CREATIVE THINKING & PROBLEM SOLVING

Topic Overview
 The meaning of creative thinking
 The meaning of problem solving
 Problem solving techniques
Learners must be able to:

Explain the meaning of creative thinking.

Describe/Explain/Discuss the advantages/benefits of creative thinking in the work place.
Explain how businesses can use creative thinking to generate entrepreneurial qualities, e.g.
designing environments that stimulate creative thinking.
Discuss/Describe/Explain how business can use creative thinking to solve business problems.
Elaborate on the meaning of problem solving.
Explain/Discuss the differences between problem solving and creative thinking
Outline/Mention/Discuss/Explain the problem solving cycle.
Explain/Discuss/Describe how businesses can apply the problem solving techniques to solve
business problems.
Recap the meaning of business opportunity
Briefly explain the purpose of the eight business functions
Describe/Explain how businesses can use mind-mapping, brainstorming to identify innovative
and entrepreneurial business opportunities.
Recommend/Suggest ways in which creative business opportunities can realistically be
implemented.

Definition of Key terms

Creative thinking Involves the process of generating innovative and

imaginative ideas
Mind mapping Diagrams that represent ideas that are connected to a central
theme.
Force Field Analysis A technique used to determine the forces that are for and
against a decision
Nominal Group Technique A structured method for group brainstorming that allows every
member to come up ideas on their own
Brainstorming: A group activity to find a solution for a specific problem by
gathering list of ideas spontaneously
Delphi Technique A method that relies on a panel of experts to find solutions to
a problem.
Problem solving The process of finding solutions to difficult or complex
Issues.
The meaning of creative thinking
 Creative thinking involves the process of generating innovative and imaginative ideas.
 It is the ability to see something in a new way.
 It is also about being able to think of unique ideas or new approaches to solve problems

The advantages/benefits of creative thinking in the workplace

New, innovative, and better ideas and solutions are generated.
Creativity is key to staying one step ahead of competitors.
Complex business problems may be solved.
It leads to increased productivity of the entire business.
It leads to more positive attitudes as managers and employees feel that they have contributed
towards problem-solving.
It improves motivation amongst staff members.
Creativity may lead to new inventions that will improve the general standard of living.
Management and employees may keep up with fast-changing technology

Ways in which businesses use creative thinking to generate entrepreneurial

opportunities.
Design environments that stimulate creative thinking.
Encourage staff to come up with new ideas and solutions.
Encourage alternative ways of doing things.
Respond enthusiastically to all ideas and never let anyone feel less important.
Make time for brainstorming sessions to generate new ideas, for example, holding regular
workshops.
Place suggestion boxes around the workplace and keep communication channels open for new
ideas.
Train staff in innovative techniques, creative problem-solving skills, mind mapping and lateral
thinking.
Emphasise the importance of creative thinking to ensure that all staff know that management
wants to hear their ideas.
Encourage job swops within the organisation and study how other businesses are doing things.

The meaning of problem solving

Problem solving is the process of finding solutions to difficult or complex issues
It is a process that requires creative thinking
Alternative solutions are identified and critically evaluated.
Effective problem solving results in good decision-making
Problems can be solved by a group/team or an individual
Various techniques may be used
The problem solving cycle

A problem-solving cycle is a valuable tool that businesses can use to solve problems.

Problem solving cycle steps

No Step Explanation
1 Identify the problem Identify what the exact problem is.
Develop a detailed problem statement that includes
the effect the problem has on the business
2 Define the problem Define the causes of the problem.
Focus on the real problem by finding out as much
information as possible.
3 Formulate a strategy Identify all different possible solutions.
Finding a solution involves constructing a course
of action that will change the situation
4 Implement the strategy Carry out the solution/action plan.
The action plan includes the details of activities that
must be performed.
5 Allocate resources Arrange the necessary solutions.
Proper resource allocation makes it easier to
assign tasks and execute them based on their
priorities.
6 Monitor problem solving Monitor/closely observe the solution/action plan.
Ensure that the solution is being implemented as
expected by gathering feedback
7 Evaluate the problem solving process Consider the advantages and disadvantages of the
whole process.
This indicates whether the action plan has solved
the problem

Differences between decision making and problem solving

Decision-Making Problem-Solving
Choosing the best option from available choices. Finding a way to fix or resolve a problem.

Focuses on selecting between alternatives. Focuses on removing obstacles or difficulties.

Starts with options already in place. Starts with identifying the problem.

Ends with a choice being made. Ends with a workable solution.

Usually proactive. Usually reactive.

Decisions are usually made by 1 person Problem solving usually involve a group/team
 Problem Solving Techniques
 Businesses are often faced with making difficult decisions
 The following problem solving techniques can be used for good decision making

1. Force Field Analysis.

 Developed by Kurt Lewin to facilitate change in an organisation
 Used to compare the driving and restraining forces to create an informed decision
 Employees are often resistant to change and will act against change taking place
 Management is a force acting for change while employees are acting against change
 This technique will improve the quality of decisions and increase the chances of success.

