creativity in business context

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CREATIVITY IN BUSINESSCREATIVITY IN BUSINESSCONTEXTCONTEXT

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Ta3le o4 Contents

Executive Summary...............................................................................................2

1. Introduction....................................................................................................... 3

2. Creativity Models............................................................................................... 3

3. Barriers to Creativity..........................................................................................4

4. The Os orn!"arnes Creative "ro lem Solvin# "rocess.......................................$

4.1 O %ective &indin#.......................................................................................... $

4.2 &act &indin#.................................................................................................. '

4.2.1 Stren#ths................................................................................................(

4.2.2 )ea*nesses............................................................................................(

4.2.3 O++ortunities..........................................................................................(4.2.4 Threats................................................................................................... ,

4.3 "ro lem &indin#............................................................................................ ,

4.4 Idea &indin#.................................................................................................. -

4.$ Solution &indin#..........................................................................................1

4.$.1 /e0orm Boein# Or#anisational Structure +eo+le s +ers+ective ..... .... .11

4.$.2 Chan#e Mana#ement +rocess +ers+ective ........................................11

4.$.3 Mana#ement Control System...............................................................11

4.' cce+tance &indin#.....................................................................................13

$. 5o6 to assess creativity..................................................................................13

'. Conclusion....................................................................................................... 14

/e0erences...........................................................................................................1$

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E5e!$ti6e S$mmar2

The creative solving problem process is inherent for any company to avoid existing and

probable issues and challenges. In this paper, the issues and problems of Boeing Company

are realised and addressed by applying Osborn-Parnes Creative Problem olving !CP "

model. The findings of the paper suggest that delay is the #ey problem that Boeing is

currently facing due to lac# of control over supply chain management system. In this regard,

the idea of reforming current upply Chain Information ystem ! CI " $ith an integration of

technology, people, and processes is generated and evaluated on the basis of a set of criteria.

It is believed that Boeing can ta#e advantage of CP models in order to achieve its strategic

ob%ectives by eliminating delay issue in developing ne$ products.

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*0 Intro&$!tion

This paper revie$s the problems, issues, and challenges of the Boeing Company $ith the

help of Osborn-Parnes Creative Problem olving !CP " model $hich is founded on the

principles of former creativity models. The Boeing Company $as established in &'&( and

today it is #no$n as $orld)s giant company in manufacturing military and commercial

aircrafts. The company is operating in more than '* countries at this time and has over

+*,*** suppliers around the $orld. rom the last decade, the Boeing is facing constant delays

in delivering its ne$ commercial aircraft namely Boeing /reamliner.

The structure of the paper is straightfor$ard. 0fter the introduction, the next section briefly

outlines the features of some popular creativity models and then the barriers to creativity inany organisation are discussed briefly. The #ey section of this paper is the application of

Osborn-Parnes CP process on Boeing)s case study to investigate #ey issues and challenges

that Boeing is currently facing. Before concluding the paper, a short but comprehensive

section illustrates ho$ creativity can be assessed in any organisation.

70 Creati6it2 #o&els

1raham 2allas developed first model for the creative process in &'+( $hich proposes thatanalytical and creative thin#ing are closely associated $ith each other !Clo$ et al. +*&&". The

process consists of four significant stages such as preparation, incubation, illumination, and

verification. 0fter that many other researchers built their models follo$ing the approach of

2allas but in &'34 0lex Osborne)s developed a seven step frame$or# for creative thin#ing

$hich is considered as one of the useful models today. The seven stages of Osborne)s model

are5 orientation, preparation, analysis, ideation, incubation, synthesis, and evaluation. The

process in the model is mainly based on alternative ideas of development $ith divergentthin#ing in terms of solving a particular problem. This innovative concept opened a door for

the development of brainstorming techni6ue $hich is $idely used these days.

0nother $ell-#no$n model for creative thin#ing in order to solve problems is Creative

Problem olving !CP " model $hich is derived from the $or# of Osborn. CP profoundly

follo$s the idea of divergent-convergent-divergent-convergent procedure !Isa#sen and

Treffliger, &' 37 Parnes, &''+". The CP model comprises of six stages such as ob%ective

finding, fact finding, problem finding, idea finding, solution finding, and acceptance finding.

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CP provides an organised frame$or# for solving the problem $ith particular creative

thin#ing techni6ues that assist an organisation to meet issues, challenges, and opportunities

that organisation is currently facing or expecting in the future !Isa#sen et al. &''8". It is

believed that most of the creativity models developed till no$ have common foundations

follo$ing the approaches of 2allas and Osborn !9aufman and ternberg, +*&*".

