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why is problem solving a necessary management skills

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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 .

why is problem solving a necessary management skills

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The Importance of Problem-Solving Skills in the Workplace

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According to Management 3.0 Facilitator Ilija Popjanev , problem solving is essential for individuals and organizations as it enables us to control all aspects of our business environment. In this article, Ilija looks into problem-solving skills, how the problem-solving process works, and which tools help you to advance this skill set.

In this article you will learn about:

What is Problem Solving?

  • Problem-Solving in Six Easy Steps

Why is Problem-Solving so Important for Leaders, Teams, and Organizations?

Problem-solving techniques in the workplace, better employee experience by using problem-solving tools from management 3.0, how do employees develop problem-solving skills, what skills make a good problem solver.

In the last few years, we have been living 100% in the VUCA world, with so many unpredictable and complex threats and challenges. As a result, organizations must create a sense of urgency to redesign their present business models and to rebuild the foundations for the future of work. 

All companies now need effective problem-solving skills and tools at all levels, starting with individuals and teams, and finishing with their leaders and managers. This new reality enables growth and success only for those well-equipped and empowered by effective problem-solving skills and tools. 

One of the behaviors of Management 1.0 style is to constantly look for ways to stop “fighting fires,”. Instead, the Management 3.0 style seeks to “find the root cause” of the problem, and then to refocus, improve, and plan a different way for fulfilling workplace tasks.

Management 3.0 provides effective tools and principles for building the system for effective problem solving. It provides us with techniques we can use to understand what is happening in our world, to identify things we want to change, and then apply everything that needs to be done to achieve the desired outcome. We live by the motto: fail fast, recover quickly, and learn from the failures.

The agile way of working does not mean being perfect, but instead it allows for failures and sees them as opportunities to learn, grow, and adapt . Perfection is useless if we do not provide value fast for our customers. That is why problem solving is the foundation for continuous improvement, learning, and collaboration, which leads to innovations and success in ever-changing economies and the new normal that we now live in. 

The definition of problem solving according to the Merriam-Webster Dictionary is: “The process or act of finding a solution to a problem.” Similarly, the Oxford English Dictionary describes problem solving as: “The process of finding solutions to difficult or complex issues.”

For me, Problem-solving is a process of understanding and owning the problem, constant pursuit for solutions and improvements, and putting into action the best option for the desired outcome.

Understanding context and interacting with our teammates are the essence of effective problem-solving. We must clearly understand the complexity of our environment and the specifics of the context because things continuously change and evolve. Here, the Complexity Thinking Guidelines may help you to better understand what is happening and how to navigate complex environments more effectively.

We must have a lens through which to see problems as opportunities to improve, and regard our teams as sources of knowledge and experience. We have to connect people and opportunities in ways that can facilitate the best solutions for the problems that we are handling. Try using the Personal Maps , an excellent tool for bringing teams together and fostering diversity, respect, trust, and collaboration.

Today, all innovations and solved problems are team efforts because teams constantly improve their toolbox and competencies. Teams want to create something that was not there before, and which maximize their knowledge and resources.

To accomplish that, they need to build a process in a few easy steps:

  • Be present, observe what is happening in your world, and define the problem.
  • Review where you are now and what influences that state.
  • Constantly improve and change things by using creative tools and tactics.
  • Seek solutions and alternatives to make changes more effective.
  • Make team decisions about which tools and solutions should be used.
  • Implement improvements, monitor the process, and constantly adapt!

Problem-Solving in Six Easy Steps

At this stage, by following the Management 3.0 principle of “Improving the system,” you can use the tools Celebration Grids , combined with Yay! Questions , to best engage the team in the problem-solving process, while keeping track of what is working well, what can be changed, and what new options exist.

Documenting everything is an integral part of the problem-solving process. By using Celebration Grids, you are gamifying the process and keeping the team flow and energy on a higher level.

Also read: What type of problem-solver are you?

Problem-solving is crucial for everyone: individuals, teams, leaders, organizations, and ultimately for all stakeholders because it empowers us to better control the environment and everything that is going on in our world. Try using Delegation Poker so that teams can become more empowered to solve problems both alongside leaders and within their organization. 

Today, the speed of problem solving is important, and that is why organizations must give more power and authority on a team level , so employees can react quickly and even prevent problems. As a leading indicator, the Management 3.0 tool Problem Time can help you measure the time spent on uncompleted problem-solving tasks and activities; this is a valuable add-on to “lead and cycle time” lagging indicators, with which you measure the time taken on completed tasks.

Developing and refining problem-solving skills through constant practice and experimentation can refine the ability to solve problems and address issues with more complexities.

We may face various challenges in our daily work, and effective problem-solving can make a difference.

Make a Difference with Problem-Solving

  • Problem-solving skills are important if you want to add more value . As an agilist, your objective is not to be perfect but to maximize the value you provide for all stakeholders. Start fast, deliver value early, manage failures and prioritize tasks by setting the urgency criteria.
  • Problem-solving skills are important if you need to improve your results. You have to accept the complexity of success factors and better understand the need for changes and improvements in a continually uncertain environment. Results depend on your problem-solving skills!
  • Problem-solving skills are important if you have to fix things that do not work. When your processes are not working as planned, problem solving will give you the structure and mechanisms to identify issues, figure out why things are broken, and take actions to fix them.
  • Problem-solving skills are important when you have to address a risk. Sharpen your problem-solving skills to anticipate future events better and increase the awareness of cause-and-effect relationships. This enables you to take the right actions and influence the outcomes if issues do occur.
  • Problem-solving skills are important if you work simultaneously on several projects. You should apply the same problem-solving techniques when you work on multiple projects, business functions, market segments, services, systems, processes, and teams. Standardize and scale!
  • Problem-solving skills are important when you want to seize the day. Problem solving is all about innovation , building new things, and changing the system into a better one. This can help us to identify opportunities even in challenging times and prepare us for the future. You can visualize the process with the Meddles Game to better understand your ideas, solutions, and activities. It is a great way to engage your team as you can build the problem-solving concept and it is an effective tool for influencing all stakeholders affected by the problem. 

Also read: Collaborative Leadership explained .

Solving complex problems may be difficult, but problems will be solved when we use the right tools. Besides the powerful Management 3.0 tools I already mentioned, as a big fan of Lean and Liberating structures, I think you can find lots of problem-solving techniques to use in your daily business. 

Here is my short list of tools and techniques:

  • 5 Whys – a great way to uncover the root cause is to understand the problem better. 
  • Fishbone analysis – for visual analysis of the root causes of a problem. Easy to combine with ‘5 Whys’ or ‘Mind mapping’ to brainstorm and determine the cause and effect of any problem.
  • Silent brainstorming – gives everyone a chance to participate in idea generation as not only the loudest people, but also the quiet ones, will participate equally. Everyone’s opinion has the same weight. 
  • Mind maps – structured visual diagrams to share your ideas, concepts, and solutions the same way your brain does. You explain the problems quickly, then share fresh ideas, and finally come to a team consensus that can lead to an effective solution. 
  • Six thinking hats – enable your team to consider problems from different angles, focusing on facts, creative solutions, or why some solutions might not work.
  • Agreement certainty matrix – another tremendous visual tool for brainstorming problems and challenges by sorting them into simple, complicated, complex, or chaotic domains to later agree on what approach should be used to solve the concrete problems affecting a team.  
  • Conversation café – enables the team to engage in productive conversations, with less arguing but more active listening, solving the problem in rounds of dialogues until reaching a consensus regarding the best problem-solving approach. 
  • Design thinking – when you are struggling for fresh ideas, the 5-step process will help you empathize with the problem, then begin defining and developing new ideas, before prototyping and testing them. 

