Creative Problem Solving for Managers Fourth edition How can managers tackle complex problems? How do you encourage innovation? How do you implement new solutions? Is creativity the key to management success? In answering these questions, this accessible text provides a lively introduction to the essential skills of creative problem solving. Using extensive case studies and examples from a variety of business situations, Creative Problem Solving for Managers explores a wide range of problem-solving theories and techniques, illustrating how these can be used to solve a multitude of management problems. Thoroughly revised, this new edition retains the accessible and imaginative approach to problem-solving skills of previous editions. Coverage includes: • • • • advice on overcoming blocks to creativity key techniques, including lateral thinking, morphological analysis, synectics and group problem solving new PowerPoint slides to aid course leaders a revised and updated chapter on using computers to stimulate creative thought. As creativity is increasingly being recognized as a key skill for successful managers, this book will be welcomed as a readable and comprehensive introduction for students and practising managers alike. Tony Proctor is Emeritus Professor of Marketing at the University of Chester, UK. Given the uncertainties of the organisational environment, the ability to creatively approach, manage and resolve problems that are difficult to describe and structure will be an increasingly valued business skill. This new edition of Creative Problem Solving for Managers offers up-to-date guidance on how to approach and resolve such problems. Jon Curwin, Senior Learning and Teaching Fellow, Birmingham City Business School, UK You will never again approach creativity and problem solving in quite the same light. Taking into account both the ‘what’ and the ‘how’, this valuable book provides readers with the knowledge needed to solve a range of management problems. A masterpiece! Dr Kim Hua Tan, Reader, The University of Nottingham, UK Creativity is a fundamental skill for business managers. Tony Proctor’s book provides an excellent practical guide to this topic. The case studies, creativity techniques and the pragmatic knowledge and insights within this book make it essential reading for managers, facilitators and students alike. Dr Elspeth McFadzean, Visiting Academic Fellow, Henley Business School, the University of Reading, UK Essential reading for anyone aspiring to enhance organisational creativity and innovation. Supported by comprehensive and in-depth discussion of theory, this book provides an approach to creativity that really does work in practice. I have used previous editions as a core text at undergraduate and postgraduate levels and am inspired by the updates in this fourth edition. Lots of useful cases and examples to stimulate debate, including the use of technologies in creativity, brings this edition right up to date. Dr Pauline Loewenberger, Lecturer, the University of Bedfordshire Business School, UK This is an excellent book for understanding how best to approach complex situations and come out with creative solutions to the strategic problems that managers face. Grounded in practice and providing detailed case studies of real business situations, this book gives readers a solid foundation for developing their own creative solutions to problems. Paul Hughes, Senior Lecturer, Durham University, UK Creative Problem Solving for Managers Developing skills for decision making and innovation Fourth Edition Tony Proctor R Routledge Taylor &. Francis Group LONDON AND NEW YORK First published 1999 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN and by Routledge 711 Third Avenue, New York, NY 10017 Reprinted 2002 (twice), 2003 Second Edition 2005 Third Edition 2010 Fourth Edition 2014 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2014 Tony Proctor The right of Tony Proctor to be identified as author of this work has been asserted by him in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data Proctor, Tony. Creative problem solving for managers: developing skills for decision making and innovation/Tony Proctor. – 4. pages cm Includes bibliographical references and index. 1. Problem solving. 2. Decision making. 3. Management. I. Title. HD30.29.P763 2013 658.4⬘03 – dc23 2013020152 ISBN: 978-0-415-71402-0 (hbk) ISBN: 978-0-415-71403-7 (pbk) ISBN: 978-1-315-88299-4 (ebk) Typeset in Perpetua and Bell Gothic by Florence Production Ltd, Stoodleigh, Devon, UK Contents List of illustrations Preface to the fourth edition x xv 1 CREATIVITY AND ITS IMPORTANCE IN BUSINESS 1 Introduction 1 Changing times 2 Some definitions of creativity 3 Invention and creativity 4 The importance given to creativity in business 6 How creative thinking may be used in management 9 Conditions in which creative thinking is needed most 11 Paradigm shift 14 Questions 15 Cases 16 2 BLOCKS TO CREATIVITY 20 Introduction 20 The need to be ready for change 21 Mindset 21 When mindset blocks us 22 Other barriers to an individual’s creativity 23 Dealing with an individual’s blocks to creativity 23 Diagnosing whether someone is blocked in their thinking 25 How techniques help to overcome blocks 27 Blocks to organizational creative thinking and ways of dealing with them 29 Elements and conditions of creative organizations 30 Questions 31 Cases 32 v CONTENTS 3 THEORIES OF CREATIVITY AND THE CREATIVE PROBLEM-SOLVING PROCESS 37 Introduction 37 Creative thinking 39 The investment theory of creativity 39 The brain as an information processor 41 Convergent and divergent thinking 45 The conditions of creative thinking 45 Origin of creativity 47 The cognitive theory of creativity 49 How we get ideas: the index metaphor 52 Problem-solving mechanisms 54 Analogical reasoning 55 Questions 59 Cases 59 4 PROBLEM SOLVING AND IMPROVISATION 61 Problem solving 61 Models 63 The problem-solving process 66 The problem-solving process and the creative process 69 Compositional and improvisational creativity 74 Some limitations on formal problem-solving approaches 76 Questions 78 Cases 78 5 FACTORS INFLUENCING PEOPLE’S ABILITY TO UNDERTAKE IDEATION What helps people get ideas 82 The techniques 85 Qualities of a creative person 85 Thinking style 87 Personality 87 Learning style 89 Mood or emotions 89 Problems in groups 90 The range of techniques and their suitability for solving different types of problem 91 Conclusion 92 Questions 93 Cases 94 vi 82 CONTENTS 6 OBJECTIVE FINDING, FACT FINDING AND PROBLEM FINDING/DEFINITION 97 Objective finding 99 Fact finding and problem definition/redefinition 101 Dimensional analysis 102 Redefinition approaches 106 Redefinition approaches: laddering 108 Redefinition approaches: goal orientation 109 Redefinition approaches: boundary examination 111 Redefinition approaches: progressive abstractions 113 Redefinition approaches: the ‘why’ method 114 Analytical techniques: decomposable matrices 114 Analytical techniques: cause-and-effect diagrams 117 Questions 119 Cases 119 7 MORPHOLOGICAL ANALYSIS AND RELATED TECHNIQUES 124 Introduction 124 Checklists 125 Attribute listing 128 Morphological analysis 131 Force-fitting triggers 135 Heuristic ideation technique 138 Component detailing 139 Sequence-attribute modification matrix 141 Questions 143 Cases 144 8 BRAINSTORMING AND ITS VARIANTS 148 Introduction 148 Classical brainstorming 149 The process of brainstorming 152 Wildest-idea variant 156 Stop-and-go brainstorming 156 Round-robin brainstorming 156 Gordon–Little variation 156 Trigger method 157 Problems with brainstorming 158 Brainwriting 159 Brainlining 159 Questions 161 Cases 161 vii CONTENTS 9 LATERAL THINKING AND ASSOCIATED METHODS 167 Introduction 167 Overview 168 Awareness 170 Assumptions 173 Alternatives 174 Provocative methods 178 Metaphorical thinking 184 Analogy 185 The discontinuity principle 187 Six Thinking Hats 187 Questions 188 Cases 189 10 SYNECTICS 193 Introduction 193 Synectics 194 Conducting synectics sessions 199 Synectics in action 205 Questions 208 Cases 209 11 PARADIGM BREAKING TECHNIQUES 215 Introduction 215 Weights for thought 215 Paradigm breaking techniques 218 Disruptive technology 226 Questions 227 Cases 227 12 MISCELLANEOUS IDEATION TECHNIQUES Suggestion box, exhibits and competitions 231 Clichés, proverbs and maxims 232 Storyboarding 234 Scenario writing 235 Scenario day-dreaming 236 Bionics 240 Free association 240 Two words 242 Story writing 243 Mind map 246 TRIZ 251 Vision building 252 viii 231 CONTENTS Questions 253 Cases 253 13 EVALUATION 256 Introduction 257 Sorting 258 Evaluation methods 260 The process of choosing 267 Qualitative evaluation: reverse brainstorming 269 Financial evaluation 271 Mathematical evaluation 272 Pay-off tables 273 Decision trees 273 Exercising choice 274 Questions 276 Cases 278 14 IMPLEMENTING IDEAS 286 Introduction 286 Ideas are not readily implemented 288 Sources of resistance to change 289 Role of communication in overcoming resistance to change 290 Putting ideas into practice 291 Reducing resistance to change 293 Climate for change 299 Questions 300 Cases 301 15 COMPUTER-ASSISTED CREATIVE PROBLEM SOLVING 303 Introduction 303 History of development 303 Structured approach to creative problem solving in computer programs 306 Types of computer-assisted stimuli 306 Conventional software 309 Questions 319 Cases 319 Appendix 1: Case example of the creative problem-solving process Appendix 2: Notes on problems References Author index Subject index 322 331 335 352 355 ix Illustrations FIGURES 1.1 2.1 2.2 2.3 2.4 2.5 3.1 3.2 3.3 3.4 3.5 4.1 4.2 5.1 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 x Paradigm life-cycle curve Jones’s blocks to creativity Perceptual block Why are 2013 coins worth more than 2007 coins? Is the aircraft flying towards you or away from you? The broken clock problem Overview of the chapter Brain theories: the Whole Brain Model (Hermann/Wallas) The conditions of creativity Semantic network The index metaphor Overview of Chapter 4 A model of the problem-solving process The factors influencing people’s ability to undertake ideation Position of the chapter within the CPS process Overview of objective finding and problem finding/definition Objective finding A toy manufacturer reviews its marketing position and strategies Fact finding Dimensional analysis Overview of the problem-finding process Defining the problem Problem situation 1 Problem situation 2 Problem situation 3 Problem situation 4 Problem situation 5 Laddering Goal orientation Boundary examination 15 24 25 28 28 28 38 43 46 51 53 62 64 83 98 99 100 100 101 104 105 106 107 107 107 107 108 109 109 112 ILLUSTRATIONS 6.17 6.18 6.19 6.20 6.21 6.22 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 8.1 8.2 8.3 8.4 8.5 8.6 9.1 9.2 9.3 9.4 9.5 9.6 10.1 10.2 10.3 10.4 10.5 10.6 10.7 11.1 11.2 11.3 11.4 11.5 11.6 11.7 Progressive extractions The why method Decomposable matrices Hierarchical subsystems of a motor car A decomposable matrix Cause-and-effect diagram Position of this chapter within the CPS process Which techniques to use Attribute listing for a torch Steps in morphological analysis SCIMITAR Force fitting process and triggers 1 Force fitting process and triggers 2 Heuristic ideation technique Component detailing Sequence-attribute modification matrix Two-dimensional grid facilitating sequence-attribute modification matrix Position of this chapter within the CPS process Overview of some brainstorming methods Classical brainstorming steps Gordon–Little variation Trigger method Brainlining Position of this chapter within the CPS process Perspectives Alternatives Provocative methods The nine dots problem Analogy relating increasing productivity with building a successful football team Position of this chapter within the CPS process Personal analogy – a glass of wine Direct analogy – paths across the marshes Symbolic analogy -the Scarlet Pimpernel Fantasy analogy – peace The synectics process: fantasy excursion method The synectics process: example excursion method Position of this chapter within the CPS process Mendeleev’s table as published in 1869, with many gaps and uncertainties Symbolic representation Symbols can be