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Charles H. Kepner - The New Rational Manager: An Updated Edition for a New World

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Charles H. Kepner The New Rational Manager: An Updated Edition for a New World

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One of the best-selling business books of all time, The New Rational Manager, describes Kepner-Tregoe critical thinking processes for effective leadership and issue-resolution management that have been pressure tested across the world for over 50 years.

Whether youre troubleshooting a major IT system outage, solving a manufacturing equipment problem, deciding to expand the capacity of a distribution center or considering hiring a new employee, Rational Process will allow you to cut through the clutter of business complexity and address the most serious challenges confronting your organization. This common language and process are essential for effective, efficient collaboration across teams, functions, and geographies.

Are you looking for an edge to advance your career? The same principles found in The New Rational Manager that were leveraged by NASA to return Apollo XIII safely to earth have also been used by C-Suite executives, managers, and engineers to increase quality, improve efficiency, and lower costs in almost all industries and business functions. The New Rational Manager has the business cases to prove it and the steps for you to make it happen.

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Copyright 1981, 1997, 2006, 2013 by Kepner-Tregoe, Inc.

All rights reserved.

Printed in the United States of America.

No part of this publication may be reproduced in any form or by any means without the written permission of Kepner-Tregoe, Inc.

For information address Kepner-Tregoe, Inc. Princeton Forrestal Village 116 Village Blvd., Suite 300

Princeton, NJ 08540

Library of Congress Catalog Card Number: 97-65859 Benjamin B. Tregoe and Charles H. Kepner

The New Rational Manager: An Updated Edition for a New World Updated Edition

Princeton, New Jersey

Kepner-Tregoe, Inc., Princeton, New Jersey

Jacket design: Fairbrother and Company Book design: CAT Design

978-0-9715627-1-4


ACKNOWLEDGMENT

A great many people have contributed to the writing of this book, far too many to name. Thousands of individuals have used the procedures and concepts of Rational Management on the job, against real concerns and problems, and have then told us of their experiences. More than a thousand client organizations around the world have shared information with us, often of a highly proprietary nature, in an effort to learn more about Rational Process. Several thousand program leaders have also shared their insights with us. Our own colleagues and associates have been particularly helpful. We could not have written this book without them, for it largely reports the experiences of others in using and promoting these ideas. We wish to thank all of these people for the contributions they have made. They are the true authors of this book.

CASE HISTORIES
RATIONALInstalling Rational Process
PROCESS
PROBLEMThe Leaking Soybean Oil Filter
ANALYSISShrinking Bank Accounts
Rejected Circuits
Trouble Aboard Apollo XIII
Plugged Spray Nozzles
Spoiled Cattle Feed
The On-Time Misunderstanding
The $27 Solution
Poor Sales of the Model A
Failing Pumps
The Imminent Strike
The NASA Contract Dispute
DECISIONHiring a New R&D Director
ANALYSISPurchasing the Best Personnel Information System
Removing Orebody Pillars
Assessing the Water Quality Proposal
To Centralize or Stay Decentralized
The Ideal Distribution System
In Search of a Stable Cane Supply
Marketing Scrap Fibre
Objectives for New Hires
The Routine Selection
The Million-Dollar Alternative
An Obvious Question Not Asked
The Expensive Question Not Asked
Aboard the Chartered Boat
POTENTIALThe High Cost of Complacency
PROBLEMPlanning an Inauguration
ANALYSISClosing Sayers Point Mill
The Likely Emergency
A Crisis Averted
Opening the Quick-Service Aircraft Facility
Searching for Alaskan Oil
SITUATIONSues Reports Are Late Again
APPRAISALCrushed Cartons
A Difference of Opinion
The Madge Problem
Replacing Obsolete Equipment
MANAGINGBob is Not Motivated
HUMANInput Errors
PERFORMANCEOur Boy Genius
PROBLEMSNobody Can Stand Carl
Picking the New Controller
FOREWORD

Management books, at least the really great ones, are not written in the library or an easy chair. Those rare business books that have withstood the test of time evolve directly from real-world experience and the day-in and day-out struggle of executives, managers, and workers on the front line.

Surely, this explains in part the enduring appeal of The New Rational Manager and its several sequels. The original book, published in 1965, described the problem-solving and decision- making approaches developed in the late 1950s by Benjamin B. Tregoe and Charles H. Kepner, two social scientists conducting research on breakdowns in decision making at the Strategic Air Command. They discovered that successful decision making by Air Force officers had less to do with rank or career path than the logical thinking process an officer used to gather, organize, and analyze information before taking action.

Later, Ben Tregoe and Chuck Kepner studied up-close the thinking habits of managers. Some were proficient, others were less so. The distinctions between both sets of managers yielded rich insights into the fundamentals of effective problem solving and decision making.

Ben Tregoe and Chuck Kepner codified their findings into a set of processesrational processeswhich were further tested and refined, added to over the years, until we have the Problem Analysis, Decision Analysis, Potential Problem (Opportunity) Analysis, and Situation Appraisal processes presented here.

Since the original discovery and the founding of Kepner- Tregoe in 1958, Rational Process has been used in hundreds of organizations, large, mid-sized, and small; by top executives, middle managers, and hourly workers; in profit and non-profit organizations and government agencies; across industries and functions; and, globally, across national boundaries.

The cash value of ideas, as William James reminds us, is in their practical application. By that standard the Kepner-Tregoe processes have paid handsome dividends to those who have employed them.

These processes have been employed by managers who put astronauts on the moon; by engineers responsible for the life and safety of miners in the tunnels of central Australia; by key managers of one of the worlds largest manufacturers of photo- graphic equipment to launch a multimillion dollar new product effort; by the chairman of a major consumer products company to select a new president; by a major Japanese automobile manufacturer to establish the first Japanese automotive plant site in the United States; by research scientists fighting the incidence of cancer at the Centers for Disease Control and Prevention in Atlanta, Georgia.

Rational Process continues to make a lasting contribution to the discipline of management for one good reason: The approach gets results.

When Ben Tregoe and Chuck Kepner first founded Kepner- Tregoe, the companys mission was to transfer Rational Process to individuals to improve their performance as managers and workers. Today, Kepner-Tregoe goes beyond individual capability development to implement thinking processes throughout organizations to help them gain sustainable competitive advantage. We call this KT Clear Thinking.

When employees at all levels of a company follow KT Clear Thinking, the results are powerful: increased quality, improved efficiency, and lower costs. Given Kepner-Tregoes decades of global experience, weve provided a number of examples to illustrate the successes of KT Clear Thinking while using Rational Process.

We hope The New Rational Manager adds to your own insights about problem solving and decision making and that Rational Process provides you with the same cash value that it has provided to tens of thousands of managers and workers.

Chris Geraghty

Chief Executive Officer

Kepner-Tregoe, Inc.

Princeton, New Jersey


ONE
THE PREMISES OF RATIONAL MANAGEMENT
IN THIS CHAPTER

The Search for Organizational Effectiveness

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