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
  • Business Essentials
  • Leadership & Management
  • Credential of Leadership, Impact, and Management in Business (CLIMB)
  • Entrepreneurship & Innovation
  • Digital Transformation
  • Finance & Accounting
  • Business in Society
  • For Organizations
  • Support Portal
  • Media Coverage
  • Founding Donors
  • Leadership Team

problem solving techniques business studies

  • 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
  • AI Essentials for Business
  • 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

Why Problem-Solving Skills Are Essential for Leaders in Any Industry

Business man leading team in problem-solving exercise with white board

  • 17 Jan 2023

Any organization offering a product or service is in the business of solving problems.

Whether providing medical care to address health issues or quick convenience to those hungry for dinner, a business’s purpose is to satisfy customer needs .

In addition to solving customers’ problems, you’ll undoubtedly encounter challenges within your organization as it evolves to meet customer needs. You’re likely to experience growing pains in the form of missed targets, unattained goals, and team disagreements.

Yet, the ubiquity of problems doesn’t have to be discouraging; with the right frameworks and tools, you can build the skills to solve consumers' and your organization’s most challenging issues.

Here’s a primer on problem-solving in business, why it’s important, the skills you need, and how to build them.

Access your free e-book today.

What Is Problem-Solving in Business?

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.

Design Thinking

Design thinking , as described by Harvard Business School Dean Srikant Datar in the online course Design Thinking and Innovation , is a human-centered , solutions-based approach to problem-solving and innovation. Originally created for product design, design thinking’s use case has evolved . It’s now used to solve internal business problems, too.

The design thinking process has four stages :

4 Stages of Design Thinking

  • Clarify: Clarify a problem through research and feedback from those impacted.
  • Ideate: Armed with new insights, generate as many solutions as possible.
  • Develop: Combine and cull your ideas into a short list of viable, feasible, and desirable options before building prototypes (if making physical products) and creating a plan of action (if solving an intangible problem).
  • Implement: Execute the strongest idea, ensuring clear communication with all stakeholders about its potential value and deliberate reasoning.

Using this framework, you can generate innovative ideas that wouldn’t have surfaced otherwise.

Creative Problem-Solving

Another, less structured approach to challenges is creative problem-solving , which employs a series of exercises to explore open-ended solutions and develop new perspectives. This is especially useful when a problem’s root cause has yet to be defined.

You can use creative problem-solving tools in design thinking’s “ideate” stage, which include:

  • Brainstorming: Instruct everyone to develop as many ideas as possible in an allotted time frame without passing judgment.
  • Divergent thinking exercises: Rather than arriving at the same conclusion (convergent thinking), instruct everyone to come up with a unique idea for a given prompt (divergent thinking). This type of exercise helps avoid the tendency to agree with others’ ideas without considering alternatives.
  • Alternate worlds: Ask your team to consider how various personas would manage the problem. For instance, how would a pilot approach it? What about a young child? What about a seasoned engineer?

It can be tempting to fall back on how problems have been solved before, especially if they worked well. However, if you’re striving for innovation, relying on existing systems can stunt your company’s growth.

Related: How to Be a More Creative Problem-Solver at Work: 8 Tips

Why Is Problem-Solving Important for Leaders?

While obstacles’ specifics vary between industries, strong problem-solving skills are crucial for leaders in any field.

Whether building a new product or dealing with internal issues, you’re bound to come up against challenges. Having frameworks and tools at your disposal when they arise can turn issues into opportunities.

As a leader, it’s rarely your responsibility to solve a problem single-handedly, so it’s crucial to know how to empower employees to work together to find the best solution.

Your job is to guide them through each step of the framework and set the parameters and prompts within which they can be creative. Then, you can develop a list of ideas together, test the best ones, and implement the chosen solution.

Related: 5 Design Thinking Skills for Business Professionals

4 Problem-Solving Skills All Leaders Need

1. problem framing.

One key skill for any leader is framing problems in a way that makes sense for their organization. Problem framing is defined in Design Thinking and Innovation as determining the scope, context, and perspective of the problem you’re trying to solve.

“Before you begin to generate solutions for your problem, you must always think hard about how you’re going to frame that problem,” Datar says in the course.

For instance, imagine you work for a company that sells children’s sneakers, and sales have plummeted. When framing the problem, consider:

  • What is the children’s sneaker market like right now?
  • Should we improve the quality of our sneakers?
  • Should we assess all children’s footwear?
  • Is this a marketing issue for children’s sneakers specifically?
  • Is this a bigger issue that impacts how we should market or produce all footwear?

While there’s no one right way to frame a problem, how you do can impact the solutions you generate. It’s imperative to accurately frame problems to align with organizational priorities and ensure your team generates useful ideas for your firm.

To solve a problem, you need to empathize with those impacted by it. Empathy is the ability to understand others’ emotions and experiences. While many believe empathy is a fixed trait, it’s a skill you can strengthen through practice.

When confronted with a problem, consider whom it impacts. Returning to the children’s sneaker example, think of who’s affected:

  • Your organization’s employees, because sales are down
  • The customers who typically buy your sneakers
  • The children who typically wear your sneakers

Empathy is required to get to the problem’s root and consider each group’s perspective. Assuming someone’s perspective often isn’t accurate, so the best way to get that information is by collecting user feedback.

For instance, if you asked customers who typically buy your children’s sneakers why they’ve stopped, they could say, “A new brand of children’s sneakers came onto the market that have soles with more traction. I want my child to be as safe as possible, so I bought those instead.”

When someone shares their feelings and experiences, you have an opportunity to empathize with them. This can yield solutions to their problem that directly address its root and shows you care. In this case, you may design a new line of children’s sneakers with extremely grippy soles for added safety, knowing that’s what your customers care most about.

Related: 3 Effective Methods for Assessing Customer Needs

3. Breaking Cognitive Fixedness

Cognitive fixedness is a state of mind in which you examine situations through the lens of past experiences. This locks you into one mindset rather than allowing you to consider alternative possibilities.

For instance, your cognitive fixedness may make you think rubber is the only material for sneaker treads. What else could you use? Is there a grippier alternative you haven’t considered?

Problem-solving is all about overcoming cognitive fixedness. You not only need to foster this skill in yourself but among your team.

4. Creating a Psychologically Safe Environment

As a leader, it’s your job to create an environment conducive to problem-solving. In a psychologically safe environment, all team members feel comfortable bringing ideas to the table, which are likely influenced by their personal opinions and experiences.

If employees are penalized for “bad” ideas or chastised for questioning long-held procedures and systems, innovation has no place to take root.

By employing the design thinking framework and creative problem-solving exercises, you can foster a setting in which your team feels comfortable sharing ideas and new, innovative solutions can grow.

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

How to Build Problem-Solving Skills

The most obvious answer to how to build your problem-solving skills is perhaps the most intimidating: You must practice.

Again and again, you’ll encounter challenges, use creative problem-solving tools and design thinking frameworks, and assess results to learn what to do differently next time.

While most of your practice will occur within your organization, you can learn in a lower-stakes setting by taking an online course, such as Design Thinking and Innovation . Datar guides you through each tool and framework, presenting real-world business examples to help you envision how you would approach the same types of problems in your organization.

Are you interested in uncovering innovative solutions for your organization’s business problems? Explore Design Thinking and Innovation —one of our online entrepreneurship and innovation courses —to learn how to leverage proven frameworks and tools to solve challenges. Not sure which course is right for you? Download our free flowchart .

problem solving techniques business studies

About the Author

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

How to Solve Problems

  • Laura Amico

problem solving techniques business studies

To bring the best ideas forward, teams must build psychological safety.

Teams today aren’t just asked to execute tasks: They’re called upon to solve problems. You’d think that many brains working together would mean better solutions, but the reality is that too often problem-solving teams fall victim to inefficiency, conflict, and cautious conclusions. The two charts below will help your team think about how to collaborate better and come up with the best solutions for the thorniest challenges.

  • Laura Amico is a former senior editor at Harvard Business Review.

Partner Center

How to master the seven-step problem-solving process

In this episode of the McKinsey Podcast , Simon London speaks with Charles Conn, CEO of venture-capital firm Oxford Sciences Innovation, and McKinsey senior partner Hugo Sarrazin about the complexities of different problem-solving strategies.

Podcast transcript

Simon London: Hello, and welcome to this episode of the McKinsey Podcast , with me, Simon London. What’s the number-one skill you need to succeed professionally? Salesmanship, perhaps? Or a facility with statistics? Or maybe the ability to communicate crisply and clearly? Many would argue that at the very top of the list comes problem solving: that is, the ability to think through and come up with an optimal course of action to address any complex challenge—in business, in public policy, or indeed in life.

Looked at this way, it’s no surprise that McKinsey takes problem solving very seriously, testing for it during the recruiting process and then honing it, in McKinsey consultants, through immersion in a structured seven-step method. 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].

Charles and Hugo, welcome to the podcast. Thank you for being here.

Hugo Sarrazin: Our pleasure.

Charles Conn: It’s terrific to be here.

Simon London: Problem solving is a really interesting piece of terminology. It could mean so many different things. I have a son who’s a teenage climber. They talk about solving problems. Climbing is problem solving. Charles, when you talk about problem solving, what are you talking about?

Charles Conn: For me, problem solving is the answer to the question “What should I do?” It’s interesting when there’s uncertainty and complexity, and when it’s meaningful because there are consequences. Your son’s climbing is a perfect example. There are consequences, and it’s complicated, and there’s uncertainty—can he make that grab? I think we can apply that same frame almost at any level. You can think about questions like “What town would I like to live in?” or “Should I put solar panels on my roof?”

You might think that’s a funny thing to apply problem solving to, but in my mind it’s not fundamentally different from business problem solving, which answers the question “What should my strategy be?” Or problem solving at the policy level: “How do we combat climate change?” “Should I support the local school bond?” I think these are all part and parcel of the same type of question, “What should I do?”

I’m a big fan of structured problem solving. By following steps, we can more clearly understand what problem it is we’re solving, what are the components of the problem that we’re solving, which components are the most important ones for us to pay attention to, which analytic techniques we should apply to those, and how we can synthesize what we’ve learned back into a compelling story. That’s all it is, at its heart.

I think sometimes when people think about seven steps, they assume that there’s a rigidity to this. That’s not it at all. It’s actually to give you the scope for creativity, which often doesn’t exist when your problem solving is muddled.

Simon London: You were just talking about the seven-step process. That’s what’s written down in the book, but it’s a very McKinsey process as well. Without getting too deep into the weeds, let’s go through the steps, one by one. You were just talking about problem definition as being a particularly important thing to get right first. That’s the first step. Hugo, tell us about that.

Hugo Sarrazin: It is surprising how often people jump past this step and make a bunch of assumptions. The most powerful thing is to step back and ask the basic questions—“What are we trying to solve? What are the constraints that exist? What are the dependencies?” Let’s make those explicit and really push the thinking and defining. At McKinsey, we spend an enormous amount of time in writing that little statement, and the statement, if you’re a logic purist, is great. You debate. “Is it an ‘or’? Is it an ‘and’? What’s the action verb?” Because all these specific words help you get to the heart of what matters.

Want to subscribe to The McKinsey Podcast ?

Simon London: So this is a concise problem statement.

Hugo Sarrazin: Yeah. It’s not like “Can we grow in Japan?” That’s interesting, but it is “What, specifically, are we trying to uncover in the growth of a product in Japan? Or a segment in Japan? Or a channel in Japan?” When you spend an enormous amount of time, in the first meeting of the different stakeholders, debating this and having different people put forward what they think the problem definition is, you realize that people have completely different views of why they’re here. That, to me, is the most important step.

Charles Conn: I would agree with that. For me, the problem context is critical. When we understand “What are the forces acting upon your decision maker? How quickly is the answer needed? With what precision is the answer needed? Are there areas that are off limits or areas where we would particularly like to find our solution? Is the decision maker open to exploring other areas?” then you not only become more efficient, and move toward what we call the critical path in problem solving, but you also make it so much more likely that you’re not going to waste your time or your decision maker’s time.

How often do especially bright young people run off with half of the idea about what the problem is and start collecting data and start building models—only to discover that they’ve really gone off half-cocked.

Hugo Sarrazin: Yeah.

Charles Conn: And in the wrong direction.

Simon London: OK. So step one—and there is a real art and a structure to it—is define the problem. Step two, Charles?

Charles Conn: My favorite step is step two, which is to use logic trees to disaggregate the problem. Every problem we’re solving has some complexity and some uncertainty in it. The only way that we can really get our team working on the problem is to take the problem apart into logical pieces.

What we find, of course, is that the way to disaggregate the problem often gives you an insight into the answer to the problem quite quickly. I love to do two or three different cuts at it, each one giving a bit of a different insight into what might be going wrong. By doing sensible disaggregations, using logic trees, we can figure out which parts of the problem we should be looking at, and we can assign those different parts to team members.

Simon London: What’s a good example of a logic tree on a sort of ratable problem?

Charles Conn: Maybe the easiest one is the classic profit tree. Almost in every business that I would take a look at, I would start with a profit or return-on-assets tree. In its simplest form, you have the components of revenue, which are price and quantity, and the components of cost, which are cost and quantity. Each of those can be broken out. Cost can be broken into variable cost and fixed cost. The components of price can be broken into what your pricing scheme is. That simple tree often provides insight into what’s going on in a business or what the difference is between that business and the competitors.

If we add the leg, which is “What’s the asset base or investment element?”—so profit divided by assets—then we can ask the question “Is the business using its investments sensibly?” whether that’s in stores or in manufacturing or in transportation assets. I hope we can see just how simple this is, even though we’re describing it in words.