Forces for Change (Driving Forces) Proposed Change Forces against change (Restraining Forces)

Driving & Restraining forces

 Driving forces are factors that promote change while restraining forces are factors that
hinder or resist change
 Examples of driving and restraining forces are tabulated below:

No Driving (Forces promoting Change) Restraining Forces (Forces Against

Change)
1 Market Demand: when customer taste and Employee Resistance: Fear of the unknown,
preferences change, organizations may job security concerns, or lack of
need to adapt, driving change understanding can lead to resistance.
2 Technological Advancements: New Organizational Inertia: Established routines,
technologies can offer competitive processes, and structures can make it
advantages, prompting organizations to difficult to adopt new ways of working.
adopt them.
3 Competitive Pressure: To stay ahead, Resource Constraints: Limited budgets,
companies might need to implement personnel, or equipment can hinder change.
changes in response to competitor
actions.
4 Management Directives: Leadership Regulatory Barriers: Laws or regulations
decisions can initiate changes within an may restrict certain changes.
organization.
 5 Employee Motivation: A desire to improve Lack of Skills/Training: Employees may not
efficiency or job satisfaction can be a have the necessary skills to adapt to new
driving force for change. systems.

 The Force Field Analysis suggest that change can be communicated effectively as follows:

(1) Unfreezing: stop all changes until proper communication can take place
(2) Moving: Explain the reasons & benefits for change to all staff & ensure that everyone
understand how changes will affect them. Ensure that all questions are dealt with effectively.
(3) Refreezing: Do not make any more changes in the organization for a while so that it can get
stabilized and employees can get used to the changes.
Application of the Force Field Analysis Technique
 Describe the current situation/problem and the desired situation.
 List all the driving forces and restraining forces that will support and resist change.
 Allocate a score to each force using a numerical scale, where 1 is weak and 5 is strong.
 Weigh up the positives and negatives then decide if the project is viable.
 Choose the force with the highest score as the solution.
 If the project is viable, find ways to increase the forces for change.
 Identify priorities and develop an action plan.

Example of the Application of the Force Field Analysis Technique

Due to the pandemic lockdown, many supermarkets’ sales dropped because of fewer customers visiting
the store. Management used the Force Field Analysis to solve the problem by proposing a delivery
service to their customers.

Force For Change Score Proposal Score Forces Against

Change
Sales will increase 5 Delivery 3 Additional Staff
More Customers 4 Service 3 Deliver Vehicle
Satisfied Customers 4 5 Additional Costs
Total 13 11 Total

2. The Delphi Technique

 Used when trying to solve big problem of which there seem to be no previous example.
 Method relies on panel of experts to find solutions to a problem
 Technique uses a series of questionnaires to obtain feedback from experts
 The questionnaires are summarised to bring about the agreement from the different views.

Application of the Delphi Technique.

1. A panel of carefully selected experts is invited to participate in the process

2. A questionnaire is designed carefully and distributed to the panel
3. The panellists respond to the questionnaire individually and return it to the organization
 4. Responses from the experts are summarised in a feedback report, but the responses are
anonymous so none of the panellists knows who made which suggestion
5. The feedback report, and a second set of questions related to the feedback are sent to the
panellists
6. The panellists read the feedback report and decide if they wish to change their initial ideas,
suggestions or solutions. They then complete the 2nd questionnaire
7. A final summary and feedback report with all the methods to solve the problem is prepared
8. The business chooses or selects the best solution or proposal after reaching consensus
Nb : The idea is that consensus will be reached through this method and the best solution
will be found. The idea behind not meeting face to face is to avoid the situation where a
group votes according to the most persuasive, confident person in the group

3. Nominal Group Technique (NGT)

 NGT is used to avoid the disadvantages of group discussions
 Technique requests that each employee silently brainstorm and generate many ideas on their
own and write them down.
 A voting process is added to rank the ideas that are generated
 Everyone in the group is expected to participate in silence

Application of the Nominal Group Technique

1. Group is divided into smaller groups of 5 or six people around the table
2. Problem is clearly defined to the groups
3. Each team member will silently brainstorm as many ideas as possible and write them
down
4. Each team member gives one of their solutions/ideas with a short explanation.
5. Someone writes down these ideas on a big sheet of paper.
6. No one is allowed to criticise, but participants may ask questions to understand the
suggested solution more clearly.
7. Duplicated ideas are then eliminated.
8. Each person reads through all suggestions and anonymously rates them giving the highest
points for the best solutions, down to the lowest points for the one they like the least
9. Ratings are collected and points calculated. Group is given the results of which idea
received the most points, the 2nd most points and so on. NB* Solutions may also be
chosen by voting to determine the best idea(s).
10. Each group presents the solution with the highest votes in their particular group.

Brainstorming
 Used for problem solving when an organization wants to involve a group or team in the
process
 Defined as a group activity to find a solution for a specific problem by gathering a list of ideas
spontaneously
 Can be a very effective and motivating technique, but it needs to be managed carefully by a
facilitator to ensure bets results are achieved.
 Method inspires creative problem solving by encouraging group members to come up with
thoughts and ideas
 Some of the ideas can be crafted into original, creative solutions to a problem, while others
can spark even more ideas.

