Tool graphics

0 results have been found for “”

 Return to blog home

10 Step Process for Effective Business Problem Solving

Posted august 3, 2021 by harriet genever.

Navigate uncertainty by following this 10-step process to develop your problem-solving skills and approach any issue with confidence. 

When you start a small business or launch a startup, the one thing you can count on is the unexpected. No matter how thoroughly you plan, forecast , and test, problems are bound to arise. This is why as an entrepreneur, you need to know how to solve business problems effectively.

What is problem solving in business?

Problem solving in business relates to establishing processes that mitigate or remove obstacles currently preventing you from reaching strategic goals . These are typically complex issues that create a gap between actual results and your desired outcome. They may be present in a single team, operational process, or throughout your entire organization, typically without an immediate or obvious solution. 

To approach problem solving successfully, you need to establish consistent processes that help you evaluate, explore solutions, prioritize execution, and measure success. In many ways, it should be similar to how you review business performance through a monthly plan review . You work through the same documentation, look for gaps, dig deeper to identify the root cause, and hash out options. Without this process, you simply cannot expect to solve problems efficiently or effectively. 

Why problem solving is important for your business

While some would say problem-solving comes naturally, it’s actually a skill you can grow and refine over time. Problem solving skills will help you and your team tackle critical issues and conflicts as they arise. It starts from the top. You as the business owner or CEO needing to display the type of level-headed problem solving that you expect to see from your employees.

Doing so will help you and your staff quickly deal with issues, establish and refine a problem solving process, turn challenges into opportunities, and generally keep a level head. Now, the best business leaders didn’t just find a magic solution to solve their problems, they built processes and leveraged tools to find success. And you can do the same.

By following this 10-step process, you can develop your problem-solving skills and approach any issue that arises with confidence. 

1. Define the problem

When a problem arises, it can be very easy to jump right into creating a solution. However, if you don’t thoroughly examine what led to the problem in the first place, you may create a strategy that doesn’t actually solve it. You may just be treating the symptoms.

For instance, if you realize that your sales from new customers are dropping, your first inclination might be to rush into putting together a marketing plan to increase exposure. But what if decreasing sales are just a symptom of the real problem? 

When you define the problem, you want to be sure you’re not missing the forest for the trees. If you have a large issue on your hands, you’ll want to look at it from several different angles:

Competition 

Is a competitor’s promotion or pricing affecting your sales? Are there new entrants in your market? How are they marketing their product or business?

Business model 

Is your business model sustainable? Is it realistic for how fast you want to grow? Should you explore different pricing or cost strategies?

Market factors

How are world events and the nation’s economy affecting your customers and your sales?

Are there any issues affecting your team? Do they have the tools and resources they need to succeed? 

Goal alignment 

Is everyone on your team working toward the same goal ? Have you communicated your short-term and long-term business goals clearly and often?

There are a lot of ways to approach the issue when you’re facing a serious business problem. The key is to make sure you’re getting a full snapshot of what’s going on so you don’t waste money and resources on band-aid solutions. 

Going back to our example, by looking at every facet of your business, you may discover that you’re spending more on advertising than your competitors already. And instead, there’s a communication gap within your team that’s leading to the mishandling of new customers and therefore lost sales. 

If you jumped into fixing the exposure of your brand, you would have been dumping more money into an area you’re already winning. Potentially leading to greater losses as more and more new customers are dropped due to poor internal communication.

This is why it’s so vital that you explore your blind spots and track the problem to its source.

2. Conduct a SWOT analysis

All good businesses solve some sort of problem for customers. What if your particular business problem is actually an opportunity, or even a strength if considered from a different angle? This is when you’d want to conduct a SWOT analysis to determine if that is in fact the case.

SWOT is a great tool for strategic planning and bringing multiple viewpoints to the table when you’re looking at investing resources to solve a problem. This may even be incorporated in your attempts to identify the source of your problem, as it can quickly outline specific strengths and weaknesses of your business. And then by identifying any potential opportunities or threats, you can utilize your findings to kickstart a solution. 

3. Identify multiple solutions with design thinking

As you approach solving your problem, you may want to consider using the design thinking approach . It’s often used by organizations looking to solve big, community-based problems. One of its strengths is that it requires involving a wide range of people in the problem-solving process. Which leads to multiple perspectives and solutions arising.

This approach—applying your company’s skills and expertise to a problem in the market—is the basis for design thinking.

It’s not about finding the most complex problems to solve, but about finding common needs within the organization and in the real world and coming up with solutions that fit those needs. When you’re solving business problems, this applies in the sense that you’re looking for solutions that address underlying issues—you’re looking at the big picture.

4. Conduct market research and customer outreach

Market research and customer outreach aren’t the sorts of things small business owners and startups can do once and then cross off the list. When you’re facing a roadblock, think back to the last time you did some solid market research or took a deep dive into understanding the competitive landscape .

Market research and the insights you get from customer outreach aren’t a silver bullet. Many companies struggle with what they should do with conflicting data points. But it’s worth struggling through and gathering information that can help you better understand your target market . Plus, your customers can be one of the best sources of criticism. It’s actually a gift if you can avoid taking the negatives personally .

The worst thing you can do when you’re facing challenges is isolating yourself from your customers and ignore your competition. So survey your customers. Put together a competitive matrix . 

fill-in-the-blank LivePlan

5. Seek input from your team and your mentors

Don’t do your SWOT analysis or design thinking work by yourself. The freedom to express concerns, opinions, and ideas will allow people in an organization to speak up. Their feedback is going to help you move faster and more efficiently. If you have a team in place, bring them into the discussion. You hired them to be experts in their area; use their expertise to navigate and dig deeper into underlying causes of problems and potential solutions.

If you’re running your business solo, at least bring in a trusted mentor. SCORE offers a free business mentorship program if you don’t already have one. It can also be helpful to connect with a strategic business advisor , especially if business financials aren’t your strongest suit.

Quoting Stephen Covey, who said that “strength lies in differences, not in similarities,” speaking to the importance of diversity when it comes to problem-solving in business. The more diverse a team is , the more often innovative solutions to the problems faced by the organization appear.

In fact, it has been found that groups that show greater diversity were better at solving problems than groups made up specifically of highly skilled problem solvers. So whoever you bring in to help you problem-solve, resist the urge to surround yourself with people who already agree with you about everything.

6. Apply lean planning for nimble execution

So you do your SWOT analysis and your design thinking exercise. You come up with a set of strong, data-driven ideas. But implementing them requires you to adjust your budget, or your strategic plan, or even your understanding of your target market.

Are you willing to change course? Can you quickly make adjustments? Well in order to grow, you can’t be afraid to be nimble . 

By adopting the lean business planning method —the process of revising your business strategy regularly—you’ll be able to shift your strategies more fluidly. You don’t want to change course every week, and you don’t want to fall victim to shiny object thinking. But you can strike a balance that allows you to reduce your business’s risk while keeping your team heading in the right direction.

Along the way, you’ll make strategic decisions that don’t pan out the way you hoped. The best thing you can do is test your ideas and iterate often so you’re not wasting money and resources on things that don’t work. That’s Lean Planning .

7. Model different financial scenarios

When you’re trying to solve a serious business problem, one of the best things you can do is build a few different financial forecasts so you can model different scenarios. You might find that the idea that seemed the strongest will take longer than you thought to reverse a negative financial trend. At the very least you’ll have better insight into the financial impact of moving in a different direction.

The real benefit here is looking at different tactical approaches to the same problem. Maybe instead of increasing sales right now, you’re better off in the long run if you adopt a strategy to reduce churn and retain your best customers. You won’t know unless you model a few different scenarios. You can do this by using spreadsheets, and a tool like LivePlan can make it easier and quicker.

8. Watch your cash flow

While you’re working to solve a challenging business problem, pay particular attention to your cash flow and your cash flow forecast . Understanding when your company is at risk of running out of cash in the bank can help you be proactive. It’s a lot easier to get a line of credit while your financials still look good and healthy, than when you’re one pay period away from ruin.

If you’re dealing with a serious issue, it’s easy to start to get tunnel vision. You’ll benefit from maintaining a little breathing room for your business as you figure out what to do next.

9. Use a decision-making framework

Once you’ve gathered all the information you need, generated a number of ideas, and done some financial modeling, you might still feel uncertain. It’s natural—you’re not a fortune-teller. You’re trying to make the best decision you can with the information you have.

This article offers a really useful approach to making decisions. It starts with putting your options into a matrix like this one:

business problem solving process

Use this sort of framework to put everything you’ve learned out on the table. If you’re working with a bigger team, this sort of exercise can also bring the rest of your team to the table so they feel some ownership over the outcome.

10. Identify key metrics to track

How will you know your problem is solved? And not just the symptom—how will you know when you’ve addressed the underlying issues? Before you dive into enacting the solution, make sure you know what success looks like.

Decide on a few key performance indicators . Take a baseline measurement, and set a goal and a timeframe. You’re essentially translating your solution into a plan, complete with milestones and goals. Without these, you’ve simply made a blind decision with no way to track success. You need those goals and milestones to make your plan real .

Problem solving skills to improve

As you and your team work through this process, it’s worth keeping in mind specific problem solving skills you should continue to develop. Bolstering your ability, as well as your team, to solve problems effectively will only make this process more useful and efficient. Here are a few key skills to work on.

Emotional intelligence

It can be very easy to make quick, emotional responses in a time of crisis or when discussing something you’re passionate about. To avoid making assumptions and letting your emotions get the best of you, you need to focus on empathizing with others. This involves understanding your own emotional state, reactions and listening carefully to the responses of your team. The more you’re able to listen carefully, the better you’ll be at asking for and taking advice that actually leads to effective problem solving.

Jumping right into a solution can immediately kill the possibility of solving your problem. Just like when you start a business , you need to do the research into what the problem you’re solving actually is. Luckily, you can embed research into your problem solving by holding active reviews of financial performance and team processes. Simply asking “What? Where? When? How?” can lead to more in-depth explorations of potential issues.

The best thing you can do to grow your research abilities is to encourage and practice curiosity. Look at every problem as an opportunity. Something that may be trouble now, but is worth exploring and finding the right solution. You’ll pick up best practices, useful tools and fine-tune your own research process the more you’re willing to explore.

Brainstorming

Creatively brainstorming with your team is somewhat of an art form. There needs to be a willingness to throw everything at the wall and act as if nothing is a bad idea at the start. This style of collaboration encourages participation without fear of rejection. It also helps outline potential solutions outside of your current scope, that you can refine and turn into realistic action.

Work on breaking down problems and try to give everyone in the room a voice. The more input you allow, the greater potential you have for finding the best solution.

Decisiveness

One thing that can drag out acting upon a potential solution, is being indecisive. If you aren’t willing to state when the final cutoff for deliberation is, you simply won’t take steps quickly enough. This is when having a process for problem solving comes in handy, as it purposefully outlines when you should start taking action.

Work on choosing decision-makers, identify necessary results and be prepared to analyze and adjust if necessary. You don’t have to get it right every time, but taking action at the right time, even if it fails, is almost more vital than never taking a step.  

Stemming off failure, you need to learn to be resilient. Again, no one gets it perfect every single time. There are so many factors in play to consider and sometimes even the most well-thought-out solution doesn’t stick. Instead of being down on yourself or your team, look to separate yourself from the problem and continue to think of it as a puzzle worth solving. Every failure is a learning opportunity and it only helps you further refine and eliminate issues in your strategy.

Problem solving is a process

The key to effective problem-solving in business is the ability to adapt. You can waste a lot of resources on staying the wrong course for too long. So make a plan to reduce your risk now. Think about what you’d do if you were faced with a problem large enough to sink your business. Be as proactive as you can.

Editor’s note: This article was originally published in 2016. It was updated in 2021.

Like this post? Share with a friend!

Harriet Genever

Harriet Genever

Posted in management, join over 1 million entrepreneurs who found success with liveplan, like this content sign up to receive more.

Subscribe for tips and guidance to help you grow a better, smarter business.

You're all set!

Exciting business insights and growth strategies will be coming your way each month.

We care about your privacy. See our privacy policy .

Purdue University

Effective Problem-Solving Techniques in Business

A business team discusses a problem in a conference room

January 20, 2023

Purdue Online

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 .

About the Author

  • Communication
  • Health Sciences
  • Student Advice

CMOE Logo

  • Coaching Skills Training
  • Coaching TIPS²™
  • Continuous Improvement Coaching
  • Courageous Conversations Workshop
  • Executive Coaching Program
  • Feedback 360
  • Safety Coaching
  • Sales Coaching Training Program
  • Free Consultation
  • Applied Strategic Thinking®
  • Strategic Leadership Course
  • Strategic Teaming
  • Strategy Development Processes and Services
  • Communication Training for Managers
  • Conflict and Collaboration
  • Confronting Racism Workshop
  • Delegation & Accountability
  • Diversity, Equity, and Inclusion Workshop
  • Flexible Leadership
  • Leading Change
  • Leading Groups to Solutions
  • Leading Innovation
  • Mid-Level Management Training
  • Qualities of Leadership
  • Bottom Line Leadership
  • Customized Leadership Development Programs
  • Leadership Development Program Design
  • Mini-MBA & Operational Finance
  • Problem Solving and Decision Making in the Workplace
  • Transition to Leadership
  • Virtual Leadership
  • High-Performance Teamwork
  • Leadership Team Alignment Workshop
  • Orienteering
  • Corporate Outdoor Training and Team Building
  • Retreats for Teams
  • Innovation Skills Training
  • Personal Impact Workshop
  • Supervisor Training Programs
  • Customization of CMOE’s Learning Library
  • Full Curriculum Development and Design
  • Learning & Development Advisory Services
  • Bottom Line Leadership Training
  • Consulting Services
  • Leadership Retreats
  • Learning and Development Consulting Services
  • Needs Analysis and Organization Assessments
  • Transformation & Change Solutions
  • Facilitator Training Workshop
  • Empathic Leadership
  • Supervisor Development Series
  • All Courses
  • Digital Learning
  • Books and Publications
  • Assessments and Surveys
  • Clients Served
  • History and Experience
  • Meet the CMOE Team
  • Testimonials
  • Articles & Tools
  • Scenario Templates
  • Certified Partners
  • Event Resources
  • Industry Insights
  • Resource Library
  • Video Library
  • News and Events
  • Professional Accreditation and Continuing Education Units
  • Surveys & Assessments
  • Problem Solving in Business
  • 360-Degree Leadership Assessment
  • Adaptive Communication
  • Adaptive Leadership
  • Authentic Leadership Style
  • Boundary Spanning Leadership
  • Business Change Strategies
  • Business-Strategy Principles
  • Capacity Building
  • Cascading Strategy
  • Change Management
  • Coaching Framework
  • Coaching in the Workplace
  • Collaborative Coaching
  • Competency Assessment
  • Conflict Resolution in the Workplace
  • Core Competence
  • Corporate Strategic Planning
  • Crisis Leadership
  • Critical Success Factors
  • DEI in the Workplace
  • Directive Leader
  • Empathetic Leadership Definition
  • Horizontal Leadership
  • Inclusive Leadership
  • Innovation Strategy
  • Leadership Competency Framework
  • Leadership Model
  • Management Succession Planning
  • Operational Excellence
  • Organizational Alignment
  • Participative Leadership Style
  • Performance Deficiency Coaching
  • Persuasive Leadership Style
  • Servant Leadership Style
  • Strategic Agility
  • Strategic Alignment
  • Strategic Audit
  • Strategic Framework
  • Strategic Initiative (Examples Included)
  • Strategic Management
  • Strategic Mindset Competency
  • Strategic Thinking
  • Strategy Committee
  • Strategy Issues
  • Strategy Maps
  • Supportive Leadership Style: Definition and Qualities
  • Team Building Interventions
  • Team Environment
  • Team Performance Assessment
  • Teamwork Atmosphere
  • Total Employee Involvement
  • Training Needs Analysis (TNA) Definition
  • Transformational Leadership
  • Visionary Leadership Style

business problem solving process

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 Problem Solving Is 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 to Solve Business Problems Effectively

There are many different problem-solving skills, but most can be broken into general steps. Here is a four-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.

