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Problem Solving

How Smart Companies Get Smarter: Seek and Solve Systemic Deficiencies

August 26, 2016 By Nagesh Belludi Leave a Comment

At Toyota, as cars roll off the assembly line, they go through a final inspection station staffed by astute visual and tactile inspectors. If these inspectors spot a paint defect, they don’t just quietly fix the problem merely by touching up the paint to satisfy the customer or their plant manager.

As part of Toyota’s famed kaizen continuous improvement system, floor workers identify the systemic causes that led to the specific defect on the specific car. They then remedy the root cause of the problem so it won’t happen again.

Fostering an atmosphere of continuous improvement and learning

Most companies cherish employees who are watchful of problems and take it upon themselves to detect and solve problems without criticism or complaint. A software company, for example, may treasure a programmer who observes an unforeseen coding mistake, and swiftly develops a patch to keep her project moving forward.

In contrast, companies like Toyota who are obsessive about quality improvement, organizational learning, and developing collective intelligence don’t reward or tolerate such quiet fixers.

At companies that have adopted the kaizen philosophy, continuous improvement originates from the bottom up through suggestion systems that engage and motivate floor employees to look out for systemic problems, raise quality concerns, and help solve those problems. These companies encourage their employees to actively seek small, simple, and incremental improvements that could result in real cost savings, higher quality, or better productivity. According to Taiichi Ohno, the legendary Japanese industrial engineer identified as the father of the Toyota Production System, “Something is wrong if workers do not look around each day, find things that are tedious or boring, and then rewrite the procedures. Even last month’s manual should be out of date.”

Idea for Impact: To develop collective intelligence and build smarter organizations, discourage employees from heroically patching up recurring problems. Instead, encourage them to find, report, analyze, experiment, and fix systemic problems to prevent their recurrence.

Wondering what to read next?

  1. How Toyota Thrives on Imperfection
  2. Lessons from Toyota: Go to the Source and See for Yourself
  3. What Elon Musk and Jeff Bezos Learn “On the Floor”
  4. Learning from the World’s Best Learning Organization // Book Summary of ‘The Toyota Way’
  5. Heartfelt Leadership at United Airlines and a Journey Through Adversity: Summary of Oscar Munoz’s Memoir, ‘Turnaround Time’

Filed Under: Business Stories, Leadership, Managing Business Functions, Mental Models Tagged With: Japan, Leadership, Problem Solving, Quality, Toyota

How to Solve a Problem By Standing It on Its Head

July 19, 2016 By Nagesh Belludi 1 Comment

Fixed Mental Set or Fixation

Psychologists use the terms ‘fixation’ and ‘fixed mental set’ to describe a person’s inability to see his/her problem from a fresh perspective. Fixation impedes problem-solvers from approaching problems from a different angle and from finding novel solutions.

Fixation is a persistent impasse in problem-solving in which predispositions towards a previously-reliable process, unwarranted postulations, unjustifiable assumptions, conventional thinking in identifiable contexts (called Einstellung Effect,) or recent experiences block awareness of possible solutions that may exist within other contexts. A period of rest, entertainment, or exposure to an alternative environment frequently can dissipate fixation.

Problem Reversal in Problem-Solving

If you’re stuck on a problem and can’t solve it because you’re fixated on a reliable process, try reversing the problem to reframe your thinking and consider alternate perspectives.

As the following three case studies illustrate, reversing a problem simply involves taking a problem and turning it on its head.

  • A top-level executive at a large American corporation loved his job, his company, his employees, and his salary. However, he despised his boss. The executive and his boss were both long tenured; neither was likely to move out of their jobs anytime soon. The executive decided to find a new job at a different company. A headhunter assured the executive that a new job could be easily arranged. While speaking to his wife in the evening, the executive realized that he could easily reverse the problem. So he returned to the headhunter the next day and provided the boss’s name. Within days, the headhunter found an appealing new job for the unwary boss, who accepted. The executive then got his boss’s job and was even more content with his career.
  • A herd of sheep was moving slowly along a narrow country lane that was surrounded by high banks. An ambulance in a great hurry came up behind the herd and requested the shepherd to move his sheep to the side so that the ambulance could drive through. The shepherd declined because getting the ambulance past the sheep would be slow and he wasn’t sure of keeping all his sheep out of the way of the ambulance on a narrow lane. Instead, he reversed the problem: he got the sheep past the ambulance. He asked the ambulance to halt and then gently turned the herd round and guided it back past the stationary ambulance.
  • An ethical used-car salesman loathed his job because he felt compelled to sell cars with problematic features to unsuspecting buyers. He was eager for a career change, but the only thing he knew was cars. Therefore, he reversed his problem: he started a new business of locating, inspecting, and recommending used cars to prospective buyers. For a reasonable fee, he helped car buyers by scrutinizing used cars, listing current and prospective problems, and offering an estimate for repairs. His business boomed and he was much happier than he was as a used-car salesman.

