Delhi Skill and Entrepreneurship

University

Reading Manual

Face the World Skills – Social and Emotional

Learning
Critical Thinking and Problem Solving
 Course Content/Syllabus:
Course Content
Module I: Critical Thinking
Descriptors/Topics:
• Critical Thinking and Learning
• Convergent and Divergent Thinking
• RED Model of Critical Thinking
• Nurturing Critical Thinking- Through Mindfulness and Resilience Skills
• Tools for Critical Thinking: 6 Thinking Hats
Module II: Problem-Solving
Descriptors/Topics:
• Recognizing and defining a problem
• The IDEALS Model of problem-solving-Identify, Define, Enumerate, Analyze, List, and Self-
Correct.
(Self-Exercises to be given to the students)
• How to deal with barriers in problem-solving: The Perceptual & Emotional Barriers, Cultural
& Environmental Barriers, Intellectual and Expressive Barriers, Stereotyping, and Unconscious
Biases
Module III: Techniques of Problem-Solving
Descriptors/Topics:
• Fish Bone Diagram Method
• Brainstorming,
• Making Issue Trees to solve problems
Module IV: Using Tools of Critical Thinking for taking a Decision
Descriptors/Topics:
• Action Plan & Preparing the details
• Ethical & Social Concerns
• Ownership of decisions
• Personal Decision Making
• Challenges in Decision Making
• Tools of Decision Making
Module I: Critical Thinking
 Critical Thinking and Learning

Creativity is defined as the tendency to generate or recognize ideas, alternatives, or possibilities

that may be useful in solving problems, communicating with others, and entertaining ourselves
and others. A student who is encouraged to be a critical thinker invariably develops a sense of
curiosity of the happenings around him/her. A strong and genuine sense of curiosity leads to
students wanting to analyze and assimilate information and events. In the process, they form their
own informed ideas, mostly out-of-the-box ones, that in turn improve their creativity. Creativity
is a skill that all critical thinkers will dally with in their professional and personal life. In the
process of finding answers in a logical and rational manner, they will usually be able to get their
creative juices flowing.

Critical thinking is the ability to think clearly and rationally, understanding the logical connection
between ideas. Critical thinking has been the subject of much debate and thought since the time
of early Greek philosophers such as Plato and Socrates and has continued to be a subject of
discussion into the modern age, for example the ability to differentiate between a real news versus
a fake news.

Critical thinking might be described as the ability to engage in reflective and independent thinking.

In essence, critical thinking requires you to use your ability to reason. It is about being an active
learner rather than a passive recipient of information.

Critical thinkers rigorously question ideas and assumptions rather than accepting them at face
value. They will always seek to determine whether the ideas, arguments and findings represent the
entire picture and are open to finding that they do not.

Critical thinkers will identify, analyse and solve problems systematically rather than by intuition
or instinct.
A critical thinker is the one who can:
• Understand the links between ideas.
• Determine the importance and relevance of arguments and ideas.
• Recognise, build and appraise arguments.
• Identify inconsistencies and errors in reasoning.
• Approach problems in a consistent and systematic way.
• Reflect on the justification of their own assumptions, beliefs and values.

Critical thinking fosters allied life skills such as organizational skills, planning, open-mindedness,
and communication skills among others. Being a life skill by itself, critical thinking enables you
to take on challenges in the personal and professional world with ease. It encourages confidence
and independence, thereby shaping successful lives. As a critical thinker, one will learn from their
mistakes, thereby notching up their productivity in all spheres of life.A leader with thinking skills
will always plan few moves ahead
https://www.skillsyouneed.com/learn/critical-thinking.htmlthan that of its competitor.
 Source:https://www.linkedin.com/pulse/what-importance-benefits-critical-thinking-skills

Analysis Communication
• Data Analysis • Active Listening
• Research • Assessment
• Interpretation • Collaboration
• Judgment • Explanation
• Questioning Evidence • Interpersonal
• Recognizing Patterns • Presentation
• Skepticism • Teamwork
• Asking Thoughtful Questions • Verbal& written Communication

Creativity Open-Mindedness
• Flexibility • Diversity
• Conceptualization • Fairness
• Curiosity • Humility
• Imagination • Inclusive
• Drawing Connections • Objectivity
• Inferring • Observation
• Predicting • Reflection
• Synthesizing
• Vision
Problem-Solving More Critical Thinking Skills
• Attention to Detail • Inductive Reasoning
• Clarification • Deductive Reasoning
• Decision Making • Compliance
• Evaluation • Noticing Outliers
• Groundedness • Adaptability
• Identifying Patterns • Emotional Intelligence
• Innovation • Brainstorming
• Optimization
• Restructuring
• Integration
• Strategic Planning
• Project Management
• Ongoing Improvement
• Causal Relationships
• Case Analysis
• Diagnostics
 • SWOT Analysis
• Business Intelligence
• Quantitative Data Management
• Qualitative Data Management
• Metrics
• Accuracy
• Risk Management
• Statistics
• Scientific Method
• Consumer Behavior

Convergent and Divergent Thinking

Take a look at the picture below. Based on what you see, would you say the man is happy or
sad?

If you believe the man is probably happy because he’s smiling, that’s an example of convergent
thinking. You looked at whatever information was available and came up with one logical,
straightforward solution.

If you looked at this picture and thought, ‘It depends,’ that’s an example of divergent thinking.
The man could be happy, or he could be smiling because people expect you to smile when taking
a picture. The man is wearing professional clothing, so he might be projecting a positive attitude
because he’s taking a business photo. There’s not enough information to know whether the man
is happy. A divergent thinker is more likely to acknowledge the possibility that there are multiple
answers or none at all.

Take another example. What happens when you imagine a chair? Think about how it could be
used. It can be used in an office as a seat in front of the desk or between tables during a dinner
party. But that’s not all! You can use it in unconventional ways, like hanging it on the wall and
using it to display favorite books, photos, paintings, and even potted plants. You can also use two
chairs to create an instant bench or coffee table. The possibilities are endless!

Convergent thinking is the process of finding concrete and familiar solutions to problems.
Divergent thinking is the creative process of generating original ideas and new possibilities.
 It’s fairly easy to differentiate between the two. When given a straightforward problem, a
convergent thinker would search for one effective solution. A divergent thinker, on the other hand,
might come up with multiple solutions or simply say, ‘I don’t know.’ And although this may seem
like an oversimplification of how we think, extensive testing has uncovered these same patterns
repeatedly.

Divergent vs. convergent thinking: which is best?

Both modes of thinking are equally valuable, and there are advantages and disadvantages to both.
People who think divergently add color to an organization and encourage creative solutions by
looking at things differently. In contrast, convergent thinkers tend to look at the details
methodically and consider appropriate action. When it comes to solving problems, the trick is to
find a balance.

Convergent thinking increases performance speed. It helps to narrow problems down into smaller,
more manageable chunks. Efficiency is especially important when you’re under pressure and
deadlines are involved; it can prevent decision overload.

Divergent thinking increases flexibility in how you approach problems. Looking at a problem from
many angles gets your mind working in full gear. It helps you consider all possible options (even
if they seem completely unlikely). Divergence also encourages flexibility and out-of-the-box
thinking. And because the thought process is less limited, it produces stronger creative concepts
than convergent thinking would on its own.

Why you need both types of thinking

When you consider more scenarios and perspectives, you’re more likely to develop innovative
concepts with greater differentiation. And in the business world, strong concepts can withstand
common pitfalls that normally weaken an idea before development begins.

Divergence is important when we need to adapt and find new paths, but it slows down the process
of finding a solution. One style isn’t better than the other, but each is better suited to certain
situations. So ideally, when faced with a problem, you’d harness both at different times —
divergent thinking for creativity and convergent thinking for efficiency.

When do you use each?

Different types of projects call for different forms of creative problem-solving skills. So, in most
cases, you won’t use either thought process exclusively. Rather, it’s usually necessary to combine
both convergent and divergent thinking at different points in the creative process.
Convergent thinking involves narrowing down options until you find a single answer. For instance,
when brainstorming new projects, it’s good to start with many ideas and consider different
possibilities. Convergent thinking would help you apply criteria and sort through ideas to find the
most workable solutions.
To find balance in your creative problem-solving efforts, start with divergent thinking before you
move into convergent thinking. Working in this order gives you a better sense of what’s possible
and keeps the creative juices flowing before you impose focus and structure.

To summarize:

• Divergence and convergence are essentially flexible and focused types of thinking.
• Flexible thinking (divergence) is better suited for creative problem-solving, while focused
thinking (convergence) is better suited for executing plans.
• Divergent and convergent thinking should ideally both be used, but at different times.

Exercise:
Bringing divergent and convergent thinking together
While they each have their pros and cons, sometimes, one style will work better than the other,
depending on you’re particular project. However, if you can leverage both types of thinking at
once, your opportunities for creative problem-solving will only grow exponentially.
Here’s how:
1. First, start with divergent thinking. Look at all of your potential choices and brainstorm as many
ideas as possible. Try to look at the problem or concept from multiple angles. For instance, if
you’re brainstorming product or feature ideas, try to adopt the perspectives of different target
users.
2. Then, switch to convergent thinking. Think about the pros and cons of each option, analyzing them
in-depth. Try to develop a consistent method of comparing your options. This will help you decide
which ideas have better potential than others.
Once you’ve done this for all possible choices, you’ll have a clear winner! You could also start
with your best idea and examine it thoroughly to see where it leads you. If it’s not the perfect
solution, continue along until you get there or are left with no other options.

RED Model of Critical Thinking

• Recognize assumptions. Practice identifying the assumptions in material that you read
or news that you hear. What can be objectively proven and what is inferred? Where might there
be gaps in the logic? What information is important and relevant, and what isn't? What is
missing? Is there any information that needs to be included which isn't?

Why does it matter? This is the ability to separate fact from opinion. It is deceptively easy to listen
to a comment or presentation and assume the information presented is true even evidence was
given to back it up. Noticing and questioning assumptions helps to reveal information gaps or
unfounded logic. Taking it a step further, when we examine assumptions through perspective on a
topic.

How / When to use it: When you’re gathering information, listening to what people say, or
assessing a situation, think about what assumptions you have going in. Perhaps you trusted co-
 worker is providing reliable information – but is there really evidence to back it up? Learn to see
gaps in logic and opinion disguised as fact.