2) Creatively Brainstorm Solutions: Alone or with a team, state every solution you can think of. You’ll often need to write them down. To get more solutions, brainstorm with the employees who have the greatest knowledge of the issue.

3) Evaluate Solutions and Make a Decision: Compare and contrast alternative solutions based on the feasibility of each one, including the resources needed to implement it and the return on investment of each one. Finally, make a firm decision on one solution that clearly addresses the root cause of the problem.

4) Take Action: Write up a detailed plan for implementing the solution, get the necessary approvals, and put it into action.

What Are Problem-Solving Skills?

Problem-solving skills are specific procedures that can be used to complete one or more of the four 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 to Improve 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 practiced and refined 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.

Learn business problem solving

Clients We’ve Worked With

Contact form.

Need More Information? Please fill out the following form and we will be in contact with you with more information.

" * " indicates required fields

As Featured In:

business problem solving process

The Better Business Bureau has determined that CMOE meets accreditation standards. These standards verify that CMOE’s product quality and competence enhance customer trust and confidence.

©2023 Center for Management & Organization Effectiveness. All rights reserved.

35 problem-solving techniques and methods for solving complex problems

Problem solving workshop

Design your next session with SessionLab

Join the 150,000+ facilitators 
using SessionLab.

Recommended Articles

How to become a great workshop facilitator, workshop design 101: how to craft a successful agenda design.

  • 47 useful online tools for workshop planning and meeting facilitation
  • A step-by-step guide to planning a workshop

All teams and organizations encounter challenges as they grow. There are problems that might occur for teams when it comes to miscommunication or resolving business-critical issues . You may face challenges around growth , design , user engagement, and even team culture and happiness. In short, problem-solving techniques should be part of every team’s skillset.

Problem-solving methods are primarily designed to help a group or team through a process of first identifying problems and challenges , ideating possible solutions , and then evaluating the most suitable .

Finding effective solutions to complex problems isn’t easy, but by using the right process and techniques, you can help your team be more efficient in the process.

So how do you develop strategies that are engaging, and empower your team to solve problems effectively?

In this blog post, we share a series of problem-solving tools you can use in your next workshop or team meeting. You’ll also find some tips for facilitating the process and how to enable others to solve complex problems.

Let’s get started! 

How do you identify problems?

How do you identify the right solution.

  • Tips for more effective problem-solving

Complete problem-solving methods

  • Problem-solving techniques to identify and analyze problems
  • Problem-solving techniques for developing solutions

Problem-solving warm-up activities

Closing activities for a problem-solving process.

Before you can move towards finding the right solution for a given problem, you first need to identify and define the problem you wish to solve. 

Here, you want to clearly articulate what the problem is and allow your group to do the same. Remember that everyone in a group is likely to have differing perspectives and alignment is necessary in order to help the group move forward. 

Identifying a problem accurately also requires that all members of a group are able to contribute their views in an open and safe manner. It can be scary for people to stand up and contribute, especially if the problems or challenges are emotive or personal in nature. Be sure to try and create a psychologically safe space for these kinds of discussions.

Remember that problem analysis and further discussion are also important. Not taking the time to fully analyze and discuss a challenge can result in the development of solutions that are not fit for purpose or do not address the underlying issue.

Successfully identifying and then analyzing a problem means facilitating a group through activities designed to help them clearly and honestly articulate their thoughts and produce usable insight.

With this data, you might then produce a problem statement that clearly describes the problem you wish to be addressed and also state the goal of any process you undertake to tackle this issue.  

Finding solutions is the end goal of any process. Complex organizational challenges can only be solved with an appropriate solution but discovering them requires using the right problem-solving tool.

After you’ve explored a problem and discussed ideas, you need to help a team discuss and choose the right solution. Consensus tools and methods such as those below help a group explore possible solutions before then voting for the best. They’re a great way to tap into the collective intelligence of the group for great results!

Remember that the process is often iterative. Great problem solvers often roadtest a viable solution in a measured way to see what works too. While you might not get the right solution on your first try, the methods below help teams land on the most likely to succeed solution while also holding space for improvement.

Every effective problem solving process begins with an agenda . A well-structured workshop is one of the best methods for successfully guiding a group from exploring a problem to implementing a solution.

In SessionLab, it’s easy to go from an idea to a complete agenda . Start by dragging and dropping your core problem solving activities into place . Add timings, breaks and necessary materials before sharing your agenda with your colleagues.

The resulting agenda will be your guide to an effective and productive problem solving session that will also help you stay organized on the day!

business problem solving process

Tips for more effective problem solving

Problem-solving activities are only one part of the puzzle. While a great method can help unlock your team’s ability to solve problems, without a thoughtful approach and strong facilitation the solutions may not be fit for purpose.

Let’s take a look at some problem-solving tips you can apply to any process to help it be a success!

Clearly define the problem

Jumping straight to solutions can be tempting, though without first clearly articulating a problem, the solution might not be the right one. Many of the problem-solving activities below include sections where the problem is explored and clearly defined before moving on.

This is a vital part of the problem-solving process and taking the time to fully define an issue can save time and effort later. A clear definition helps identify irrelevant information and it also ensures that your team sets off on the right track.

Don’t jump to conclusions

It’s easy for groups to exhibit cognitive bias or have preconceived ideas about both problems and potential solutions. Be sure to back up any problem statements or potential solutions with facts, research, and adequate forethought.

The best techniques ask participants to be methodical and challenge preconceived notions. Make sure you give the group enough time and space to collect relevant information and consider the problem in a new way. By approaching the process with a clear, rational mindset, you’ll often find that better solutions are more forthcoming.  

Try different approaches  

Problems come in all shapes and sizes and so too should the methods you use to solve them. If you find that one approach isn’t yielding results and your team isn’t finding different solutions, try mixing it up. You’ll be surprised at how using a new creative activity can unblock your team and generate great solutions.

Don’t take it personally 

Depending on the nature of your team or organizational problems, it’s easy for conversations to get heated. While it’s good for participants to be engaged in the discussions, ensure that emotions don’t run too high and that blame isn’t thrown around while finding solutions.

You’re all in it together, and even if your team or area is seeing problems, that isn’t necessarily a disparagement of you personally. Using facilitation skills to manage group dynamics is one effective method of helping conversations be more constructive.

Get the right people in the room

Your problem-solving method is often only as effective as the group using it. Getting the right people on the job and managing the number of people present is important too!

If the group is too small, you may not get enough different perspectives to effectively solve a problem. If the group is too large, you can go round and round during the ideation stages.

Creating the right group makeup is also important in ensuring you have the necessary expertise and skillset to both identify and follow up on potential solutions. Carefully consider who to include at each stage to help ensure your problem-solving method is followed and positioned for success.

Document everything

The best solutions can take refinement, iteration, and reflection to come out. Get into a habit of documenting your process in order to keep all the learnings from the session and to allow ideas to mature and develop. Many of the methods below involve the creation of documents or shared resources. Be sure to keep and share these so everyone can benefit from the work done!

Bring a facilitator 

Facilitation is all about making group processes easier. With a subject as potentially emotive and important as problem-solving, having an impartial third party in the form of a facilitator can make all the difference in finding great solutions and keeping the process moving. Consider bringing a facilitator to your problem-solving session to get better results and generate meaningful solutions!

Develop your problem-solving skills

It takes time and practice to be an effective problem solver. While some roles or participants might more naturally gravitate towards problem-solving, it can take development and planning to help everyone create better solutions.

You might develop a training program, run a problem-solving workshop or simply ask your team to practice using the techniques below. Check out our post on problem-solving skills to see how you and your group can develop the right mental process and be more resilient to issues too!

Design a great agenda

Workshops are a great format for solving problems. With the right approach, you can focus a group and help them find the solutions to their own problems. But designing a process can be time-consuming and finding the right activities can be difficult.

Check out our workshop planning guide to level-up your agenda design and start running more effective workshops. Need inspiration? Check out templates designed by expert facilitators to help you kickstart your process!

In this section, we’ll look at in-depth problem-solving methods that provide a complete end-to-end process for developing effective solutions. These will help guide your team from the discovery and definition of a problem through to delivering the right solution.

If you’re looking for an all-encompassing method or problem-solving model, these processes are a great place to start. They’ll ask your team to challenge preconceived ideas and adopt a mindset for solving problems more effectively.

  • Six Thinking Hats
  • Lightning Decision Jam
  • Problem Definition Process
  • Discovery & Action Dialogue
Design Sprint 2.0
  • Open Space Technology

1. Six Thinking Hats

Individual approaches to solving a problem can be very different based on what team or role an individual holds. It can be easy for existing biases or perspectives to find their way into the mix, or for internal politics to direct a conversation.

Six Thinking Hats is a classic method for identifying the problems that need to be solved and enables your team to consider them from different angles, whether that is by focusing on facts and data, creative solutions, or by considering why a particular solution might not work.

Like all problem-solving frameworks, Six Thinking Hats is effective at helping teams remove roadblocks from a conversation or discussion and come to terms with all the aspects necessary to solve complex problems.

2. Lightning Decision Jam

Featured courtesy of Jonathan Courtney of AJ&Smart Berlin, Lightning Decision Jam is one of those strategies that should be in every facilitation toolbox. Exploring problems and finding solutions is often creative in nature, though as with any creative process, there is the potential to lose focus and get lost.

Unstructured discussions might get you there in the end, but it’s much more effective to use a method that creates a clear process and team focus.

In Lightning Decision Jam, participants are invited to begin by writing challenges, concerns, or mistakes on post-its without discussing them before then being invited by the moderator to present them to the group.

From there, the team vote on which problems to solve and are guided through steps that will allow them to reframe those problems, create solutions and then decide what to execute on. 

By deciding the problems that need to be solved as a team before moving on, this group process is great for ensuring the whole team is aligned and can take ownership over the next stages. 

Lightning Decision Jam (LDJ)   #action   #decision making   #problem solving   #issue analysis   #innovation   #design   #remote-friendly   The problem with anything that requires creative thinking is that it’s easy to get lost—lose focus and fall into the trap of having useless, open-ended, unstructured discussions. Here’s the most effective solution I’ve found: Replace all open, unstructured discussion with a clear process. What to use this exercise for: Anything which requires a group of people to make decisions, solve problems or discuss challenges. It’s always good to frame an LDJ session with a broad topic, here are some examples: The conversion flow of our checkout Our internal design process How we organise events Keeping up with our competition Improving sales flow

3. Problem Definition Process

While problems can be complex, the problem-solving methods you use to identify and solve those problems can often be simple in design. 

By taking the time to truly identify and define a problem before asking the group to reframe the challenge as an opportunity, this method is a great way to enable change.

Begin by identifying a focus question and exploring the ways in which it manifests before splitting into five teams who will each consider the problem using a different method: escape, reversal, exaggeration, distortion or wishful. Teams develop a problem objective and create ideas in line with their method before then feeding them back to the group.

This method is great for enabling in-depth discussions while also creating space for finding creative solutions too!

Problem Definition   #problem solving   #idea generation   #creativity   #online   #remote-friendly   A problem solving technique to define a problem, challenge or opportunity and to generate ideas.

4. The 5 Whys 

Sometimes, a group needs to go further with their strategies and analyze the root cause at the heart of organizational issues. An RCA or root cause analysis is the process of identifying what is at the heart of business problems or recurring challenges. 

The 5 Whys is a simple and effective method of helping a group go find the root cause of any problem or challenge and conduct analysis that will deliver results. 

By beginning with the creation of a problem statement and going through five stages to refine it, The 5 Whys provides everything you need to truly discover the cause of an issue.

The 5 Whys   #hyperisland   #innovation   This simple and powerful method is useful for getting to the core of a problem or challenge. As the title suggests, the group defines a problems, then asks the question “why” five times, often using the resulting explanation as a starting point for creative problem solving.

5. World Cafe

World Cafe is a simple but powerful facilitation technique to help bigger groups to focus their energy and attention on solving complex problems.

World Cafe enables this approach by creating a relaxed atmosphere where participants are able to self-organize and explore topics relevant and important to them which are themed around a central problem-solving purpose. Create the right atmosphere by modeling your space after a cafe and after guiding the group through the method, let them take the lead!

Making problem-solving a part of your organization’s culture in the long term can be a difficult undertaking. More approachable formats like World Cafe can be especially effective in bringing people unfamiliar with workshops into the fold. 

World Cafe   #hyperisland   #innovation   #issue analysis   World Café is a simple yet powerful method, originated by Juanita Brown, for enabling meaningful conversations driven completely by participants and the topics that are relevant and important to them. Facilitators create a cafe-style space and provide simple guidelines. Participants then self-organize and explore a set of relevant topics or questions for conversation.

6. Discovery & Action Dialogue (DAD)

One of the best approaches is to create a safe space for a group to share and discover practices and behaviors that can help them find their own solutions.

With DAD, you can help a group choose which problems they wish to solve and which approaches they will take to do so. It’s great at helping remove resistance to change and can help get buy-in at every level too!

This process of enabling frontline ownership is great in ensuring follow-through and is one of the methods you will want in your toolbox as a facilitator.

Discovery & Action Dialogue (DAD)   #idea generation   #liberating structures   #action   #issue analysis   #remote-friendly   DADs make it easy for a group or community to discover practices and behaviors that enable some individuals (without access to special resources and facing the same constraints) to find better solutions than their peers to common problems. These are called positive deviant (PD) behaviors and practices. DADs make it possible for people in the group, unit, or community to discover by themselves these PD practices. DADs also create favorable conditions for stimulating participants’ creativity in spaces where they can feel safe to invent new and more effective practices. Resistance to change evaporates as participants are unleashed to choose freely which practices they will adopt or try and which problems they will tackle. DADs make it possible to achieve frontline ownership of solutions.

7. Design Sprint 2.0

Want to see how a team can solve big problems and move forward with prototyping and testing solutions in a few days? The Design Sprint 2.0 template from Jake Knapp, author of Sprint, is a complete agenda for a with proven results.

Developing the right agenda can involve difficult but necessary planning. Ensuring all the correct steps are followed can also be stressful or time-consuming depending on your level of experience.

Use this complete 4-day workshop template if you are finding there is no obvious solution to your challenge and want to focus your team around a specific problem that might require a shortcut to launching a minimum viable product or waiting for the organization-wide implementation of a solution.

8. Open space technology

Open space technology- developed by Harrison Owen – creates a space where large groups are invited to take ownership of their problem solving and lead individual sessions. Open space technology is a great format when you have a great deal of expertise and insight in the room and want to allow for different takes and approaches on a particular theme or problem you need to be solved.

Start by bringing your participants together to align around a central theme and focus their efforts. Explain the ground rules to help guide the problem-solving process and then invite members to identify any issue connecting to the central theme that they are interested in and are prepared to take responsibility for.

