10/28/2020

Creativity in Decision Making

MBAT 513 – Management Decisions & Implementation
Presented by
Champal de Costa

What is a Creativity & Innovation?

Creativity
• Creativity is the “Ability to think originally
& bring out something new”
• It’s an act of turning new and imaginative
ideas into reality
• Production of “something original and
worthwhile”
• A process of becoming sensitive to
problems, deficiencies, gaps in
knowledge, missing elements,
disharmonies, and so on; identifying the
difficulty; searching for solutions, making
guesses, or formulating hypotheses
about the deficiencies: testing and
retesting these hypotheses and possibly
modifying and retesting them; and finally
communicating the results - Dr. E. Paul
Torrance
Innovation
• A new idea, creative thoughts, new
imaginations in form of device or method
• Often viewed as the application of
better solutions that meet new
requirements, unarticulated needs, or
existing market needs
• Generation, admission and realization of
new ideas, products, services and
processes
Without creativity, innovation will not take
place
Both Creativity & Innovation are
interchangeably used in the context of
Decision Making

1
 10/28/2020

Importance of Creativity in Decision Making

• Earlier, Creativity & Innovation were needed for success; now they are
essential for survival
• Creativity makes Rational Model Obsolete & goes beyond bounded
rationality in Administrative Model
• It questions the status quo exposing the “Big Picture”
• Creativity facilitates exploitation of dormant capabilities
• Provides a testing ground before accepting solutions through logical
reasoning
• Promotes Positivity
• Mitigates effects of unexpected shocks

Three Components of Creativity in Decision Making

Expertise Creative
Knowledge: thinking:
Explicit Skills, flexibility
Or Tacit imagination

Motivation:
Extrinsic, intrinsic

2
 10/28/2020

Bringing Creativity to Harrison’s (1996) Model

C – High C – High C – High
M – High M – Moderate M – Low
K – High K – High K – High
Setting Comparing &
Searching for
managerial evaluating
alternatives
objectives alternatives

C – High
C – High
M – High
M – Moderate
K – Low
K – Moderate
C – High Follow-up & Implementing The act of
M – High control decisions choice
K – Moderate

Creative Thinking – C Motivation – M Expertise Knowledge – K

Types of Creativity
Deliberate
Behavioural Process

Inventors Therapeutic
(Thomas Edison)
Spontaneous

Specialist Artists &

(Newton & The
Apple)
Musicians

Cognitive Emotional
Mental Process

3
 10/28/2020

Types of....

• Deliberate and cognitive creativity requires a high degree of

knowledge and lots of time

• Deliberate and emotional creativity requires quiet time

• Spontaneous and cognitive creativity requires stopping work on the

problem and getting away

• Spontaneous and emotional creativity probably can’t be designed for

Creative Decision Making Process

Preparation

Immersion

Incubation

Insight

Evaluation
Elaboration

4

Creative Decision Making Process…
Preparation Stage
• Realises the gaps in current
status quo
• Understands the benefits of
new thinking
• Assesses ability to work for
something new
• Decides on others’ involvement
• Clarifies objectives
• Sets goals
• Decides on the process
9
Creative Decision Making Process…
Incubation Stage
• An extremely important stage
• Decision maker synthesizes all ideas
using his/her imagination and begins
to construct something novel
• May take few days or months but
taking breaks is always desirable
• Churning of ideas & information in
the previous stage
• Allows idea accumulation,
connection, re-formation, snowballing
& re-emerging
• May not be in owner’s control & level
of excitement varies
• Premature conclusions are
unfavourable
10
10/28/2020
Immersion Stage
• Many authors include this step under
Preparation
• Immerses himself in the objective
• Collects all possible components:
• Musician – Compile CDs, DVDs etc., Goes to
Musical shows to gather audience feedback
• Writer – Reads a lot, Goes for Book launches,
Listens to readers’ comments
• Researcher – Literature review, Group discussions
& other acceptable research methodologies
• Artist – Collects or see others’ work
• Entrepreneur – Monitors market conditions,
Engages in networks
• Marketer – Studies product features, competitors,
customer information & feedback
• Best in a quiet environment
• Allows information to flow into subconscious
mind
Insight (Illumination) Stage
• Smallest or shortest but most
important part of all steps
• An illuminating realization regarding
how to piece the thoughts together
• Stage of subconscious reflection on
inner & outer worlds
• May happen in a relaxed mode:
• When doing low-level physical activities
• While having a shower
• When driving a car (without diverting
attention)
• While having a walk
• …
5
 10/28/2020