Edward Deming’s PDCA is the most known concept for continuous improvement and problem solving. You can gamify your events using the Change Management Game , a card game where PDCA will help you define the problem, take action, collect feedback, and adopt the new solution.

The “carrot and stick” approach, or in HR language, “pay for performance,” does not work anymore, especially for roles that require problem-solving, creativity, and innovative thinking. Creative people need a higher level of authority and empowerment to self-manage challenges and problem scenarios. When leaders and organizations create such systems, they foster intrinsic motivation and job satisfaction among these people. Creatives are seeking self-actualization through their careers.

This is one more case which calls for Management 3.0’s Delegation Poker to define the levels of authority in terms of problem-solving issues, as well as Moving Motivators to define key motivators for increasing productivity and employee satisfaction by changing behavior.

Improving Employee Experience with Problem-Solving

1. Use problem solving as a key motivator – have in mind Millennials and Gen Z creative workers ’ affinity towards tasks in which they feel challenged and have a sense of meaning. Provide them with big and tough problems to solve and use challenging tasks to keep them constantly engaged.

2. Continuous improvement can make a difference – creatives seek a sense of purpose and think outside of the box, so encouraging the ‘How can we execute this task better?’ mindset and problem solving become powerful tools for creating sustainable corporate culture.

3. Don’t connect solving problems with rewards – it can kill the perceived intrinsic value of the activity; it will disengage and dissatisfy employees. Autonomy, trust, respect, and gratitude will do the job. 

4. Apply the seven rules for creative managers – unleash the power of diversity , and cooperation, rely on merits, optimize exploration, open boundaries, keep options open, and update your workplace. 

Improving Employee Experience with Problem-Solving

We start solving problems from a very early age (the alphabet, learning to eat, driving a bicycle etc.). Then, everyday activities sharpen our problem-solving skills and enable us to solve more complex issues. 

As an adult, you can still develop your problem-solving skills by:

  • Daily practicing of logic games, such as chess, and puzzles like Sudoku. 
  • Video games can teach you how to deal with failure and persist in achieving your goals.
  • Keep an idea journal or blog as a collection of all your ideas, thoughts, and patterns. 
  • Think outside of the box – take a different perspective to understand the problem better.
  • Practice brainstorming combined with mind mapping, working with your team.
  • Put yourself in new situations – take on a challenging project at work.
  • Start using the “what if” mindset in daily circumstances and test new approaches.
  • Read more books on creativity and articles which cover your areas of interest. 

I also believe coaching can help build creativity and problem-solving skills, encouraging people to take greater ownership of their work and commit to corporate goals. A coach can provide clear guidance as to what is important at the moment; they help people better, focus, and move into action. By asking powerful questions and challenging others to think outside of the box, the coach removes their barriers and lets them see the situation from a new perspective.

Coaching can provide structure so people develop their own expertise and insights to contribute better when problems arise and the pressure to succeed is growing.

The interview is an excellent opportunity to research a candidate’s problem-solving skills, and STAR questions should be related to their previous experience dealing with problems. A candidate with good problem-solving skills can quickly embed in the team and become a valuable asset for the company.

In my Agility in HR workshops , we regularly discuss interview questions. Some popular STAR questions are:

  • “If you cannot find a solution to a problem, how do you deal with the situation?”
  • “How do you react when faced with unexpected problems or challenges?”
  • “Describe an occasion when you had to adapt at the last minute. How did you handle this?”

Problem-solving requires the ability to identify a problem, find the root cause, create solutions, and execute them. All these steps are essential for achieving the desired results. 

Some of the skills that problem solvers must constantly sharpen are:

  • Collaborative communication . Clear communication is essential when you explain the problem and the solution to your teammates. During brainstorming sessions, asking the right questions to determine the root cause , as well as synergic collaboration are needed.
  • Active listening is important to prevent mistakes as  you can absorb the details your colleagues tell you about the problem. Use open-ended questions for clarification, and always be open to feedback and views that differ from yours.
  • Coachability. The willingness to accept feedback and the ability to improve. Learning from more experienced people, being curious to ask many questions, constructively using your ego, skipping excuses and blaming others, and accepting Feedback Wraps from your coach.
  • Decision making . Problems cannot be solved without risk-taking and bringing important decisions (including relevant data, levels of delegation, alternative solutions etc.) to the forefront.
  • Critical thinking . Be 100% objective when you try to find the cause of the problem. Skip ego trips and personal biases. Identify your mistakes in the thinking process and show personal accountability .
  • Research and data analysis . Proper research allows you to diagnose the actual problem, not just the symptoms. If the cause of the problem is not immediately apparent, you can use the power of data to discover the issue’s history, some patterns, future trends, etc.
  • Persistence . Trust in the problem-solving process you have designed and follow every step with patience and persistence; even when you fail repeatedly, do not give up. Keep moving and remember Thomas Edison’s quote: “I have not failed. I have just found 9,999 ways that do not work.”

Skills of good problem-solvers

In the new VUCA world we now live in, problem solving is a crucial soft skill, and employers are actively seeking people with this skill set because they can prepare for problems before they arise. Problem solvers better identify opportunities, understand their environment, create a solution, and generate ideas that lead to great results and success.

According to a study made by LinkedIn Learning in August 2022 , future skills are rapidly changing, and problem solving is among the top soft skills employers search for from their candidates, as well as communication and leadership skills .

Using all aforementioned tools and practices from Management 3.0, following the guides, and sharpening your skills, will help you not only to be effective in resolving the problems that may arise, but also to solve them with enthusiasm and passion. They will create a higher level of engagement and collaboration in the team and help unleash people’s creativity and innovation. A win-win for everyone!

Photo by Parabol on Unsplash

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The Importance of Problem-Solving Skills in the Workplace

The Importance of Problem-Solving Skills in the Workplace

The Importance of Problem-Solving Skills in the Workplace

The ability to solve problems, both simple and complex, is valuable in all workplaces. More than 60% of employers look for evidence of problem-solving ability when evaluating candidates for roles in their organization. Problem-solving in the workplace draws on many different skills, often in collaboration, from analytical thinking and creativity to confident decision-making in critical situations. Modern employees who know how to problem solve and don’t panic when a problem arises can be trusted to work independently and contribute towards an organization’s success.

Some people are natural problem solvers - they see a challenge and they start to suggest solutions without even blinking. For others, problem-solving in the workplace doesn’t come as naturally, but they can develop skills and strategies to help them in the long term.

The role of problem-solving in the workplace 

Let’s take a more specific look at problem-solving in the workplace and start to understand just why it’s such a valuable trait.