Once participants have decided on their approach to the core theme, they write their issue on a piece of paper, announce it to the group, pick a session time and place, and post the paper on the wall. As the wall fills up with sessions, the group is then invited to join the sessions that interest them the most and which they can contribute to, then you’re ready to begin!

Everyone joins the problem-solving group they’ve signed up to, record the discussion and if appropriate, findings can then be shared with the rest of the group afterward.

Open Space Technology   #action plan   #idea generation   #problem solving   #issue analysis   #large group   #online   #remote-friendly   Open Space is a methodology for large groups to create their agenda discerning important topics for discussion, suitable for conferences, community gatherings and whole system facilitation

Techniques to identify and analyze problems

Using a problem-solving method to help a team identify and analyze a problem can be a quick and effective addition to any workshop or meeting.

While further actions are always necessary, you can generate momentum and alignment easily, and these activities are a great place to get started.

We’ve put together this list of techniques to help you and your team with problem identification, analysis, and discussion that sets the foundation for developing effective solutions.

Let’s take a look!

  • The Creativity Dice
  • Fishbone Analysis
  • Problem Tree
  • SWOT Analysis
  • Agreement-Certainty Matrix
  • The Journalistic Six
  • LEGO Challenge
  • What, So What, Now What?
  • Journalists

Individual and group perspectives are incredibly important, but what happens if people are set in their minds and need a change of perspective in order to approach a problem more effectively?

Flip It is a method we love because it is both simple to understand and run, and allows groups to understand how their perspectives and biases are formed. 

Participants in Flip It are first invited to consider concerns, issues, or problems from a perspective of fear and write them on a flip chart. Then, the group is asked to consider those same issues from a perspective of hope and flip their understanding.  

No problem and solution is free from existing bias and by changing perspectives with Flip It, you can then develop a problem solving model quickly and effectively.

Flip It!   #gamestorming   #problem solving   #action   Often, a change in a problem or situation comes simply from a change in our perspectives. Flip It! is a quick game designed to show players that perspectives are made, not born.

10. The Creativity Dice

One of the most useful problem solving skills you can teach your team is of approaching challenges with creativity, flexibility, and openness. Games like The Creativity Dice allow teams to overcome the potential hurdle of too much linear thinking and approach the process with a sense of fun and speed. 

In The Creativity Dice, participants are organized around a topic and roll a dice to determine what they will work on for a period of 3 minutes at a time. They might roll a 3 and work on investigating factual information on the chosen topic. They might roll a 1 and work on identifying the specific goals, standards, or criteria for the session.

Encouraging rapid work and iteration while asking participants to be flexible are great skills to cultivate. Having a stage for idea incubation in this game is also important. Moments of pause can help ensure the ideas that are put forward are the most suitable. 

The Creativity Dice   #creativity   #problem solving   #thiagi   #issue analysis   Too much linear thinking is hazardous to creative problem solving. To be creative, you should approach the problem (or the opportunity) from different points of view. You should leave a thought hanging in mid-air and move to another. This skipping around prevents premature closure and lets your brain incubate one line of thought while you consciously pursue another.

11. Fishbone Analysis

Organizational or team challenges are rarely simple, and it’s important to remember that one problem can be an indication of something that goes deeper and may require further consideration to be solved.

Fishbone Analysis helps groups to dig deeper and understand the origins of a problem. It’s a great example of a root cause analysis method that is simple for everyone on a team to get their head around. 

Participants in this activity are asked to annotate a diagram of a fish, first adding the problem or issue to be worked on at the head of a fish before then brainstorming the root causes of the problem and adding them as bones on the fish. 

Using abstractions such as a diagram of a fish can really help a team break out of their regular thinking and develop a creative approach.

Fishbone Analysis   #problem solving   ##root cause analysis   #decision making   #online facilitation   A process to help identify and understand the origins of problems, issues or observations.

12. Problem Tree 

Encouraging visual thinking can be an essential part of many strategies. By simply reframing and clarifying problems, a group can move towards developing a problem solving model that works for them. 

In Problem Tree, groups are asked to first brainstorm a list of problems – these can be design problems, team problems or larger business problems – and then organize them into a hierarchy. The hierarchy could be from most important to least important or abstract to practical, though the key thing with problem solving games that involve this aspect is that your group has some way of managing and sorting all the issues that are raised.

Once you have a list of problems that need to be solved and have organized them accordingly, you’re then well-positioned for the next problem solving steps.

Problem tree   #define intentions   #create   #design   #issue analysis   A problem tree is a tool to clarify the hierarchy of problems addressed by the team within a design project; it represents high level problems or related sublevel problems.

13. SWOT Analysis

Chances are you’ve heard of the SWOT Analysis before. This problem-solving method focuses on identifying strengths, weaknesses, opportunities, and threats is a tried and tested method for both individuals and teams.

Start by creating a desired end state or outcome and bare this in mind – any process solving model is made more effective by knowing what you are moving towards. Create a quadrant made up of the four categories of a SWOT analysis and ask participants to generate ideas based on each of those quadrants.

Once you have those ideas assembled in their quadrants, cluster them together based on their affinity with other ideas. These clusters are then used to facilitate group conversations and move things forward. 

SWOT analysis   #gamestorming   #problem solving   #action   #meeting facilitation   The SWOT Analysis is a long-standing technique of looking at what we have, with respect to the desired end state, as well as what we could improve on. It gives us an opportunity to gauge approaching opportunities and dangers, and assess the seriousness of the conditions that affect our future. When we understand those conditions, we can influence what comes next.

14. Agreement-Certainty Matrix

Not every problem-solving approach is right for every challenge, and deciding on the right method for the challenge at hand is a key part of being an effective team.

The Agreement Certainty matrix helps teams align on the nature of the challenges facing them. By sorting problems from simple to chaotic, your team can understand what methods are suitable for each problem and what they can do to ensure effective results. 

If you are already using Liberating Structures techniques as part of your problem-solving strategy, the Agreement-Certainty Matrix can be an invaluable addition to your process. We’ve found it particularly if you are having issues with recurring problems in your organization and want to go deeper in understanding the root cause. 

Agreement-Certainty Matrix   #issue analysis   #liberating structures   #problem solving   You can help individuals or groups avoid the frequent mistake of trying to solve a problem with methods that are not adapted to the nature of their challenge. The combination of two questions makes it possible to easily sort challenges into four categories: simple, complicated, complex , and chaotic .  A problem is simple when it can be solved reliably with practices that are easy to duplicate.  It is complicated when experts are required to devise a sophisticated solution that will yield the desired results predictably.  A problem is complex when there are several valid ways to proceed but outcomes are not predictable in detail.  Chaotic is when the context is too turbulent to identify a path forward.  A loose analogy may be used to describe these differences: simple is like following a recipe, complicated like sending a rocket to the moon, complex like raising a child, and chaotic is like the game “Pin the Tail on the Donkey.”  The Liberating Structures Matching Matrix in Chapter 5 can be used as the first step to clarify the nature of a challenge and avoid the mismatches between problems and solutions that are frequently at the root of chronic, recurring problems.

Organizing and charting a team’s progress can be important in ensuring its success. SQUID (Sequential Question and Insight Diagram) is a great model that allows a team to effectively switch between giving questions and answers and develop the skills they need to stay on track throughout the process. 

Begin with two different colored sticky notes – one for questions and one for answers – and with your central topic (the head of the squid) on the board. Ask the group to first come up with a series of questions connected to their best guess of how to approach the topic. Ask the group to come up with answers to those questions, fix them to the board and connect them with a line. After some discussion, go back to question mode by responding to the generated answers or other points on the board.

It’s rewarding to see a diagram grow throughout the exercise, and a completed SQUID can provide a visual resource for future effort and as an example for other teams.

SQUID   #gamestorming   #project planning   #issue analysis   #problem solving   When exploring an information space, it’s important for a group to know where they are at any given time. By using SQUID, a group charts out the territory as they go and can navigate accordingly. SQUID stands for Sequential Question and Insight Diagram.

16. Speed Boat

To continue with our nautical theme, Speed Boat is a short and sweet activity that can help a team quickly identify what employees, clients or service users might have a problem with and analyze what might be standing in the way of achieving a solution.

Methods that allow for a group to make observations, have insights and obtain those eureka moments quickly are invaluable when trying to solve complex problems.

In Speed Boat, the approach is to first consider what anchors and challenges might be holding an organization (or boat) back. Bonus points if you are able to identify any sharks in the water and develop ideas that can also deal with competitors!   

Speed Boat   #gamestorming   #problem solving   #action   Speedboat is a short and sweet way to identify what your employees or clients don’t like about your product/service or what’s standing in the way of a desired goal.

17. The Journalistic Six

Some of the most effective ways of solving problems is by encouraging teams to be more inclusive and diverse in their thinking.

Based on the six key questions journalism students are taught to answer in articles and news stories, The Journalistic Six helps create teams to see the whole picture. By using who, what, when, where, why, and how to facilitate the conversation and encourage creative thinking, your team can make sure that the problem identification and problem analysis stages of the are covered exhaustively and thoughtfully. Reporter’s notebook and dictaphone optional.

The Journalistic Six – Who What When Where Why How   #idea generation   #issue analysis   #problem solving   #online   #creative thinking   #remote-friendly   A questioning method for generating, explaining, investigating ideas.

18. LEGO Challenge

Now for an activity that is a little out of the (toy) box. LEGO Serious Play is a facilitation methodology that can be used to improve creative thinking and problem-solving skills. 

The LEGO Challenge includes giving each member of the team an assignment that is hidden from the rest of the group while they create a structure without speaking.

What the LEGO challenge brings to the table is a fun working example of working with stakeholders who might not be on the same page to solve problems. Also, it’s LEGO! Who doesn’t love LEGO! 

LEGO Challenge   #hyperisland   #team   A team-building activity in which groups must work together to build a structure out of LEGO, but each individual has a secret “assignment” which makes the collaborative process more challenging. It emphasizes group communication, leadership dynamics, conflict, cooperation, patience and problem solving strategy.

19. What, So What, Now What?

If not carefully managed, the problem identification and problem analysis stages of the problem-solving process can actually create more problems and misunderstandings.

The What, So What, Now What? problem-solving activity is designed to help collect insights and move forward while also eliminating the possibility of disagreement when it comes to identifying, clarifying, and analyzing organizational or work problems. 

Facilitation is all about bringing groups together so that might work on a shared goal and the best problem-solving strategies ensure that teams are aligned in purpose, if not initially in opinion or insight.

Throughout the three steps of this game, you give everyone on a team to reflect on a problem by asking what happened, why it is important, and what actions should then be taken. 

This can be a great activity for bringing our individual perceptions about a problem or challenge and contextualizing it in a larger group setting. This is one of the most important problem-solving skills you can bring to your organization.

W³ – What, So What, Now What?   #issue analysis   #innovation   #liberating structures   You can help groups reflect on a shared experience in a way that builds understanding and spurs coordinated action while avoiding unproductive conflict. It is possible for every voice to be heard while simultaneously sifting for insights and shaping new direction. Progressing in stages makes this practical—from collecting facts about What Happened to making sense of these facts with So What and finally to what actions logically follow with Now What . The shared progression eliminates most of the misunderstandings that otherwise fuel disagreements about what to do. Voila!

20. Journalists  

Problem analysis can be one of the most important and decisive stages of all problem-solving tools. Sometimes, a team can become bogged down in the details and are unable to move forward.

Journalists is an activity that can avoid a group from getting stuck in the problem identification or problem analysis stages of the process.

In Journalists, the group is invited to draft the front page of a fictional newspaper and figure out what stories deserve to be on the cover and what headlines those stories will have. By reframing how your problems and challenges are approached, you can help a team move productively through the process and be better prepared for the steps to follow.

Journalists   #vision   #big picture   #issue analysis   #remote-friendly   This is an exercise to use when the group gets stuck in details and struggles to see the big picture. Also good for defining a vision.

Problem-solving techniques for developing solutions 

The success of any problem-solving process can be measured by the solutions it produces. After you’ve defined the issue, explored existing ideas, and ideated, it’s time to narrow down to the correct solution.

Use these problem-solving techniques when you want to help your team find consensus, compare possible solutions, and move towards taking action on a particular problem.

  • Improved Solutions
  • Four-Step Sketch
  • 15% Solutions
  • How-Now-Wow matrix
  • Impact Effort Matrix

21. Mindspin  

Brainstorming is part of the bread and butter of the problem-solving process and all problem-solving strategies benefit from getting ideas out and challenging a team to generate solutions quickly. 

With Mindspin, participants are encouraged not only to generate ideas but to do so under time constraints and by slamming down cards and passing them on. By doing multiple rounds, your team can begin with a free generation of possible solutions before moving on to developing those solutions and encouraging further ideation. 

This is one of our favorite problem-solving activities and can be great for keeping the energy up throughout the workshop. Remember the importance of helping people become engaged in the process – energizing problem-solving techniques like Mindspin can help ensure your team stays engaged and happy, even when the problems they’re coming together to solve are complex. 

MindSpin   #teampedia   #idea generation   #problem solving   #action   A fast and loud method to enhance brainstorming within a team. Since this activity has more than round ideas that are repetitive can be ruled out leaving more creative and innovative answers to the challenge.

22. Improved Solutions

After a team has successfully identified a problem and come up with a few solutions, it can be tempting to call the work of the problem-solving process complete. That said, the first solution is not necessarily the best, and by including a further review and reflection activity into your problem-solving model, you can ensure your group reaches the best possible result. 

One of a number of problem-solving games from Thiagi Group, Improved Solutions helps you go the extra mile and develop suggested solutions with close consideration and peer review. By supporting the discussion of several problems at once and by shifting team roles throughout, this problem-solving technique is a dynamic way of finding the best solution. 

Improved Solutions   #creativity   #thiagi   #problem solving   #action   #team   You can improve any solution by objectively reviewing its strengths and weaknesses and making suitable adjustments. In this creativity framegame, you improve the solutions to several problems. To maintain objective detachment, you deal with a different problem during each of six rounds and assume different roles (problem owner, consultant, basher, booster, enhancer, and evaluator) during each round. At the conclusion of the activity, each player ends up with two solutions to her problem.

23. Four Step Sketch

Creative thinking and visual ideation does not need to be confined to the opening stages of your problem-solving strategies. Exercises that include sketching and prototyping on paper can be effective at the solution finding and development stage of the process, and can be great for keeping a team engaged. 

By going from simple notes to a crazy 8s round that involves rapidly sketching 8 variations on their ideas before then producing a final solution sketch, the group is able to iterate quickly and visually. Problem-solving techniques like Four-Step Sketch are great if you have a group of different thinkers and want to change things up from a more textual or discussion-based approach.

Four-Step Sketch   #design sprint   #innovation   #idea generation   #remote-friendly   The four-step sketch is an exercise that helps people to create well-formed concepts through a structured process that includes: Review key information Start design work on paper,  Consider multiple variations , Create a detailed solution . This exercise is preceded by a set of other activities allowing the group to clarify the challenge they want to solve. See how the Four Step Sketch exercise fits into a Design Sprint

24. 15% Solutions

Some problems are simpler than others and with the right problem-solving activities, you can empower people to take immediate actions that can help create organizational change. 

Part of the liberating structures toolkit, 15% solutions is a problem-solving technique that focuses on finding and implementing solutions quickly. A process of iterating and making small changes quickly can help generate momentum and an appetite for solving complex problems.

Problem-solving strategies can live and die on whether people are onboard. Getting some quick wins is a great way of getting people behind the process.   