used in pictures A problem in symbols The ringmaster Different people have different perspectives 113 114 116 116 117 118 125 127 129 132 135 136 137 139 140 141 143 149 151 153 157 158 159 169 171 176 178 181 186 194 197 198 198 199 202 204 216 217 220 221 222 223 223 xi ILLUSTRATIONS 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 14.1 14.2 14.3 15.1 15.2 15.3 15.4 Chapter overview Clichés, proverbs and maxims Storyboarding Scenario writing Scenario day dreaming Structured free association Two words Story writing Using mind maps to combine checklists with brainstorming Fishbone diagram The Lotus Blossom method Position of the chapter within the CPS process Overview of the process of sorting and evaluation Sorting Mind map of ideas on the use of aluminium foil Castle technique Sticking dots method Example of using sticking dots Force-field analysis The choice process Reverse brainstorming Decision tree Cognitive mapping of the hierarchy of objectives and goals Position of this chapter within the CPS process Overview of acceptance finding Gannt chart detailing project timescales The stages in CPS covered by this chapter An overview of the ways in which computers can help in the creative thinking process Concept map Multiple cause-and-effect map 233 233 234 236 239 241 243 244 248 249 250 257 259 260 261 263 264 264 266 269 270 274 276 287 288 297 304 306 310 311 TABLES 7.1 7.2 7.3 7.4 7.5 12.1 13.1 13.2 13.3 13.4 Attribute listing: improving a torch Morphological analysis: new toy for a child Coping with seasonal workloads Extending the footwear range to more specialized products Aspects of a new newspaper supplement The TOWS matrix Advantage–disadvantage table Plus, Minus, Interesting Weighted decision matrix Example DCF calculation xii 128 133 133 134 134 237 262 262 267 272 ILLUSTRATIONS 13.5 13.6 13.7 13.8 15.1 Example of pay-off table Customer satisfaction rating of the garage Morphological analysis matrix Evaluating the ideas Scenario analysis 273 280 283 284 317 EXHIBITS 15.1 15.2 15.3 15.4 Visual analogy Collage of seven photographs The viaduct Trafalgar Square 312 313 314 315 xiii This page intentionally left blank Preface to the fourth edition Interest in creative problem solving never seems to wane. Perhaps this is not too surprising since the world is constantly changing and presenting new challenges. Pathways to the solutions of new kinds of problems are always in demand. In a world where nothing is certain and even long-established businesses can begin to crumble in a matter of months, radical new ways of looking at problems seem to be the order of the day. Creative thinking is not the ‘universal antidote’ capable of curing all, but it offers ways of examining problems that force us to question fundamental issues. It makes us challenge basic assumptions. There are no such things as firm foundations – the bedrocks of civilization can crumble into dust while we look on in awe and trepidation! I am often asked whether the various approaches I outline in this book really work. The answer to this, I feel, is really only known by those who use the methods. Moreover, it is always difficult to know if you would have been able to find an answer to a problem you did not know existed without the aid of the techniques I outline here. Or, indeed, for that matter, whether you might solve the problem more to your satisfaction by using other methods. The material contained in this book should appeal to a wide audience. I originally thought the subject matter was something that would, perhaps, most interest experienced and mature adults. I discovered that not only was it something that appealed to experienced managers, but it also held the attention of management students of all ages and backgrounds. One of my most enlightening experiences has been getting final-year undergraduates interested in the subject. The subject matter of this book will appeal to people who have a variety of different interests in management. Whether your primary interest is in accounting, personnel management, marketing, production, research and development, and so on, does not really matter since the subject matter contained in this book is relevant to all these interests. However, you must approach the subject with an open mind; and all the methods, no matter how ridiculous they may seem, should be treated seriously – but not so seriously that they cannot be enjoyed. The greatest barrier to appreciating the subject matter of this book is scepticism. I have made quite a lot of changes to the book from its third edition and expanded it from twelve to fifteen chapters. Here is a brief synopsis of the content of the book. Chapter 1 looks at the nature of changing times and reviews some definitions of creativity. It also explains the nature of invention and innovation, distinguishing in the latter case between product and process innovation. It highlights the importance of creative problem solving in enabling business executives to cope with novel or new problems. In examining the importance xv PREFACE TO THE FOURTH EDITION of creativity to business and managers, the chapter picks out those instances where it is most needed. The chapter ends by explaining the concept of paradigm shift and its relevance to business, managers and creative thinking. Chapter 2 argues that the blocks to creative thinking are essentially of two varieties – individual and organizational. First, it turns our attention to the various personal blocks that people may encounter when trying to solve problems, think creatively and deal with new kinds of problems. These blocks are to do with mindset and with factors to do with perception, emotion, expression and cultural influences. The chapter then continues by discussing how these blocks can be diagnosed in individuals and overcome. It then moves on to blocks encountered in organizational settings and the conditions which are needed to circumvent them and encourage creativity in organizations. Chapter 3 argues that creativity is explained best by the neuro-physiological functioning of the brain. It envisages a connection between the neuro-physiological functioning of the brain and the cognitive theory of creative problem solving discussed later in the chapter. It then gives attention to other important contributions to the theory of creative thinking. We look specifically at the notion of divergent and convergent thinking, and adopt the suggestion that the conditions under which ideation takes place are very important. We finish the chapter by looking at analogical reasoning, which is a cornerstone of many of the creative problem solving techniques we encounter later in the book and a building block of everyday thinking. Chapter 4 concentrates first on problem solving and later on the concept of creative problem solving. General ideas about problem solving and types of problem are discussed and several models of the process examined. This preludes a discussion later in the chapter which considers the process of creative problem solving. It looks at insights into problems and how they arise. Again, different models of the creative problem solving process are examined. The chapter concludes by discussing limitations that can apply when adopting formal problem-solving approaches. Chapter 5 offers an explanation concerning the suitability of the techniques outlined in subsequent chapters for gaining insights into different kinds of problem. It also puts forward the idea that different techniques may be perceived differently by different individuals. Not everyone is likely to feel comfortable using some of the techniques and there are good reasons for this. In this chapter we examine some of the main thoughts that address these issues. We look first at how an individual’s characteristics and modes of thinking and learning may impact on the use of the techniques in the creative problem-solving process (this is also extended to the group situation). We then look at which techniques are most suitable for solving different types of problems. Chapter 6 examines the process leading up to establishing and defining the problem. This is seen as a multistage process. The first stage, objective finding, essentially involves ‘divergent thinking to generate a list of problems or problem symptoms’. This is followed by convergence of thought to identify the most relevant problem areas for further exploration. Next is the factfinding stage, where overall comprehension of the problem is increased by the collection of relevant information. This also helps new ideas to be generated. The previously identified problem(s) may now be seen from a new perspective. There are a variety of problem definition mechanisms which we explore in the course of the chapter. Chapter 7 introduces morphological analysis and related techniques. The techniques we look at are essentially systematic structuring mechanisms designed to facilitate the gaining of xvi PREFACE TO THE FOURTH EDITION insights into the problem. A variety of techniques are considered including checklists, listing, morphological analysis, force-fit triggers, the heuristic ideation process and component listing. If the subject of a problem has one or more easily identifiable dimension most of these techniques may be useful tools for helping to generate ideas. Chapter 8 reviews some of the more popular forms of brainstorming. These include classical brainstorming, wildest-idea variant, round-robin brainstorming, Gordon–Little variant, trigger method, brainwriting and brainlining (brainstorming on the Internet). Limitations of brainstorming as a method are also examined. Chapter 9 discusses ‘lateral thinking’ under the headings of awareness, alternatives and provocative methods. The chapter considers each of these aspects in turn. Lateral thinking does advocate some ideation methods, and these come under the heading of provocative techniques. They include random stimulus, intermediate impossible, reversals, distortion and exaggeration, exposure, cross-fertilization and problem switching. These, along with the use of metaphors and analogies, are also covered as well as thoughts about the discontinuity principle. Chapter 10 takes a look at the subject of synectics. A method of using synectics is outlined and discussion given over to considering the various components that make up the synectics process. The chapter explains the four different types of analogies used and gives illustrations of each. Chapter 11 addresses the subject of breakthrough ideation. It starts by examining how a breakthrough idea was achieved many years ago and tries to draw some lessons from this. This is followed by examining a number of techniques that have been tried out in recent times to achieve break-through ideas. Visualization, symbolic representation and rich pictures are all mechanisms that can support this kind of thinking. Two other mechanisms are also discussed: wishful thinking and role playing. Finally, we point to the benefits that disruptive technologies can bring for those who discover and commercialize them. Such breakthroughs reflect paradigm shifts. Chapter 12 reviews some of the many remaining methods of creative problem-solving techniques that may be used. Many such techniques are illustrated and discussed on various websites on the Internet and in books written for the popular press. Most of these techniques are straightforward and would fit into MacFadzean’s category of paradigm preserving techniques. Some require more imaginative thinking and could lead to paradigm stretching or even paradigm breaking. Chapter 13 looks at methods of evaluation ranging from simple checklists to complex weighted scoring systems. First, however, it looks at sorting methods before examining evaluation methods. Many of the ideation methods that will have been examined in the previous chapters produce a large quantity of ideas. Before we can evaluate these ideas we need to sort them into categories or themes. This facilitates the process of making comparisons and evaluations. Finally, we give some thought to exercising choice. Chapter 14 reviews some of the problems of implementing ideas. First consideration is given to the various sources of resistance