Solving managerial problems systematically: a guide to the MPSM

A structured and flexible method for addressing complex organizational problems in the University of Twente IEM curriculum.
Problem-Solving
Methodology
IEM
Published

January 13, 2025

Preface

If you study IEM at the University of Twente, you will often hear about the Managerial Problem-Solving Method (MPSM). This practical introduction explains how the method addresses unclear managerial problems. Dr. Hans Heerkens developed and teaches the method at UT and co-authored the book with Arnold van Winden.

“This book focusses on the Managerial Problem-Solving Method (MPSM), a tried and true problem-solving method which can be applied to various problems occurring in a multitude of situations in all subject areas.” (Heerkens & Van Winden, 2021, p. 3)

The book documents applications in waste management, airport operations, and packaging production:

“The MPSM has helped a waste management company solve an issue with working hours which did not fit with garbage truck routes; mathematics alone was not enough to solve this logistical puzzle. MPSM’s consistent approach helped make an airport better suited to certain types of aircraft. It has improved productivity of packaging machines. The MPSM can be used anywhere, anytime.” (Heerkens & Van Winden, 2021, p. 13)

MPSM as a methodology

Heerkens and Van Winden connect research methodology with the design of practical solutions. They describe the separation between these traditions:

“Most books on methodology are concerned with research methodology, which centres on how to acquire knowledge and information. A minority of methodological literature is concerned with designing, with solving practical problems. In this book on the MPSM, research and design go hand in hand.” (Heerkens & Van Winden, 2021, p. 15)

The authors use both “method” and “problem-solving approach” for MPSM. In formal research terminology, MPSM is a methodology because it provides principles for selecting and applying methods and tools.

The book explicitly addresses this positioning:

“The MPSM is one of several systematic problem-solving approaches. Developed by the University of Twente, the MPSM is based on several different problem solving methods.” (Heerkens & Van Winden, 2021, p. 12)

MPSM combines existing tools within one problem-solving process. The authors explain its flexibility:

“The phases of the MPSM are the basis for you own problem solving approach. You should look at this approach as a framework, a grid for you to fill in as you want. Each of the phases allows you to use different models, techniques and methods to your hearts content.” (Heerkens & Van Winden, 2021, p. 14)

The systematic selection and application of methods makes MPSM a methodology.

Connecting research and design

The authors connect the acquisition of knowledge with the design of solutions:

“The goal of nearly all research is to contribute to resolving a situation you are unhappy with. In order to come to grips with a problem, you need knowledge. In order to get knowledge, you conduct research; you investigate. Using existing literature, you can certainly go some way when it comes to researching or designing solutions. But getting the two to mesh can be quite a hassle.” (Heerkens & Van Winden, 2021, p. 15)

MPSM incorporates an eight-phase research cycle into its problem-solving process. An action problem describes a situation you want to change. A knowledge problem identifies information you need before deciding how to act.

Introduction

Managerial problems often begin with several connected symptoms and no clear starting point. Examples include declining productivity, outdated machinery, and low employee motivation.

MPSM combines systematic analysis with room for creative work:

“The Managerial Problem-Solving Method allows you to embark on necessary creative jaunts within the systematic approach to a problem. These excursions are a requirement for reaching quality solutions.” (Heerkens & Van Winden, 2021, p. 16)

Problems as analytical concepts

MPSM treats problems analytically rather than emotionally:

“Solving a managerial problem does not involve feelings of sadness, or other emotions for that matter. It is simply to do with not liking or not knowing something.” (Heerkens & Van Winden, 2021, p. 21)

There are two fundamental types:

The language of variables

A distinctive feature of MPSM is its insistence on expressing everything through variables:

“Using the MPSM, reality is expressed in variables – and variables only. Formulating these variables carefully allows you to establish inconsistencies in your analyses quite easily.” (Heerkens & Van Winden, 2021, p. 13)

The rationale is clear:

“If you cannot express something in terms of variables, then it cannot contribute to a solution… nor can it be a problem.” (Heerkens & Van Winden, 2021, p. 14)

This discipline requires concrete statements. Replace “motivation is low” with a measurable claim such as “Average motivation score is 5/10, compared with a target of 8/10, measured through absenteeism and willingness to work overtime.”