It can be extremely empowering for a team to realize that problem-solving techniques can be deployed quickly and easily and delineate between things they can positively impact and those things they cannot change. 

15% Solutions   #action   #liberating structures   #remote-friendly   You can reveal the actions, however small, that everyone can do immediately. At a minimum, these will create momentum, and that may make a BIG difference.  15% Solutions show that there is no reason to wait around, feel powerless, or fearful. They help people pick it up a level. They get individuals and the group to focus on what is within their discretion instead of what they cannot change.  With a very simple question, you can flip the conversation to what can be done and find solutions to big problems that are often distributed widely in places not known in advance. Shifting a few grains of sand may trigger a landslide and change the whole landscape.

25. How-Now-Wow Matrix

The problem-solving process is often creative, as complex problems usually require a change of thinking and creative response in order to find the best solutions. While it’s common for the first stages to encourage creative thinking, groups can often gravitate to familiar solutions when it comes to the end of the process. 

When selecting solutions, you don’t want to lose your creative energy! The How-Now-Wow Matrix from Gamestorming is a great problem-solving activity that enables a group to stay creative and think out of the box when it comes to selecting the right solution for a given problem.

Problem-solving techniques that encourage creative thinking and the ideation and selection of new solutions can be the most effective in organisational change. Give the How-Now-Wow Matrix a go, and not just for how pleasant it is to say out loud. 

How-Now-Wow Matrix   #gamestorming   #idea generation   #remote-friendly   When people want to develop new ideas, they most often think out of the box in the brainstorming or divergent phase. However, when it comes to convergence, people often end up picking ideas that are most familiar to them. This is called a ‘creative paradox’ or a ‘creadox’. The How-Now-Wow matrix is an idea selection tool that breaks the creadox by forcing people to weigh each idea on 2 parameters.

26. Impact and Effort Matrix

All problem-solving techniques hope to not only find solutions to a given problem or challenge but to find the best solution. When it comes to finding a solution, groups are invited to put on their decision-making hats and really think about how a proposed idea would work in practice. 

The Impact and Effort Matrix is one of the problem-solving techniques that fall into this camp, empowering participants to first generate ideas and then categorize them into a 2×2 matrix based on impact and effort.

Activities that invite critical thinking while remaining simple are invaluable. Use the Impact and Effort Matrix to move from ideation and towards evaluating potential solutions before then committing to them. 

Impact and Effort Matrix   #gamestorming   #decision making   #action   #remote-friendly   In this decision-making exercise, possible actions are mapped based on two factors: effort required to implement and potential impact. Categorizing ideas along these lines is a useful technique in decision making, as it obliges contributors to balance and evaluate suggested actions before committing to them.

27. Dotmocracy

If you’ve followed each of the problem-solving steps with your group successfully, you should move towards the end of your process with heaps of possible solutions developed with a specific problem in mind. But how do you help a group go from ideation to putting a solution into action? 

Dotmocracy – or Dot Voting -is a tried and tested method of helping a team in the problem-solving process make decisions and put actions in place with a degree of oversight and consensus. 

One of the problem-solving techniques that should be in every facilitator’s toolbox, Dot Voting is fast and effective and can help identify the most popular and best solutions and help bring a group to a decision effectively. 

Dotmocracy   #action   #decision making   #group prioritization   #hyperisland   #remote-friendly   Dotmocracy is a simple method for group prioritization or decision-making. It is not an activity on its own, but a method to use in processes where prioritization or decision-making is the aim. The method supports a group to quickly see which options are most popular or relevant. The options or ideas are written on post-its and stuck up on a wall for the whole group to see. Each person votes for the options they think are the strongest, and that information is used to inform a decision.

All facilitators know that warm-ups and icebreakers are useful for any workshop or group process. Problem-solving workshops are no different.

Use these problem-solving techniques to warm up a group and prepare them for the rest of the process. Activating your group by tapping into some of the top problem-solving skills can be one of the best ways to see great outcomes from your session.

  • Check-in/Check-out
  • Doodling Together
  • Show and Tell
  • Constellations
  • Draw a Tree

28. Check-in / Check-out

Solid processes are planned from beginning to end, and the best facilitators know that setting the tone and establishing a safe, open environment can be integral to a successful problem-solving process.

Check-in / Check-out is a great way to begin and/or bookend a problem-solving workshop. Checking in to a session emphasizes that everyone will be seen, heard, and expected to contribute. 

If you are running a series of meetings, setting a consistent pattern of checking in and checking out can really help your team get into a groove. We recommend this opening-closing activity for small to medium-sized groups though it can work with large groups if they’re disciplined!

Check-in / Check-out   #team   #opening   #closing   #hyperisland   #remote-friendly   Either checking-in or checking-out is a simple way for a team to open or close a process, symbolically and in a collaborative way. Checking-in/out invites each member in a group to be present, seen and heard, and to express a reflection or a feeling. Checking-in emphasizes presence, focus and group commitment; checking-out emphasizes reflection and symbolic closure.

29. Doodling Together  

Thinking creatively and not being afraid to make suggestions are important problem-solving skills for any group or team, and warming up by encouraging these behaviors is a great way to start. 

Doodling Together is one of our favorite creative ice breaker games – it’s quick, effective, and fun and can make all following problem-solving steps easier by encouraging a group to collaborate visually. By passing cards and adding additional items as they go, the workshop group gets into a groove of co-creation and idea development that is crucial to finding solutions to problems. 

Doodling Together   #collaboration   #creativity   #teamwork   #fun   #team   #visual methods   #energiser   #icebreaker   #remote-friendly   Create wild, weird and often funny postcards together & establish a group’s creative confidence.

30. Show and Tell

You might remember some version of Show and Tell from being a kid in school and it’s a great problem-solving activity to kick off a session.

Asking participants to prepare a little something before a workshop by bringing an object for show and tell can help them warm up before the session has even begun! Games that include a physical object can also help encourage early engagement before moving onto more big-picture thinking.

By asking your participants to tell stories about why they chose to bring a particular item to the group, you can help teams see things from new perspectives and see both differences and similarities in the way they approach a topic. Great groundwork for approaching a problem-solving process as a team! 

Show and Tell   #gamestorming   #action   #opening   #meeting facilitation   Show and Tell taps into the power of metaphors to reveal players’ underlying assumptions and associations around a topic The aim of the game is to get a deeper understanding of stakeholders’ perspectives on anything—a new project, an organizational restructuring, a shift in the company’s vision or team dynamic.

31. Constellations

Who doesn’t love stars? Constellations is a great warm-up activity for any workshop as it gets people up off their feet, energized, and ready to engage in new ways with established topics. It’s also great for showing existing beliefs, biases, and patterns that can come into play as part of your session.

Using warm-up games that help build trust and connection while also allowing for non-verbal responses can be great for easing people into the problem-solving process and encouraging engagement from everyone in the group. Constellations is great in large spaces that allow for movement and is definitely a practical exercise to allow the group to see patterns that are otherwise invisible. 

Constellations   #trust   #connection   #opening   #coaching   #patterns   #system   Individuals express their response to a statement or idea by standing closer or further from a central object. Used with teams to reveal system, hidden patterns, perspectives.

32. Draw a Tree

Problem-solving games that help raise group awareness through a central, unifying metaphor can be effective ways to warm-up a group in any problem-solving model.

Draw a Tree is a simple warm-up activity you can use in any group and which can provide a quick jolt of energy. Start by asking your participants to draw a tree in just 45 seconds – they can choose whether it will be abstract or realistic. 

Once the timer is up, ask the group how many people included the roots of the tree and use this as a means to discuss how we can ignore important parts of any system simply because they are not visible.

All problem-solving strategies are made more effective by thinking of problems critically and by exposing things that may not normally come to light. Warm-up games like Draw a Tree are great in that they quickly demonstrate some key problem-solving skills in an accessible and effective way.

Draw a Tree   #thiagi   #opening   #perspectives   #remote-friendly   With this game you can raise awarness about being more mindful, and aware of the environment we live in.

Each step of the problem-solving workshop benefits from an intelligent deployment of activities, games, and techniques. Bringing your session to an effective close helps ensure that solutions are followed through on and that you also celebrate what has been achieved.

Here are some problem-solving activities you can use to effectively close a workshop or meeting and ensure the great work you’ve done can continue afterward.

  • One Breath Feedback
  • Who What When Matrix
  • Response Cards

How do I conclude a problem-solving process?

All good things must come to an end. With the bulk of the work done, it can be tempting to conclude your workshop swiftly and without a moment to debrief and align. This can be problematic in that it doesn’t allow your team to fully process the results or reflect on the process.

At the end of an effective session, your team will have gone through a process that, while productive, can be exhausting. It’s important to give your group a moment to take a breath, ensure that they are clear on future actions, and provide short feedback before leaving the space. 

The primary purpose of any problem-solving method is to generate solutions and then implement them. Be sure to take the opportunity to ensure everyone is aligned and ready to effectively implement the solutions you produced in the workshop.

Remember that every process can be improved and by giving a short moment to collect feedback in the session, you can further refine your problem-solving methods and see further success in the future too.

33. One Breath Feedback

Maintaining attention and focus during the closing stages of a problem-solving workshop can be tricky and so being concise when giving feedback can be important. It’s easy to incur “death by feedback” should some team members go on for too long sharing their perspectives in a quick feedback round. 

One Breath Feedback is a great closing activity for workshops. You give everyone an opportunity to provide feedback on what they’ve done but only in the space of a single breath. This keeps feedback short and to the point and means that everyone is encouraged to provide the most important piece of feedback to them. 

One breath feedback   #closing   #feedback   #action   This is a feedback round in just one breath that excels in maintaining attention: each participants is able to speak during just one breath … for most people that’s around 20 to 25 seconds … unless of course you’ve been a deep sea diver in which case you’ll be able to do it for longer.

34. Who What When Matrix 

Matrices feature as part of many effective problem-solving strategies and with good reason. They are easily recognizable, simple to use, and generate results.

The Who What When Matrix is a great tool to use when closing your problem-solving session by attributing a who, what and when to the actions and solutions you have decided upon. The resulting matrix is a simple, easy-to-follow way of ensuring your team can move forward. 

Great solutions can’t be enacted without action and ownership. Your problem-solving process should include a stage for allocating tasks to individuals or teams and creating a realistic timeframe for those solutions to be implemented or checked out. Use this method to keep the solution implementation process clear and simple for all involved. 

Who/What/When Matrix   #gamestorming   #action   #project planning   With Who/What/When matrix, you can connect people with clear actions they have defined and have committed to.

35. Response cards

Group discussion can comprise the bulk of most problem-solving activities and by the end of the process, you might find that your team is talked out! 

Providing a means for your team to give feedback with short written notes can ensure everyone is head and can contribute without the need to stand up and talk. Depending on the needs of the group, giving an alternative can help ensure everyone can contribute to your problem-solving model in the way that makes the most sense for them.

Response Cards is a great way to close a workshop if you are looking for a gentle warm-down and want to get some swift discussion around some of the feedback that is raised. 

Response Cards   #debriefing   #closing   #structured sharing   #questions and answers   #thiagi   #action   It can be hard to involve everyone during a closing of a session. Some might stay in the background or get unheard because of louder participants. However, with the use of Response Cards, everyone will be involved in providing feedback or clarify questions at the end of a session.

Save time and effort discovering the right solutions

A structured problem solving process is a surefire way of solving tough problems, discovering creative solutions and driving organizational change. But how can you design for successful outcomes?

With SessionLab, it’s easy to design engaging workshops that deliver results. Drag, drop and reorder blocks  to build your agenda. When you make changes or update your agenda, your session  timing   adjusts automatically , saving you time on manual adjustments.

Collaborating with stakeholders or clients? Share your agenda with a single click and collaborate in real-time. No more sending documents back and forth over email.

Explore  how to use SessionLab  to design effective problem solving workshops or  watch this five minute video  to see the planner in action!

business problem solving process

Over to you

The problem-solving process can often be as complicated and multifaceted as the problems they are set-up to solve. With the right problem-solving techniques and a mix of creative exercises designed to guide discussion and generate purposeful ideas, we hope we’ve given you the tools to find the best solutions as simply and easily as possible.

Is there a problem-solving technique that you are missing here? Do you have a favorite activity or method you use when facilitating? Let us know in the comments below, we’d love to hear from you! 

' src=

thank you very much for these excellent techniques

' src=

Certainly wonderful article, very detailed. Shared!

Leave a Comment Cancel reply

Your email address will not be published. Required fields are marked *

business problem solving process

Facilitation skills can be applied in a variety of contexts, such as meetings, events, or in the classroom. Arguably, the setting in which facilitation skills shine the most is the design and running of workshops.  Workshops are dedicated spaces for interaction and learning. They are generally very hands-on, including activities such as simulations or games designed to practice specific skills. Leading workshops is an exciting, rewarding experience! In this piece we will go through some of the essential elements of workshop facilitation: What are workshops? Workshops are a time set aside for a group of people to learn new skills, come up with the best ideas, and solve problems together.…

A notebook and a computer

So, you’ve decided to convene a workshop, a special time set aside to work with a team on a certain topic or project. You are looking for brilliant ideas, new solutions and, of course, great participation. To begin the process that will get you to workshop success, you’ll need three ingredients: participants willing to join, someone to facilitate and guide them through the process (aka, you) and a detailed agenda or schedule of the activities you’ve planned. In this article we will focus on that last point: what makes a good agenda design? Having a good agenda is essential to ensure your workshops are well prepared and you can lead…

business problem solving process

What are facilitation skills and how to improve them?

Facilitation skills are the abilities you need in order to master working with a group. In essence, facilitation is about being aware of what happens when people get together to achieve a common goal, and directing their focus and attention in ways that serve the group itself.  When we work together at our best, we can achieve a lot more than anything we might attempt alone. Working with others is not always easy: teamwork is fraught with risks and pitfalls, but skilled facilitation can help navigate them with confidence. With the right approach, facilitation can be a workplace superpower.  Whatever your position, career path, or life story, you probably have…

Design your next workshop with SessionLab

Join the 150,000 facilitators using SessionLab

Sign up for free

  • Become a Partner

Profit.co

  • Product Overview Know more about our products
  • OKR Management Strategy-execution made easy
  • Performance Management Build a high performance team
  • Task Management Increase day-to-day productivity
  • Employee Engagement Engage, align and inspire your team
  • Integrations Integrate easily with all your favorite apps
  • Case Study Know why 1000s of brands trust Profit.co
  • Why Profit.co? Know what customers like you think about us.
  • OKR Certification Iterate Faster with OKRs Coaching & Certification Programs
  • OKR University OKR resources for beginners and experts
  • eBooks Books sharing our OKR expertise, ideas and insights
  • KPI Library Find the Most Effective KPIs for your business
  • OKR Examples Collection of OKR examples for your business
  • OKR Webinars Discover current trends and expert insights
  • Answers (FAQs) Get instant solutions to your queries
  • OKR Canvas Kick start your OKR implementation right away
  • Help Center Endless support in case you are stuck
  • Release Updates Outlined feature updates from our last releases
  • Try it Free
  • Schedule Demo

How do Great Leaders Solve Problems in Business?

How-Great-Leaders-Solve-Problems

Category: Behavioral Economics .

Companies today are expected to adapt and respond quickly to challenges in a rapidly changing business environment. Notwithstanding sound planning and flawless strategy execution, businesses can still face problems. While they foresee some of those problems, others can pop up unexpectedly. These unforeseeable problems make it essential for businesses to be agile enough to respond to those challenges quickly and have excellent problem-solving skills to navigate them successfully. Problem-solving is an indispensable part of business management.