To begin with, good problem solvers tend to be good decision-makers. When solving a problem, people may be required to make several smaller decisions to reach a complete solution so an ability to quickly make decisions is essential for fast and effective outcomes. If your team lacks this capability, then any challenges thrown their way will cause them to stall and fall behind. They may even make poor decisions if their ability to problem solve isn’t well-rounded and well-informed.

Strong problem-solving skills also contribute to innovation. This is useful for providing our organizations with a competitive edge but also for finding creative solutions to obstacles. Good problem-solving relies upon the ability to find a solution to the issue as it exists here and now, and not rely on using an approach that worked previously. This is why innovation as a facet of problem-solving in the workplace is key.

Problem-solving in the workplace often involves a lot of teamwork. Collaborating on a problem is a great way for a team to bond and learn more about each other’s strengths. In this way, problem-solving contributes towards team unity and purpose. There are even games you can present to your team to have fun and bond while improving their ability to problem solve.

Identifying problem-solving skills in employees

Many people may answer yes when asked if they’re good problem solvers, but we don’t have to rely on self-reporting (although it’s a useful measure). Instead, we can look out for certain behaviors and traits that indicate someone is good at solving problems. Key indicators of problem-solving capability include taking a proactive approach to challenges and asking insightful questions, as this shows both an understanding of a situation and the ability to think further outside it.

Hiring Managers often need to assess an applicant’s problem-solving abilities during the recruitment process. They can do this by asking situational questions about hypothetical problems and scenarios, and assessing how they would draw upon their skills and experience to tackle a problem. Recruiters can also use abstract reasoning tests to get an understanding of someone’s problem-solving abilities, seeing how they combine logic, fluid intelligence, and lateral thinking to find solutions.

HR teams and managers may also want to assess the problem-solving skills of their existing team members. They can do this with performance reviews, discussing examples that have occurred in the workplace and how the individual tackled an issue, and with feedback sessions utilizing 360-degree feedback from fellow employees. Managers can also consciously observe how their employees solve problems on a day-to-day basis, reviewing whether someone attempts to take on challenges independently or turns to others for help.

Developing problem-solving skills in your team 

Just because someone struggles to solve problems now doesn’t mean they can’t be coached to take a more confident approach in the future. Training and development programs focused on critical thinking, creative problem-solving, and decision-making strategies provide people with the skills and confidence to take on problems by giving them practice scenarios and examples to work from. This can be done at an individual and team level - it’s useful for a team that works closely together to understand how they can divide tasks and decision-making when it comes to problem-solving, and team bonding games provide a light-hearted way to learn this.

It’s easier to suggest solutions to problems in the workplace when you know it’s ok to experiment and make mistakes. If they want to benefit from problem-solving employees, leadership teams and managers should foster a supportive work environment where employees are encouraged to propose and test new ideas without fear of failure. They can do this through their approach to problem-solving in the workplace, and by being empathetic should errors occur in attempts to tackle problems.

Team leaders should also recognize the value of diverse perspectives when it comes to problem-solving. They shouldn’t always turn to the same people when a new problem presents itself but should encourage input from all parties. Varied viewpoints can lead to more innovative solutions or improvements on pre-existing solutions.

Leveraging Thomas’ expertise

For extra support in understanding your employees’ problem-solving abilities, you can turn to Thomas. Our assessments can help identify individuals with strong problem-solving capabilities or areas where employees need development. We can also provide tailored development solutions based on your assessment results with workshops designed to enhance problem-solving skills at a leadership and employee level.

The impact of strong problem-solving skills on business success 

Businesses made up of individuals with strong problem-solving skills set themselves up for success. When we recruit problem solvers and develop the problem-solving skills of our existing employees, we contribute to organizational growth by fostering innovation and improving how our teams collaborate.

There’s a very real return on investment to be made when companies spend time and effort on developing these skills. They create more agile, innovative individuals who give their organizations a competitive advantage versus organizations who overlook this crucial area.

Problem-solving in the workplace shouldn't be overlooked. Speak to an expert at Thomas today and see how we can enhance the problem-solving capabilities of your teams and set them up for success.

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Problem-solving in Leadership: How to Master the 5 Key Skills

The role of problem-solving in enhancing team morale, the right approach to problem-solving in leadership, developing problem-solving skills in leadership, leadership problem-solving examples.

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What’s the Role of Problem-solving in Leadership?

  • Getting to the root of the issue:  First, Sarah starts by looking at the numbers for the past few months. She identifies the products for which sales are falling. She then attempts to correlate it with the seasonal nature of consumption or if there is any other cause hiding behind the numbers. 
  • Identifying the sources of the problem:  In the next step, Sarah attempts to understand why sales are falling. Is it the entry of a new competitor in the next neighborhood, or have consumption preferences changed over time? She asks some of her present and past customers for feedback to get more ideas. 
  • Putting facts on the table:  Next up, Sarah talks to her sales team to understand their issues. They could be lacking training or facing heavy workloads, impacting their productivity. Together, they come up with a few ideas to improve sales. 
  • Selection and application:  Finally, Sarah and her team pick up a few ideas to work on after analyzing their costs and benefits. They ensure adequate resources, and Sarah provides support by guiding them wherever needed during the planning and execution stage. 
  • Identifying the root cause of the problem.
  • Brainstorming possible solutions.
  • Evaluating those solutions to select the best one.
  • Implementing it.

Problem-solving in leadership

  • Analytical thinking:   Analytical thinking skills refer to a leader’s abilities that help them analyze, study, and understand complex problems. It allows them to dive deeper into the issues impacting their teams and ensures that they can identify the causes accurately. 
  • Critical Thinking:  Critical thinking skills ensure leaders can think beyond the obvious. They enable leaders to question assumptions, break free from biases, and analyze situations and facts for accuracy. 
  • Creativity:  Problems are often not solved straightaway. Leaders need to think out of the box and traverse unconventional routes. Creativity lies at the center of this idea of thinking outside the box and creating pathways where none are apparent. 
  • Decision-making:  Cool, you have three ways to go. But where to head? That’s where decision-making comes into play – fine-tuning analysis and making the choices after weighing the pros and cons well. 
  • Effective Communication:  Last but not at the end lies effective communication that brings together multiple stakeholders to solve a problem. It is an essential skill to collaborate with all the parties in any issue. Leaders need communication skills to share their ideas and gain support for them.

How do Leaders Solve Problems?

Business turnaround, crisis management, team building.

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why is problem solving a necessary management skills

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Problem-Solving Techniques For Managers

Problem-solving is an art, and for managers, it’s a critical skill for steering their teams towards success.

In today’s dynamic business landscape, managers face a variety of challenges. But fear not, here are some proven techniques and methods to ace the art of problem-solving.

The Backbone of Management: Problem-Solving Skills

Why are these skills so crucial? Well, they lead to better team cohesion, improved workflow, happier clients, and timely project completion.

Essentially, they make the workplace a place where everyone wants to be and where goals are met with gusto.

Manager’s Toolkit: Essential Problem-Solving Skills

  • Leadership : It’s about building trust and fostering collaboration.
  • Detail-oriented : Spotting and utilizing even the minutest details.
  • Communication : Talking through obstacles and solutions effectively.
  • Adaptability : Flexibility to adapt to changes.