When I went to work with Gordon Moore at the Moore Foundation, the problem that he asked us to look at was “How can we save Pacific salmon?” Now, that sounds like an impossible question, but it was amenable to precisely the same type of disaggregation and allowed us to organize what became a 15-year effort to improve the likelihood of good outcomes for Pacific salmon.

Simon London: Now, is there a danger that your logic tree can be impossibly large? This, I think, brings us onto the third step in the process, which is that you have to prioritize.

Charles Conn: Absolutely. The third step, which we also emphasize, along with good problem definition, is rigorous prioritization—we ask the questions “How important is this lever or this branch of the tree in the overall outcome that we seek to achieve? How much can I move that lever?” Obviously, we try and focus our efforts on ones that have a big impact on the problem and the ones that we have the ability to change. With salmon, ocean conditions turned out to be a big lever, but not one that we could adjust. We focused our attention on fish habitats and fish-harvesting practices, which were big levers that we could affect.

People spend a lot of time arguing about branches that are either not important or that none of us can change. We see it in the public square. When we deal with questions at the policy level—“Should you support the death penalty?” “How do we affect climate change?” “How can we uncover the causes and address homelessness?”—it’s even more important that we’re focusing on levers that are big and movable.

Would you like to learn more about our Strategy & Corporate Finance Practice ?

Simon London: Let’s move swiftly on to step four. You’ve defined your problem, you disaggregate it, you prioritize where you want to analyze—what you want to really look at hard. Then you got to the work plan. Now, what does that mean in practice?

Hugo Sarrazin: Depending on what you’ve prioritized, there are many things you could do. It could be breaking the work among the team members so that people have a clear piece of the work to do. It could be defining the specific analyses that need to get done and executed, and being clear on time lines. There’s always a level-one answer, there’s a level-two answer, there’s a level-three answer. Without being too flippant, I can solve any problem during a good dinner with wine. It won’t have a whole lot of backing.

Simon London: Not going to have a lot of depth to it.

Hugo Sarrazin: No, but it may be useful as a starting point. If the stakes are not that high, that could be OK. If it’s really high stakes, you may need level three and have the whole model validated in three different ways. You need to find a work plan that reflects the level of precision, the time frame you have, and the stakeholders you need to bring along in the exercise.

Charles Conn: I love the way you’ve described that, because, again, some people think of problem solving as a linear thing, but of course what’s critical is that it’s iterative. As you say, you can solve the problem in one day or even one hour.

Charles Conn: We encourage our teams everywhere to do that. We call it the one-day answer or the one-hour answer. In work planning, we’re always iterating. Every time you see a 50-page work plan that stretches out to three months, you know it’s wrong. It will be outmoded very quickly by that learning process that you described. Iterative problem solving is a critical part of this. Sometimes, people think work planning sounds dull, but it isn’t. It’s how we know what’s expected of us and when we need to deliver it and how we’re progressing toward the answer. It’s also the place where we can deal with biases. Bias is a feature of every human decision-making process. If we design our team interactions intelligently, we can avoid the worst sort of biases.

Simon London: Here we’re talking about cognitive biases primarily, right? It’s not that I’m biased against you because of your accent or something. These are the cognitive biases that behavioral sciences have shown we all carry around, things like anchoring, overoptimism—these kinds of things.

Both: Yeah.

Charles Conn: Availability bias is the one that I’m always alert to. You think you’ve seen the problem before, and therefore what’s available is your previous conception of it—and we have to be most careful about that. In any human setting, we also have to be careful about biases that are based on hierarchies, sometimes called sunflower bias. I’m sure, Hugo, with your teams, you make sure that the youngest team members speak first. Not the oldest team members, because it’s easy for people to look at who’s senior and alter their own creative approaches.

Hugo Sarrazin: It’s helpful, at that moment—if someone is asserting a point of view—to ask the question “This was true in what context?” You’re trying to apply something that worked in one context to a different one. That can be deadly if the context has changed, and that’s why organizations struggle to change. You promote all these people because they did something that worked well in the past, and then there’s a disruption in the industry, and they keep doing what got them promoted even though the context has changed.

Simon London: Right. Right.

Hugo Sarrazin: So it’s the same thing in problem solving.

Charles Conn: And it’s why diversity in our teams is so important. It’s one of the best things about the world that we’re in now. We’re likely to have people from different socioeconomic, ethnic, and national backgrounds, each of whom sees problems from a slightly different perspective. It is therefore much more likely that the team will uncover a truly creative and clever approach to problem solving.

Simon London: Let’s move on to step five. You’ve done your work plan. Now you’ve actually got to do the analysis. The thing that strikes me here is that the range of tools that we have at our disposal now, of course, is just huge, particularly with advances in computation, advanced analytics. There’s so many things that you can apply here. Just talk about the analysis stage. How do you pick the right tools?

Charles Conn: For me, the most important thing is that we start with simple heuristics and explanatory statistics before we go off and use the big-gun tools. We need to understand the shape and scope of our problem before we start applying these massive and complex analytical approaches.

Simon London: Would you agree with that?

Hugo Sarrazin: I agree. I think there are so many wonderful heuristics. You need to start there before you go deep into the modeling exercise. There’s an interesting dynamic that’s happening, though. In some cases, for some types of problems, it is even better to set yourself up to maximize your learning. Your problem-solving methodology is test and learn, test and learn, test and learn, and iterate. That is a heuristic in itself, the A/B testing that is used in many parts of the world. So that’s a problem-solving methodology. It’s nothing different. It just uses technology and feedback loops in a fast way. The other one is exploratory data analysis. When you’re dealing with a large-scale problem, and there’s so much data, I can get to the heuristics that Charles was talking about through very clever visualization of data.

You test with your data. You need to set up an environment to do so, but don’t get caught up in neural-network modeling immediately. You’re testing, you’re checking—“Is the data right? Is it sound? Does it make sense?”—before you launch too far.

Simon London: You do hear these ideas—that if you have a big enough data set and enough algorithms, they’re going to find things that you just wouldn’t have spotted, find solutions that maybe you wouldn’t have thought of. Does machine learning sort of revolutionize the problem-solving process? Or are these actually just other tools in the toolbox for structured problem solving?

Charles Conn: It can be revolutionary. There are some areas in which the pattern recognition of large data sets and good algorithms can help us see things that we otherwise couldn’t see. But I do think it’s terribly important we don’t think that this particular technique is a substitute for superb problem solving, starting with good problem definition. Many people use machine learning without understanding algorithms that themselves can have biases built into them. Just as 20 years ago, when we were doing statistical analysis, we knew that we needed good model definition, we still need a good understanding of our algorithms and really good problem definition before we launch off into big data sets and unknown algorithms.

Simon London: Step six. You’ve done your analysis.

Charles Conn: I take six and seven together, and this is the place where young problem solvers often make a mistake. They’ve got their analysis, and they assume that’s the answer, and of course it isn’t the answer. The ability to synthesize the pieces that came out of the analysis and begin to weave those into a story that helps people answer the question “What should I do?” This is back to where we started. If we can’t synthesize, and we can’t tell a story, then our decision maker can’t find the answer to “What should I do?”

Simon London: But, again, these final steps are about motivating people to action, right?

Charles Conn: Yeah.

Simon London: I am slightly torn about the nomenclature of problem solving because it’s on paper, right? Until you motivate people to action, you actually haven’t solved anything.

Charles Conn: I love this question because I think decision-making theory, without a bias to action, is a waste of time. Everything in how I approach this is to help people take action that makes the world better.

Simon London: Hence, these are absolutely critical steps. If you don’t do this well, you’ve just got a bunch of analysis.

Charles Conn: We end up in exactly the same place where we started, which is people speaking across each other, past each other in the public square, rather than actually working together, shoulder to shoulder, to crack these important problems.

Simon London: In the real world, we have a lot of uncertainty—arguably, increasing uncertainty. How do good problem solvers deal with that?

Hugo Sarrazin: At every step of the process. In the problem definition, when you’re defining the context, you need to understand those sources of uncertainty and whether they’re important or not important. It becomes important in the definition of the tree.

You need to think carefully about the branches of the tree that are more certain and less certain as you define them. They don’t have equal weight just because they’ve got equal space on the page. Then, when you’re prioritizing, your prioritization approach may put more emphasis on things that have low probability but huge impact—or, vice versa, may put a lot of priority on things that are very likely and, hopefully, have a reasonable impact. You can introduce that along the way. When you come back to the synthesis, you just need to be nuanced about what you’re understanding, the likelihood.

Often, people lack humility in the way they make their recommendations: “This is the answer.” They’re very precise, and I think we would all be well-served to say, “This is a likely answer under the following sets of conditions” and then make the level of uncertainty clearer, if that is appropriate. It doesn’t mean you’re always in the gray zone; it doesn’t mean you don’t have a point of view. It just means that you can be explicit about the certainty of your answer when you make that recommendation.

Simon London: So it sounds like there is an underlying principle: “Acknowledge and embrace the uncertainty. Don’t pretend that it isn’t there. Be very clear about what the uncertainties are up front, and then build that into every step of the process.”

Hugo Sarrazin: Every step of the process.

Simon London: Yeah. We have just walked through a particular structured methodology for problem solving. But, of course, this is not the only structured methodology for problem solving. One that is also very well-known is design thinking, which comes at things very differently. So, Hugo, I know you have worked with a lot of designers. Just give us a very quick summary. Design thinking—what is it, and how does it relate?

Hugo Sarrazin: It starts with an incredible amount of empathy for the user and uses that to define the problem. It does pause and go out in the wild and spend an enormous amount of time seeing how people interact with objects, seeing the experience they’re getting, seeing the pain points or joy—and uses that to infer and define the problem.

Simon London: Problem definition, but out in the world.

Hugo Sarrazin: With an enormous amount of empathy. There’s a huge emphasis on empathy. Traditional, more classic problem solving is you define the problem based on an understanding of the situation. This one almost presupposes that we don’t know the problem until we go see it. The second thing is you need to come up with multiple scenarios or answers or ideas or concepts, and there’s a lot of divergent thinking initially. That’s slightly different, versus the prioritization, but not for long. Eventually, you need to kind of say, “OK, I’m going to converge again.” Then you go and you bring things back to the customer and get feedback and iterate. Then you rinse and repeat, rinse and repeat. There’s a lot of tactile building, along the way, of prototypes and things like that. It’s very iterative.

Simon London: So, Charles, are these complements or are these alternatives?

Charles Conn: I think they’re entirely complementary, and I think Hugo’s description is perfect. When we do problem definition well in classic problem solving, we are demonstrating the kind of empathy, at the very beginning of our problem, that design thinking asks us to approach. When we ideate—and that’s very similar to the disaggregation, prioritization, and work-planning steps—we do precisely the same thing, and often we use contrasting teams, so that we do have divergent thinking. The best teams allow divergent thinking to bump them off whatever their initial biases in problem solving are. For me, design thinking gives us a constant reminder of creativity, empathy, and the tactile nature of problem solving, but it’s absolutely complementary, not alternative.

Simon London: I think, in a world of cross-functional teams, an interesting question is do people with design-thinking backgrounds really work well together with classical problem solvers? How do you make that chemistry happen?

Hugo Sarrazin: Yeah, it is not easy when people have spent an enormous amount of time seeped in design thinking or user-centric design, whichever word you want to use. If the person who’s applying classic problem-solving methodology is very rigid and mechanical in the way they’re doing it, there could be an enormous amount of tension. If there’s not clarity in the role and not clarity in the process, I think having the two together can be, sometimes, problematic.

The second thing that happens often is that the artifacts the two methodologies try to gravitate toward can be different. Classic problem solving often gravitates toward a model; design thinking migrates toward a prototype. Rather than writing a big deck with all my supporting evidence, they’ll bring an example, a thing, and that feels different. Then you spend your time differently to achieve those two end products, so that’s another source of friction.

Now, I still think it can be an incredibly powerful thing to have the two—if there are the right people with the right mind-set, if there is a team that is explicit about the roles, if we’re clear about the kind of outcomes we are attempting to bring forward. There’s an enormous amount of collaborativeness and respect.

Simon London: But they have to respect each other’s methodology and be prepared to flex, maybe, a little bit, in how this process is going to work.

Hugo Sarrazin: Absolutely.

Simon London: The other area where, it strikes me, there could be a little bit of a different sort of friction is this whole concept of the day-one answer, which is what we were just talking about in classical problem solving. Now, you know that this is probably not going to be your final answer, but that’s how you begin to structure the problem. Whereas I would imagine your design thinkers—no, they’re going off to do their ethnographic research and get out into the field, potentially for a long time, before they come back with at least an initial hypothesis.

Want better strategies? Become a bulletproof problem solver

Want better strategies? Become a bulletproof problem solver

Hugo Sarrazin: That is a great callout, and that’s another difference. Designers typically will like to soak into the situation and avoid converging too quickly. There’s optionality and exploring different options. There’s a strong belief that keeps the solution space wide enough that you can come up with more radical ideas. If there’s a large design team or many designers on the team, and you come on Friday and say, “What’s our week-one answer?” they’re going to struggle. They’re not going to be comfortable, naturally, to give that answer. It doesn’t mean they don’t have an answer; it’s just not where they are in their thinking process.

Simon London: I think we are, sadly, out of time for today. But Charles and Hugo, thank you so much.

Charles Conn: It was a pleasure to be here, Simon.

Hugo Sarrazin: It was a pleasure. Thank you.

Simon London: And thanks, as always, to you, our listeners, for tuning into this episode of the McKinsey Podcast . If you want to learn more about problem solving, you can find the book, Bulletproof Problem Solving: The One Skill That Changes Everything , online or order it through your local bookstore. To learn more about McKinsey, you can of course find us at McKinsey.com.