In this article, we will examine the following in detail

Introduction

  • Understanding the Importance of Problem-Solving in Business
  • Types of Business Problems
  • Challenges in Problem-solving
  • Skills Required for Effective Problem-solving in Business
  • A Step-by-step Process to Problem-solving in Business

TL;DR Version

Problem-solving is integral to business success, dealing with diverse issues ranging from operational hiccups to strategic challenges. Identifying and understanding these problems is vital, but navigating potential obstacles during problem-solving, such as cognitive biases, resource constraints, and lack of information, is crucial.

Effective problem-solving skills include research and analytical abilities, creativity, decision-making, communication , time management, and leadership. These skills allow business leaders to dissect complex issues, ideate innovative solutions, make informed decisions, communicate effectively, manage time, and lead teams toward resolution.

The problem-solving process involves defining the problem, understanding its root cause, collecting relevant information, brainstorming potential solutions, evaluating these solutions, choosing the best one, developing and implementing an action plan, monitoring progress, evaluating results, and reflecting on the process for continuous improvement. This iterative process ensures that businesses are resolving immediate issues and refining their problem-solving mechanism for future challenges.

Unmanaged and unmitigated problems can cause severe consequences to businesses. They can lead to project delays, missed deadlines, and financial losses. Moreover, they may negatively impact employee morale and customer satisfaction and even damage the reputation of the company. So businesses must have strong problem-solving abilities.

When businesses have strong problem-solving abilities, they can quickly and proactively rise to the occasion and address the problems, minimizing their impact, preventing them from escalating into bigger problems, and capitalizing on opportunities that arise from those challenges. Ultimately, the problem-solving ability of a company can help them gain a competitive advantage.

To solve problems and fix issues, companies require leaders who can handle complex issues with ease and guide and motivate their teams to identify problems and develop creative solutions to overcome them. They can leverage the collective expertise and experience of the employees to make well-informed decisions that align with the business goals and objectives. Leaders also work with employees to foster a culture of problem-solving to help the company build a resilient business that can thrive in today’s dynamic business environment.

What is Problem-Solving in Business?

Problem-solving involves identifying, analyzing, and resolving issues or challenges arising during various business operations to achieve the desired outcomes and business goals. It involves a systematic approach to defining the problem, gathering relevant information, generating possible solutions, evaluating them, and implementing the best course of action.

Take action today and start paving the way for your business towards Problem- solving.

Book a free demo

we Cannot solve our problems with the same thinking we used when we created them. Albert Einstein

Why is Problem-Solving Important?

Problem-solving in business is important because of the following reasons.

1. Efficiency

Problems not only hinder progress but also reduce the efficiency of your operations by bringing everything to a halt/slowing you down, causing downtime, and costing you precious productivity. When left unchecked at the initial stages, these problems may also demand additional resources and budget to solve them, leading to cost overruns, losses, and inefficiency. So addressing the problems on time can help achieve efficiency.

2. Profitability

Profitability is one of the topmost priorities of an organization. So any impact on profitability is seen as a problem that requires immediate attention. Effective problem-solving helps businesses identify and address cost inefficiencies, optimize processes, and capitalize on new opportunities, thus improving the bottom line.

3. Leadership

Great leaders emerge during testing times. They can lead the employees, leverage collective effort and give a sense of direction toward finding solutions and workarounds. Problem-solving helps companies identify the right leaders.

4. Teamwork

Problem-solving requires team effort and participation. It calls for collaboration and communication between various departments, teams, and individuals. When companies manage to weather challenges and solve problems effectively, it brings the employees together to work towards a common cause, build stronger teams and create a habit of continuous improvement.

teamwork

5. Innovation

Problem-solving requires creativity and innovation to find solutions and workarounds. When a company fosters problem-solving culture, it automatically imbibes creative thinking and innovation. It gets reflected in developing new products, services, processes, and best practices.

6. Customer Satisfaction

Customer satisfaction helps businesses retain and find new customers. Problems with the products/services and customer support can lead to poor customer experience. Effective problem-solving helps businesses resolve customer complaints and issues quickly and satisfactorily, thus increasing customer loyalty and retention.

The Problems that Businesses Face Today and how they Solve Them

There are several different kinds of problems that businesses face, including

1. Strategic problems

Strategic problems are related to the long-term direction of a business. They typically involve decisions about resource allocation, product strategy, choosing the market, pricing strategy, product positioning, etc. Solving strategic problems requires a long-term vision, able leadership, and the ability to forecast market trends.

solution-concept

Business problem examples

Selecting the markets.

Businesses need to decide their focus on specific geographic markets, target customer segments, and product categories. They must make these decisions and select the focus areas by analyzing the data and insights into factors, including market size, competition, and the company’s core competencies.

Product development

Developing new products enables companies to remain relevant and achieve leadership in a highly competitive market scenario. They have to meet the customer requirements and provide a compelling reason for customers to purchase them. Solving the problem of new product development requires creativity and innovation and allocating resources for R&D. New products should be developed based on sound market analyses of customer requirements and pain points.

For instance, the need to learn and upskill anytime without compromising work hours pushed the companies to create e-learning platforms.

Positioning the company

Differentiating your business from the competition involves developing a strong brand identity, focusing on a specific niche or segment of the market, or offering unique value propositions. Setting the company apart by gaining a competitive advantage attracts customers. You can solve the problem of positioning your company by doing a SWOT analysis, finding your strengths and unique qualities that enable you to meet the customers’ requirements and address their pain points. You can base your brand identity, USP, and niche on your stand-out qualities that benefit customers. For instance, Volvo positions itself as the company that makes the safest cars in the world.

2. Operational problems

Operational problems are daily issues that hinder companies from efficiently delivering products or services to customers, affecting their ability to meet deadlines and targets. These problems arise from bottlenecks, inefficiencies, and system flaws. Addressing them involves identifying issues, providing employee training, upgrading technology, ensuring product testing and quality control, and implementing contingency planning, deadline management, and risk mitigation.

Operational-problems

Business problem-solving examples

Supply chain disruptions.

Supply chain disruptions happen when businesses face challenges in sourcing raw materials or components, leading to production delays or quality issues. For instance, during the pandemic, companies faced chip shortages, which led to losses and the inability to deliver products to customers on time. It also caused a rise in demand and an increase in prices.

Quality control issues

Quality control issues occur when design flaws or manufacturing issues impact the products. Businesses may need to identify and address quality issues to maintain customer satisfaction and loyalty. For instance, it is not uncommon to recall new automobile models, sometimes the ones from specific batches, to replace faulty components with redesigned parts before they might fail.

Managing staffing levels

Fluctuating staffing needs are part of operational issues. At any given time, if a company is understaffed, it can lead to operational inefficiency; if it is over-staffed, the company will suffer from cost infficiency. So, it requires careful planning. You can address the problem by either recruiting or downsizing and restructuring. For instance, the tech companies that designed software solutions for remote and hybrid work environments hired many employees during the pandemic. After the pandemic, when the need for these software solutions decreased, they had to downsize their workforce in light of the impending recession.

3. Financial problems

Financial problems are issues involving managing cash flow, revenue growth, and expenses. They are related to the financial health of a business. Businesses can fix them by managing costs effectively through process improvement and cost-cutting measures.

iterate_faster

Managing cash flow

Businesses must ensure that they have enough financial resources on hand to meet their obligations, such as payroll, vendor payments, logistics, managing retail channels, etc. For instance, many start-ups stall despite successful product development and prototyping, as they fail to secure adequate funding to bring the products to the market.

Identifying new revenue streams:

Businesses that focus on a particular niche are always vulnerable to competition and changing market conditions. They need to diversify their revenue streams to maintain growth and profitability. They may have to focus on research and product development to identify new revenue streams. For instance, some of the most successful and established DSLR camera manufacturers faced a major crisis when mirrorless cameras started eating into their market share. They had to revise the product strategy, downsize their manpower, and invest vast resources into developing competitive mirrorless systems to mitigate the company. On the contrary, DSLR manufacturers with diversified businesses remained more resilient.

Managing costs

Businesses must control expenses to maintain profitability. It may involve identifying areas where costs can be cut or negotiating better deals with vendors. For instance, Google is known to initiate moonshot projects. At the same time, they kill non-profitable projects quickly. It has helped the company retain leadership while managing costs judiciously.

4. Human resource problems

HR problems are issues related to recruiting, retaining, and developing talent. They are issues about the management of employees. Managing these problems requires assessing staffing needs, recruiting, restructuring, identifying training and upskilling needs, and retaining top talent through employee engagement initiatives, welfare measures, and career development opportunities.

Human-resource-problems

Retaining top talent

Retaining top talent can be a determining factor for the success of a company. Businesses must build an environment that attracts top talent by creating opportunities for career advancement and offering competitive compensation packages. For instance, highly specialized jobs with business-critical responsibilities, such as chief aero designers in motor racing teams, are hard to find and recruit. So retaining them is crucial for the success of the company.

Addressing employee morale and motivation issues

Lack of motivation, stagnant career, unfavorable team dynamics, etc., are some factors that cause a dip in employee morale. These factors can affect productivity and quality of work. Businesses must address these issues through employee engagement initiatives, career planning, team building, welfare measures, training, upskilling, etc.

Managing a diverse workforce

In an increasingly globalized work scenario, businesses must ensure that they create a work environment that is inclusive and welcoming to employees from different backgrounds and with diverse skill sets. They should also manage hybrid and remote work to address ambiguities and ensure clarity and synergy among teams and individuals based in various locations. For instance, many companies reserve certain positions for people of different racial/ethnic backgrounds or genders to meet their diversity goals. They also put policies and systems in place to prevent/address discrimination in the workplace.

Marketing problems

Marketing problems are related to promoting and selling a company’s products or services. Problems usually arise in understanding customer behavior and preferences and developing marketing strategies that appeal to those customers. Solving marketing problems requires revisiting the marketing strategy, understanding customer needs and behaviors by analyzing data, positioning the products more appealingly, and branding them better to reflect the strengths of the company and its product offerings.

Understanding customer needs and behavior

Customer needs to dictate the direction of product development and positioning. To design and deliver successful products, businesses must gain a deep understanding of customer needs, preferences, and pain points. For instance, the Japanese car makers capitalized on the high gas prices during the oil crisis and managed to capture the market in the US with their more efficient and reliable cars. The sudden loss in interest in the large, thirsty cars caused a considerable shift in the market, allowing Japanese car manufacturers to position their products in line with the customers’ preferences and succeed.

Developing a strong brand identity

Businesses must create a brand identity that resonates with the customers and sets them apart from competitors. For instance, it is common for companies to change their logo and brand identity in line with the changing trends, customer preferences, and product strategy.

Identifying new marketing channels and tactics

Businesses must be able to identify and adapt to changing customer preferences and identify new channels and tactics for reaching those customers. For instance, many retail businesses have adopted an eCommerce strategy to cater to mobile-savvy customers and to reach new markets.

Skills-Required-by-Business-Leaders

What Skills do Business Leaders Require for Effective Problem-Solving?

Following are some of the skills required for effective problem-solving in business.

1. Research and analytical skills

Problems have various potential implications. Trying to solve them straight away without doing proper research can cause further problems. Business leaders should study the problem to gain a deeper understanding, assess the solutions thoroughly, and test them before deploying them. They also need good analytical skills to review the performance metrics that indicate the problem areas and analyze information and data to understand the problem. Analytical skills help business leaders break down complex problems into smaller, more manageable parts, identify their root causes, avoid bounded rationality in decision making , and develop effective solutions and creative workarounds.

2. Creativity

When the problems are complex and multi-dimensional, they may require unique solutions that never existed before. Finding solutions for these problems requires creativity and a culture of innovation in the company. Business leaders must think creatively and tread unconventional paths to create innovative solutions. For instance, during the pandemic, when customers did not want to take the risk of going to retail stores to buy things but were reluctant to pay for the high shipping costs involved in e-commerce, retail businesses offered solutions such as BOPIS that let customers order online and collect their purchases safely from collection booth/kiosk at a convenient time. It helped them meet customer needs by offering the best of both worlds

3. Decision-making

Effective problem-solving in business requires sound decision-making skills. Problem-solving often involves making choices and tough decisions. For instance, the decision to axe a product line that has performed well in the past but has no future potential is a tough one to make. But retaining it will cost resources and yield decreasing returns. Great business leaders evaluate multiple options/solutions and make decisions in the company’s best interest. Being decisive or having decision clarity also means making the right decisions at the right time. Delays in decision-making can cause severe consequences even if you ultimately make the right decision. So business leaders must analyze everything and make the right decision when it matters the most.

4. Communication

Business leaders cannot single-handedly solve problems. Problem-solving requires a team effort. Good business leaders harness the potential of every employee with their communication skills and excellent coordination. They communicate effectively with colleagues, customers, and stakeholders to identify problems and develop solutions. For instance, in a crowded restaurant, the chef needs to coordinate the kitchen staff continuously, check if they are doing their part efficiently, control food quality, and make sure that food is served at the right table as quickly as possible. Lack of communication from the chef can escalate into a full-fledged nightmare, where customers keep waiting for their orders, kitchen staff make mistakes and deliver poor quality food, and the waiters get the flak for not serving food on time. Such situations can ruin the reputation of the restaurant and lead to the loss of customer trust. So good business leaders must communicate and build synergy among the individuals within and among other teams to get work done effectively.

5. Marketing problems

Marketing-problems

6. Leadership

Problem-solving is about working with many individuals and bringing the best out of them. So business leaders need great leadership qualities to motivate and inspire their teams to work together and solve problems. For example, innovations come from the R&D department; they get incorporated into products by the product development team, and the products are positioned and promoted in the market by the marketing team. Great business leaders lead product development and deployment by coordinating with all these teams, getting their insights, considering their views, and making important decisions regarding product strategy, product positioning, and branding. Situational Leadership is essential to deal with shifting priorities. Leaders motivate the teams and guide them in the right direction. Without good leadership, a company cannot solve problems effectively.

A Step-by-Step Process to Problem-Solving in Business

Problem-solving in business is often an iterative process. So the steps involved may need to be repeated or revised as new information becomes available. Problem-solving usually involves the following steps:

  • Define the problem; include any present symptoms or effects.
  • Understand the root cause of the problem and find out how it impacts the business.
  • Collect all the necessary information related to the problem by analyzing data, conducting interviews, researching, and seeking input from others.
  • Brainstorm with the stakeholders and generate potential solutions to the problem. Encourage open communication, collaboration, and participation among team members.
  • Weigh the pros and cons, evaluate all the potential solutions, analyze the risks, and consider the feasibility of each.
  • Choose the best solution from the evaluated solutions and consider how it will impact the stakeholders, including customers, employees, suppliers, and shareholders.
  • Develop an action plan to implement the chosen solution, detailing specific steps, timelines, and responsibilities.
  • Implement the solution, monitor progress closely, adjust the plan, make changes as required, and communicate those changes to the stakeholders.
  • Evaluate the results, determine if the solution addressed the problem, assess its effectiveness, and identify any areas for improvement.
  • Reflect on the problem-solving process, and identify and document the lessons learned.
  • Consider how you can improve the process for future problem-solving efforts.

10 Steps-Guide-to-Business-Problem-Solving

Problem Solving Key Takeaways

Problem-solving is a critical skill for business success. It involves identifying, understanding, and resolving issues in various facets of business operations and strategy. Common obstacles during problem-solving can include cognitive biases, resource constraints, and lack of information. Business leaders must navigate these potential pitfalls to ensure effective resolution of issues.