Step-by-Step Guide to Problem Solving

  • Define the problem : Know what you’re dealing with.
  • Examine it : Look at the problem from all angles.
  • Brainstorm solutions : Think outside the box.
  • Choose and act : Pick a solution and go for it.
  • Be ready for change : Solutions might need tweaking.

Level-Up Your Problem-Solving Game

  • Be transparent to build trust.
  • Encourage cross-team collaboration.
  • Stay open-minded and positive.
  • Keep observing and asking questions.
  • Get creative with challenges and provide guidance.
  • Keep learning about industry trends.

Glenn Llopis on Problem Solving in Leadership

Llopis emphasizes transparent communication, breaking down silos, fostering open-mindedness, and having a solid foundational strategy. He reminds us that problem-solving is at the core of leadership.

The Systematic Approach to Problem Solving

This approach involves defining the problem, generating solutions, evaluating them, and implementing the chosen one. It’s about being thorough and inclusive in the process.

Design Thinking & Creative Problem-Solving

These approaches bring a human-centered perspective, encouraging empathy and breaking cognitive fixedness. They’re about understanding the emotional landscape of the team and the problem at hand.

Dr. Amy David and the Future of Jobs Survey Insights

Problem-solving in leadership involves balancing the triple bottom line: people, profit, and planet. It’s about being responsive, data-driven, and customer-focused.

Effective Problem-Solving Methods

  • Five Whys: Dig deep into problems.
  • Gap Analysis: Compare current vs. desired performance.
  • Gemba Walk: Understand ground realities.
  • Porter’s Five Forces: Analyze competitive dynamics.
  • Six Thinking Hats: Diverse perspectives.

SWOT Analysis: Strengths, weaknesses, opportunities, threats.

Problem-Solving in Real-World Business

Purdue’s Online MBA teaches the latest techniques, encouraging application to real-world scenarios. It’s not just textbook learning; it’s about dealing with actual business situations.

In summary, problem-solving in management is a multifaceted skill.

It’s about being analytical, creative, strategic, and always ready to adapt. With these techniques in your arsenal, you’re well on your way to becoming a problem-solving maestro in the world of management!

Problem-Solving Methods

Five whys: digging deeper into problem-solving.

The “Five Whys” technique is a simple yet powerful tool used in problem-solving, particularly effective in management.

It involves asking “why” repeatedly to drill down to the root cause of a problem.

Here’s a deeper dive into how it works and its benefits in a managerial context:

How the Five Whys Technique Works

  • Start with the Problem : Begin by clearly stating the problem you’re facing.
  • Ask Why the First Time : Inquire why the problem occurred. This first answer will lead to the next question.
  • Continue the Process : Keep asking why for each answer provided. The idea is that each response gives insight into the next layer of the issue.
  • Repeat Until the Root Cause is Uncovered : Usually, by the time you’ve asked “why” five times, you’ll have uncovered the fundamental reason behind the problem.

Applying the Five Whys in Management

  • Practical Example : If a team misses a deadline, the first “why” might reveal that a task took longer than expected. The next “why” could uncover that the task was not clearly defined, and so on, until you find the root cause.
  • Involving the Team : It’s beneficial to involve team members in this process. Different perspectives can lead to a more comprehensive understanding of the problem.

Benefits of the Five Whys

  • Simplicity : The technique is straightforward and doesn’t require statistical analysis, making it accessible for managers and teams.
  • Focus on Root Causes : It encourages looking beyond symptoms and getting to the heart of the issue.
  • Promotes Critical Thinking : This method pushes individuals to think critically about the problem and its origins.

Considerations When Using Five Whys

  • Complex Problems May Require More Depth : Sometimes, particularly with complex problems, the root cause may not be uncovered in just five whys. The process may need to be extended or complemented with other problem-solving tools.
  • Requires Honesty and Openness : The technique works best in an environment where team members feel comfortable expressing their opinions and observations without fear of blame.

Integrating Five Whys into Organizational Culture

  • Regular Practice : Incorporate the Five Whys into regular problem-solving and decision-making processes.
  • Documentation : Documenting each step of the Five Whys process can help in tracking and analyzing the problem-solving journey.
  • Feedback Loop : Use the insights gained from the Five Whys process to implement changes and prevent future issues.

In summary, the Five Whys technique is an effective tool for managers to get to the root of a problem quickly and efficiently.

It encourages a deeper understanding of issues, fosters open communication, and promotes a culture of continuous improvement within teams.

Gap Analysis: Bridging the Divide Between Current and Desired Performance

Gap Analysis is a strategic tool used by managers to compare the current performance of their team or organization against the desired or potential performance.

It helps in identifying the gaps between where the organization is and where it wants to be.

Here’s look at Gap Analysis:

Understanding Gap Analysis

  • Define Current Performance : Start by assessing the current state of your team or organization. This includes evaluating current processes, resources, and outcomes.
  • Identify Desired Performance : Determine what the desired or ideal state for your team or organization is. This might be based on industry standards, competitive benchmarks, or strategic goals.
  • Compare and Identify Gaps : Analyze the differences between the current state and the desired state. These differences are the ‘gaps’ that need to be addressed.

Implementing Gap Analysis in Management

  • Data Gathering : Collect data on various aspects of performance, such as productivity, quality, and employee satisfaction.
  • Stakeholder Involvement : Engage team members and other stakeholders in identifying what the ideal performance looks like.
  • Benchmarking : Compare your organization’s performance against industry standards or competitors to understand where you stand.

Benefits of Gap Analysis

  • Strategic Insight : Provides a clear picture of what needs to be improved and where the organization should focus its efforts.
  • Targeted Improvements : Helps in prioritizing areas that need immediate attention or more resources.
  • Enhanced Performance : Aids in developing strategies that can lead to enhanced overall performance.

Challenges in Conducting Gap Analysis

  • Data Accuracy : The effectiveness of gap analysis heavily relies on the accuracy of current performance data.
  • Complexity in Large Organizations : In larger organizations, conducting gap analysis can be complex due to the varied and numerous processes and departments.
  • Resistance to Change : Identifying gaps may require changes that could be met with resistance from employees or management.

Steps to Conduct Gap Analysis

  • Identify Key Performance Indicators (KPIs) : Determine which KPIs are most relevant to your organization’s goals.
  • Measure Current Performance : Use the identified KPIs to measure current performance levels.
  • Define Target Performance : Set clear, achievable targets for each KPI.
  • Identify Gaps : Determine the difference between current and target performance for each KPI.
  • Develop Action Plans : Create strategies and action plans to address these gaps.

Post Gap Analysis Actions

  • Implement Changes : Based on the findings, implement the necessary changes in processes, resources, or strategies.
  • Monitor Progress : Continuously monitor the effects of these changes on performance.
  • Adjust Strategies as Needed : Be prepared to make adjustments to strategies based on ongoing monitoring and feedback.

In conclusion, Gap Analysis is a powerful tool for managers to identify areas needing improvement and to strategize effectively.

It helps in aligning the organization’s current state with its desired future state, thus paving the way for enhanced performance and achieving strategic goals.

Gemba Walk: Immersing in the Reality of the Workplace

The Gemba Walk, rooted in Lean management philosophy, is a technique where managers and leaders go to the actual place where work is done, often referred to as the “gemba” or “frontline.”

