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Making Successful Business Decisions

      How to Negotiate Conflicting
       Opinions to Set Direction


                 Presenter: Larry T. Barnard


    ProjectWorld*BusinessAnalystWorld Toronto 2009



                                                         ®



                                                     ®




                                                         ®
Objectives



• Increase personal effectiveness through integrative thinking


• Forge a four-step process to integrate multiple points of view


• Facilitate the “Six Hats” theory to decision analysis




                                                                                                                        ®
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                     © Copyright: All rights reserved. Not to be reproduced without prior written consent.
Divided by Perspective


• When confronted by decisions, individuals are influenced by their views of
  reality, including:
   — Personal values, mental perspective, religious and political
       beliefs, fears, tolerance for risk, etc.
• When facilitating group discussions for decision making, one must be
  aware of key mental barriers




                                                                                                                         ®
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Divided by Perspective
(continued)

• Three common barriers:
  — Arbitrary coherence, made up of imprinting and anchors based on first
    impressions
  — Stereotypes that drive expectations
  — Expectations that alter our subjective and objective experiences


          Boundaries between beliefs and reality blur objectivity
          and decision-making ability




                                                                                                                        ®
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Arbitrary Coherence


• People have preset ideas about everything from prices for products to
  whether to fight or flee to what is morally acceptable
   — These ideas or beliefs are developed individually at specific points in time
• When we develop an initial idea or belief like this, it is called an imprint
• If we uphold this imprint, it becomes an anchor
• Each of us has hundreds of anchors that impact every decision we
  make, from purchasing fuel to buying shoes to negotiating the terms of
  a contract at work
• Can you identify any of your own anchors?




                                                                                                                         ®
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Stereotypes


• Stereotypes are another major barrier that impact our clarity of vision and
  our ability to be objective
• Our brains map learning from real-life experience in many ways
• One of those ways is by developing stereotypes
• Stereotypes enable us to make quick decisions about circumstances that
  resemble circumstances from our past




                                                                                  We grow our own maps!


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Stereotypes
(continued)

• Although this ability may protect us in life-threatening situations, it tends
  to blur our objectivity and rational thinking in almost every other situation
• We have stereotypes of people, products, services, etc.
• A popular example of this is the marketing campaigns by Mac and PC
• Can you think of any stereotypes that blur your perception of reality?




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Expectations That Taint Reality


• Expectations, as we have already seen, can influence our impression of
  the facts prior to making decisions
• In the heat of the moment, expectations can be set in many ways:
   —   The comments of a friend when buying a new coat
   —   The impressive speech from a waiter prior to selecting your entrée
   —   The publicity campaign of the latest politician
   —   Good news you heard through the grapevine before attending a meeting on
       upcoming corporate changes
• These expectations have a direct impact on the decisions being made
• When you impact expectations, you influence decisions
• Can you think of a time when your expectations were influenced by
  someone or something?




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Dealing With Opinion in the Face of Uncertainty




                 Integrative Thinking

                 Six Thinking Hats




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Facilitating Decisions in a Group


• Reality is based on perceived elements or pieces of the truth
• Developing an understanding or agreement of the facts at any given point
  in time requires a negotiation of this perceived reality
• Everyone involved in a discussion to make a decision will have a different
  perception of the facts being considered and the reality therein
• How can you persuade a group of people to consider and value the each
  other’s perspectives when making decisions?
• Two effective tools available for facilitating decisions within groups are
  integrative thinking and six thinking hats




                                                                                                                            ®
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Integrative Thinking Defined


• Integrative thinking is a process that enables individuals with different
  perspectives, knowledge, backgrounds, and experience to solve
  problems, overcome challenges, and make decisions by thinking
  holistically as a group
• Through a sequence of steps, individuals integrate their thought
  processes with the others in the group
• The process leads to nonlinear thinking and results in benefits for the
  whole group
• Main benefit: the ability of the group to face opposing models of thought
  and create a new model that integrates the ideas from the individual
  models, rather than choosing one over another