Charles Conn is CEO of Oxford Sciences Innovation and an alumnus of McKinsey’s Sydney office. Hugo Sarrazin is a senior partner in the Silicon Valley office, where Simon London, a member of McKinsey Publishing, is also based.

Explore a career with us

Related articles.

Want better strategies? Become a bulletproof problem solver

Strategy to beat the odds

firo13_frth

Five routes to more innovative problem solving

Plan Smarter, Grow Faster:

25% Off Annual Plans! Save Now

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 . 

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:

problem solving techniques business studies

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 .

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

A step-by-step guide to planning a workshop, how to create an unforgettable training session in 8 simple steps, 47 useful online tools for workshop planning and meeting facilitation.

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!

problem solving techniques business studies

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!

problem solving techniques business studies

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 *

cycle of workshop planning steps

Going from a mere idea to a workshop that delivers results for your clients can feel like a daunting task. In this piece, we will shine a light on all the work behind the scenes and help you learn how to plan a workshop from start to finish. On a good day, facilitation can feel like effortless magic, but that is mostly the result of backstage work, foresight, and a lot of careful planning. Read on to learn a step-by-step approach to breaking the process of planning a workshop into small, manageable chunks.  The flow starts with the first meeting with a client to define the purposes of a workshop.…

problem solving techniques business studies

How does learning work? A clever 9-year-old once told me: “I know I am learning something new when I am surprised.” The science of adult learning tells us that, in order to learn new skills (which, unsurprisingly, is harder for adults to do than kids) grown-ups need to first get into a specific headspace.  In a business, this approach is often employed in a training session where employees learn new skills or work on professional development. But how do you ensure your training is effective? In this guide, we'll explore how to create an effective training session plan and run engaging training sessions. As team leader, project manager, or consultant,…

problem solving techniques business studies

Effective online tools are a necessity for smooth and engaging virtual workshops and meetings. But how do you choose the right ones? Do you sometimes feel that the good old pen and paper or MS Office toolkit and email leaves you struggling to stay on top of managing and delivering your workshop? Fortunately, there are plenty of online tools to make your life easier when you need to facilitate a meeting and lead workshops. In this post, we’ll share our favorite online tools you can use to make your job as a facilitator easier. In fact, there are plenty of free online workshop tools and meeting facilitation software you can…

Design your next workshop with SessionLab

Join the 150,000 facilitators using SessionLab

Sign up for free

The Importance of the Problem Solving Cycle in Business Studies – Strategies for Success

  • Post author By bicycle-u
  • Post date 08.12.2023

In the field of business studies, problem solving plays a crucial role in ensuring the success and growth of an organization. Whether it’s finding solutions to operational challenges, addressing customer concerns, or creating new strategies, the ability to effectively solve problems is an essential skill for business professionals.

The problem solving cycle is a systematic approach that guides individuals and organizations in identifying, analyzing, and resolving problems. It consists of several steps, including problem definition, gathering information, generating alternatives, evaluating options, making a decision, implementing the solution, and evaluating the results.

One of the key advantages of the problem solving cycle is its emphasis on a structured and logical approach. By following the steps in a sequential manner, business professionals can ensure that all aspects of the problem are thoroughly assessed and that potential solutions are carefully evaluated. This helps to minimize the risk of making hasty or ill-informed decisions.

Moreover, the problem solving cycle encourages critical thinking and creativity. As individuals engage in the process of problem solving, they are encouraged to think outside the box and consider alternative perspectives. This can lead to innovative solutions that may not have been initially obvious. By fostering an open-minded and innovative mindset, the problem solving cycle enables businesses to adapt to changing circumstances and stay ahead in a competitive marketplace.

The Importance of Problem Solving in Business

Problem solving is an essential skill in the business world. In order to succeed in the dynamic and fast-paced business environment, individuals and organizations must be able to identify and solve problems effectively.

The problem solving cycle is a systematic approach to tackling complicated issues that arise in business operations. It involves several steps, including identifying the problem, gathering relevant information, analyzing the data, generating potential solutions, evaluating the alternatives, and implementing the best course of action. This cycle is crucial in ensuring that businesses address problems in a structured and efficient manner.

Enhancing Innovation and Creativity

Problem solving in business encourages innovation and creativity. When faced with a problem, individuals and teams are forced to think outside the box and come up with unique solutions. This process not only helps solve the immediate problem, but also fosters a culture of innovation within the organization. Through problem solving, businesses can discover new opportunities, improve their products or services, and gain a competitive edge in the market.

Building Resilience and Adaptability

Problem solving also helps businesses build resilience and adaptability. In today’s rapidly changing business landscape, organizations must be able to adapt to new challenges and find solutions quickly. By developing problem solving skills, individuals and teams become more adept at navigating through uncertainty and finding viable solutions. This resilience and adaptability are essential in maintaining business continuity and remaining competitive in the face of evolving market conditions.

In conclusion, problem solving is of utmost importance in the business world. It enables businesses to overcome challenges, enhance innovation, and build resilience. By embracing the problem solving cycle, individuals and organizations can effectively address problems and drive success in today’s dynamic business environment.

The Steps of Problem Solving in Business Studies

In business studies, problem solving is an essential skill that allows individuals to identify and resolve issues within a company or organization. By following a structured problem solving cycle, businesses can effectively address challenges and improve their operations. The steps of problem solving in business studies typically include:

Identifying the Problem in Business

The problem solving cycle in business studies is a crucial process that helps organizations address and overcome various challenges they encounter. One of the key steps in this cycle is identifying the problem.

Identifying the problem is essential as it sets the foundation for the entire problem-solving process. It involves thoroughly understanding the situation and recognizing the issue that needs to be addressed.

During this stage, businesses need to gather relevant data, analyze information, and conduct research to gain a comprehensive understanding of the problem. This may involve conducting surveys, interviews, or analyzing financial records to gather useful insights.

Once the problem is identified, organizations can define its scope and boundaries. This involves determining the factors and variables that contribute to the problem, as well as considering the potential impact it may have on the business.

Effective problem identification allows businesses to prioritize and allocate resources appropriately. It helps them focus their efforts on addressing the most pressing issues and avoiding wasted time and resources on less significant problems.

Furthermore, identifying the problem early on enables businesses to develop effective strategies and action plans to solve it. It allows for a proactive approach, as organizations can anticipate and mitigate potential risks before they escalate.

In conclusion, identifying the problem is a critical step in the problem solving cycle in business studies. It lays the groundwork for the entire process and enables organizations to effectively address challenges and achieve desired outcomes.

Gathering Information for Problem Solving in Business

One crucial aspect of the problem solving cycle in business studies is gathering information. When faced with a problem, it is essential to gather as much relevant information as possible to make informed decisions and find suitable solutions.

There are various methods and sources for gathering information in a business context. One commonly used method is research, which involves collecting data from primary and secondary sources. Primary sources include surveys, interviews, and observations, while secondary sources include books, articles, and online databases. By collecting information from both primary and secondary sources, businesses can gain a comprehensive understanding of the problem at hand.

Moreover, businesses can gather information by analyzing existing data and records. This may involve reviewing financial statements, sales reports, and customer feedback to identify patterns and trends. By examining this data, businesses can uncover underlying issues and potential solutions.

Additionally, businesses can gather information by seeking input from stakeholders. This includes managers, employees, customers, and suppliers who may have valuable insights and perspectives on the problem. Engaging in discussions and brainstorming sessions with these stakeholders can provide diverse viewpoints and ideas that can contribute to effective problem solving.

Furthermore, technology plays a significant role in information gathering. With the advancement of digital platforms and tools, businesses can collect data through online surveys, social media analytics, and website traffic analysis. These technological solutions provide real-time feedback and enable businesses to respond quickly to emerging issues.

In conclusion, gathering information is a critical step in the problem solving cycle in business studies. By utilizing various methods such as research, data analysis, stakeholder input, and technology, businesses can collect valuable information that can lead to effective problem solving and decision making.

Developing Potential Solutions in Business Studies

Once the problem has been identified and thoroughly understood in the problem-solving cycle, the next step is to develop potential solutions. This stage of the cycle is crucial as it involves brainstorming and evaluating various options to address the problem at hand.

Business studies provide students with a toolkit of analytical frameworks and problem-solving techniques to help in this process. Students are encouraged to think creatively and critically to come up with innovative and effective solutions.

One commonly used technique in business studies is the SWOT analysis, which stands for strengths, weaknesses, opportunities, and threats. This analysis helps to identify the internal strengths and weaknesses of a business, as well as the external opportunities and threats it faces. By understanding these factors, students can develop solutions that leverage the strengths, mitigate the weaknesses, capitalize on the opportunities, and minimize the threats.

Another approach used in business studies is the decision matrix, which involves evaluating potential solutions based on criteria such as cost, feasibility, and impact. By assigning weights and scores to each criterion, students can objectively assess the pros and cons of each solution and make an informed decision.

In addition to these techniques, business studies also emphasize the importance of considering ethical and social implications when developing potential solutions. It is crucial for students to assess the impact their proposed solutions may have on stakeholders, such as employees, customers, and the community at large.

Overall, developing potential solutions in business studies requires a combination of analytical thinking, creativity, critical evaluation, and ethical consideration. It is a complex process that involves exploring various options and considering multiple factors. By mastering this stage of the problem-solving cycle, students are better equipped to tackle real-world business challenges in their future careers.

Evaluating Potential Solutions in Business

As part of the problem solving cycle in business, evaluating potential solutions is a crucial step. Once a problem has been identified and potential solutions have been generated, it is important to assess each solution’s feasibility and effectiveness.

Feasibility: One of the key factors to consider when evaluating potential solutions is their feasibility. This involves determining if the solution is practical, feasible, and can be implemented within the resources and constraints of the business. It is essential to consider factors such as cost, time, and available resources before making a decision.

Effectiveness: Another crucial aspect to consider is the effectiveness of each potential solution. This involves assessing how well a solution addresses the problem at hand and whether it can achieve the desired outcomes. The solution should align with the goals and objectives of the business and provide the best possible results.

Cost-Benefit Analysis: Conducting a cost-benefit analysis is a common technique used to evaluate potential solutions. This involves comparing the costs associated with implementing a solution against the expected benefits or returns. It helps decision-makers determine whether the potential solution is economically viable and if the benefits outweigh the costs.

Risks and Contingencies: It is also important to evaluate the potential risks and develop contingency plans for each solution. This involves assessing the potential negative consequences or risks associated with each solution and developing strategies to mitigate them. By considering potential risks, businesses can minimize the likelihood of failure and ensure the implementation of a successful solution.

Iterative Evaluation: It is important to note that evaluating potential solutions is an iterative process. It may require revisiting and reevaluating the solutions multiple times before making a final decision. This allows for a thorough assessment and increases the chances of selecting the most suitable solution.

In conclusion, evaluating potential solutions plays a vital role in the problem solving cycle in business. By assessing the feasibility, effectiveness, cost-benefit analysis, risks, and contingencies of each solution, businesses can make informed decisions and choose the most suitable solution to address the problem at hand.

Selecting the Best Solution for Business Problems

When studying business, it is important to understand the problem-solving cycle and how it can be applied to real-life situations. One key step in this cycle is selecting the best solution for business problems.

Evaluating the Potential Solutions

Before selecting the best solution, it is essential to evaluate the potential options available. This can be done by analyzing each solution’s feasibility, costs, benefits, and potential risks. It is important to consider both short-term and long-term implications.

Considering Stakeholders’ Perspectives

Business problems often affect various stakeholders, including employees, customers, suppliers, and investors. When selecting the best solution, it is crucial to consider the perspectives and interests of all stakeholders involved. This ensures that the solution not only resolves the problem but also maintains positive relationships and promotes overall business success.

In some cases, it may be necessary to prioritize certain stakeholders’ perspectives based on their significance to the business and the problem at hand.

Weighing the Trade-Offs

Every solution comes with trade-offs. It is essential to weigh these trade-offs and understand the potential consequences of each solution. This includes considering the financial implications, impact on resources, and potential risks involved.

By carefully weighing the trade-offs, a business can make an informed decision and select the solution that provides the greatest overall benefit.

Overall, selecting the best solution for business problems requires a comprehensive evaluation of potential solutions, consideration of stakeholders’ perspectives, and weighing the trade-offs. By following these steps in the problem-solving cycle, businesses can effectively address and resolve various challenges, ensuring continued success and growth.

Implementing the Chosen Solution in Business

Once a suitable solution has been identified in the problem solving cycle in business studies, it is crucial to effectively implement it in order to achieve desired outcomes. The implementation phase involves putting the chosen solution into action and making it a part of the organization’s operations.

Before implementing the solution, it is important to create a detailed plan outlining the steps that need to be taken and the resources required. This plan should address potential challenges and risks that could arise during the implementation process.

A key aspect of implementing the chosen solution is ensuring effective communication and coordination among the different stakeholders involved. This includes informing employees about the solution, providing them with necessary training or resources, and obtaining their feedback and support.

In some cases, it may be necessary to modify existing processes, procedures, or systems to accommodate the implementation of the chosen solution. This could involve making changes to the organization’s structure, technology, or workflow.

Monitoring and evaluating the implementation process is also essential to ensure that the chosen solution is being effectively implemented. This can be done through regular performance reviews, feedback from customers or clients, and data analysis.

Furthermore, it is important to address any issues or challenges that arise during the implementation process promptly. This may require revisiting and adapting the chosen solution or seeking additional resources or expertise if necessary.

Overall, implementing the chosen solution in business is a critical step in the problem solving cycle. It requires careful planning, effective communication, and continuous monitoring and evaluation to ensure successful implementation and achieve desired outcomes.