• Evaluate arguments. Practice carefully analyzing arguments presented. What is your

perspective on the evidence? Could someone else have a different perspective? Consider the
impacts of the arguments
from a range of different viewpoints (it can be useful to use a model like MILPECTITE -
Military, Information/data, Legal, Political, Economic/financial , Cultural/social,
Technology, Infrastructure, Time, and Environment - to organize your thoughts). How would
someone argue against your position? What merits are there to their arguments?
o Why does it matter? We often have problems sorting through conflicting information because
we unknowingly let our emotions or pride get in the way, or because we only hear what we
want to hear (confirmation bias). Being able to remain objective and sort through the validity
of different positions helps people draw more accurate conclusions.

o How / When to use it. The art of evaluating arguments entails analyzing information objectively
and accurately, questioning the quality of supporting evidence, and understanding how
emotions – yours or others – influence the situation or get in the way of objectivity. People may
quickly come to a conclusion simply to avoid conflict. Learn how to push all that aside, and
analyze information accurately and objectively.

• Draw conclusions. After you have considered all of the facts, what is the best possible
conclusion? Could there be any other conclusions? What new information might change your
conclusion? Does this conclusion seem sensible based on your common sense and experience?
What are the implications of this conclusion?

Why does it matter? People who possess this skill are able to bring diverse information together
to arrive at conclusions that logically follow from the available evidence, and they do not
inappropriately generalize beyond that evidence. Furthermore, they will change their position
when the evidence warrants doing so. They are often characterized as having “good judgment”
because of their quality decisions.

How / When to use it. This is the payoff. When you think critically, the true picture becomes
clear, and you can make the tough decision or attack the difficult problem.
Nurturing Critical Thinking- Through Mindfulness

Most people are forgetful; they are not really there a lot of the time. Their mind is caught in their
worries, their fears, their anger, and their regrets, and they are not mindful of being there. That
state of being is called forgetfulness—you are there but you are not there. You are caught in the
past or in the future. You are not there in the present moment, living your life deeply. That is
forgetfulness.

The opposite of forgetfulness is mindfulness. Mindfulness is when you are truly there, mind and
body together. You breathe in and out mindfully, you bring your mind back to your body, and you
are there. When your mind is there with your body, you are established in the present moment.
Then you can recognize the many conditions of happiness that are in you and around you, and
happiness just comes naturally.

The practice of mindfulness is complementary to critical thinking, thus, an individual can consider
their own thoughts and, consequently, actions. This, of course, is closely linked to the development
of individual responsibility. Parallels can also be found in the objectives of both practices.

Over the last few decades, the practice of mindfulness has spread throughout the world. It is this
great interest in mindfulness that illustrates particular deficits in (consumerist) society, which
places comfort, pleasure, earnings and success being high on one's list of priorities. This tends to
lead to a search for instant solutions, personal benefit, negligence, and, last but not least, an
absence of ethical instincts. Mindfulness thus wins recognition as one of many possible ways we
could put out this fire. The fact that it has taken big steps into numerous fields such as
psychotherapy, positive psychology and psychological counselling as well as being ever more
present in educational processes should not be surprising.

What is mindfulness?

Mindfulness is the basic human ability to be fully present, aware of where we are and what we’re
doing, and not overly reactive or overwhelmed by what’s going on around us.

While mindfulness is something we all naturally possess, it’s more readily available to us when
we practice on a daily basis.

Whenever you bring awareness to what you’re directly experiencing via your senses, or to your
state of mind via your thoughts and emotions, you’re being mindful. And there’s growing research
showing that when you train your brain to be mindful, you’re actually remodeling the physical
structure of your brain.
The goal of mindfulness is to wake up to the inner workings of our mental, emotional, and physical
processes.
How do I practice mindfulness and meditation?
Mindfulness is available to us in every moment, whether through meditations or mindful moment
practices like taking time to pause and breathe when the phone rings instead of rushing to answer
it.When you eat a favorite food, take the time to smell, taste and truly enjoy it. Live in the moment.
Try to intentionally bring an open, accepting and discerning attention to everything you do. Find
joy in simple pleasures.
Being mindful means having your mind on what you are doing. It's the opposite of rushing or
doing too many things at once. To be mindful, you slow down to take your time. You do one thing
at a time. You focus on what you're doing in a calm way.
 How to develop mindfulness Skills:
Steps to Mindfulness:
Mindfulness practice should be enjoyable, not work or effort. Do you have to make an effort to
breath in? You don’t need to make an effort. To breathe in, you just breathe in. Suppose you are
with a group of people contemplating a beautiful sunset. Do you have to make an effort to enjoy
the beautiful sunset? No, you don’t have to make any effort. You just enjoy it. The same thing is
true with your breath. Allow your breath to take place. Become aware of it and enjoy it.
Effortlessness. Enjoyment. The same thing is true with walking mindfully. Every step you take is
enjoyable. Every step helps you to touch the wonders of life, in yourself and around you. Every
step is peace. Every step is joy. That is possible.

• First Mindfulness Exercise: Mindful Breathing.

• Second Mindfulness Exercise: Concentration.
• Third Mindfulness Exercise: Awareness of Your Body.
• Fourth Mindfulness Exercise: Releasing Tension.
• Fifth Exercise: Walking Meditation.

First Mindfulness Exercise: Mindful Breathing: The first exercise is very simple, but the power,
the result, can be very great. The exercise is simply to identify the in-breath as in-breath and the
out-breath as out-breath. When you breathe in, you know that this is your in-breath. When you
breathe out, you are mindful that this is your out-breath. Just recognize: this is an in-breath, this is
an out-breath. Very simple, very easy. In order to recognize your in-breath as in-breath, you have
to bring your mind home to yourself. What is recognizing your in-breath is your mind, and the
object of your mind—the object of your mindfulness—is the in-breath. Mindfulness is always
mindful of something. When you drink your tea mindfully, it’s called mindfulness of drinking.
When you walk mindfully, it’s called mindfulness of walking. And when you breathe mindfully,
that is mindfulness of breathing.

Second Mindfulness Exercise: Concentration: The second exercise is that while you breathe in,
you follow your in-breath from the beginning to the end. If your in-breath lasts three or four
seconds, then your mindfulness also lasts three or four seconds. Breathing in, I follow my in-breath
all the way through. Breathing out, I follow my out-breath all the way through. From the beginning
of my out-breath to the end of my out-breath, my mind is alwayswith it. Therefore, mindfulness
becomes uninterrupted, and the quality of your concentration is improved. So the second exercise
is to follow your in-breath and your out-breath all the way through. Whether they are short or long,
it doesn’t matter. What is important is that you follow your inbreath from the beginning to the end.
Your awareness is sustained. There is no interruption. Suppose you are breathing in, and then you
think, “Oh, I forgot to turn off the light in my room.” There is an interruption. Just stick to your
in-breath all the way through. Then you cultivate your mindfulness and your concentration. You
become your in-breath. You become your out-breath. If you continue like that, your breathing will
naturally become deeper and slower, more harmonious and peaceful. You don’t have to make any
effort—it happens naturally.

Third Mindfulness Exercise: Awareness of Your Body : The third exercise is to become aware
of your body as you are breathing. “Breathing in, I am aware of my whole body.” This takes it one
step further. In the first exercise, you became aware of your in-breath and your out-breath. Because
you have now generated the energy of mindfulness through mindful breathing, you can use that
energy to recognize your body. “Breathing in, I am aware of my body. Breathing out, I am aware
of my body.” I know my body is there. This brings the mind wholly back to the body. Mind and
body become one reality. When your mind is with your body, you are well-established in the here
and the now. You are fully alive. You can be in touch with the wonders of life that are available
in yourself and around you.

This exercise is simple, but the effect of the oneness of body and mind is very great. In our daily
lives, we are seldom in that situation. Our body is there but our mind is elsewhere. Our mind may
be caught in the past or in the future, in regrets, sorrow, fear, or uncertainty, and so our mind is
not there. Someone may be present in the house, but he’s not really there, his mind is not there.
His mind is with the future, with his projects, and he’s not there for his children or his spouse.
Maybe you could say to him, “Anybody home?” and help him bring his mind back to his body.

So the third exercise is to become aware of your body. “Breathing in, I’m aware of my body.”
When you practice mindful breathing, the quality of your in-breath and out-breath will be
improved. There is more peace and harmony in your breathing, and if you continue to practice like
that, the peace and the harmony will penetrate into the body, and the body will profit. Fourth
Mindfulness Exercise: Releasing Tension The next exercise is to release the tension in the body.
When you are truly aware of your body, you notice there is some tension and pain in your body,
some stress. The tension and pain have been accumulating for a long time and our bodies suffer,
but our mind is not there to help release it. Therefore, it is very important to learn how to release
the tension in the body. In a sitting, lying, or standing position, it’s always possible to release the
tension. You can practice total relaxation, deep relaxation, in a sitting or lying position. While you
are driving your car, you might notice the tension in your body. You are eager to arrive and you
don’t enjoy the time you spend driving. When you come to a red light, you are eager for the red
light to become green light so that you can continue. But the red light can be a signal. It can be a
reminder that there is tension in you, the stress of wanting to arrive as quickly as possible. If you
recognize that, you can make use of the red light. You can sit back and relax—take the ten seconds
the light is red to practice mindful breathing and release the tension in the body.

So next time you’re stopped at a red light, you might like to sit back and practice the fourth
exercise: “Breathing in, I’m aware of my body. Breathing out, I release the tension in my body.”
Peace is possible at that moment, and it can be practiced many times a day—in the workplace,
while you are driving, while you are cooking, while you are doing the dishes, while you are
watering the vegetable garden. It is always possible to practice releasing the tension in yourself.

Fifth Exercise: Walking Meditation: When you practice mindful breathing you simply allow
your breath to take place. You become aware of it and enjoy it. Effortlessness. The same thing is
true with mindful walking. Every step is enjoyable. Every step helps you touch the wonders of
life. Every step is a joy. That is possible. You don’t have to make any effort during walking
meditation, because it is enjoyable. You are there, body and mind together. You are fully alive,
fully present in the here and the now. With every step, you touch the wonders of life that are in
you and around you. When you walk like that, every step brings healing. Every step brings peace
and joy, because every step is a miracle. The real miracle is not to fly or walk on fire. The real
miracle is to walk on the Earth, and you can perform that miracle at any time. Just bring your mind
home to your body, become alive, and perform the miracle of walking on Earth.