                                                                                                                          ®
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Integrative Thinking Model



                                                                                            Resolution


                                                                                                            Search for creative
                                                       Architecture                                         resolution of tensions


                                                                        Whole visualized
                       Causality                                        while working on
                                                                        individual parts

                                    Multidirectional and
       Salience
                                    nonlinearcausality
                                    considered
        More features
        of the problem
        considered salient



                                                                                                                                     ®
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Step 1: Salience

• In the first step, salience, we decide the boundaries of our scenario and
  what exists within those boundaries
• What features or facts are relevant to the decision being made?



                                                                                                                         Resolution



                                                                                                          Architecture



                                                                              Causality



                                                Salience


                                                                                                                                      ®
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Step 2: Causality

• In the second step, causality, we attempt to make sense of what we see or
  what we’re considering
• What are the pieces of the puzzle and how do they fit together?
• In this key step, we must work as a group to share our different
  perceptions of reality and how they relate to each other
• Success is dependant upon our ability                                                                                 Resolution
  to think on different planes and integrate
  the thoughts and ideas of others into
  our own plane of reality                                                                               Architecture



                                                                            Causality



                                               Salience


                                                                                                                                     ®
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Step 3: Architecture

• In the third step, architecture, our ultimate goal is to blend our different
  perspectives together in order to develop a more complete version of
  reality
• This step requires effective facilitation, open discussion, and a willingness
  to challenge preset stereotypes and limited perspectives
• This can be a difficult process if the group
                                                                                                                         Resolution
  consists of one or more members with
  overpowering personalities

                                                                                                          Architecture



                                                                               Causality



                                                 Salience


                                                                                                                                      ®
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Step 4: Resolution


• In the final step, resolution, the group makes a decision based on the
  reasoning accomplished in the first three steps
• Since integrative thinking requires a sequenced process, each step within
  the sequence is important and provides critical input to the subsequent
  steps

                                                                                                                        Resolution



                                                                                                         Architecture



                                                                             Causality



                                               Salience


                                                                                                                                     ®
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Dealing With Opinion in the Face of Uncertainty




                 Integrative Thinking

                 Six Thinking Hats




                                                                                                                    ®
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Six Thinking Hats Defined


• Edward de Bono’s book, Six Thinking Hats, suggests that the application
  of role-playing can make you and your team better thinkers
• His Six Thinking Hats process provides a way to integrate role-playing with
  discussion, creative thinking, problem solving, and decision making
• By applying de Bono’s six colored hats, each of which represents a
  different role, groups can reach a higher level of
  communication, understanding, and consensus




                                                                                                                         ®
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Six Thinking Hats Roles

de Bono’s role-playing structure uses six different hats, each of which
represents a different perspective or thinking process:
• White hat
   —   Neutral and objective
   —   Focuses on facts and figures
   —   Has no concern for emotions
   —   Wants the facts and only the facts
   —   Takes a very scientific approach to the thinking process
• Red hat
   — Takes the emotional view
   — Feels no need to justify feelings or establish a logical basis for them
• Black hat
   — Careful and cautious
   — Considers all potential risks, obstacles, or concerns with the intent of
     drawing attention to them in order to protect those involved
   — Has good intentions for being the “devil’s advocate”
                                                                                                                           ®
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Six Thinking Hats Roles
(continued)

• Yellow hat
   — Sunny and positive
   — Focuses on the benefits without any consideration for risks
• Green hat
   —   Associated with creativity and new ideas
   —   Focuses on ingenuity
   —   The ultimate lateral thinker, with no concern for cost or risk
   —   Focuses on “What can we do?” rather than “What are our limitations or what
       might go wrong?”
• Blue hat
   — The organizing hat
   — Focused thinker concerned with organizing everything from the thinking
     process itself to the next steps of the initiative, project, or problem analysis
   — If we want organized structure, we need a blue-hat thinker