Essential skills for effective problem-solving include research and analytical abilities, creativity, decision-making, communication, time management, and leadership. These skills enable business leaders to dissect complex issues, devise innovative solutions, make informed decisions, effectively communicate, manage time, and guide teams toward resolution.

Problem-solving is an iterative process that involves multiple stages, from defining the problem and understanding its root cause to brainstorming and evaluating potential solutions, choosing the best one, and developing and implementing an action plan. This process also includes monitoring progress, evaluating results, and reflecting on the process for continuous improvement. An effective problem-solving method is the root cause analysis method. Ultimately, successful problem-solving in business is not just about resolving immediate issues but also about refining and improving the problem-solving process to tackle future challenges more effectively.

Problem Solving in Business FAQs

Answer: The four types of problem-solving strategies typically include:

Trial and Error: Involves trying different solutions until the problem is solved. It’s often used when there are limited possibilities that can be explored quickly.

Algorithm: A step-by-step procedure that, if followed correctly, will always lead to the solution of the problem. It is highly logical and often used in mathematical problems.

Heuristic: A general problem-solving strategy that involves using rules-of-thumb or shortcuts. Heuristics may not always yield the perfect solution but can often lead to a satisfactory one in a reasonable time frame.

Insight: Sometimes also referred to as creative problem-solving. It involves sudden realization, a flash of inspiration, or an ‘Aha!’ moment that provides a solution.

  • What is an example of problem-solving in business?

Answer: A common example of problem-solving in business is addressing a sudden drop in sales. The problem-solving process would begin with identifying and defining the problem (drop in sales). The next step would involve researching and analyzing the issue to understand its root cause, such as market conditions, competition, or internal factors. Brainstorming for potential solutions could include improving the product, adjusting pricing, or enhancing marketing efforts. After evaluating and selecting the best solution, an action plan would be developed and implemented. Progress would be monitored, results evaluated, and the process reflected upon for future problem-solving efforts.

  • Why is problem-solving important in business?

Answer: Problem-solving is vital in business as it enables organizations to navigate challenges and obstacles that could hamper their growth and success. It allows businesses to identify issues, understand their implications, and devise effective solutions. This process not only resolves the immediate issue at hand but also helps prevent similar problems in the future. Moreover, effective problem-solving can lead to improved business processes, innovation, and a competitive advantage. It also plays a crucial role in customer satisfaction, profitability, and overall sustainability of the business.

  • What is the most important problem-solving tool for business?

Answer: There isn’t a one-size-fits-all problem-solving tool for all businesses, as the most effective tool often depends on the specific problem and the business context. However, one universally important tool is effective communication. Clear, open, and honest communication fosters better understanding of problems, facilitates brainstorming of solutions, and aids in the implementation of action plans. Other essential tools include data analysis tools (for understanding and diagnosing problems), brainstorming techniques (for generating solutions), and project management tools (for implementing solutions).

Great leaders possess a unique problem-solving mindset that enables them to navigate complex challenges in the business world. By following this step-by-step guide, you can cultivate these essential skills and unlock your potential for success. Remember, problem-solving is not just about finding solutions but also about fostering a culture of innovation, collaboration, and continuous improvement. Embrace the challenges, seize the opportunities, and lead confidently as you embark on your journey towards becoming an exceptional problem solver and a remarkable leader in the business realm.

Bridge the Strategy Execution Gap with Profit.co

Related articles, how can ai assist and advance communication.

Nothing has quite revolutionized communication like technology has. Whether the invention of the telephone in 1876 or the internet in... Read more

How to Conquer Sunday Scaries?

Do you feel anxious, stressed, or depressed every Sunday night? Do you dread the thought of going back to work... Read more

Business Communication for 2024

The bedrock of efficiency is communication perhaps a blanket statement but one with a degree of truth. If you were... Read more

Understanding and Implementing Decision Rights

Introduction Decision clarity in an organization requires two essential parts: knowing what decisions to make and who should make them.... Read more

book_cover

What is Iterative Business Execution?

Get a Personalized Demo

Execute your strategy with the industry’s most preferred and intuitive software

loading

How it works

For Business

Join Mind Tools

Article • 4 min read

The Problem-Solving Process

Looking at the basic problem-solving process to help keep you on the right track.

By the Mind Tools Content Team

Problem-solving is an important part of planning and decision-making. The process has much in common with the decision-making process, and in the case of complex decisions, can form part of the process itself.

We face and solve problems every day, in a variety of guises and of differing complexity. Some, such as the resolution of a serious complaint, require a significant amount of time, thought and investigation. Others, such as a printer running out of paper, are so quickly resolved they barely register as a problem at all.

business problem solving process

Despite the everyday occurrence of problems, many people lack confidence when it comes to solving them, and as a result may chose to stay with the status quo rather than tackle the issue. Broken down into steps, however, the problem-solving process is very simple. While there are many tools and techniques available to help us solve problems, the outline process remains the same.

The main stages of problem-solving are outlined below, though not all are required for every problem that needs to be solved.

business problem solving process

1. Define the Problem

Clarify the problem before trying to solve it. A common mistake with problem-solving is to react to what the problem appears to be, rather than what it actually is. Write down a simple statement of the problem, and then underline the key words. Be certain there are no hidden assumptions in the key words you have underlined. One way of doing this is to use a synonym to replace the key words. For example, ‘We need to encourage higher productivity ’ might become ‘We need to promote superior output ’ which has a different meaning.

2. Analyze the Problem

Ask yourself, and others, the following questions.

  • Where is the problem occurring?
  • When is it occurring?
  • Why is it happening?

Be careful not to jump to ‘who is causing the problem?’. When stressed and faced with a problem it is all too easy to assign blame. This, however, can cause negative feeling and does not help to solve the problem. As an example, if an employee is underperforming, the root of the problem might lie in a number of areas, such as lack of training, workplace bullying or management style. To assign immediate blame to the employee would not therefore resolve the underlying issue.

Once the answers to the where, when and why have been determined, the following questions should also be asked:

  • Where can further information be found?
  • Is this information correct, up-to-date and unbiased?
  • What does this information mean in terms of the available options?

3. Generate Potential Solutions

When generating potential solutions it can be a good idea to have a mixture of ‘right brain’ and ‘left brain’ thinkers. In other words, some people who think laterally and some who think logically. This provides a balance in terms of generating the widest possible variety of solutions while also being realistic about what can be achieved. There are many tools and techniques which can help produce solutions, including thinking about the problem from a number of different perspectives, and brainstorming, where a team or individual write as many possibilities as they can think of to encourage lateral thinking and generate a broad range of potential solutions.

4. Select Best Solution

When selecting the best solution, consider:

  • Is this a long-term solution, or a ‘quick fix’?
  • Is the solution achievable in terms of available resources and time?
  • Are there any risks associated with the chosen solution?
  • Could the solution, in itself, lead to other problems?

This stage in particular demonstrates why problem-solving and decision-making are so closely related.

5. Take Action

In order to implement the chosen solution effectively, consider the following:

  • What will the situation look like when the problem is resolved?
  • What needs to be done to implement the solution? Are there systems or processes that need to be adjusted?
  • What will be the success indicators?
  • What are the timescales for the implementation? Does the scale of the problem/implementation require a project plan?
  • Who is responsible?

Once the answers to all the above questions are written down, they can form the basis of an action plan.

6. Monitor and Review

One of the most important factors in successful problem-solving is continual observation and feedback. Use the success indicators in the action plan to monitor progress on a regular basis. Is everything as expected? Is everything on schedule? Keep an eye on priorities and timelines to prevent them from slipping.

If the indicators are not being met, or if timescales are slipping, consider what can be done. Was the plan realistic? If so, are sufficient resources being made available? Are these resources targeting the correct part of the plan? Or does the plan need to be amended? Regular review and discussion of the action plan is important so small adjustments can be made on a regular basis to help keep everything on track.

Once all the indicators have been met and the problem has been resolved, consider what steps can now be taken to prevent this type of problem recurring? It may be that the chosen solution already prevents a recurrence, however if an interim or partial solution has been chosen it is important not to lose momentum.

Problems, by their very nature, will not always fit neatly into a structured problem-solving process. This process, therefore, is designed as a framework which can be adapted to individual needs and nature.

Join Mind Tools and get access to exclusive content.

This resource is only available to Mind Tools members.

Already a member? Please Login here

business problem solving process

Enhance your in-demand workplace skills

Top skills - leadership, management, communication and more - are available to develop using the 3,000+ resources available from Mind Tools.

Join Mind Tools today!

Sign-up to our newsletter

Subscribing to the Mind Tools newsletter will keep you up-to-date with our latest updates and newest resources.

Subscribe now

Business Skills

Personal Development

Leadership and Management

Most Popular

Newest Releases

Article aljc8px

5 Steps For Collaborating Successfully

Article a9lt9pd

Brush Up on Your Interview Skills!

Mind Tools Store

About Mind Tools Content

Discover something new today

Developing emotional intelligence.

Enhancing Your EQ

How to Perform Your Best in a Video Interview

Delivering a knockout interview online

How Emotionally Intelligent Are You?

Boosting Your People Skills

Self-Assessment

What's Your Leadership Style?

Learn About the Strengths and Weaknesses of the Way You Like to Lead

Recommended for you

An organisational approach to negotiation.

Developing a Healthy Culture of Negotiation

Business Operations and Process Management

Strategy Tools

Customer Service

Business Ethics and Values

Handling Information and Data

Project Management

Knowledge Management

Self-Development and Goal Setting

Time Management

Presentation Skills

Learning Skills

Career Skills

Communication Skills

Negotiation, Persuasion and Influence

Working With Others

Difficult Conversations

Creativity Tools

Self-Management

Work-Life Balance

Stress Management and Wellbeing

Coaching and Mentoring

Change Management

Team Management

Managing Conflict

Delegation and Empowerment

Performance Management

Leadership Skills

Developing Your Team

Talent Management

Problem Solving

Decision Making

Cart

  • SUGGESTED TOPICS
  • The Magazine
  • Newsletters
  • Managing Yourself
  • Managing Teams
  • Work-life Balance
  • The Big Idea
  • Data & Visuals
  • Reading Lists
  • Case Selections
  • HBR Learning
  • Topic Feeds
  • Account Settings
  • Email Preferences

Decision making and problem solving

  • Change management
  • Competitive strategy
  • Corporate strategy
  • Customer strategy

business problem solving process

Building Consensus Around Difficult Strategic Decisions

  • Scott D. Anthony
  • Natalie Painchaud
  • Andy Parker
  • October 27, 2023

business problem solving process

When Should Multinationals Move Back into Venezuela?

  • Pablo González Alonso
  • Alejandro Valerio
  • September 01, 2017

Betting on the Future: The Virtues of Contingent Contracts

  • Max H. Bazerman
  • James J. Gillespie
  • From the September–October 1999 Issue

How Anger Poisons Decision Making

  • Jennifer S. Lerner
  • Katherine Shonk
  • From the September 2010 Issue

business problem solving process

Assess Whether You Have a Data Quality Problem

  • Thomas C Redman
  • Thomas C. Redman
  • July 28, 2016

The Year Ahead: Make Better Decisions

  • Thomas H. Davenport
  • January 05, 2009

Winning in Turbulence: A Downturn Caution–Be Careful What You Cut

  • Darrell Rigby and Hernan Saenz
  • January 14, 2009

Is Jerry Yang’s Bond to Yahoo Too Tight?

  • Barbara Kellerman
  • May 06, 2008

business problem solving process

How Managers Can Build a Culture of Experimentation

  • Frank V. Cespedes
  • February 15, 2022

business problem solving process

Data Scientists Don't Scale

  • Stuart Frankel
  • May 22, 2015

business problem solving process

How Women Manage the Gendered Norms of Leadership

  • Alyson Meister
  • November 28, 2018

business problem solving process

A Checklist for Making Faster, Better Decisions

  • Erik Larson
  • March 07, 2016

business problem solving process

To Make Better Choices, Look at All Your Options Together

  • Shankha Basu
  • Krishna Savani
  • June 28, 2017

To Make Better Decisions, Combine Datasets

  • Rita Gunther McGrath
  • September 04, 2014

The Ethics of Resume Writing

  • Clinton D. Korver
  • May 19, 2008

Competing Through Manufacturing

  • Steven C. Wheelwright
  • Robert H. Hayes
  • From the January 1985 Issue

business problem solving process

The Risks You Can’t Foresee

  • Robert S. Kaplan
  • Herman B. Leonard
  • Anette Mikes
  • From the November–December 2020 Issue

Breakthrough ideas for 2006

  • From the February 2006 Issue

We Don’t Know What We Don’t Know

  • Tony Schwartz
  • July 26, 2011

Don’t Take the Wrong Decision Shortcuts

  • Steve Martin
  • November 10, 2010

business problem solving process

The Age of Outrage: How to Lead in a Polarized World

  • Karthik Ramanna
  • October 29, 2024

business problem solving process

Andersen Consulting - EMEAI: Reorganization for Revitalization

  • Ashish Nanda
  • Michael Y. Yoshino
  • October 11, 1995

Group Process in the Challenger Launch Decision (A)

  • Amy C. Edmondson
  • Laura R. Feldman
  • October 15, 2002

Utah Symphony and Utah Opera: A Merger Proposal

  • Thomas J. DeLong
  • David L. Ager
  • June 14, 2004

AirTrans Airways, West Coast Service

  • Jose Gomez-Ibanez
  • March 01, 2005

Mount Everest--1996

  • Michael A. Roberto
  • Gina M. Carioggia
  • November 12, 2002

Gentle Electric Co.

  • W. Earl Sasser Jr.
  • August 09, 2002

Extend Fertility

  • Myra M. Hart
  • Sylvia Sensiper
  • December 16, 2004

Aster DM Healthcare: Budgeting for a Crisis

  • V.G. Narayanan
  • Amy Klopfenstein
  • January 25, 2021

Saint Elizabeth: Innovation in Health Care

  • David Barrett
  • Ramasastry Chandrasekhar
  • December 08, 2016

business problem solving process

Create Detailed Action Plans

  • Harvard Business Publishing
  • May 16, 2016

business problem solving process

Prediction Machines, Updated and Expanded: The Simple Economics of Artificial Intelligence

  • Ajay Agrawal
  • Joshua Gans
  • Avi Goldfarb
  • November 15, 2022
  • Michael J. Roberts
  • December 01, 1997

Note on the Technical Aspects of Programming in Nonprofit Organizations

  • David W. Young
  • March 13, 2013

business problem solving process

Preparing a Budget

  • Harvard Business Press
  • May 04, 2009

business problem solving process

Open Talent: Leveraging the Global Workforce to Solve Your Biggest Challenges

  • John Winsor
  • Jin Hyun Paik
  • January 16, 2024

Hawaii Best, Inc. (A)

  • Steven C. Brandt
  • September 27, 2002

TwinHills Centro: Social Return on Investment

  • Mahrukh Tahir
  • Elizabeth Henderson
  • Irene M. Herremans
  • June 14, 2016

Evan Williams: From Blogger to Odeo (B)

  • Noam Wasserman
  • December 07, 2008

Hola, Bandida: Launching a Beverage Brand with Purpose

  • Violina Rindova
  • Rebecca Castillo
  • Katie Lanfranki
  • Allison Monroe
  • July 07, 2021

business problem solving process

Regrets Are Inevitable. Start Learning From Them.