to change. Next we look at the role of communication in overcoming resistance to change. This is followed by an examination of how ideas might be put into action. Lastly, the chapter looks at how one might foster a climate for change in an organization. It also reviews a number of techniques and methods that can assist in the implementation of ideas. xvii PREFACE TO THE FOURTH EDITION Chapter 15 mentions the range of computer software that can be used to assist creative problem solving stretching from purpose-built software to more general-purpose software. The amount of software available has expanded considerably over the past few years with recent development of applications that will run on hand-held and mini computers fitted with touch screens – commonly referred to as ‘apps’. Developments on the Internet have also led to the setting up of social network sites and these too have facilitated the ideation process. Conventional computer software may be used creatively. Photographs and videos can act as a spur to ideation and, with the aid of computers, their use can be made in creative problemsolving sessions. Throughout the book there are ample illustrations of the key points. There are specific case studies attached to each chapter. The latter invite the reader to make use of all the knowledge he or she has gained about the creative problem-solving process through reading the book. In this the fourth edition I have also added new material as appropriate. In view of the additional material included in the chapters, the Reference section has been substantially added to and many recent references included. At the same time as adding new material, I have deleted some of the old material where I thought it was less appropriate. My thanks to Dr Elspeth McFadzean for her thoughts that techniques might be considered in the light of whether they are useful in paradigm preserving, paradigm stretching or paradigm shifting. I am also grateful to anonymous reviewers for comments that led me to include the new material. Tony Proctor, 2013 xviii Chapter 1 Creativity and its importance in business Aircraft pollution With the advent of the jet engine and advanced navigational instrumentation the airline industry was born. The death knell was sounded for the transatlantic passenger liners, and as one product life-cycle drew to a close a new one began. The jet engine heralded a paradigm shift in civil aviation, and creativity was needed to harness, to exploit and to market the applications of the newfound technology. Some fifty years on, important questions are now being raised about the viability of air travel in the long term. High levels of environmental pollution from aircraft emissions during flight and the environmental impact of the growth of airports in densely populated areas are only two of the issues that are becoming a cause for concern. Creative thinking is required to find ways of dealing with both of these issues. INTRODUCTION In this chapter we first review the changing times and look at the impact it has on us and on the need for creative thinking. Next we review definitions of creativity and highlight the importance of creative problem solving in assisting business executives to get to grips with novel or new problems. Next we distinguish creativity from innovation. Creativity in business is extremely important since it is the means of generating new ideas that are required to deal with previously unmet situations. It also gives businesses a competitive edge in the market place enabling them to survive and even stay well ahead of competition. We pick out those instances where creativity is most needed and noting, in particular, the phenomenon of paradigm shift. Paradigm shift occurs when a totally new way of doing things becomes universally adopted. This chapter sets the scene for the next chapter where we discuss some of the blocks people may encounter in coming up with ideas and how these blocks may be overcome. 1 CREATIVITY IN BUSINESS CHANGING TIMES The first few years of the present century saw technology advancing in line with that experienced during the last years of the twentieth century. The trend has continued but alongside the prominence of technology in creating change economic, political and social pressures have come to dominate the scene. In the past few years the latter have begun to produce problems that are difficult to solve. In business there is need to obtain insights into such problems. Questions such as ‘How does one stimulate growth in sales and profits when there is no growth to be had?’ may be at the back of managers’ minds. Or even, ‘How can we ensure that the business will survive?’ They cannot, however, assume, like Dickens’ Wilkins Micawber that ‘something will turn up’. Challenging assumptions is at the heart of creative problem solving. In Chapter 2 of this book we will examine the reasons why people have difficulty in challenging assumptions and thinking in a creative manner about such problems. In Chapter 5 we will explore this topic further and see how and why people have different approaches and preferences to thinking and how this can impact on their approach to finding solutions to some kinds of challenging problems. Of course, it is helpful to understand something about how people get ideas and how this can be encouraged in individuals and organizations. In Chapters 3 and 4 we look at the theoretical ideas relating to creativity and creative problem solving. The techniques sections of the book are intended as guides to help people generate ideas. Of particular interest may be Chapter 11, which features paradigm breaking approaches and comments on the positive and the negative consequences of disruptive technology. Evaluating and implementing ideas is perhaps the hardest part of the creative problemsolving process. Ideas arise sequentially and what we determine to be the best idea today we may not prefer tomorrow. In addition, just how certain can we be that our judgements are sound? Are we really using the right criteria by which to judge ideas? When it comes to implementing ideas the situation is equally obscure. Moreover, it is all well and good coming up with what seem to us to be good ideas, but will those who have to put the ideas into practice hold the same views? Technology marches steadily onwards developing new, more powerful and convenient devices to improve people’s lives both inside and outside of work. The Internet has grown like some giant spider’s web across the vast emptiness of hyperspace providing hubs of activity for social and business networking and exchange of communications. It provides a mechanism for the exchange of creative ideas and insights into intransigent problems. At the same time technology has not stood still in developing more convenient and sophisticated personal computers and communication devices. Apps are one of the buzzwords of the day and they abound in huge numbers, some even facilitating the use of creative problem-solving techniques. These are all developments that we will examine in Chapter 15. Let us now turn to look at creativity and how people have tried to define it. 2 CREATIVITY IN BUSINESS SOME DEFINITIONS OF CREATIVITY What is creative thinking? Creativity is a concept that we often come across in our everyday conversation. We hear of creative people, admire creative objects of art or read creative books. Yet, despite our almost innate understanding of what it means to be creative, there is much confusion about the nature of creativity. Wertheimer ([1945] 1959) suggested that creative thinking involved breaking down and restructuring our knowledge about something in order to gain new insights into its nature. Understanding our own cognitive model of reality may therefore be an important determinant of our ability to think creatively. Kelly (1955) and Rogers (1954) both supported this argument by maintaining that we can be creative by gaining an understanding of how we think about a subject. Creativity is something that occurs when we are able to organize our thoughts in such a way that readily leads to a different and even better understanding of the subject or situation we are considering. Maslow (1954) thought of creativity as having two levels. He envisaged primary creativity as the source of new discovery, real novelty, or ideas that depart from what exists at a given point in time. He saw secondary creativity as a characteristic possessed by many scientists in their collective search for discovery achieved by working alongside other people, extending the work of previous researchers, and exercising prudence and caution in their claims about new insights or ideas. He envisaged creativity as an aspect of human nature that was to be found universally in all human beings. In children he felt it to be an easily observable phenomenon but suggested that it seemed to become lost in adults, surfacing mainly in dreams with the relaxation of repressions and defences. It was a view that was echoed subsequently by Stein (1974), who argued that without such an assumption the techniques for stimulating creativity would have no application. Torrance (1965) defined creativity as: The 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 them; and finally communicating the results. This contrasts with that of Newell et al. (1962). They adopted a criterion-based approach, which suggests that any problem solving may be creative. Indeed, Haefele (1962) argues that every one of us must be creative to some degree because we have to find new solutions to newly presented problems. Rickards (1985: 5) defines creativity as ‘the personal discovery process, partially unconscious, which leads to new and relevant insights’. Rickards (1988: 225) also advocates a view of creativity as a universal human process resulting in the escape from assumptions and the discovery of new and meaningful perspectives, or as an ‘escape from mental stuckness’. In broad terms he believes that creativity is to do with personal, internal restructuring. Creativity is very much concerned with how we imagine things. Although language is a medium of expressing our creative feelings, our creativity is often gained through images and 3 CREATIVITY IN BUSINESS sensations that are difficult to express in words. As Koestler (1964) said: ‘True creativity often starts where language ends.’ Weinman (1991) considered that creativity is the ability to go beyond the mundane and obvious and reject the traps of repetition and pre-set categories. Similarly, Gilliam (1993) defined creativity as a process of discovering what has not been considered – the act of making new connections. More simply, creativity can be thought of as ‘the production of novel and useful ideas in any domain’ (Amabile et al., 1996: 1155) and in a business context: ‘creativity is the production of new ideas that are fit for a particular business purpose’ (Pryce, 2005). Parkhurst (1999) points to the lack of consensus regarding the definition of creativity but that many researchers agree that creativity may be defined with regard to the terms ‘new and useful’ (Mumford, 2003), which suggests that a creative product is that which is deemed to be novel or original and useful or adaptive (Batey, 2012). These various definitions seem to agree that creativity involves an ability to come up with new and different viewpoints. However, any definition of creativity is complicated because the concept is multifaceted. INVENTION AND CREATIVITY Invention is an act of creativity that results in a device, process or technique that is novel enough to produce a significant change in the application of technology. The application of creativity is fundamental to invention. The element of novelty has various forms; it may be a new device or process, or even material, but it may also consist of a combination of existing knowledge in a manner not previously considered. For example, James Watt added a separate condensing chamber – a new device – to Thomas Newcomen’s atmospheric engine and created the steam engine. We need to differentiate between invention and innovation. One may look on invention as the formulation of new ideas for products or processes, whereas innovation