-0 Barriers to Creati6it2

There are several barriers to creativity $hich are broadly categorised into three overlapping

groups such as personal !people-related", problem solving !process-related", and

environmental !situation-based" ! ternberg, &'''7 9aufman and ternberg, +*&*". The people

related barriers are the hurdles to creativity due to several bloc#s including deficiency increative thought, educational and cultural influence, extreme or unnecessary eagerness,

saturation, lac# of emotional sensation, habitual thin#ing, hunger for popularity, a propensity

to conform, and lac# of self-confidence etc. ! ternberg, &'''". On the other hand, problem

solving barriers may comprise of lac# of problem solving s#ills and abilities, inability to

develop or identify alternative solutions, lac# of focus on problem solving tas#s, inade6uate

language abilities, inade6uate problem solving approaches, rigidity, numerous perceptual

prototypes, non-disciplined endeavour, premature planning and %udgement, and deficiency in

turning ideas into action !9aufman and ternberg, +*&*".

:nvironmental barriers represent conditional or situational based hurdles to creativity $hich

usually include5 confrontation of ne$ ideas, overemphasis on rivalry or cooperation, strategic

bloc#s restricting proper resource utilisation, despotic decision ma#ing, an inade6uate

approach to$ards creative thin#ing, isolation, and the conviction that merely one or t$o

#inds of thin#ing is needed for creativity !ibid".

One of the $ays to mitigate the impact of these barriers is to enhance the abilities and

strengths of any organisation. 0nother $ay is to apply one of the CP models to identify and

address the core problems, issues, or challenges that the organisation is currently facing. This

is the reason that Osborn-Parnes CP model is adopted in this paper to investigate the issues

and challenges that Boeing is currently facing.

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highlighting the areas $here the company lac#s in addressing its strategic ob%ectives.

Therefore, the gap analysis model, developed by ?eithaml et al . !+**'", is used to conduct

gaps analysis of Boeing in this section to identify inconsistencies bet$een ho$ company)s is

expected to perform and ho$ it is actually performing. The gaps analysis model emphasises

to close customer gap $hich is the difference bet$een customer expectations and perceptions.

In order to close or tighten customer gap, the models suggest to identify and close four other

gaps so-called provider gaps. These gaps are management perception gap, 6uality

specification gap, service 6uality gap, and communication gap.

The management perception gap and 6uality specification gaps are not evident in Boeing due

to adoption of latest tools and techni6ue but 2augh and 2atson !+*&&" highlighted service

6uality gap in Boeing $hich has been resulted in failure to meet deadlines several times in the past. This has caused concurrent delays in the delivery of aircrafts to customers and also

increased costs in millions of dollars. The communication gap also exists bet$een Boeing

and its suppliers !@c1laun, +** " $hich also caused delays in delivering the products to

regular clients. In addition, some intellectual property disputes, labour stri#es, and even legal

proceedings against Boeing are also evident due to lac# of communication $ith customers,

employees, and suppliers !/atamonitor, +**'7 +*&&".

The most common problem occurred due to gaps bet$een the ob%ectives and current

performance of Boeing is the Adelay) problem. 0s a result, 0irbus !a close competitor of

Boeing in commercial aircrafts" successfully ac6uired an extensive mar#et share of Boeing

!@ayer, +** ". In addition, the profit of Boeing)s commercial airplanes segment also faced a

(.3 declined in +*&* !/atamonitor, +*&&".

)07 Fa!t Fin&ing

0ccording to Proctor !+**'", 2OT analysis is an appropriate tool for finding facts about

any company. In this section, 2OT analysis is conducted to highlight strengths,

$ea#nesses, opportunities, and threats of Boeing to #no$ significant facts about the

company. The 2OT analysis $ill help in identifying the areas $here creative changes are

re6uired.

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opportunities for the Boeing Company to ac6uire recession affected firms $ithin the

aerospace sector in order to expand its operations in logistic and supply chain contexts.

4.2.4 Threats

0irbus and emerging Chinese aircraft manufacturing firms are the prominent threats

for Boeing. 0irbus has already ac6uired a considerable amount of mar#et share of Boeing due

to concurrent delays in Boeing /reamliner. On the other hand, the Chinese government

also officially announced the launch of commercial aircrafts in +*+* !Hiu, +*&*". In addition,

labour stri#es and lac# of support of labour unions are also a threat to the organisation

!/atamonitor, +*&&". Boeing)s 43 suppliers belong to apan $hich is the globally #no$n as

a land of earth6ua#es. The future manufacturing operations may face delays due to shortage

of parts supply from apan as it happened recently $hen the manufacturing of Boeing

affected due to great :ast earth6ua#e in apan !/atamonitor, +*&&".

)0- ro3lem Fin&ing

The problem finding step of the CP model mainly deals $ith pinpointing the real problem.

