ILM by City & Guilds · 8725-514Mandatory unit

Unit 514: Problem-solving and decision-making

The aim of this unit is to enable learners to understand and utilise principles and techniques of effective problem-solving and decision-making. Learners will study and apply a range of techniques to enable them to successfully problem-solve and make effective decisions that gain buy-in from stakeholders and are aligned with organisational objectives, ethics and values. They will gain skills to make pragmatic, evidence-informed, decisions that enhance daily operations, maximise performance and improve stakeholder outcomes.

In short

Unit 514 Problem-solving and decision-making is a 5-credit optional Level 5 unit with only 15 GLH. The evidence requirement is specific: LO2 must cover at least two current problems of complexity appropriate for the qualification, within your area of responsibility, taken through data gathering, options, decision and reflection.

Level

RQF Level 5

Credit value

5 credits

Guided learning

15 hrs

Assessment criteria

9 criteria

Learning outcomes and assessment criteria

To achieve unit 514 your portfolio must evidence every assessment criterion below. There is no exam and no written assignment — you demonstrate each criterion using evidence from your own work.

Learning outcome 1

Understand problem-solving and decision-making

  • 1.1

    Explain the importance of understanding the nature, scope and impact of a problem

    What this covers: The types of problems that occur in organisations and why it is important to define a problem clearly. The nature of a problem may be related to people, processes, systems, communications, resources, etc. Scope may include what is affected, who is affected, how many people are affected, who is able to resolve it etc. Impact may be short (0–6 months), medium (6–12 months) and long term (beyond 12 months) and may include financial loss, loss of customers, staff disengagement etc.

  • 1.2

    Explain the relationship between problem-solving and decision-making

    What this covers: The definitions of problem-solving and decision-making. The steps involved in problem-solving and how decision-making relates to this.

  • 1.3

    Evaluate different techniques used for problem-solving and decision-making

    Evidence requirement: Evidence must include at least two different problem solving and two different decision-making techniques.

    What this covers: Appropriate problem-solving techniques include, but are not limited to: • Eight disciplines (8D) problem solving model • FOCUS model • PDCA cycle • Problem-solving cycle • Problem-definition process etc • Six-step problem solving model • The Cynefin Framework • The drill down technique • The five whys • The four frame model, etc. Appropriate decision-making techniques include, but are not limited to: • pros and cons • weighted decision-making grids • decision trees • pareto analysis • paired comparison analysis, etc.

  • 1.4

    Assess the impact of organisational ethics and values on decision-making

    What this covers: The organisation ethics and values that relate to decision-making. The degree that ethics and values may influence decision-making. The types of decisions that may impact more on ethics and values.

Learning outcome 2

Be able to analyse data to problem solve and make decisions

  • 2.1

    Gather relevant data to identify the nature, scope and impact of problems

    Evidence requirement: Evidence must include at least three different sources to define and scope each problem.

    What this covers: This should include; the methods that can be used to gather data within the organisation, how to retrieve information from organisational systems, how to select a sufficient amount of quality data that relates to problem, collate data in a format that is accessible by those contributing to problem-solving, analyse data to identify patterns and explore options that may be suitable for problem resolution, use relevant methods to generate potential options, work with colleagues to discuss the options that are available to resolve the problem apply decision-making tools and techniques, consider the consequences of each option and the people who may be affected, consider the resource requirements and the costs involved, consider the options of doing nothing or not making a decision, reach consensus about the best solution, use a range of communication methods to involve stakeholders in problem-solving. Consider the different types of stakeholders, including people who: • are affected by the problem • possess expertise, information and resources related to the problem • control the systems that will be required to implement solutions. Select an appropriate form of communication based on the stakeholder’s level of involvement.

  • 2.2

    Analyse data to generate options to address problems

    Evidence requirement: Evidence must include at least two appropriate methods of data analysis to analyse and interpret the gathered data.