                                                                                                                           ®
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                       © Copyright: All rights reserved. Not to be reproduced without prior written consent.
Six Thinking Hats Process


• In a group scenario, the facilitator requests the members of the group to
  role play a chosen hat
• By mentally switching gears from one hat to another, the members of the
  group are forced to leave their own perspectives behind
• Each member of the group can wear a single hat, different from the other
  members
   — They can wear multiple hats at the same time as other members
   — Or the entire group can choose to wear the same hat at the same time in
     order to see things from the same perspective
• This forces the group to constructively, objectively, or even emotionally
  look at the situation under review from alternate perspectives
• The goal is to force individuals to reach outside their limited perspective
  and better appreciate alternate views
• It is a more holistic way of thinking

                                                                                                                          ®
                                                                                                              PW-BAW-21
                      © Copyright: All rights reserved. Not to be reproduced without prior written consent.
Objectives Covered


• Increase personal effectiveness through integrative thinking


• Forge a four-step process to integrate multiple points of view


• Facilitate the “Six Hats” theory to decision analysis




                                                                                                                         ®
                                                                                                             PW-BAW-22
                     © Copyright: All rights reserved. Not to be reproduced without prior written consent.
For More Information


•   To further explore this subject, Learning Tree offers the following 3-day course –
    Making Successful Business Decisions: Getting It Right the First Time

    More information can be found here – www.learningtree.ca/908

•   For full descriptions of over 175 Management, Business and IT Skills
    courses, services provided and pricing options
     — Go to www.learningtree.ca
     — Or call us at 1-800-843-8733.

•   For Project Management & Management Consulting Solutions, contact Larry T.
    Barnard of Explorus Group Inc. at larry@explorus.ca




                                                                                                                            ®
                                                                                                                PW-BAW-23
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Making Successful Business Decisions