Idea for Impact: Solve Problems by Reversing Them

When you’re stuck and can’t see how to solve the problem at hand, try reversing it or “standing the problem on its head.” Reversal as a problem-solving technique can free you from old ways of looking at problems.

Wondering what to read next?

  1. The “Ashtray in the Sky” Mental Model: Idiot-Proofing by Design
  2. The Akbar-Birbal Parable of the Pulling of the Emperor’s Beard Is a Master Class in Critical Thinking
  3. The Solution to a Problem Often Depends on How You State It
  4. Defect Seeding: Strengthen Systems, Boost Confidence
  5. This is Yoga for the Brain: Multidisciplinary Learning

Filed Under: Mental Models, Sharpening Your Skills Tagged With: Creativity, Critical Thinking, Decision-Making, Mental Models, Problem Solving, Thinking Tools, Thought Process, Wisdom

You Can’t Develop Solutions Unless You Realize You Got Problems: Problem Finding is an Undervalued Skill

June 21, 2016 By Nagesh Belludi Leave a Comment

Problem finding plays an important role in creative thinking

Problem finding is one of the most significant parts of problem solving. However, it tends to be an underappreciated skill. Many managers naively consider it strange to encourage employees to look for problems at work: “Why look for new problems when we’ve got no resources to work on ones we’ve already identified?”

Many courses and books on problem solving and creativity overlook problem finding. Many educational resources tend to assume that problem solving really begins only after problems have been identified.

Problem-identification lead to the invention of the ballpoint pen

The story of the invention of the ballpoint pen demonstrates the importance of problem finding. Had the inventors not recognized a problem with the existing writing instruments of their day, they would not have developed their invention.

In the 1920s, Hungarian journalist Laszlo Biro spent much time proofreading and checking for errors in others’ writings. To communicate these errors to the authors, Laszlo could not use pencils because their impressions fade quickly. He tried using a fountain pen, but the ink from the fountain pen dried slowly and often left smudges on paper.

Laszlo observed that the ink used in newspaper printing dried quickly and left the paper smudge-free. When he tried using that ink in his fountain pen, however, the ink was too viscous to flow into the tip of the fountain pen.

Laszlo then collaborated with his chemist-brother Gyorgy Biro to invent a new pen tip consisting of a ball that was enclosed within a socket. As the ball rolled inside the socket, the ball could pick up ink from a reservoir or cartridge and then continue to roll to deposit the ink on the paper. The Biro brothers thus invented the ballpoint pen. The company they created is now part of the BIC Company. The ballpoint pen continues to be called a ‘Biro’ in some countries.

Often, creativity is the outcome of discovered problem solving

Greek Philosopher Plato famously wrote in The Republic, “Let us begin and create in idea a State; and yet a true creator is necessity, which is the mother of our invention.”

One reason we fail to identify problems is that we do not stop to think about improving various situations that we encounter. Very often, these problems are directly in front of us; we need to consciously identify them and convert them into opportunities for problem solving. Instead, we tend to take inconveniences and unpleasant situations for granted and assume they are merely “facts of life.”

  • The grain mill was not invented until somebody in antiquity identified the ineffectiveness of two hours of pounding grain to make a cup of flour.
  • The world’s first traffic lights were installed around the British Houses of Parliament in London only after somebody thought of the problem of traffic congestion. In other words, up until the problems from congestion were identified in the 1860s, no one attempted to systematically consider how the problem might be solved.
  • James Watt invented his seminal separate-condenser steam engine after discovering an interesting problem with the Newcomen steam engine. In 1763, when Watt was working as an instrument maker at the University of Glasgow, he was assigned to repair a model of a Newcomen engine for a lecture-demonstration. Watt initially had difficulty getting the Newcomen engine to work because its parts were poorly constructed. When he finally had it running, he was surprised at its efficiency. Watt observed that the engine was constantly running out of coal because the constant heating and cooling of the cylinder resulted in a large waste of energy. Watt then devised a system whereby the cylinder and the condenser were separate. This led to his invention of the “steam engine” (or, more precisely, the separate-condenser steam engine.)
  • As I mentioned in a previous article on the opportunities in customers’ pain points, crispy potato chips were invented only when Chef George Crum of New York’s Saratoga Springs attempted to appease a cranky customer who frequently sent Crum’s fried potatoes back to the kitchen complaining that they were mushy and not crunchy enough. Decades later, Laura Scudder invented airtight packaging for potato chips only after becoming conscious of customers’ complaints that chips packaged in metal containers quickly go stale and crumble during handling.

