Working with KT

Problem Solving and Decision Making

When confronted with difficult problems, important decisions, and the need for successful actions, you can't just make a “best guess” and hope for a positive outcome. Hunches, instinct, and pure intuition may occasionally be inspiring, but they more often lead to unforeseen difficulties.

Kepner-Tregoe Problem Solving and Decision Making (PSDM) is a step-by-step process that helps people rapidly and accurately resolve a wide range of business issues. Used in organizations worldwide, PSDM helps people at all levels in an organization efficiently organize and analyze information and take appropriate action. PSDM helps people tap into the know-how of individuals, develop consensus, and gain commitment while resolving issues by using a common approach and language.

PSDM processes provide a framework for problem solving and decision making that can easily be integrated into standard operating procedures.  They are often used to enhance operational improvement initiatives such as Six Sigma, Lean Manufacturing, and others. In many organizations PSDM becomes THE way that problems are solved and decisions are made.

Kepner-Tregoe offers a variety of options for learning the PSDM processes.  You can attend one of our regularly scheduled public sessions.  KT can conduct and on-site workshop for your organization.  Although not a replacement for instructor-led learning, KT can work with you to include eLearning as part of a broader skill-development and support strategy.
PSDM is comprised of four distinct processes:

Situation Appraisal is used to clarify issues, set priority and plan appropriate resolutions. When confusion is mounting, the correct approach is unclear, or priorities overwhelm plans, use Situation Appraisal.

Problem Analysis is used to find the cause of a positive or negative deviation. When people, machinery, systems, or processes are not performing as expected, Problem Analysis provides a structured process to identify and verify the cause.

Decision Analysis is used for making choices. When a choice is not clear, when there are too many choices, or the risk of making the wrong choice great, Decision Analysis maximizes benefits and minimize risks, yielding durable, supported decisions.

Potential Problem/Opportunity Analysis is used to protect plans and exceed expectations. When a task or project simply must go well, Potential Problem/Opportunity Analysis reveals the driving factors and identifies ways to ensure success.

Who Should Attend

PSDM is designed for all levels in the organization: executives, managers, supervisors, team leaders, operators, maintenance, engineers, technicians, etc. Wherever there is a need for organized, systematic thinking to resolve issues, PSDM will provide immediate and lasting value.

Results using Problem Solving and Decision Making

• Following a merger, a global company used PSDM to save $1.3 million on insurance costs in the first year and $300,000 in subsequent years.


• A computer chip manufacturer used PSDM to solve a long-standing defect problem, saving $2.8 million annually.


• A food products manufacturer saved $1.03 million by using PSDM to improve planning and decision making by work teams.


• A U.S. money center bank used PSDM to resolve a recurring systems failure and restore their international monetary exchange cycle, preserving millions of dollars in interest earnings.