Therefore, in this section the problem statement for Boeing Company is $ritten as In 2hat

2ays @ight Boeing captures the real problem !Parnes, &''+7 Proctor, +**'" by ans$ering the

6uestions of 32s and ho$. Fecently, the Boeing Company developed commercial airplane

ABoeing /reamliner) to retain its leadership position in the aircraft industry. Initially, the

product gets a considerable response of the mar#et and several airlines around the $orld

placed orders to Boeing. But unfortunately, the company experienced concurrent delays in

delivering the aircraft to clients !9esmodel, +*&&". The company revised the delivery

schedule eight times since +** and recently it is announced that Boeing)s /reamliner

delivery $ill be detailed by three more years as the company is facing engine problems due to

parts supplied by its suppliers !Bla#e, +*&4". The delay problem causes countless problems

for Boeing. ince +** the original budget for developing /reamliner has been

intensified up to &+* !Figby, +*&4".

It is evident from various sources that Boeing is experiencing most of the delay problems due

to inade6uate supply chain management !Hamba and :lahi, +*&+7 Figby, +*&4". 9oemodel

!+*&&" also highlights the fact that Boeing has no ade6uate control over its manufacturing

activities due to lac# of supply chain management. This problem publici ed $hen one of thespo#espersons from Boeing reported = the company made too many changes at the same time

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- new technology, new design tools and a change in the supply chain - and thus outran the

ability to manage it effectively for a period of time” !0ir$ise, +*&&". On the basis of the

above facts, it can be said that Adelay) is the #ey problem that Boeing is facing at this time

mainly due to supply chain management problems. The figure &.& sho$s the cause and effect

diagram of Boeing based on 2OT analysis and the problems identified in this section.

Figure 1.1 J Cause and effect diagram

)0) I&ea Fin&ing

The idea finding section of the CP process includes the main idea to solve the particular

problem identified in the previous section. In order to adopt ne$ technology for Boeing

/reamliner, the company deals $ith local and international supplier firms $ho are popular in

producing latest technological e6uipment all over the $orld. But at the same time it is also

inherent to regularly communicate $ith suppliers to avoid delays. Bayer !+*&*" emphasises

the importance of communication by stating that large organisations often experience delay

issues due to lac# of communication $ith suppliers and other sta#eholders. The Boeing)s case

is also not different in this regard. In fact, in the beginning of +*&* the company employed

third party services to reform its supply chain system but the attempt $as also failed due to

lac# communication bet$een Boeing, third party, and suppliers !Hamba and :lahi, +*&+".

To confront existing supply chain issues, the company is re6uired to follo$ the idea of

reforming its present upply Chain Information ystem ! CI ". 0ccording to 1upta !+*&&",

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CI is an = information system that automates the flow of information between a firm and its

suppliers to optimise the planning, sourcing, manufacturing, and delivery of the products and

services > !p. 8*&". The solid CI implementation re6uires an incorporated approach of

technology, people, and processes !ibid".

People)s s#ills and abilities are inherent in terms of reforming the company)s structure to deal

$ith complex processes and also to better utilise modern technological e6uipments. imilarly,

Boeing should avoid employing outdated technologies that may result in slo$do$n the entire

production and communication process. Do$adays, several CI computer based application

programmes are available in the mar#et $here :nterprise Fesource Planning !:FP" is

popular in integrating people, technology, and processes. :FP is also popular to reduce

supplier relationship management issues. 0lthough, Boeing is already implementing :FPtechnology !Info 2orld, &'' " but there is a strong need at this time to best utilise it by

considering the present supply chain concerns. The follo$ing table illustrates the idea for

improving CI of Boeing.

Table 1.1 J Idea and rationale

Idea Rationale

Feforming upply Chain Informationystem ! CI " by bringing creative

changes in technology, people, and processes

o To establish an efficient andsuccessful control system in orderto reorganise and administersupplier communication

o To address service 6uality andcommunication gaps bet$eenBoeing ob%ectives and current

performance

o To avoid concurrent delays that

Boeing is current experiencing dueto supply chain management issues

)0 Sol$tion Fin&ing

In this step of CP process, various solutions of the problems are evaluated on the basis of

cost, time, performance, environmental, influence constraints. On the basis of the above idea,

there can be three possible solutions for improving supply chain information system of

Boeing5 !&" reforming organisational structure, !+" change management, !4" control system.

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These are explained in the follo$ing subheadings and then these options $ill be evaluated

through a decisionKevaluation matrix.