  • ALISON BEARD
  • March 01, 2022

AquaSafi Purification Systems: Changing the Operating Model, Teaching Note

  • Elizabeth M.A. Grasby
  • June 08, 2017

business problem solving process

The Lost Art of Thinking for Yourself

  • June 18, 2020

Popular Topics

Partner center.

Five Steps for Business Problem Solving

  • Small Business
  • Business Planning & Strategy
  • Business Steps
  • ')" data-event="social share" data-info="Pinterest" aria-label="Share on Pinterest">
  • ')" data-event="social share" data-info="Reddit" aria-label="Share on Reddit">
  • ')" data-event="social share" data-info="Flipboard" aria-label="Share on Flipboard">

How to Resolve Communication Between Coworkers in a Business

How to be a more vocal leader, organizational procedures when dealing with problems.

  • Key Elements for Effective Behaviorial and Organizational Management
  • Negotiation Techniques & Framing

Problems are often opportunities in disguise, and they are almost always portals for learning. A methodical approach based on business problem-solving steps increases the odds of developing long-term solutions that can satisfy management, employees and customers. Following a clearly delineated set of problem-solving strategies can stop you from acting rashly and making decisions that aren't in your best interests or the best interests of your customers or investors. Taking a systematic approach to business management problems and solutions won't keep you from having problems in the future, but it gives you important tools to keep future situations from turning into crises.

Define the Problem

When you understand which aspect of a situation needs to be untangled and addressed, you position yourself to get to the heart of the issue rather than wasting time addressing irrelevant concerns. Say you hear through the grapevine that an indispensable employee is dissatisfied and looking for work elsewhere. Before offering that employee higher pay or a more flexible schedule, it's worth looking into whether the problem is unique to this individual employee or are all your workers dissatisfied. The former approach may retain a single staff member, while the latter could pre-empt ongoing staffing issues in the future.

Dissect the Problem

Most problems present themselves as specific situations that have spiraled out of control, but a problem may be short or long term, and it may be confined to a single person, or it may be widespread. If you include more variables in your analysis, you increase the odds of addressing a problem in a holistic and comprehensive way.

Identify Grounds for Decision-Making

After you finish identifying and analyzing the problem, chart a course of action for forging a solution. To define your decision-making criteria, you need to clarify your priorities. In the case of the dissatisfied indispensable employee, your decision-making depends on your desired outcome, whether that is keeping the employee on staff, keeping more employees longer term, or saving money by hiring new workers at a ground-level pay scale.

Develop Problem-Solving Strategies

The first solution that comes to mind may not be the best one for your situation. A solution to which you've given considerable thought isn't always the best option either. Position yourself to implement a thoughtful and useful solution if you have multiple options and evaluate the pros and cons of each. In addition to developing multiple solutions, it's prudent to engage multiple stakeholders when solving problems, especially if these problems call for systems-level solutions.

Choose the Best Solution

If you've given quality thought and attention to identifying and analyzing a problem and then developing possible solutions, you have already laid the groundwork for choosing an optimal solution. No solution is foolproof, but if you use clarity and logic and avoid acting rashly, you're unlikely to do something you regret, and you could even make a wise decision that benefits everyone involved.

  • Westside Toastmasters: Five-Step Problem-Solving Approach
  • EBA: 5 Step Problem Solving Approach

Devra Gartenstein founded her first food business in 1987. In 2013 she transformed her most recent venture, a farmers market concession and catering company, into a worker-owned cooperative. She does one-on-one mentoring and consulting focused on entrepreneurship and practical business skills.

Related Articles

How do i improve business decision making, strategies for critical thinking & problem solving, what is a contingency viewpoint, how to address employee bickering, how to get rid of an unhappy employee, how to talk to employees about performance evaluations, how to address negative attitudes with sales personnel, how to build flexibility with decision making, how to fix employee turnover with leadership concepts, most popular.

  • 1 How Do I Improve Business Decision Making?
  • 2 Strategies for Critical Thinking & Problem Solving
  • 3 What Is a Contingency Viewpoint?
  • 4 How to Address Employee Bickering

Problem-Solving in Business: PROBLEM-SOLVING DEFINED AND WHY IT IS IMPORTANT

  • ABOUT THIS LIBGUIDE
  • PROBLEM-SOLVING DEFINED AND WHY IT IS IMPORTANT
  • SKILLS AND QUALIFICATIONS NEEDED IN PROBLEM-SOLVING
  • PROBLEM-SOLVING STEPS
  • CASE STUDIES
  • MORE HELPFUL RESOURCES

Profile Photo

  • << Previous: ABOUT THIS LIBGUIDE
  • Next: SKILLS AND QUALIFICATIONS NEEDED IN PROBLEM-SOLVING >>
  • Last Updated: Feb 8, 2024 1:33 PM
  • URL: https://libguides.nypl.org/problem_solving_in_business
  • Business Essentials
  • Leadership & Management
  • Credential of Leadership, Impact, and Management in Business (CLIMB)
  • Entrepreneurship & Innovation
  • *New* Digital Transformation
  • Finance & Accounting
  • Business in Society
  • For Organizations
  • Support Portal
  • Media Coverage
  • Founding Donors
  • Leadership Team

business problem solving process

  • Harvard Business School →
  • HBS Online →
  • Business Insights →

Business Insights

Harvard Business School Online's Business Insights Blog provides the career insights you need to achieve your goals and gain confidence in your business skills.

  • Career Development
  • Communication
  • Decision-Making
  • Earning Your MBA
  • Negotiation
  • News & Events
  • Productivity
  • Staff Spotlight
  • Student Profiles
  • Work-Life Balance
  • Alternative Investments
  • Business Analytics
  • Business Strategy
  • Business and Climate Change
  • Design Thinking and Innovation
  • Digital Marketing Strategy
  • Disruptive Strategy
  • Economics for Managers
  • Entrepreneurship Essentials
  • Financial Accounting
  • Global Business
  • Launching Tech Ventures
  • Leadership Principles
  • Leadership, Ethics, and Corporate Accountability
  • Leading with Finance
  • Management Essentials
  • Negotiation Mastery
  • Organizational Leadership
  • Power and Influence for Positive Impact
  • Strategy Execution
  • Sustainable Business Strategy
  • Sustainable Investing
  • Winning with Digital Platforms

What Is Creative Problem-Solving & Why Is It Important?

Business team using creative problem-solving

  • 01 Feb 2022

One of the biggest hindrances to innovation is complacency—it can be more comfortable to do what you know than venture into the unknown. Business leaders can overcome this barrier by mobilizing creative team members and providing space to innovate.

There are several tools you can use to encourage creativity in the workplace. Creative problem-solving is one of them, which facilitates the development of innovative solutions to difficult problems.

Here’s an overview of creative problem-solving and why it’s important in business.

Access your free e-book today.

What Is Creative Problem-Solving?

Research is necessary when solving a problem. But there are situations where a problem’s specific cause is difficult to pinpoint. This can occur when there’s not enough time to narrow down the problem’s source or there are differing opinions about its root cause.

In such cases, you can use creative problem-solving , which allows you to explore potential solutions regardless of whether a problem has been defined.

Creative problem-solving is less structured than other innovation processes and encourages exploring open-ended solutions. It also focuses on developing new perspectives and fostering creativity in the workplace . Its benefits include:

  • Finding creative solutions to complex problems : User research can insufficiently illustrate a situation’s complexity. While other innovation processes rely on this information, creative problem-solving can yield solutions without it.
  • Adapting to change : Business is constantly changing, and business leaders need to adapt. Creative problem-solving helps overcome unforeseen challenges and find solutions to unconventional problems.
  • Fueling innovation and growth : In addition to solutions, creative problem-solving can spark innovative ideas that drive company growth. These ideas can lead to new product lines, services, or a modified operations structure that improves efficiency.

Design Thinking and Innovation | Uncover creative solutions to your business problems | Learn More

Creative problem-solving is traditionally based on the following key principles :

1. Balance Divergent and Convergent Thinking

Creative problem-solving uses two primary tools to find solutions: divergence and convergence. Divergence generates ideas in response to a problem, while convergence narrows them down to a shortlist. It balances these two practices and turns ideas into concrete solutions.

2. Reframe Problems as Questions

By framing problems as questions, you shift from focusing on obstacles to solutions. This provides the freedom to brainstorm potential ideas.

3. Defer Judgment of Ideas

When brainstorming, it can be natural to reject or accept ideas right away. Yet, immediate judgments interfere with the idea generation process. Even ideas that seem implausible can turn into outstanding innovations upon further exploration and development.

4. Focus on "Yes, And" Instead of "No, But"

Using negative words like "no" discourages creative thinking. Instead, use positive language to build and maintain an environment that fosters the development of creative and innovative ideas.

Creative Problem-Solving and Design Thinking

Whereas creative problem-solving facilitates developing innovative ideas through a less structured workflow, design thinking takes a far more organized approach.

Design thinking is a human-centered, solutions-based process that fosters the ideation and development of solutions. In the online course Design Thinking and Innovation , Harvard Business School Dean Srikant Datar leverages a four-phase framework to explain design thinking.

The four stages are:

The four stages of design thinking: clarify, ideate, develop, and implement

  • Clarify: The clarification stage allows you to empathize with the user and identify problems. Observations and insights are informed by thorough research. Findings are then reframed as problem statements or questions.
  • Ideate: Ideation is the process of coming up with innovative ideas. The divergence of ideas involved with creative problem-solving is a major focus.
  • Develop: In the development stage, ideas evolve into experiments and tests. Ideas converge and are explored through prototyping and open critique.
  • Implement: Implementation involves continuing to test and experiment to refine the solution and encourage its adoption.

Creative problem-solving primarily operates in the ideate phase of design thinking but can be applied to others. This is because design thinking is an iterative process that moves between the stages as ideas are generated and pursued. This is normal and encouraged, as innovation requires exploring multiple ideas.

Creative Problem-Solving Tools

While there are many useful tools in the creative problem-solving process, here are three you should know:

Creating a Problem Story

One way to innovate is by creating a story about a problem to understand how it affects users and what solutions best fit their needs. Here are the steps you need to take to use this tool properly.

1. Identify a UDP

Create a problem story to identify the undesired phenomena (UDP). For example, consider a company that produces printers that overheat. In this case, the UDP is "our printers overheat."

2. Move Forward in Time

To move forward in time, ask: “Why is this a problem?” For example, minor damage could be one result of the machines overheating. In more extreme cases, printers may catch fire. Don't be afraid to create multiple problem stories if you think of more than one UDP.

3. Move Backward in Time

To move backward in time, ask: “What caused this UDP?” If you can't identify the root problem, think about what typically causes the UDP to occur. For the overheating printers, overuse could be a cause.

Following the three-step framework above helps illustrate a clear problem story:

  • The printer is overused.
  • The printer overheats.
  • The printer breaks down.

You can extend the problem story in either direction if you think of additional cause-and-effect relationships.

4. Break the Chains

By this point, you’ll have multiple UDP storylines. Take two that are similar and focus on breaking the chains connecting them. This can be accomplished through inversion or neutralization.

  • Inversion: Inversion changes the relationship between two UDPs so the cause is the same but the effect is the opposite. For example, if the UDP is "the more X happens, the more likely Y is to happen," inversion changes the equation to "the more X happens, the less likely Y is to happen." Using the printer example, inversion would consider: "What if the more a printer is used, the less likely it’s going to overheat?" Innovation requires an open mind. Just because a solution initially seems unlikely doesn't mean it can't be pursued further or spark additional ideas.
  • Neutralization: Neutralization completely eliminates the cause-and-effect relationship between X and Y. This changes the above equation to "the more or less X happens has no effect on Y." In the case of the printers, neutralization would rephrase the relationship to "the more or less a printer is used has no effect on whether it overheats."

Even if creating a problem story doesn't provide a solution, it can offer useful context to users’ problems and additional ideas to be explored. Given that divergence is one of the fundamental practices of creative problem-solving, it’s a good idea to incorporate it into each tool you use.

Brainstorming

Brainstorming is a tool that can be highly effective when guided by the iterative qualities of the design thinking process. It involves openly discussing and debating ideas and topics in a group setting. This facilitates idea generation and exploration as different team members consider the same concept from multiple perspectives.

Hosting brainstorming sessions can result in problems, such as groupthink or social loafing. To combat this, leverage a three-step brainstorming method involving divergence and convergence :

  • Have each group member come up with as many ideas as possible and write them down to ensure the brainstorming session is productive.
  • Continue the divergence of ideas by collectively sharing and exploring each idea as a group. The goal is to create a setting where new ideas are inspired by open discussion.
  • Begin the convergence of ideas by narrowing them down to a few explorable options. There’s no "right number of ideas." Don't be afraid to consider exploring all of them, as long as you have the resources to do so.

Alternate Worlds

The alternate worlds tool is an empathetic approach to creative problem-solving. It encourages you to consider how someone in another world would approach your situation.

For example, if you’re concerned that the printers you produce overheat and catch fire, consider how a different industry would approach the problem. How would an automotive expert solve it? How would a firefighter?

Be creative as you consider and research alternate worlds. The purpose is not to nail down a solution right away but to continue the ideation process through diverging and exploring ideas.

Which HBS Online Entrepreneurship and Innovation Course is Right for You? | Download Your Free Flowchart

Continue Developing Your Skills

Whether you’re an entrepreneur, marketer, or business leader, learning the ropes of design thinking can be an effective way to build your skills and foster creativity and innovation in any setting.

If you're ready to develop your design thinking and creative problem-solving skills, explore Design Thinking and Innovation , one of our online entrepreneurship and innovation courses. If you aren't sure which course is the right fit, download our free course flowchart to determine which best aligns with your goals.

business problem solving process

About the Author

206-659-6067

  • Driving Solutions Strategic Intensive
  • Growth Framework Reset
  • Business Base Camp Consultation

4 Steps for Business Problem Solving to Get Results

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

The steps to problem solving are universal, and we can apply all to situations throughout life – including business. Let’s imagine that the last problem we worked on is one that holds everyone’s focus, yet to which there will seemingly never – ever – be an end. One infuriating obstacle follows another. There is a lot of backtracking, and redoing different work. For such situations, the steps to problem solving represent a good beginning for shaking things up. We might just be able to fix more by knowing four simple actions to start building up those problem-solving muscles.

But wait a moment. How do we determine if the perceived “problem” is really 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) over and over indicates that these are actually symptoms. There is a problem lurking in the shadows that is waiting to be discovered.

To solve a symptom, a recurring issue that has a process in place for resolution, options always exist…

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

Though solving a root cause takes more up-front commitment, it also 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 (time and budget).

Luckily, methods exist to help us become “unstuck” from all manner of challenging situations. Some are fancy and some aren’t. What Red Direction does is not fancy. It’s effective. It’s repetitive. It produces results.

So, there’s no trick, no gimmick to the steps. There is work. We do have to bring the will, the drive, the commitment to become proficient at problem solving, which is is a skill that is sorely lacking in all levels of business today.

To lead by example, to add value to the company and the team, to meet goals requires 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 together to find THE custom solution for your problem.

Ever hear the colloquialism “can’t see the forest for the trees”? This is a common pitfall serving to diminish a Curiosity Mindset and detracting from the problem-solving process.

Remembering to reach beyond never-ending day-to-day tasks and into a review process of business goals is paramount to ultimately and successfully problem-solving … whatever comes up.