Application of Brainstorming
1. The problem must be defined clearly.
2. People in the group suggest ideas and solutions at random.
3. All ideas must be written on a flip a chart.
4. The facilitator must encourage everyone to participate and ensure that no one criticises
any suggestions.
5. When the time is up/no one has any more ideas, the sheets with suggestions are hung
around the room.
6. Similar ideas are grouped together using coloured pens.
7. The group evaluates the ideas and rates them according to how successful they think
each idea will be.
8. A plan of action is discussed to put the best ideas into practice.

Mind Mapping
 Mind maps are diagrams that represent ideas that are connected to a central theme.
 It is a way of linking key concepts using images, lines, and links.
 Their strength is that they work like our brain works.
 They are useful for generating new ideas, problem solving, making notes to organise
thoughts and summarising when studying.
 Mind mapping is a simple technique for drawing information in diagrams instead of writing it
in sentences.
 The diagrams always take the same basic format of a tree with a single starting point in the
middle that branches out, and divides again and again.

Application of Mind Maps

 Decide on the central problem or topic

 Find a word/picture that captures the problem/topic
 Break down the central theme into main ideas/points.
 Put these points on the main branches
 Break the ideas down further into sub-points
 Use colour and shapes to help sort ideas logically.
 Use few words where possible

Question

How businesses can use mind mapping, brainstorming to identify innovative and
entrepreneurial business opportunities

Solution/Answer
 Businesses can use mind mapping and brainstorming as powerful creative thinking tools to
identify innovative and entrepreneurial opportunities because these techniques encourage
idea generation, problem solving, and strategic thinking in a collaborative way.

Brainstorming

Definition: Brainstorming is a group or individual activity used to generate a wide range

of ideas without immediate criticism or judgment.
 How it works for identifying opportunities:

Idea generation: Teams can list as many potential business ideas as possible based on
market needs, customer complaints, industry trends, or emerging technologies.

Free thinking: Removing restrictions allows unconventional ideas to surface, which can
lead to breakthrough innovations.

Diverse perspectives: Involving different departments (marketing, production, and

finance) ensures ideas are well-rounded and applicable to various aspects of business.

Example: A retail company brainstorming ways to attract more customers might generate
ideas such as loyalty apps, eco-friendly packaging, personalized shopping experiences,
or delivery partnerships.

Mind mapping

Definition: Mind mapping is a visual tool that organizes ideas around a central concept,
showing connections and relationships between them.

How it works for identifying opportunities:

 Central focus: A business can place a problem or theme (e.g., “new product
opportunities” or “improving customer experience”) at the center and branch out with
related ideas.

 Exploring connections: Branches can represent market trends, customer segments,

technology, or competitor weaknesses, helping spot gaps in the market.

 Visual clarity: The diagram makes it easier to identify patterns, clusters of related ideas,
or potential synergies that can lead to innovative opportunities.

Example: A food business creating a mind map around “healthy eating trends” might branch
out to vegan products, gluten-free snacks, locally sourced ingredients, or meal kits.

Combined Benefits for Innovation and Entrepreneurship

 Encourages creative risk-taking by generating many possibilities before narrowing

down to the most viable.
 Identifies gaps in the market or areas competitors have overlooked.
 Helps businesses respond to changing consumer needs or emerging technologies.
 Supports team collaboration, ensuring ideas are evaluated from multiple perspectives.

Conclusion
Businesses use brainstorming to generate a wide range of raw ideas, and mind mapping
to visually organize and connect these ideas. Together, they create a structured yet creative
approach to identifying innovative and entrepreneurial business opportunities that can lead
to competitive advantage and growth.
 Ways in which creative business opportunities can realistically be implemented.

1. Conduct Market Research and Feasibility Studies

 Why: To confirm there is demand, understand competitors, and identify target customers.
 How to implement:
o Use surveys, interviews, or online analytics to test the idea.
o Run a small pilot or test version of the product/service.
 Example: A startup offering eco-friendly packaging tests demand with a few retail partners
before scaling up.

2. Develop a Clear Business Plan

 Why: A detailed plan outlines steps, costs, timelines, and goals, making the idea
practical.
 How to implement:
o Define value proposition, marketing strategy, operations, and funding requirements.
o Include risk analysis and contingency plans.
 Example: A tech entrepreneur launching a delivery app includes rollout phases in their
plan, starting with one city before nationwide expansion.

3. Secure Appropriate Funding and Resources

 Why: Financial backing ensures the idea can move beyond concept stage.
 How to implement:
o Seek funding from investors, banks, crowdfunding, or government grants.
o Use resources efficiently, starting small to minimize risk.
 Example: A bakery introducing a new product line gets a small business loan and
uses existing kitchen space instead of renting new premises.

4. Implement Effective Marketing Strategies

 Why: Even the best ideas fail without customer awareness.

 How to implement:
o Use targeted online advertising, social media campaigns, or community
events.
o Build a brand story that highlights the creative and unique aspects of the
product.
 Example: A small organic food brand grows through Instagram marketing and
farmers’ market promotions.