Directions

• Read the Historic Mark case.
• Use the Rational Problem Solving Model to develop a solution to the problem.
• Be prepared to share your problem solving process and recommendation.

Scenario It's January 15th, 2022 and you, as the manager of a large, mixed-use building of offices and apartments, The Historic Mark, briefed the owner last month on the current operating budget, maintenance issues, vacancy rate, and other issues.

You showed that given the economy was improving, the occupancy rate has improved from 62% to 70% during the last quarter, rental rates increased for the new office tenants from $8.75/ sq. ft. to $11.95/ sq. ft., the operating budget has decreased, and the building was now operating with a positive cash flow.

The operating budget would have been better had the manager not had to make structural modifications to reinforce the building to bring it in compliance with current building regulations. This modification effort will continue for the next two months which you believe has curtailed your ability to rent the vacant offices and apartments.

The number of tenant complaints about the building has increased markedly as of late with most of the complaints focusing on the building's slow elevator service. Several of the long-term tenants in the building have threatened to move out unless the service is improved. In response, you inquired into the possibility of adding one or two elevators to the building. Although it is feasible, the only elevator company in the area has a six-month backlog of orders.

You advised the owner of the "complaints" situationthat you received about 70 complaints over the past two monthswhereas before, you had generally received about 20 complaints per month. You highlighted the fact that most of the complaints received related to the elevators. The owner told you that you had better keep the occupancy rate at or above what it currently is and figure out how to handle the situation at the lowest cost and in the quickest way possible.

You must present the plan at the next staff meeting.

1. Define the problem.

2. Write your Problem Statement in the format of Current State, Impact, and Desired End State while following the rules for writing problem statements.

3. Use a problem solving tool to analyze the root cause: Five Why's, Fishbone, and Affinity Diagram are all useful.

4. Identify alternative solutions to address the root cause and problem statement.

5. Identify criteria and develop a rating approach for the criteria.

6. Develop a decision matrix and assess alternatives against selection criteria.