Function-Oriented Creative Group Problem Solving Patrick Sik-wah Fong This paper presents the concept of Value Management (VM) ± a creative group problem solving technique that has been in use for 50 years and is still gaining in popularity and momentum. The differences between creative problem solving and value management processes are examined. Function analysis ± the element that makes VM different from other traditional problem solving methods is examined in great detail. The paper reviews the use of function analysis to define the objectives of a product, project or service. In doing so, unnecessary costs will be removed and better designs or decisions can be made. Since a VM study will capture the input of a wide range of stakeholders, including end-users of products, services and facilities, planners, designers and other decision-makers, this group problem solving technique should have a higher degree of acceptance and implementation rate. A real life case study has been used to illustrate the group dynamics and processes involved in a value management study. Introduction The rapidly changing competitive environ- ment is altering the landscape of today's business world. As a result, a manager's role is becoming more challenging and demand- ing. Managerial decisions have an influence on the success of an organization. Given today's intense competitiveness, decisions have to be made faster to keep up with increased local, national and global competi- tion. For this reason, interactive and partici- pative management styles which allow people to discuss suggestions for improve- ments, get involved in the decision-making process, and participate as a group member whose ideas and suggestions are valued and welcome, are becoming more important nowadays. Many factors have contributed to the considerable attention given to groups and their increased use of decision-making during recent years. One is that groups possess a synergistic potential which allows them to operate beyond the capabilities of a given member on certain types of tasks. The interaction between group members and their creative potential allow groups to reach creative solutions of better quality than those produced by an individual working alone (Van Gundy, 1984). Ad hoc teams, groups of individuals brought together for a specific task then disbanded upon com- pletion of that task, have long been an aspect of organizational and cross-organizational operations. One very successful use of ad hoc teams is known variously as Value Management (VM), Value Engineering (VE), or Value Analysis (VA). Teams are assembled to represent various disciplines, departments, stakeholders, etc. These teams follow a set of methods which allow them an integrated view of the design, project, product or service, and help them to develop creative new alternatives, many of which involve synergy across the boundaries of disciplines, depart- ments and stakeholders. Creativity and Value Management Definitions of creativity have evolved to include three central ideas: (1) work (the product of some endeavor), (2) transforma- tion (associating unrelated ideas or thoughts), and (3) output (creative results). Koestler (1964) proposed that instead of random Volume 8 Number 3 September 1999 # Blackwell Publishers Ltd 1999. 108 Cowley Road, Oxford OX4 1JF and 350 Main St, Malden, MA 02148, USA. Synergistic potential of group CREATIVITY AND INNOVATION MANAGEMENT 210