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In: Accounting

Briefly explain about each of the 6 thinking hats with one real life example each. Blue,...

Briefly explain about each of the 6 thinking hats with one real life example each. Blue, Red, Black, Yellow, Green and white.

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Expert Solution

Hat Definition Examples
Blue Hat Manages the thinking process by timekeeping, moderating, and ensuring the Thinking Hat guidelines are observed.
  • "We will discuss this matter for one hour."
  • "Time to Yellow Hat this idea. Everything else aside, what are the benefits of this plan?"
  • "Let’s set aside emotional responses for the moment; we’ll come to them when it is time to put on the Red Hat."
White Hat Calls for and provides facts and data that are known or needed.
  • "What does it cost us to manufacture one unit?"
  • "Revenue was up 8.5% last quarter."
  • "There are estimated to be 75 million people that are 18-34 years of age in the US, as of last year."
Green Hat Focuses on alternatives, new perceptions, or fresh ideas.
  • "Instead of manufacturing in China, we could refurbish a plant in Detroit."
  • "This is a difficult position. Let’s brainstorm some potential solutions to address the Black Hat problems."
  • "Are there other options?"
Yellow Hat Finds the value and benefits of ideas and supporting concepts.
  • "Can we curtail heating or air conditioning to save on energy costs?"
  • "Our sales staff already has a lot of experience selling widgets."
  • "Pushing into a new market segment would open up a lot of room for growth."
Red Hat Acknowledges feelings like fear, disappointment, enthusiasm, and expresses intuitions or hunches.
  • "That suggestion makes me angry."
  • "I really love this project! I’m excited to work more on it!"
  • "There is no White Hat data to support it, but my gut says customers are afraid we'll cut legacy support down the road."
Black Hat Spots problems and tries to make the best argument against an idea.
  • "We don’t have the production capacity to expand that fast."
  • "I’m pretty sure that would be illegal."
  • "That idea has a lot of Yellow Hat benefits, what problems can we find with it?"

EXAMPLE : The directors of a property company are considering whether they should build a new office block. As part of their decision-making process, they adopt the Six Thinking Hats technique.

Wearing the White Hat, they analyze the data that they have. They can see that the amount of available office space in their city is dwindling, and they calculate that, by the time a new office block would be completed, existing space will be in extremely short supply. They also note that the economic outlook is good, and steady growth is predicted to continue.

Thinking with a Red Hat, some of the directors say that the proposed building looks ugly and gloomy. They worry that people would find it an oppressive or uninspiring place to work.

When they think with the Black Hat, they wonder whether the economic forecast could be wrong. The economy may be about to experience a downturn, in which case the building could sit empty or only partially occupied for a long time. If the building is unattractive, then companies will choose to work in other, more attractive premises.

Wearing the positive Yellow Hat, however, the directors know that, if the economy holds up and their projections are correct, the company stands to make a healthy profit. If they are lucky, maybe they could sell the building before the next downturn, or rent to tenants on long-term leases that will last through any recession.

With Green Hat thinking, they consider whether they should redesign the building to make it more appealing. Perhaps they could build prestige offices that people would want to rent in any economic climate. Alternatively, maybe they should invest the money in the short term, then buy up property at a lower cost when the next downturn happens.

The chairman of the meeting wears the Blue Hat to keep the discussion moving and ideas flowing, encouraging the other directors to switch their thinking between the different perspectives.


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