    What this covers: This should include; the methods that can be used to gather data within the organisation, how to retrieve information from organisational systems, how to select a sufficient amount of quality data that relates to problem, collate data in a format that is accessible by those contributing to problem-solving, analyse data to identify patterns and explore options that may be suitable for problem resolution, use relevant methods to generate potential options, work with colleagues to discuss the options that are available to resolve the problem apply decision-making tools and techniques, consider the consequences of each option and the people who may be affected, consider the resource requirements and the costs involved, consider the options of doing nothing or not making a decision, reach consensus about the best solution, use a range of communication methods to involve stakeholders in problem-solving. Consider the different types of stakeholders, including people who: • are affected by the problem • possess expertise, information and resources related to the problem • control the systems that will be required to implement solutions. Select an appropriate form of communication based on the stakeholder’s level of involvement.

  • 2.3

    Evaluate options to decide upon the best solutions

    Evidence requirement: Evidence must include at least two options capable of resolving each problem. Data must be both quantitative and qualitative. Evidence should include conclusions drawn to form a basis for option generation and created using a recognised technique for each problem. All of the generated options must be evaluated so that the ‘best’ solution is clearly evident. This might be achieved using a decision-making grid or another quantitative method. Data should be qualitative and quantitative and may include but is not limited to organisational data, external benchmarking data, expert opinion and stakeholder opinion

    What this covers: This should include; the methods that can be used to gather data within the organisation, how to retrieve information from organisational systems, how to select a sufficient amount of quality data that relates to problem, collate data in a format that is accessible by those contributing to problem-solving, analyse data to identify patterns and explore options that may be suitable for problem resolution, use relevant methods to generate potential options, work with colleagues to discuss the options that are available to resolve the problem apply decision-making tools and techniques, consider the consequences of each option and the people who may be affected, consider the resource requirements and the costs involved, consider the options of doing nothing or not making a decision, reach consensus about the best solution, use a range of communication methods to involve stakeholders in problem-solving. Consider the different types of stakeholders, including people who: • are affected by the problem • possess expertise, information and resources related to the problem • control the systems that will be required to implement solutions. Select an appropriate form of communication based on the stakeholder’s level of involvement.

  • 2.4

    Communicate with stakeholders throughout the problem-solving process

    Evidence requirement: Evidence must include at least two different stakeholders or stakeholder groups.

    What this covers: This should include; the methods that can be used to gather data within the organisation, how to retrieve information from organisational systems, how to select a sufficient amount of quality data that relates to problem, collate data in a format that is accessible by those contributing to problem-solving, analyse data to identify patterns and explore options that may be suitable for problem resolution, use relevant methods to generate potential options, work with colleagues to discuss the options that are available to resolve the problem apply decision-making tools and techniques, consider the consequences of each option and the people who may be affected, consider the resource requirements and the costs involved, consider the options of doing nothing or not making a decision, reach consensus about the best solution, use a range of communication methods to involve stakeholders in problem-solving. Consider the different types of stakeholders, including people who: • are affected by the problem • possess expertise, information and resources related to the problem • control the systems that will be required to implement solutions. Select an appropriate form of communication based on the stakeholder’s level of involvement.

  • 2.5

    Reflect on decisions made and the decision-making process

    Evidence requirement: Evidence must show reflection on the decision made and also the problem-solving and decision-making processes employed, including: • How realistic is the final solution? • How effective were the steps used to solve the problems? • How valuable were the techniques employed? • How organisational ethics and values impacted the final solution. Based on their review, the learner must identify how improvements to the process could be made along with lessons learned to provide conclusions and recommendations for the future.

    What this covers: The steps involved in solving the problem and the effectiveness of the techniques used. Capture actions to assist in future problem solving and decision making.

How to approach unit 514

Written by our assessment team: what the criteria mean in practice, the evidence that works, and where learners get caught out.

What this unit is really about

Unit 514 is 5 credits on only 15 guided learning hours, which tells you most of the work is the practical outcome rather than taught content. The spec sets the scope: LO2 requires at least two current problems of complexity appropriate for the qualification, in your area of responsibility.

Two words in that requirement do the work. Two — one worked problem is not enough. And complexity appropriate for the qualification — a Level 5 problem is not a scheduling irritation. It should have competing interests, incomplete data, more than one defensible answer, and consequences beyond your own team.

The evidence that works

Learning outcomeEvidence that works well
LO1 — understandThe importance of understanding a problem's nature, scope and impact; the relationship between problem-solving and decision-making; an evaluation of techniques; and an assessment of how organisational ethics and values affect decisions
LO2 — analyse data to solve and decideFor each of two problems: the data gathered, the analysis generating options, the evaluation leading to a decision, records of stakeholder communication throughout, and a reflection on the decision and the process

Criterion 2.4 asks for communication with stakeholders throughout the process — not just at the end. Keep the dated trail: the email consulting the affected team, the update at the halfway point, the decision communicated with its reasoning. This is the criterion most often missing.

The relationship the unit hangs on

Criterion 1.2 asks for the relationship between problem-solving and decision-making, and the crisp answer is that they are not the same activity. Problem-solving is diagnostic — understanding what is wrong and generating options. Decision-making is a choice under uncertainty, and it happens repeatedly within problem-solving: which data to trust, which options to carry forward, when to stop analysing. You can solve a problem analytically and still decide badly, and you can decide well on a problem you have diagnosed wrongly, which is worse.

For criterion 1.3, evaluate techniques rather than list them. Root-cause methods (five whys, fishbone) find causes but not priorities; Pareto prioritises but does not explain; decision matrices force explicit weighting but the weights are subjective; cost-benefit disciplines the thinking but undervalues what is hard to quantify; group techniques improve buy-in and slow everything down. Judgement about fit is the evaluation.

Ethics, which is the distinctly Level 5 criterion

Criterion 1.4 asks you to assess the impact of organisational ethics and values on decision-making. The weak answer restates the values statement. The strong answer examines a real tension:

  • A cost decision that protects the budget and damages service quality
  • A supplier who is cheapest and has questionable labour practices
  • A restructuring that is operationally right and personally damaging
  • Data you could legally use but people would not expect you to use
  • A performance decision consistent with policy and felt to be unfair

Assess how the stated values actually bore on the decision, and whether they were decisive or decorative. Then, in your reflection (2.5), be explicit about what you would decide differently — including where you got it wrong. Level 5 reflection that finds no error is rarely believed.

Useful reading

Supporting information for unit 514

Unit aim: The aim of this unit is to enable learners to understand and utilise principles and techniques of effective problem-solving and decision-making. Learners will study and apply a range of techniques to enable them to successfully problem-solve and make effective decisions that gain buy-in from stakeholders and are aligned with organisational objectives, ethics and values. They will gain skills to make pragmatic, evidence-informed, decisions that enhance daily operations, maximise performance and improve stakeholder outcomes.

Evidence requirements: LO2 Evidence must include at least two current problems of complexity appropriate for the qualification which must be in their area of responsibility, over a sufficient timeframe to allow consideration of the problem-solving process but not so long that it extends beyond the qualification.

Evidencing this unit

All evidence for the skills learning outcomes must be generated in the workplace or a realistic working environment, and must be valid and attributable to you.

  • Workplace documentation and records — team development plans, project implementation reports, meeting agendas and minutes, training materials
  • Video clips, up to a maximum of 15 minutes
  • Projects
  • Reflective accounts, journals and logs
  • Assessment observation
  • Witness testimonies

Where unit 514 counts

This unit sits in the ILM Level 5 Leadership and Management suite (8725) and counts towards the pathways below, from £695.

Frequently asked questions

How many problems does unit 514 need?

At least two current problems, of complexity appropriate for Level 5, within your area of responsibility. Each needs data gathering, options analysis, a decision, stakeholder communication throughout, and a reflection.

What makes a problem 'complex enough' for Level 5?

Competing interests, incomplete data, more than one defensible answer, and consequences beyond your own team. A scheduling irritation with an obvious fix will not meet the standard.

Is unit 514 mandatory?

Yes. Unit 514 is a mandatory unit — every learner on the relevant pathway must complete it.

How is unit 514 assessed?

Assessment is a portfolio of evidence, centre-devised and internally set and marked. There are no exams and no written assignments.

What evidence can I use for unit 514?

All evidence for the skills learning outcomes must be generated in the workplace or a realistic working environment, and must be valid and attributable to you. Workplace documents, projects, reflective accounts, observation records and witness testimonies are all valid sources.

Which qualifications include unit 514?

It counts towards the Level 5 Award, Level 5 Certificate, Level 5 Diploma, Level 5 Extended Diploma.