PISCO MODEL PISCO PROBLEM SOLVING MODEL ( P roblem, I nput, S olution, C hoice,
ID: 387834 • Letter: P
Question
PISCO MODEL
PISCO PROBLEM SOLVING MODEL
(Problem, Input, Solution, Choice, Operation)
PISCO is adapted from: DeBono, Edward (1985). Six thinking hats. New York; Little, Brown and Company.
After carefully reading the “case” provided below, read through the PISCO Problem Solving Model and use this model to write your case analysis:
Problem (Section 1):
1. The Problem Statement is short and to the point. Give the reader some background information (setting and broad nature of the issue).
2. Develop a clear and concise problem statement for which you are seeking resolution. Do not include a lot of facts in this section;the facts belong in the Input Section.
Input (Section 2):
1. What are the facts that might have a bearing on this problem (use research to support your work here!)? . Include at least 3 outside sources (course text (required) and two others, including journal articles) on one or more of the topics (e.g. bribery, humanitarian aid) raised in the case study. Also, use of popular (non-scholarly) sources should be limited or additional (beyond the 3 required).
2. Include all the facts (restate the facts in your own words from thecase study) that are needed to solve your problem.
Solution (Section 3):
1. Develop two or three of the best solutions you can imagine for this problem/issue. What are the two or three things that would make this situation better?
2. List the Strengths, Weaknesses, Opportunities and Threats (SWOT Analysis) of each of the three solutions proposed.
3. Provide a rationale for each of the strengths, weaknesses, opportunities and threats listed. You may concepts from the text or independent research for support. However, each part of each SWOT should be sufficiently discussed.
Choice (Section 4):
1. Write a clear statement that explains provides sufficient rationale for why this is the best solution. In other words, which is the best of the solutions you outlined and why. The Choice statement should be short, no more than 2 to 3 sentences.
2. In this case, the Choice is Alistair’s so don’t inflict your opinionanywhere in the document by saying, “I think,” or “ I choose,” or anything with an “I” or “me.” The choice would be Alistair’s choice and therefore should be written in those terms. The justification has already been made and it does not need to be repeated in this section.
Operation (Section 5):
1. Write an operational goal for the choice you selected.
2. Develop an action plan with at least 4 to 6 “action” steps. What are the next steps to be taken after a decision is made.
3. CASE
Honor The Cost of Philanthropy
As chief legal officer in a well-respected company making lifesaving drugs, Alistair has been asked by his board of directors to look into rumors of price-fixing in the firm's European offices. His board has a very strong ethics policy, and is especially wary of price-fixing, bribery, kickbacks, and other unethical activities that can plague overseas operations.
After several months of detailed interviews in Europe, Alistair satisfies himself that the rumors are groundless. "There's no issue here," he heard several managers say. “But,” added one such manager, "if you really want something to investigate, look into the Bosnia contract."
Over the months, Alistair keeps hearing about "the Bosnia contract." So when he finishes his report on the price-fixing rumors, he decides to satisfy his curiosity on this matter. The contract, he discovers, is ordinary in almost every respect: A major relief organization has contracted with his company to supply a million inexpensive kits of medicine for delivery into the war-torn regions of Bosnia. Like most such contracts with charitable organizations, it contains hardly any profit for his firm.
What he finds strange, however, is the payment of an extraordinarily large commission to a Romanian distributor to deliver the kits deep into Bosnia. Seeking out the executive in his own firm who negotiated the contract, he has one question in mind: Is this a bribe?
“Yes and no,” says the executive. According to the Romanian distributor, the backs of the delivery trucks are loaded with the kits—and the glove compartments are stuffed with cash. That way, when the drivers are stopped at roadblocks set up by local militia units operating all across Bosnia, they can pay whatever is demanded and continue their journey. “In the past,” he notes, “drivers without cash have been taken from their trucks and shot. If the kits are to be delivered, this is the cost of doing business.”
Alistair feels sure that none of the money has flowed back to the executive, whose only motive is to get the kits delivered. And by this time, the deliveries have already been made. Yet Alistair still faces a dilemma. Should he draft a separate report to the board on this most unorthodox contract—possibly causing great harm to the executive who negotiated it or embarrassment to the relief organization, which is aware of the commission? Or should he keep silent?
What should Alistair do?
Alistair, who has to decide whether to draft a report to the board about the issue at hand or keep silent. What I want you to learn from the exercise is how to set up the case in the PISCO model form. The final decision is not important for this case as far as a grade.
Explanation / Answer
Problem (Section 1):
1. Introduction: As chief legal officer in a well-respected company making lifesaving drugs, Alistair has been asked by his board of directors to look into rumours of price-fixing in the firm's European offices keeping into consideration that the company has a strong ethics policy.
2. Problem Statement: After deep diving into the Bosnia Contact, the dilemma Alistair faces is that whether Alistair should support the philanthropic activities of the company at Bosnia or whistle-blow the unfair trade practices involved therein.
Input (Section 2):
1. Case Facts:
2. External Facts:
Clearly, the company’s actions do not fall into either of the categories.
Solution (Section 3):
1. Alistair remains silent in the report to be provided.
Strength:
- The company’s relationships with the trade executive remains safe & strong
- The drivers’ lives are saved
It has to be noted that the commissions are not only helping in the philanthropic activities but also saving lives of the drivers who are risking their lives for the reputation of the Company. Thus, the executive can’t be blamed for bribing. Rather, he/she is facilitating the trade.
Weakness:
- Alistair’s remaining silent portrays the supremacy of the militia and helplessness of the Company
Opportunities:
- Increasing opportunity to dwell further into Bosnia & other militia prone yet needy countries with the commission payments as a safeguard for the drivers as well as the trade
Threats:
- The rumors would increase & officials might lose faith in the company’s strong ethics system
2. Alistair acts as whistle-blower in the report without blaming the executive
Strength:
- The employee’s beliefs in the company’s ethics system remains intact as they get to know about the exact situation of the Bosnia Contract
- The drivers’ lives are saved and trade is not hampered as well
In this case, Alistair might have to ensure that the commissions are represented as a facilitating expense and not bribe since the deed cannot be carried out without paying the militia.
Weakness:
- Improper communication of the situation may lead to loss in faith on the company’s ethics policies
Opportunities:
- Increasing opportunity to dwell further into Bosnia & other militia prone yet needy countries with the commission payments as a safeguard for the drivers as well as the trade
Threats:
- The employees might try to partner with the militia
This can be stopped only by proper communication regarding what is bribe, ensuring a proper channel of the commissions being paid and being transparent about the facilitating expenses.
Choice (Section 4):
Since the commissions paid are not bribes but facilitating expenses to the militia which is beyond the control of the Company, Alistair should report the same to the Board and be transparent about the expenses since they are not only letting the company’s trade flow smoothly but also ensuring that the drivers’ lives are not at risk.
Operation (Section 5):
1. Operational Goal:
The company becomes transparent about the Commissions paid so that all the stakeholders of the trade remain satisfied and philanthropic deed is carried out smoothly
2. Action Steps post decision is made:
i. Proper communication to the employees regarding the current situation, what does bribe mean and the facilitating expenses
ii. Ensuring a proper budget which now transparently discloses the militia expenses
iii. Creating an effective distribution channel in which all the commissions are taken care of, ensuring no employee takes any amount out of the commission & gets involved into any malpractices
iv. Creating a committee that keeps a check on such expenses & involvement of employees in it.
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