Monitoring the Solution’s Effectiveness in Business

Once a problem has been identified and a solution has been implemented in business studies, it is important to monitor the effectiveness of the solution. This allows businesses to ensure that the problem has been fully solved and that the solution is working as intended. Monitoring the solution’s effectiveness also provides valuable insights and data that can be used for future problem solving.

1. Collection of Data

In order to monitor the solution’s effectiveness, businesses must collect relevant data. This could include customer feedback, sales data, or any other relevant information. By collecting data, businesses can gain a better understanding of how the solution is impacting various areas of the business.

2. Analysis of Data

Once the data has been collected, it is important to analyze it to determine the effectiveness of the solution. This analysis may involve comparing the data to previous benchmarks or industry standards to determine if the solution is meeting its intended goals. This analysis can also help identify any potential areas for improvement or further problem solving.

3. Periodic Evaluation

Monitoring the solution’s effectiveness should be an ongoing process. Businesses should regularly evaluate the data and make any necessary adjustments to ensure that the solution continues to be effective. Periodic evaluation allows businesses to stay proactive in addressing any issues that may arise and make necessary changes to maintain the desired results.

By monitoring the solution’s effectiveness in business studies, businesses can ensure that their problem-solving efforts are successful and sustainable. Through the collection and analysis of relevant data, periodic evaluation, and ongoing adjustments, businesses can continuously improve and optimize their problem-solving processes.

Revising the Solution if Necessary in Business Studies

The problem solving cycle in business studies involves several steps, starting with identifying the problem, gathering information, generating potential solutions, and ultimately selecting and implementing the best solution. However, even after carefully going through these steps, it is still possible for the solution to not produce the desired results.

Recognizing the Need for Revision

During the implementation phase, it is important to closely monitor and evaluate the progress of the chosen solution. This evaluation process will help determine if the solution is effectively addressing the problem or if adjustments need to be made. By analyzing the outcomes and comparing them to the desired results, it becomes apparent whether revising the solution is necessary.

Identifying Necessary Changes

Once it is determined that the solution needs revision, the next step is to identify the specific areas that require adjustments. This may involve conducting further research, analyzing data, or seeking feedback from stakeholders. By pinpointing the weaknesses or shortcomings of the solution, it becomes possible to develop a strategy for improving it.

It is crucial to approach the revision process with an open mind and a willingness to explore alternative solutions. By being flexible and open to change, it becomes possible to find new approaches that may produce better results.

Additionally, it is important to communicate and collaborate with team members or other stakeholders during the revision process. Their insights and perspectives can provide valuable input in identifying the necessary changes and refining the solution.

Furthermore, it is essential to establish a timeline for implementing these revisions and to allocate the necessary resources to ensure their successful execution.

In conclusion, the problem solving cycle in business studies does not end with the implementation of a solution. Revising the solution if necessary is a critical step in achieving the desired outcomes. By carefully evaluating the effectiveness of the solution and making necessary adjustments, businesses can improve their problem-solving processes and ultimately achieve success.

The Role of Creativity in Problem Solving in Business

Problem solving is an essential skill in the business cycle, and it is crucial for success in any organization. However, to stand out and find innovative solutions, it is important to also foster creativity in the problem-solving process.

What is Creativity?

Creativity is the ability to think outside of the box, to come up with new and original ideas. It is a valuable skill, as it allows individuals to approach problems from different angles and find unique solutions.

In the context of problem-solving in business studies, creativity plays a vital role. It helps to break away from conventional thinking and encourages individuals to explore unconventional solutions that may have the potential to bring about positive changes in the organization.

The Impact of Creativity on Problem Solving in Business Studies

Creativity enhances problem-solving by generating a wide range of ideas and possibilities. It encourages individuals to explore different perspectives and challenge existing assumptions. This can lead to more innovative and effective solutions.

Additionally, creativity in problem-solving promotes adaptability and flexibility. It allows individuals to adapt their approaches to changing circumstances and find new ways to overcome obstacles. This can be especially valuable in today’s fast-paced business environment.

Creative problem solving also fosters collaboration and teamwork. By encouraging individuals to share their ideas and perspectives, it can enhance communication and generate a sense of ownership and commitment among team members.

In conclusion, creativity is a crucial element in problem-solving in business studies. It helps individuals approach problems with fresh perspectives, fosters innovation, and promotes collaboration. By incorporating creativity into the problem-solving cycle, businesses can find unique and effective solutions to the challenges they face.

The Importance of Communication in Problem Solving in Business

Effective communication plays a critical role in the problem-solving cycle within business studies. In order to successfully navigate the complexities of problem solving, businesses must employ clear and concise communication strategies.

Firstly, communication is crucial during the identification and definition stage of the problem-solving cycle. This involves gathering information, analyzing data, and understanding the root causes of the problem. Without effective communication, team members may misunderstand the problem or fail to communicate important information, leading to inaccurate problem definition and potentially ineffective solutions.

Clear communication promotes collaboration

In addition, communication fosters collaboration and teamwork during the brainstorming and solution generation phase. By openly discussing the problem and sharing ideas, different perspectives and expertise can be brought to the table. Effective communication ensures that all team members have a voice and are able to contribute their insights and suggestions, resulting in a more comprehensive and innovative problem-solving process.

Communication facilitates implementation and evaluation

Furthermore, communication is essential during the implementation and evaluation stages of problem solving. Clear communication ensures that everyone involved in the process understands their roles and responsibilities, timelines, and expected outcomes. This facilitates the smooth execution of the plan and enables timely adjustments if necessary. Regular communication and feedback also allow for the evaluation of the implemented solution, identifying any areas for improvement and enabling continuous learning and growth.

In conclusion, effective communication is paramount in the problem-solving cycle within business studies. It enables accurate problem definition, promotes collaboration, facilitates implementation, and allows for evaluation. Businesses that prioritize communication as a part of their problem-solving process are better equipped to address challenges and achieve successful outcomes.

The Benefits of Collaboration in Problem Solving in Business

Problem solving is an essential skill in business studies, and it plays a crucial role in the success of any organization. However, solving complex problems can be challenging, and often requires a collaborative approach.

Enhanced Problem-solving Skills

Collaboration encourages individuals to share their unique perspectives and ideas. By working together, different viewpoints can be considered, leading to more effective problem-solving strategies. Collaborative problem solving allows for a diversity of thought, which can spur innovation and creativity.

Increased Efficiency and Effectiveness

Collaboration enables teams to pool their knowledge and skills, resulting in more efficient problem solving. By dividing tasks and responsibilities, individuals can focus on their areas of expertise, leading to faster and more effective solutions. When teams work together, they can also leverage each other’s strengths and overcome individual weaknesses.

Additionally, collaboration enables teams to brainstorm and generate a wide range of possible solutions. This diversity of ideas can lead to better decision-making and more comprehensive problem-solving outcomes.

Improved Communication and Cooperation

Collaboration fosters open communication and cooperation among team members. Through collaborative problem solving, individuals learn to actively listen to others, empathize with different perspectives, and work together towards a common goal. This not only strengthens relationships, but also enhances the overall communication and teamwork skills of individuals.

Increased Employee Engagement and Satisfaction

Collaborative problem solving can increase employee engagement and satisfaction. When employees feel valued and included in the problem-solving process, they are more likely to be motivated and committed to finding solutions. Teamwork and collaboration also promote a sense of belonging and camaraderie, which can contribute to a positive work environment.

In conclusion, collaboration is a powerful tool for problem solving in business. By fostering enhanced problem-solving skills, increasing efficiency and effectiveness, improving communication and cooperation, and promoting employee engagement and satisfaction, collaboration can lead to more successful outcomes in the problem-solving cycle in business studies.

The Challenges of Problem Solving in Business

Problem-solving is an integral part of the business cycle. It requires critical thinking and analysis to identify and address issues that arise in various aspects of a business. However, there are several challenges that business professionals often face when engaging in problem-solving processes.

Limited resources

One of the major challenges in problem-solving is the availability of limited resources. Businesses often have finite budgets and restricted access to manpower, technology, and other necessary tools. This limitation can make it difficult to address complex problems that require extensive resources.

Time constraints

Time is a crucial factor in problem-solving, and business professionals often face tight deadlines. They need to find solutions quickly and implement them efficiently to minimize the impact of the problem on the overall business operations. Time constraints can create additional pressure and stress, making it challenging to think critically and come up with effective solutions.

Despite these challenges, problem-solving is an essential skill in the business world. It helps businesses identify and overcome obstacles, improve efficiency, and achieve their goals. By recognizing the challenges associated with problem-solving, business professionals can develop strategies to overcome them and optimize their problem-solving process.

The Skills Required for Effective Problem Solving in Business

In the business world, problem-solving skills are crucial for success. Whether it’s dealing with a minor issue or a major crisis, the ability to effectively identify problems and come up with solutions is essential. Here are some key skills required for effective problem-solving in a business context:

1. Analytical Thinking

Effective problem solvers have strong analytical thinking skills. This involves the ability to break down complex problems into smaller, more manageable parts and analyze the underlying causes. Analytical thinking helps business professionals see patterns, connections, and relationships between various factors, which can lead to more accurate problem diagnosis and effective solutions.

2. Creativity

Problem-solving often requires thinking outside the box and coming up with creative solutions. In a business context, this could mean finding new ways to increase efficiency, improve customer satisfaction, or adapt to changing market conditions. Creative problem solvers are not afraid to take risks and explore innovative ideas that may not have been tried before.

3. Collaboration

In many business problems, collaboration is key. Effective problem solvers know how to work well with others, communicate their ideas clearly, and listen actively. Collaboration can involve brainstorming sessions, team meetings, and seeking input from colleagues or industry experts. By involving different perspectives and expertise, business professionals can come up with more comprehensive and effective solutions.

4. Decision Making

Another critical skill for effective problem-solving in business is decision making. Business professionals need to be able to evaluate different options, weigh the pros and cons, and make informed decisions based on the available information. This requires critical thinking, the ability to consider multiple factors, and a good understanding of the potential impact of each decision.

5. Adaptability

The business environment is constantly changing, which means effective problem solvers need to be adaptable. They should be able to quickly adjust their strategies and approaches as new information or circumstances arise. Being open to change and having a flexible mindset can help business professionals navigate unexpected challenges and find innovative solutions.

By developing and honing these skills, individuals can become effective problem solvers in a business setting. The problem-solving cycle in business studies provides a framework for applying these skills systematically, allowing organizations to identify, analyze, and solve problems effectively.

Problem Solving Techniques Used in Business Studies

In the field of business studies, problem solving is a vital skill that professionals need to develop. Whether it’s identifying and resolving issues within an organization or coming up with innovative solutions, problem solving is at the core of a successful business strategy.

There are several problem-solving techniques that are commonly used in business studies. One such technique is brainstorming, which involves generating as many ideas as possible in a group setting. By encouraging creativity and free thinking, brainstorming helps to uncover different perspectives and potential solutions to a given problem.

Another technique used in business studies is root cause analysis. This method involves identifying the underlying causes of a problem rather than just addressing the symptoms. By digging deeper and understanding the root cause, businesses can implement long-lasting solutions that prevent similar problems from occurring in the future.

Furthermore, the SWOT analysis technique is widely used in business studies to assess and solve problems. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. By analyzing these four factors, businesses can identify their strengths and weaknesses, as well as potential opportunities and threats in the external environment. This analysis provides a comprehensive understanding of the current situation and helps businesses develop effective strategies to overcome challenges.

Additionally, decision-making models are frequently used in business studies to solve problems. These models involve a systematic approach to making decisions, considering various factors such as the cost-benefit analysis, risk assessment, and stakeholder analysis. By following a structured decision-making process, businesses can make informed choices that lead to the best possible outcomes.

Overall, problem solving techniques play a crucial role in business studies. By employing these techniques, professionals can effectively identify, analyze, and resolve issues that arise in the business environment. Whether it’s through brainstorming, root cause analysis, SWOT analysis, or decision-making models, businesses can develop innovative solutions and overcome challenges to achieve success.

The Future of Problem Solving in Business

In today’s rapidly changing business landscape, problem solving has become an essential skill for success. As new technologies and industries emerge, businesses are faced with increasingly complex challenges that require innovative solutions.

Adapting to the Digital Age

Advancements in technology such as artificial intelligence, machine learning, and data analytics are transforming the way businesses operate. These tools can facilitate problem solving by providing organizations with valuable insights and predictive capabilities.

For example, by analyzing large amounts of data, businesses can identify patterns and trends that may not be immediately apparent. This allows them to make data-driven decisions and proactively address potential issues before they become major problems.

Collaborative Problem Solving

The future of problem solving in business also involves a shift towards more collaborative approaches. While individual problem solving skills will always be important, businesses are realizing the power of teamwork in finding creative solutions.

Collaborative problem solving brings together individuals with diverse backgrounds, skills, and perspectives to tackle complex challenges. This allows for a more holistic understanding of the problem and encourages innovative thinking.

Additionally, collaborative problem solving fosters a culture of continuous learning and improvement. By working together, team members can learn from each other’s experiences and develop new skills that can be applied to future problem-solving endeavors.

In conclusion, the future of problem solving in business lies in embracing technological advancements and cultivating a collaborative mindset. By leveraging these approaches, businesses can navigate the complexities of the modern world and find innovative solutions to drive success.

Questions and answers:

How can the problem-solving cycle be applied in business studies.

The problem-solving cycle in business studies can be applied by identifying the problem, gathering relevant information, generating potential solutions, analyzing the solutions, selecting the best one, implementing the solution, and evaluating the outcome.

What are the essential steps in the problem-solving cycle?

The essential steps in the problem-solving cycle are problem identification, information gathering, solution generation, solution analysis, solution selection, solution implementation, and outcome evaluation.

Why is the problem-solving cycle important in business studies?