concerns the practical application of new inventions into marketable products or services. It is also useful to differentiate between two types of innovation: Product innovation: this comprises changes to attributes of product, resulting in a change in the way the product is perceived by consumers – for example, wireless connectivity to the Internet as opposed to access by cable. Process innovation: this relates to changes to a service or product production process. It usually produces benefits in the production process, i.e. increase in productivity and cost reduction – for example, emails compared to mail delivered through the postbox. From a business development point of view and in terms of developing growth strategies it is suggested that breakthrough innovation should not be the focus of attention. Indeed, the latter strategy may be too radical for some markets (Treacy, 2004). Evidence points to over 90 per cent failure rate among new products launched into the marketplace and that the majority of these were based on radical technologies (Christensen et al., 2005). Such evidence 4 CREATIVITY IN BUSINESS PRODUCT INNOVATION Digital camera Not that many years ago, amateur photographers zealously guarded their 35mm cameras. They took them everywhere when going on holiday and some even engaged in home printing of coloured photos when they got back home. To get really good photos required a great deal of skill. Given the cost of prints and film it could be an expensive pastime, too. One might expend a good deal of time, effort and money just to get a few really good photos. The advent of the digital camera has changed nearly all that. Skill is still required to get really good photos, but cost and time have been reduced very substantially to do so. The modern digital camera enables us to take a photo and print it out on our computer at home in a matter of minutes. The cameras also offer many more features and cost much less than the 35mm ones did just ten years ago. Process innovation How many examples of process innovation can you think of? Here are four for a starter: 1 2 3 4 Introduction of a bar-coded goods-tracking system. Introduction of GPS tracking devices for transport services. Implementation of computer-assisted design for product development. Implementation of a new reservation system in a travel agency. indicates that, in order to remain competitive, organizations should seek to develop new products via incremental technologies (Moon, 2005). Adopting a process of continuous improvement to existing products appears to be a requirement of continued success (Randal et al., 2005). Adopting such a strategy involves the redesign of existing models/products with incremental technologies and it produces cost savings in terms of time and money and may lead to retention of existing customers (Treacy, 2004). Innovative technologies and tools were crucial for Google to become the world’s most popular search engine and a robust financial enterprise with its market value continuously rising (Vise, 2005). The two general theories of invention are the deterministic and the individualistic. The deterministic theory holds that when economic, technical and cultural conditions are ripe, an invention will be made by one inventor or another; who does it is just historical accident. This theory has some support in the numerous instances of simultaneous and independent invention. It also helps to explain the competing claims that emerged over the invention of the steamboat, the electric telegraph, the incandescent lamp and the aeroplane. The theory is also plausible because timing is unquestionably important in invention. Also, inventors are likely to focus on projects that are reasonably attainable and for which there is a recognizable need or demand. 5 CREATIVITY IN BUSINESS INVENTIONS, INNOVATIONS OR JUST CREATIVE RESEARCH? Gene research In 1988, Rudolf Jaenisch and co-workers succeeded in implanting in mice the gene for a hereditary disease of humans. It was thought that it would open the way to the study of such diseases and to improved treatment. Superconductors In 1911, Heike Onnes discovered that electrical resistance in mercury disappears when the mercury is cooled to absolute zero. This phenomenon is known as superconductivity. It was found subsequently that other metals and alloys also become superconducting at very low temperatures. Today, superconductors are used in large and powerful magnets, mainly in particle accelerators and the magnetic-resonance imaging machines used in medicine. There are other potential applications. Infinity of non-smooth four-dimensional spaces In 1987, Clifford Taubes discovered that the infinity of non-smooth four-dimensional spaces is uncountable (an infinity is countable if each element in it can be matched to one of the counting numbers). Quarks When physicists first began to think deeply about quarks they were puzzled because isolated quarks had not been observed. One idea was that quarks might be the ends of strings. Assuming that a particle was a string and that quarks were just the ends of the string, then it was plausible why one never found a quark without the other. A string is essentially a one-dimensional object in a space of four dimensions (counting time as a dimension). Physicists turned to topology, the mathematics of knots and surfaces, to find out what the implications might be of using strings instead of particles in their calculations. To their surprise, they discovered that strings simplified the calculations. Question How would you classify each of the above four illustrations in terms of inventions, innovations or just creative research? THE IMPORTANCE GIVEN TO CREATIVITY IN BUSINESS In management, problems arise as different or new situations present themselves and they often require novel solutions. Frequently, it is difficult to see solutions to problems by thinking in a conventional fashion. Logical thinking takes our existing knowledge and uses rules of inference to produce new knowledge. However, because logical thinking progresses in a series 6 CREATIVITY IN BUSINESS CREATIVITY AND INVENTIONS Christian Doppler gave his name to a well-known principle which he discovered in the nineteenth century (the Doppler effect). We can observe it any time a motorist sounds his or her horn while passing us by. As long as the source of the sound approaches us, the pitch seems higher than when it moves away from us. Sound waves are just one form of wave subject to this effect. Can you think of how twentieth-century inventors might have made use of this principle to come up with commercially applicable inventions? See Appendix 2 for the solution. of steps, each one dependent on the last, this new knowledge is merely an extension of what we know already, rather than being truly new. It would seem, therefore, that logical thinking has only a limited role to play in helping managers to be creative. The need for creative problem solving has arisen as a result of the inadequacies of logical thinking. It is a method of using imagination along with techniques that use analogies, associations and other mechanisms to help produce insights into problems. Over the past few decades creativity has become a highly fashionable topic in both the academic and business worlds. That is not to say that creativity did not exist before, but its importance to the continued success of an organization had yet to be recognized. Many management problems require creative insights in order to find satisfactory solutions. Nowadays, the majority of organizations are fully aware of just how vital creativity is to their prosperity. Over time, considerable research has been undertaken that enables us to obtain a better understanding of creativity and become more innovative ourselves. Change is an ever-present phenomenon to which businesses of all kinds are forced to respond if they want to stand the best chance of survival and prosperity. But how should they respond? An increasing number of problems have no precedents, and there are fewer tested ways of approaching them. This poses problems for organizations. Many suggest that creativity is indeed the answer; and, as Majaro (1991: 1) suggests, ‘It is universally assumed that enhanced creativity can provide a company with a competitive edge’. A survey sponsored by Porter/ Novelli among 100 executive readers of Fortune 500 in 1993 found that people thought creativity was essential to ensure success in business. The finding has been reiterated several times since in different sources (De Brabandere, 2005; Gogatz and Mondejar, 2005). A plethora of literature has emphasized the need for creativity in business. Indeed, Oldman and Cummings (1996: 609) noted that ‘numerous commentators have argued that enhancing the creative performance of employees is a necessary step if organisations are able to achieve competitive advantage’. There are strong arguments to support the view that in the second decade of the twentyfirst century the competitive marketplace demands ever-increasing value to customers, which translates to lowest total cost, highest total quality, fastest total cycle time, and highest total 7 CREATIVITY IN BUSINESS AN ECONOMIC CLEANING JOB: FINDING A LESS COSTLY WAY OF PERFORMING A TASK Tank Refurbishers clean out and reline industrial storage tanks. In an increasingly competitive market, margins are becoming tighter and profitable business ventures more difficult to find. Nearly all the tanks the firm refurbishes are cylindrical and vary considerably in terms of the volume of liquid they contain. The procedure is to remove the ends, clean and repaint the inside of the cylinder, clean and repaint the end sections and reweld the pieces after completion of the repainting. How might the firm seek to be more competitive in the pricing of its jobs? See Appendix 2 for the solution. overall customer satisfaction (Atkins et al., 2002). This in turn supports the argument that there is a need for creative continuous innovation. In a globally competitive environment where firms compete on both quality and cost, then the means of improving operating procedures and achieving cost reductions also demands creative thinking. As global competition intensifies, creativity helps to establish and maintain a competitive advantage (Meisinger, 2007). Why is creativity in management important? The main problem in management, according to James March (1988), is that: ‘Organisations face a large number of problems of about equal importance, but only a few solutions. Thus the chance of finding a solution to a particular problem is small.’ In order to identify and so solve many of the problems that arise in business it is necessary to challenge the problem-solving capabilities of those in charge. In many cases the creative process that is used to approach problems has to be restructured and redeveloped in order to produce new ideas and perspectives. Change is an intrinsic necessity for a company that wishes to perform well in the long term. As John Harvey Jones stated: ‘Unless a company is progressing all the time, it is in fact moving backwards. It is quite impossible to maintain the status quo’ (Rogers, 1996). Attempting to do things in the same way as they have always been done in the past can lead to difficulties in a business environment that is experiencing rapid cultural, economic or technological change. Change is an ever-present phenomenon to which businesses of all kinds are forced to respond if they wish to stand the best chance of survival and prosperity. The rapid growth of competition in business and industry is often quoted as a reason for wanting to understand more about the creative process (see, for example, Van Gundy, 1987; Rickards, 1990). Many firms are continually experiencing pressure to enhance old systems and products. Growth and survival can be related directly to an organization’s ability to produce (or adopt) and implement new products or services, and processes (Van Gundy, 1987). One of the key aspects of any organization’s success or failure is its ability to stay ahead of the competition in a rapidly changing environment. The modern business, with its emphasis on 8 CREATIVITY IN BUSINESS competition, building larger markets, strategic planning, team working, etc., has created the need for new problem-solving and decision-making strategies. Looking at the British economy, for example, there has been repeated criticism of the comparative lack of innovation in British manufacturing. Porter and Ketels (2003) argue that managers in British firms are slow to adopt new management techniques, attributing this to a combination of low investment in new technology, and to weak employee training and development policies. They argue that a renewed emphasis on skills development, enterprise and innovation is necessary if the British economy is to remain competitive. Another reason is that managers need to discover new and better ways to solve problems (Ackoff and Vegara, 1988). In particular, an increasing number of problems have few or no precedents, hence there are fewer tried and tested ways of approaching them with the anticipation of reaching a successful outcome. To stay in business a company has to respond creatively to the problems it faces. Problems may exist in both the external and internal environments. The former poses problems such as how to cope with slow economic growth, how to deal with new entrants to an industry, how to grow sales at the pace of competition in high-growth markets, how to deal with new technological developments and how to cope with shorter product life-cycles. The latter poses problems to do with poor internal communications, financial problems, alienated or poorly motivated staff, and inadequate planning. Changes within a company, forced by either internal or external factors, create an unhappy climate for the company and its workers. Management needs to respond positively to such situations. Creativity is considered to be a vital asset for any person who is in a leadership role (see, for example, Bennis and Nanus, 1985; Ekvall, 1988; Banks and Winston, 2008; Carr, 2010). Creative leaders actively hunt for new problems and are especially successful in handling new challenges that demand solutions outside the routine of orthodox strategies. They often possess significant vision and are able to inspire others by their creative talents. It has been argued that creativity is an important human resource (Barron, 1988) which exists in all organizations. Organizations have to try to make use of this resource by devising settings that permit creative talents to thrive. Employees’ expertise and skills are an important asset in a knowledge-based economy, and have positive impacts on growth and jobs in the economy. Of particular importance are those that produce, adapt and diffuse new technical knowledge. Successful innovation depends on the ability to mobilize technical resources, knowledge and other inputs needed in the innovation process. This includes sources of knowledge, such as networks of firms, concentrations of research and development (R&D) and business services. When this is available, it enhances the ability to innovate. The interface between science and society provides a platform for increased competitiveness. It permits knowledge transfer mechanisms that bring knowledge to the market as commercialized products. HOW CREATIVE THINKING MAY BE USED IN MANAGEMENT Creative thinking benefits all areas and activities of management. It is required to dream up better ways of marketing goods, to devise new production methods, to find new ways to 9 CREATIVITY IN BUSINESS ILLUSTRATIONS OF HOW CREATIVITY MAY BE USED IN MANAGEMENT • • • • • • To To To To To To make more effective use of a manager’s time improve a product’s appeal to customers improve motivation among staff appeal to customers’ wants and needs cut costs through more efficient/effective production methods identify new and profitable product-market opportunities motivate people, and so on. Creativity turns up in every business situation where there is a chance that things can be done in a more businesslike, more profitable or more satisfying way. The following are typical of the kinds of problem that require creative thinking: • • • • • • • How to make more effective use of a manager’s time. How to improve a product’s appeal to customers. How to improve motivation among staff. How to appeal to customers’ wants and needs. How to cut costs through more efficient/effective production methods. How to identify new and profitable product-market opportunities. How to get skilled and experienced staff to stay with the company without paying them excessively high salaries. Problems that require creative thinking are ‘open-ended’ problems – that is, problems for which there is more than one solution. Executives have to make decisions that require creative problem solving in planning, organizing, leading and controlling their organizations: Planning – Determining the mission of the organization. – Determining the organizational objectives. – Identifying strengths, weaknesses, opportunities and threats. – Adjusting the organization behaviour and strategies to competitors’ strategies. – Deciding how to implement competitive strategies. Organizing – Deciding what jobs need to be done within an organizational unit. – Deciding how various jobs within an organizational unit can be grouped together, etc. – Deciding how much authority should be delegated to various organizational positions. – Determining how best to train people for their jobs. Leading – Finding ways of increasing productivity in the workplace. 10 CREATIVITY IN BUSINESS Controlling – Deciding what systems of control are needed. – Setting standards. – Identifying why standards/objectives have not been achieved. Formulating strategy is another area that can benefit from creative thinking. Mintzberg (1987) identified five activities that describe the strategy process: 1 2 3 4 goal/objective setting; analysis (internal and/or external); development of strategic alternatives and selection; implementation and evaluation. He went on further to advocate the value of mental models in decision making. These models represent commonly held understandings that define the logic of a system and incorporate rule-like generalizations about what will and what will not work in a particular system. While rule- based mental models no doubt can aid problem solving, one should challenge the assumptions upon which they are predicated in the event they cease to provide pathways to solutions. Indeed, challenging assumptions is fundamental to creative thinking. Morecroft (1992) argues that strategy support tools are useful in terms of helping managers visualize strategy and its implications. In this latter context Tan and Platts (2003) found support for the visualization of complicated analysis as an aid to decision making. Furthermore, Dyson et al. (2007) argued that strategy tools can be used within the strategy development process to ‘rehearse strategy’ and facilitate creating and testing strategic initiatives, instead of ‘passively awaiting feedback signals that implementation is off course’. The environments in which organizations operate produce both opportunities and threats. Organizations bent on survival and success in the dynamic business environment need to use suitable management tools that can identify emerging issues that are important for their businesses. If the cumulative changes in the economic, technological, social, political and cultural environments remain unnoticed by a company’s managers until it is too late to respond, the problems they create may be insuperable (Large, 1992). Greater environmental turbulence, particularly economic uncertainty, demands that new ways of thinking and behaving are required to enable businesses to survive (Rundh, 2007). In particular, innovation is a key differentiator between successful and unsuccessful firms in difficult environmental conditions (Tellis et al., 2009). Rundh (2007) argues that to be successful, a company should react quickly to the changing market environment and improvisation enables this (Moorman and Miner, 1998) (see Chapter 4). CONDITIONS IN WHICH CREATIVE THINKING IS NEEDED MOST It is argued that in an organizational sense creative thinking is required most when there is a lack of consensus regarding goals and also a lack of understanding about cause–effect relationships (Thompson, 1967). Disagreement often occurs when problems arise that have not been previously encountered, and when outcomes and goals are uncertain. 11 CREATIVITY IN BUSINESS CREATIVITY IN ACTION Who could have envisaged fifty years ago the retail development complexity of travel agents or the shopping complexes at airports such as London Heathrow, London Gatwick, Manchester International, Amsterdam, Kuala Lumpur, Munich, Madrid and Barcelona – to mention just a few. Indeed, some of the major airport complexes have developed almost into miniature shopping centres in their own right. The planners of such development complexes continue to exercise their creative problem-solving skills in order to find more ways of satisfying their customer en route to various destinations. The airlines themselves have become more creative in their thinking and in the way in which they approach problems. Not everyone, however, is always happy with the outcome of such creativity, as was evidenced in the reaction of some distinguished members of the public to the novel tailfin logo adopted by British Airways in 1998. In recent years airlines have come to pay more attention to the logo on their aircraft, seeing it as an important way of portraying their brand image. Traditionally, Air Canada planes were white with bright red lettering and a big red maple leaf on the tail. However, research showed that the strong image was a real problem with Canadian users because of its association with government bureaucracy. Apparently, Canadians adore Canada but are much less favourably disposed to its government. Canadians tend to attribute a host of hearth-and-home values to themselves and their country: compassion, friendliness, a progressive outlook and a law-abiding nature. It was decided to emphasize these associations while de-emphasizing the government part. The maple leaf was kept but it was rendered in a more natural earthy red on a new evergreen tail – the reasoning being that the stark red-on-white contrast was too much associated with the government image. The overall effect makes the new planes look a lot less like flying Mounties. British Airways, too, has had its dose of creative thinking. It was revitalized by Sir Colin Marshall in the 1980s with a particular directive to focus on the customer. An effective internal marketing programme was based on the notion that employees would not treat customers better until they themselves were treated better. Marshall established profit sharing and a two-day seminar at which attendance was compulsory for all employees. The seminar focused on all relationships that employees might have with other employees, bosses, customers or even family members. It was felt that the programme contributed significantly to raising staff morale and to better customer relations. Among the creative ideas to emerge was the installation of TV cameras in passenger disembarking areas, enabling them to register complaints immediately on landing. These are then dealt with in a timely manner, and the customer is informed of what action has been taken. Changing the image of British Airways was also something to which attention was given. New uniforms for staff, new exterior paint on planes, new interiors for planes, new passenger lounges and an expensive advertising campaign were employed to promote the new image of British Airways. The airline business is immensely 12 CREATIVITY IN BUSINESS competitive, and all companies have to strive to find ways of identifying means of establishing a competitive advantage for themselves. This is often sought by trying to improve the quality of service offered in relationship to the price charged or through the nature of the augmented service offered. Service quality includes such things as: 1 2 3 4 5 6 7 8 Tangibles. Do the physical facilities, equipment and appearance of personnel associated with the service promote confidence in the quality of the service? Reliability. Is there evidence of an ability to perform the promised service properly the first time? Responsiveness. Is there a willingness to help customers and provide prompt service? Competence. Do the personnel possess knowledge and skill, and have they an ability to convey trust and confidence? Credibility/trustworthiness. Is the organization trustworthy and does it always deliver what it promises to deliver? Empathy. Does the provider of the service provide its customers with individual attention? Courtesy. Do customers perceive the service provided to be a friendly one? Communication. Are customers kept informed about the service offered in the language they can understand? Do the providers of the service listen to what the customers have to say? The augmented service refers to activities or additional services that are tangential to the physical transportation of customers from the point of departure to their destination. Question In what ways might airlines offer an augmented service to customers? Can you think of any that are not currently offered? Such is the nature of the situation created by environmental turbulence that it has been used as a creative force for change. A research project (Martin et al., 2005) on the changing nature of leadership showed 84 per cent of the 300 executives and senior managers surveyed believed that the definition of effective leadership had changed in the previous five years as business challenges grew more complex. Palus and Horth (2002) argued that managers need to scan information quickly and make rapid judgements. They observed that when managers are faced with a complex problem, they tend to spend only 10 per cent of the available time examining a problem and its context, while 90 per cent of their time is spent on generating a solution. Perhaps not surprisingly, the result is that managers often end up solving the wrong problem. Palus and Horth (2002) suggest several approaches for breaking free of our habitual ways of seeing in order to become innovators: 13 CREATIVITY IN BUSINESS • • • • • • Alter perspective radically by changing one’s point of view. Ask for the opinions of others and collaborate with others who have the skills and perspectives one lacks. Use questions to take aim at the root of the issues faced. Spend time among customers, constituencies and competitors to gain new perspectives. Keep track of ideas. Change the pace of attention to information and knowledge acquired. These and other suggested approaches are considered in later chapters of the book. The need for creative thinking often becomes paramount when paradigm shift occurs or is likely to occur soon. PARADIGM SHIFT Kuhn (1970) defined and popularized the concept of ‘paradigm shift’ (p.10). Kuhn argued that science does not evolve, but rather it follows a ‘series of peaceful interludes punctuated by intellectually violent revolutions’, and in those revolutions ‘one conceptual world view is replaced by another’. A paradigm is a set of rules and regulations that define boundaries and help us to be successful within those boundaries, where success is measured by the problems solved using these rules and regulations. Paradigm shifts are different from continuous improvement. Examples include going from donkey cart or horse-drawn carriage to car, or travelling long distances by aeroplane instead of by bus or ocean liner. Paradigm shifts have made it possible to send complex, accurate messages over great distances; they have facilitated moving from primitive methods such as shouting, smoke, fire, drum and flag signals, to highly sophisticated mechanisms such as telegraph, telephone, fax, live video by wire, optical fibre and communications satellite. Paradigms have life-cycles, and towards the end of the life-cycle problem solving becomes more costly, more time-consuming and less satisfactory (Figure 1.1). Solutions no longer fit the larger context because of changes that have occurred elsewhere. Nowhere is this better illustrated than in the case of needing to improve parts of the UK motorway network. Widening sections involves not only millions of pounds of taxpayers ‘money, but also places an additional unestimated burden on motorists in terms of long delays, excessive fuel consumption while negotiating the sections involved and psychological stress, which is difficult even to estimate. The paradigm of widening busy stretches of motorways must surely be in the decline stages of its life-cycle. A paradigm shift is required urgently. Towards the end of the life-cycle, problem solving becomes more costly, more timeconsuming and less satisfactory. Solutions no longer fit the larger context because of changes that have occurred elsewhere. Paradigm shifts require a change in perspective on the subject. Blinkered thinking associated with holding too rigorously to a paradigm can lead to missing opportunities and overlooking threats that may have a critical impact on a business. Two competitors may see the same opportunity or threat in different ways, and the one that is able to make the best response can gain a sustainable competitive advantage over its rival. 14 % Problems solved CREATIVITY IN BUSINESS 80 60 40 20 0 Time Towards the end of the life-cycle, problem solving becomes more costly, more time-consuming and less satisfactory. Solutions no longer fit the larger context because of changes that have occurred elsewhere. Figure 1.1 Paradigm life-cycle curve The process of paradigm shift can be encouraged and effected early through the use of creative thinking. Creative thinking brings into place notions and ideas that would not normally be contemplated in problem solving. Creative problem-solving methods make extensive use of techniques and approaches that help to find solutions to recalcitrant open-ended problems. The ability to tolerate ambivalence between opposites or two incompatible subjects is thought to characterize highly productive creative thinking. Edison’s invention of a practical system of lighting involved combining wiring in parallel circuits with high-resistance filaments in his bulbs, two things that were not considered possible by conventional thinkers at the time. Because Edison could tolerate the ambivalence between two incompatible things, he could see the relationship that led to the breakthrough. QUESTIONS 1 Why should the modern-day manager need to know about creative problem solving? 2 Why is creative problem-solving expertise an important asset for any business executive? How might executives improve their creative problem-solving skills? 3 What is paradigm shift? How does it relate to creative problem solving? 4 What kinds of surprises do you think the twenty-first century might have in store for us as: (a) workers, (b) consumers, (c) producers, (d) managers? 5 Koestler said: ‘True creativity often starts where language ends.’ How would you interpret this statement in the context of business? 6 If we tend not to think about what we think we know already, and existing ideas tend to make us myopic about new possibilities, how can we hope to get new insights into existing problems? 7 James March argues that ‘Organisations face a large number of problems of about equal importance, but only a few solutions. Thus the chance of finding a solution to a particular problem is small.’ Does this mean that organizations must spend most of the time ‘muddling through’? Why or why not? 15 CREATIVITY IN BUSINESS 8 Growth and survival can be related directly to an organization’s ability to produce (or adopt) and implement new products or services, and processes (Van Gundy, 1987). How does one reconcile this suggestion with the fact that many products appear to have been around for many years (e.g. Mars Bar) while others enjoy a revival (e.g. the Volkswagen Beetle car)? 9 Why should lack of agreement regarding goals and a lack of understanding of cause–effect relationships give rise to a need for creative thinking? 10 Differentiate innovation from creativity and invention. 11 Why might many firms prefer an incremental rather than a breakthrough approach to innovation? 12 What factors contribute to a lack of innovation in an industry? 13 Indicate what you think are the main drivers of successful innovation. 14 ‘Creativity is not just for problem solving. Very often the most powerful effects of creativity are seen when we challenge existing ways of doing things that are very satisfactory’ (de Bono, 2006). – ‘Thinking Managers’, available at: www.thinkingmanagers.com/ management/creativity-management.php, accessed 9 April 2013. Discuss. CASES Game Enough Game Enough recently reported a very substantial trading loss for the past twelve month’s operations. The loss amounted to some £185 million and, as a result, the company reckons it will have to make some 10 per cent of its workforce redundant. The top management in the company places the blame firmly at the feet of deteriorating worldwide economic conditions and a very uncertain outlook for the future. The company has enjoyed rapid growth over the last decade and found it easy to make money in a market where variations on a theme have been very much the name of the game. It has been a ‘me too’ attitude where anyone who can find some new narrative for an ‘old theme’ can make a quick profit. Characters and plots abounded and the same basic mechanics in constructing games and controlling game play have been employed in a seemingly endless fashion to tempt would-be gamesters into parting with their cash. Sales of the firm’s games have multiplied from small beginnings in a rapidly developing home market to multi-million pound global sales. The latest loss has come about as something of a surprise to a company that has traditionally been earning big profits, and the Chairman of the Board of Directors and Chief Executive are having discussions about what action they should instigate. The Chief Executive blames a worldwide economic recession and argues that it is simply a case of ‘weathering the storm’. A leaner organization, he argues, will be better able to come out of the recession fitter and able to take advantage of the recovery that will ultimately come about. The Chairman, on the other hand, is less convinced with this argument and feels that there are problems in the industry as a whole. He is influenced in his view by the opinions of several of the non-executive directors of the Board who have wider experience of what happens in other industries. 16 CREATIVITY IN BUSINESS Question What do you think are the main reasons behind the firm’s demise? Can it do anything about the situation? Explain. Keeping prices competitive John Holmes operates a clothes wholesale distribution business. Competition is strong and pricing is keen. Rising costs of distribution, however, are a constant problem, and all rival distributors compete strongly on price. John is looking for ways of keeping prices competitive. Question How can John try to minimize price rises in the face of strong competition and at the same time still maintain profitability? (See Appendix 2 for some suggestions.) Price and innovation Sally Major owns a hi-tech company that produces assembled and part-assembled components for a variety of industrial and consumer goods. Recently, the technical department has achieved a major breakthrough in the production process that enables the firm to reduce the cost of producing all component assemblies and subassemblies by at least 50 per cent. As a general guideline to setting prices the firm usually adopts around a 100 per cent mark-up on the costings subject to this, making the product competitive in the marketplace. Occasionally, where demand is high and there is no price consciousness, mark-up can be at least 150 per cent and still be in line with what competitors are charging for similar products. There are only a handful of products where mark-up is less than 100 per cent and none where it is less than 80 per cent. In all cases, the firm makes sure that its pricing is in line with that of competitors. The firm adopts the role of market-challenger in all market segments. Market share varies from between 25 per cent and 40 per cent of the market segment. Question What action do you think Sally should now adopt with respect to pricing? (See Appendix 2 for comments.) Paradigm shift Paradigm shift in business strategy In the new world of business, instead of long-term prediction, the emphasis is on understanding the multiple future worldviews by using techniques such as scenario planning. In this view, the organization plans for its futures, but does not rely on its plans. Paradigm shift in design and use of technology This involves the shift from the traditional emphasis on transaction processing, integrated logistics and workflows to systems that support competencies for communication building, people networks and on-the-job learning. 17 CREATIVITY IN BUSINESS Paradigm shift in the role of senior management It has been suggested that the role of senior management needs to change from command-andcontrol to sense-and-respond. The new emphasis should be on building commitment to organizational vision rather than on compliance to rules and pre-specified best practices. Senior managers need to view the organization as a human community capable of providing diverse meanings to information outputs generated by the technological systems. They also need to make the organizational information base accessible to organization members. This is important given the increasingly fast-paced and dynamic business environment that creates disconnects between the process of decision making at the top and implementation of such decisions at the grassroots. Paradigm shift in organizational knowledge processes Institutionalization of ‘best practices’ by embedding them in information technology might facilitate efficient handling of routine and predictable situations. However, greater proactive involvement of human imagination and creativity is needed to facilitate greater internal diversity to match the variety and complexity of the changing environment. Often, effective knowledge management in such an environment may need imaginative suggestions. Paradigm shift in organization design While the traditional business logic was based on a high level of structure and control, the dynamics of the new business environment demands a different model of organization design. This model is characterized by relative lack of structure and lack of external controls. Differences in perspective may have a very positive role in innovation that feeds new product and service definitions and business models. This view encourages promotion of individual autonomy in experimentation and learning. Instead of emphasizing ‘best practices’ archived in databases, it encourages continuous pursuit of better practices that are aligned with a dynamically changing business environment. Question Examine the implications of paradigm shift in the above contexts from the point of view of creative problem solving. What kinds of problem might they raise for managers in the twenty-first century? Oil crisis revisited The oil crisis of the early 1970s brought to everyone’s attention that sources of energy might not last for ever. One day the availability of oil seemed endless and cars buzzed tirelessly along the newly built motorways. The next day people were told that oil was a precious commodity that had to be conserved. Output in the principal producing countries in the Middle East was restricted to conserve supplies, a 50 mph speed restriction was imposed on the motorways and the price of oil rocketed on international markets. Businesses and private citizens felt the pinch on their pickets and inflation took on proportions that had not been seen for many years. Since that time the coming on-line of North Sea oil and the discovery of potential oil deposits in other areas has taken the sting out of the ‘need to conserve’ argument. Nevertheless, motor 18 CREATIVITY IN BUSINESS vehicle manufacturers have taken note of the need to conserve and introduced more efficient engines and are actively researching for ways of improving fuel consumption requirements even further. There is also, of course, a drive towards finding viable alternative fuel sources, such as that provided by solar power and electrical battery power. However, it seems inevitable that during the course of the next few centuries oil resources will eventually dry up. The resources are finite relative to consumption. It takes much longer for nature to create oil resources than it does for the human race to consume them. Question Imagine the time when oil eventually runs out. What will be the implications of a world without oil? What substitutes need to be found that will provide for the myriads of uses of oil – quite apart from fuel and lubrication for the petrol engine? FURTHER READING Carr, A. (2010) The most important leadership quality for CEOs? Creativity, Fast Company, 18 May, available at: www.fastcompany.com/1648943/most-important-leadership-qualityceos-creativity (accessed 11 April 2013). Fillis, I. and Rentschler, R. (2010) Enterprising Culture, 18: 49. Meisinger, S. (2007) Creativity and innovation: key drivers for success, HR Magazine: on human resource management, 52(5): 10. Smith, S. and Paquette, S. (2010) Creativity, chaos and knowledge management, Business Information Review, 27 June: 118–123. Tellis, G. J., Prabhu, J. C. and Chandy, R. K. (2009) Radical innovation across nations: the preeminence of corporate culture, Journal of Marketing, 73(1): 3–23. 19 Chapter 2 Blocks to creativity Ford Model ‘T’ car: the mindset of Henry Ford Henry Ford’s model ‘T’ remained unchanged for years while General Motors (Chevrolet) was making changes – often using new technology. Henry Ford said: ‘We’ll give the customer any colour he wants as long as it is black.’ It was a statement by a man who had been on top so long he thought nothing could dislodge him from that position. He did not perceive the effects that the changing environment would have on customers’ wants and needs, and in particular on their requirements in terms of the motor car. Increasing consumer affluence, which developed as the American economy grew in the early part of the twentieth century, meant that people had more disposable income and hence more capacity to exercise choice. General Motors recognized this, but Ford did not. In the late 1920s Ford nearly went out of business as a result of this myopic approach. General Motors (Chevrolet) took over as number one in the USA, and Ford did not catch up until the late 1980s. Ford’s ability to exercise creative thinking was impeded by at least two blocks to creativity: inappropriate perceptions and negative mindset. INTRODUCTION Creative thinking and problem solving do not necessarily come naturally to people. In the case of individuals there are blocks to creative thinking and creative problem solving. The blocks are essentially of two varieties: individual and organizational. First, we examine the need to be ready for change and the need to deal with new kinds of problem. Then we turn our attention to the various personal blocks that people may encounter when trying to solve problems, think creatively and deal with new kinds of problems. These blocks are to do with mindset and with factors to do with perception, emotion, expression and cultural influences. The chapter then continues by discussing how these blocks can be diagnosed and overcome. We then move on to blocks encountered in organizations and the conditions under which creativity may be encouraged in organizations. 20 BLOCKS TO CREATIVITY In Chapter 5 we will identify other kinds of blocks to creative thinking and in particular those that may be encountered when trying to use creative problem-solving techniques described in this book. Before that, however, in Chapters 3 and 4 we will look at some of the theoretical ideas about creativity and ideation. This will prepare us well for the subsequent material presented in Chapter 5. THE NEED TO BE READY FOR CHANGE Executives must be ready for anything that requires having the necessary tools to combat change proactively. As Morgan (1989) stated: ‘Many organisations and their managers drive toward the future while looking through the rear-view mirror. They manage in relation to events that have already occurred, rather than anticipate and confront the challenges of the future.’ If we were not at times ‘blocked’ in our thinking, we would not need creative problemsolving methods. In this chapter we will first consider the nature of problem solving within the information processing paradigm before going on to examine individual and organizational blocks to creative thinking. In addition, we will look at ways of dealing with both kinds of blocks. It is the existence of these blocks that gives rise to the need for a structured creative problem-solving process and for training to help overcome particular mindsets. MINDSET WHERE MINDSET EXISTS • • • • • • We have always done it this way. Why change? There can only be one way to do it properly. It’s experience that counts – it’s the only way to learn. I learned to do it this way and it has never let me down. Toy soldiers are for boys and dolls are for girls. Televisions are for receiving information – not for two-way communication. Mindset is a condition where an individual is over-sensitized to some part of the information available at the expense of other parts. Mindset can be useful: • • It helps us to become sensitized to some important things and serves us well – for example, red lights act as warnings and alert us to impending danger. As a result of learning from experience, mindset sensitizes us to patterns that remind us of ways that have enabled us to solve past problems. We do not have to reinvent the wheel each time we encounter the same problem. For example, if when dealing with an irate customer we have found an approach that seems to be satisfactory from the point of view of dealing with the situation, when we subsequently encounter another irate customer we can deal with the situation using our acquired knowledge. 21 BLOCKS TO CREATIVITY WHEN MINDSET BLOCKS US Luchins (1942) showed how mindset under certain circumstances can produce fixation and stereotyping in problem-solving behaviour. The phenomenon may show itself under conditions where the individual has discovered a strategy that initially functions well in solving certain tasks but later blocks the realization of new and simpler solutions to similar problems. The effect reflects a dysfunctional consequence of the normal rational way of approaching problems that may block the establishment of a new perspective and more important lines of procedure in task environments that resemble those encountered before. Cyert and March (1963) observed similar behaviour among practising managers in real-life contexts. Typical managerial search is seen as simple-minded and as over-emphasizing previous experience by selectively searching in areas close to where previous solutions have been found. Duncker (1945) investigated how past experience may block productive problem solving. He suggested the expression ‘functional fixedness’ to refer to a block against using an object in a new way that is required to solve a problem. Interesting real-life examples of functional fixedness are provided by Weizenbaum (1984). According to the latter, the steam engine had been in use for a hundred years to pump water out of mines before Trevithick had the idea of using it as a source of locomotive power – it had only been seen as a tool to help pump water out of mines. The computer had been used for a long time as a calculator before its use as a general symbol manipulator was envisaged. It would seem that, while mindset can provide us with substantial benefits, unfortunately there are times when it can stand in the way of progress. Mindset can create difficulties for executives when they are facing new problems. When stuck on a problem, executives tend to follow their mindset, and this may be counter-productive as far as previously unencountered problems are concerned. Mindset is often characterized by one-right-answer thinking, always looking for reasons why something will not work and an over-regard for logical thinking. Executives may have learned from past experience that a particular way of dealing with a problem usually leads to a satisfactory solution. Constant successful application of the approach reinforces the belief that this is the correct way to approach the problem, and even the only way to approach the problem. When a new problem arrives that defies solution by the learned approach executives becomes stuck and do not know what to do. Negative or ‘yes, but’ thinking arises out of executives’ zeal to cater for contingencies. It is only natural that they should try to ensure that any project will stand a good chance of being successful, and good management practice advocates that executives should consider what may go wrong and make contingency plans. Every suggestion is therefore questioned and critiqued in order to make sure that the risk of failure is minimized. However, the process of criticism itself can stifle creativity by inducing a negative mindset. Constructive criticism is required. Rather than make the comment ‘yes, but’ one should use the phrase ‘yes, and’. For example, faced with the suggestion of making redundancies, the normal response might be: ‘Yes, but that will only lead to unrest on the shop-floor and possible strike action.’ The better response would be: ‘Yes, and wouldn’t it be useful, since we can then find other jobs for those people within the company.’ An over-regard for logical thinking can also create a barrier to creative thinking. Sometimes we have to take steps into the dark, as it were, based upon hunch or intuition. We may have 22 BLOCKS TO CREATIVITY a feeling that what we are doing is the best course of action even though we cannot justify it in a traditionally logical way to ourselves. Perhaps the logical justification only becomes apparent post facto – we can see with hindsight that what we did was the right thing to do. Somehow we cannot perceive beforehand the logical justification – we have a perceptual block. The notion of perceptual blocks is discussed later in the chapter. OTHER BARRIERS TO AN INDIVIDUAL’S CREATIVITY Many researchers have attempted to address the phenomenon of barriers to creativity. These include Arnold (1962), Adams (1974), Jones (1987) and Majaro (1992). All have produced detailed lists of the various kinds of barriers to creative problem solving. Some barriers limit individuals’ creative output and are related to the people themselves. On the other hand, there are those that emanate from the environment in which people operate. Personal barriers may be subdivided into physiological barriers, such as the perceptual limitations of the senses or the brain’s data-handling capacity, and psychological barriers related to the person’s behaviour or attitudes. Arnold (1962) suggested: 1 2 3 Perceptual blocks, which prevent a person receiving a true, relevant picture of the outside world. Cultural blocks, which result from influences of society. Emotional blocks, such as fear, anxiety and jealousy. Adams added a fourth category: intellectual and expressive blocks. Evidence also supports the view that creative thinking activities are affected by mood (e.g. Kaufmann and Vosburg, 1997). A positive mood facilitates creative problem solving (e.g. Forgas, 2000; Schwarz, 2000; Shapiro et al., 2000) and recent theorists relate the state of happiness to creativity. Argyle (2001), Gasper (2004) and Myers (2002) have all argued that happy people feel relaxed and can generate many new ideas. Gasper (2004) also found that people in sad moods were more likely to use restraint when generating ideas, unless given specific instructions to compensate for the restraint. Indeed, mood, thinking and even personality may all be interrelated (Russ, 1999). DEALING WITH AN INDIVIDUAL’S BLOCKS TO CREATIVITY Jones (1987) initiated a study designed to find out more about the factors that inhibit creativity. In reviewing the literature on the subject he found that several authors included perceptual, cultural and emotional blocks within their taxonomies while others mentioned such factors as errors in thinking and personal fears. He identified four typologies of blocks. These were derived from cluster analysis of self-reported items. The typologies are: 1 Strategic blocks: ‘one-right-answer approaches’, inflexibility in thinking. These affect the approach taken to solve problems. They include the tendency to rely heavily on past experience or particular techniques without challenging their appropriateness; focusing 23 BLOCKS TO CREATIVITY 2 3 4 on a narrow range of options for either problem definition or problem solving; and adapting an over-serious approach to problems which prevents the emergence of a playful, imaginative and humorous climate. Value blocks: ‘over-generalized rigidity influenced by personal values’. These occur when personal beliefs and values restrict the range of ideas contemplated. Values co-exist, and failure to reconcile them contributes to difficult personal and organizational dilemmas. Perceptual blocks: ‘over-narrow focus of attention and interest’. These arise from a lack of sensory awareness at a physical level and therefore contribute to lack of awareness of implications of situations. Self-image blocks: poor effectiveness through fear of failure, timidity in expressing ideas, etc. These reduce effectiveness in advancing ideas assertively. They arise from a lack of self-confidence in the value of one’s own ideas. Individuals may be reluctant to seek help and talk about personal feelings. This barrier seems to be the greatest impediment to the successful implementation of new ideas. Blocks to Creativity • Strategic • Values • Perceptual • Self-image Figure 2.1 Jones’s blocks to creativity Jones’s approach has resulted in training applications that centre on personal feedback and counselling, including suggestions for the most appropriate mechanisms for developing improved skills. Strategic blocks can be challenged through creative problem-solving training. Values, however, are a more difficult problem, but creating an awareness of personal values in the individual offers some respite. Perceptual blocks can be freed through observation, and selfimage blocks can profit from assertiveness training. Creativity is a fragile business. It is stimulated by the right environment, self-image and co-workers; it is inhibited by limiting beliefs, work situations and stresses. Awareness of the obstacles to creativity can help us push through our creative blocks. Perceptual block Look at the statement in Figure 2.2. How many times does the letter ‘f ’ occur? See Appendix 2 for the answer. 24 BLOCKS TO CREATIVITY Perceptual block Following the sinking of the old frigate Ferdinand, Nelson fought his way carefully around the cape in foul weather in the hope of meeting his foe again off the far side of the island. By the close of the day he found his adversary adrift and floating perilously close to the infamous granite rocks. Figure 2.2 Perceptual block DIAGNOSING WHETHER SOMEONE IS BLOCKED IN THEIR THINKING Strategic blocks An inability to come up with insights, or coming up with ideas that cannot be implemented, is a sign of blocked thinking. Often individuals may be aware of such blocks themselves, but this may not always be the case. A negative mindset may also be a tell-tale sign that someone has a blockage. In particular, the use of ‘yes, but’ responses and ‘only-one-right-answer thinking’. Value blocks One is looking for cues in terms of what people say. If there is a tendency for someone to argue that they have always done something in one particular way and that has always worked, it suggests that they are not open to new ideas and that their own particular values dominate the way in which they tackle problems. Perceptual blocks Diagnosing perceptual blocks may be achieved by having several people who are familiar with a problem take a view on it. There should be some consensus of views such that the views of the individuals who have perceptual blocks should stand out. Self-confidence block This may be difficult to ascertain unless the individuals concerned confess to having it. It may be apparent from their reluctance to make decisions with respect to the problem in hand. Alternatively, people who demonstrate an aversion to low risk-taking with respect to solving a problem may well have a self-confidence block. We can see creativity at work every day in the media – for example, in cartoons and comedy-type entertainment shows on the radio and television. Script writers for television and radio need to think creatively just to do their jobs. John Cleese is both an actor and a writer, and has useful thoughts on the subject that may help to deal with the problem of blocks to 25 BLOCKS TO CREATIVITY MYOPIA IN THE WATCH INDUSTRY The Elgin watch company has often been quoted as a classic example of a firm that exhibited acute symptoms of marketing myopia on its way to eventually going out of business. The company refused to adapt to the changing demands of the marketplace and failed to take account of the dwindling number of customers for its long-established product: the classic high-quality pocket watch with an anticipated long life-span. Yet the case of Elgin was only one example of myopia in this industry. English watchmakers dominated watchmaking in the eighteenth and nineteenth centuries. The English verge escapement dominated world markets for many decades. Even when technological breakthroughs were sought, it was the English watchmakers who led the way. Massey’s work at the beginning of the nineteenth century led to the eventual use of the lever movement in watches, which finally ousted the time-honoured verge. It also proved a better movement than the cylinder movements used on the Continent. However, the English watchmakers did not move with the times, and their demise at the end of the nineteenth century was largely due to their lack of competitiveness with Swiss and American-produced watches, which met the needs of consumers better. It may seem rather obvious to us today that in order to survive in the marketplace a company should adapt its strategy to meet the changing wants and needs of its customers. However, the watch industry possesses a number of quirks, and it doesn’t necessarily always respond in the way one would expect. Nor does the unexpected always result in total failure. The Swiss watch industry dominated world markets with its fine clockwork movements, elegant designs and ‘quality’ image for most of the twentieth century. Quality, elegance and accuracy are key features that people look for in a watch, and some people are prepared to pay very high prices in order to obtain what they want. Up until 1970 watches were powered by clockwork movements, and precision engineering dominated an industry where a key dimension of ‘quality’ reflected accuracy in time-keeping. An ‘Officially Certified Chronometer’ certificate handed out by the Swiss authorities was a sure sign that a particular watch met with specific time-keeping standards.Watches carrying such certificates were eagerly sought after and could command high prices. Apart from accuracy, features such as self-winding movements, elegance in design, gold metal casing and sometimes jewel-adorned dials added to the desirability of a watch. Firms such as Rolex, Patek Philippe, Jaeger, Breguet and Blancpain were worldrenowned for their ability to produce desirable watches of such a quality that only the better-off people could afford to own them. A major breakthrough in technology, however, enabled the Swiss industry to invent the quartz movement that made it possible for accurate watches to be mass produced by anyone. The Swiss industry did not use the invention, for fear that it would kill its existing market. However, watchmakers in the Far East grasped the quartz movement, and in a single year the sales of Swiss watches dropped by 25 per cent. This is a case where mindset coupled with paradigm shift spelled disaster for a whole industry. 26 BLOCKS TO CREATIVITY creative thinking. Popova (2012) states what he has to say on the subject, specifically noting his ‘5 factors that you can arrange to make your lives more creative’: Space: ‘You can’t become playful, and therefore cre...
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