leadership problem solving & decision making

Problem-solving in Leadership: How to Master the 5 Key Skills

The role of problem-solving in enhancing team morale, the right approach to problem-solving in leadership, developing problem-solving skills in leadership, leadership problem-solving examples.

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What’s the Role of Problem-solving in Leadership?

• Getting to the root of the issue:  First, Sarah starts by looking at the numbers for the past few months. She identifies the products for which sales are falling. She then attempts to correlate it with the seasonal nature of consumption or if there is any other cause hiding behind the numbers. 
• Identifying the sources of the problem:  In the next step, Sarah attempts to understand why sales are falling. Is it the entry of a new competitor in the next neighborhood, or have consumption preferences changed over time? She asks some of her present and past customers for feedback to get more ideas. 
• Putting facts on the table:  Next up, Sarah talks to her sales team to understand their issues. They could be lacking training or facing heavy workloads, impacting their productivity. Together, they come up with a few ideas to improve sales. 
• Selection and application:  Finally, Sarah and her team pick up a few ideas to work on after analyzing their costs and benefits. They ensure adequate resources, and Sarah provides support by guiding them wherever needed during the planning and execution stage. 
• Identifying the root cause of the problem.
• Brainstorming possible solutions.
• Evaluating those solutions to select the best one.
• Implementing it.

• Analytical thinking:   Analytical thinking skills refer to a leader’s abilities that help them analyze, study, and understand complex problems. It allows them to dive deeper into the issues impacting their teams and ensures that they can identify the causes accurately. 
• Critical Thinking:  Critical thinking skills ensure leaders can think beyond the obvious. They enable leaders to question assumptions, break free from biases, and analyze situations and facts for accuracy. 
• Creativity:  Problems are often not solved straightaway. Leaders need to think out of the box and traverse unconventional routes. Creativity lies at the center of this idea of thinking outside the box and creating pathways where none are apparent. 
• Decision-making:  Cool, you have three ways to go. But where to head? That’s where decision-making comes into play – fine-tuning analysis and making the choices after weighing the pros and cons well. 
• Effective Communication:  Last but not at the end lies effective communication that brings together multiple stakeholders to solve a problem. It is an essential skill to collaborate with all the parties in any issue. Leaders need communication skills to share their ideas and gain support for them.

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Problem Solving and Decision Making - Two Essential Skills of a Good Leader

Problem solving and decision making are two fascinating skillsets. We call them out as two separate skills – and they are – but they also make use of the same core attributes.

They feed on a need to communicate well, both through questioning and listening, and be patient and not rushing both processes through. Thus, the greatest challenge any leader faces when it comes to solving problems and decision making is when the pressure of time comes into play. But as Robert Schuller highlights in his quote, allowing problem-solving to become the decision means you’ll never break free from the problem.

“Never bring the problem-solving stage into the decision-making stage. Otherwise, you surrender yourself to the problem rather than the solution.”—Robert H. Schuller

So how does a leader avoid this trap? How do they ensure the problem solving doesn’t become the be-all and end-all?

The 7 steps of Effective Problem Solving and Decision Making

A vital hurdle every leader must overcome is to avoid the impulsive urge to make quick decisions . Often when confronted with a problem, leaders or managers fall back in past behaviours. Urgency creates pressure to act quickly as a result, the problem still exists, just side-lined until it rears its ugly head again.

Good problem solving opens opportunity. A notable example of this is the first principles thinking executed by the likes of Elon Musk and others. Understanding the fundamentals blocks of a process and the problem it’s creating can lead to not just the problem but accelerate beyond it.

So, to avoid the trap, and use problem solving and decision making effectively , you should embody yourself with the following seven steps.

1.      What is the problem?

Often, especially in time-critical situations, people don’t define the problem. Some label themselves as fire-fighters, just content with dowsing out the flames. It is a reactionary behaviour and one commonplace with under-trained leaders. As great as some fire-fighters are, they can only put out so many fires at one time, often becoming a little industry.

The better approach is to define the problem, and this means asking the following questions:

• What is happening? ( What makes you think there is a problem?)
• Where is it taking place?
• How is it happening?
• When is it happening?
• Why is it happening?
• With whom is it happening? (This isn’t a blame game…all you want to do is isolate the problem to a granular level.)
• Define what you understand to be the problem in writing by using as few sentences as possible. (Look at the answers to your what, where, why, when, and how questions.)

2.      What are the potential causes?

Having defined the problem it is now time to find out what might be causing the problem. Your leadership skills: your communication skills need to be strong, as you look to gather input from your team and those involved in the problem.

Key points:

• Talk to those involved individually. Groupthink is a common cause of blindness to the problem, especially if there is blame culture within the business.
• Document what you’ve heard and what you think is the root cause is.
• Be inquisitive. You don’t know what you don’t know, so get the input of others and open yourself up to the feedback you’ll need to solve this problem.

3.      What other ways can you overcome the problem?

 Sometimes, getting to the root cause can take time. Of course, you can’t ignore it, but it is important to produce a plan to temporarily fix the problem. In business, a problem will be costing the business money, whether it be sales or profit. So, a temporary fix allows the business to move forward, providing it neutralises the downside of the original problem.

4.      How will you resolve the problem?

At this stage, you still don’t know what the actual problem is. All you have is a definition of the problem which is a diagnosis of the issue. You will have the team’s input, as well as your opinions as to what the next steps should be.

If you don’t, then at this stage you should think about reassessing the problem. One way forward could be to become more granular and adopt a first-principles approach.

• Break the problem down into its core parts
• What forms the foundational blocks of the system in operation?
• Ask powerful questions to get to the truth of the problem
• How do the parts fit together?
• What was the original purpose of the system working in this way?
• Name and separate your assumptions from the facts
• Remind yourself of the goal and create a new solution

Solve hard problems with inversion

Another way is to invert the problem using the following technique:

1. Understand the problem

Every solution starts with developing a clear understanding of what the problem is. In this instance, some clarity of the issue is vital.

2. Ask the opposite question

Convention wisdom means we see the world logically. But what if you turned the logical outcome on its head. Asking the opposite questions brings an unfamiliar perspective.

3. Answer the opposite question

It seems a simple logic, but you can’t just ask the opposite question and not answer it. You must think through the dynamics that come from asking the question. You're looking for alternative viewpoints and thoughts you've not had before.

4. Join your answers up with your original problem

This is where solutions are born. You’re taking your conventional wisdom and aligning it with the opposite perspective. So often the blockers seen in the original problem become part of the solution.

5.      Define a plan to either fix the problem permanently or temporarily

You now know the problem. You understand the fix, and you are a position to assess the risks involved.

Assessing the risks means considering the worst-case scenarios and ensuring you avoid them. Your plan should take into the following points:

• Is there any downtime to implementing the solution? If so, how long, and how much will it cost? Do you have backup systems in place to minimise the impact?
• If the risk is too great, consider a temporary fix which keeps current operations in place and gives you time to further prepare for a permanent fix.
• Document the plan and share it with all the relevant stakeholders. Communication is key.

Here we see the two skills of problem solving and decision making coming together. The two skills are vital to managing business risks as well as solving the problem.

6.      Monitor and measure the plan

Having evolved through the five steps to this stage, you mustn’t take your eye off the ball as it were.

• Define timelines and assess progress
• Report to the stakeholders, ensuring everyone is aware of progress or any delays.
• If the plan doesn’t deliver, ask why? Learn from failure.

7.      Have you fixed the problem?

Don’t forget the problem you started with. Have you fixed it? You might find it wasn’t a problem at all. You will have learnt a lot about the part of the business where the problem occurred, and improvements will have taken place.

Use the opportunity to assess what worked, what didn’t, and what would have helped. These are three good questions to give you some perspective on the process you’ve undertaken.

Problem solving and decision making in unison

Throughout the process of problem solving, you’re making decisions. Right from the beginning when the problem first becomes clear, you have a choice to either react – firefight or to investigate. This progresses as move onto risk assessing the problem and then defining the solutions to overcome the issue.

Throughout the process, the critical element is to make decisions with the correct information to hand. Finding out the facts, as well as defeating your assumptions are all part of the process of making the right decision.

Problem solving and decision making – a process 

Problem solving isn’t easy. It becomes even more challenging when you have decisions to make. The seven steps I’ve outlined will give you the ability to investigate and diagnose the problem correctly.

• What is the problem?
• What are the potential causes?
• What other ways can you overcome the problem?
• How will you resolve the problem?
• Define a plan to either fix the problem permanently or temporarily.
• Monitor and measure the plan.
• Have you fixed the problem?

Of course, this logical step by step process might not enable you to diagnose the issue at hand. Some problems can be extremely hard, and an alternative approach might help. In this instance, first principles thinking or using the power of inversion are excellent ways to dig into hard problems. Problem solving and decision making are two skills every good leader needs. Using them together is an effective way to work.

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• Leadership and Decision-Making: Empowering Better Decisions

A key task in leadership and decision-making is finding ways to encourage employees at all levels to make better decisions on the organization’s behalf in negotiations and beyond, according to a new book.

By Katie Shonk — on April 29th, 2024 / Leadership Skills

What is the role of leadership in an organization? Contrary to the traditional image of a sole individual steering the ship, leaders have an obligation to empower everyone in their organization to make sound and ethical decisions in negotiations and other contexts, write University of California, Berkeley, professor Don A. Moore and Harvard Business School professor Max Bazerman in their new book, Decision Leadership: Empowering Others to Make Better Choices .

During a virtual event moderated by Harvard Business School professor Deepak Malhotra , Moore and Bazerman shared principles on leadership and decision-making from their book. “The thing that leaders can most affect are the decisions of the people they lead,” said Bazerman; consequently, “we’re interested in the decisions not just of the leader but of all of those people who are influenced by the leader.”

Don’t Neglect Ethics

“Great leaders create the norms, structures, incentives, and systems that allow their direct reports, organizations, and the broader stakeholders to make decisions that maximize collective benefit through value creation,” Moore and Bazerman write in Decision Leadership . They emphasize the importance of “setting the stage”—creating environments in which people can make good decisions.

As a result, the leadership and decision-making book focuses a great deal on ethics, noted Malhotra during the book talk. He asked if effective leadership thus must embody a certain type of leadership, such as moral leadership or ethical leadership . “Is there such a thing as being a great leader when you’re not thinking about maximizing collective benefit or value creation?” Malhotra asked.

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According to Moore, leaders who ignore the ethical implications of their decisions face profound moral, legal, financial, and other risks. “To pretend that business decisions don’t have ethical implications ignores a key dimension on which decisions will be evaluated,” he said. “Effective leadership must consider the wider consequences of any decision,” which is by definition an ethical consideration.

“If we think about some of the failed leaders of the past decade,” added Bazerman, “whether it’s Adam Neumann [of WeWork] or Elizabeth Holmes [of Theranos] or Travis Kalanick [Uber], we see people who dramatically influenced the behavior of others.” Such leaders caused harm in part “because their leadership was so devoid of the ethical dimension,” Bazerman said. In particular, these leaders failed to consider “how to help people make ethical decisions that will make society better off.”

Beyond Changing Hearts and Minds

Decision Leadership offers advice on how leaders can create cultures, environments, norms, and systems that will promote high-quality ethical decisions within their organizations. As such, the authors argue that the real task of leaders is not just to change “hearts and minds”—that is, persuasion—but to fundamentally change what people do. Wise leaders, they argue, design the organization to steer people toward better, more ethical decisions.

“We have nothing against leaders who inspire change by influencing culture, changing how others think and feel,” said Moore. But Decision Leadership offers more useful, less costly tools for prompting better decisions, he said.

Many of these tools draw on the concept of “nudges” offered by Richard H. Thaler and Cass R. Sunstein in their book Nudge: Improving Decisions About Health, Wealth, and Happiness . Nudges steer people toward better decisions rather than relying on persuasion. Moore and Bazerman gave the example of organizations that make it convenient for employees to get vaccinated against Covid-19, such as offering the vaccine at work, instead of trying to convince the skeptical of the benefits of being vaccinated.

Rather than leaving hearts and minds out of the equation, Bazerman said, he and Moore aimed to add a consideration of “strategies that will get the behavior done, even if people’s hearts and minds aren’t changed at all.” In recent decades, the tech industry and many governments have embraced the world of behavioral economics and nudges. Bazerman predicted that in the next decade, more business will make use of these tools to spur wiser decisions. In so doing, organizations will move in the direction of collective leadership and away from a more autocratic leadership style .

Experiments in Leadership and Decision-Making

During the talk, Moore, Bazerman, and Malhotra discussed several proven strategies for prompting better leadership and decision-making in organizations, including creating a culture in which employees feel empowered to speak up when they see something wrong, finding ways to encourage leaders to be more open to accepting advice, and running experiments to test the likely success of a decision rather than basing it on intuition.

Google runs thousands of experiments every year to test new ideas and initiatives, Bazerman noted, but “a lot of companies are behind the curve on thinking systematically about how to learn over time.” That’s a strategic mistake, he said: “If you have a company, and you have an idea about how to change some behavior at your 22 offices across the globe involving millions of customers, why wouldn’t you want to test a new idea on 10,000 people first so that you can find what works, tweak it, and make it better over time?”

What leadership and decision-making strategies have you found to be effective in prompting better decisions in your organization?

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2 responses to “leadership and decision-making: empowering better decisions”.

A brief and concise article which I think could be easily understood by students in the Public Administration discipline….

This is a great, circumspect article that draws attention to the bigger picture in negotiations: the broader and more diverse field of motives and the interests that drive those involved in decision-making. Also noteworthy is awareness if the ethical factor, so often neglected in business decisions and so often detrimental as a result.

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Team Building Exercises – Problem Solving and Decision Making

Fun ways to turn problems into opportunities.

By the Mind Tools Content Team

Whether there's a complex project looming or your team members just want to get better at dealing with day-to-day issues, your people can achieve much more when they solve problems and make decisions together.

By developing their problem-solving skills, you can improve their ability to get to the bottom of complex situations. And by refining their decision-making skills, you can help them work together maturely, use different thinking styles, and commit collectively to decisions.

In this article, we'll look at three team-building exercises that you can use to improve problem solving and decision making in a new or established team.

Exercises to Build Decision-Making and Problem-Solving Skills

Use the following exercises to help your team members solve problems and make decisions together more effectively.

Exercise 1: Lost at Sea*

In this activity, participants must pretend that they've been shipwrecked and are stranded in a lifeboat. Each team has a box of matches, and a number of items that they've salvaged from the sinking ship. Members must agree which items are most important for their survival.

Download and print our team-building exercises worksheet to help you with this exercise.

This activity builds problem-solving skills as team members analyze information, negotiate and cooperate with one another. It also encourages them to listen and to think about the way they make decisions.

What You'll Need

• Up to five people in each group.
• A large, private room.
• A "lost at sea" ranking chart for each team member. This should comprise six columns. The first simply lists each item (see below). The second is empty so that each team member can rank the items. The third is for group rankings. The fourth is for the "correct" rankings, which are revealed at the end of the exercise. And the fifth and sixth are for the team to enter the difference between their individual and correct score, and the team and correct rankings, respectively.
• The items to be ranked are: a mosquito net, a can of petrol, a water container, a shaving mirror, a sextant, emergency rations, a sea chart, a floating seat or cushion, a rope, some chocolate bars, a waterproof sheet, a fishing rod, shark repellent, a bottle of rum, and a VHF radio. These can be listed in the ranking chart or displayed on a whiteboard, or both.
• The experience can be made more fun by having some lost-at-sea props in the room.

Flexible, but normally between 25 and 40 minutes.

Instructions

• Divide participants into their teams, and provide everyone with a ranking sheet.
• Ask team members to take 10 minutes on their own to rank the items in order of importance. They should do this in the second column of their sheet.
• Give the teams a further 10 minutes to confer and decide on their group rankings. Once agreed, they should list them in the third column of their sheets.
• Ask each group to compare their individual rankings with their collective ones, and consider why any scores differ. Did anyone change their mind about their own rankings during the team discussions? How much were people influenced by the group conversation?
• Now read out the "correct" order, collated by the experts at the US Coast Guard (from most to least important): - Shaving mirror. (One of your most powerful tools, because you can use it to signal your location by reflecting the sun.) - Can of petrol. (Again, potentially vital for signaling as petrol floats on water and can be lit by your matches.) - Water container. (Essential for collecting water to restore your lost fluids.) -Emergency rations. (Valuable for basic food intake.) - Plastic sheet. (Could be used for shelter, or to collect rainwater.) -Chocolate bars. (A handy food supply.) - Fishing rod. (Potentially useful, but there is no guarantee that you're able to catch fish. Could also feasibly double as a tent pole.) - Rope. (Handy for tying equipment together, but not necessarily vital for survival.) - Floating seat or cushion. (Useful as a life preserver.) - Shark repellent. (Potentially important when in the water.) - Bottle of rum. (Could be useful as an antiseptic for treating injuries, but will only dehydrate you if you drink it.) - Radio. (Chances are that you're out of range of any signal, anyway.) - Sea chart. (Worthless without navigational equipment.) - Mosquito net. (Assuming that you've been shipwrecked in the Atlantic, where there are no mosquitoes, this is pretty much useless.) - Sextant. (Impractical without relevant tables or a chronometer.)

Advice for the Facilitator

The ideal scenario is for teams to arrive at a consensus decision where everyone's opinion is heard. However, that doesn't always happen naturally: assertive people tend to get the most attention. Less forthright team members can often feel intimidated and don't always speak up, particularly when their ideas are different from the popular view. Where discussions are one-sided, draw quieter people in so that everyone is involved, but explain why you're doing this, so that people learn from it.

You can use the Stepladder Technique when team discussion is unbalanced. Here, ask each team member to think about the problem individually and, one at a time, introduce new ideas to an appointed group leader – without knowing what ideas have already been discussed. After the first two people present their ideas, they discuss them together. Then the leader adds a third person, who presents his or her ideas before hearing the previous input. This cycle of presentation and discussion continues until the whole team has had a chance to voice their opinions.

After everyone has finished the exercise, invite your teams to evaluate the process to draw out their experiences. For example, ask them what the main differences between individual, team and official rankings were, and why. This will provoke discussion about how teams arrive at decisions, which will make people think about the skills they must use in future team scenarios, such as listening , negotiating and decision-making skills, as well as creativity skills for thinking "outside the box."

A common issue that arises in team decision making is groupthink . This can happen when a group places a desire for mutual harmony above a desire to reach the right decision, which prevents people from fully exploring alternative solutions.

If there are frequent unanimous decisions in any of your exercises, groupthink may be an issue. Suggest that teams investigate new ways to encourage members to discuss their views, or to share them anonymously.

Exercise 2: The Great Egg Drop*

In this classic (though sometimes messy!) game, teams must work together to build a container to protect an egg, which is dropped from a height. Before the egg drop, groups must deliver presentations on their solutions, how they arrived at them, and why they believe they will succeed.

This fun game develops problem-solving and decision-making skills. Team members have to choose the best course of action through negotiation and creative thinking.

• Ideally at least six people in each team.
• Raw eggs – one for each group, plus some reserves in case of accidents!
• Materials for creating the packaging, such as cardboard, tape, elastic bands, plastic bottles, plastic bags, straws, and scissors.
• Aprons to protect clothes, paper towels for cleaning up, and paper table cloths, if necessary.
• Somewhere – ideally outside – that you can drop the eggs from. (If there is nowhere appropriate, you could use a step ladder or equivalent.)
• Around 15 to 30 minutes to create the packages.
• Approximately 15 minutes to prepare a one-minute presentation.
• Enough time for the presentations and feedback (this will depend on the number of teams).
• Time to demonstrate the egg "flight."
• Put people into teams, and ask each to build a package that can protect an egg dropped from a specified height (say, two-and-a-half meters) with the provided materials.
• Each team must agree on a nominated speaker, or speakers, for their presentation.
• Once all teams have presented, they must drop their eggs, assess whether the eggs have survived intact, and discuss what they have learned.

When teams are making their decisions, the more good options they consider, the more effective their final decision is likely to be. Encourage your groups to look at the situation from different angles, so that they make the best decision possible. If people are struggling, get them to brainstorm – this is probably the most popular method of generating ideas within a team.

Ask the teams to explore how they arrived at their decisions, to get them thinking about how to improve this process in the future. You can ask them questions such as:

• Did the groups take a vote, or were members swayed by one dominant individual?
• How did the teams decide to divide up responsibilities? Was it based on people's expertise or experience?
• Did everyone do the job they volunteered for?
• Was there a person who assumed the role of "leader"?
• How did team members create and deliver the presentation, and was this an individual or group effort?

Exercise 3: Create Your Own*

In this exercise, teams must create their own, brand new, problem-solving activity.

This game encourages participants to think about the problem-solving process. It builds skills such as creativity, negotiation and decision making, as well as communication and time management. After the activity, teams should be better equipped to work together, and to think on their feet.

• Ideally four or five people in each team.
• Paper, pens and flip charts.

Around one hour.

• As the participants arrive, you announce that, rather than spending an hour on a problem-solving team-building activity, they must design an original one of their own.
• Divide participants into teams and tell them that they have to create a new problem-solving team-building activity that will work well in their organization. The activity must not be one that they have already participated in or heard of.
• After an hour, each team must present their new activity to everyone else, and outline its key benefits.

There are four basic steps in problem solving : defining the problem, generating solutions, evaluating and selecting solutions, and implementing solutions. Help your team to think creatively at each stage by getting them to consider a wide range of options. If ideas run dry, introduce an alternative brainstorming technique, such as brainwriting . This allows your people to develop one others' ideas, while everyone has an equal chance to contribute.

After the presentations, encourage teams to discuss the different decision-making processes they followed. You might ask them how they communicated and managed their time . Another question could be about how they kept their discussion focused. And to round up, you might ask them whether they would have changed their approach after hearing the other teams' presentations.

Successful decision making and problem solving are at the heart of all effective teams. While teams are ultimately led by their managers, the most effective ones foster these skills at all levels.

The exercises in this article show how you can encourage teams to develop their creative thinking, leadership , and communication skills , while building group cooperation and consensus.

* Original source unknown. Please let us know if you know the original source.

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The SkillsYouNeed Guide to Interpersonal Skills

Making decisions and solving problems are two key areas in life, whether you are at home or at work. Whatever you’re doing, and wherever you are, you are faced with countless decisions and problems, both small and large, every day.

Many decisions and problems are so small that we may not even notice them. Even small decisions, however, can be overwhelming to some people. They may come to a halt as they consider their dilemma and try to decide what to do.

Small and Large Decisions

In your day-to-day life you're likely to encounter numerous 'small decisions', including, for example:

Tea or coffee?

What shall I have in my sandwich? Or should I have a salad instead today?

What shall I wear today?

Larger decisions may occur less frequently but may include:

Should we repaint the kitchen? If so, what colour?

Should we relocate?

Should I propose to my partner? Do I really want to spend the rest of my life with him/her?

These decisions, and others like them, may take considerable time and effort to make.

The relationship between decision-making and problem-solving is complex. Decision-making is perhaps best thought of as a key part of problem-solving: one part of the overall process.

Our approach at Skills You Need is to set out a framework to help guide you through the decision-making process. You won’t always need to use the whole framework, or even use it at all, but you may find it useful if you are a bit ‘stuck’ and need something to help you make a difficult decision.

Decision Making

Effective Decision-Making

This page provides information about ways of making a decision, including basing it on logic or emotion (‘gut feeling’). It also explains what can stop you making an effective decision, including too much or too little information, and not really caring about the outcome.

A Decision-Making Framework

This page sets out one possible framework for decision-making.

The framework described is quite extensive, and may seem quite formal. But it is also a helpful process to run through in a briefer form, for smaller problems, as it will help you to make sure that you really do have all the information that you need.

Problem Solving

Introduction to Problem-Solving

This page provides a general introduction to the idea of problem-solving. It explores the idea of goals (things that you want to achieve) and barriers (things that may prevent you from achieving your goals), and explains the problem-solving process at a broad level.

The first stage in solving any problem is to identify it, and then break it down into its component parts. Even the biggest, most intractable-seeming problems, can become much more manageable if they are broken down into smaller parts. This page provides some advice about techniques you can use to do so.

Sometimes, the possible options to address your problem are obvious. At other times, you may need to involve others, or think more laterally to find alternatives. This page explains some principles, and some tools and techniques to help you do so.

Having generated solutions, you need to decide which one to take, which is where decision-making meets problem-solving. But once decided, there is another step: to deliver on your decision, and then see if your chosen solution works. This page helps you through this process.

‘Social’ problems are those that we encounter in everyday life, including money trouble, problems with other people, health problems and crime. These problems, like any others, are best solved using a framework to identify the problem, work out the options for addressing it, and then deciding which option to use.

This page provides more information about the key skills needed for practical problem-solving in real life.

Further Reading from Skills You Need

The Skills You Need Guide to Interpersonal Skills eBooks.

Develop your interpersonal skills with our series of eBooks. Learn about and improve your communication skills, tackle conflict resolution, mediate in difficult situations, and develop your emotional intelligence.

Guiding you through the key skills needed in life

As always at Skills You Need, our approach to these key skills is to provide practical ways to manage the process, and to develop your skills.

Neither problem-solving nor decision-making is an intrinsically difficult process and we hope you will find our pages useful in developing your skills.

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See also: Improving Communication Interpersonal Communication Skills Building Confidence

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Organizational Leadership: What It Is & Why It's Important

• 24 Jan 2023

Leadership is essential to organizations’ success, but many struggle to implement the right training. According to job search site Zippia , 83 percent of businesses believe it’s important to develop leaders at every level, but only five percent successfully do.

If you want to become an effective leader, here's an overview of what organizational leadership is, why it’s important, and how you can make an impact on your company.

Access your free e-book today.

What Is Organizational Leadership?

Leadership is the ability to implement change by creating and communicating a vision to others. Organizational leadership is the qualities and skills required to run a company or one of its divisions. It’s greater in scale and scope than many other forms of leadership.

“Scale refers to the sheer size and magnitude of what you’re leading,” says Harvard Business School Professor Anthony Mayo in the online course Organizational Leadership , “how many people; how large a budget; and how many teams, locations, and operations you oversee. Scope refers to the range and diversity of what you’re responsible for—the range and diversity of the people, teams, business lines, locations, operations, and facilities you’re leading.”

Although leadership doesn't inherently require business acumen, it’s helpful for organizational leaders to have, so they can guide their organizations, drive innovation, and manage organizational change .

Organizational leaders must consider what’s happening outside and inside their businesses. They often don’t directly interact with everyone they lead—engaging in what’s known as capital “L” leadership.

The Capital "L" in Leadership

Many senior-level leaders hold capital "L" leadership roles. According to Organizational Leadership , those leaders no longer have direct contact with everyone in their organizations and must:

• Inspire and motivate their employees
• Lead their organizations into the future
• Anticipate and respond to internal and external threats
• Pursue opportunities that range from money makers to risky bets
• Handle crises quickly and assuredly

As your duties increase as a leader—overseeing or guiding those you don’t directly supervise—it's essential to learn how to communicate effectively and execute tasks. This is particularly important when considering the differences between organizational leadership and traditional management.

Organizational Leadership vs. Traditional Management

Leadership and management differ in several ways. At an organizational level, the two are highly intertwined but have three primary differences.

• Proximity to the team: Managers work closely with the individuals they oversee, whereas organizational leaders don't always have direct contact with those they lead.
• Scale: Like leadership, management is a broad term that can be big or small in scale, whereas organizational leadership involves managing larger populations.
• Role: Managers are hired for specific roles; organizational leaders oversee managers and ensure their companies’ visions are reflected in how they guide and align teams.

What Makes Organizational Leaders Effective?

Organizational leaders bring unique qualities, competencies, and practices to their roles. In Organizational Leadership , this is called a leadership constellation .

A leadership constellation includes:

• Qualities: The aspects of who you are as a person. They contribute to how others perceive you.
• Competencies: The skills and knowledge you've developed over time that enable you to fulfill responsibilities—either by yourself or by leading others.
• Practices: The routine actions you engage in to complete tasks, guide your team and organization, and enhance your and others’ skills.

According to Organizational Leadership , you can leverage these attributes in three ways:

• Leader as beacon: Creating and communicating a vision to your organization and embodying it in your conduct (i.e., leading by example)
• Leader as architect: Ensuring your organization can follow the direction you set, and creating value using the tools and resources at your disposal
• Leader as catalyst of change: Leading organizational change by encouraging and enabling it

To be an effective leader , strive to be proficient in each.

Why Is Effective Organizational Leadership Important?

Leadership is vital in business. Organizational leaders assume an additional role because they often set the tone for the directions their companies—and sometimes even their industries—will take.

Here are four reasons why effective organizational leadership is important.

1. Motivates Team Members

Leaders play a critical role in employee engagement. According to Zippia , 69 percent of employees say they would work harder if their efforts were better recognized. This is an important statistic to consider if you struggle to retain talent or want to boost team performance .

Motivated, engaged employees can lead to higher productivity. A Gallup analysis of employee engagement data shows that highly engaged employees resulted in a 14 percent increase in productivity compared to those who were less engaged.

Leaders focus on improving team morale and their companies. Those at higher levels face the challenge of improving employees’ motivation without direct lines of contact.

According to Organizational Leadership , you can improve employee morale by:

• Hiring for leadership: If you’re involved in the recruiting process, ensure you hire effective leaders for management positions.
• Creating a positive company culture: If your company’s culture is positive and encouraging, your employees will likely be more motivated.
• Structuring effectively: For your organization to deliver value, its structures, systems, and processes must align with its people and culture.
• Openness to feedback: Even if you're not directly responsible for leading every employee, making yourself available to them can go a long way toward ensuring they feel valued.

Related: 6 Strategies for Engaging Your Employees

2. Promotes Problem-Solving and Decision-Making

Leadership requires a large degree of adaptability. Many problems require creative solutions , especially when their causes are hard to identify. As a leader, you’re responsible for helping others navigate difficult situations and making decisions that benefit your organization.

Even if you don't encounter most of your company’s daily high-level problems, you can be a role model for other employees and establish a structured approach to becoming a creative problem-solver .

3. Fosters Open Communication

Communication skills are essential for leaders. Poor communication in the workplace can lead to a host of problems , such as stress, project delays, and decreased morale.

Organizational Leadership offers four ways to foster open communication in your company, including:

• Providing information about what's going on in a way that encourages and enables employees to act
• Explaining your organization's direction in a logical manner that appeals to employees’ emotions
• Ensuring employees know how their everyday tasks connect to your organization's overarching mission
• Accomplishing tasks with individual employees and groups, virtually and in-person

Neglecting these actions can hinder your company’s success.

4. Allows Leaders to be Goal-Oriented

Organizational leaders typically set the direction for their company and enable others to follow it. According to Organizational Leadership , a good direction must be:

• Clear: An unclear direction can prevent others from supporting it. Ensure you convey your expectations so they can be met.
• Compelling: Make sure it's a direction people are willing and eager to follow.
• Concise: If others in your organization can't understand the direction, they won't follow it.

Once the path forward is clear, exciting, and accessible, it becomes much easier to set and achieve organizational goals.

Taking the First Step to Becoming an Organizational Leader

To be a successful leader, it's crucial to continuously develop your skills. Identify which leadership style resonates with you and seek opportunities to grow and adapt.

Whether you're already an organizational leader or hoping to become one, you can benefit from pursuing educational opportunities that enhance your leadership knowledge and abilities.

Ready to take the next step in your career? Consider enrolling in Organizational Leadership —one of our online leadership and management courses—to discover how to lead at scale. To learn more about what it takes to be an effective leader, download our free leadership e-book .

About the Author

Team Dynamics: Problem-Solving and Decision Making

• Teamwork and Team Leadership Table of Contents
• Fostering Communication & Promoting Cooperation
• Problem-Solving and Decision Making
• Handling Conflict
• Dealing with Power and Influence

1. Overview

• Different stages of team development call for different problem solving methods
• Problem solving requires the use of a systematic process
• The appropriate decision making method is determined by the amount of time available for the decision and the impact of the decision
• Effective decision making requires the use of smart techniques

2. Problem Solving in Team Development Stages

3. General Problem Solving Steps

• Defining the problem : phrase problem as probing questions to encourage explorative thinking; make explicit goal statement
• Establish criteria for evaluating the solution : identify characteristics of a satisfactory solution; distinguish requirements from desires
• Analyzing the problem : discover the root cause and extent of the problem
• Considering alternate solutions : brainstorm to generate many ideas before judging any of them
• Evaluate alternate solutions : use ranking-weighting matrix; check for issues/disagreement
• Deciding on a solution :  choose best answer to the problem from among all possible solutions
• Develop action plan : make team assignments with milestones(don’t underestimate time)
• Implementing the action plan : check for consistency with requirements identified in step 2
• Following up on the solution :  check up on the implementation and make necessary adjustments
• Evaluate outcomes and process :  review performance, process, and personal aspects of the solution

4. Decision Making Method Based on Time and Impact

5. Smart Decision Making is Enabled By. . .

• Modeling an open mind and asking for candid opinions
• What elements would you choose to change?
• What changes would you make to solve …?  
• Aligning rewards to team successes to ensure that individuals share what they know
• Ensuring that team members are aware of relevant roles and unique information required for team success
• Charging some team members to assume a position that opposes the team’s preference
• Creating an alternate team that attempts to find errors and weaknesses in the solution
• Using successive rounds of blind voting interspersed with discussions

6. Additional Readings

• Hartnett, T. (n.d). Consensus decision making. Retrieved from http://www.consensusdecisionmaking.org/
• UMass|Dartmouth (n.d.) 7 steps to effective decision making . Retrieved from https://www.umassd.edu/media/u massdartmouth/fycm/decision_ma king_process.pdf
• Sunstein, C.R. (2014).  Making dumb groups smarter.  Harvard Business Review, 92(12), 90-98. 
• << Previous: Fostering Communication & Promoting Cooperation
• Next: Handling Conflict >>

• Last Updated: Jan 12, 2023 10:00 AM
• URL: https://guides.himmelfarb.gwu.edu/teamdynamics

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Leading through Problem Solving and Decision Making

• 7 videos | 46m 51s
• Includes Assessment
• Earns a Badge
• Certification CPE
• Certification PMI PDU

WHAT YOU WILL LEARN

In this course.

• Playable 1.  Leading through Problem Solving and Decision Making 56s Successful leaders recognize that while they’re fully accountable for the results, it’s essential to work with their teams to get the input they need to solve problems and make decisions. In this video, you'll discover how to use a three-stage approach to engage your team in problem-solving and decision making. You'll also learn how to use your critical thinking and interpersonal skills to define problems, generate feasible solutions, and make the best decisions for your team and organization. FREE ACCESS
• Playable 2.  The Problem Solving and Decision Making Process 8m 40s In this video, you will learn how to deal with a problem effectively. You will also discover the common reactions people have when suddenly presented with a problem. FREE ACCESS
• Locked 3.  Defining the Problem 8m 31s In this video, you will learn how to define the problem. You will also discover how to develop a problem statement that addresses a single problem and describes it objectively in specific and measurable terms. FREE ACCESS
• Locked 4.  Generating Feasible Solutions 10m 1s In this video, find out how to recognize the best way to generate feasible solutions. FREE ACCESS
• Locked 5.  Choosing a Viable Solution and Making Decisions 11m 2s During this video you will learn about the key concepts for making decisions. You will also discover how to evaluate a proposed business decision. FREE ACCESS
• Locked 6.  Using Problem Solving and Decision Making Skills 6m 53s When you're in the middle of tackling a big problem, one of the things the leader has to do is de-conflict some of the political forces and priorities at work. In this video, you will learn how to syndicate risk up and out of the way. You will also discover how to reconcile those priorities so you can define the root of the problem and get to the essential truth. FREE ACCESS
• Locked 7.  Let's Review 48s In this video, you'll review the key concepts covered in this course, including how to lead teams using problem solving skills to make decisions. FREE ACCESS

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Skillsoft is providing you the opportunity to earn a digital badge upon successful completion on some of our courses, which can be shared on any social network or business platform.

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