The problem-solving cycle is important in business studies because it helps to develop critical thinking skills, find effective solutions to business problems, improve decision-making, and enhance overall business performance.

What are some strategies for problem-solving in business studies?

Some strategies for problem-solving in business studies include brainstorming, conducting market research, analyzing data, seeking input from stakeholders, using decision-making models, and evaluating outcomes.

Can the problem-solving cycle be used in other disciplines besides business studies?

Yes, the problem-solving cycle can be used in other disciplines besides business studies. It is a general framework that can be applied to various fields such as engineering, healthcare, education, and technology.

What is the problem solving cycle in business studies?

The problem solving cycle in business studies is a systematic approach that helps businesses identify and solve problems. It involves several steps, including problem identification, data collection and analysis, solution generation, and implementation and evaluation of the solution.

Why is the problem solving cycle important in business studies?

The problem solving cycle is important in business studies because it helps businesses address challenges and improve their operations. By following a structured problem solving process, businesses can make data-driven decisions and implement effective solutions, leading to better outcomes and increased success.

Related posts:

  • The Stages of the Problem Solving Cycle in Cognitive Psychology – Understanding, Planning, Execution, Evaluation, and Reflection
  • A Comprehensive Guide to the Problem Solving Cycle in Psychology – Strategies, Techniques, and Applications
  • Exploring the Problem Solving Cycle in Computer Science – Strategies, Techniques, and Tools
  • The Importance of Implementing the Problem Solving Cycle in Education to Foster Critical Thinking and Problem-Solving Skills in Students
  • The Step-by-Step Problem Solving Cycle for Effective Solutions
  • The Comprehensive Guide to the Problem Solving Cycle in PDF Format
  • A Comprehensive Guide on the Problem Solving Cycle – Step-by-Step Approach with Real-Life Example
  • The Seven Essential Steps of the Problem Solving Cycle

6.1 Problem Solving to Find Entrepreneurial Solutions

Portions of the material in this section are based on original work by Geoffrey Graybeal and produced with support from the Rebus Community. The original is freely available under the terms of the CC BY 4.0 license at https://press.rebus.community/media-innovation-and-entrepreneurship/.

Learning Objectives

By the end of this section, you will be able to:

  • Define problem solving in the context of entrepreneurship
  • Describe and compare the adaptive model and the innovative model of problem solving
  • Identify the skills entrepreneurs need for effective problem solving
  • Identify types of problem solvers

As you’ve learned, entrepreneurs often visualize an opportunity gap, a gap between what exists and what could exist, as Hirabayashi and Lidey did with Shine. Entrepreneurial problem solving is the process of using innovation and creative solutions to close that gap by resolving societal, business, or technological problems. Sometimes, personal problems can lead to entrepreneurial opportunities if validated in the market. The entrepreneur visualizes the prospect of filling the gap with an innovative solution that might entail the revision of a product or the creation of an entirely new product. In any case, the entrepreneur approaches the problem-solving process in various ways. This chapter is more about problem solving as it pertains to the entrepreneur’s thought process and approach rather than on problem solving in the sense of opportunity recognition and filling those gaps with new products.

For example, as we read in Identifying Entrepreneurial Opportunity , Sara Blakely (as shown in Figure 6.2 ) saw a need for body contouring and smoothing undergarments one day in the late 1990s when she was getting dressed for a party and couldn’t find what she needed to give her a silhouette she’d be pleased with in a pair of slacks. She saw a problem: a market need. But her problem-solving efforts are what drove her to turn her solution (Spanx undergarments) into a viable product. Those efforts came from her self-admitted can-do attitude: “It’s really important to be resourceful and scrappy—a glass half-full mindset.” 1 Her efforts at creating a new undergarment met resistance with hosiery executives, most of whom were male and out of touch with their female consumers. The hosiery owner who decided to help Blakely initially passed on the idea until running it by his daughters and realizing she was on to something. That something became Spanx , and today, Blakely is a successful entrepreneur. 2

Before getting into the heart of this chapter, we need to make a distinction: Decision making is different from problem solving . A decision is needed to continue or smooth a process affecting the operation of a firm. It can be intuitive or might require research and a long period of consideration. Problem solving , however, is more direct. It entails the solution of some problem where a gap exists between a current state and a desired state. Entrepreneurs are problem solvers who offer solutions using creativity or innovative ventures that exploit opportunities. This chapter focuses on different approaches to problem solving and need recognition that help potential entrepreneurs come up with ideas and refine those ideas.

Two Problem Solving Models: Adaptive and Innovative

There are two prominent established problem-solving models: adaptive and innovative . A renowned British psychologist, Michael Kirton , developed the Kirton Adaption-Innovation (KAI) Inventory to measure an individual’s style of problem solving. 3 Problem-solving preferences are dependent on the personality characteristics of originality, conformity, and efficiency, according to Kirton. The KAI inventory identifies an individual’s problem-solving approach by measuring agreement with statements that align with characteristics, such as the ability to produce many novel ideas, to follow rules and get along in groups, and to systematically orient daily behavior. The results categorize an individual as an innovator or an adaptor. Innovators are highly original, do not like to conform, and value efficiency less than adaptors.

The first and more conservative approach an entrepreneur may use to solve problems is the adaptive model. The adaptive model seeks solutions for problems in ways that are tested and known to be effective. An adaptive model accepts the problem definition and is concerned with resolving problems rather than finding them. This approach seeks greater efficiency while aiming at continuity and stability. The second and more creative approach is the innovative model of entrepreneurial problem solving, which uses techniques that are unknown to the market and that bring advantage to an organization. An innovative problem-solving style challenges the problem definition, discovers problems and avenues for their solutions, and questions existing assumptions—in a nutshell, it does things differently. It uses outside-the-box thinking and searches for novel solutions. Novelty is a shared trait of creative entrepreneurship, and it’s why entrepreneurs gravitate toward this method of problem solving. According to Dr. Shaun M. Powell , a senior lecturer at the University of Wollongong, Australia: “Creative entrepreneurs are notable for a distinctive management style that is based on intuition, informality and rapid decision making, whereas the more conventional thinking styles are not in accord with the unique attributes of creative entrepreneurs.” 4 This way of problem solving doesn’t alter an existing product. It is the creation of something entirely new.

For example, healthcare facilities have long been known as a source of methicillin-resistant Staphylococcus aureus (MRSA), a deadly infection that can have long-term effects on patients. Vital Vio , led by Colleen Costello , has developed white light technology that effectively disinfects healthcare facilities by targeting a molecule specific to bacteria. The light, safe to humans, can burn constantly to kill regenerative bacteria. An adaptive problem-solving model would seek to minimize harm of MRSA within a hospital—to respond to it—whereas the Vital Vio is an entirely new technique that seeks to eliminate it. Adaptive solutions to MRSA include established processes and protocols for prevention, such as having doctors, nurses, and other healthcare providers clean their hands with soap and water, or an alcohol-based hand rub before and after patient care, testing patients to see if they have MRSA on their skin, cleaning hospital rooms and medical equipment, and washing and drying clothes and bed linens in the warmest recommended temperatures. 5

Link to Learning

Visit Inc. Magazine for support and advice for up-and-coming startups to learn more. Examples of how “Dorm Room” entrepreneurs spot and pursue opportunities are shared along with tips and advice for making your startup a success.

Problem-Solving Skills

While identifying problems is a necessary part of the origin of the entrepreneurial process, managing problems is an entirely different aspect once a venture is off the ground and running. An entrepreneur does not have the luxury of avoiding problems and is often responsible for all problem solving in a startup or other form of business. There are certain skills that entrepreneurs possess that make them particularly good problem solvers. Let’s examine each skill (shown in Figure 6.3 ) .

Critical Thinking

Critical thinking is the complex analysis of a problem or issue with the goal of solving the problem or making a decision. The entrepreneur analyzes and peels away the layers of a problem to find the core of an issue facing a business. The entrepreneur focuses on the heart of the problem and responds reasonably and openly to suggestions for solving it. Critical thinking is not only important for developing entrepreneurial ideas: it is a sought-after asset in education and employment. Entrepreneur Rebecca Kantar dropped out of Harvard in 2015 to found the tech startup Imbellus , which aims to replace standardized college admissions tests like the SAT with interactive scenarios that test critical-thinking skills. Many standardized tests may include multiple choice questions asking for the answer to a straightforward knowledge question or math problem. Kantar seeks to create tests that are more concerned with the analytic ability and reasoning that goes into the process of solving the problem. Imbellus says it aims to test “how people think,” not just what they know. The platform, which has not yet launched, will use simulations for its user assessments. 6

Read more about problem solving and EnterpriseWorks/Vita’s story at Harvard Business Review .

Communication

Communication skills , the ability to communicate messages effectively to an intended recipient, are the skills entrepreneurs use to pool resources for the purposes of investigating solutions leading to innovative problem solving and competitive advantage. Good communication allows for the free association of ideas between entrepreneurs and businesses. It can illustrate a problem area or a shared vision, and seeks stakeholder buy-in from various constituencies. Networking and communication within an industry allow the entrepreneur to recognize the position of an enterprise in the market and work toward verbalizing solutions that move an organization beyond its current state. By “verbalizing,” we mean communication from and with the company/entity. Internal communications include company emails, newsletters, presentations, and reports that can set strategic goals and objectives, and report on what has been accomplished and what goals and objectives remain, so that employees within an organization are knowledgeable and can work on solving problems that remain within the organization. External communications could include press releases, blogs and websites, social media, public speeches, and presentations that explain the company’s solutions to problems. They could also be investor pitches complete with business plans and financial projections.

Ideation exercises, such as brainstorming sessions (discussed in Creativity, Innovation, and Invention , are good communication tools that entrepreneurs can use to generate solutions to problems. Another such tool is a hackathon —an event, usually hosted by a tech company or organization, which brings together programmers and workers with other degrees of specialization within the company, community, or organization to collaborate on a project over a short period of time. These can last from twenty-four hours to a few days over a weekend. A hackathon can be an internal company-wide initiative or an external event that brings community participants together. A business model canvas , which is covered in Business Model and Plan and other activities outlined in other chapters can be used internally or externally to identify problems and work toward creating a viable solution.

Networking is an important manifestation of useful communication. What better method is there of presenting one’s concept, gaining funding and buy-in, and marketing for the startup than through building a network of individuals willing to support your venture? A network may consist of potential employees, customers, board members, outside advisors, investors, or champions (people who just love your product) with no direct vested interest. Social networks consist of weak ties and strong ties. Sociologist Mark Granovetter studied such networks back in the 1970s, and his findings still apply today, even if we include social media networks in the definition too. Weak ties facilitate flow of information and community organization, he said, whereas strong ties represent strong connections among close friends, family members, and supportive coworkers. 7 Strong ties require more work to maintain than weak ties (as illustrated by the strong lines and weak dotted lines in Figure 6.4 ) and in a business context, they don’t lead to many new opportunities. Weak ties, in contrast, do open doors in that they act as bridges to other weak ties within functional areas or departments that you might not have had access to directly or through strong ties. 8

In fact, many young entrepreneurs, including tech entrepreneur Oliver Isaacs , realize college is a great place to begin building teams. Isaacs is the founder of viral opinion network Amirite.com , which is widely credited as the place where Internet memes started and online slang got a foothold. 9 Amirite.com consists of a large network of pages and partnerships on Facebook and Instagram that reach 15 million users each month. Isaacs recommends using your alumni network to build a team and customer base for your own venture because you never know if you’re talking to a future employee or partner.

Sharing of ideas and resources is highly valued in the entrepreneurial process. Communication is a vital skill in problem solving because the ability to identify and articulate the problem (define the problem space) is necessary to adequately address a problem. A problem can be too vague or broad or narrow. Thus, communicating the problem is important, as is conveying the solution.

Decisiveness

Decisiveness is as it sounds: the ability to make a quick, effective decision, not letting too much time go by in the process. Entrepreneurs must be productive, even in the face of risk. They often rely on intuition as well as on hard facts in making a choice. They ask what problem needs to be solved, think about solutions, and then consider the means necessary to implement an idea. And the decisions must be informed with research.

For example, as explained in Adam Grant’s book The Originals , the co-founders of Warby Parker, a venture-backed startup focused on the eyewear industry, started their company while they were graduate students. At the time they knew little about the industry, but after conducting some detailed research, they learned that the industry was dominated by one major player—Luxottica. They used this information and other data to refine their strategy and business model (focusing mainly on value, quality, and convenience via an online channel). By the time they decided to launch the business, they had thought through the key details, and they attained rapid early success. Today Warby Parker has over 100 retail stores in the US, is profitable, and is valued at almost $2 billion.

Decisiveness is the catapult to progress. Amazon founder Jeff Bezos preaches the importance of decisiveness throughout his organization. Bezos believes that decisiveness can even lead to innovation. Bezos advocates for making decisions after obtaining 70 percent of the information you need to do so: “Being wrong may be less costly than you think, whereas being slow is going to be expensive for sure,” Bezos wrote in a 2017 annual letter to stockholders. 10

Read this LinkedIn blog post on decisiveness to learn more.

Ability to Analyze Data

Data analysis is the process of analyzing data and modeling it into a structure that leads to innovative conclusions. Identifying Entrepreneurial Opportunity covered much of the sources of data that entrepreneurs might seek. But it is one thing to amass information and statistics. It is another to make sense of that data, to use it to fill a market need or forecast a trend to come. Successful founders know how to pose questions about and make meaning out of information. And if they can’t do that themselves, they know how to bring in experts who can.

In addition to public sources of broad data, a business can collect data on customers when they interact with the company on social media or when they visit the company website, especially if they complete a credit card transaction. They can collect their own specific data on their own customers, including location, name, activity, and how they got to the website. Analyzing these data will give the entrepreneur a better idea about the interested audience’s demographic.