This approach allows them to gain first-hand insight into the daily operations and challenges their teams face.

Here’s an in-depth look at the Gemba Walk:

Principles of the Gemba Walk

  • Go to the Source : The core idea is to leave the office and go to the actual place of work – be it a factory floor, a retail space, or any operational area.
  • Observe the Process : Watch how the work is being done, rather than just focusing on the output. This observation helps in understanding the process flow and identifying any inefficiencies or areas for improvement.
  • Engage with Employees : Talk to the employees doing the work. Ask questions to understand their perspective and gather insights into the challenges they encounter in their day-to-day tasks.

Implementing a Gemba Walk in Management

  • Plan Your Walk : Don’t just show up unannounced. Plan your visit so that it’s structured yet flexible enough to observe the natural workflow.
  • Focus on Learning, Not Critiquing : Approach the Gemba Walk with the intent to learn and understand, not to find faults or immediately solve problems.
  • Respect the Employees : Show respect to the employees and acknowledge their hard work. Ensure that they understand the purpose of the Gemba Walk is for improvement and not for critiquing their performance.

Benefits of the Gemba Walk

  • Real-Time Insights : It provides an opportunity to see how processes are actually functioning in real-time.
  • Employee Engagement : It can significantly boost employee morale and engagement, as they feel their work and challenges are being acknowledged.
  • Problem Identification : Helps in identifying the root causes of problems that might not be visible from a distance.
  • Improvement Opportunities : Opens up opportunities for continuous improvement in processes and workflow.

Challenges in Conducting Gemba Walks

  • Misinterpretation of Purpose : Employees might feel anxious or defensive if they interpret the Gemba Walk as a form of surveillance or critique.
  • Surface-Level Observations : There’s a risk of making assumptions based on surface-level observations without understanding the deeper context.
  • Time-Consuming : It can be time-consuming, and if not done correctly, it may not yield the intended outcomes.

Best Practices for Effective Gemba Walks

  • Be a Good Listener : Listen more than you speak. Let employees share their thoughts and experiences without interruption.
  • Take Notes : Document your observations and insights for later analysis and action planning.
  • Follow Up : After the walk, analyze your findings and work on a plan to address any issues. Ensure to follow up on the actions taken.

Post Gemba Walk Actions

  • Share Insights with the Team : Communicate what you learned from the Gemba Walk with your team or management.
  • Implement Changes : Where necessary, implement changes to improve processes, based on the insights gained.
  • Regular Scheduling : Make Gemba Walks a regular part of your management routine to continuously stay in touch with the ground realities of your operations.

In summary, the Gemba Walk is a valuable tool for managers and leaders to gain a deeper understanding of their operations, directly from the source.

It helps in building a culture of transparency, continuous improvement, and employee engagement, all of which are crucial for the effective management of any organization.

Porter’s Five Forces: Analyzing Competitive Dynamics

Porter’s Five Forces is a framework developed by Harvard Business School professor Michael E. Porter.

It’s used by managers and business strategists to analyze the competitive dynamics in an industry.

This model helps in understanding the different forces that affect competition and profitability in the market. Here’s a breakdown of the Five Forces:

1. Threat of New Entrants

  • Barriers to Entry : This force examines how easy or difficult it is for new competitors to enter the market. High barriers to entry (like high capital requirements, strict regulations, strong customer loyalty for existing brands) protect existing companies from new competitors.
  • Impact on Competition : The easier it is for new companies to enter the industry, the more fierce the competition becomes.

2. Bargaining Power of Suppliers

  • Supplier Influence : This force looks at how much power suppliers have to drive up the prices of inputs.
  • Factors Influencing Power : The fewer the number of suppliers, or the more unique and important the input, the more power a supplier holds.

3. Bargaining Power of Buyers

  • Buyer Influence : This analyzes how much pressure customers can place on businesses.
  • Determining Factors : The number of buyers, the size of each order, the cost to the buyer of switching between suppliers, and the availability of similar products affect how much power a buyer can exert.

4. Threat of Substitute Products or Services

  • Availability of Alternatives : This force examines the likelihood of customers finding a different way of doing what your business does.
  • Substitute Appeal : The more attractive the price-performance ratio of substitutes, the higher the threat they pose.

5. Rivalry Among Existing Competitors

  • Intensity of Competition : This looks at the degree of competitiveness among existing players in the market.
  • Influencing Factors : The number of competitors, rate of industry growth, product or service differences, switching costs, brand loyalty, and the cost of leaving the market all influence the level of rivalry.

Applying Porter’s Five Forces in Management

  • Strategic Planning : Managers can use this framework to develop strategies that take into account these five competitive forces.
  • Market Analysis : It helps in understanding the current market dynamics and anticipating changes in the competitive landscape.
  • Decision Making : This model can aid in making informed decisions about entering new markets, launching new products, or responding to competitive threats.

Benefits of Using Porter’s Five Forces

  • Comprehensive Analysis : Provides a thorough analysis of the competitive environment.
  • Proactive Strategy Development : Helps in proactively developing strategies rather than reacting to competitive pressures.
  • Identifying Profitable Markets : Assists in identifying which markets or segments are most profitable and worth entering.

Challenges in Implementing the Framework

  • Dynamic Markets : Rapid changes in markets can make the analysis outdated quickly.
  • Complex Interactions : Interactions between the forces can be complex and hard to predict.
  • Subjectivity : The analysis can be subjective, as it often relies on estimations and judgments.

In conclusion, Porter’s Five Forces is a crucial tool for managers aiming to understand and navigate the competitive landscape in their industry.

By systematically analyzing each force, businesses can gain insights into their strategic position and make informed decisions to enhance their competitiveness and profitability.

Six Thinking Hats: Diverse Perspectives

“Six Thinking Hats: Diverse Perspectives” in problem-solving. This outline integrates the various aspects of problem-solving discussed in the texts and aligns them with the “Six Thinking Hats” methodology:

  • Overview of the Six Thinking Hats method by Edward de Bono.
  • The significance of diverse perspectives in problem-solving.
  • Leadership and management: The role of problem-solving in guiding teams and improving company performance.
  • Organizational challenges: Addressing issues related to growth, design, user engagement, team culture, and happiness.
  • Leadership styles: Different approaches to problem-solving in leadership, comparing linear and innovative mindsets.
  • Each hat representing a different perspective or approach: White (facts), Red (emotions), Black (cautious), Yellow (optimistic), Green (creative), and Blue (process).
  • Examples of how each hat can be applied in scenarios like workshop facilitation, organizational challenges, and leadership decisions.
  • White Hat: Using data and factual analysis (Gap Analysis, SWOT Analysis).
  • Red Hat: Emotional intelligence and empathy in understanding team dynamics and customer needs.
  • Black Hat: Risk analysis and cautious approach to problem-solving (Five Whys, Gemba Walk).
  • Yellow Hat: Optimistic outlook for fostering innovation and exceeding work expectations.
  • Green Hat: Creative problem-solving and brainstorming (Design Thinking, Creative Approaches).
  • Blue Hat: Process-oriented approach for structured problem-solving (Step-by-Step Guide, Problem Identification, and Analysis).
  • Designing effective workshops: Incorporating diverse perspectives for comprehensive problem-solving.
  • Facilitation skills: Importance in guiding diverse thinking and discussion.
  • Implementing solutions and monitoring their effectiveness.
  • The role of documentation and reflection in the problem-solving process.
  • Developing skills aligned with the Six Thinking Hats.
  • Tips for improving problem-solving skills across different hats.
  • The role of a facilitator in encouraging diverse thinking.
  • The impact of diverse perspectives in problem-solving.
  • Future of problem-solving in management and leadership.