The seven phases of MPSM

The methodology guides you through seven phases, with flexibility to iterate:

Phase 1: Defining the problem

Create a problem cluster, which is a visual map of causal relationships between problems. Then identify the core problem, whose solution will have the greatest effect.

Key principles:

  • Start with “quick and dirty” inventory of problems
  • Only include problems you’re certain exist
  • Follow cause-effect chains to find root causes
  • Choose problems you can actually influence

Phase 2: Formulating your approach

Plan using D3: Do, Discover, Decide:

  • Do: Activities that need performing
  • Discover: Information you need to acquire
  • Decide: Options among which you must choose

Map stakeholders (problem owners, victims, helpers), resources needed, and constraints.

Phase 3: Analyzing the problem

Research the problem:

“During the problem analysis phase, you conduct research because you need more information. You review your problem identification and problem cluster. You fill in the missing details. You look for as yet unknown explanations for your problem.” (Heerkens & Van Winden, 2021, p. 69)

Critical advice:

“In your quest for explanations of problems, do not feel you should untangle every single little detail. There is no point in conducting research for the sake of having conducted research.” (Heerkens & Van Winden, 2021, p. 65)

Phase 4: Formulating alternative solutions

Generate and systematically evaluate options through seven steps:

  1. Define the decision
  2. Define the decision-making process
  3. Establish criteria
  4. Scale criteria (e.g., 1-5 points)
  5. Weight criteria by importance
  6. Generate alternatives (brainstorming, synectics, morphology)
  7. Evaluate attractiveness

The MoSCoW Rules help prioritize requirements (Heerkens & Van Winden, 2021, p. 82):

  • Must have (non-negotiable)
  • Should have (important but not critical)
  • Could have (nice to have)
  • Want but Will not have this time

Phase 5: Choosing a solution

The client typically chooses the solution. The advisor prepares and explains the evidence for that decision:

“‘No authority without responsibility’: Wisdom fit for framing on a boardroom wall. The advisor dots all i’s and crosses all t’s to arrive at the best possible option. The decision-maker can take that information on board, but will also look further.” (Heerkens & Van Winden, 2021, p. 93)

Decision-makers may deviate from a recommendation because of strategic context, risk assessments, or political considerations. The final choice can remain reasonable when those factors are documented.

Phase 6: Implementing the solution

Create detailed implementation plans covering:

  • Step-by-step activities with responsibilities and costs
  • Change management strategies (top-down, bottom-up, or hybrid)
  • Communication plans
  • Systems for monitoring progress

Key principle:

“Be systematic. Provide sufficient detail for each measure, and perform progress checks according to a system of control.” (Heerkens & Van Winden, 2021, p. 105)

Phase 7: Evaluating the solution

Organizations often resist evaluation or assign it a low priority. The authors describe this problem:

“Users or decision-makers will rarely be the ones asking for an evaluation. They tend not to see any point in it. Or they are not interested in its outcome. Evaluating scores low on the scale of priorities.” (Heerkens & Van Winden, 2021, p. 111)

Two evaluation types:

  • Summative: Did we meet our goals?
  • Formative: Why did results occur as they did?

The research cycle

Throughout MPSM, you frequently need to solve knowledge problems via the eight-phase research cycle:

  1. Formulate research goal
  2. Formulate problem statement (as a question!)
  3. Formulate research questions
  4. Design research approach
  5. Operationalize variables (make measurable via indicators)
  6. Gather data
  7. Process and analyze data
  8. Draw conclusions

The research cycle begins whenever the MPSM process identifies missing information:

“When dealing with an action problem, you always need a certain amount of knowledge. As soon as you find that there is information you need and do not already have, you move away from the MPSM, and enter the research cycle. Once you have completed the cycle (and your investigation), you re-enter the MPSM at the phase from which you left off.” (Heerkens & Van Winden, 2021, p. 26)

Guidance from the authors

Creative and systematic approaches

“A creative approach has major potential rewards, but a relatively greater risk of failure. There are rarely any brilliant strokes of luck involved in the outcome of the systematic approach, but it will generally yield acceptable results.” (Heerkens & Van Winden, 2021, p. 11)