In entrepreneurship, analyzing data can help with opportunity recognition, creation, and assessment by analyzing data in a variety of ways. Entrepreneurs can explore and leverage different data sources to identify and compare “attractive” opportunities, since such analyses can describe what has happened, why it happened, and how likely it is to happen again in the future. In business in general, analytics is used to help managers/entrepreneurs gain improved insight about their business operations/emerging ventures and make better, fact-based decisions.

Analytics can be descriptive, predictive, or prescriptive. Descriptive analytics involves understanding what has happened and what is happening; predictive analytics uses data from past performance to estimate future performance; and prescriptive analytics uses the results of descriptive and predictive analytics to make decisions. Data analysis can be applied to manage customer relations, inform financial and marketing activities, make pricing decisions, manage the supply chain, and plan for human resource needs, among other functions of a venture. In addition to statistical analysis, quantitative methods, and computer models to aid decision-making, companies are also increasingly using artificial intelligence algorithms to analyze data and make quick decisions.

Understanding of Business and Industry

Entrepreneurs need sound understanding of markets and industries. Often times, they are already working in a large organization when they see growth opportunities or inefficiencies in a market. The employee gains a deep understanding of the industry at hand. If the employee considers a possible solution for a problem, this solution might become the basis for a new business.

For example, consider a marketing agency that used traditional marketing for thirty years. This agency had an established clientele. An executive in the organization began studying social media analytics and social media. The executive approached the owner of the business to change processes and begin serving clients through social media, but the owner refused. Clients within the agency began to clamor for exposure on social media. The marketing executive investigated the possibility of building an agency in her locale servicing clients who wish to utilize social media. The marketing executive left the organization and started her own agency (providing, of course, that this is in compliance with any noncompete clauses in her contract). Her competitive advantage was familiarity with both traditional and social media venues. Later, the original agency started floundering because it did not offer social media advertising. Our intrepid executive purchased the agency to gain the clientele and serve those wishing to move away from traditional marketing.

A similar experience occurred for entrepreneur Katie Witkin . After working in traditional marketing roles, the University of Wisconsin-Madison graduate, pictured in Figure 6.5 , left agency life behind four years out of college to cofound her own company, AGW Group . In 2009, Witkin had been interning at a music marketing agency that didn’t have a social media department. She knew, both from her time at college and from observing industry trends, that social media was changing the way companies connected with customers. For her own venture, she expanded the focus to all supporting brands to manage all things digital. Today, the cultural and marketing communications agency has fifteen employees and big-name clients ranging from HBO to Red Bull. 11

Resourcefulness

Resourcefulness is the ability to discover clever solutions to obstacles. Sherrie Campbell , a psychologist, author, and frequent contributor to Entrepreneur magazine on business topics, put it this way:

“There is not a more useful or important trait to possess than resourcefulness in the pursuit of success. Resourcefulness is a mindset, and is especially relevant when the goals you have set are difficult to achieve or you cannot envision a clear path to get to where you desire to go. With a resourcefulness mindset you are driven to find a way. An attitude of resourcefulness inspires out-of-the-box thinking, the generation of new ideas, and the ability to visualize all the possible ways to achieve what you desire. Resourcefulness turns you into a scrappy, inventive and enterprising entrepreneur. It places you a cut above the rest.” 12

Entrepreneurs start thinking about a business venture or startup by talking to people and procuring experts to help create, fund, and begin a business. Entrepreneurs are risk takers, passionate about new endeavors. If they don’t have a college degree or a great deal of business experience, they understand there are many resources available to support them in the endeavor, such as the Service Corps of Retired Executives (SCORE) and the Small Business Administration (SBA) . There are many sources available to fund the business with little or no debt and options, as you will see in the chapter on Entrepreneurial Finance and Accounting . The entrepreneur follows a vision and researches opportunities to move toward a dream.

For example, in the late 1990s, Bill McBean and his business partner Billy Sterett had an opportunity to buy an underperforming auto dealership that would make their company the dominant one in the market. Neither wanting to take cash from other ventures nor wanting to borrow more money and tie themselves to more debt, the entrepreneurs were resourceful by finding another path forward to obtaining the money necessary for the acquisition they both coveted. They changed banks and renegotiated their banking payback requirements, lowering their interest payments, reducing fees, and lowering their monthly payments, ultimately freeing up a significant amount of cash that allowed them to buy the new company. 13

Types of Problem Solvers

Entrepreneurs have an insatiable appetite for problem solving. This drive motivates them to find a resolution when a gap in a product or service occurs. They recognize opportunities and take advantage of them. There are several types of entrepreneurial problem solvers, including self-regulators, theorists, and petitioners.

Self-Regulating Problem Solvers

Self-regulating problem solvers are autonomous and work on their own without external influence. They have the ability to see a problem, visualize a possible solution to the problem, and seek to devise a solution, as Figure 6.6 illustrates. The solution may be a risk, but a self-regulating problem solver will recognize, evaluate, and mitigate the risk. For example, an entrepreneur has programmed a computerized process for a client, but in testing it, finds the program continually falls into a loop, meaning it gets stuck in a cycle and doesn’t progress. Rather than wait for the client to find the problem, the entrepreneur searches the code for the error causing the loop, immediately edits it, and delivers the corrected program to the customer. There is immediate analysis, immediate correction, and immediate implementation. The self-regulating problem solvers’ biggest competitive advantage is the speed with which they recognize and provide solutions to problems.

Theorist Problem Solvers

Theorist problem solvers see a problem and begin to consider a path toward solving the problem using a theory. Theorist problem solvers are process oriented and systematic. While managers may start with a problem and focus on an outcome with little consideration of a means to an end, entrepreneurs may see a problem and begin to build a path with what is known, a theory, toward an outcome. That is, the entrepreneur proceeds through the steps to solve the problem and then builds on the successes, rejects the failures, and works toward the outcome by experimenting and building on known results. At this point, the problem solver may not know the outcome, but a solution will arise as experiments toward a solution occur. Figure 6.7 shows this process.

For example, if we consider Marie Curie as an entrepreneur, Curie worked toward the isolation of an element. As different approaches to isolating the element failed, Curie recorded the failures and attempted other possible solutions. Curie’s failed theories eventually revealed the outcome for the isolation of radium. Like Curie, theorists use considered analysis, considered corrective action, and a considered implementation process. When time is of the essence, entrepreneurs should understand continual experimentation slows the problem-solving process.

Petitioner Problem Solvers

Petitioner problem solvers ( Figure 6.8 ) see a problem and ask others for solution ideas. This entrepreneur likes to consult a person who has “been there and done that.” The petitioner might also prefer to solve the problem in a team environment. Petitioning the entrepreneurial team for input ensures that the entrepreneur is on a consensus-driven path. This type of problem solving takes the longest to complete because the entrepreneur must engage in a democratic process that allows all members on the team to have input. The process involves exploration of alternatives for the ultimate solution. In organizational decision-making, for example, comprehensiveness is a measure of the extent a firm attempts to be inclusive or exhaustive in its decision-making. Comprehensiveness can be gauged by the number of scheduled meetings, the process by which information is sought, the process by which input is obtained from external sources, the number of employees involved, the use of specialized consultants and the functional expertise of the people involved, the years of historical data review, and the assignment of primary responsibility, among other factors. Comprehensive decision-making would be an example of a petitioner problem-solving style, as it seeks input from a vast number of team members.

A charette —a meeting to resolve conflicts and identify solutions—is another example that employs a petitioner problem-solving approach. Often times, a developer of a new project might hold a community charette to aid in the design of a project, hoping to gain approval from elected officials. In the building example, this could consist of the developer and his team of architects, project designers, and people with expertise in the project working alongside community members, business executives, elected officials, or representatives like staff members or citizen-appointed boards like a planning board. Such an activity is representative of a petitioner problem-solving approach, as opposed to a developer representative designing the project with no input from anyone else.

In summary, there is no right or wrong style of problem solving; each problem solver must rely on the instincts that best drive innovation. Further, they must remember that not all problem-solving methods work in every situation. They must be willing to adapt their own preference to the situation to maximize efficiency and ensure they find an effective solution. Attempting to force a problem-solving style may prevent an organization from finding the best solution. While general entrepreneurial problem-solving skills such as critical thinking, decisiveness, communication, and the ability to analyze data will likely be used on a regular basis in your life and entrepreneurial journey, other problem-solving skills and the approach you take will depend on the problem as it arises.

There are a number of resources online that can help analyze your problem-solving abilities. Mindtools.com is one such resource. These are useful to learn your general problem-solving tendencies before being called upon to apply them in a real-world setting. One of the problem-solving techniques available from mindtools.com offers that problems can be addressed from six different perspectives. Called CATWOE , the approach is an acronym for Customers, Actors (people within the organization), Transformative, Worldwide, Owner, and Environment (organizational).

Learn more about the CATWOE technique for problem solving.

  • 1 Helen Lock. “‘I Put My Butt on the Line’: How Spanx Took Over the World.” The Guardian. July 11, 2016. https://www.theguardian.com/small-business-network/2016/jul/11/put-butt-on-the-line-how-spanx-world
  • 2 Gary Keller. “Business Success Series, Part 1: Sara Blakely-Spanx.” The One Thing. n.d. https://www.the1thing.com/blog/the-one-thing/business-success-series-part-1-sara-blakely-spanx/
  • 3 “Characteristics of Adaptors and Innovators.” Kirton KAI Inventory Tool . n.d. http://pubs.acs.org/subscribe/archive/ci/31/i11/html/11hipple_box3.ci.html
  • 4 Shaun Powell. “The Management and Consumption of Organisational Creativity.” Journal of Consumer Marketing 25, no. 3 (2008): 158–166.
  • 5 N.C Healthcare-Associated Infections Prevention Program. Healthcare-Associated Infections in North Carolina: 2014 Annual Report, Healthcare Consumer Version. April 2015. https://epi.dph.ncdhhs.gov/cd/hai/figures/hai_apr2015_consumers_annual.pdf
  • 6 Romesh Ratnesar. “What If Instead of Taking the SAT You Got to Play a Video Game?” Bloomberg BusinessWeek. March 19, 2019. https://www.bloomberg.com/news/features/2019-03-19/a-harvard-dropout-s-plan-to-fix-college-admissions-with-video-games
  • 7 Mark Granovetter. “The Strength of Weak Ties.” American Journal of Sociology 5 (1973): 1360–1380.
  • 8 Jacob Morgan. “Why Every Employee Should Be Building Weak Ties at Work.” Forbes. March 11, 2014. https://www.forbes.com/sites/jacobmorgan/2014/03/11/every-employee-weak-ties-work/#277851063168
  • 9 John White. “Top UK Influencer Oliver Isaacs Reveals What It Takes to Go Viral.” Inc . August 6, 2017. https://www.inc.com/john-white/top-uk-influencer-oliver-isaacs-reveals-what-it-ta.html
  • 10 Erik Larson. “How Jeff Bezos Uses Faster Better Decisions to Keep Amazon Innovating.” Forbes . September 24, 2018. https://www.forbes.com/sites/eriklarson/2018/09/24/how-jeff-bezos-uses-faster-better-decisions-to-keep-amazon-innovating/#492c351b7a65
  • 11 Stephanie Schomer. “How Getting Laid Off Empowered This Entrepreneur to Start Her Own Award-Winning Marketing Agency.” Entrepreneur. January 15, 2019. https://www.entrepreneur.com/article/326212
  • 12 Sherrie Campbell. “6 Characteristics of Resourceful People That Bring Them Success.” Entrepreneur. March 10, 2016. https://www.entrepreneur.com/article/272171
  • 13 “Resourcefulness Is More Important Than Resources.” The Ecommerce Mindset: How Successful Store Owners Think. n.d. https://www.oberlo.com/ebooks/mindset/resourceful-entrepreneur

As an Amazon Associate we earn from qualifying purchases.

This book may not be used in the training of large language models or otherwise be ingested into large language models or generative AI offerings without OpenStax's permission.

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Access for free at https://openstax.org/books/entrepreneurship/pages/1-introduction
  • Authors: Michael Laverty, Chris Littel
  • Publisher/website: OpenStax
  • Book title: Entrepreneurship
  • Publication date: Jan 16, 2020
  • Location: Houston, Texas
  • Book URL: https://openstax.org/books/entrepreneurship/pages/1-introduction
  • Section URL: https://openstax.org/books/entrepreneurship/pages/6-1-problem-solving-to-find-entrepreneurial-solutions

© Jan 4, 2024 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.

  • 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
  • Coaching Leadership Style
  • 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 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
  • What Are Strategic Initiatives: Examples and Development

What Is Problem Solving in Business?

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

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

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

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

Why Is Problem-Solving Important in Business?

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

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

How Do You Solve Business Problems Effectively?

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

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

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

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

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

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

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

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

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

What Are Problem-Solving Skills?

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

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

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

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

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

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

How Can You Improve Your Problem-Solving Skills?

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

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

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

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

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

Enhance Your Problem-Solving Skills with CMOE

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

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:

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.

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: Mar 23, 2024 4:47 PM
  • URL: https://libguides.nypl.org/problem_solving_in_business

Grasshopper.com

  • Grasshopper

Business Problem Solving Techniques

  • Completion time About 15 minutes

We’ve talked about how your business idea should solve consumers’ problems, but what about problems that arise inside your business? How can you solve the problems that pop up over the course of running your business?

Problem solving can be done many different ways, but a few key steps will always help you find the best solution. In this section, we’ll discuss what steps to take to kick start your problem solving and how to address some common problems you might face

General Problem Solving Techniques

1. identify the problem.

It seems obvious, but the most important step in finding a solution is to correctly identify the problem. It’s hard to start solving a problem if you can’t put your finger on exactly what’s wrong.