  • 1. Making Successful Business Decisions How to Negotiate Conflicting Opinions to Set Direction Presenter: Larry T. Barnard ProjectWorld*BusinessAnalystWorld Toronto 2009 ® ® ®
  • 2. Objectives • Increase personal effectiveness through integrative thinking • Forge a four-step process to integrate multiple points of view • Facilitate the “Six Hats” theory to decision analysis ® PW-BAW-2 © Copyright: All rights reserved. Not to be reproduced without prior written consent.
  • 3. Divided by Perspective • When confronted by decisions, individuals are influenced by their views of reality, including: — Personal values, mental perspective, religious and political beliefs, fears, tolerance for risk, etc. • When facilitating group discussions for decision making, one must be aware of key mental barriers ® PW-BAW-3 © Copyright: All rights reserved. Not to be reproduced without prior written consent.
  • 4. Divided by Perspective (continued) • Three common barriers: — Arbitrary coherence, made up of imprinting and anchors based on first impressions — Stereotypes that drive expectations — Expectations that alter our subjective and objective experiences Boundaries between beliefs and reality blur objectivity and decision-making ability ® PW-BAW-4 © Copyright: All rights reserved. Not to be reproduced without prior written consent.
  • 5. Arbitrary Coherence • People have preset ideas about everything from prices for products to whether to fight or flee to what is morally acceptable — These ideas or beliefs are developed individually at specific points in time • When we develop an initial idea or belief like this, it is called an imprint • If we uphold this imprint, it becomes an anchor • Each of us has hundreds of anchors that impact every decision we make, from purchasing fuel to buying shoes to negotiating the terms of a contract at work • Can you identify any of your own anchors? ® PW-BAW-5 © Copyright: All rights reserved. Not to be reproduced without prior written consent.
  • 6. Stereotypes • Stereotypes are another major barrier that impact our clarity of vision and our ability to be objective • Our brains map learning from real-life experience in many ways • One of those ways is by developing stereotypes • Stereotypes enable us to make quick decisions about circumstances that resemble circumstances from our past We grow our own maps! ® PW-BAW-6 © Copyright: All rights reserved. Not to be reproduced without prior written consent.
  • 7. Stereotypes (continued) • Although this ability may protect us in life-threatening situations, it tends to blur our objectivity and rational thinking in almost every other situation • We have stereotypes of people, products, services, etc. • A popular example of this is the marketing campaigns by Mac and PC • Can you think of any stereotypes that blur your perception of reality? ® PW-BAW-7 © Copyright: All rights reserved. Not to be reproduced without prior written consent.
  • 8. Expectations That Taint Reality • Expectations, as we have already seen, can influence our impression of the facts prior to making decisions • In the heat of the moment, expectations can be set in many ways: — The comments of a friend when buying a new coat — The impressive speech from a waiter prior to selecting your entrée — The publicity campaign of the latest politician — Good news you heard through the grapevine before attending a meeting on upcoming corporate changes • These expectations have a direct impact on the decisions being made • When you impact expectations, you influence decisions • Can you think of a time when your expectations were influenced by someone or something? ® PW-BAW-8 © Copyright: All rights reserved. Not to be reproduced without prior written consent.
  • 9. Dealing With Opinion in the Face of Uncertainty Integrative Thinking Six Thinking Hats ® PW-BAW-9 © Copyright: All rights reserved. Not to be reproduced without prior written consent.
  • 10. Facilitating Decisions in a Group • Reality is based on perceived elements or pieces of the truth • Developing an understanding or agreement of the facts at any given point in time requires a negotiation of this perceived reality • Everyone involved in a discussion to make a decision will have a different perception of the facts being considered and the reality therein • How can you persuade a group of people to consider and value the each other’s perspectives when making decisions? • Two effective tools available for facilitating decisions within groups are integrative thinking and six thinking hats ® PW-BAW-10 © Copyright: All rights reserved. Not to be reproduced without prior written consent.
  • 11. Integrative Thinking Defined • Integrative thinking is a process that enables individuals with different perspectives, knowledge, backgrounds, and experience to solve problems, overcome challenges, and make decisions by thinking holistically as a group • Through a sequence of steps, individuals integrate their thought processes with the others in the group • The process leads to nonlinear thinking and results in benefits for the whole group • Main benefit: the ability of the group to face opposing models of thought and create a new model that integrates the ideas from the individual models, rather than choosing one over another ® PW-BAW-11 © Copyright: All rights reserved. Not to be reproduced without prior written consent.
  • 12. Integrative Thinking Model Resolution Search for creative Architecture resolution of tensions Whole visualized Causality while working on individual parts Multidirectional and Salience nonlinearcausality considered More features of the problem considered salient ® PW-BAW-12 © Copyright: All rights reserved. Not to be reproduced without prior written consent.
  • 13. Step 1: Salience • In the first step, salience, we decide the boundaries of our scenario and what exists within those boundaries • What features or facts are relevant to the decision being made? Resolution Architecture Causality Salience ® PW-BAW-13 © Copyright: All rights reserved. Not to be reproduced without prior written consent.
