Competency Center
Problem Solving
Key Takeaways
Executive Summary
• Results-driven problem solving infuses intelligence into a company’s decision-making
process by providing the critical link between
strategy and execution.
Connecting decisions and solutions to a company’s bottom line can generate enormous value
for a company. Results-driven problem solving is a
key workplace competency for individuals, managers, and executives in a variety of industries. This
competency aims to solve a problem by producing certain desired results (e.g., increased sales,
larger customer base, or improved profitability).
•It ensures that all components of a proposed
solution work together to serve the needs of
the business.
•When problem solving, collaborative teams
must work together to frame the problem and
agree on the most efficient way to solve it.
•Creating solutions based on analysis and
insight will help a company meet its goals
effectively.
•Connecting decisions and solutions to a company’s bottom line can generate enormous
value for a company.
Problem solving requires the ability to collaborate
with others; it allows a leader to gather the best
information possible and allows others to contribute to and share in the satisfaction of crafting an
effective solution. The most effective teams work
together to frame the problem and agree on the
most efficient way to solve it.
Effective decision making is key for successful
problem solving. To survive in today’s competitive
environment, companies must formulate effective
strategies and execute those strategies flawlessly.
Techniques for Development
Effective leaders understand the organizational
culture and determine whether an outcome aligns
with the company’s mission and values before
making logical, educated decisions.
There are four key components to effective problem solving:
1. Define the problem: Identify the issue or
opportunity and determine whether or not
action is required. Use foresight in order to
predict what the problem may lead to and how
it might affect the organization. Do not define
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the problem in terms of a proposed solution or
diagnose it in terms of its symptoms.
Problem Solving
•
Reduction transforms the problem into a different problem for which real solutions exist.
Allows individuals to solve problems using
analogy.
•
Root Cause Analysis identifies a problem’s root
cause and, if possible, eliminates rather than
treating only symptoms.
•
Trial and Error tests potential solutions until an
optimum solution is found. Often used in situations where there is little information. Best for
solving simple problems that have few consequences for failure.
2. Identify the desired results: Define the
objective and communicate exactly what the
organization wants to accomplish. Identify any
barriers to success and distinguish between
relevant and irrelevant information. Align
agreed-upon goals with the defined business,
organization, department, or industry needs.
3. Use business goals to drive decision
making: Analyze data in the context of overall business objectives, and make sure goals
are defined, agreed on, and communicated to
everyone in the organization. Generate alternatives to ensure desired results.
Managers
Managers are responsible for planning and executing strategy. To improve their problem-solving
capabilities, they must:
4. Employ
data-driven standards: Once
people and departments have clear and specific metrics to define their success, they are
often more motivated in their approach to
work.
•
Avoid gut feelings of leadership: Effective
managers understand that the best decisions
are educated decisions and never rely solely
on intuition, which results in inconsistent and
ineffective solutions. Making educated decisions based on analysis and insight will help
an organization to meet its goals effectively.
•
Think creatively: Effective managers continually look for creative ideas to solve problems
and move the company to the next level.
They shouldn’t allow time constraints to prevent them from accessing their own and their
coworkers’ creative abilities.
Individuals
Individuals solve problems for clients, support
those who are solving a problem, or discover new
problems to solve. They can partake in a variety of
problem-solving methods (and consider them part
of their professional development):
•
Analogy identifies a solution that solved a
similar problem and uses that solution to solve
the current problem. This involves transferring
information from one situation to another.
•
Brainstorming creates a large number of
potential solutions and combines, develops, or
expands each idea until an optimum solution is
found.
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To develop problem-solving capabilities, managers can seek out complex tasks and projects; lead
or organize a discussion of complex issues; enlist
the input and opinions of others; or serve as a
mentor or volunteer in helping others to resolve
complex problems.
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Competency Center
Problem Solving
Executives
turely defining a problem or addressing only its
symptoms, which makes a company vulnerable
to misguided solutions and undesired results.
Executives are under increasing pressure to ensure
their organizations deliver better results at faster
rates than competitors. To enhance their problemsolving skills, they must:
•
•
•
Many teams approach problem solving searching
for one certain answer which can create unrealistic expectations and undermine a team’s ability to
think creatively. Leaders should encourage teams
to come up with different solutions and evaluate
which ones are best at addressing all facets of
the problem.
Gather information from qualified individuals,
even if their views conflict with data and information already gathered.
Understand the organizational culture and
values in order to garner the support, trust, and
respect of those in the organization.
Be realistic about their abilities. Leaders who
lack self-knowledge may risk misinterpreting
available information.
Related Resources
Secrets of Power Problem Solving
By Roger Dawson
http://search.ebscohost.com/login.aspx?direct=tr
ue&db=qbh&AN=74087369&site=ehost-live
The most effective executives also understand
how to invest in business objectives. Successful,
results-driven organizations spend money in the
right places and tie each business investment back
to specific goals and outcomes. Investments are
only made according to where they will be most
effective.
Smart Questions
By Gerald Nadler and William J. Chandon
http://search.ebscohost.com/login.aspx?direct=tr
ue&db=qbh&AN=52928145&site=ehost-live
Dealing With Dilemmas
By Frank Buytendijk
http://search.ebscohost.com/login.aspx?direct=tr
ue&db=qbh&AN=66352774&site=ehost-live
Obstacles
Problem solving hinges on critical thinking skills,
but leaders often rely on their intuition, personal
interests, or emotions to deal with a complex
situation. Leaders should be careful not to do this
because inconsistent strategies and ineffective
solutions may result. The best decisions are educated ones, based on analysis and insight.
Judgment
How Winning Leaders Make Great Calls
By Noel M. Tichy and Warren G. Bennis
http://search.ebscohost.com/login.aspx?direct=tr
ue&db=qbh&AN=31429440&site=bbs-live
Further Reading
A common pitfall in problem solving is individuals’
overconfidence in the infallibility of their ideas.
Similarly, the “confirmation trap,” is where individuals seek only confirmation of their ideas and
neglect evidence that suggests the contrary.
Fast-paced business environments may prevent
managers from gathering enough information to
make sound judgments. This results in prema-
EBSCO Competency Center • Copyright © 2013
EBSCO Publishing Inc. • 800-653-2726 • www.ebscohost.com
Ayres, I. (2004, January). Principled problem
solving. Scientific American Special Edition 14(1). Retrieved January 24, 2011, from
EBSCO Database Academic Source Complete. http://search.ebscohost.com/login.aspx
?direct=true&db=a9h&AN=12545992&site=e
host-live
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Problem Solving
Denton, D. (2012). Teaching business problemsolving skills. Supervision, 73(9), 8–14.
Retrieved June 28, 2013, from http://search.
ebscohost.com/login.aspx?direct=true&db=bc
h&AN=79179757=ehost-live.
Gavett, G. (2005, April). How strategists really
think. Harvard Business Review. Retrieved
February 1,2011, from EBSCO Database
Business Source Premier. http://search.
ebscohost.com/login.aspx?direct=true&db=bt
h&AN=16572581&site=ehost-live
Jameson, D. (2009, June). What’s the
right answer? Team problem-solving in
environments of uncertainty. Business Communication Quarterly, 72(2).Retrieved January
24, 2011, from EBSCO Database Business
Source Complete. http://search.ebscohost.
com/login.aspx?direct=true&db=bsh&AN=391
44616&site=ehost-live
The results-driven manager: Executing strategy
for business results. (2007). Boston: Harvard
Business School Press.
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EBSCO Publishing Inc. • 800-653-2726 • www.ebscohost.com
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