This outline aims to provide a comprehensive framework for exploring the Six Thinking Hats method in the context of various problem-solving scenarios, emphasizing the importance of diverse perspectives in finding effective solutions.

Key Points and Facts About Problem-Solving Techniques

Problem-Solving: A Managerial Necessity

  • Problem-solving skills are vital for managers in any industry.
  • They help in addressing customer needs and internal organizational challenges.

Organizational Application

  • Challenges : Addressing growth, design, user engagement, team culture, and happiness.
  • Solution Development : Strategies for developing and evaluating solutions.
  • Facilitation Skills : Creating a safe space for discussions.
  • Documentation and Reflection : Essential for tracking the problem-solving process.

Managerial Skills for Problem-Solving

  • Leadership : Building trust and collaboration.
  • Detail-Oriented : Focusing on small but significant details.
  • Communication : Effective dialogue about obstacles and solutions.
  • Adaptability : Adjusting to changing situations and information.

Strategic Problem-Solving

  • Transparent Communication : Open and honest dialogue.
  • Cross-Functional Collaboration : Breaking down organizational silos.
  • Open-Mindedness : Embracing challenges and driving innovation.
  • Solid Foundational Strategy : A well-thought-out plan for growth.

Systematic Approach

  • Define the Problem : Differentiating fact from opinion.
  • Generate Solutions : Involving stakeholders, aligning with goals.
  • Evaluate and Select : Choosing the best solution without bias.
  • Implement and Follow Up : Planning, testing, and gathering feedback.

Creative and Design Thinking

  • Human-Centered Approach : Focusing on empathy and breaking cognitive fixedness.
  • Stages : Clarify, Ideate, Develop, Implement.
  • Tools : Brainstorming, divergent thinking, and alternate worlds scenarios.

Developing Problem-Solving Skills

  • Learning and Practice : Through courses and facing real challenges.
  • Creating Safe Environments : For open idea sharing.

Data’s Role in Problem-Solving

  • Decision-Making : Using clear, trustworthy data.
  • Trend Identification : For performance optimization.

Preparing for the Future

  • Purdue’s Online MBA : Teaching latest problem-solving techniques.
  • Real-World Application : Emphasizing complex, real-world situations.

In conclusion, effective problem-solving in management combines analytical thinking, creativity, and strategic planning.

It’s about adapting to change, making informed decisions, and understanding the complex needs of both customers and the market.

See, SWOT Analysis Unveiled: Unlocking Business Potential Learn the secrets of SWOT Analysis and how it can unlock your business’s potential in this comprehensive exploration.

Action Steps

  • Define the Problem : Begin by clearly identifying and stating the problem. This involves distinguishing facts from opinions, understanding underlying causes, and consulting with involved parties.
  • Generate Alternative Solutions : Involve your team and other stakeholders to brainstorm and generate various potential solutions. Ensure these solutions align with the organization’s goals and consider both short-term and long-term impacts.
  • Evaluate and Select an Alternative : Assess each potential solution against set criteria, ensuring objectivity and considering both the proven and potential outcomes. Select the most viable option based on this evaluation.
  • Implement the Chosen Solution : Plan and execute a pilot test of the selected solution, if applicable. Ensure to gather feedback from all affected parties and seek acceptance or consensus for the solution.
  • Follow-Up and Continuous Monitoring : Establish ongoing measures to monitor the solution’s effectiveness. Be open to feedback and prepared to make necessary adjustments in response to changing circumstances or new information.

These steps represent a systematic approach to problem-solving, emphasizing the importance of involving team members, using factual information, focusing on root causes, and being adaptable and responsive to evolving situations.

Frequently Asked Questions About Problem-Solving Techniques For Managers

What Are Problem-Solving Techniques For Managers?

Problem-solving techniques for managers are a set of strategies and methods used to tackle challenges and obstacles within a team or organization.

These techniques help managers lead their teams effectively, improve workflow, and enhance customer satisfaction.

Why Are Problem-Solving Skills Important in Management?

These skills are crucial for managers to effectively lead and improve their teams.

They play a key role in achieving better team cohesion, workflow improvement, client and customer happiness, exceeding work expectations, timely project completion, and creating a welcoming work environment.

What Are Some Examples of Problem-Solving Skills for Managers?

Key skills include leadership (building trust and collaboration), being detail-oriented (noticing and utilizing small details), effective communication (discussing obstacles and solutions), and adaptability (adjusting to changing situations and information).

How Do Managers Solve Problems?

Managers can solve problems by following these steps:

  • Define the problem.
  • Examine the problem.
  • Create potential solutions.
  • Choose a solution and take action.
  • Prepare to make changes.

What Are Some Tips for Improving Problem-Solving Skills?

To improve problem-solving skills, managers should:

  • Be transparent for trust-building.
  • Encourage collaboration across teams.
  • Be open-minded about solutions and their impact.
  • Stay positive to foster a conducive working environment.
  • Observe everything for a comprehensive understanding.
  • Ask questions to gather necessary information.
  • Be creative in approaching unique challenges.
  • Provide guidance rather than direct commands.
  • Keep learning about the industry and market trends.

What Are Some Effective Problem-Solving Techniques?

Effective techniques include:

  • Transparent Communication: Ensuring open and honest dialogue.
  • Breaking Down Silos: Promoting cross-functional collaboration.
  • Open-mindedness in Teams: Encouraging team members to embrace challenges.
  • Solid Foundational Strategy: Developing a well-thought-out plan for growth.

How Is Problem-Solving a Systematic Process?

Problem-solving in management is a systematic process that involves:

  • Defining the problem.
  • Generating alternative solutions.
  • Evaluating and selecting an alternative.
  • Implementing the chosen solution.
  • Following up and continuously monitoring the solution.

What Is the Role of Data in Problem-Solving?

Data plays a crucial role in decision-making, identifying trends, and optimizing performance. Clear, trustworthy, and well-communicated data is essential for effective problem-solving.

Remember, effective problem-solving in business involves adapting to change, making informed decisions based on data, and understanding the nuanced needs of customers and the market. It’s a skill that combines analytical thinking, creativity, and strategic planning.

More About Problem-Solving Techniques

Next, you’ll find links to valuable search results that can help you stay current with any new information about Problem-Solving Techniques.

Scholar Articles

Exploring scholarly articles in Google searches yields comprehensive insights into various aspects of Problem-Solving Techniques, extending beyond the article’s scope. This approach offers deeper knowledge and a broader perspective on the subject.

  • Official website of Scholar Articles for Problem-Solving Techniques

Problem-Solving Techniques Tools

Utilizing Problem-Solving Techniques tools and software streamlines the problem-solving process, enhancing efficiency and accuracy. These resources provide structured frameworks, data analysis capabilities, and collaborative features, fostering better decision-making and problem resolution.

