The document outlines the Kepner-Tregoe method, a systematic problem-solving and decision-making approach designed for leaders. It emphasizes the importance of critical thinking in management, detailing the steps involved in analyzing situations, problems, and potential decisions. By applying structured rational processes, managers can enhance their decision-making capabilities and address various operational challenges effectively.

1. Critical thinking leaders as
Rational Manager
Kepner-Tregoe:
A systematic problem solving
& decision making method
Inspired by : The New Rational Manager by Charles H. Kepner & Benjamin B. Tregoe

2. A critical thinking leader is a rational manager
As leaders, you often face some of the following critical
moments either as a routine or isolated cases:
1.Troubleshooting a major operations glitch
2.Solving a major IT system interruption or outage
3.Identifying technical glitch for a manufacturing
equipment problem
4.Deciding to increase the capacity of a distribution centre
5.Selecting to hire a new employee
Leaders equipped with rational process will arrive at the core issue to identify
problems , and thereafter, applies critical thinking with problem solving techniques
to finding solutions and make decisions

3. Linking Critical Thinking Leaders to
Rational Manager
Definition from Kepner-Tregoe for a rational manager is about leading
rational processes to maximize the critical thinking skills of people. They are
easily learned and applicable at all levels within an organization, from the IT
professional to the CEO. Rational processes provide organized ways of
applying critical thinking skills to an issue. They constitute an explicit, logical
system that can have a far-reaching impact (Lemieux,2009, December 17).

4. The Kepner-Tregoe Tool
A systematic critical thinking
approach to rational decision
making for managers

5. Think of a Problem
One existing problem you are currently
experiencing in your job
or the one experienced in the past.
Write it down.

6. Overview of The
Kepner-Tregoe Tool
• Situation Analysis
• Problem Analysis
• Decision Analysis
• Potential Problem (Opportunity) Analysis

7. Situation Appraisal
• Identify Concerns
(List threats and Opportunities)
– What deviations are occurring?
– What decisions need to be made?
– What plans should be implemented?
– What changes are anticipated?
– What opportunities exist?
– What bothers us about . . . .?

8. Situation Appraisal
• Separate and Clarify Concerns
– What do we mean by . . . ?
– What exactly is . . . ?
– What else concerns us about . . . ?
– What evidence do we have . . . ?
– What different deviations,
decisions, or plans are part of this
concern?

9. Situation Appraisal
• Set Priority
– Which concern should we work on
first?
– Consider . . .
 . . . the current impact
• What is the current impact on
people, safety, cost,
customers/stakeholders,
productivity, reputation, etc?
• What evidence do you have?
• Which concern is most serious?

10. Situation Appraisal
• Set Priority
– Consider . . .
 . . . the future impact
• If left unresolved, how and when
will the seriousness change?
• What evidence do you have?
• Which concern is getting worse
quicker?

11. Situation Appraisal
• Set Priority
– Consider . . .
 . . . the time frame
• What is the deadline? When do we
need to start?
• When would resolution become
difficult, expensive, impossible, or
meaningless?
• What evidence do you have?
• Which concern will be the hardest to
resolve later?

12. Problem Analysis
Describe the Problem
• What is the Problem?
– What object (or group of objects)
has the deviation?
– What deviation does it have?
– What do we see, hear, feel, taste,
or smell that tells us there is a
deviation?
• Then ask - What, Where, When,
and to what Extent?

13. Problem Analysis
Identify Possible Causes
• Use knowledge and experience to develop
possible cause statements
• From experience, what could have caused
the deviation?
• Use distinctions and changes to develop
possible cause statements
• What is different, odd, special, or unique
about an IS compared to an IS NOT?
• What was changed in, on, around, or about
each distinction?
• When did the change occur?
• How could each change have caused this
deviation?

14. Problem Analysis
Evaluate Possible Causes
• Test possible causes against the IS
and IS NOT specification
• If _______ is the true cause of
________, how does it explain both
the IS and IS NOT information?
• What assumptions have to be made?
• Determine the most probable
cause
• Which possible cause best explains
the IS and IS NOT information?
• Which possible cause has the fewest,
simplest, and most reasonable
assumptions?

15. Problem Analysis
Confirm True Cause
• What can be done to verify any
assumptions made?
• How can this cause be observed at
work?
• How can we demonstrate the cause-
and-effect relationship?
• When corrective action is taken,
how will results be checked?

16. Decision Analysis
• Clarify the Purpose
– What is the decision?
– What are the WANT objectives?
– What are the MUST objectives?
– What are the relative weights of the
objectives?
• Evaluate Alternatives
– What are alternatives to the decision?
– How do the alternatives fit with the
WANTS?
– How do the alternatives fit with the
MUSTS?

17. Decision Analysis
• Assess Risks
– What are the adverse consequences?
• Make decision
– What are the best balanced choices?

18. Planning the Next Steps
• Potential Problem
(Opportunity)
Analysis
• Do we have an
Action or Plan to
protect (enhance)?

19. Potential Problem
(Opportunity) Analysis
• Identify Potential Problems
(Opportunities)
– What are the potential actions?
– What are the potential problems?
– What are the potential opportunities?
• Identify Likely Causes
– What are the possible causes for the
potential problem?
– What are the possible causes for the
potential opportunity?

20. Potential Problem
(Opportunity) Analysis
• Take Preventative (Promoting) Action
– What actions do we need to take to
address (encourage) likely causes?
• Plan Contingent (Capitalizing) Action
and Set Triggers
– What actions do we need to prepare to
reduce (enhance) likely effects?
– What triggers do we need to set for
contingent (capitalizing) actions?

22. Reference
Lemieux, R. (2009, December 17). 5-Step Problem Management with Kepner-Tregoe. DITY Weekly
Newsletter, 5(49). Retrieved from
http://www.itsmsolutions.com/newsletters/DITYvol5iss49.pdf/newsletters/DITYvol5iss49.pdf/
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