Nurturing Critical Thinking- Through Mindfulness and Resilience Skills

Mental health encompasses far more than the mere absence of disorders. There are a number of
dimensions when it comes to positive mental health, one of which is resilience.
Resilience is the process of being able to adapt well and bounce back quickly in times of stress.
This stress may manifest as family or relationship problems, serious health problems, problems in
the workplace or even financial problems to name a few.

Developing resilience can help you cope adaptively and bounce back after changes, challenges,
setbacks, disappointments, and failures.

Research has shown that resiliency is pretty common. People tend to demonstrate resilience more
often than you think. One example of resilience is the way we coped up the current pandemic
covid-19. The other example is the response of many Americans after the terrorist attacks of
September 11, 2001, and individuals’ efforts to rebuild their lives.

Demonstrating resiliency doesn’t necessarily mean that you have not suffered difficulty or distress.
It also doesn’t mean you have not experienced emotional pain or sadness. The road to resilience
is often paved with emotional stress and strain.

The good news is resilience can be learned. It involves developing thoughts, behaviors, and actions
that allow you to recover from traumatic or stressful events in life.

The Resilience Plan (The Four S’s)

Resilience is the ability to cope with whatever life throws at you, and bounce back stronger and
more steadfast than before. Resilient people work through life challenges using personal resources,
including social support, coping strategies, sagacity (which is the wisdom and insight that we hold
onto), and solution seeking. This exercise helps you draw on your resilience resources to build a
personal resilience plan, which you can use to help you combat any future challenges.

Part 1: My Past Sources of Resilience

Step 1. Recall a recent example of resilience Think about a time recently when you overcome a
challenge or set back in your life. Perhaps you injured yourself, or received some negative
feedback at work, or had an argument with a friend or family member. Briefly describe this
difficulty below.

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Step 2. Identify supportive people

What ‘supportive people’ in your life kept you standing when it would have been easier to fall
down? For instance, did you call an old friend, or ask a teacher for advice, or perhaps a parent or
grandparent gave you a pep talk. Write down who you called on for support in the top right cell
of the table in Appendix A.

Step 3. Identify strategies

What ‘strategies’ did you use to help yourself cope with any negative thoughts and feelings that
showed up in response to the difficulty? For example, did you meditate, or write in a gratitude
journal, or go for a walk, or listen to a particular song or type of music, or have a massage to
release tension. Write down the strategies you used in the bottom left cell of the table in Appendix
A.

Step 4. Identify sagacity

What ‘sagacity’ helped you bounce back from this difficulty? Sagacity is the wisdom and insight
that you hold onto. It can come from song lyrics, novels, poetry, spiritual writings, quotes from
the famous, the sayings of one’s grandparent, or learning from one’s own experience. Write down
your sagacity in the bottom right cell of the table in Appendix A.

Step 5. Identify solution-seeking behaviors

What solution-seeking behaviors did you display to help you actively deal with the problem? For
example, did you problem-solve, or seek out new information, or plan ahead, or negotiate, or speak
up and voice your opinion, or ask others for help. Write down the solution-seeking behaviors you
displayed in the top left cell of the table in Appendix A.

Part 2: My Resilience Plan

Step 6. Describe a current difficulty in the space below, describe a current difficulty or challenge
that you are facing.
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
________________________

Step 7. Apply the resilience plan to the current difficulty

Given the social supports, strategies, sagacity, and solution-seeking behaviors that helped you last
time, let us look at how you could use the same or similar resources to help you bounce back from
this current difficulty you are facing (identified in the previous step). Read through your completed
plan (Appendix A) and write down the skills, supports, strategies, and sagacity that could work
again for you in the blank resilience plan template in Appendix B. Allow some flexibility here in
the sense that the same type of social support/ strategy/ sagacity/ solution-seeking behavior could
be tweaked according to your current situation, for instance going to your manager rather than a
parent for support in the face of a work-related problem. An example of a completed resilience
plan is shown in Appendix C.

Step 8. Carry out your resilience plan

The next step is to put your resilience plan into action. To do this, consider the order in which to
use your different supports, strategies, sagacity, and solution-seeking behaviors: which resource
is most feasible to start with? Often the most feasible resource is the smallest step that you can
take, such as calling your partner. On your resilience plan (Appendix B), place the number 1 next
to the first resource you will use. Then, continue to number your different resources in the order
in which you would feasibly use them.
Then, go ahead an action your first resource, and continue to work through your resilience plan
(in order) until you have overcome this difficulty.
Once you have come through the other side, please move on to the next step.

Part 3: Evaluation
Step 9. Evaluate your resilience plan

Discuss the following:

■How was it for you to carry out your resilience plan? Did it help you bounce back from this
difficulty?
■What resources (specific skills/supports/strategies/sagacity) were most helpful to you? Why?
■What resources (specific skills/supports/strategies/sagacity) were least helpful to you? Why?
■Did you not use any resources, and if so, why?
■Is there anything you would like to add to your resilience plan?
■In what other areas of your life could you use your resilience plan? How might things improve
for you?

Appendix A: My Past Sources of Resilience Supports that kept you upright Strategies that kept
you moving Sagacity that gave you comfort and hope Solution-seeking behaviors you showed

Supports Strategies
that kept you upright that kept you moving

Sagacity Solution-seeking

that gave you comfort and hope behaviors you showed

Appendix B: My Resilience Plan

Supports Strategies
that kept you upright that kept you moving

Sagacity Solution-seeking
that gave you comfort and hope behaviors you showed

Appendix C: Example of a completed Resilience Plan

Difficult situation: Bad show in a job interview and did not get the job

Supports Strategies
that kept you upright that kept you moving
Called my friend/relative Went for a walk
Called my Mother Smiling Mind meditation
Calming breathing technique
Played with my friends
Did Journal/expressive writing
Listened Music

Sagacity Solution-seeking
that gave you comfort and hope behaviors you showed
Remembered that growth comes from mistakes Asked for feedback from job interviewers
“This too shall pass” – put that note in my copy Applied for 3x new jobs
Thought about what I could do differently took professional coaching for job interviewing
next time and wrote down on paper
Six Thinking Hats:

"Six Thinking Hats" is a way of investigating an issue from a variety of perspectives, but in a
clear, conflict-free way. It can be used by individuals or groups to move outside habitual ways of
thinking, try out different approaches, and then think constructively about how to move forward.

Source: https://www.onedaydesignchallenge.net/en/journal/six-thinking-hats-technique

Six thinking hats is a tool aimed at fostering creativity and improvement of abilities and
exploratory attitudes –quite useful in the design process.
Created approximately in 1983 by Edward de Bono, a writer and psychologist born in Malta and
a specialist in the field of thought, this technique exposes a methodology for discussions and group
decision-making, trying to simulate what happens inside the human brain using the simile of a hat.
Edward de Bono is mainly known for coming up with the term “lateral thinking”, a thinking
method that can be used as a technique for imaginative problem-solving.

Combined with lateral thinking, the Six Hats method provides the groups with materials to think
together more effectively and plan thinking projects in a cohesive way. Each one of the six hats
has a different color and symbolizes the different ways of observing reality. The method is simple:
each one of the participants can put on or take off one of the imaginary hats to indicate which type
of thinking he/she will be using (that is, the color under which he/she will express his/her opinion).

The white hat helps us to think in the most objective and neutral way possible. With this thought,
we need to focus on the available data, look at the information we have and learn from it.
With the red hat, we can express our feelings, intuition, and emotions, without the need for
justification.
The black hat is used to be critical in a negative way, thinking why something cannot go well.
With it we will activate the thought of judgment and caution, revealing the negative aspects of the
addressed issue.
With the yellow hat, unlike the black hat, we try to look at the positive aspects of a specific issue;
it will help us see why something is going to work and why it will offer benefits.
The green hat opens up creative possibilities and is deeply linked to lateral or divergent thinking.
And finally, the blue hat is the one controlling all other hats. It regulates the timing and the order
of the different topics. With this one, we discuss the thinking process and summarize what has
been said. In the end, the conclusions are written.
The Six Hats method can be used in sequence: first of all, to explore the problem, then to develop
a set of solutions and finally to select a solution through critical analysis. At times when a group
is stuck, this tool can be a trigger for a new way to see an idea.
"Six Thinking Hats" is a way of investigating an issue from a variety of perspectives, but in a
clear, conflict-free way. It can be used by individuals or groups to move outside habitual ways of
thinking, try out different approaches, and then think constructively about how to move forward.

Key Points
De Bono's Six Thinking Hats is a powerful technique for looking at decision making from different
perspectives.

It involves six distinct types of thinking, which you can do on your own or with your team. Each
thinking style is represented by a different hat:

Blue Hat: organization and planning

Green Hat: creative thinking

Red Hat: feelings and instincts

Yellow Hat: benefits and values

Black Hat: risk assessment

White Hat: information gathering

By "wearing" each of the Six Thinking Hats in turn, you can gain a rich understanding of the issues
you face – and the best ways forward. You also encourage everyone to be fully involved in the
decision-making process.

https://nulab.com/learn/strategy-and-planning/divergent-vs-convergent-thinking-how-to-find-
the-right-
balance/#:~:text=Convergent%20thinking%20is%20the%20process,to%20differentiate%20
between%20the%20two.
https://www.thinkwatson.com/the-red-model/red-critical-thinking-model
https://files.eric.ed.gov/fulltext/EJ1181191.pdf
https://www.mindful.org/meditation/mindfulness-getting-started/
https://uhs.berkeley.edu/sites/default/files/article_-_five_steps_to_mindfulness.pdf
https://positivepsychology.com/resilience-skills/
https://www.mindtools.com/ajlpp1e/six-thinking-hats
Module II: Problem-Solving
IDEAL problem-solving model

The IDEAL problem-solving model was developed by Bransford and Stein as a guide for
understanding and solving problems. This method is used in both education and industry. The
IDEAL problem-solving model consists of five steps: identifying the problem, describing the
outcome, exploring the possible strategies, anticipating the outcome, and looking back to learn.
Let us explore these steps in detail by considering them one by one.

