize skills and so to work with a good deal of autonomy. 1.4 Strength, Weakness, Opportunity and Weakness Analysis The SWOT analysis of the company Strength We have a flexible structure to handle different client with lower cost in compare with other professional firm as staff is required to be independent. Senior manager is able to deal with professional and property investment client individually. We have a MIS team to support file:///c /u234/ectraining/public_html/b882/b882tma2.htm (4 / 22) [16/8/2003 PM 06:02:54]
5 the audit professional Weakness The turnover of junior staff is high as pay is lower than average but many parts of the job (i.e. over 80%) is relied on the junior staff to carry out, especially the manufacturing and trading assignments Opportunity High demand of Information technology of the client in communication and computer networking due to complexity and ever-changing environment. We could develop the IT service business from the existing client (i.e. Horizontal strategy) for the coming four years Threat Fear of the possibility of deregulation of statutory audit in the coming year. Senior staff may change their career path and it is difficult to recruit new staff. The difficulty to obtain human resource as minimum entry of accounting qualification will be university student in 2000s. file:///c /u234/ectraining/public_html/b882/b882tma2.htm (5 / 22) [16/8/2003 PM 06:02:54]
6 2 Problem faced by the company - Mess finding 2.1 Client compliant Client complains our delay and unable to meet the deadline. The staff could not communicate with the client intention or follow their instruction. 2.2 Cost overrun The fee could not cover the cost as senior wrongly evaluate the time cost. The high turnover of junior staff creates the problem of inefficient and extra work and cost is required. 2.3 Operating technique is inefficiency The working standard is declining and the job usually requires creative problem solving skill to handle. The standard audit program is straight forward (i.e. vertical thinking) while the fact and problem finding needs lateral thinking skill. file:///c /u234/ectraining/public_html/b882/b882tma2.htm (6 / 22) [16/8/2003 PM 06:02:54]
7 2.4 Poor time management As work overload due to bottleneck laid on the senior to take up the responsibility of the junior staff, they could not monitor the process and workflow properly. On the other hand, inexperienced staff always spend extra time to complete job. 2.5 Communication barrier Junior staff informed that they could not communicate with the supervisor when they need immediate solution as the senior is very busy with heavy workload. Senior staff, however, complain the junior waste their time in solving minor problem and poor communication skill to handle client response. 2.6 Inadequate IT support Due to increasing use of computer for accounting and company secretarial work, the computer system is overload and the function is required to suit for the user and MIS support. file:///c /u234/ectraining/public_html/b882/b882tma2.htm (7 / 22) [16/8/2003 PM 06:02:54]
8 3. Fishbone diagram [ii] - Mess finding and Problem identified technique 3.1 The aim of the fishbone diagram technique is to identify and list all the possible causes that have brought the problem about. In identify the problem of the company, the fishbone diagram was applied to idea generation process. 3.2 The partner, senior manager and junior staff were invited to discuss under separate group of their problem (i.e. brain-storming and brain-writing). By writing down their concern and the cause of the problem, these were placed in the spur and sub-spur of the fishbone (Exhibit I). 3.3 After the discussion, we come to the conclusion that one or more of the cause shown on the diagram are more important, circles are placed around them. These are the causes that will pay more attention at the problem redefined and analysis stage. Finally, the problem emerged - The poor performance due to work overload in senior and partner. 3.4 The reason why we use fishbone diagram to explore the problems are : a. It encourages all staff to study every angle of a problem before making file:///c /u234/ectraining/public_html/b882/b882tma2.htm (8 / 22) [16/8/2003 PM 06:02:54]
9 a hasty decision. b. It focus the staff to explore everything possible, so there is no further excuse for delay. c. It keeps everyone on track by group discussion. It brings every relevant factor put into the open and prevents anyone stampeding the group into half-baked decision. d. It offers an opportunity to explore a problem from a total approach perspective. 4. Problem analysis - Relevance systems [iii] 4.1 After clarify the cause of poor performance, I start to analysis the problem file:///c /u234/ectraining/public_html/b882/b882tma2.htm (9 / 22) [16/8/2003 PM 06:02:54]
10 for solution and action plan by using relevant system technique. By organizing the information about the problem work overload through successive refinement of major problem element (i.e. a single relevant system), I use why method to evaluate the major problem caused by work overload and come to the how could be resolve the work overload laid on the partner and senior manager. 4.2 The reason why we are work overload is best put to open discussion with senior manager and their opinion is worth for further downtrend to junior level. We found the problem may divide into two direction V how to improve the staff performance and the operation process. 4.3 The weakness of the staff performance must be strengthened. The fact finding and solution skill is the first priority as it greatly reduces the workload of senior staff directly. The senior found if the staff could handle and communicate with the client independently, they have more time to review and planning. 4.4 After downtrend to lower level, we noted that junior staff find the audit program could not handle most of the clients as the client base is varied considerably and specified skill is need for handling the client. The junior file:///c /u234/ectraining/public_html/b882/b882tma2.htm (10 / 22) [16/8/2003 PM 06:02:54]