Is the problem concrete – like profits that are lower than your goal or revenue that’s trending down – or more intangible – like disagreements with a cofounder?

2. Describe the cause

Knowing what the problem is is only half the battle. It’s also important to understand what’s causing the problem. One problem can be caused by multiple things, so the most effective solution takes the cause into consideration. Determining the cause might even help to make the right solution more obvious.

For example, if your manufacturing productivity is dropping, it could be caused by unproductive employees or malfunctioning machines. Your solutions will vary widely based on which you determine to be the cause of the problem.

3. Brainstorm solutions

It can be tempting to go with your first instinct when it comes to problem solving, but you need to fight the urge. This is when you should really get creative. Try to identify as many solutions as possible, so you have a wide variety to choose from. Weighing the pros and cons of multiple options will help you find the best alternative, not just an adequate solution.

4. Implement a solution and monitor results

Once you’ve outlined the different solutions, you can choose the option that will be most effective for your business. In the ideal situation, you implement a solution and it works seamlessly. In reality, the first solution you try may not solve the problem completely. That’s why it’s important to continue to monitor the issue until you’re satisfied that it’s been solved to your satisfaction.

Common Problems

Starting your own business is an adventure, and many of the problems you face will be unique to you and your company. There are, however, a few themes that tend to be common issues for small business owners.

As a new business owner, taking risks may not come as second nature, but it’s a necessary evil. In order to successfully run a small business, you’ll need to get a comfortable with taking risks here and there.

Financial risk is the most obvious kind, but being an entrepreneur entails many different kinds of risk. When you decide to hire an employee, that’s management risk. When you narrow in on one niche versus a broader target, that’s market risk

The key to risk-taking is research. It’s much easier to be comfortable taking risks if they’re calculated risks. If you know all of the possible outcomes, the pros and cons of each, you can decide whether or not certain risks are worthwhile. Knowing the potential rewards and odds of success will help you get more comfortable with the necessary risks.

Competition

There’s competition in every industry, but some are more relentless than others. Competitors can be the main problem standing between your product and a successful business.

The key to beating the competition is to differentiate yourself. Trying to copy everything competitors do is a losing battle, so choose one factor to excel at. For example, you can work on being the customer service leader in the industry or having the most reliable product.

The foundation behind differentiation is a knowledge and understanding of your competitors and what they have to offer. Subscribe to their blog to see what kind of content they’re publishing, purchase their product to in-depth how it compares to yours. You can even invest in a marketing intelligence platform to see how your company stacks up.

Whether it happens too slowly or too quickly, growth can be a huge problem for small businesses. While having too many customers can sound like a good thing, if you can’t meet their needs, your business will suffer.

Dealing with growth is best done in advance. Before your company starts taking off, make sure all of your processes are scalable. Don’t implement anything that you can’t maintain at a much higher volume.

Dealing with a lack of growth can be done by re-evaluating your business and what you have to offer. If you’re confident in your offering, just keep plugging away and making customers happy. Growth will happen naturally.

No matter who you are, you can count on facing plenty of problems when it comes to running your business. By getting comfortable with and mastering problem solving from the get-go, you can set yourself up for a much easier road to business success.

Facebook

Talk about this lesson

My Courses

More Advanced Problem-solving Techniques Notes and Exam Questions Business Studies Grade 12

More Advanced Problem-solving Techniques Notes and Exam Questions Business Studies Grade 12

More Advanced Problem-solving Techniques : Notes, Common Exam Questions and Answers Guide, Online Quizzes and Activities for Business Studies Grade 12 Revision Studies, from Creative Thinking section. This content is under Term 1 as per the CAPS Curriculum.

On this page, grade 12 students learn and study for revision using REAL EXAM questions based on More Advanced Problem-solving Techniques topic, using activities and engaging quizzes. Every South African grade 12 learner who wants to pass Business Studies subject with a distinction, needs to go through the valuable study resources on this page.

Table of Contents

More Advanced Problem-solving Techniques Business Studies Grade 12

Advanced problem-solving techniques are often used in business and organizational settings to address complex issues and make strategic decisions. Here are some additional techniques:

  • Delphi Technique:  This technique involves a group of experts who provide input on a problem or issue through a series of questionnaires and feedback rounds. The goal is to achieve a consensus among the experts on a solution or decision.
  • Force Field Analysis:  This technique involves identifying the driving and restraining forces that influence a problem or decision. By analyzing these forces, individuals or groups can develop strategies to strengthen the driving forces and weaken the restraining forces.
  • Brainstorming:  Brainstorming is a technique used to generate a large number of ideas or solutions to a problem or challenge. It involves a group of people coming together to share their ideas freely and without criticism.
  • Nominal Group Technique:  This technique is similar to brainstorming but involves individuals generating their ideas independently and then sharing them with the group. The group then evaluates and ranks the ideas to determine the best solution or decision.
  • SCAMPER Technique:  This technique involves asking questions to stimulate  creative thinking  and generate new ideas. The questions focus on different aspects of a problem or challenge, such as ways to modify, substitute, or combine different elements.
  • Empty Chair Technique:  This technique involves visualizing an absent or imaginary person in a meeting or discussion. This person can represent a different perspective or stakeholder, which can help to generate new ideas and solutions.
  • Forced Combinations Technique:  This technique involves combining two or more unrelated ideas or concepts to generate new ideas and solutions.
  • Mind Mapping:  Mind mapping is a visual technique used to organize ideas and information. It involves creating a diagram that shows the relationships between different ideas or concepts.

By using these advanced problem-solving techniques, individuals and organizations can approach complex issues and challenges in a structured and creative way, leading to more innovative solutions and better decision making.

Delphi Technique

Delphi Technique  is a structured process that involves a group of experts who provide input on a problem or issue through a series of questionnaires and feedback rounds. The goal is to achieve a consensus among the experts on a solution or decision.

Purposes of the Delphi Technique:

  • To generate ideas and solutions to a problem
  • To gather expert opinions and knowledge
  • To explore potential future scenarios
  • To evaluate the feasibility and effectiveness of different solutions
  • To make informed decisions based on the consensus of experts

Steps in the Delphi Technique:

  • Identify the problem or issue to be addressed
  • Select a group of experts who have knowledge or experience in the relevant area
  • Provide the experts with a questionnaire that outlines the problem and asks for their input
  • Collect the responses and analyze them to identify areas of agreement and disagreement
  • Provide feedback to the experts on the results of the analysis
  • Repeat the process of collecting feedback and analyzing the results until a consensus is achieved

Examples of where to use the Delphi Technique:

  • In healthcare to gather expert opinions on treatment options
  • In business to evaluate the feasibility of different marketing strategies
  • In government to gather expert opinions on policy decisions

Advantages of the Delphi Technique:

  • Allows for the gathering of input from experts who may be geographically dispersed
  • Can lead to more informed decision making based on a consensus of expert opinions
  • Provides a structured approach to problem solving

Disadvantages of the Delphi Technique:

  • Can be time-consuming and costly
  • May not provide a diverse range of perspectives or input
  • Experts may have biases or personal agendas that could affect the consensus reached

The Delphi Technique is a valuable tool for gathering expert opinions and knowledge to address complex problems and make informed decisions. While it has some limitations, it can lead to more effective problem solving and decision making in a variety of contexts.

Force Field Analysis

Force Field Analysis  is a problem-solving technique used to analyze the driving and restraining forces that affect a decision or change. The analysis identifies the factors that help or hinder the change and develops strategies to strengthen the driving forces and weaken the restraining forces. Here is an overview of the technique:
  • Identify the driving and restraining forces that affect a decision or change
  • Develop strategies to strengthen the driving forces
  • Develop strategies to weaken the restraining forces
  • Evaluate the potential impact of the change or decision
  • Identify the problem or decision
  • Identify the driving forces that support the change or decision
  • Identify the restraining forces that resist the change or decision
  • Evaluate the strength of each force
  • Re-evaluate the strength of each force after implementing the strategies

Examples of where to use it:

  • Analyzing a potential business acquisition
  • Implementing a new technology system
  • Introducing a new product line
  • Implementing a new policy or procedure

Advantages:

  • Helps to identify the factors that affect a decision or change
  • Provides a visual representation of the forces at play
  • Encourages creative thinking and collaboration
  • Helps to develop effective strategies to address the issue

Disadvantages:

  • Can be time-consuming to gather and analyze the necessary information
  • The analysis may be subjective and influenced by personal bias
  • Strategies may not be effective in addressing the issue

Force Field Analysis is a useful problem-solving technique that helps to identify the driving and restraining forces that affect a decision or change. By understanding these forces, individuals and organizations can develop effective strategies to address the issue and achieve their goals. However, it is important to recognize the potential limitations of the technique and use it in conjunction with other problem-solving methods for the best results.

Brainstorming

Definition:  Brainstorming  is a group creativity technique that involves generating a large number of ideas or solutions to a problem or challenge. It is a collaborative process that encourages individuals to share their ideas freely and without criticism.

Purposes of Brainstorming:

  • To generate new ideas or solutions
  • To encourage creative thinking
  • To stimulate discussion and collaboration
  • To break down mental barriers and overcome resistance to change

Steps in Brainstorming:

  • Define the problem or challenge to be addressed
  • Set clear guidelines and expectations for the brainstorming session
  • Encourage individuals to share their ideas freely and without criticism
  • Record all ideas on a visible medium, such as a whiteboard or flipchart
  • Evaluate and prioritize the ideas to determine the best solution or course of action

Examples of where to use Brainstorming:

  • Developing a new product or service
  • Resolving a customer complaint
  • Improving a manufacturing process
  • Addressing a complex organizational issue

Advantages of Brainstorming:

  • Generates a large number of ideas quickly
  • Encourages creative thinking and innovation
  • Promotes collaboration and teamwork
  • Helps to overcome resistance to change

Disadvantages of Brainstorming:

  • Can be time-consuming
  • Individuals may feel inhibited or self-conscious about sharing their ideas
  • May lead to groupthink or the tendency to conform to the group’s ideas

How to Conduct a Brainstorming Session

Here are the steps to conduct a brainstorming session with a group of participants divided into smaller groups of less than 10:

  • Define the problem or challenge to be addressed:  Clearly define the problem or challenge and provide background information to the participants.
  • Divide participants into smaller groups:  Divide participants into smaller groups of less than 10 to encourage collaboration and equal participation.
  • Set clear guidelines and expectations:  Establish ground rules for the brainstorming session, such as encouraging all participants to contribute their ideas, not criticizing or judging others’ ideas, and keeping an open mind.
  • Assign a time limit:  Set a time limit for the brainstorming session, such as 15-20 minutes, to encourage participants to focus and generate ideas quickly.
  • Provide materials:  Provide materials such as flipcharts, sticky notes, or whiteboards for participants to record their ideas.
  • Encourage free-flowing ideas:  Encourage participants to share their ideas freely without judgment or criticism. Encourage participants to build on each other’s ideas and to think outside the box.
  • Record all ideas:  Record all ideas on a visible medium, such as a whiteboard or flipchart, to ensure that no ideas are lost.
  • Evaluate and prioritize ideas:  Once the brainstorming session is complete, evaluate and prioritize the ideas generated to determine the best solution or course of action.

By following these steps, individuals and organizations can effectively conduct a brainstorming session with smaller groups of participants to generate new ideas and solutions to address complex issues or challenges.

Brainstorming is a valuable technique for generating new ideas and solutions in a collaborative and non-judgmental environment. By following the steps and guidelines, individuals and organizations can effectively use brainstorming to address complex issues, promote creativity and innovation, and improve decision making. However, it is important to be aware of the advantages and disadvantages of this technique to ensure that it is used effectively and efficiently.

Nominal Group Technique

Nominal Group Technique (NGT)  is a structured problem-solving technique that encourages all participants to contribute equally and prevents groupthink. Here is a breakdown of NGT:
Definition:  Nominal Group Technique is a structured problem-solving technique that involves generating and evaluating ideas in a group setting. It provides a way to gather the ideas of all participants and to achieve consensus.
  • To generate a large number of ideas in a short amount of time
  • To ensure that all participants contribute equally
  • To prevent groupthink and encourage individual thinking
  • To evaluate and prioritize the ideas generated by the group
  • To reach consensus on the best solution or decision
  • Introduction:  Explain the purpose and process of the NGT to the group.
  • Idea Generation:  Each participant silently writes down their ideas on a sheet of paper.
  • Idea Sharing:  Each participant takes turns sharing their ideas with the group, without discussion or evaluation.
  • Idea Clarification:  The group discusses and clarifies the ideas that were shared.
  • Idea Evaluation:  Each participant ranks the ideas on a scale, and the scores are tallied to determine the most popular ideas.
  • Discussion:  The group discusses the top-ranked ideas, evaluates their feasibility and potential impact, and reaches a consensus on the best solution or decision.
  • Strategic planning sessions
  • Product development meetings
  • Problem-solving workshops
  • Brainstorming sessions
  • Team-building activities
  • Encourages equal participation
  • Prevents groupthink
  • Generates a large number of ideas in a short amount of time
  • Provides a structured process for evaluating and prioritizing ideas
  • Facilitates consensus-building
  • May require a skilled facilitator to manage the process
  • Some participants may be reluctant to share their ideas
  • May not be effective for complex or controversial issues

Nominal Group Technique is a useful problem-solving technique for generating and evaluating ideas in a group setting. It provides a structured process for equal participation, prevents groupthink, and facilitates consensus-building. However, it may not be effective for complex or controversial issues, and may require a skilled facilitator to manage the process.