  • 14. Step 2: Causality • In the second step, causality, we attempt to make sense of what we see or what we’re considering • What are the pieces of the puzzle and how do they fit together? • In this key step, we must work as a group to share our different perceptions of reality and how they relate to each other • Success is dependant upon our ability Resolution to think on different planes and integrate the thoughts and ideas of others into our own plane of reality Architecture Causality Salience ® PW-BAW-14 © Copyright: All rights reserved. Not to be reproduced without prior written consent.
  • 15. Step 3: Architecture • In the third step, architecture, our ultimate goal is to blend our different perspectives together in order to develop a more complete version of reality • This step requires effective facilitation, open discussion, and a willingness to challenge preset stereotypes and limited perspectives • This can be a difficult process if the group Resolution consists of one or more members with overpowering personalities Architecture Causality Salience ® PW-BAW-15 © Copyright: All rights reserved. Not to be reproduced without prior written consent.
  • 16. Step 4: Resolution • In the final step, resolution, the group makes a decision based on the reasoning accomplished in the first three steps • Since integrative thinking requires a sequenced process, each step within the sequence is important and provides critical input to the subsequent steps Resolution Architecture Causality Salience ® PW-BAW-16 © Copyright: All rights reserved. Not to be reproduced without prior written consent.
  • 17. Dealing With Opinion in the Face of Uncertainty Integrative Thinking Six Thinking Hats ® PW-BAW-17 © Copyright: All rights reserved. Not to be reproduced without prior written consent.
  • 18. Six Thinking Hats Defined • Edward de Bono’s book, Six Thinking Hats, suggests that the application of role-playing can make you and your team better thinkers • His Six Thinking Hats process provides a way to integrate role-playing with discussion, creative thinking, problem solving, and decision making • By applying de Bono’s six colored hats, each of which represents a different role, groups can reach a higher level of communication, understanding, and consensus ® PW-BAW-18 © Copyright: All rights reserved. Not to be reproduced without prior written consent.
  • 19. Six Thinking Hats Roles de Bono’s role-playing structure uses six different hats, each of which represents a different perspective or thinking process: • White hat — Neutral and objective — Focuses on facts and figures — Has no concern for emotions — Wants the facts and only the facts — Takes a very scientific approach to the thinking process • Red hat — Takes the emotional view — Feels no need to justify feelings or establish a logical basis for them • Black hat — Careful and cautious — Considers all potential risks, obstacles, or concerns with the intent of drawing attention to them in order to protect those involved — Has good intentions for being the “devil’s advocate” ® PW-BAW-19 © Copyright: All rights reserved. Not to be reproduced without prior written consent.
  • 20. Six Thinking Hats Roles (continued) • Yellow hat — Sunny and positive — Focuses on the benefits without any consideration for risks • Green hat — Associated with creativity and new ideas — Focuses on ingenuity — The ultimate lateral thinker, with no concern for cost or risk — Focuses on “What can we do?” rather than “What are our limitations or what might go wrong?” • Blue hat — The organizing hat — Focused thinker concerned with organizing everything from the thinking process itself to the next steps of the initiative, project, or problem analysis — If we want organized structure, we need a blue-hat thinker ® PW-BAW-20 © Copyright: All rights reserved. Not to be reproduced without prior written consent.
  • 21. Six Thinking Hats Process • In a group scenario, the facilitator requests the members of the group to role play a chosen hat • By mentally switching gears from one hat to another, the members of the group are forced to leave their own perspectives behind • Each member of the group can wear a single hat, different from the other members — They can wear multiple hats at the same time as other members — Or the entire group can choose to wear the same hat at the same time in order to see things from the same perspective • This forces the group to constructively, objectively, or even emotionally look at the situation under review from alternate perspectives • The goal is to force individuals to reach outside their limited perspective and better appreciate alternate views • It is a more holistic way of thinking ® PW-BAW-21 © Copyright: All rights reserved. Not to be reproduced without prior written consent.
  • 22. Objectives Covered • Increase personal effectiveness through integrative thinking • Forge a four-step process to integrate multiple points of view • Facilitate the “Six Hats” theory to decision analysis ® PW-BAW-22 © Copyright: All rights reserved. Not to be reproduced without prior written consent.
  • 23. For More Information • To further explore this subject, Learning Tree offers the following 3-day course – Making Successful Business Decisions: Getting It Right the First Time More information can be found here – www.learningtree.ca/908 • For full descriptions of over 175 Management, Business and IT Skills courses, services provided and pricing options — Go to www.learningtree.ca — Or call us at 1-800-843-8733. • For Project Management & Management Consulting Solutions, contact Larry T. Barnard of Explorus Group Inc. at larry@explorus.ca ® PW-BAW-23 © Copyright: All rights reserved. Not to be reproduced without prior written consent.

Editor's Notes

  1. Duration: 3 minutesPresentation Style: GeneralPresent: