Case study «An attractive remuneration package»

ISSUE

As the state pays less and less in old age pension, it is becoming increasingly important for those who want to enjoy their ‘golden years’ to have their own private pension arrangements. In order to satisfy the growing need for private pension arrangements, you and your colleagues have recently set up your own company to offer a range of financial services and products. Your target market is small- and medium-sized companies, in which the directors have not made sufficient arrangements for their own pensions.

The services that you will offer are:

1. pension audit (to identify the pension required)

2. pension advice (to look at present pension provision and identify possible alternative providers)

3. pension products (to sell pension schemes).

As you and your colleagues spend a great deal of your time out of the office with clients, you need an assistant to manage the office in your absence. You envisage that this will be a key position (more than simply an administrative job), as the person recruited will have a lot of customer contact, often giving advice and even selling products. You need to agree on a remuneration package that will attract the right person.

AGENDA

1. Presentation of the problem

2. Discussion of alternatives

3. Decision on next step

4. Action plan

Notes to the agenda

1. The problem

Clarify exactly what the problem is.

2. Possible solutions

Brainstorm alternative courses of action and make a decision on the most appropriate one.

2. Policy decision

Decide on an appropriate policy for the company.

2. Action plan

Decide on a course of action to implement the decisions.

Brainstorming

Think over the task and sound your decision, providing with effective arguments.

Your staff are becoming disgruntled at being asked to put in extra time more and more often, as times are tough. The Board has come up with a new initiative aimed at putting the company back on top but it’s going to mean asking your team to work late even more often in the coming months. Do you:-

1. Organize a tree-hugging weekend and tell them what’s coming once everyone has bonded?

2. Devise an incentive scheme whereby the most successful 3 staff will get an all-expenses paid weekend in Paris?

3. Get them into your office and tell them they’re going to have to redouble their efforts?

INDIVIDUAL PROJECT / 3-Minute Pitch:

Recent Successful Company Employee Reward Systems (1 by choice)

Unit 4 theory: «creative thinking and creative management»

«Creative thinking is not a talent, it is a skill that can be learnt»

Edward de Bono

Creative thinking is the process which we use to come up with new ideas and it can be both accidental and deliberate occurrence. It can be used to solve problems, design ways forward, resolve conflicts, simplify procedures, make products and processes work much better, cut costs, improve motivation, adapt strategies and design new products and services.

Creative thinking techniques include: brainstorming, whereby two or more people’s ideas are brought together to create a new idea; lateral thinking, where participants are encouraged to take the opposite perspective; parallel thinking, where participants are encouraged to think about a topic from different perspectives (symbolized by Edward de Bono’s famous ‘six hats’*); random words, where participants are given a random word as an initial stimulus and encouraged to link it to the problem at hand; escapism, where participants propose the most ludicrous and ridiculous solutions to problems; role play.

Creative management is a response to the idea that large corporations prefer to run things as they stand and solve problems as they arise. Edward de Bono suggests that traditional creative thinking techniques such as brainstorming are not focused enough, arguing that if a person is inhibited they cannot be creative. He argues that creativity is becoming a commodity that can be learnt and used when needed, and that techniques like lateral and parallel thinking are much more constructive than putting people in a room and asking them to put forward opinions and defend them. This is because with these techniques every person in the room is using their thinking, knowledge and experience to the maximum rather than focusing on fighting their corner.

For Edward de Bono, the culture of creativity needs to be set by senior management, otherwise it can be seen as a risk rather than something to be expected.

Six Thinking Hats is a book by Edward de Bono. The term Six Thinking Hats is used to describe the tool for group discussion and individual thinking. "Six Thinking Hats" and the associated idea parallel thinking provide a means for groups to plan thinking processes in a detailed and cohesive way, and in doing so to think together more effectively.

The White Hat calls for information known or needed. "The facts, just the facts."

The Yellow Hat symbolizes brightness and optimism. Under this hat you explore the positives and probe for value and benefit.

The Black Hat is judgment - the devil's advocate or why something may not work. Spot the difficulties and dangers; where things might go wrong. Probably the most powerful and useful of the Hats, but a problem if overused.

The Red Hat signifies feelings, hunches and intuition. When using this hat you can express emotions and feelings and share fears, likes, dislikes, loves, and hates.

The Green Hat focuses on creativity, the possibilities, alternatives, and new ideas. It's an opportunity to express new concepts and new perceptions.

The Blue Hat is used to manage the thinking process. It's the control mechanism that ensures the Six Thinking Hats guidelines are observed.

FOLLOW-ON QUESTIONS…

1. Define creative thinking process techniques of creative management

2. What does the term ‘Six Thinking Hats’ by Edward de Bono stand for?

3. What are the distinguishing features between creative people, creative processes, creative places and creative products?

4. What are the main 3 stages of creative problem-solving?

5. What are some of the advantages and disadvantages of the given energy sources – nuclear, gas, solar, coal, wind, wave and oil?