Identify the problem - In this first step, you identify and understand the problem. To do this, you
evaluate which information is provided and available, and you identify the unknown variables and
missing information.

Describe the outcome - In this second step, you define the result you are seeking. This matters
because a problem might have multiple potential results, so you need to clarify which outcomes
in particular you are aiming for. Defining an outcome clarifies the path that must be taken to
solving the problem.

Explore possible strategies - Now that you have considered the desired outcome, you are ready
to brainstorm and explore different strategies and techniques to solve your particular problem.

Anticipate outcomes and act - From the previous step, you already have explored different
strategies and techniques. During this step, you review and evaluate them in order to choose the
best one to act on. Your selection should consider the benefits and drawbacks of the strategy and
whether it can ultimately lead to the desired outcome. After making your selection, you act on it
and apply the technique to the given problem.
Look and learn - The final step to solving problems with this method is to consider whether the
applied technique worked and if the needed results were obtained. Also, an additional step is
learning from the current problem and its methods to make problem solving more efficient in the
future.

Examples of problem-solving models and strategies

Here are some solved examples of the problem-solving models and strategies discussed above.

A string is 48cm long. It is cut into two pieces such that one piece is three times that of the other
piece. What is the length of each piece?
Solution: Let us work on this problem using the IDEAL problem-solving method.
Step 1: Identify the problem.
We are given a length of a string, and we know that it is cut into two parts, whereby one part is
three times longer than the other. As the length of the longer piece of string is dependent on the
shorter string, we assume only one variable, say x.
Step 2: Describe the outcome.
From the problem, we understand that we need to find the length of each piece of string. And we
need the results such that the total length of both the pieces should be 48cm.
Step 3: Explore possible strategies.
There are multiple ways to solve this problem. One way to solve it is by using the trial-and-error
method. Also, as one length is dependent on another, the other way is to form an equation to solve
for the unknown variable algebraically.
Step 4: Anticipate outcomes and act.
From the above step, we have two methods by which we can solve the given problem. Let's find
out which method is more efficient and solve the problem by applying it.
Method 1
For the trial-and-error method, we need to assume value(s) one at a time for the variable and then
solve for it individually until we get the total of 48.
That is, suppose we consider x=1.
Then, by the condition, the second piece is three times the first piece.
⇒3x=3(1)=3
Then the length of both pieces should be:
⇒1+3=4≠48
Hence, our assumption is wrong. So, we need to consider another value. For this method, we
continue this process until we find the total of 48. We can see that proceeding this way is time-
consuming. So, let us apply the other method instead.
Method 2
In this method, we form an equation and solve it to obtain the unknown variable's value. We know
that one piece is three times the other piece. Therefore, let the length of one piece be x. Then the
length of the other piece is 3x.
Now, as the string is 48cm long, it should be considered as a sum of both of its pieces.
⇒x+3x=48⇒4x=48⇒x=484⇒x=12
So, the length of one piece is 12cm. The length of the other piece is 3x=3(12)=36cm.
Step 5: Look and learn
Let's take a look to see if our answers are correct. The unknown variable value we obtained is 12.
Using it to find the other piece we get a value of 36. Now, adding both of them, we get:
⇒12+36=48.
Here, we got the correct total length. Hence, our calculations and applied method are right.

Reference: https://www.studysmarter.us/explanations/math/pure-maths/problem-solving-models-
and-strategies/
Barriers to Problem-Solving

Problem-solving can be challenging, especially when there are various barriers present. These
barriers can be perceptual, emotional, cultural, intellectual, expressive, stereotyping, and
unconscious biases. Here are some ways to deal with each of these barriers:

1. Perceptual and Emotional Barriers: Perceptual barriers are caused by how people perceive
or interpret things. Emotional barriers are caused by emotions like fear, anxiety, or anger,
which can make it difficult to think clearly. To overcome these barriers, it's important to
remain calm and focused. Take a step back from the problem, and try to view it from
different perspectives. Also, be aware of your emotions and how they may be affecting
your thinking.

2. Cultural and Environmental Barriers: These barriers are caused by differences in culture,
language, or environment. To overcome these barriers, it's important to be respectful of
different cultures and to try to understand their perspectives. Try to find common ground
and communicate in a way that is respectful and sensitive to cultural differences.

3. Intellectual and Expressive Barriers: These barriers are caused by a lack of knowledge or
an inability to express oneself effectively. To overcome these barriers, it's important to ask
questions and seek out information. Be willing to learn and to admit when you don't know
something. Also, work on developing communication skills, such as active listening and
clear expression.

4. Stereotyping: Stereotyping can occur when people make assumptions about others based
on their race, gender, or other characteristics. To overcome this barrier, it's important to
recognize when stereotyping is occurring and to challenge these assumptions. Try to see
people as individuals and not as members of a particular group.

5. Unconscious Biases: Unconscious biases are biases that we are not aware of, but they can
still affect our thinking and decision-making. To overcome these barriers, it's important to
become aware of our biases and to challenge them. Try to expose yourself to different
perspectives and experiences, and seek feedback from others to help identify biases that
you may not be aware of.

In summary, to deal with barriers in problem-solving, it's important to remain calm and focused,
be respectful of different perspectives, seek out information, develop communication skills,
challenge assumptions and biases, and expose yourself to different perspectives and experiences.
Module III: Techniques of
Problem-Solving
Fishbone or Ishikawa Diagram

PROBLEM SOLVING
Identify root causes of problems.

Ishikawa diagram is a great tool to help you solve problems by identifying their root causes.
Sometimes called also cause-and-effect or fishbone diagram, it was created by Japanese professor
Kaoru Ishikawa. It's especially effective for tackling complex problems.

How to use it

Building out this diagram consists of few simple steps. This can be done in a group as a workshop
but also just as well on your own.

1) Define the problem

Start with defining the problem and then drawing a line to the left or right of it (that's up to your
preference).

The line will be for adding factors in the next step.

2) Identify contributing factors or categories

List out the factors/categories that could be contributing to the problem you're solving. Plot them
along the main line.

You can come up with your own factors or you might use generic categories: People, Equipments,
Methods, Measurement, Material and Environment.
Categorising is very helpful for breaking down complex problems and looking at them from
different perspectives.

3) Find possible root causes related to each factor

Ask "Why is this happening?" Write down each idea as a line under the factor it relates to. First
principles thinking is useful here including the "Five whys" method.

Keep in mind that the problem might not have just one root cause but multiple. So it's important
to capture everything that might explain the problem, even if just partially.

At this point, you should have a complete diagram but no definitive answer yet.

4) Analyse the diagram

The most important step is looking at all the possible root causes and analysing them. The diagram
now provides a structure for your most important thinking and next steps.

There are many possibilities what you can do at this point. Perhaps you can gather more
data/evidence for each root cause candidate or immediately identify the most likely one and
quickly try to solve it. This will depend on your specific problems and identified possible causes.

Example

Now let's see how to apply this on a practical example.

Suppose you're a product manager and have to solve a trend of getting less and less new sign-ups.
You start with this definition and then identify contributing factors.
In this example, you identified landing page issues, competition and marketing as factors.

Now let's find specific possible root causes under each factor:

With all of these written down, you can begin to analyse where the problem originates. In this
example, you might first verify if the conversion rate is steady despite lower traffic. Then you
might audit your sign-up flow to find any leaks and possibly streamline it.
 This is a simplified example but this diagram can be definitely used for much more complex
problems.

Takeaway

Ishikawa diagram offers a simple framework for finding root causes of problems:

1. Define the problem

2. Identify contributing factors or categories
3. Find possible root causes related to each factor
4. Analyse the diagram

You'll create the diagram with the first three steps. It will then provide a structure for your analysis.

Reference: https://untools.co/ishikawa-diagram

Brainstorming

Brainstorming is a problem solving technique where a problem is broken down into smaller, more
manageable parts to develop different solutions for it. The problem can be anything from what to
have for dinner, where to go on vacation or which person in the office is stealing from the
communal coffee pot.

To brainstorm a problem, problem solvers gather a group of knowledgeable people about that
particular problem and ask them questions about it. They then take all of these answers and try to
find common themes among them – usually by drawing diagrams or writing lists – these themes
will lead them towards finding a solution to their problem. Brainstorming is also used to generate
ideas, especially those aimed at creative projects such as problem solving or an interface between
two parties.

The problem solvers can be anyone from business consultants to CEOs who problem-solve with
their own companies to friends trying to decide where they want to go for dinner. It's also used in
marketing problem solving, finding new markets for products/services, marketing strategies, and
how target audiences will respond (positively or negatively) to certain types of messaging.

A problem solver will break down the problem into smaller ones that are easier to solve, then
define problems until there is one left which they have no idea how the problem might solve. This
final problem is used as the basis for an answer. The main steps in brainstorming when problem
solving include:

1. Understanding the problem

2. Gathering information about the problem

3. Generating ideas about the problem

4. Evaluating and selecting ideas

5. Implementing the best idea

6. Reviewing the results of the brainstorming session

Brainstorming is used in business, problem-solving, marketing, and interface design contexts. It's
a problem solving technique that can be used by anyone with a problem to solve, and it's a great
way to get a group of people working together to find a solution. When used correctly,
brainstorming will lead you towards finding an answer to your problem.

Summarize:

1. What Is The Problem Solving Method Of Brainstorming?

2. What Are The Steps of the Brainstorming Process?

What Is The Problem Solving Method Of Brainstorming?

Brainstorming is a problem solving method that allows you to generate ideas in an uncontrolled
environment. Unlike other problem-solving methods, brainstorming does not produce effective
results if participants can pass judgment on the ideas presented. This problem-solving method is
used for all types of problems, ranging from big decisions like moving cities to smaller ones like
what gift to buy your friend for their birthday.

The first step in problem solving with brainstorming is getting participants together and
introducing them to the issue at hand through a summary or by showing it directly. Participants
should then be told that they will be given time, usually two minutes, before being asked to share
any thoughts about potential solutions. After this period of silence, participants are asked to share
the ideas they came up with, even if they seem entirely ridiculous. The brainstorming method does
not allow for any critique or judgment during the idea-sharing. It is important to accept every idea
that participants offer and thank them for their input when people finish speaking.

People may use the problem-solving method in various ways depending on what problem you're
trying to solve and who your audience is. For example, if you're planning a surprise birthday party
for your husband, brainstorming would help you develop gift ideas that he might like and then
schedule a celebration that fits his interests without him knowing about it beforehand. If you need
to plan out an entire project at work using this problem solving method, brainstorming will help
you develop problem-solving strategies and possible solutions.

The problem-solving method can be used for any problem that needs to be solved, even the ones
we don't typically think of as such. For example, problem-solving-oriented brainstorming may
help you decide which movie to see this weekend or what ingredients to add to make a fantastic
dish. It is also advantageous when planning something like a wedding: problem-solving-oriented
brainstorming will help determine how many guests will attend and where the ceremony and
reception should occur.

The problem-solving method involves everyone affected by whatever problem is being solved so
everyone can hear them and their input considered in the decision-making process. This results in
much more creative ideas and a higher chance of finding the best solution. Brainstorming is also
a problem solving method that can be used for people who are not used to problem solving. This
problem solving method is more relaxed than others and allows for mistakes, which can help
people feel more comfortable when brainstorming.
Brainstorming is a problem-solving method used in many different fields and for many other
purposes. It is essential to keep an open mind when using this problem solving method and accept
all ideas that participants offer, no matter how ridiculous they may seem. With enough time and
practice, brainstorming can help you find solutions to any problem.

The problem solving method of brainstorming helps us develop potential solutions by getting input
from everyone involved in the issue at hand, without judgment. The problem solving method of
brainstorming is used for all sorts of problems, depending on who is using it and what problem
they are trying to solve. Still, it only involves problem-solving-oriented brainstorming when there
is an objective. It can be applied to any issue that needs to be solved and allows people who may
not feel comfortable problem solving with other methods to express themselves freely. This
problem solving method requires time and practice before you can use it properly. However, once
mastered, it creates a creative environment where everyone's input will be considered equally,
leading to better results.

What Are the Steps of the Brainstorming Process?

When it comes to problem solving, brainstorming is one of the most popular methods. But what
are the steps involved in this process? Here's a look at what you need to do to get the most out of
brainstorming:

1. Define the problem. The first step is to define the problem you're trying to solve clearly. It will
help you stay focused and ensure that all ideas generated during the brainstorming session are
related to the issue at hand.

2. Encourage creativity. The next step is to encourage creativity among your team members. It
means giving them permission to think outside the box and develop unconventional solutions.

3. Generate ideas. Once everyone is feeling creative, you can start generating ideas. Don't be afraid
to develop wild concepts, as they might lead to more practical solutions. It's also a good idea to
create action items that you feel your team could work on for the problem at hand.

4. Refine ideas and select the best option. Once everyone has shared their ideas, it's time to narrow
down your choices to the most viable options available. It will give you a good starting point for
problem-solving so you can easily create the next

steps for each of these action items.

Questions:

1. What do you think is the best solution for solving a particular problem?

2. How many ideas do you typically come up with during brainstorming sessions?
 3. When should one use brainstorming sessions versus other types of problem-solving
methods?

4. Do you find that productivity decreases after completing a brainstorming session?

Reference: https://www.iienstitu.com/en/blog/a-problem-solving-method-brainstorming

Issue trees

Issue trees are basically maps of problems. They give you a clear and systematic way of looking
at the problem you need to solve. They help you break down a big problem into smaller, more
manageable ones, and prioritize certain parts of the problem. In other words, they're useful for the
"divide and conquer" strategy.

Issue trees are also great for communicating about a problem with others since they provide a map
of the problem.

There are two basic kinds of issue trees:

1. Problem trees – created by answering "Why?"

2. Solution trees – created by answering "How?"

How to create an issue tree

Problem tree

A good issue tree must cover the whole problem. It has to be rigorous. Here are some basic
principles for creating an issue tree.

1. Start breaking down the problem into separate categories/branches.

2. Use the MECE principle: mutually exclusive, collectively exhaustive.
o Mutually exclusive means there is no overlap between different parts of the tree. Collectively
exhaustive means they cover the whole problem.
3. Do not go into the small details (specific hypotheses): focus on capturing the broad categories that
make up the problem.
4. Apply the 80/20 rule: focus on the few parts of the problem that are most impactful.
o This is best to base on data, rather than your own hypotheses.

Solution tree

When you have singled out some specific parts of the problem that you want to focus on, you can
follow up with creating a solution tree.

1. Take the problem part you want to focus on and ask "How might we improve/fix this?"
2. Map out potential categories of the solution
3. Generate ideas within each category

The advantage of this structured way of thinking is that working with constraints will actually help
you generate more ideas.

Example

Let's see an example of creating an issue tree. Suppose you're working on a product and you're
seeing customers not adopting one of your key features. That will be the tree starting point.

We'll break it down to smaller branches that cover possible causes:

• Low adoption of feature X

o Customers don't know about the feature.
o Customers know about it, but still don't use it.
 For a first level of the tree, it's incredibly basic, but it's actually MECE – it's mutually exclusive
yet covers the whole problem.

Branching out further, we can eventually get this tree:

• Low adoption of feature X

o Customers don't know about the feature
▪ The feature is not discoverable in the product
▪ Customer's don't learn about the feature outside of the product
o Customers know about it, but still don't use it
▪ Customers haven't tried it yet
▪ They don't believe the feature can help them
▪ Customers tried it but decided not to use it
▪ The feature is not usable
▪ The feature is not working properly
▪ The feature doesn't support customer needs

We could investigate even further, but already we can see which part of the problem to start with.
In this case, focusing on the knowledge about the feature should be a high priority – there might
be nothing wrong with the feature, customers just don't know about it.

This is a nice example of how a very simple issue tree can help you break down a problem and
give you a starting point for solving it.

Takeaway

Issue trees are a great tool for approaching problems systematically by breaking them down. You
can create problem issue trees (by asking "why?") or solution issue trees (by asking "how?")
depending on where you are in the process of problem-solving.

Reference: https://untools.co/issue-trees
 Module IV: Using Tools of
Critical Thinking for taking a
Decision
Decision-Making

In psychology, decision-making is regarded as the cognitive process resulting in the selection of

a belief or a course of action among several alternative possibilities. Every decision-making
process produces a final choice that may or may not prompt action. Decision-making is the process
of identifying and choosing alternatives based on the values and preferences of the decision-
maker.

Decision-making can be regarded as a problem-solving activity terminated by a solution deemed

to be satisfactory. It is therefore a process which can be more or less rational or irrational and can
be based on explicit knowledge or tacit knowledge.

Critical Thinking: A Tool for Making Positive Decisions

Every day we need to make a number of decisions in our daily life, some of them have smaller or
some have larger impacts on our lives. For example, which shirt I wear or which movie to watch,
or which book to read first. We have to make decisions at each step of our life that makes it very
difficult for us to select the best choice every time. But there are certain ways through which we
can improvise our chances of choosing the best option. One of them is ‘critical thinking.’

Critical thinking means analyzing and evaluating the problem and forming a reasonable judgment
to solve that problem. A critical way is an approach to a question that allows us to deconstruct the
situation and reveal its hidden issues, which helps make appropriate decisions. Hence rather than
choosing options that feel right, critical thinking helps us to make the decision after scrutinizing
all available options by eliminating all other options that are not reliable or useful.

Action Plan

Following is the action plan, which we can use to think critically to solve various problems: -

1. Formulate the questions

While making the decision to choose between two options, it’s better if we ask ourselves why we
need these objects and what their utility is for us. If we understand the utility of these options, it
might help us understand their significance for our long-term goal, and hence, we choose the most
appropriate option, which will benefit the long run.

2. Gather complete information

It’s essential to have complete knowledge about the options between which we need to make a
decision. If we make decisions based on a lack of knowledge, there are higher chances that it might
get wrong. Hence, we must try to get information from good sources so that it won’t create
misjudgment and any bias while selecting the best option.

3. Application of collected information

The information we collected from various sources needs to use in the proper context to make the
best decision. Hence while making a decision, we must ask ourselves what concepts and
assumptions might applicable in this situation, is our interpretation of information is logically
sound. This helps to understand the entire background behind the process and helps to elimination
unreliable options.

4. Consider the implications

Before making any decisions, we must think about its implications for the short term as well as
long term. If we make decisions without considering implications, then it may create problems.
Some options look appealing for a shorter duration but have many negative consequences in the
long term. Hence considering the implications before making decisions helps to select viable
options.

5. Explore other’s points of view

Sometimes, our view about some topics may vary with others. While making appropriate
decisions, we must consider others who have a contradictory view with ours. We must understand
the background and reasons because of which they selected those options. This allows us to
explore other alternatives, evaluate our own choices, and make more informed decisions.
These five critical thinking tools are one of the many ways we can ease the process of decision-
making and option eliminating process in our daily lives. Critical thinking may not completely
remove the difficult decisions from our lives, but it can help us in the number of positive choices.
It provides us a tool through which we can analyze the day to day life information better and make
reliable decisions.

Ethical and Social Concerns

What is Ethics?
Ethics refers to standards and practices that tell us how human beings ought to act in the many
situations in which they find themselves—as friends, parents, children, citizens, businesspeople,
professionals, and so on. Ethics is also concerned with our character. It requires knowledge, skills,
and habits.

Six Ethical Lenses

If our ethical decision-making is not solely based on feelings, religion, law, accepted social
practice, or science, then on what basis can we decide between right and wrong, good and bad?
Many philosophers, ethicists, and theologians have helped us answer this critical question. They
have suggested a variety of different lenses that help us perceive ethical dimensions. Here are six
of them:

The Rights Lens

Some suggest that the ethical action is the one that best protects and respects the moral rights of
those affected. This approach starts from the belief that humans have a dignity based on their
human nature per se or on their ability to choose freely what they do with their lives. On the basis
of such dignity, they have a right to be treated as ends in themselves and not merely as means to
other ends. The list of moral rights—including the rights to make one's own choices about what
kind of life to lead, to be told the truth, not to be injured, to a degree of privacy, and so on—is
widely debated; some argue that non-humans have rights, too. Rights are also often understood as
implying duties—in particular, the duty to respect others' rights and dignity.

The Justice Lens

Justice is the idea that each person should be given their due, and what people are due is often
interpreted as fair or equal treatment. Equal treatment implies that people should be treated as
equals according to some defensible standard such as merit or need, but not necessarily that
everyone should be treated in the exact same way in every respect. There are different types of
justice that address what people are due in various contexts. These include social justice
(structuring the basic institutions of society), distributive justice (distributing benefits and
burdens), corrective justice (repairing past injustices), retributive justice (determining how to
appropriately punish wrongdoers), and restorative or transformational justice (restoring
relationships or transforming social structures as an alternative to criminal punishment).

The Utilitarian Lens

Some ethicists begin by asking, “How will this action impact everyone affected?”—emphasizing
the consequences of our actions. Utilitarianism, a results-based approach, says that the ethical
action is the one that produces the greatest balance of good over harm for as many stakeholders as
possible. It requires an accurate determination of the likelihood of a particular result and its impact.
For example, the ethical corporate action, then, is the one that produces the greatest good and does
the least harm for all who are affected—customers, employees, shareholders, the community, and
the environment. Cost/benefit analysis is another consequentialist approach.

The Common Good Lens

According to the common good approach, life in community is a good in itself and our actions
should contribute to that life. This approach suggests that the interlocking relationships of society
are the basis of ethical reasoning and that respect and compassion for all others—especially the
vulnerable—are requirements of such reasoning. This approach also calls attention to the common
conditions that are important to the welfare of everyone—such as clean air and water, a system of
laws, effective police and fire departments, health care, a public educational system, or even public
recreational areas. Unlike the utilitarian lens, which sums up and aggregates goods for every
individual, the common good lens highlights mutual concern for the shared interests of all
members of a community.
The Virtue Lens
A very ancient approach to ethics argues that ethical actions ought to be consistent with certain
ideal virtues that provide for the full development of our humanity. These virtues are dispositions
and habits that enable us to act according to the highest potential of our character and on behalf of
values like truth and beauty. Honesty, courage, compassion, generosity, tolerance, love, fidelity,
integrity, fairness, self-control, and prudence are all examples of virtues. Virtue ethics asks of any
action, “What kind of person will I become if I do this?” or “Is this action consistent with my
acting at my best?”

The Care Ethics Lens

Care ethics is rooted in relationships and in the need to listen and respond to individuals in their
specific circumstances, rather than merely following rules or calculating utility. It privileges the
flourishing of embodied individuals in their relationships and values interdependence, not just
independence. It relies on empathy to gain a deep appreciation of the interest, feelings, and
viewpoints of each stakeholder, employing care, kindness, compassion, generosity, and a concern
for others to resolve ethical conflicts. Care ethics holds that options for resolution must account
for the relationships, concerns, and feelings of all stakeholders. Focusing on connecting intimate
interpersonal duties to societal duties, an ethics of care might counsel, for example, a more holistic
approach to public health policy that considers food security, transportation access, fair wages,
housing support, and environmental protection alongside physical health.

Using the Lenses

Each of the lenses introduced above helps us determine what standards of behavior and character
traits can be considered right and good. There are still problems to be solved, however.

The first problem is that we may not agree on the content of some of these specific lenses. For
example, we may not all agree on the same set of human and civil rights. We may not agree on
what constitutes the common good. We may not even agree on what is a good and what is harm?

The second problem is that the different lenses may lead to different answers to the question “What
is ethical?” Nonetheless, each one gives us important insights in the process of deciding what is
ethical in a particular circumstance.

Making Decisions

Making good ethical decisions requires a trained sensitivity to ethical issues and a practiced
method for exploring the ethical aspects of a decision and weighing the considerations that should
impact our choice of a course of action. Having a method for ethical decision-making is essential.
When practiced regularly, the method becomes so familiar that we work through it automatically
without consulting the specific steps.

The more novel and difficult the ethical choice we face, the more we need to rely on discussion
and dialogue with others about the dilemma. Only by careful exploration of the problem, aided by
the insights and different perspectives of others, can we make good ethical choices in such
situations.

Social Concerns

Decision-making is often strongly influenced by social factors. In making decisions, people are
susceptible to the influence of those in their ‘in-group’, who commonly include others of the same
age, sex, ethnicity or religion, as well as friends, family members, colleagues and classmates. This
is a long-observed and commonly acknowledged phenomenon. A number of key sociological
concepts such as cooperation, trust/reciprocity, and social norms are related to decision making.

Cooperation and Competition

Due to the social aspect of human interaction, issues of cooperation and competition are inherent
to our daily decision making. From a Marxist perspective of sociology, competition is viewed as
the situation whereby “the surface appearance of fairness and effectiveness is seen as belied by
actual asymmetries of power and by the underlying contradictions and conflicts which competition
generates”. Cooperation, meanwhile, arises when there is “shared action to achieve a desired
goal”. Both of these concepts are relevant to decision making, as the decision we make can both
contribute to, or cause, either competition or cooperation. Elements of competition are inherent to
our chosen actions. From the viewpoint of cooperation, humans can make decisions that have the
consequence of increasing the well being of another human or community.

Trust and Reciprocity

From a sociological viewpoint, trust is defined as a degree of “confidence in the reliability of a

person or system”. Reciprocity, meanwhile, is defined as “any relationship between two parties or
things in which there is mutual action, giving and taking”. Both of these constructs are inherent to
human decision making. Trust is required in our decision-making processes because cooperative
exchanges are often separated by time. The decision to trust involves an element of risk for the
trustor and the occurrence of reciprocity is somewhat unknown. Indeed, rarely do actors have
complete knowledge of all possible outcomes and variables, meaning decisions are often made
tentatively and on an incremental basis. Thus, contained within every decision can be smaller
subconscious decisions that we are making every day based on our past experiences and our hopes
for future favorable events. Reciprocity is therefore an important part in our decision-making
processes.
Social Norms

Social norms are defined as a particular standard or rule that regulates the behavior that occurs in
a social setting. From a functionalist perspective of sociology, norms are important as they enable
social life to maintain order through shared expectations, socialization, and defined social roles.
Norms permeate all levels of society—from individual ways of acting through to the formulation
of entire legal or economic systems governing an entire community. When considering decision
making, there are a number of norms—or expectations—that may impact upon how our decision-
making processes and outcomes are viewed by other social actors. Our individual socialization—
through our families, peers, and communities— may alter our own views on particular concepts
such as ethics and conformity. Decision making is often influenced by socialization processes
ranging from individual factors (such as ego strength and locus of control) to situational factors
(such as organizational culture, group dynamics, and hierarchical structures). The influence of
social norms may also impact upon the way we view ‘alternative’ ways of making decisions. For
example, while intuition or ‘gut feelings’ are often used as a basis for professional decision
making, the use of such an intangible construct is not always accepted by other social actors.

Our socialization processes have taught some individuals to become judgmental about the
rationality of particular decisions if they do not fit within predetermined boundaries that are
deemed to be culturally and socially acceptable. It is therefore evident that for individuals to
function in a manner deemed ‘effective’ during social interaction, it is essential that they can take
into account relevant social norms. The sociological viewpoint allows a macro view of decision
making to be explored, yet specific examples from particular disciplines can provide more detailed
insight into this phenomenon. An introduction to decision making and the disciplines of
management, marketing, and education will now be provided.

Ownership of Decisions

A decision is not a choice. If you make a decision, you end a process. You make a choice, and a
new one begins. Owning your decisions allows you to learn from them. If you’re not taking
responsibility for your decision-making process, then how are you going to learn from it and avoid
repeating mistakes?

In organizational setup leadership is all about owning your decisions so your employees can trust
you. If your employees don’t believe that you know what you’re doing, they’ll be less likely to
follow your lead and take on the initiative of making decisions themselves

Personal Decision Making

A personal decision is one you make on your own and it's probably about something that concerns
you, too. In today's busy and hectic world, personal decision making quality can suffer and distract
us from the choices that bring real meaning to our life. Distractions consume our time, and
misinformation can send us off on wild goose chases. Our important life choices often get lost in
a sea of meaningless trivia, and before we know it, we can discover we are not living the life that
we intended.
What career should I choose? Where should I live? What relationships do I want to build? We are
constantly making and modifying decisions throughout our lifetime. These decisions have short
and long term consequences and their value is not known.

A personal decision is the process of exercising your free will by choosing what to do. This can
be contrasted with indecision or a situation where you are following the path set for you by an
external entity such as a society. In a free society, people have a great number of decisions to make
every day such that most action, inaction and communication you undertake is your decision. The
following are examples of personal decisions.
Barriers to Problem Solving

Obviously, not all decisions prove to be good ones. Sometimes that is due to unfortunate situations
that would have been impossible to foresee. Other times, however, the problem with the decision
could have been avoided. What are the potential barriers that we should be aware of during the
decision-making process?

Information-Related Barriers

Almost every decision is based at least in part on information that the decision maker trusts. The
reliability and use of that information can potentially lead to multiple problems.

One of the most obvious information-related problems occurs when the information is either
incorrect or incomplete. Trusting information that is faulty leads to many wrong deductions and
conclusions. If information is incomplete, even if the decision maker is aware of that fact,
uncertainty is introduced, and any decision based on that partial information could prove to be
misguided.

On the other hand, a contrasting problem can arise when there is too much information available.
An information overload can make it difficult to grasp the big picture and recognize which pieces
of information are most important. Another problem it can create is that large sets of data may
contain data that seems contradictory, leading the analyst to confusion or uncertainty and an
inability to synthesize it as a whole.

An overabundance of information can also lead to an inability to process everything to the decision
maker’s satisfaction. The result can be a harmful delay in the decision-making process as the over-
abundance of information is being considered for an undue amount of time. Similarly, if the
decision maker is excessively concerned to find every possible piece of information, the same
problem can arise.

Circumstance and Time-Related Barriers

A variety of difficulties can also arise from the circumstances in the midst of which a decision
maker must work. One of the most common issues is stress, which can arise from a great number
of sources. If the decision maker is experiencing abnormal levels of stress either in his personal
life or work environment that can often lead him to poor decisions that are out of character. He
may be less objective or less disciplined in following the decision-making process he usually
trusts. Recognizing high stress levels can provide the opportunity to intentionally protect against
those tendencies.

Also, when time is a restricting factor that often contributes to poor decisions. Unsurprisingly,
evidence suggests that when decision makers feel rushed for time, their judgment often suffers.
This is true even when there actually is sufficient time for the decision-making process: just the
feeling of a lack of time causes problems. It is important to commit to taking sufficient time for
decisions if at all possible (and it usually is).
Cognitive Biases

In this optical illusion all lines are parallel. Perceptual distortion makes them seem crooked.

Even when circumstances are conducive to good decisions and a sufficient supply of accurate
information is available, there are still a number of ways in which decision makers might be at
fault in their manner of judgment. For instance, their perception can be distorted. Understanding
how this happens is relevant for managers because they make many decisions daily. They must
also deal with many people making assessments and judgments.

Faulty ways of thinking during the analysis stage are often referred to as cognitive biases. A few
common ones are discussed below: -

Confirmation Bias

Confirmation bias is the tendency to seek out or prefer information and opinions that we believe
will confirm our own judgment. We want to be confirmed, so we pay more attention to information
that we think supports us, and we ignore or diminish the significance of information to the
contrary. We also tend to accept information at face value that confirms our preconceived views
while being critical and skeptical of information that challenges these views. For example, if you
believe your new diet of bananas and almonds is the healthiest foods to eat, you will search for
and accept any supporting information on the virtues of bananas and almonds, and ignore and
discount any contradictory information.
 Framing Bias

Framing bias is the tendency to be influenced by the way that a situation or problem is presented.
Framing a message with a positive outcome has been shown to be more influential than framing a
message with a negative outcome. For example, public health messages that depict nonsmokers
as happy and popular with sparkling white smiles have proven more effective than displaying a
smoker’s diseased lung. Numerous studies have demonstrated framing effects in our everyday
lives.

• We are more likely to enjoy meat labeled 75 percent lean meat as opposed to 25 percent fat.
• 93 percent of PhD students registered early when the framing was in terms of a penalty fee for late
registration, with only 67 percent registering early when the framing was in terms of a discount
for earlier registration.
• More people will support an economic policy if the employment rate is emphasized than when the
associated unemployment rate is highlighted.

It is important to be aware of this tendency because, depending on how a problem is presented,

we might choose an alternative that is disadvantageous simply because of how it is framed.

Hindsight Bias

Hindsight bias is the tendency to believe falsely that we would have accurately predicted the
outcome of an event after that outcome is actually known. When something happens and we have
accurate feedback on the outcome, we appear to be very good at concluding that this outcome was
relatively obvious. For example, a lot more people claim to have been sure about the inevitability
of who would win the Super Bowl the day after the game than they were the day before.

What explains hindsight bias? We are very poor at recalling the way an uncertain event appeared
before we realize the actual results of the event, but we can be exceptionally talented at
overestimating what we actually knew beforehand as we reconstruct the past. Just listen to a call-
in sports show after a big game, and hindsight bias will be on full display.

We seek out or prefer information and opinions that we believe will confirm our own judgment.
We want to be confirmed, so we pay more attention to information that we think supports us, and
we ignore or diminish the significance of information to the contrary.

Anchoring

Anchoring bias is a tendency to fixate on initial information and then fail to adjust for subsequent
information. When our opinion becomes anchored to that piece of information, we cannot stray
very far from it. For example, in a mock jury trial, one set of jurors was asked to make an award
in the range of $15 million to $50 million. Another set of jurors was asked for an award in the
range of $50 million and $150 million. The median awards were $15 million and $50 million
respectively with each set of jurors.

Halo Effect

Halo effect concerns the preferential attitude that we have toward certain individuals or
organizations. Because we are impressed with their knowledge or expertise in a certain area or
areas, we unconsciously begin to give their opinions special credence in other areas as well. This
would, for example, be exhibited when sports stars express their political opinions and the public
gives strong weight to what they say. There is no logical reason to think that they have sound
political opinions just because they have great skill in the realm of sports.

Overconfidence Bias

Overconfident bias is particularly easy to understand. It basically amounts to the idea that an
individual decision maker trusts his own judgment (usually his intuition) and allows that judgment
to override evidence to the contrary. His opinion counts more strongly to him than that of experts
who are more knowledgeable and often more than factual data that contradicts his views. From an
organizational standpoint, as managers and employees become more knowledgeable about an
issue, the less likely they are to display overconfidence. And overconfidence is most likely to arise
when employees are considering issues outside of their area of expertise.

Status-Quo Bias

Some decision makers prefer to avoid change and maintain the status quo. This desire, perhaps
unrecognized, often leads them to favor ideas that do not lead to significant changes. Evidence
and ideas that support change are neglected as a result.

Pro-Innovation Bias

Pro-innovative bias is the opposite of the status-quo bias. Rather than prefer things to stay the
same, the innovation bias gives preference to any new and innovative idea simply because it
represents something new. The feeling is that new ideas must be better than old ones. Even if no
objective evidence supports the new idea as useful and helpful, it is still attractive just by virtue
of being new.

Tools of Decision Making

There are processes and techniques to improve decision-making and the quality of decisions. The
following are just a few examples of decision making models.
 Pareto Analysis
Choosing the Most Important Changes to Make
Pareto Analysis is a very simple technique that helps you choose the most effective changes to
make.
It uses the Pareto principle - the idea that by doing 20% of the work you can generate 80% of the
advantage of doing the entire job. Pareto analysis is a formal technique for finding the changes
that will give the biggest benefits. It is useful where many possible courses of action are competing
for your attention.

How to use the Pareto Analysis tool:

To start using this tool, write out a list of the changes you could make. If you have a long list,
group it into related changes.
Then score the items or groups. The scoring method you use depends on the sort of problem you
are trying to solve. For example, if you are trying to improve profitability, you would score options
on the basis of the profit each group might generate. If you are trying to improve customer
satisfaction, you might score on the basis of the number of complaints eliminated by each change.
The first change to tackle is the one that has the highest score. This one will give you the biggest
benefit if you solve it.
The options with the lowest scores will probably not even be worth bothering with - solving these
problems may cost you more than the solutions are worth.
Example:
A manager has taken over a failing service center. He commissions research to find out why
customers think that service is poor.
He gets the following comments back from the customers:
1. Phones are only answered after many rings.
2. Staff seem distracted and under pressure.
3. Engineers do not appear to be well organized. They need second visits to bring extra parts. This
means that customers have to take more holidays to be there a second time.
4. They do not know what time they will arrive. This means that customers may have to be in all
day for an engineer to visit.
5. Staff members do not always seem to know what they are doing.
6. Sometimes when staff members arrive, the customer finds that the problem could have been
solved over the phone.

The manager groups these problems together. He then scores each group by the number of
complaints, and orders the list:
➢ Lack of staff training: items 5 and 6: 51 complaints
➢ Too few staff: items 1, 2 and 4: 21 complaints
➢ Poor organization and preparation: item 3: 2 complaints

By doing the Pareto analysis above, the manager can better see that the vast majority of problems
(69%) can be solved by improving staff skills.
 Once this is done, it may be worth looking at increasing the number of staff members.
Alternatively, as staff members become more able to solve problems over the phone, maybe the
need for new staff members may decline.
It looks as if comments on poor organization and preparation may be rare, and could be caused by
problems beyond the manager's control. By carrying out a Pareto Analysis, the manager is able to
focus on training as an issue, rather than spreading effort over training, taking on new staff
members, and possibly installing a new computer system. Key points:
Pareto Analysis is a simple technique that helps you to identify the most important problem to
solve. To use it:
➢ List the problems you face, or the options you have available
➢ Group options where they are facets of the same larger problem
➢ Apply an appropriate score to each group
➢ Work on the group with the highest score

Pareto analysis not only shows you the most important problem to solve, it also gives you a score
showing how severe the problem is.

Paired Comparison
Working Out the Relative Importance of Different Options
Paired Comparison Analysis helps you work out the importance of a number of options relative to
each other. It is particularly useful where you do not have objective data on which to base this
decision.
This makes it easy to choose the most important problem to solve, or select the solution that will
give you the greatest advantage. Paired Comparison Analysis helps you set priorities where there
are conflicting demands on your resources.
It is also an ideal tool for comparing "apples with oranges" - completely different options such as
whether to invest in marketing, a new IT system or a new piece of machinery. These decisions are
usually much harder than comparing three possible new IT systems, for example.

How to use the Paired Comparison worksheet tool:

For each comparison, you will decide which of the two options is most important, and then assign
a score to show how much more important it is.

Follow these steps to use this technique:

1. List the options you will compare. Assign a letter to each option.
2. Mark the options as row and column headings on the worksheet.
3. Note that the cells on the table where you will be comparing an option with itself have been
blocked out - there will never be a difference in these cells!
4. The cells on the table where you will be duplicating a comparison are also blocked out.
5. Within the remaining cells compare the option in the row with the one in the column. For each
cell, decide which of the two options is more important. Write down the letter of the more
 important option in the cell, and score the difference in importance from 0 (no difference) to 3
(major difference).
6. Finally, consolidate the results by adding up the total of all the values for each of the options.
You may want to convert these values into a percentage of the total score.

Example:
As a simple example, an entrepreneur is looking at ways in which she can expand her business.
She has limited resources, but also has the options she lists below:
➢ Expand into overseas markets
➢ Expand in home markets
➢ Improve customer service
➢ Improve quality

First she draws up the Paired Comparison Analysis table in Figure 1:

Then she compares options, writes down the letter of the most important option, and scores their
difference in importance. An example of how she might do this is shown in figure 2:
Finally she adds up the A, B, C and D values, and converts each into a percentage of the total.
This gives these totals:
A = 3 (37.5%)
B = 1 (12.5%)
C = 4 (50%)
D = 0.
Here it is most important to improve customer service (C) and then to tackle export markets (A).
Quality is not a high priority - perhaps it is good already.

Key points:
Paired Comparison Analysis is a good way of weighing the relative importance of different
courses of action. It is useful where priorities are not clear, or are competing in importance. This
tool provides a framework for comparing each course of action against all others, and helps to
show the difference in importance between factors.

Grid Analysis
Making a Choice Where Many Factors Must be Balanced
Grid Analysis (also known as Decision Matrix analysis) is most effective where you have a
number of good alternatives and many factors to take into account.

How to use the Grid Analysis worksheet tool:

The first step is to list your options and then the factors that are important for making the decision.
Lay the options out on the worksheet table, with options as the row labels, and factors as the
column headings.
Next, work out the relative importance of the factors in your decision. Show these as numbers.
We will use these to weight your preferences by the importance of the factor. These values may
be obvious. If they are not, then use a technique such as Paired Comparison Analysis to estimate
them.
The next step is to work your way across your table, scoring each option for each of the important
factors in your decision. Score each option from 0 (poor) to 3 (very good). Note that you do not
have to have a different score for each option - if none of them are good for a particular factor in
your decision, then all options should score 0. Now multiply each of your scores by the values for
your relative importance. This will give them the correct overall weight in your decision. Finally,
add these weighted scores for your options. The option that scores the highest wins!

Example:
A windsurfing enthusiast is about to replace his car. He needs one that not only carries a board
and sails, but also that will be good for business travel. He has always loved open-topped sports
cars. No car he can find is good for all three things. His options are:
➢ A four wheel drive (4x4), hard topped vehicle
➢ A comfortable 'family car'
➢ An estate car
➢ A sports car

Criteria that he wants to consider are:

➢ Cost
➢ Ability to carry a sail board at normal driving speed
➢ Ability to store sails and equipment securely
➢ Comfort over long distances
➢ Fun!
➢ Nice look and build

First, he draws up the table shown in Figure 1, and scores each option by how well it satisfies each
factor:
Figure 1: Example Grid Analysis Showing Unweighted Assessment of How Each Type of
Car Satisfies Each Factor

Next he decides the relative weights for each of the factors. He multiplies these by the scores
already entered, and totals them. This is shown in Figure 2:

Figure 2: Example Grid Analysis Showing Weighted Assessment of How Each Type of Car
Satisfies Each Factor

This gives an interesting result: Despite its lack of fun, an estate car may be the best choice.
If the wind-surfer still feels unhappy with the decision, maybe he has underestimated the
importance of one of the factors. Perhaps he should weight 'fun' by 7!
Key points:
Grid Analysis helps you decide between several options, while taking many different factors into
account. To use this tool, lay out your options as rows on a table. Set up the columns to show your
factors. Allocate weights to show the importance of each of these factors. Score each choice for
each factor using numbers from 0 (poor) to 3 (very good). Multiply each score by the weight of
the factor, to show its contribution to the overall selection. Finally add up the total scores for each
option. Select the highest scoring option.

PMI
Weighing the Pros and Cons of a Decision
PMI stands for 'Plus/Minus/Interesting'. It is a valuable improvement to the 'weighing pros and
cons' technique used for centuries. PMI is particularly useful when used in conjunction with other
decision making tools. Once you have arrived at a course of action using a decision making tool,
you can then apply the PMI analysis to check that the decision is actually going to improve the
situation.

How to use the PMI worksheet tool:

First set up column headings for Plus, Minus and Interesting.
In the column underneath 'Plus', write down all the positive results of taking the action. Underneath
'Minus' write down all the negative effects. In the 'Interesting' column write down the implications
and possible outcomes of taking the action, whether positive, negative, or uncertain.
By this stage it may already be obvious whether or not you should implement the decision. If it is
not, consider each of the points you have written down and assign a positive or negative score to
it appropriately. The scores you assign may be quite subjective. Once you have done this, add up
the score. A strong positive score indicates that an action should be taken while a strong negative
score indicates it should be avoided.

Example:
A young professional is deciding where to live. Her question is 'Should she move to the big city?'
She draws up the PMI table below:
She scores the table as 13 (Plus) - 18 (Minus) - 1 (Interesting) = - 6

For her, the comforts of a settled rural existence outweigh the call of the 'bright lights' - it would
be much better for her to live outside the city, but close enough to travel in if necessary.

Key points:
PMI is a good way of weighing the pros, cons and implications of a decision. When you have
selected a course of action, PMI is a good technique to use to check that it is worth taking.
To use the technique, draw up a table with three columns headed Plus, Minus and Interesting.
Within the table write down all the positive points of following the course of action, all the
negatives, and all the interesting implications and possible outcomes.

If the decision is still not obvious, you can then score the table to show the importance of individual
items. The total score should show whether it is worth implementing the decision.

Cost/Benefit Analysis
Evaluating Quantitatively Whether to Follow a Course of Action
You may have been intensely creative in generating solutions to a problem, and rigorous in your
selection of the best one available. However, this solution may still not be worth implementing,
as you may invest a lot of time and money in solving a problem that is not worthy of this effort.

Cost Benefit Analysis is a relatively simple and widely used technique for deciding whether to
make a change. As its name suggests, you simply add up the value of the benefits of a course of
action, and subtract the costs associated with it.

Costs are either one-off, or may be ongoing. Benefits are most often received over time. We build
this effect of time into our analysis by calculating a payback period. This is the time it takes for
the benefits of a change to repay its costs. Many companies look for payback over a specified
period of time, e.g. three years.

How to use the Cost/Benefit Analysis tool:

In its simple form, cost-benefit analysis is carried out using only financial costs and financial
benefits. For example, a simple cost benefit ration for a road scheme would measure the cost of
building the road, and subtract this from the economic benefit of improving transport links. It
would not measure either the cost of environmental damage or the benefit of quicker and easier
travel to work.

A more sophisticated approach to building a cost benefit model is to try to put a financial value
on intangible costs and benefits. This can be highly subjective (for example: Is an historic water
meadow worth $25,000, or is it worth $500,000 because if it’s environmental importance? What
is the value of stress-free travel to work in the morning?)

These are all questions that people have to answer, and answers that people have to defend.
 The version of the cost benefit approach we explain here is necessarily simple.
Example:
A sales director is deciding whether to implement a new computer-based contact management and
sales processing system. His department has only a few computers, and his salespeople are not
computer literate. He is aware that computerized sales forces are able to contact more customers
and give a higher quality of reliability and service to those customers. They are more able to meet
commitments, and can work more efficiently with fulfillment and delivery staff.

His financial cost/benefit analysis is shown below:

Costs: New computer equipment:

10 network-ready PCs with supporting software @ $1,225 each
1 server @ $1,750
3 printers @ $600 each
Cabling & Installation @ $2300
Sales Support Software @ $7500
Training costs:
Computer introduction - 8 people @ $ 200 each
Keyboard skills - 8 people @ $ 200 each
Sales Support System - 12 people @ $350 each

Other costs:
Lost time: 40 man days @ $ 100 / day
Lost sales through disruption: estimate: $10,000
Lost sales through inefficiency during first months: estimate: $10,000
Total cost: $55,800

Benefits:
➢ Tripling of mail shot capacity: estimate: $20,000 / year
➢ Ability to sustain telesales campaigns: estimate: $10,000 / year
➢ Improved efficiency and reliability of follow-up: estimate: $25,000 / year
➢ Improved customer service and retention: estimate: $15,000 / year
➢ Improved accuracy of customer information: estimate: $5,000 / year
➢ More ability to manage sales effort: $15,000 / year

Total Benefit: $90,000/year

Payback time: $55,800 / $90,000 = 0.62 of a year = approx. 8 months

Inevitably the estimates of the benefit given by the new system are quite subjective. Despite this,
the sales director is very likely to introduce it, given the short payback time.
Key points:
Cost/Benefit Analysis is a powerful, widely used and relatively easy tool for deciding whether to
make a change.
To use the tool, first work out how much the change will cost to make. Then calculate the benefit
you will receive from it.
Where costs or benefits are paid or received over time, work out the time it will take for the benefits
to repay the costs.
Cost/Benefit Analysis can be carried out using only financial costs and financial benefits. You
may, however, decide to include intangible items within the analysis. As you must estimate a value
for these, this inevitably brings an element of subjectivity into the process.

SWOT Analysis
Identifying Strengths, Weaknesses, Opportunities and Threats
The SWOT analysis is an extremely useful tool for understanding and decision-making for all
sorts of situations in business and organizations. SWOT is an acronym for Strengths, Weaknesses,
Opportunities, and Threats. The SWOT analysis headings provide a good framework for
reviewing strategy, position and direction of a company or business proposition, or any other idea.
Completing a SWOT analysis is very simple. SWOT analysis also works well in brainstorming
meetings. Use SWOT analysis for business planning, strategic planning, competitor evaluation,
marketing, business and product development and research reports. You can also use SWOT
analysis exercises for team building games.

A SWOT analysis is a subjective assessment of data which is organized by the SWOT format into
a logical order that helps understanding, presentation, discussion and decision-making. The four
dimensions are a useful extension of a basic two heading list of pro's and con's
SWOT analysis can be used for all sorts of decision-making, and the SWOT template enables
proactive thinking, rather than relying on habitual or instinctive reactions.

The SWOT analysis template is normally presented as a grid, comprising four sections, one for
each of the SWOT headings: Strengths, Weaknesses, Opportunities, and Threats. The SWOT
template includes sample questions, whose answers are inserted into the relevant section of the
SWOT grid. The questions are examples, or discussion points, and obviously can be altered
depending on the subject of the SWOT analysis. Note that many of the SWOT questions are also
talking points for other headings - use them as you find most helpful, and make up your own to
suit the issue being analyzed. It is important to clearly identify the subject of a SWOT analysis
because a SWOT analysis is a perspective of one thing, be it a company, a program, a proposition,
an idea, a policy method, option, etc.

Be sure to describe the subject for the SWOT analysis clearly so that people can contribute to the
analysis, and those seeing the finished SWOT analysis properly understand the purpose of the
SWOT assessment and implications.
The following SWOT analysis example is based on a business-to-business manufacturing
company, who historically rely on distributors to take their products to the end user market. The
opportunity, and therefore the subject for the SWOT analysis, is for the manufacturer to create a
new company of its own to distribute its products direct to certain end-user sectors, which are not
being covered or developed by its normal distributors.
 References:
• https://timesofindia.indiatimes.com/readersblog/zafarreads/embracing-forgiveness-25820/
• https://www.scu.edu/ethics/ethics-resources/a-framework-for-ethical-decision-making/
• Decision Making in the Social Sciences, DOI:10.1007/978-1-4614-6708-3_1, In book: Adaptive
Decision Making and Intellectual Styles (pp.1-34) (social concerns taken from this article)
• https://www.fcps.net/cms/lib/KY01807169/Centricity/Domain/3962/Budget%20and%20Staffing
/decision_tools.pdf (for tools of decision making)