While we can never get rid of squeaky wheels, fires and unexpected problems that make everything else stop … not all problems HAVE TO make things come to a standstill. When this type of cycle happens, everyone gets into a pattern that turns into a bad habit. It’s comfortable to have things to do that fill the day and recurring problems to solve … until something changes and processes stop working. It’s really hard – painful, in fact – when things stop working. Such pain helps us realize we were stuck and didn’t even know it.

When we practice steps, skills start to emerge that will become second nature over time. It’s a way to add to our are natural gifts. To expand abilities and make it look easy, we just have to start. To have the courage take on something new. We choose.

The next time there is a particular outcome that is important, and a problem standing in your way, pull out these steps. Your commitment, your responsibility will make it happen.

With a Curiosity Mindset, we make the commitment to be open to answers and information beyond the core group – which requires a definitive process applicable not just to a single problem but to any that occur in business. (And, of course, there will always be quandaries 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 .

Here is a bit more on each of the steps:

1. Recognize there’s a problem.

How? There’s something in the way, something dislikable. Ask how much you care about this issue (i.e. are you willing to go further towards a solution).

2. Understand that data is necessary.

How do you get data for consideration, and furthermore, how do you obtain uncommon data? Common: search on the internet. Uncommon: ask the people closest to you. Always 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 go collect someone else’s reports and/or data!

3. Gather solutions.

What are the possibilities? This is where opportunities come in. Remember not every problem is an opportunity – is this particular problem one that matters to you? (If not, let it go!) If it does matter, what are the solutions?

4. Choose a solution.

Of those identified, which one makes the most sense and/or presents the greatest opportunity to address everything about the problem? Get it implemented and observe the results.

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

If achieving your end goal the first time around, terrific. However, business, like life, is often composed of a not-so-simple messiness. Sometimes more time is required to get more data. Sometimes it can be that new information came out of the process. Sometimes a different solution turns out to be better. We iterate our way through problems to complete resolution. Just like riding a bike and then adding some tricks (balancing with no hands or doing pop-a-wheelies), we build on what we know.

Give yourself 30 days. Keep these steps on hand. Use them every day – even on seemingly straightforward problems. See what happens. Build a Curiosity Mindset and build a new skill at the same time.

Need additional help or resources with regards to a particular problem? Get Unstuck Quick . The Red Direction team grabs chaos by the hand to handle it together. 

_____________________________________________________________________________________

We’d love to hear your insights and experiences on the problem solving in business. Please share your thoughts in the comment section.

Listen to the BOLD Business Podcast

Search Blogs and Podcasts

More Posts in This Category

U.S. flag

An official website of the United States government

Here’s how you know

The .gov means it’s official. Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.

The site is secure. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Consumer Alerts

Your right to get information about funeral services by phone.

View all Consumer Alerts

Get Consumer Alerts

Credit, Loans, and Debt

Learn about getting and using credit, borrowing money, and managing debt.

View Credit, Loans, and Debt

What to do if you can’t make car payments

Jobs and making money.

What to know when you're looking for a job or more education, or considering a money-making opportunity or investment.

View Jobs and Making Money

Job scams targeting college students are getting personal

Unwanted calls, emails, and texts.

What to do about unwanted calls, emails, and text messages that can be annoying, might be illegal, and are probably scams.

View Unwanted Calls, Emails, and Texts

Fake shipping notification emails and text messages: What you need to know this holiday season

Identity theft and online security.

How to protect your personal information and privacy, stay safe online, and help your kids do the same.

View Identity Theft and Online Security

  • Search Show/hide Search menu items Items per page 20 50 100 Filters Fulltext search

Solving Problems With a Business: Returns, Refunds, and Other Resolutions

Facebook

Go Back to the Store or Website

Write a letter, get outside help, post an online review, consider dispute resolution alternatives.

Before you go back to the store or website, learn about the company’s return policies and collect documents related to your purchase.

  • Look for return policies, deadlines, customer service numbers and other important information on receipts, product packaging, warranties , or the seller’s website.
  • Check deadlines. Many stores will not take returns or exchanges after a certain time, like 30 or 90 days. Promptly return your undamaged item to have the best chance of a refund, exchange, or store credit. You might have to contact the manufacturer to return a defective or damaged product after a seller’s return deadline.
  • Collect key documents. Gather your receipts, warranties, canceled checks, credit card statements, invoices, contracts, or other documents. Make copies of documents to give the business and keep the originals. If you go to a store, bring any tags and original packaging you have.

Tell the business what happened. Give details about the problem, and about the resolution you want.

  • Explain the problem. Is the product defective or damaged? Did you get poor service or repairs that didn’t fix the problem? Reputable businesses want to know about their customers’ problems so they can act and avoid future complaints.
  • Be clear about what you want. Say if you want a full refund, an exchange, a store credit, a markdown on the item you bought, or a percentage discount on a future purchase. Explain why you want that result. Sellers are often more willing to offer a store credit than a refund. It’s less expensive for them and keeps you as a customer.
  • Ask to speak with a manager. If a customer representative doesn’t offer the result you want, be calm, polite, and persistent. Ask for a manager or supervisor. A manager will likely have more flexibility and authority to resolve the issue. Explain the problem to each person you talk with and describe what you want them to do.
  • Keep notes about what you did to solve the problem. List the people you talked to, the date of your conversation, and what they promised to do. If you chat online or send forms to customer service, save a copy of what you wrote, or take a picture of the screen before you exit, and note the date.

If you can’t resolve the problem by going back to the store or website, use this sample letter to write an effective complaint. When you write

Give your name, mailing address, and email address. Include your phone number too, if you want the business to contact you that way. Include your account number if you have an account with the business, and the related order or transaction number.

Give the basics. Describe the product or service you bought and important details of the transaction. Give the product’s name, its serial or model number, and the date and place you bought it or had it repaired or serviced.

Explain the problem. For example, say the product doesn’t work, you were billed incorrectly, something wasn’t disclosed clearly, or a product’s features were misrepresented.

Tell the business what you want. For example, say you want a refund, repair, exchange, or store credit.

Include copies of relevant documents , like receipts, repair orders, and warranties. Keep the originals.

Describe your next steps. Say how long you’ll wait for the business to answer. Give time for the business to act, and let it know you’ll report the matter to your state attorney general or state consumer protection office if you don’t hear by your deadline.

Make a copy of your letter to keep. Send your letter by certified mail and ask for a return receipt. If you send your complaint letter online, print the screen that shows your letter or take a screenshot of your letter before you click “submit.”

If you’re not satisfied with a business’s response to your complaint

Contact your state attorney general or state consumer protection office . These government agencies might mediate complaints, conduct investigations, and take other action against those who break consumer protection laws.

Contact a national consumer organization. Groups like Call for Action and Consumer Action try to help people with complaints.

Contact your local Better Business Bureau The Better Business Bureau is made up of organizations supported by local businesses. Local Better Business Bureaus try to resolve customer complaints.

File a report with the FTC. The FTC doesn’t resolve individual complaints, but your report helps law enforcement detect patterns and might lead to an investigation. Tell your story at ReportFraud.ftc.gov .

Visit USA.gov/complaints  to get information about filing complaints about specific types of products, steps to filing a complaint with a seller or manufacturer, links to product recall information, and more.

If you can’t resolve the problem and feel the business has been unfair, write an online review. The Consumer Review Fairness Act protects your ability to share your honest opinions about a business’s products, services, or conduct, in any forum, including social media.

It’s illegal for companies to threaten or penalize you for posting honest reviews. Many companies check social media and might reply if they see you’re dissatisfied with their response to your complaint.

Many consumers and businesses use dispute resolution programs instead of going to court.

  • In mediation , a neutral third party helps you and the other party try to resolve the problem. However, it's up to you and the other party to reach an agreement.
  • In arbitration you and the other party might appear at hearings, present evidence, or question each other’s witnesses, although the setting is less formal than court. An arbitrator or panel makes a decision or award after you present your case. The decision might be legally binding.

Many dispute resolution programs are voluntary, so you decide whether to use them. But in some states, a court might order you to try mediation or arbitration. Some companies require you to use arbitration for disputes and give up your right to go to court. Check your contract or product packaging to see what a business requires.

Your state consumer protection office or bar association might be able to suggest alternative dispute resolution programs in your area.

Small claims courts can resolve many financial disputes. The dollar limits on claims vary by state, but some states set the limit as high as $25,000. The costs of using small claims courts is relatively low, the procedures are simple, and you usually don’t need a lawyer. Check with your local small claims court for information about how to file your lawsuit.

If all else fails, consider a lawsuit. You’ll be able to sue for damages or any other type of relief the court awards, including legal fees. A lawyer can advise you about your options.

IMAGES

  1. The 5 Steps of Problem Solving

    business problem solving process

  2. 5 step problem solving method

    business problem solving process

  3. identify and explain the 7 stages of the problem solving process

    business problem solving process

  4. An Overview Of 9 Step Problem Solving Model

    business problem solving process

  5. Problem-Solving Process in 6 Steps

    business problem solving process

  6. 7 steps to master problem solving methodology

    business problem solving process

VIDEO

  1. 01 Understand the Problem Statement and business Case

  2. Business Health Checkup

  3. (3) "BUSINESS PROBLEM SOLVING" by Dr Jibon Kumar Sharma MIMS,M.U. @ MTI, Mantripukhri on 09feb2024

  4. Problem Solving process

  5. Best Practices in 8D

COMMENTS

  1. 10 Step Process for Effective Business Problem Solving

    Problem solving in business relates to establishing processes that mitigate or remove obstacles currently preventing you from reaching strategic goals. These are typically complex issues that create a gap between actual results and your desired outcome.

  2. 7 Steps to Effective Business Problem Solving

    Problem-solving refers to the process to remove or mitigate obstacles that prevent a business from reaching its strategic goals. These can be issues that widen the gap between results and desired outcomes that do not have an obvious or immediate solution. They can be present in operational processes, teams or throughout an organization.

  3. Business problem solving

    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 c...

  4. How to master the seven-step problem-solving process

    To discuss the art of problem solving, I sat down in California with McKinsey senior partner Hugo Sarrazin and also with Charles Conn. Charles is a former McKinsey partner, entrepreneur, executive, and coauthor of the book Bulletproof Problem Solving: The One Skill That Changes Everything [John Wiley & Sons, 2018].

  5. How to Solve Problems

    How to Solve Problems Collaboration and teams How to Solve Problems To bring the best ideas forward, teams must build psychological safety. by Laura Amico October 29, 2021 HBR...

  6. Effective Problem-Solving Techniques in Business

    Purdue Online 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.

  7. 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.

  8. The Right Way to Solve Complex Business Problems

    December 04, 2018 Corey Phelps, a strategy professor at McGill University, says great problem solvers are hard to find. Even seasoned professionals at the highest levels of organizations...

  9. Adopting the right problem-solving approach

    Then check out more insights on problem-solving approaches, and dive into examples of pressing challenges organizations are contending with now. Five routes to more innovative problem solving. Author Talks: Get on the performance curve. Strategy to beat the odds. How to master the seven-step problem-solving process. Want better strategies?

  10. What is Problem Solving? Steps, Process & Techniques

    1. Define the problem Diagnose the situation so that your focus is on the problem, not just its symptoms. Helpful problem-solving techniques include using flowcharts to identify the expected steps of a process and cause-and-effect diagrams to define and analyze root causes. The sections below help explain key problem-solving steps.

  11. Why Problem-Solving Skills Are Essential for Leaders

    Problem-solving is the process of systematically removing barriers that prevent you or others from reaching goals. Your business removes obstacles in customers' lives through its products or services, just as you can remove obstacles that keep your team from achieving business goals.

  12. The Problem-Definition Process

    Justify the need. Understand the problem and its wider context. Write a problem statement. The Problem-Definition Process encourages you to define and understand the problem that you're trying to solve, in detail. It also helps you confirm that solving the problem contributes towards your organization's objectives.

  13. Problem-Solving in Business: PROBLEM-SOLVING STEPS

    Problem-Solving in Business: PROBLEM-SOLVING STEPS This guide is designed to help you approach your business problem-solving process in a systematic way through information sources that can help you understand your situation more clearly and provide a distinct direction towards the appropriate solution. ABOUT THIS LIBGUIDE

  14. 35 problem-solving techniques and methods for solving ...

    Every effective problem solving process begins with an agenda. A well-structured workshop is one of the best methods for successfully guiding a group from exploring a problem to implementing a solution. ... An RCA or root cause analysis is the process of identifying what is at the heart of business problems or recurring challenges.

  15. How To Identify And Solve Problems In Your Business

    Having a clear vision of the best possible business cycle for your company is always the first step in problem solving. This lets you make the best decisions for long-term and short-term growth ...

  16. A guide to problems-solving in business

    A Step-by-Step Process to Problem-Solving in Business. Problem-solving in business is often an iterative process. So the steps involved may need to be repeated or revised as new information becomes available. Problem-solving usually involves the following steps: Define the problem; include any present symptoms or effects.

  17. The McKinsey guide to problem solving

    The McKinsey guide to problem solving. Become a better problem solver with insights and advice from leaders around the world on topics including developing a problem-solving mindset, solving problems in uncertain times, problem solving with AI, and much more. Become a better problem solver with insights and advice from leaders around the world ...

  18. The Problem-Solving Process

    Problem-solving is an important part of planning and decision-making. The process has much in common with the decision-making process, and in the case of complex decisions, can form part of the process itself. We face and solve problems every day, in a variety of guises and of differing complexity.

  19. Decision making and problem solving

    Competing Through Manufacturing. Decision making and problem solving Magazine Article. Steven C. Wheelwright. Robert H. Hayes. The past several years have witnessed a growing awareness among ...

  20. Five Steps for Business Problem Solving

    Writer Bio. Approach business management problems and solutions systematically to increase the odds of developing strategies that work. Business problem-solving steps include: define the problem ...

  21. Problem-Solving in Business: PROBLEM-SOLVING DEFINED AND WHY IT IS

    This guide is designed to help you approach your business problem-solving process in a systematic way through information sources that can help you understand your situation more clearly and provide a distinct direction towards the appropriate solution. ABOUT THIS LIBGUIDE SKILLS AND QUALIFICATIONS NEEDED IN PROBLEM-SOLVING PROBLEM-SOLVING STEPS

  22. What Is Creative Problem-Solving & Why Is It Important?

    Adapting to change: Business is constantly changing, and business leaders need to adapt. Creative problem-solving helps overcome unforeseen challenges and find solutions to unconventional problems. Fueling innovation and growth: In addition to solutions, creative problem-solving can spark innovative ideas that drive company growth.

  23. 4 Steps for Business Problem Solving to Get Results

    The 4 Steps to Problem Solving in Business: Recognize there is a problem. Collect data. Gather solutions. Choose a solution. Here is a bit more on each of the steps: 1. Recognize there's a problem. How? There's something in the way, something dislikable. Ask how much you care about this issue (i.e. are you willing to go further towards a ...

  24. Solving Problems With a Business: Returns, Refunds, and Other

    Keep notes about what you did to solve the problem. List the people you talked to, the date of your conversation, and what they promised to do. If you chat online or send forms to customer service, save a copy of what you wrote, or take a picture of the screen before you exit, and note the date.

  25. How to become a business process analyst (with skills)

    Problem-solving. Business process analysts often inspect areas of a business that are easily overlooked in a bid to find ways to improve the business as a whole. This requires keen problem-solving skills to find areas of concern and develop solutions that increase efficiency. There are usually multiple issues to address at any given time, so ...