4.5.1 Reform Boeing Organisational Structure (people s

perspecti!e"

The role of people is inherent in any organisation ! enior, +**'" and reforming

organisational structure needs to decide $hich strategy Boeing can adopt. The people can

accommodate t$o types of strategies !business and functional" to change the organisational

structure by performing re6uired activities. 0t the business level, necessary decisions can be

ta#en by authorised staffs to improve existing supply chain management system. or

example, customising and upgrading :FP pac#ages to meet primary and secondary needs, or

obtaining more licences to effectively implement CI . On the other hand, the staff $ill

ensure the functionality of amended CI at functional level.

4.5.2 #hange $anagement (process perspecti!e"

Table &.+ illustrates four $ays through $hich change can be accommodated in Boeing.

Table 1.2 – Types of organisational change

Source: Senior ( !!", p. #$%

rom the above available options, the Boeing needs to select Aadaption) strategy to apply

CI effectively. The adaption change is appropriate because it can be implemented $ithin

the present paradigm and occurs incrementally.

4.5.3 $anagement #ontrol S%stem

0 management control system refers to a method of managing and reorganising the

operations, activities, and behaviours of the people in any organisation !0nthony, +*&&". In

case of Boeing, the management control system for reforming supply chain information

system mainly re6uires to manage and reorganise people, processes, and technology. The

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table &.4 sho$s a management control system for Boeing demonstrating essential resources

allocation and activities.

Table 1.3 – @anagement Control ystem

Elements Essential activities and resource allocation

P:OPH: G

PFOC: :

o :ncourage effective internal and external communicationo Continuous FG/ activitieso Ongoing research and feedbac# o taff training and developmento /esign ne$ processes using service blueprints

T:C;DOHO1L

o Implementation of ne$ technology i.e. Epgraded :FP systemo Comply existing system $ith ne$ :FP system before implementing

ne$ technologyo Continuous feedbac#, support, and upgrading systems

Source: &nthony ( !''%

The decision matrix is used to evaluate above stated solutions to the delay problem by

managing supply chain information system of Boeing. The options are evaluated on the basis

of cost, performance, environment, health and safety, acceptance, and ease of implementation

constraints.

Table 1.4 J /ecision @atrix

CRITERIAEVA !ATI"#

$eig%t &anagementControl '(stem

C%ange&anagement

Re)orm "rg.'tructure

Impact on performance 4 4x3 M &3 4x& M 4 4x4 M '

:asy to implement & &x4 M 4 &x& M & &x4 M 4CostKbenefit association + +x3 M &* +x4 M ( +x4 M (

Nuic# implementation & &x4 M 4 &x& M & &x3 M 3ta#eholder acceptance & &x3 M 3 &x4 M 4 &x4 M 4

:nvironmental influence + +x4 M ( +x4 M ( +x3 M &*;ealth and safety impact + +x3 M &* +x& M + +x4 M (

*ross Rating +2 22 42

coring5 ;igh M 3, @edium M 4, Ho$ M & Source: ushman and )ai ( !!#, p. '#%

The above table sho$s that management control system option is most appropriate for

Boeing Company to avoid delays by improving the supply chain information system.

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)09 A!!eptan!e Fin&ing

The action plan for implementing creative change in CI is sho$n in 1antt chart as follo$s5

Table 1.+ J 1antt chart

0 Ho: to assess !reati6it2

0ccording to von tamm !+** ", creativity in any organisation can be assessed through a

Balanced corecard approach. The balance scorecard of Boeing is presented in table &.8

$hich assesses creativity in four significant aspects such as financial, customer, internal

business process, and supplier.

Table 1., – Balanced corecard

Financial As-ect Customer As-ect"b ective &easuring device "b ective &easuring device

inancial performanceimprovement

o inancial accounts andstatements

o Profitability andli6uidity ratios

Customer serviceo eedbac# from

customer

alue forshareholder)s$ealth

o hare priceo /ividend payout ratio Timely delivery

o Epfront product orderso Customer satisfaction

level

Internal /usiness 0rocess 'u--lier s Vie"b ective o to measure "b ective o to measure

Improvement inoperating

o 9ai en approach Improving CI o :FP implementation

upplier)soriented

o upplier)s relationshipo Communication and

controlling suppliers

Hong-termsupplierrelationships

o Implementing CIusing integratedapproach of technology,

process, and people

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90 Con!l$sion

It is investigated $ith the help of Osborn-Parnes CP model that Boeing is currently facing

critical delay problem in delivering Boeing /reamliner to its customers due to supply

chain issues. It is therefore suggested to Boeing to bring creative changes in the upply Chain

Information ystem ! CI " by improving current :nterprise Fesource Planning !:FP"

system. or this purpose, Boeing can use management control system device as an integrated

approach of people, processes, and technology to bring creative changes. urthermore, the

level and progress of creativity can be measured and assessed through a Balanced corecard

approach.

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creativity in business context

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