Solving Business Problems Step-by-Step

With a clear understanding of aspect(s) of a situation that need to be untangled and addressed first, second, third, and so on, a business can expeditiously get to the heart of problem resolution using the 5 steps described below. Rather than spinning wheels and addressing irrelevant concerns, leaders can move through these problem-solving steps with confidence. Let's peek at how an exemplified problem lends itself to resolution by following these five steps.

1.

Define the Problem

You have probably heard the adage that "a problem well-defined is half solved." True that. One way to define a problem is to continuing asking the question, "Why?" Suppose you hear through the rumor mill that a manager is dissatisfied and looking for work elsewhere. Before using a knee jerk reaction of offering that employee higher pay or a more flexible schedule, valuable time could be spent looking at why the problem exists. As soon as one statement provides an answer to "Why," then ask "why" again, along with where, when, how long, how many, how big, and how unique (or not) the problem is. If it's not unique, then the way that the problem affects others will need to be baked into the solution. A fast, fly by the seat-of-your-pants approach may stamp out a small part of the problem, temporarily, while a methodical approach to defining the problem could pre-empt larger issues and provide opportunities for growth.

Example: Problem Definition

Employee turnover in soft-skills areas at XYZ Company increased 25% in the past year, costing the company thousands of dollars for additional recruiting, training and orientation of new hires. Five employees still need to be replaced. New hires are harder to find in the post-pandemic environment. An additional person is rumored to leave by the end of the month, a manager, leaving the company shorter-staffed.

2.

Analyze Causes (Resources)

Many problems present themselves as specific situations that have spiraled out of control, but a problem may be short or long term, confined to a single person, or it may be widespread, involving specific job processes or more general business issues like employee morale or insufficient marketing. In addition to people, the cause of a problem could involve materials, budgets, processes, equipment, even physical space. Identify multiple variables in your analysis of problem causes. Increase the odds of addressing a problem in a holistic and comprehensive way when these causes are dissected.

Example: Dissected Causes/Resources

Major resources contributing to the causes of the problem defined in step #1 above could include people, processes/systems, costs of materials, training resources, time, larger economic factors, and company budget.

3.

Identify "Make or Break" Criteria for Decision-Making

After defining and analyzing causes of the problem, chart the criteria needed to forge an acceptable course of action and solution. To identify decision-making criteria, clarify make-or-break priorities. In the case of a dissatisfied indispensable employee who is rumored to be quitting, the priority in making a decision to resolve the issue might be that no higher pay will be offered. Just as jurors in a courtroom trial are issued criteria by a judge (e.g., consider only objectively measurable evidence in determining guilt or innocence), a company must identify decision-making criteria that affect whether a particular option can be acted upon to achieve the desired solution.

Example: Criteria for Decision-Making

Three criteria: The accepted solution for the problem defined in step #1 must not endanger existing jobs, nor trigger undue job overloads and related stress for managers and staff, nor involve increases of pay/benefits.

4.

Brainstorm Problem-Solving Strategies

Once all 3 steps above have been considered, position the company to brainstorm thoughtful and useful solutions, perhaps with multiple options after evaluating the pros and cons of each. In addition to developing multiple solutions, it is wise to engage stakeholders at various levels (managers, supervisees, end-users, etc.) in brainstorming and developing strategies, especially if the problems call for systems-level solutions or community action. For the highest quality results, multiple people and multiple solutions should be considered for eliminating each cause (in step #2) of the problem. Use brainstorming rules such as "no evaluations" until multiple strategies have been identified. Some brainstormed strategies may not seem like viable options but should still be identified in this step of the process.

Example: Brainstorming

Involve a group of 3 to 8 people in brainstorming a list of strategies to eliminate or reduce each cause (identified in step #2). Examples could include eliminating the end-of-year company party, providing employee assistance counseling or coaching to overworked employees, and holding off on the purchase of new training room tables. Guidelines include "no evaluations" until several strategies have been recorded, perhaps giving a 10-minute time limit for listing a variety of strategies to potentially address each cause. Charts, lists, and data tables are helpful to post or screen share with each person participating in this brainstorming step.

5.

Choose the Best Solution(s)

Giving quality thought and attention to identifying and analyzing a problem, and then developing possible solutions lays the groundwork for choosing an optimal solution. While no solution is foolproof, clarity plus logic will add up to high-quality solutions that are unlikely to produce regrets. Your business could choose a wise solution, or a set of solutions that benefit everyone involved while presenting opportunities for long-term organizational development and growth.

Example: Choose a Solution

Select a rating system to determine which potential solutions seem best to resolve the issues (e.g., rank order or assign high-medium-low point), and then evaluate each strategy against its fit with the criteria. Finally, for each viable solution, ask and answer the question, "What part of the defined problem does this solution fit?"

Conclusion
Follow this delineated set of problem-solving steps to prevent rash decision-making that disrupts business workflow. Stop missing opportunities for growth. Use this systematic approach to business problem-solving. While this approach is not an end-all to organizational problems, it provides essential tools for problem resolution step by step.

Article adapted and enhanced from the original by D. Gartenstein. (2018). 5 Steps in Business Problem Solving. Chron, August issue.