If problems are not identified, solutions are unlikely to be proposed

It pays to keep your eyes open and look at inconveniences, difficulties, and troubles as creative problems to be solved. Don’t ignore these merely as facts of life.

Curiosity, intrigue, and motivation influence problem finding (and problem solving.) One of the easiest ways to develop your skills in problem finding is to ponder at anything around you and wonder why those gadgets and contraptions were ever invented. Analyze carefully and you’ll learn that the first step taken by the inventors of these objects was the identification of the problems the objects were designed to solve.

When you look around various objects in your life, think about what life was before these objects were invented. What problems could these inventions have solved? Why was the zipper invented? What problems motivated Bjarne Stroustrup to create C++? What was internet search like before Google? How did commerce transpire before the advent of coins and bills and money?

Some people make a career out of problem finding. Managers who want to know if their organizations are running efficiently frequently hire consultants to look for problems that managers do not know exist in their businesses.

And finally, if you want to become an inventor or an entrepreneur, try to start with problems you already have in your work or in your life. Ideally, identify problems shared by a large number of people to increase the probability that your inventions will be put in widespread use.

Idea for Impact: A creative solution to a problem often depends on first finding and defining a creative problem. Very often, the solution to a problem becomes obvious when the problem has been properly identified, defined, and represented.

Wondering what to read next?

  1. Four Ideas for Business Improvement Ideas
  2. Howard Gardner’s Five Minds for the Future // Books in Brief
  3. Finding Potential Problems & Risk Analysis: A Case Study on ‘The Three Faces of Eve’
  4. Van Gogh Didn’t Just Copy—He Reinvented
  5. Creativity by Imitation: How to Steal Others’ Ideas and Innovate

Filed Under: Mental Models, Sharpening Your Skills Tagged With: Artists, Creativity, Critical Thinking, Luck, Mental Models, Problem Solving, Scientists, Thinking Tools, Thought Process, Winning on the Job

Creativity & Innovation: The Opportunities in Customer Pain Points

September 15, 2015 By Nagesh Belludi Leave a Comment

The Opportunities in Customer's Pain Points

Ellis Paul Torrance, the American psychologist who devoted his career to researching and teaching creativity, observed that “the process of sensing gaps or disturbing missing elements and formulating hypotheses” is pivotal to the creative process.

This is especially true of solving customer’s problems. Many innovative ideas are born of a reliable formula: prudent attention to and empathy with customers’ experiences, as well as applying resourceful imagination to solve customers’ pain points.

Many an innovator—either as a provider or as a consumer—develops deep empathy for customers’ pain points and sees an underexploited customer-need for convenience. The innovator contemplates, “This customer’s experience does not have to be expensive, protracted, hard, or inferior, as it is with the incumbent provider.” The innovator then uses his/her imagination to convert that understanding into a business idea with broad potential.

Consider the following cases of innovation that could be traced back to customer pain points:

  • Crispy Potato Chips. Legend has it that in the 1850s, Chef George Crum of New York’s Saratoga Springs created potato chips. A cranky customer at Moon’s Lake House frequently sent Crum’s fried potatoes back to the kitchen complaining that they were mushy and not crunchy enough. To appease the customer, Crum sliced the potatoes as thin as possible and deep-fried them. The customer loved them. Before long, “Saratoga Chips” became popular throughout New England.
  • Airtight Packaging for Potato Chips. When potato chips were first mass-produced for home consumption, they were packaged and distributed in metal containers, in which the chips would quickly go stale. During the 1920s in Monterey Park, California, Laura Scudder conceived of packaging potato chips in sealed bags. Scudder’s employees ironed wax paper into the form of bags and fill them up with potato chips. This airtight packaging not only kept the chips fresh and crisp longer, but also reduced crumbling. After the invention of the moisture-proof cellophane wrap by DuPont a few years later, chips were packaged in polymer bags. Then, nitrogen gas was blown in to prevent oxidation, extend shelf life, and prevent chips from being crushed as they were handled and distributed.
  • Netflix. At the video rental chain Blockbuster, customers who were paying the most in late fees were also the company’s most prolific renters. Even as they continued to patronize Blockbuster, these customers vented their frustration to Blockbuster’s employees, as well as to other existing and potential customers. In fact, in the ’90s, almost $300 million or 20% of Blockbuster’s pretax profit came from late fees. In 1997, Reed Hastings, one devoted Blockbuster customer, was charged $40 in late fees on a VHS tape of the movie Apollo 13. Frustrated by his fees, Hastings started Netflix, a mail-distribution movie-rental service. As soon as the business caught on, Hastings eliminated late fees. Netflix grew quickly, drove Blockbuster into bankruptcy in 2010, and is now valued at $50 billion.
  • Google News. After 9/11, Google engineer Krishna Bharat and his teammates repeatedly visited ten to 15 news sites looking for a wide range of news reports. Using Google’s legendary “20% Time” policy that allows employees to spend one day a week on side projects and collaborate beyond their immediate teams, Bharat wrote an artificial intelligence software to crawl thousands of news websites, cluster news articles based on topics and keywords, and aggregate a summary. Other engineers at Google loved Bharat’s prototype software and joined the effort to build Google News.
  • Corning’s Gorilla Glass for Smartphones. By 2007, cell phone makers and consumers were frustrated with the screens on their cell phones. The plastic screens broke too easily when the handsets were dropped, and keys and other objects left deep scratches. Sensing a business opportunity, some engineers at Corning dug into their corporate archives. They dredged up the formulation of a super-strong, flexible glass, Chemcor, which was unsuccessfully prototyped for automobile windshields during the 1960s. The engineers spent $300,000 to produce a trial run of Chemcor and discussed the results with cell phone manufacturers. The resulting cell phone glass was called Gorilla Glass and was widely adopted by Samsung, LG, Motorola, and other cell phone manufacturers. Gorilla’s thinness, strength, and resistance to scratches became the defining feature of touch-screen operation. Later Gorilla Glass became a core component on the iPhone, smartphones, tablets, and other portable devices. For Corning, Gorilla Glass has become a significant revenue stream.
  • Uber. In 2008, during a snowy night on a trip to attend a tech conference in Paris, American entrepreneurs Garrett Camp and Travis Kalanick had trouble getting a cab. Garrett purportedly said in frustration, “Why can’t we just tap a button and get a ride?” Before long, during a brainstorming session on ideas for new startups, Camp and Kalanick thought of starting a taxi company with a smartphone app to summon taxis. Instead, they built an app to hail taxi-rides on-demand and opened their app for use by established taxi companies as well as by casual autonomous drivers. In 2010, they launched UberCab in San Francisco. Uber is now worth $50 billion and operates in over 300 cities around the world.

Idea for Impact: Transform Customer Pain Points into Customer Delight

Customer pain points are a consistent pointer to potential opportunities not least because customers are usually willing to pay a premium to have their frustrations with a product or a service resolved.

Discover what opportunities may exist in your customers’ pain points. Examine product- and service-features that your customers find inadequate, more urgent, unpleasant, frustrating, or otherwise troubling. Consider how you could transform those product- and service-deficiencies into innovative features.

Don’t just satisfy customers; delight them by becoming more sensitive to their problems and reducing or eliminating their pain points.

Wondering what to read next?

  1. Make ‘Em Thirsty
  2. Restless Dissatisfaction = Purposeful Innovation
  3. What Taco Bell Can Teach You About Staying Relevant
  4. Enterprise Begins in Annoyance: How One Miserable Vacation Sparked a Global Hotel Chain
  5. Four Ideas for Business Improvement Ideas

Filed Under: Mental Models, Sharpening Your Skills Tagged With: Creativity, Customer Service, Innovation, Parables, Persuasion, Problem Solving, Skills for Success, Thinking Tools, Winning on the Job

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About: Nagesh Belludi [hire] is a St. Petersburg, Florida-based freethinker, investor, and leadership coach. He specializes in helping executives and companies ensure that the overall quality of their decision-making benefits isn’t compromised by a lack of a big-picture understanding.

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