11 staff informed that they need more training and experience sharing class provided by senior to upgrade their standard. 4.5 An interesting point found that staff are get use of Internet communication and document delivery by . They suggested to improve the communication system and networking capability of the computer so that communicate flow between clients and colleague could be more efficiency. MIS staff has conduct a survey of the time spend for normal work and they found 70% of their time is used for communication with client. 5. Redefined the problem - a Binary Relevance system (Exhibit II) 5.1 By using the possible solution of the lower level i.e. junior staff, we could develop training program, experience sharing class and education to improve staff performance. On the other hand, the modification of audit program and improve network capacity could improve our process and enhance overall operation efficient of the company. In fact, the freedom and trust to the junior staff (i.e. inner motivation) is a critical success factor to handle the client independently and improve overall performance. file:///c /u234/ectraining/public_html/b882/b882tma2.htm (11 / 22) [16/8/2003 PM 06:02:54]
12 5.2 By up and down for possible solution from different levels, we find that by company restructure to improve staff performance under a stable environment is important in the long run. While a complexity of environment is always encountered, we need to develop a integrated system for better communication and faster response to face the enhancing changing environment. 5.3 The improvement of staff performance and operation efficient may suggest the company to implement a IT policy for company restructure. The redefine of the problem Work overload affect the company performance to Company restructure oriented by IT through the binary relevance systems could give the company a broaden and creative idea to handle the overload problem. 5.4 The Binary relevance system allows both policy makers and all staff engaged in the audit work to analyze any possible constraints that might influence potential solution. The Opportunity interfaces are an important strength of Relevance Systems because we are forced to consider potential-solution constraints, the solution such as strengthen computer network and modify the audit program for the first binary system has file:///c /u234/ectraining/public_html/b882/b882tma2.htm (12 / 22) [16/8/2003 PM 06:02:54]
13 certainty consider the workload of senior and partner and the computer job. However, this approach is suitable for well-structure problem and we use the idea generated from fishbone diagram to assist us in examine the problem elements of poor performance in the company. 6 Improve staff performance - Creative Problem Solving method [iv] 6.1 As we are working under a stable but complex condition environment (i.e. professional bureaucracy), the problem we encounter is mostly ill-structured and requires creative problem solving technique to assist us in identifying the problem and solution finding. 6.2 The CPS program, first developed by Sindey J. Parnes, was preceded by recognition of a MESS that must be refined and clarified before beginning the process. The process of Creative Problem Solving program have six stages and each of these stages begins with a divergent activity and ends with a convergent activity. file:///c /u234/ectraining/public_html/b882/b882tma2.htm (13 / 22) [16/8/2003 PM 06:02:54]
14 6.3 The audit program is a standardization of skill designed for junior staff to follow the audit procedure without omitting any important point. It requires vertical thinking skill (i.e. logical analysis) and suitable for stable environment - the data finding and testing process. However, the audit program itself is inadequate to handle complex situation which requires lateral thinking [v] skills in problem identification and solution finding process. 6.4 In considering to apply the creative problem solving technique to the professional service, it is practicable to set up a standard audit program to handle the stable environment with standard process. However, it is very important but hard to train the staff to handle complex situation with special techniques for lateral thinking in problem identified and fact finding process for acceptable solution. 6.5 Since idea identification, old idea avoidance and develop new ideas are the pre-requisite in lateral thinking, we would put awareness, alternative and provocative methods in design program for on-the-job training, effective communication skill with client and experience sharing meeting. file:///c /u234/ectraining/public_html/b882/b882tma2.htm (14 / 22) [16/8/2003 PM 06:02:54]
15 7. Improve the process of audit program - SAMM method [vi] 7.1 Since the staff could not handle the client efficient and effective by following the procedure of the audit program, we decide to review the the audit program by listing the primary steps involved in the process. By listing the process activities on the left side (i.e. posting, vouching, verification, transactional test, confirmation etc) and the modification listed (i.e. eliminate, substitute, combine, rearrange etc) along the top, we then put this matrix open for discussion with the senior manager. 7.2 The method we used for audit program review is stem from the SAMM (Sequence-Attribute Modification Matrix) approach as developed by Brooks. It combines elements of Attribute Listing (i.e. The necessary step for an audit program), Checklist (i.e. the feature of the audit test and program) and Morphological Analysis (i.e. two dimension process activities and potential modification matrix) and uses forced relationships and related stimuli to promote ideas. file:///c /u234/ectraining/public_html/b882/b882tma2.htm (15 / 22) [16/8/2003 PM 06:02:54]
16 7.3 According to our client types (i.e. manufacturing, trading etc), we use the SAMM method to design different audit program by modifying the process activities, e.g. modify the purchase test for manufacturing and combine the sales with debtors test and eliminate the purchase cut-off test in carrying the manufacturing audit program. 7.4 By listing the step in sequence, we would not omit any important point and vertical thinking type work is possible for junior staff while the attribute of the audit work necessary for the test is justified by the senior and partner in design stage. 7.5 Finally, the audit program is set to the computer by the MIS department. They design a defined criteria for input to produce a suitable audit program for the audit professional and network the system so that senior staff might file:///c /u234/ectraining/public_html/b882/b882tma2.htm (16 / 22) [16/8/2003 PM 06:02:54]
17 review the process of the job through the computer As the checklist approach [vii] is suitable to apply for modification of the audit work required for any particular client, the MIS department could design a standard package for minimum working (i.e. effective and efficient) to complete the chose assignment. 7.7 The result of IT approach for reengineering auditing work for cost control purpose and time management was found very suitable for wholesale, trading and manufacturing jops as the standard process is sufficient. However, the professional and property investment client is complex and standard program could only eliminate routine test which is not the primary concern for senior manager. file:///c /u234/ectraining/public_html/b882/b882tma2.htm (17 / 22) [16/8/2003 PM 06:02:54]
18 8 Evaluation of the problem solving program 8.1 Source for evaluating the assignment In considering the feasibility, relevancy and creativity of the problem solving method used in this assignment, I have consulted my partner, discussing with senior managers, MIS department, seeking opinion from file:///c /u234/ectraining/public_html/b882/b882tma2.htm (18 / 22) [16/8/2003 PM 06:02:55]
19 different audit professional and articles from Harvard Business Review Group discussion with senior and junior staff Since the action plan requires all staff of the company to participate for company restructure, I decide to use Fishbone diagram for group discussion to identify the problem and keep track on anyone to carry out the possible solution for problem identify so my program would not be delay or blocked in the implementation stage. I also use Relevance System approach to analysis the problem and pass the problem to lower level for any suggestion and possible solution. The opportunity interface is very important in the Relevance system approach as constraints and potential problem have been fully examined with every angle. 8.3 Consulting with the partner and MIS consultant In developing the binary relevance system of redefining the work overload problem, I have discuss with the partner and MIS people before arriving the final problem statement of how could IT policy enhance the company restructure. The partner is familiar with the auditing standard and work process while the MIS consultant could support us and give advice to solve file:///c /u234/ectraining/public_html/b882/b882tma2.htm (19 / 22) [16/8/2003 PM 06:02:55]
20 the problem - the alignment between operation and people with Information technique is the critical success factor my the program. 8.4 Seeking for other audit professional opinion We find work overload is very common in the accounting and auditing company as high turnover rate of manpower and lack of skillful staff to handle client. Most of the company increase the fee to cover the running cost and ignore the cost control, they will raise the pay and recruit skillful staff without consider restructure of the company. However, as the economic recession has great impact, most of the audit firm has to cut cost for survival but the cost of manpower is a burden in running the operation. They find my plan is very creative as the computerization in document flow and processing of audit work could reduce the running cost substantially. file:///c /u234/ectraining/public_html/b882/b882tma2.htm (20 / 22) [16/8/2003 PM 06:02:55]
21 8.5 Inner Motivation - Harvard Business Review, October 1998 In the assignment TMA01, I found the inner motivation factors as printed in the article of Creativity from Harvard Business Review is the primary concern for the success of any company restructure program. As we are professional bureaucracy facing stable yet complex environment, the creativity of staff is a great concern for the company. We find the supervisory management with close contact with the junior is very important, otherwise they lose the motivation. Experience sharing with the colleague is also very crucial in the inner motivation process, the improvement of ability in dealing with client not only improve the staff performance but also the asset of any professional service company Other issue for wider context By studying the Van Gundy, Jr. Technique, we could have a wider context of the problem solving as Synectics [viii] is of useful for the group discussion in idea generation. Since the psychological states are considered to be a prerequisite for the development of creative thinking, we may have new idea file:///c /u234/ectraining/public_html/b882/b882tma2.htm (21 / 22) [16/8/2003 PM 06:02:55]
22 to handle the work overload from similar situation but apparently different elements. [i] B881 Strategy Management, Henry Mintzberg - Structure of organization [ii] Technique 4.6 Block 2 Technique B882 [iii] 3.10 Redefining and Analyzing Problem- Page 65, VanGundy Jr. [iv] 7.03 Creative Problem-Solving - Pages 295 VanGundy Jr. [v] 7.04 Lateral Thinking - Page 303, VanGundy [vi] 4.51 Sequence-Attribute Modification Matrix (SAMM) Page 166, VanGundy [vii] 4.08 Checklist V Page 90, VanGundy [viii] 4.57 Synectics - Page 182, VanGundy file:///c /u234/ectraining/public_html/b882/b882tma2.htm (22 / 22) [16/8/2003 PM 06:02:55]
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