Creative Decision Making Process…

Evaluation Stage Elaboration Stage
• Lot of creative people struggles in • Actual execution
this stage due:
• Personal bias • Micro-testing, Studio-testing, Lab-
• Idea overflow testing, etc may run into days or
• Time limitations months
• Refers back to Objectives in 1st • A lot of reshaping of previous
Stage stages till the owner realises the
• Methodology: conformity with goals
• Is this really novel? • Presentations, launchings,
• Testing with a small group showcasing & celebrations may take
• Visualise
• Possibility of a lean start
place
• A lot misinterpret that this is the • Compiling feedback is important
last stage of the creative process • Plan for continuous development is
rewarding

11

Setting up a “Creative Organisational Culture”

• Setting up a suitable physical environment
• Top Management involvement
• Removal of structural barriers
• Gradually & Continuously raising standards
• Formation of task teams to solve specific problems
• Setting a formal system to receive, evaluate & implement new ideas
• Panels of evaluation
• Consistent & Clear Criteria
• Competitions
• Suggestion boxes
• Reward systems
• For task accomplishments
• For acceptable ideas
• Japanese Techniques (Kaizen, Continuous Improvement...)
• Success stories on creativity

12

6

Barriers to Creative
Decision Making
• Presence of control systems
• Over emphasis on efficiency
• Structured functions & role
prescriptions
• Hierarchy & position power
• Self-image
• Lack of recognition
• Theory “X” orientation
• Fear of rejection
• Suspicion
• Moods & Emotions
• Low level of motivation
• Self-imposed comfort zones
13
Six Thinking Hats
Introduction
• Helps understanding the full complexity
of the decision
• The effects of a decision is looked from a
number of different points of view
• All issues & opportunities are identified
• Considers both rational & emotional
perspectives pertaining to a decision
• Six Hats (imaginary) are given colours,
White, Red, Black, Yellow, Green & Blue,
representing various thinking patterns
• To use Six Thinking Hats to improve the
quality of one’s decision‐making, he will
look at the decision "wearing" each of
the thinking hats in turn
14
10/28/2020
Techniques involved in
Creative Decision Making
• Brain storming
• Simulations
• Computer-aided techniques
• Edward de Bono’s Six
Thinking Hats
• Dr De Bono is the originator of
the term “Lateral Thinking”
• He has written 65 books
translated into 37 languages
• Held appointments at
universities of Oxford,
Cambridge, London & Harvard
The Process
• The team after defining the problem sits
together with relevant information
keeping within their reach
• They imagine putting on different hats,
one at a time in a sequence & look at the
problem, solution, consequences,
alternatives and any other relevant
aspect.
• No personal bias is expected when one
puts on a particular coloured hat
• After finishing with that hat, the
sequence continues
• On completion of the round, decisions
taken in each hat is critically compared
• Implementation is done accordingly
7
 10/28/2020

Six Thinking Hats....

COLOUR

WHITE

RED

YELLOW

BLACK

GREEN

BLUE

15

Advantages of Six Thinking Hats

• Helps understanding the full complexity of a decision that has been taken
but not yet agreed by all
• The effects of a decision is looked from a number of different points of
view
• All issues & opportunities are identified
• Considers both left & right-brain perspectives pertaining to a decision
• Opens up opportunity for creativity within the team (specially the
pessimistic members)
• Biasness is eliminated
• Prevents members shifting back to original views after completion of the
final round

16