The authors recommend choosing one approach or combining them according to the situation:

“The systematic approach and the creative approach are not contradictory; instead, they are complementary. Depending on the situation, use either a systematic approach, a creative approach, or a combination of the two.” (Heerkens & Van Winden, 2021, p. 12)

Context and tailoring

“Many problem-solving methods are only concerned with whatever solution technically solves the problem. Established powers and concerns in an organisation are not investigated… Using the MPSM, you will find that no problem is an isolated issue. Any problem is a problem in the context of an organisation.” (Heerkens & Van Winden, 2021, p. 13)

Simplicity

“The MPSM, on the other hand, sets itself apart by its simplicity. You do not need to know the seven phases by heart; a global idea is all you need - as long as you have this book at hand.” (Heerkens & Van Winden, 2021, p. 14)

Using indicators

When operationalizing abstract concepts like “motivation” through measurable indicators, the authors warn:

“Because humans are emotional creatures, the laws of physics do not always apply to their thoughts or actions. For example, the status of an employee in many companies is directly proportional to the size of their company car. But this same indicator, car size, will probably backfire if applied to an organisation like Greenpeace.” (Heerkens & Van Winden, 2021, p. 47)

The Lock plastic production case

Chapter 3 presents a detailed case study following a trouble-shooter’s log through all seven phases. The company faces losses due to aging machinery causing production stagnation. The process reveals:

  • Initial problem cluster identifying multiple interconnected issues
  • Research discovering material hardness affects cutting stage failures
  • Multiple solution alternatives (new machines, refurbishment, outsourcing)
  • Board choosing outsourcing despite advisor recommending new machines
  • Successful implementation with lessons about flexibility

The case shows that organizational problem-solving can require iteration and adaptation.

Scope of the MPSM contribution

The authors are refreshingly honest about their contribution:

“As you read, you will find that much of what is discussed in this book is based on existing knowledge. Not all of the individual parts of the MPSM are brand new. This book is a way of combining theories and methods into a practical reference work for dealing with all sorts of managerial problems, from the seemingly easy to the truly complex.” (Heerkens & Van Winden, 2021, p. 3)

The authors claim integration and systematization of existing knowledge. MPSM makes that knowledge accessible and shows how to select an appropriate method at each stage.

The book explicitly avoids deep philosophical justification:

“This book does not go into a scientific or philosophical justification of the method. The MPSM’s usefulness and underlying logic become apparent to the reader without discussing theories posed by other authors.” (Heerkens & Van Winden, 2021, p. 3)

The practical focus makes the book accessible to students and practitioners. Academic readers may want additional theoretical justification.

Relevance for IEM students

Industrial Engineering and Management connects technical analysis with organizational decisions. Engineers use optimization, while managers must also consider people, politics, and context. MPSM gives students a structured process for handling both sets of concerns.

Key benefits:

  1. Applicable across domains: Works for logistics, production, organizational design, and strategy
  2. Balances rigor with pragmatism: Systematic without being rigid
  3. Integrates analysis and action: Doesn’t separate knowing from doing
  4. Teachable and learnable: Clear phases without requiring extensive prerequisites
  5. Context-aware: Recognizes organizational realities

Conclusion

The Managerial Problem-Solving Method is a mature methodology for addressing complex organizational problems. It systematizes established practices and connects research with solution design.

For IEM students, MPSM provides a reliable process for approaching unfamiliar problems. Students remain responsible for the solution while using the phases to work systematically and preserve room for creativity and contextual judgment.

As the authors remind us:

“The key is to stay flexible, involve the right people, and remember: ‘Problems are only opportunities in work clothes’ (Henry J. Kaiser).” (adapted from Heerkens & Van Winden, 2021, p. 21)

MPSM provides a tested process for work on production lines, organizational design, supply chains, and other managerial problems.

References

Heerkens, H., & Van Winden, A. (2021). Solving Managerial Problems Systematically (1st ed.). Routledge. Retrieved April 10, 2024, from https://www.taylorfrancis.com/books/9781000406153