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Problem-Solving Techniques Templates

Templates serve as a helpful foundation for initiating Problem-Solving Techniques. They facilitate task breakdown into manageable segments, aiding in more efficient completion.

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Problem-Solving Techniques Examples

Examining examples is a valuable method to enhance your grasp of Problem-Solving Techniques, providing diverse insights. Explore the link below to access employee feedback and gain a broader perspective.

  • Search Results – Problem-Solving Techniques Examples

Books authored by experts offer in-depth knowledge on Problem-Solving Techniques, making them a valuable resource for those aiming to master the subject.

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Google News provides current and archived stories about Problem-Solving Techniques, offering a reliable source to stay updated on the topic. Access it through the provided link.

See Google’s News Search Results Related to Problem-Solving Techniques.

Videos provide valuable insights into Problem-Solving Techniques. While watching, be vigilant for related content on-screen, as it can offer unexplored perspectives.

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References:

Problem Solving as a Manager: Definition and Tips | Indeed.com

35 problem-solving techniques and methods for solving complex problems | SessionLab

The 4 Most Effective Ways Leaders Solve Problems

What is Problem Solving? Steps, Process & Techniques | ASQ

Why Problem-Solving Skills Are Essential for Leaders

Effective Problem-Solving Techniques in Business

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What Are Problem-Solving Skills? Definition and Examples

Zoe Kaplan

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Forage puts students first. Our blog articles are written independently by our editorial team. They have not been paid for or sponsored by our partners. See our full  editorial guidelines .

Why do employers hire employees? To help them solve problems. Whether you’re a financial analyst deciding where to invest your firm’s money, or a marketer trying to figure out which channel to direct your efforts, companies hire people to help them find solutions. Problem-solving is an essential and marketable soft skill in the workplace. 

So, how can you improve your problem-solving and show employers you have this valuable skill? In this guide, we’ll cover:

Problem-Solving Skills Definition

Why are problem-solving skills important, problem-solving skills examples, how to include problem-solving skills in a job application, how to improve problem-solving skills, problem-solving: the bottom line.

Problem-solving skills are the ability to identify problems, brainstorm and analyze answers, and implement the best solutions. An employee with good problem-solving skills is both a self-starter and a collaborative teammate; they are proactive in understanding the root of a problem and work with others to consider a wide range of solutions before deciding how to move forward. 

Examples of using problem-solving skills in the workplace include:

  • Researching patterns to understand why revenue decreased last quarter
  • Experimenting with a new marketing channel to increase website sign-ups
  • Brainstorming content types to share with potential customers
  • Testing calls to action to see which ones drive the most product sales
  • Implementing a new workflow to automate a team process and increase productivity

Problem-solving skills are the most sought-after soft skill of 2022. In fact, 86% of employers look for problem-solving skills on student resumes, according to the National Association of Colleges and Employers Job Outlook 2022 survey . 

It’s unsurprising why employers are looking for this skill: companies will always need people to help them find solutions to their problems. Someone proactive and successful at problem-solving is valuable to any team.

“Employers are looking for employees who can make decisions independently, especially with the prevalence of remote/hybrid work and the need to communicate asynchronously,” Eric Mochnacz, senior HR consultant at Red Clover, says. “Employers want to see individuals who can make well-informed decisions that mitigate risk, and they can do so without suffering from analysis paralysis.”

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Problem-solving includes three main parts: identifying the problem, analyzing possible solutions, and deciding on the best course of action.

>>MORE: Discover the right career for you based on your skills with a career aptitude test .

Research is the first step of problem-solving because it helps you understand the context of a problem. Researching a problem enables you to learn why the problem is happening. For example, is revenue down because of a new sales tactic? Or because of seasonality? Is there a problem with who the sales team is reaching out to? 

Research broadens your scope to all possible reasons why the problem could be happening. Then once you figure it out, it helps you narrow your scope to start solving it. 

Analysis is the next step of problem-solving. Now that you’ve identified the problem, analytical skills help you look at what potential solutions there might be.

“The goal of analysis isn’t to solve a problem, actually — it’s to better understand it because that’s where the real solution will be found,” Gretchen Skalka, owner of Career Insights Consulting, says. “Looking at a problem through the lens of impartiality is the only way to get a true understanding of it from all angles.”

Decision-Making

Once you’ve figured out where the problem is coming from and what solutions are, it’s time to decide on the best way to go forth. Decision-making skills help you determine what resources are available, what a feasible action plan entails, and what solution is likely to lead to success.

On a Resume

Employers looking for problem-solving skills might include the word “problem-solving” or other synonyms like “ critical thinking ” or “analytical skills” in the job description.

“I would add ‘buzzwords’ you can find from the job descriptions or LinkedIn endorsements section to filter into your resume to comply with the ATS,” Matthew Warzel, CPRW resume writer, advises. Warzel recommends including these skills on your resume but warns to “leave the soft skills as adjectives in the summary section. That is the only place soft skills should be mentioned.”

On the other hand, you can list hard skills separately in a skills section on your resume .

why is problem solving a necessary management skills

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In a Cover Letter or an Interview

Explaining your problem-solving skills in an interview can seem daunting. You’re required to expand on your process — how you identified a problem, analyzed potential solutions, and made a choice. As long as you can explain your approach, it’s okay if that solution didn’t come from a professional work experience.

“Young professionals shortchange themselves by thinking only paid-for solutions matter to employers,” Skalka says. “People at the genesis of their careers don’t have a wealth of professional experience to pull from, but they do have relevant experience to share.”

Aaron Case, career counselor and CPRW at Resume Genius, agrees and encourages early professionals to share this skill. “If you don’t have any relevant work experience yet, you can still highlight your problem-solving skills in your cover letter,” he says. “Just showcase examples of problems you solved while completing your degree, working at internships, or volunteering. You can even pull examples from completely unrelated part-time jobs, as long as you make it clear how your problem-solving ability transfers to your new line of work.”

Learn How to Identify Problems

Problem-solving doesn’t just require finding solutions to problems that are already there. It’s also about being proactive when something isn’t working as you hoped it would. Practice questioning and getting curious about processes and activities in your everyday life. What could you improve? What would you do if you had more resources for this process? If you had fewer? Challenge yourself to challenge the world around you.

Think Digitally

“Employers in the modern workplace value digital problem-solving skills, like being able to find a technology solution to a traditional issue,” Case says. “For example, when I first started working as a marketing writer, my department didn’t have the budget to hire a professional voice actor for marketing video voiceovers. But I found a perfect solution to the problem with an AI voiceover service that cost a fraction of the price of an actor.”

Being comfortable with new technology — even ones you haven’t used before — is a valuable skill in an increasingly hybrid and remote world. Don’t be afraid to research new and innovative technologies to help automate processes or find a more efficient technological solution.

Collaborate

Problem-solving isn’t done in a silo, and it shouldn’t be. Use your collaboration skills to gather multiple perspectives, help eliminate bias, and listen to alternative solutions. Ask others where they think the problem is coming from and what solutions would help them with your workflow. From there, try to compromise on a solution that can benefit everyone.