SCAMPER Technique

SCAMPER technique  is a brainstorming and problem-solving method used to generate creative ideas and solutions by asking questions about existing products, services, or processes. The acronym SCAMPER stands for:
  • S  – Substitute: Identify parts of the problem or solution that could be substituted with something else. For example, replacing a manual process with an automated one.
  • C  – Combine: Identify different elements of the problem or solution that could be combined to create a new solution. For example, combining two different products to create a new product.
  • A  – Adapt: Identify elements of the problem or solution that could be adapted or modified to better fit the situation. For example, modifying an existing product to better meet the needs of a specific market.
  • M  – Modify: Identify parts of the problem or solution that could be modified or changed to create a better solution. For example, changing the design of a product to make it more user-friendly.
  • P  – Put to another use: Identify ways that the problem or solution could be used in a different context or for a different purpose. For example, repurposing a tool or product for a different task.
  • E  – Eliminate: Identify parts of the problem or solution that could be eliminated or removed to simplify the solution. For example, removing unnecessary steps from a process to make it more efficient.
  • R  – Reverse or Rearrange: Identify parts of the problem or solution that could be reversed or rearranged to create a new solution. For example, reversing the order of a process to improve its efficiency.

Using the SCAMPER technique can help individuals and organizations to think creatively and generate innovative solutions to problems or challenges.

The purpose of the SCAMPER technique is to encourage creative thinking and innovation by prompting individuals or groups to consider different ways of approaching a problem or challenge. The steps of the SCAMPER technique are:

  • Identify the problem or challenge to be addressed.
  • Identify the existing product, service, or process to be examined.
  • Ask SCAMPER questions about the existing product, service, or process.
  • Brainstorm and generate new ideas and solutions based on the SCAMPER questions.

Here are some examples of where the SCAMPER technique can be used:

  • To develop new products or services.
  • To improve existing products or services.
  • To streamline or optimize processes.
  • To address customer complaints or feedback.

Advantages of the SCAMPER technique include:

  • Encourages creative thinking and innovation.
  • Can lead to the development of new and improved products, services, or processes.
  • Can help to identify new market opportunities and increase competitiveness.

Disadvantages of the SCAMPER technique include:

  • Requires a skilled facilitator to guide the process effectively.
  • May be time-consuming to generate and evaluate a large number of ideas.
  • May result in ideas that are impractical or difficult to implement.

In conclusion, the SCAMPER technique is a useful tool for promoting creative thinking and generating new ideas and solutions. By prompting individuals or groups to ask SCAMPER questions about existing products, services, or processes, the technique can lead to innovative ideas that can improve performance, increase competitiveness, and create new opportunities. However, it is important to recognize the limitations of the technique and to use it in conjunction with other problem-solving methods to ensure practical and effective solutions.

Empty Chair Technique

Definition:  The empty chair technique  is a problem-solving technique that involves visualizing an absent or imaginary person in a meeting or discussion. This person can represent a different perspective or stakeholder, which can help to generate new ideas and solutions.
  • To explore different perspectives on a problem or issue
  • To generate new ideas and solutions
  • To consider the impact of decisions on different stakeholders
  • Identify the problem or issue to be discussed.
  • Decide on the perspective or stakeholder to be represented by the absent or imaginary person.
  • Imagine the absent or imaginary person in the room and ask questions or have a dialogue with them.
  • Consider their perspective and how it might influence the problem or decision.
  • Use the insights gained to generate new ideas or make decisions.
  • During a business meeting to explore different viewpoints on a problem or issue
  • In a product design session to consider the needs of different users or customers
  • During a conflict resolution session to understand the perspective of the other party
  • Helps to generate new ideas and solutions
  • Encourages consideration of different perspectives
  • Can lead to more inclusive and collaborative decision making
  • Requires a high level of imagination and visualization skills
  • May not be appropriate for all types of problems or issues
  • Can be time-consuming and require additional effort

The empty chair technique is a valuable tool for problem solving and decision making in the workplace. It encourages consideration of different perspectives and can lead to more innovative and inclusive solutions. However, it may not be appropriate for all types of problems or issues and requires a high level of imagination and visualization skills. By using the empty chair technique in combination with other problem-solving techniques, individuals and organizations can improve their ability to address complex issues and make strategic decisions.

Forced Combinations Technique: Force-field”

Forced Combinations Technique or “Force-field”  is a creative problem-solving technique used to generate new ideas and solutions by combining unrelated ideas or concepts. It is often used in brainstorming sessions or group discussions to encourage creative thinking and generate new perspectives on a problem or challenge.

Purposes of Forced Combinations Technique:

  • Stimulate creativity and generate new ideas
  • Encourage cross-disciplinary thinking and collaboration
  • Generate innovative solutions to complex problems

Steps involved in Forced Combinations Technique:

  • Identify the problem or challenge to be addressed
  • List out unrelated ideas or concepts
  • Combine the unrelated ideas or concepts in different ways to generate new ideas
  • Evaluate and select the most promising ideas or solutions

Examples of where to use Forced Combinations Technique:

  • Developing new product ideas
  • Designing new marketing campaigns
  • Improving operational processes

Advantages of Forced Combinations Technique:

  • Encourages creativity and out-of-the-box thinking
  • Can lead to the generation of innovative ideas and solutions
  • Can help break down silos between different departments or areas of expertise

Disadvantages of Forced Combinations Technique:

  • May not work well for more technical or specialized problems
  • Can be difficult to apply in individual settings
  • Can be time-consuming and may require significant resources

Forced Combinations Technique is a useful tool for generating new ideas and solutions to complex problems, particularly in group settings. It encourages creativity and collaboration, and can lead to innovative solutions that may not have been considered otherwise. However, it may not be suitable for all types of problems and may require significant resources to implement effectively.

Mind Mapping

Definition: Force-field analysis is a problem-solving technique used to analyze the driving and restraining forces that influence a particular situation or decision. It involves identifying the factors that support and hinder the desired outcome and developing strategies to strengthen the driving forces and weaken the restraining forces.

  • To identify the factors that support and hinder a particular situation or decision
  • To develop strategies to strengthen the driving forces and weaken the restraining forces
  • To evaluate the potential outcomes of a particular situation or decision
  • Identify the problem or decision to be analyzed
  • List the driving forces that support the desired outcome
  • List the restraining forces that hinder the desired outcome
  • Assign scores to each force based on their level of impact
  • Evaluate the potential outcomes of the situation or decision
  • Develop strategies to strengthen the driving forces and weaken the restraining forces

problem solving techniques business studies

  • To analyze the implementation of a new project or initiative
  • To evaluate the success of a marketing campaign
  • To identify the factors that influence employee motivation and engagement
  • To evaluate the potential impact of a policy or regulatory change
  • Helps to identify the factors that influence a particular situation or decision
  • Provides a structured approach to analyzing and evaluating the driving and restraining forces
  • Can help to develop effective strategies to address the challenges and opportunities of a particular situation or decision
  • Can be time-consuming and complex to complete
  • The results may be influenced by subjective assessments of the driving and restraining forces
  • The analysis may not take into account unexpected or unpredictable factors that could influence the situation or decision

Force-field analysis is a valuable tool for analyzing and evaluating the driving and restraining forces that influence a particular situation or decision. By identifying the factors that support and hinder the desired outcome and developing strategies to strengthen the driving forces and weaken the restraining forces, individuals and organizations can make more informed decisions and achieve better outcomes. However, it is important to be aware of the limitations of the technique and to approach the analysis with a critical and objective mindset.

IMAGES

  1. Problem-Solving Strategies: Definition and 5 Techniques to Try

    problem solving techniques business studies

  2. 5 step problem solving method

    problem solving techniques business studies

  3. Group Problem Solving

    problem solving techniques business studies

  4. 7 Steps to Improve Your Problem Solving Skills

    problem solving techniques business studies

  5. Introduction to Problem Solving Skills

    problem solving techniques business studies

  6. Problem-Solving Skills Every Entrepreneur Should Have -[SKILLS FOR

    problem solving techniques business studies

VIDEO

  1. Problem Solving Techniques

  2. 5 principles to solve any problem|problem solving skills|Urdu|Hindi|

  3. This Friday, finish your work #shorts #motivation

  4. You’ve got to get up every morning #shorts #motivation

  5. If something is important enough, #shorts

  6. Every successful person in the world is a hustler #shorts

COMMENTS

  1. Effective Problem-Solving Techniques in Business

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

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

    Brainstorming and team problem-solving techniques are both useful tools in this stage of problem solving. Many alternative solutions to the problem should be generated before final evaluation. A common mistake in problem solving is that alternatives are evaluated as they are proposed, so the first acceptable solution is chosen, even if it's ...

  3. 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. ... 2023 - AI technology has revolutionized the way organizations do business; now, with proper guardrails in place ...

  4. Why Problem-Solving Skills Are Essential for Leaders

    4 Problem-Solving Skills All Leaders Need. 1. Problem Framing. One key skill for any leader is framing problems in a way that makes sense for their organization. Problem framing is defined in Design Thinking and Innovation as determining the scope, context, and perspective of the problem you're trying to solve.

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

    Problem solving, and the techniques used to gain clarity, are most effective if the solution remains in place and is updated to respond to future changes. Problem Solving Resources. You can also search articles, case studies, and publications for problem solving resources. Books. Innovative Business Management Using TRIZ

  6. Fundamentals of Business Problem Solving

    Introduction to Business Problem Solving. Module 1 • 2 hours to complete. This module introduces the key components of a business model. It also provides an overview of how to use Solver in Microsoft Excel. What's included. 9 videos 1 reading 3 quizzes 1 discussion prompt. Show info about module content.

  7. Business problem solving

    4. Pursue occurrent behavior. Occurrent behavior is what actually happens in a time and place, not what was potential or predicted behavior. Complex problems don't give up their secrets easily. But that shouldn't deter problem solvers from exploring whether evidence on the facets of a solution can be observed, or running experiments to test hypotheses.

  8. How to Solve Problems

    How to Solve Problems. To bring the best ideas forward, teams must build psychological safety. Teams today aren't just asked to execute tasks: They're called upon to solve problems. You'd ...

  9. 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].

  10. Problem-Solving in Business: CASE STUDIES

    Business case studies serve as practical models of how to explore, understand, and analyze a problem and to develop the best solution strategy. WHY CASE STUDIES ARE GOOD FOR BUSINESS : ANATOMY OF A CASE STUDY -- PROBLEM-ORIENTED METHOD: 1. Case studies allow a company to use storytelling to bring their product to life. 2.

  11. 10 Step Process for Effective Business Problem Solving

    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 ...

  12. Problem-Solving in Business: SKILLS AND QUALIFICATIONS NEEDED IN

    Research skills are our ability to find an answer to a question to a solution to a problem. Research skills include the ability to gather information about your topic, review that information, and analyze and interpret the information in a manner that brings us to a solution.

  13. 35 problem-solving techniques and methods for solving complex problems

    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.

  14. PDF Grade 12 Term One Chapter 4 Notes on Creative Thinking and Problem

    CREATIVE THINKING & PROBLEM SOLVING CHAPTER 4 . 1 . BUSINESS STUDIES . GRADE 12 . TERM ONE . CHAPTER 4 . NOTES ON CREATIVE THINKING AND PROBLEM SOLVING . 2019 . TABLE OF CONTENTS . TOPICS PAGES Exam guidelines for creative thinking and problem solving 1 Terms and definitions 2 Differences between problem solving and decision making 3

  15. The Problem Solving Cycle in Business Studies

    Problem Solving Techniques Used in Business Studies In the field of business studies, problem solving is a vital skill that professionals need to develop. Whether it's identifying and resolving issues within an organization or coming up with innovative solutions, problem solving is at the core of a successful business strategy.

  16. 6.1 Problem Solving to Find Entrepreneurial Solutions

    Critical thinking is the complex analysis of a problem or issue with the goal of solving the problem or making a decision. The entrepreneur analyzes and peels away the layers of a problem to find the core of an issue facing a business. The entrepreneur focuses on the heart of the problem and responds reasonably and openly to suggestions for ...

  17. PDF BUSINESS STUDIES GRADE 11 TERM TWO CHAPTER SEVEN BUSINESS ...

    Train staff in innovative techniques/creative problem solving skills/mind-mapping/lateral thinking. 5 Benefits/Advantages of creative thinking in the workplace Complex business problems may be solved. Creativity may lead to new inventions which improves the general standard of living.

  18. An Introduction to Business Problem-Solving and Decision-Making

    Decision-making is driven by a desire to solve problems or exploit oppo r-. tunities. A problem refers to some type of event that requires a response to avoid a negative con-. sequence. Conversely ...

  19. 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 ...

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

    To find books on problem solving in business, type the search terms "business and problem solving" in the search box. Available with a valid New York Public Library card. STUDIES AND ARTICLES _____ EBSCOHost -- Enter the search phrase "problem solving in business" or "problem solving in business" to retrieve articles on the topic.

  21. Business Problem Solving Techniques

    General Problem Solving Techniques. 1. Identify the problem. It seems obvious, but the most important step in finding a solution is to correctly identify the problem. It's hard to start solving a problem if you can't put your finger on exactly what's wrong. Is the problem concrete - like profits that are lower than your goal or revenue ...

  22. More Advanced Problem-solving Techniques Notes and Exam Questions

    More Advanced Problem-solving Techniques : Notes, Common Exam Questions and Answers Guide, Online Quizzes and Activities for Business Studies Grade 12 Revision Studies, from Creative Thinking section. This content is under Term 1 as per the CAPS Curriculum.

  23. grade 10 business studies

    Business Exam #2. 21 terms. CharlesCahoun3. Preview. MRKT 346 Chp 7. 6 terms. lucy_mulder4. Preview. Study with Quizlet and memorize flashcards containing terms like problem solving techniques, empty chair technique, advantages of empty chair and more.