steps in problem solving in business

* Review and document how processes currently work

*  Why do you think there's a problem (identify potential causes: who, what, why, where, how)

*  State the problem as clearly as possible

SOURCE:

Intensive manual processing due to physical handling of paperwork.

: Annual leave forms are typically filled out by the Employee, printed, sent to the Manager/Delegate for approval, sent to Human Resources for verification and data entry, scanned and uploaded to the EDRMS, and then sent to Payroll for (re) data entry.

: This highly manual scenario leads to ‘bottlenecks’ in service delivery and promotes the risk of poor organisational response to business and lost time that should be spent carrying out core business.

SOURCE: 

*  Get input from people who are affected by the problem

*  Write down opinions and observations of people affected by the problem

*  Consider all potential causes of the problem: competition, business model, market factors, team performance, etc.

*  If needed, conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)

*  Employ research tools, such as information sources, databases, surveys, and interviews for fact finding, data gathering and analysis, etc.

SOURCE: Cisco Systems, Inc. SWOT Analysis; Date:   October 26, 2020

Porter's Five Forces

• Threat of New Entrants (effectively, this is “Barriers to Entry”)
• Competitive Dynamics
• Supplier Power
• Buyer Power
• Threat of Substitutes
• Competitors
• Customers/clients
• Opportunities

SOURCE and for additional information on analysis frameworks and more, please go to: STREETOFWALLS

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What Is Problem Solving in Business?

Problem-solving in business is defined as implementing processes that reduce or remove obstacles that are preventing you or others from accomplishing operational and strategic business goals.

In business, a problem is a situation that creates a gap between the desired and actual outcomes. In addition, a true problem typically does not have an immediately obvious resolution.

Business problem-solving works best when it is approached through a consistent system in which individuals:

• Identify and define the problem
• Prioritize the problem based on size, potential impact, and urgency
• Complete a root-cause analysis
• Develop a variety of possible solutions
• Evaluate possible solutions and decide which is most effective
• Plan and implement the solution

Why Is Problem-Solving Important in Business?

Understanding the importance of problem-solving skills in the workplace will help you develop as a leader. Problem-solving skills will help you resolve critical issues and conflicts that you come across. Problem-solving is a valued skill in the workplace because it allows you to:

• Apply a standard problem-solving system to all challenges
• Find the root causes of problems
• Quickly deal with short-term business interruptions
• Form plans to deal with long-term problems and improve the organization
• See challenges as opportunities
• Keep your cool during challenges

How Do You Solve Business Problems Effectively?

There are many different problem-solving strategies, but most can be broken into general steps. Here is a six-step method for business problem solving:

1) Identify the Details of the Problem: Gather enough information to accurately define the problem. This can include data on procedures being used, employee actions, relevant workplace rules, and so on. Write down the specific outcome that is needed, but don’t assume what the solution should be.

• Use the Five Whys: When assessing a problem, a common strategy is to ask “why” five times. First, ask why the problem occurred. Then, take the answer and ask “why” again, and so on. The intention is to help you get down to the root cause of the problem so you can directly target that core issue with your solution.

2) Creatively Brainstorm Solutions:   State every solution you can think of. Write them down. Seek input from those who possess in-depth knowledge of or experience with the problem you’re trying to solve. These insights will provide you with valuable perspectives you can transform into tangible and impactful solutions.

3) Evaluate Solutions and Make a Decision:   Assess the feasibility of each solution. Is the deadline realistic? Are there readily available resources you can leverage to successfully implement the solution? What is the return on investment of each solution? If necessary, come up with alternative solutions or adjust the initial ones you brainstormed in step 2.

4) Make a Decision: Finally, make a firm decision on one solution. This final solution should clearly address the root cause of the problem.

• Perform a SWOT Analysis: You can use a SWOT analysis to help you decide on the best solution. A SWOT analysis involves identifying the strengths, weaknesses, opportunities, and threats linked to a specific decision. With this framework, your team can assess a decision from various angles, thereby gaining a holistic view of it.

5) Take Action:   Write up a detailed plan. This involves developing a comprehensive roadmap that outlines the steps required to implement your solution. The steps should specify milestones, deadlines, roles, and how to obtain the necessary approvals. To ensure accountability, your entire team should have access to this action plan. Each team member should be able to track and share their progress with the group.

6) Gather and Share Feedback: Problem-solving is not a “set it and forget it” process. It’s a dynamic journey that necessitates ongoing attention, deliberation, and refinement to achieve optimal results. Thus, periodic feedback is critical in validating whether the chosen solution creates the desired impact. It allows key stakeholders to check in and make any necessary changes.

What Are Problem-Solving Skills?

Problem-solving skills are specific procedures that can be used to complete one or more of the six general steps of problem-solving (discussed above). Here are five important examples:

Using Emotional Intelligence: You’ll solve problems more calmly when you learn to recognize your own emotional patterns and to empathize with and guide the emotions of others. Avoid knee-jerk responses and making assumptions.

Researching Problems: An effective solution requires an accurate description of the problem. Define simple problems using quick research methods such as asking, “What? Where? When? and How much?.” Difficult problems require more in-depth research, such as data exploration, surveys, and interviews.

Creative Brainstorming: When brainstorming with a group, encourage idea creation by listening attentively to everyone, and recognizing everyone’s unique contributions.

Logical Reasoning: Develop standard logical steps for analyzing possible solutions to problems. Study and apply ideas about logical fallacies, deductive reasoning, and other areas of analytical thought.

Decisiveness: Use an agreed-upon system for choosing a solution, which can include assigning pros and cons to solutions, identifying mandatory results, getting feedback about solutions, choosing the decision-maker(s), and finishing or repeating the process.

How Can You Improve Your Problem-Solving Skills?

Learning how to solve business problems takes time and effort. Though some people appear to have been born with superior problem-solving skills, great problem-solvers usually have taken the time to refine their abilities. You can develop high-level skills for solving problems too, through the following methods:

Ask and Listen: Don’t expect to solve every problem alone. Ask for advice, and listen to it carefully.

Practice Curiosity: Any time you’re involved in solving a problem, practice researching and defining the problem just a little longer than you would naturally.

Break Down Problems: Whenever possible, break large problems into their smallest units. Then, search for solutions to one unit at a time.

Don’t Label Yourself Negatively: Don’t allow a problem to mean something negative about you personally. Separate yourself from it. Look at it objectively and be part of the solution.

Enhance Your Problem-Solving Skills with CMOE

Problem-solving skills in business are not developed overnight. Developing then takes ongoing practice and the right guidance to get right. We encourage you to leverage CMOE’s Problem-Solving and Decision Making in the Workplace workshop to further develop your skills. We’ll help you identify new ways to solve problems methodically so you can create greater impact.

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Six problem-solving mindsets for very uncertain times

Great problem solvers are made, not born. That’s what we’ve found after decades of problem solving with leaders across business, nonprofit, and policy sectors. These leaders learn to adopt a particularly open and curious mindset, and adhere to a systematic process for cracking even the most inscrutable problems. They’re terrific problem solvers under any conditions. And when conditions of uncertainty are at their peak, they’re at their brilliant best.

Six mutually reinforcing approaches underly their success: (1) being ever-curious about every element of a problem; (2) being imperfectionists , with a high tolerance for ambiguity; (3) having a “dragonfly eye” view of the world, to see through multiple lenses; (4) pursuing occurrent behavior and experimenting relentlessly; (5) tapping into the collective intelligence , acknowledging that the smartest people are not in the room; and (6) practicing “show and tell” because storytelling begets action (exhibit).

Here’s how they do it.

1. Be ever-curious

As any parent knows, four-year-olds are unceasing askers. Think of the never-ending “whys” that make little children so delightful—and relentless. For the very young, everything is new and wildly uncertain. But they’re on a mission of discovery, and they’re determined to figure things out. And they’re good at it! That high-energy inquisitiveness is why we have high shelves and childproof bottles.

When you face radical uncertainty, remember your four-year-old or channel the four-year-old within you. Relentlessly ask, “Why is this so?” Unfortunately, somewhere between preschool and the boardroom, we tend to stop asking. Our brains make sense of massive numbers of data points by imposing patterns that have worked for us and other humans in the past. That’s why a simple technique, worth employing at the beginning of problem solving, is simply to pause and ask why conditions or assumptions are so until you arrive at the root of the problem. 1 This approach was originally developed by Sakichi Toyoda, the founder of Toyota.

Natural human biases in decision making, including confirmation, availability, and anchoring biases, often cause us to shut down the range of solutions too early. 2 Daniel Kahneman, Thinking, Fast and Slow , New York, NY: Farrar, Straus and Giroux, 2011. Better—and more creative—solutions come from being curious about the broader range of potential answers.

One simple suggestion from author and economist Caroline Webb to generate more curiosity in team problem solving is to put a question mark behind your initial hypotheses or first-cut answers. This small artifice is surprisingly powerful: it tends to encourage multiple solution paths and puts the focus, correctly, on assembling evidence. We also like thesis/antithesis, or red team/blue team, sessions, in which you divide a group into opposing teams that argue against the early answers—typically, more traditional conclusions that are more likely to come from a conventional pattern. Why is this solution better? Why not that one? We’ve found that better results come from embracing uncertainty. Curiosity is the engine of creativity.

We have to be comfortable with estimating probabilities to make good decisions, even when these guesses are imperfect. Unfortunately, we have truckloads of evidence showing that human beings aren’t good intuitive statisticians.

2. Tolerate ambiguity—and stay humble!

When we think of problem solvers, many of us tend to picture a poised and brilliant engineer. We may imagine a mastermind who knows what she’s doing and approaches a problem with purpose. The reality, though, is that most good problem solving has a lot of trial and error; it’s more like the apparent randomness of rugby than the precision of linear programming. We form hypotheses, porpoise into the data, and then surface and refine (or throw out) our initial guess at the answer. This above all requires an embrace of imperfection and a tolerance for ambiguity—and a gambler’s sense of probabilities.

The real world is highly uncertain. Reality unfolds as the complex product of stochastic events and human reactions. The impact of COVID-19 is but one example: we address the health and economic effects of the disease, and their complex interactions, with almost no prior knowledge. We have to be comfortable with estimating probabilities to make good decisions, even when these guesses are imperfect. Unfortunately, we have truckloads of evidence showing that human beings aren’t good intuitive statisticians. Guesses based on gut instinct can be wildly wrong. That’s why one of the keys to operating in uncertain environments is epistemic humility, which Erik Angner defines as “the realization that our knowledge is always provisional and incomplete—and that it might require revision in light of new evidence.” 3 Erik Angner, “Epistemic humility—knowing your limits in a pandemic,” Behavioral Scientist , April 13, 2020, behavioralscientist.org.

Recent research shows that we are better at solving problems when we think in terms of odds rather than certainties. 4 Annie Duke, Thinking in Terms of Bets: Making Smarter Decisions When You Don’t Have All the Facts , New York, NY: Portfolio/Penguin, 2018. For example, when the Australian research body Commonwealth Scientific and Industrial Research Organisation (CSIRO), which owned a core patent on the wireless internet protocol, sought royalties from major companies, it was initially rebuffed. The CSIRO bet that it could go to court to protect its intellectual property because it estimated that it needed only 10 percent odds of success for this to be a good wager, given the legal costs and likely payoff. It improved its odds by picking the weakest of the IP violators and selecting a legal jurisdiction that favored plaintiffs. This probabilistic thinking paid off and eventually led to settlements to CSIRO exceeding $500 million. 5 CSIRO briefing to US Government, December 5, 2006. A tolerance for ambiguity and a willingness to play the odds helped the organization feel its way to a good solution path.

To embrace imperfectionism with epistemic humility, start by challenging solutions that imply certainty. You can do that in the nicest way by asking questions such as “What would we have to believe for this to be true?” This brings to the surface implicit assumptions about probabilities and makes it easier to assess alternatives. When uncertainty is high, see if you can make small moves or acquire information at a reasonable cost to edge out into a solution set. Perfect knowledge is in short supply, particularly for complex business and societal problems. Embracing imperfection can lead to more effective problem solving. It’s practically a must in situations of high uncertainty, such as the beginning of a problem-solving process or during an emergency.

Good problem solving typically involves designing experiments to reduce key uncertainties. Each move provides additional information and builds capabilities.

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3. take a dragonfly-eye view.

Dragonfly-eye perception is common to great problem solvers. Dragonflies have large, compound eyes, with thousands of lenses and photoreceptors sensitive to different wavelengths of light. Although we don’t know exactly how their insect brains process all this visual information, by analogy they see multiple perspectives not available to humans. The idea of a dragonfly eye taking in 360 degrees of perception 6 Philip Tetlock and Dan Gardner, Superforecasting: The Art and Science of Prediction , New York, NY: Crown, 2015. is an attribute of “superforecasters”—people, often without domain expertise, who are the best at forecasting events.

Think of this as widening the aperture on a problem or viewing it through multiple lenses. The object is to see beyond the familiar tropes into which our pattern-recognizing brains want to assemble perceptions. By widening the aperture, we can identify threats or opportunities beyond the periphery of vision.

Consider the outbreak of HIV in India in the early 1990s—a major public-health threat. Ashok Alexander, director of the Bill & Melinda Gates Foundation’s India Aids Initiative, provided a brilliant example of not just vision but also dragonfly vision. Facing a complex social map with a rapidly increasing infection rate, he widened the problem’s definition, from a traditional epidemiological HIV transmission model at known “hot spots,” to one in which sex workers facing violence were made the centerpiece.

This approach led to the “Avahan solution,” which addressed a broader set of leverage points by including the sociocultural context of sex work. The solution was rolled out to more than 600 communities and eventually credited with preventing 600,000 infections. The narrow medical perspective was sensible and expected, but it didn’t tap into the related issue of violence against sex workers, which yielded a richer solution set. Often, a secret unlocks itself only when one looks at a problem from multiple perspectives, including some that initially seem orthogonal.

The secret to developing a dragonfly-eye view is to “anchor outside” rather than inside when faced with problems of uncertainty and opportunity. Take the broader ecosystem as a starting point. That will encourage you to talk with customers, suppliers, or, better yet, players in a different but related industry or space. Going through the customer journey with design-thinking in mind is another powerful way to get a 360-degree view of a problem. But take note: when decision makers face highly constrained time frames or resources, they may have to narrow the aperture and deliver a tight, conventional answer.

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4. pursue occurrent behavior.

Occurrent behavior is what actually happens in a time and place, not what was potential or predicted behavior. Complex problems don’t give up their secrets easily. But that shouldn’t deter problem solvers from exploring whether evidence on the facets of a solution can be observed, or running experiments to test hypotheses. You can think of this approach as creating data rather than just looking for what has been collected already. It’s critical for new market entry—or new market creation. It also comes in handy should you find that crunching old data is leading to stale solutions.

Most of the problem-solving teams we are involved with have twin dilemmas of uncertainty and complexity, at times combined as truly “wicked problems.” 7 A term coined in a now famous 1973 article: Horst W. J. Rittel and Melvin Webber, “Dilemmas in a general theory of planning,” Policy Sciences , 1973, Number 4, pp. 155–69. For companies ambitious to win in the great unknown in an emerging segment—such as electric cars or autonomous vehicles, where the market isn’t fully established—good problem solving typically involves designing experiments to reduce key uncertainties, not just relying on existing data. Each move (such as buying IP or acquiring a component supplier) and each experiment (including on-road closed tests) not only provides additional information to make decisions but also builds capabilities and assets that support further steps. Over time, their experiments, including alliances and acquisitions, come to resemble staircases that lead to either the goal or to abandonment of the goal. Problem-solving organizations can “bootstrap” themselves into highly uncertain new spaces, building information, foundational assets, and confidence as they take steps forward.

Risk-embracing problem solvers find a solution path by constantly experimenting. Statisticians use the abbreviation EVPI—the expected value of perfect information—to show the value of gaining additional information that typically comes from samples and experiments, such as responses to price changes in particular markets. A/B testing is a powerful tool for experimenting with prices, promotions, and other features and is particularly useful for digital marketplaces and consumer goods. Online marketplaces make A/B testing easy. Yet most conventional markets also offer opportunities to mimic the market’s segmentation and use it to test different approaches.

The mindset required to be a restless experimenter is consistent with the notion in start-ups of “failing fast.” It means that you get product and customer affirmation or rejection quickly through beta tests and trial offerings. Don’t take a lack of external data as an impediment—it may actually be a gift, since purchasable data is almost always from a conventional way of meeting needs, and is available to your competitors too. Your own experiments allow you to generate your own data; this gives you insights that others don’t have. If it is difficult (or unethical) to experiment, look for the “natural experiments” provided by different policies in similar locations. An example would be to compare outcomes in twin cities, such as Minneapolis–St. Paul.

It’s a mistake to think that your team has the smartest people in the room. They aren’t there. They’re invariably somewhere else. Nor do they need to be there if you can access their intelligence via other means.

5. Tap into collective intelligence and the wisdom of the crowd

Chris Bradley, a coauthor of Strategy Beyond the Hockey Stick , 8 Chris Bradley, Marin Hirt, and Sven Smit, Strategy Beyond the Hockey Stick: People, Probabilities, and Big Moves to Beat the Odds , Hoboken, NJ: Wiley, 2018. observed that “it’s a mistake to think that on your team you have the smartest people in the room. They aren’t there. They’re invariably somewhere else.” 9 For more from Chris Bradley, in a conversation with Rob McLean, see “ Want better strategies? Become a bulletproof problem solver ,” August 2019. Nor do they need to be there if you can access their intelligence via other means. In an ever-changing world where conditions can evolve unpredictably, crowdsourcing invites the smartest people in the world to work with you. For example, in seeking a machine-learning algorithm to identify fish catch species and quantities on fishing boats, the Nature Conservancy (TNC) turned to Kaggle and offered a $150,000 prize for the best algorithm. This offer attracted 2,293 teams from all over the world. TNC now uses the winning algorithm to identify fish types and sizes caught on fishing boats in Asia to protect endangered Pacific tuna and other species.

Crowdsourced problem solving is familiar in another guise: benchmarking. When Sir Rod Carnegie was CEO of Conzinc Riotinto Australia (CRA), he was concerned about the costs of unscheduled downtime with heavy trucks, particularly those requiring tire changes. He asked his management team who was best in the world at changing tires; their answer was Formula One, the auto racing competition. A team traveled to the United Kingdom to learn best practice for tire changes in racetrack pits and then implemented what it learned thousands of miles away, in the Pilbara region of Western Australia. The smartest team for this problem wasn’t in the mining industry at all.

Of course, while crowdsourcing can be useful when conventional thinking yields solutions that are too expensive or incomplete for the challenge at hand, it has its limitations. Good crowdsourcing takes time to set up, can be expensive, and may signal to your competitors what you are up to. Beware of hidden costs, such as inadvertently divulging information and having to sieve through huge volumes of irrelevant, inferior suggestions to find the rare gem of a solution.

Accept that it’s OK to draw on diverse experiences and expertise other than your own. Start with brainstorming sessions that engage people from outside your team. Try broader crowdsourcing competitions to generate ideas. Or bring in deep-learning talent to see what insights exist in your data that conventional approaches haven’t brought to light. The broader the circles of information you access, the more likely it is that your solutions will be novel and creative.

Rookie problem solvers show you their analytic process and math to convince you they are clever. Seasoned problem solvers show you differently.

6. Show and tell to drive action

We started our list of mindsets with a reference to children, and we return to children now, with “show and tell.” As you no doubt remember—back when you were more curious!—show and tell is an elementary-school activity. It’s not usually associated with problem solving, but it probably piqued your interest. In fact, this approach is critical to problem solving. Show and tell is how you connect your audience with the problem and then use combinations of logic and persuasion to get action.

The show-and-tell mindset aims to bring decision makers into a problem-solving domain you have created. A team from the Nature Conservancy, for instance, was presenting a proposal asking a philanthropic foundation to support the restoration of oyster reefs. Before the presentation, the team brought 17 plastic buckets of water into the boardroom and placed them around the perimeter. When the foundation’s staff members entered the room, they immediately wanted to know what the buckets were for. The team explained that oyster-reef restoration massively improves water quality because each oyster filters 17 buckets of water per day. Fish stocks improve, and oysters can also be harvested to help make the economics work. The decision makers were brought into the problem-solving domain through show and tell. They approved the funding requested and loved the physical dimension of the problem they were part of solving.

Rookie problem solvers show you their analytic process and mathematics to convince you that they are clever. That’s sometimes called APK, the anxious parade of knowledge. But seasoned problem solvers show you differently. The most elegant problem solving is that which makes the solution obvious. The late economist Herb Simon put it this way: “Solving a problem simply means representing it so as to make the solution transparent.” 10 Herbert Simon, The Sciences of the Artificial , Cambridge, MA: MIT Press, 1969.

To get better at show and tell, start by being clear about the action that should flow from your problem solving and findings: the governing idea for change. Then find a way to present your logic visually so that the path to answers can be debated and embraced. Present the argument emotionally as well as logically, and show why the preferred action offers an attractive balance between risks and rewards. But don’t stop there. Spell out the risks of inaction, which often have a higher cost than imperfect actions have.

The mindsets of great problem solvers are just as important as the methods they employ. A mindset that encourages curiosity, embraces imperfection, rewards a dragonfly-eye view of the problem, creates new data from experiments and collective intelligence, and drives action through compelling show-and-tell storytelling creates radical new possibilities under high levels of unpredictability. Of course, these approaches can be helpful in a broad range of circumstances, but in times of massive uncertainty, they are essential.

Charles Conn is an alumnus of McKinsey’s Sydney office and is a board member of Patagonia and former CEO of the Rhodes Trust. Robert McLean is an alumnus of the Sydney office and is the advisory-board chair of the Nature Conservancy Australia. They are the authors of Bulletproof Problem Solving: The One Skill That Changes Everything (Wiley, 2018).

This article was edited by David Schwartz, an executive editor in the Tel Aviv office.

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Effective Problem-Solving Techniques in Business

Problem solving is an increasingly important soft skill for those in business. The Future of Jobs Survey by the World Economic Forum drives this point home. According to this report, complex problem solving is identified as one of the top 15 skills that will be sought by employers in 2025, along with other soft skills such as analytical thinking, creativity and leadership.

Dr. Amy David , clinical associate professor of management for supply chain and operations management, spoke about business problem-solving methods and how the Purdue University Online MBA program prepares students to be business decision-makers.

Why Are Problem-Solving Skills Essential in Leadership Roles?

Every business will face challenges at some point. Those that are successful will have people in place who can identify and solve problems before the damage is done.

“The business world is constantly changing, and companies need to be able to adapt well in order to produce good results and meet the needs of their customers,” David says. “They also need to keep in mind the triple bottom line of ‘people, profit and planet.’ And these priorities are constantly evolving.”

To that end, David says people in management or leadership need to be able to handle new situations, something that may be outside the scope of their everyday work.

“The name of the game these days is change—and the speed of change—and that means solving new problems on a daily basis,” she says.

The pace of information and technology has also empowered the customer in a new way that provides challenges—or opportunities—for businesses to respond.

“Our customers have a lot more information and a lot more power,” she says. “If you think about somebody having an unhappy experience and tweeting about it, that’s very different from maybe 15 years ago. Back then, if you had a bad experience with a product, you might grumble about it to one or two people.”

David says that this reality changes how quickly organizations need to react and respond to their customers. And taking prompt and decisive action requires solid problem-solving skills.

What Are Some of the Most Effective Problem-Solving Methods?

David says there are a few things to consider when encountering a challenge in business.

“When faced with a problem, are we talking about something that is broad and affects a lot of people? Or is it something that affects a select few? Depending on the issue and situation, you’ll need to use different types of problem-solving strategies,” she says.

Using Techniques

There are a number of techniques that businesses use to problem solve. These can include:

• Five Whys : This approach is helpful when the problem at hand is clear but the underlying causes are less so. By asking “Why?” five times, the final answer should get at the potential root of the problem and perhaps yield a solution.
• Gap Analysis : Companies use gap analyses to compare current performance with expected or desired performance, which will help a company determine how to use its resources differently or adjust expectations.
• Gemba Walk : The name, which is derived from a Japanese word meaning “the real place,” refers to a commonly used technique that allows managers to see what works (and what doesn’t) from the ground up. This is an opportunity for managers to focus on the fundamental elements of the process, identify where the value stream is and determine areas that could use improvement.
• Porter’s Five Forces : Developed by Harvard Business School professor Michael E. Porter, applying the Five Forces is a way for companies to identify competitors for their business or services, and determine how the organization can adjust to stay ahead of the game.
• Six Thinking Hats : In his book of the same name, Dr. Edward de Bono details this method that encourages parallel thinking and attempting to solve a problem by trying on different “thinking hats.” Each color hat signifies a different approach that can be utilized in the problem-solving process, ranging from logic to feelings to creativity and beyond. This method allows organizations to view problems from different angles and perspectives.
• SWOT Analysis : This common strategic planning and management tool helps businesses identify strengths, weaknesses, opportunities and threats (SWOT).

“We have a lot of these different tools,” David says. “Which one to use when is going to be dependent on the problem itself, the level of the stakeholders, the number of different stakeholder groups and so on.”

Each of the techniques outlined above uses the same core steps of problem solving:

• Identify and define the problem
• Consider possible solutions
• Evaluate options
• Choose the best solution
• Implement the solution
• Evaluate the outcome

Data drives a lot of daily decisions in business and beyond. Analytics have also been deployed to problem solve.

“We have specific classes around storytelling with data and how you convince your audience to understand what the data is,” David says. “Your audience has to trust the data, and only then can you use it for real decision-making.”

Data can be a powerful tool for identifying larger trends and making informed decisions when it’s clearly understood and communicated. It’s also vital for performance monitoring and optimization.

How Is Problem Solving Prioritized in Purdue’s Online MBA?

The courses in the Purdue Online MBA program teach problem-solving methods to students, keeping them up to date with the latest techniques and allowing them to apply their knowledge to business-related scenarios.

“I can give you a model or a tool, but most of the time, a real-world situation is going to be a lot messier and more valuable than what we’ve seen in a textbook,” David says. “Asking students to take what they know and apply it to a case where there’s not one single correct answer is a big part of the learning experience.”

Make Your Own Decision to Further Your Career

An online MBA from Purdue University can help advance your career by teaching you problem-solving skills, decision-making strategies and more. Reach out today to learn more about earning an online MBA with Purdue University .

If you would like to receive more information about pursuing a business master’s at the Mitchell E. Daniels, Jr. School of Business, please fill out the form and a program specialist will be in touch!

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From Crisis to Solution: 10 Steps to Effective Problem-Solving

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Whether you’re having a friendly debate about the best travel destination, struggling with online communication , or dealing with a complicated issue involving numerous departments and businesses, effective problem-solving requires a clear perspective and a rational action plan.

No matter your purpose, think of the following guide like a GPS, regularly updated to lead you to your destination. While the article concentrates on problem-solving in a business rather than persuading friends, you'll find these effective problem-solving techniques helpful in many other areas.

You’ll learn how to develop a clear perspective, generate effective solutions, evaluate options, and, ultimately, select the best course of action to solve problems. You can customize the steps to fit your unique situation and needs. Let's dive into the ten problem-solving steps to resolve the crisis and achieve your goals.

Ten steps to put out the fire, or problem-solving process

1. identify the problem.

In business and customer service, define the problem to ensure it is well-understood and addressed correctly. It's an absolute must among effective problem solvers, in unusual situations and in the most common customer service problems .

Gathering information from multiple sources and using problem-solving tools such as flowcharts or cause-and-effect diagrams can help identify the underlying causes of the problem. This will result in saving time and resources and improving the outcomes.

Identifying difficulties is among the most desirable problem-solving skills, especially in corporate structures with complex hierarchies and dependencies.

2. Understand the problem

The next step is to understand the underlying reasons for the problem. To do that, you need to gather relevant information and analyze it effectively. Avoiding these reasons or addressing them incorrectly is a surefire way to experience recurring issues and increased dissatisfaction. 

By understanding the reasons, you can develop long-term solutions that improve customer satisfaction and lead to overall success. Understanding and finding the cause is undoubtedly one of the underrated problem-solving skills.

3. Identify potential solutions

One of the most crucial aspects is identifying potential and practical solutions. How can you explore different options to come up with the best?

Brainstorming techniques can help generate creative and innovative business and customer service solutions. For example, a company may use brainstorming sessions to develop new product ideas or marketing strategies.

Customer service teams can also use brainstorming techniques to solve common customer complaints, such as long wait times or difficult-to-use interfaces. If you are looking for improvements, especially in this area, you will undoubtedly be interested in essential customer service skills .

Let's assume that you want to use proven brainstorming techniques.

Brainstorming techniques to consider 

• Mind mapping: A visual brainstorming technique that involves mapping out ideas and connecting them to related concepts. This technique helps individuals and teams explore all possible options and consider different perspectives to develop unique solutions.
• Reverse brainstorming: A technique that involves thinking of solutions that would make the problem worse instead of better. This technique helps individuals and teams identify potential obstacles and develop strategies to avoid them.
• SWOT analysis: A structured brainstorming technique that analyzes an organization's strengths, weaknesses, opportunities, and threats. This technique helps individuals and teams identify areas for improvement and develop strategies to capitalize on opportunities and minimize hazards.
• Random word association: A technique that involves brainstorming ideas by randomly associating words with the problem. This technique helps individuals and teams break their usual thinking patterns and generate new and creative ideas.
• Role-playing: A technique that involves acting out different scenarios and perspectives related to the problem. This technique helps individuals and teams better understand the problem and develop empathy for the customer or stakeholders involved.

Unconventional techniques to consider

• SCAMPER (Substitute, Combine, Adapt, Modify, Put to another use, Eliminate, and Reverse) - This technique encourages people to think outside the box and consider unconventional ways to approach a problem.
• Design thinking - This problem-solving approach puts the customer's needs and experiences at the forefront. It involves empathizing with the customer, defining the problem, ideating potential solutions, prototyping, and testing to refine the solution.
• Lateral thinking - This problem-solving technique encourages people to approach problems from different angles and perspectives. It involves breaking down assumptions and challenging traditional thinking methods to arrive at unexpected solutions.

Consider all possible options, including unconventional ones, to find problem-solving techniques that address the current problem and prevent similar issues in the future.

4. Evaluate potential solutions

Once you have identified potential solutions, focus on the most feasible, impactful, and effective option. How do you sift through them?

Evaluating potential solutions involves analyzing the advantages and disadvantages of each option, considering the resources required, and assessing the potential impact on the organization or customers.

What are the most popular ways? Techniques such as cost-benefit analysis, risk analysis, and decision matrix can effectively help evaluate possible solutions.

5. Select the best solution

Techniques for selecting the best solution involve revisiting the evaluation criteria, weighing the advantages and disadvantages of each option, and selecting the option that best meets the requirements.

Additionally, you can seek customer feedback. Stakeholders can provide valuable insights into choosing the best solution to solve problems.

By choosing the best solution that aligns with the organization's goals, meets the customers' needs, and can be implemented using the available resources, you can address problems effectively and efficiently, leading to improved outcomes.

This translates into achieving organizational goals, meeting customer needs, enhancing customer satisfaction, increasing productivity, reducing costs, improving efficiency, effective communication, and more. 

6. Develop an action plan

Techniques for developing an action plan involve breaking down the solution into manageable tasks, setting clear timelines, assigning responsibilities, and identifying the resources required for implementation. Also, involve stakeholders in the action plan's development to get their support for the solution's success.

7. Implement the solution

After developing a detailed action plan, communicate it clearly and implement the solution effectively. This is likely one of the most desirable problem-solving skills.

To do so, allocate resources, assign responsibilities, and ensure all stakeholders understand their roles. Additionally, monitoring progress and addressing any issues that appear during the implementation can ensure the solution is implemented successfully.

8. Monitor and evaluate progress

Collecting and analyzing data is vital to assess the solution's effectiveness and determine if any adjustments are needed. This process involves regularly tracking key performance indicators and using customer and stakeholder feedback.

The latter offers valuable insights that help pinpoint opportunities for enhancement and make informed decisions.

By monitoring progress and evaluating results, individuals and organizations can ensure the implemented solution is efficient and sustainable over the long term.

This step also provides an opportunity to learn from experience and adjust as needed to achieve continuous improvement.

9. Learn from experience

The knowledge gathered throughout the process is key to learning from mistakes. It's also vital to reflect on the problem-solving process and identify what worked well and could be improved.

By analyzing the process, identifying areas for improvement, and implementing changes, you ensure that future problem-solving efforts are more effective.

Documenting the problem-solving process can also provide a reference for future efforts that individuals and organizations will face.

10. Standardize and sustain

If you've already collected the champagne corks and are sweeping up the last bits of confetti, it's worth remembering one last step.

To ensure that the problem does not reoccur and that the solution becomes standard practice for the organization, establish a standardized approach and maintain it over the long term.

The organization should document a working solution and create a standard operating procedure (SOP) outlining the necessary steps to establish the action key.

By doing so, every organization member will have a clear understanding of the required steps and how to execute them.

To sustain the solution, the organization should continue to monitor progress and evaluate results over time. This helps identify potential issues or areas for improvement and ensures that the solution remains effective over the long term.

In the ideal scenario, the organization should also provide ongoing training and support to ensure everyone is well-equipped with the problem-solving skills and knowledge to implement "the cure."

Practical problem-solving is an ongoing continuous improvement process, and remember that the problem may reoccur in the future.

Don’t strive for the perfect solution from the start, and embrace the issues that come along the way since they provide valuable learning opportunities.

Instead, maintain an attitude of perseverance and focus on finding solutions to new challenges as they arise, which can help you save time and reduce stress.

By adopting this mindset, you'll be better equipped to tackle any problem that comes your way. Good luck with your problem-solving endeavors!

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9 Keys to Solving Problems in Business Quickly and Effectively

Problem-solving in business takes self-discipline and focus, but is a skill that must be learned..

Creating a new business , or working in an existing one, is all about problem solving. Some people are good at it and some are not -  independent of their IQ  or their book smarts (there may even be an inverse relationship here). Yet I'm convinced that problem-solving is a  learnable trait , rather than just a birthright.

Business owners who are great problem solvers within any business are the best prepared to solve their customers' needs effectively as well. In fact, every business is about solutions to customer problems - no problems, no business. Problems are an everyday part of every business and personal environment.

Thus it behooves all of us to work on mastering the discipline of problem solving. Here is a formula from Brian Tracy, in his classic book No Excuses! The Power of Self-Discipline  that I believe will help business professionals move up a notch in this category:

1. Take the time to define the problem clearly. 

Many business leaders like to jump into solution mode immediately, even before they understand the issue. In some cases, a small problem can become a big one if you attack it with inappropriate actions. In all cases, real clarity will expedite the path ahead. 

2. Pursue alternate paths on "facts of life" and opportunities. 

Remember, there are some things that you can do nothing about. They're not problems; they are merely facts of life, like natural disasters. Often, what appears to be a problem is actually an opportunity in disguise. 

3. Challenge the definition from all angles. 

Beware of any problem for which there is only one definition. The more ways you can define a problem, the more likely it is that you will find the best solution. For example, "sales are too low" may mean strong competitors, ineffective advertising, or a poor sales process. 

4. Iteratively question the cause of the problem. 

This is all about finding the root cause, rather than treating a symptom. If you don't get to the root, the problem will likely recur, perhaps with different symptoms. Don't waste time re-solving the same problem. 

5. Identify multiple possible solutions. 

The more possible solutions you develop, the more likely you will come up with the right one. The quality of the solution seems to be in direct proportion to the quantity of solutions considered in problem-solving. 

6. Prioritize potential solutions. 

An acceptable solution, doable now, is usually superior to an excellent solution with higher complexity, longer timeframe, and higher cost. There is a rule that says that every large problem was once a small problem that could have been solved easily at that time. 

7. Make a decision. 

Select a solution, any solution, and then decide on a course of action. The longer you put off deciding on what to do, the higher the cost, and the larger the impact. Your objective should be to deal with 80 percent of all problems immediately. At the very least, set a specific deadline for making a decision and stick to it. 

8. Assign responsibility. 

Who exactly is going to carry out the solution or the different elements of the solution? Otherwise, nothing will happen, and you have no recourse but to implement all solutions yourself. 

9. Set a measure for the solution. 

Otherwise, you will have no way of knowing when and whether the problem was solved. Problem solutions in a complex system often have unintended side effects which can be worse than the original problem. 

People who are good at problem-solving are some of the most valuable and respected people in every area. In fact, success is often defined as the ability to solve problems. In many cultures, this is called street smarts , and it's valued even more than book smarts. The best business professionals have both.

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The 5 Steps in Problem Analysis

One technique that is extremely useful to gain a better understanding of the problems before determining a solution is problem analysis .

Problem analysis is the process of understanding real-world problems and user’s needs and proposing solutions to meet those needs. The goal of problem analysis is to gain a better understanding of the problem being solved before developing a solution.

There are five useful steps that can be taken to gain a better understanding of the problem before developing a solution.

• Gain agreement on the problem definition
• Understand the root-causes – the problem behind the problem
• Identify the stakeholders and the users
• Define the solution boundary
• Identify the constraints to be imposed on the solution

Table of Contents

Gain agreement on the problem definition.

The first step is to gain agreement on the definition of the problem to be solved. One of the simplest ways to gain agreement is to simply write the problem down and see whether everyone agrees.

Business Problem Statement Template

A helpful and standardised format to write the problem definition is as follows:

• The problem of – Describe the problem
• Affects – Identify stakeholders affected by the problem
• The results of which – Describe the impact of this problem on stakeholders and business activity
• Benefits of – Indicate the proposed solution and list a few key benefits

Example Business Problem Statement

There are many problems statement examples that can be found in different business domains and during the discovery when the business analyst is conducting analysis. An example business problem statement is as follows:

The problem of  having to manually maintain an accurate single source of truth for finance product data across the business, affects the finance department. The results of which has the impact of not having to have duplicate data, having to do workarounds and difficulty of maintaining finance product data across the business and key channels. A successful solution would  have the benefit of providing a single source of truth for finance product data that can be used across the business and channels and provide an audit trail of changes, stewardship and maintain data standards and best practices.

Understand the Root Causes Problem Behind the Problem

You can use a variety of techniques to gain an understanding of the real problem and its real causes. One such popular technique is root cause analysis, which is a systematic way of uncovering the root or underlying cause of an identified problem or a symptom of a problem.

Root cause analysis helps prevents the development of solutions that are focussed on symptoms alone .

To help identify the root cause, or the problem behind the problem, ask the people directly involved.

The primary goal of the technique is to determine the root cause of a defect or problem by repeating the question “Why?” . Each answer forms the basis of the next question. The “five” in the name derives from an anecdotal observation on the number of iterations needed to resolve the problem .

Identify the Stakeholders and the Users

Effectively solving any complex problem typically involves satisfying the needs of a diverse group of stakeholders. Stakeholders typically have varying perspectives on the problem and various needs that must be addressed by the solution. So, involving stakeholders will help you to determine the root causes to problems.

Define the Solution Boundary

Once the problem statement is agreed to and the users and stakeholders are identified, we can turn our attention of defining a solution that can be deployed to address the problem.

Identify the Constraints  Imposed on Solution

We must consider the constraints that will be imposed on the solution. Each constraint has the potential to severely restrict our ability to deliver a solution as we envision it.

Some example solution constraints and considerations could be:-

• Economic – what financial or budgetary constraints are applicable?
• Environmental – are there environmental or regulatory constraints?
• Technical  – are we restricted in our choice of technologies?
• Political – are there internal or external political issues that affect potential solutions?

Conclusion – Problem Analysis

Try the five useful steps for problem solving when your next trying to gain a better understanding of the problem domain on your business analysis project or need to do problem analysis in software engineering.

The problem statement format can be used in businesses and across industries. 

Jerry Nicholas

Jerry continues to maintain the site to help aspiring and junior business analysts and taps into the network of experienced professionals to accelerate the professional development of all business analysts. He is a Principal Business Analyst who has over twenty years experience gained in a range of client sizes and sectors including investment banking, retail banking, retail, telecoms and public sector. Jerry has mentored and coached business analyst throughout his career. He is a member of British Computer Society (MBCS), International Institute of Business Analysis (IIBA), Business Agility Institute, Project Management Institute (PMI), Disciplined Agile Consortium and Business Architecture Guild. He has contributed and is acknowledged in the book: Choose Your WoW - A Disciplined Agile Delivery Handbook for Optimising Your Way of Working (WoW).

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4 Steps for Business Problem Solving to Get Results

“What are we supposed to do here?” is a question I use to gauge a team’s thinking as we tackle problems together.

It is important to remember that problem-solving is a skill that can be applied to various situations in life, including those we encounter in business. Sometimes, we may experience a never-ending and frustrating challenge, with one obstacle after another. In such cases, revisiting the steps to problem-solving can be helpful, as they provide a valuable framework to approach the problem. 

Following four simple steps can strengthen our problem-solving skills and become more effective at overcoming obstacles and achieving success.

But wait a moment. How do we determine if the perceived “problem” is a problem?

Maybe it’s not the root cause but rather a symptom, and ironing that out creates a cycle of other similar situations endlessly popping up. Solving the same thing(s) repeatedly indicates that these are symptoms.  Focus is required to find the real problem  and determine if you want to be committed to a practical solution that will stick.

Options always exist to solve a symptom or a recurring issue that has a process in place for resolution.

We can keep using resources and energy to solve the persistent problem or improve practices to use fewer resources and energy. There is another option, too: take time to find and fix the more profound problem (I call that a root cause).

Solving a root cause takes more up-front commitment, creates more time, frees up resources to explore other initiatives, and saves money over time. When we prioritize problems through the lens of our one-year comprehensive strategy AND the company mission, we choose what to work on that supports keeping all work on track (i.e., time and budget).

Fortunately, practical methods are available to help you break free from any difficult situation. Whether it’s a common or complex issue, you can rely on proven methods that guarantee results. Don’t waste time on fancy and complicated solutions; choose straightforward and effective problem-solving methods that will help you easily overcome any obstacle.

There’s no trick or gimmick to the steps. There is work. We do have to bring the will, the drive, and the commitment to become proficient at problem-solving, a skill that needs improvement at all levels of business today.

To lead by example, add value to the company and the team, and meet goals, one must have a specific mindset—a Curiosity Mindset.

• A Curiosity Mindset involves being open.
• A willingness to seek out information from people and sources.
• To include unusual or different sources and opinions.
• The ability to sift information for reliability.
• The capacity to connect seemingly unrelated information to find THE custom solution for your problem.

Have you ever heard the colloquialism “can’t see the forest for the trees”? This common pitfall diminishes a Curiosity Mindset and detracts from the problem-solving process.

Achieving success requires more than just completing daily tasks. It’s crucial to take time to review our business goals and reach beyond our usual routines to truly solve any problem. Unforeseen problems may arise, but we can choose to keep moving forward and not let them bring us to a standstill. By practicing new skills and expanding our abilities, we can turn challenges into second nature and add to our natural gifts.

Embracing change and taking on something new takes courage, but it’s the only way to grow and succeed. We can overcome any obstacle and achieve our goals with perseverance and determination.

Take these steps the next time you have a significant outcome and a problem standing in your way. Your commitment and responsibility will make it happen.

With a Curiosity Mindset, we commit to being open to answers and information beyond the core group. This requires a definitive process applicable to a single problem and any that occurs in business. (Of course, there will always be difficulties that crop up. Such is life!)

The 4 Steps to Problem-Solving in Business:

• Recognize there is a problem
• Collect data
• Gather solutions
• Choose a solution

These are the steps, whether looking at long-term objectives three to five years out or solving a problem that can better support how people do work in your company. It seems simple, and you may know this to be true, yet do you really do the work of each step to know you are doing the right work right now?

Let’s look at each step to assess whether you are overlooking something or trying to find a shortcut that may be creating more resistance or slowing you down: 

1. Recognize there’s a problem

You can decide something needs doing, yet, getting it done means taking action. What you prioritize is what you value.

Not only do you need to decide whether change will make a positive difference, your commitment to doing the work to take action on the best solution matters too. Problems may be identified that when solved:

• Improve efficiency to create more time to do important work
• Increase profitability by streamlining or are no longer necessary
• Increase relevance as markets and customer needs shift
• Align the deliverables more to the mission bringing your teams together

How do you take action to determine if the problem is a one worth solving? Schedule time for a  Present Retreat™ with 10 questions to create accountability  that focuses on reflection, assessment, and prioritization for what’s happening in your business right now. Even if you only do this one time, it will give you a different perspective.

2. Understand what data is necessary

How do you get data for consideration, and how do you obtain uncommon data? 

• Standard: search on the internet, financials, and forecasts, competing products.
• Uncommon: ask the people closest to the problem, listen for what customers are seeking, looking at a problem to solve in relationship to how it aligns to your mission and goals.

Are you constantly using the same internal reports? If so, do other people have the same problem, and what have they done about it? Get out of your data and collect someone else’s reports and data.

You could take advantage of your business overview and plan to make informed decisions. A  detailed explanation of the two pillars of business success  is available if you need more information. Sometimes, when we encounter a promising solution or opportunity, we might end up trying to solve problems that do not require solving. To avoid this, we must ensure that any solution we consider aligns with our business overview and growth strategy. This way, we can identify which problems do not need solving by simply looking at the data.

3. Gather solutions

Now you have the problems that — when prioritized — will reach a new outcome. And there is data that reinforces it is a problem worth solving with a commitment to prioritize making the change. These are the basic constraints to find the most impactful solutions.

• Possible solutions now have the following requirements:
• Solve the problem.
• Align to current business goals.
• Create momentum for long term (three to five year) objectives.
• Elevate what we are already doing to be better, what we are best at in the world.

In the companies I have worked with, this is the step where the most failure occurs. Without constraints there are too many solutions, brand-new ideas (that sort of solve the initially identified problem), and more work is created out of the excitement that comes with open-ended possibilities.

Solutions that fit just these four constraints align to doing the right work and being able to do as much work as possible. Anything that doesn’t pass these requirements isn’t a viable solution.

Letting problems that don’t matter to the business’ purpose and goals is freeing. There is more time and energy to explore solutions that can make a difference. You still may fail and yes it is important to fail fast; however, iterating where the chance of failure is significantly higher is a waste of time and not worth the potential loss of confidence. 

4. Choose a solution and take action

Which one makes the most sense and presents the greatest opportunity to address everything about the problem? Get it implemented and observe the results.

Don’t forget: decisions without action keep you exactly where you are. Even if just the first step of the solution is designed and communicated, and the actions are assigned for completion — this will get things moving. Each subsequent action to move toward a completed solution will adjust for the feedback, data, and new information that comes from learning as you go.

There will be mistakes and setbacks, and that is part of the process. Here are top tips I received when I asked a group of business owners to share how they  bounce back and keep going .

Sometimes, repetition of these steps is necessary to find a working solution.

In business, reaching your end goal is great, can be messy and takes time. Sometimes, you need more data, new information comes up, or a different solution works better. We iterate and build on what we know. To improve problem-solving skills, follow these steps daily for 30 days, even for simple problems. Build a Curiosity Mindset and a new skill simultaneously.

***********************************************************************************

Jess Dewell is a professional who has been navigating the intersection of operations and strategy for more than twenty years. She helps organizations move forward by identifying the sweet spot where strategy catalyzes operations, fosters innovation, and drives businesses to the forefront of their industries.

Jess is committed to helping businesses turn challenges into scalable opportunities and constraints into springboards for growth. Contact her for a complimentary call, or find her on LinkedIn and Twitter . Check out her Driving Solutions Strategic Intensive program if you need help with strategic growth challenges.

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How to improve problem-solving skills in your business

Problem-solving expert, Nathan Crilly, Professor of Design at the Department of Engineering, University of Cambridge, and Academic Lead of the Cambridge Advance Online course on Creativity, Problem Solving and Design Thinking .

Challenges are inevitable, especially in the fast-paced world of business – it’s how we tackle them that makes all the difference. Problem-solving is absolutely critical for business success, helping teams face challenges head-on and turn them into golden opportunities. By honing this skill, businesses can boost their strategic thinking, decision-making and overall edge in the market. Effective problem-solving can also make for a happier workplace, encouraging teamwork and keeping employees motivated, which in turn helps with staff retention.

With employers predicting that 44% of workers will have their skills disrupted over the next five years, there is a strong demand for cognitive skills related to problem-solving and it is projected to grow further. The World Economic Forum’s 2023 Future of Jobs Report (Opens in a new window) highlights that analytical and creative thinking are the most important skills for workers. As AI continues to reshape the world of business, employees who are able to think creatively and identify and tackle challenging problems are more invaluable than ever. This applies across a wide range of industries in both private and public sectors.

In this article, we ask Nathan Crilly (Opens in a new window) , Professor of Design in the Department of Engineering at the University of Cambridge and Academic Lead of the Cambridge Advance Online course on Creativity, Problem Solving and Design Thinking (Opens in a new window) , to share his practical strategies for improving problem-solving skills in business.

Strategies to develop problem-solving skills

There are four crucial stages when it comes to honing problem-solving skills within a business context:

Reviewing processes

Almost every business activity can be seen as a creative challenge to be solved – from how to improve financial processes to how to boost customer engagement. A good place to start when tackling any business challenge is by going back to basics: reviewing existing processes and looking at what works and what doesn’t work. You might start by asking these questions:

Are there any bottlenecks or inefficiencies that could be streamlined?

Are there any business processes that could be skipped or revised to reduce unnecessary steps, helping to reduce costs and increase output at the same time?

Once processes have been reviewed and improved, communicate this around the team or organisation to advertise the opportunities that exist to solve problems, advises Professor Crilly. Encourage others to look for similar opportunities and empower them to own and implement the improvement process.

Training and development

‘Organisations that truly value creativity and problem-solving skills embed these approaches in the very structure of their operations – starting with training and developing their team members,’ says Professor Crilly.

As an example, Professor Crilly cites the tech giant IBM (Opens in a new window) , which has invested considerable resources into training its entire workforce in Design Thinking – a framework used to develop innovative solutions in a human-centred way.

This design-focused approach to problem-solving has now been embedded in organisations of all sizes around the world, helping to increase innovation, improve customer focus, increase efficiency and effectiveness and improve employee satisfaction. However, developing these skills takes time and effort, requiring a commitment to training and lifelong learning, as well as the self-awareness to reflect on and improve approaches to identifying and tackling challenges.

Fostering a supportive company culture

‘It’s easy for organisations to say that they value creativity and problem-solving skills in the workplace, and to have these terms appear in their mission/vision statements,’ says Professor Crilly. ‘However, the question is really what an organisation is prepared to do to foster and sustain a creative culture? Is it a feature of recruitment processes, training plans, staff review documentation? Are the reward and progression incentives actually aligned around creative work, or is everyone motivated to just keep doing the same thing and avoid mistakes?’

To support creative work, it is essential to develop a company culture characterised by open collaboration, psychological safety, risk-taking and diversity. When employees feel appreciated and supported as individuals, they are far more likely to step up and get creative with their ideas. Celebrating wins and learning from setbacks not only help boost company morale but also encourage a proactive attitude towards tackling challenges, as well as helping to develop a positive workplace environment with strong employee engagement.

Encouraging creative thinking

‘Creativity and innovation require doing new things, which means sometimes getting things wrong and learning from that,’ says Professor Crilly. Creative problem-solving involves looking beyond conventional solutions and experimenting with innovative ideas. Supporting employees with the resources they need (including time, space, people and money) to think out of the box and view problems from a different perspective can lead to breakthrough solutions that can help to transform a business.

The four steps of problem-solving in business

When solving problems, it’s important to break down the process into different activities, says Professor Crilly. Here are four activities he recommends to achieve problem-solving success:

1. Identify the problem

The first step to solving any problem is to clearly define it. This means gathering information, understanding the context and identifying the issues at stake.

‘It’s not always the case that a problem is handed to us in neatly packaged way,’ Professor Crilly explains. ‘Instead, we often need to find problems for ourselves, which requires us to be sensitive to messy situations and see opportunities for change, disruption or improvement.’

He points out that many great inventions and innovations are solutions to problems that others might not have recognised as problems at all. While many in an organisation might see a particular business process as inherently difficult, for example, it only takes one person to recognise that an alternative is possible – and to champion that possibility.

See Professor Crilly’s blog article Problem solve like a pro (Opens in a new window) for more on this.

2. Generate possible solutions

There are a range of possible idea generation techniques, but brainstorming is perhaps the most popular. It’s important to encourage creativity and consider all ideas, no matter how unconventional.

‘All kinds of drawings, diagrams, maps and charts can be extremely valuable for eliciting, capturing, generating, developing and sharing ideas,’ says Professor Crilly, who suggests working in a mixture of smaller and bigger groups for the best results.

‘People assume that creative sessions, such as brainstorming, should be conducted entirely in groups,’ he says. ‘However, there are benefits to structuring the sessions so that people can work as individuals, sub-groups and groups, and move between these arrangements, sometimes iteratively.’

3. Evaluate and select solutions

Once the brainstorming is over, the next step is to evaluate the feasibility, risks and benefits of each potential solution. Carefully weigh these factors to determine which strategy aligns best with your business goals. Then you can select the most effective approach to move forward.

‘Our initial understanding of the problem may set us off in useful directions,’ says Professor Crilly. ‘But we often only truly understand the problem when we are generating and testing ideas for solutions. As such, we shouldn’t remain fixed in the interpretation of the problem that we started with.

‘Sometimes problem iteration can be quite subtle, such as when we add minor requirements or identify additional stakeholders,’ he adds. ‘However, in other instances, we might develop an idea that is really a solution to some other problem altogether, one that might be worth pursuing as an opportunity in its own right.’

4. Implement and review

Put your chosen solution into action and keep an eye on how well it works. Be ready to tweak things based on feedback and results as they come in. This way, you can keep improving and make sure you’re on track to meet your business goals.

‘In some contexts, what is required is a good match between a problem and a solution, even if neither is what you started with,’ says Professor Crilly. ‘For example, we might develop a new smartphone app to address a specific social problem, but if people subsequently use it to effectively solve some other problem, then we might just reorient our efforts to address that new opportunity.’

Visualising the process

These problem-solving steps can be visualised in the following way, inspired by the work of the Creative Problem-Solving community and the Design Council’s Double Diamond model:

Image source: The Double Diamond by the Design Council (Opens in a new window) is licensed under a CC BY 4.0 license.  (Opens in a new window)

1. Problem identification

Being sensitive to opportunities to improve things; noticing that things are not as good as they could be.

2. Problem exploration

Not just accepting the first interpretation of the problem but exploring alternatives, including:

divergent phase of opening up the space of possibilities: abstracting the problem to a more general level; reframing the problem to see it from different perspectives 

convergent phase of closing down the space of possibilities: selecting the most promising problems. 

3. Problem definition

Representing the problem in ways that don’t assume specific directions for finding solutions; communicating the problem to the team members or stakeholder who will engage with it.

4. Solution exploration

Not just accepting the first possible solution, but exploring alternatives, including:

divergent phase of opening up the space of possibilities: individual and group idea generation sessions, co-design, prototyping, etc

convergent phase of closing down the space of possibilities: selecting and refining the most promising solutions. 

5. Solution implementation

Representing the solution in ways that don’t assume specific directions for finding solutions; communicating the problem to the team members or stakeholder who will engage with it.

As Professor Crilly explains, ‘There are two reasons that this visualisation is especially useful: first, it emphasises that problem exploration is just as important as solution exploration; second, it emphasises that divergent thinking is just as important as convergent thinking.’

These points are critical, he says, because people often think that creativity is only about solving problems (rather than also finding them), and that it’s all about generating lots of ideas (rather than also narrowing those ideas down).

Key takeaways for effective problem-solving

From refining processes to nurturing creative thinking, the key problem-solving approaches explored above are crucial for staying agile and competitive in today’s dynamic business environment:

Training for innovation : Invest in training programmes that promote creative problem-solving techniques, fostering a culture of continuous learning and improvement.

Cultivate a supportive culture : Create an environment that encourages open communication, teamwork and risk-taking, empowering employees to contribute innovative solutions.

Promote creative thinking : Catalyse creativity by embracing diverse perspectives and providing resources for experimentation, driving innovation and adaptation in response to business challenges.

Review and refine problem-solving processes : Frequently assess and improve ways of addressing problem-solving to make sure processes are fit for purpose.

Professor Crilly emphasises that enhancing problem-solving skills within your business is a continuous and evolving journey. By investing in training, fostering creative thinking and cultivating a supportive company culture, you can empower your team to tackle challenges more effectively and propel your business to new heights.

Professor Crilly’s expertise in the fields of problem-solving, idea generation and design thinking, honed over many years in the University of Cambridge’s Department of Engineering, has now been condensed into an invaluable six-week course offered by Cambridge Advance Online. Through Creativity, Problem Solving and Design Thinking (Opens in a new window) , Professor Crilly has delivered world-leading training to hundreds of professionals across a broad range of sectors – including management consultancy, healthcare, legal services, education, design and innovation.

Enrol today to tap into Professor Crilly’s expert problem-solving expertise and to start your journey towards becoming a problem-solving pro, giving you and your team valuable tools to tackle today’s business challenges head-on.

Discover Cambridge Advance Online’s six-week course on Creativity, Problem Solving and Design Thinking (Opens in a new window)

Read Professor Crilly’s Q&A on the Problem Solving and Design Thinking course here (Opens in a new window)

References:

Crilly, N. (2023). ‘Problem solve like a pro.’ University of Cambridge Online, 15 Dec 2023. https://advanceonline.cam.ac.uk/blog/problem-solving (Opens in a new window) accessed 01 July 2024.

World Economic Forum. (2023). Future of Jobs Report 2023. Insight report, World Economic Forum. https://www3.weforum.org/docs/ (Opens in a new window) WEF_Future_of_Jobs_2023 (Opens in a new window) .pdf accessed 01 July 2024.

Professor Nathan Crilly

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More From Forbes

Five things companies get wrong about problem-solving, and five steps to master it.

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Benito Piuzzi is the COO of Lakeview Loan Servicing and former McKinsey consultant where he specialized in large-scale transformations.

Problem-solving is a core competency needed in any business to improve performance. Whether related to growing the business, streamling costs, improving customer experience or overall company culture, all businesses are consistenly solving problems to become profitable, attract top talent and deliver the best product or service possible.

Problem-solving, however, requires structure. And like any aquired skill, it requires practice. If not done properly, businesses will not improve quickly enough or at all — all the while spending valuable resources and time. In addition, it can affect employee morale and performance if the business develops a culture of consistenly "putting out fires" without really moving the needle.

Every company goes through its own journey, thus problems will look different. Some businesses don't know where to start because "everything is broken." Others may be trying to improve a very targeted initiatve or process. One thing is for sure, not problem-solving correctly can be more costly than you think.

How Companies Solve Problems The Wrong Way

Having spent years working both in the industry and as a consultant, here are the top five things I've seen companies get wrong about problem-solving:

1. Solving a problem that doesn't need to be solved: This is often a symptom of a bigger problem: not having a clear "north star." Businesses should have a clear strategy with cascading key metrics from the top (e.g., EBITDA, % market share, NPS, etc.) all the way to the frontline (e.g., parts per minute, calls per person, defective rate, etc.).

With these in mind, and clear targets, the first question to ask when facing a problem is whether that problem affects core metrics. If it doesn't, or if the effort to solve is too much for minimum benefit to these metrics, it's best not to try solving this problem.

2. Not understanding the root cause of a problem: It's not uncommon for relevant stakeholders to list a number of solutions and try to tackle each until the problem is solved (commonly known as "boiling the ocean"). But this approach can be ineffective and expensive.

3. Using tools without proper training for root-cause problem-solving: With growing knowledge of Lean project management, more people are becoming familiar with tools and techniques like "the five whys," fishbone diagrams, A3s (commonly used at Toyota), and many other templates available on the internet.

The problem with these is that if they are filled out without proper training, stakeholders may think the template or technique is the way to solve the problem, and it can undermine a deep and thorough process to understand the problem. As Albert Einstein is believed to have said, "If I had an hour to solve a problem, I'd spend 55 minutes thinking about the problem and five minutes thinking about solutions."

4. Not using data: Companies that don't have a discipline of using data tend to forget the importance of measuring and setting a baseline, a target and tracking progress to make sure the solution reaches the target. In addition, companies often realize too late (when there is a problem) that they were not tracking the right data—or any data at all—to monitor performance.

5. Solving a problem in a silo: People try to solve problems in silos because they are assigned the solution or because they believe they can solve the problem without help. Once again, without the training, structure or involvement of key stakeholders, the solution to a problem may not be optimal.

How Your Organization Can Master Problem-Solving

In contrast to the missteps above, there are five steps your business can start doing now to solve problems more effectively.

1. Use data. Make sure your business has clear targets or key performance indicators (KPIs) across the different levels of the organization that link to overall strategy. In addition, make sure your business has the necessary infrastructure to measure, track and analyze performance with data.

2. Prioritize aggresively. Put together a 2x2 decision matrix that illustrates effort vs. ROI. This will help you prioritize your problem-solving efforts.

• Low effort/low ROI = Solve only if there is capacity

• Low effort/high ROI = Solve ASAP

• High effort/high ROI = Long-term effort. Organize a team around it

• High effort/Low ROI = Don't solve

3. Use hypothesis-based problem-solving. Commonly used by top consultancies, the idea is simple. When facing a business problem, create a list of potential hypotheses that could be driving the problem. Then, leverage data, knowledge and observations to quickly pressure-test each hypothesis and understand which one can be driving the problem.

4. Include relevant stakeholders. It's best practice to leverage subject-matter expertise to contextualize the problem better and arrive to better understanding of the problem and solution as a team.

5. Test your solution. Leverage data to perform A/B testing, pilots or minimum viable products (MVPs) to explore the effectiveness of a solution before scaling.

Whether you are a small or large business, these steps can put you on the path to solving problems more effectively to grow your business.

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The College of Business at UW-Eau Claire is known as one of the top business schools in the Midwest. From outstanding faculty with hands-on expertise, to the numerous on-and off-campus opportunities to practice and develop your skills, the College of Business will give you the foundation needed for lifelong success in your business career.

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The University of Wisconsin-Eau Claire College of Business prepares students for success through an inclusive, engaged, and experiential education.

The College of Business aspires to be a leader in preparing students to succeed by providing innovative teaching, distinctive academic programs, and community engagement while strengthening our foundation of respect and inclusion.

• Students and put them first in everything we do.   Every decision in the college is made with our students at the center.
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Problem Solving: Students will be effective problem solvers

• Students will solve problems.

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Upon completion of the program, students will be able to demonstrate the knowledge and skills necessary to be effective leaders who can do the following in a global and domestic context:

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Highly effective top teams share key five behaviors: direction, discipline, drive, dynamism, and collaboration. These traits are collective: They characterize the behaviors of the team as a whole, not those of its individual members.

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