If we’ve learned anything from the past few years, it’s that the world of work is constantly changing — which means it’s crucial to know how to adapt . Be comfortable narrowing down a solution, then changing your direction when a colleague provides a new piece of information. Challenge yourself to get out of your comfort zone, whether with your personal routine or trying a new system at work.

Put Yourself in the Middle of Tough Moments

Just like adapting requires you to challenge your routine and tradition, good problem-solving requires you to put yourself in challenging situations — especially ones where you don’t have relevant experience or expertise to find a solution. Because you won’t know how to tackle the problem, you’ll learn new problem-solving skills and how to navigate new challenges. Ask your manager or a peer if you can help them work on a complicated problem, and be proactive about asking them questions along the way.

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Step 1 of 3

Companies always need people to help them find solutions — especially proactive employees who have practical analytical skills and can collaborate to decide the best way to move forward. Whether or not you have experience solving problems in a professional workplace, illustrate your problem-solving skills by describing your research, analysis, and decision-making process — and make it clear that you’re the solution to the employer’s current problems. 

Image Credit: Christina Morillo / Pexels 

Zoe Kaplan

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why is problem solving a necessary management skills

The importance of problem-solving skills in the workplace can’t be overstated. Every business and job role has its problems. From entry-level hires to senior staffers, every one of your employees will face challenges that don’t can’t be answered by doing a quick Google search – or asking ChatGPT to come up with solutions.

That’s why employers must hire people with excellent problem-solving skills, especially for roles that require dealing with complex business challenges, tight deadlines, and changing variables – for example, when recruiting leaders .

But what are problem-solving skills? What role do they play in the workplace? 

And, most importantly, how can you evaluate candidates’ skills before you hire them?

Table of contents

What are problem solving skills, the benefits of problem solving skills: why are problem solving skills important , examples of problems at the workplace – and how problem solving skills can help, how to assess problem solving skills, evaluate problem solving skills and hire candidates who can think for themselves.

To fully understand the importance of problem-solving skills in the workplace, it’s important first to understand the broad skill set that we commonly refer to as “problem solving skills”. 

Generally, problem-solving refers to a person’s ability to successfully manage and find solutions for complex and unexpected situations. 

Candidates with great problem-solving skills have a combination of analytical and creative thinking. They’re comfortable with making decisions and confident enough to rise to challenges in the workplace.

These candidates possess a combination of analytical, creative, and critical-thinking skills – and a high level of attention to detail . As a result, they will quickly identify problems when they arise and identify the most effective solutions. 

They’ll also identify the factors and forces that might have caused the problem and instigate changes to mitigate future challenges.

There are six key problem-solving skills that you should look for when assessing job candidates: 

key problem solving skills to look for when hiring

1. Listening skills

Active listeners are generally great problem solvers. 

They can listen to those around them to gather the information needed to solve the problem at hand. They also recognize the importance of valuing others’ opinions and experiences to help understand why the problem occurred and define the best course of action to remedy it. 

2. Analytical thinking skills 

Analytical thinkers can identify the logical reasons why a problem occurred, what the long-term effects of the issue could be, and identify how effective different solutions might be to select the most practical one. 

That’s why it’s essential to assess analytical thinking skills during recruitment.

3. Creative thinking skills

Creative thinkers can balance their analytical skills with creative approaches to challenges. Creative thinking skills enable individuals to uncover innovative and progressive solutions to problems. 

In this way, they’re able to provide new perspectives and provide imaginative and experimental solutions to all kinds of problems. 

4. Communication skills 

Problem solvers should also possess great communication skills . The ability to effectively relay complex information thoroughly yet succinctly is a huge benefit for employers working in fast-paced environments. 

5. Decision-making skills 

Those with problem-solving skills will also possess the ability to make decisions and be confident in them. This is important, because most problem-solving involves making firm decisions to reach a successful outcome. 

6. Teamwork

Although problem-solvers need to be independent thinkers, it’s also vital for them to work well as part of a team . 

Determining the best solution often requires collaboration, so it’s important that candidates can demonstrate how they can motivate others to come up with the best solutions and work with them to help develop and implement solutions. 

Problem-solving skills enable you to find candidates who are cognitively equipped to handle anything their jobs throw at them.

Problem solvers can observe, judge, and act quickly when difficulties arise when they inevitably do. Moreover, they are not afraid of the unknown, which is invaluable to employers who rely on their employees to identify and solve problems. 

Why are problem solving skills important?

There are several important benefits of problem-solving skills in the workplace. Below, we’ll go through five of the most significant ones that all problem solvers can bring to their roles and workplaces: 

1. Ability to organize their time intelligently 

Time management skills can often be underlooked as one of the benefits of problem-solving skills in the workplace. 

However, those with problem-solving abilities also typically possess stellar time-management skills. The ability to manage their time wisely and laser-focus on what’s important to the business will lead to better decision-making and business impact. 

2. Ability to prioritize, plan, and execute strategies

Problem solvers have no issue with carefully assessing customer and business needs and deciding how to prioritize, plan, and execute strategies to meet them. They can manage all moving parts and strategize to meet multiple unique demands.

3. Ability to think outside the box

Problem solvers can often identify hidden opportunities in problems. Thinking outside of the box is an important problem-solving skill in the workplace, because it can often lead to better outcomes than the originally expected ones. 

4. Ability to work under pressure

This is often one of the most important benefits of problem-solving skills in the workplace. Problem solvers often work well under pressure, for example when dealing with short deadlines and changing project requirements.

Depending on your workplace culture, you might prefer someone who can deliver quick solutions or someone who takes their time to identify the next steps. Both are valid and important problem solving qualities. 

5. Ability to address risk

Planning is an important problem-solving skill. Problem solvers are not just equipped to deal with the problem at hand but are also able to anticipate problems that will arise in the future based on trends, patterns, experience, and current events.

Let’s now look at some specific examples of problems that could arise at the workplace – at any workplace, really – and how employees’ problem solving skills can help address each issue. 

Below, you’ll find five typical scenarios where problem solving skills are essential.

Conflict between team members

Poor team dynamics or lack of a collaborative spirit might result in frequent workplace conflicts – especially within larger teams.

For example, members of cross-functional teams might disagree on the way they should address a particular issue or even on the priority they should give to it. 

How problem solving skills can help: 

Teamwork is essential when solving conflict – and a cornerstone of effective cross-functional team leadership .

For this, coworkers need to share a common understanding of the team’s goals and also be willing to work towards achieving them, even when they disagree on the specific approaches to each goal.  The ability to understand others’ perspectives, analyze information critically, and come up with a few different solutions is key to finding a common ground and making progress on the team’s objectives.

Inefficient processes

Outdated, inefficient processes can reduce productivity and frustrate employees.

Multi-step approval processes are a typical example of this. Having multiple layers of approval for routine decisions can significantly slow down team progress and lead to missed opportunities.

Analytical thinking skills are key in identifying inefficiencies and building better procedures. Employees or team leads can build flowcharts that speed up decision making without having to ask a supervisor’s permission at every step of the process. 

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why is problem solving a necessary management skills

Poor communication can lead to misunderstandings and lack of clarity and direction – which, in turn, can be detrimental to team performance. 

For example, if you’re a remote-first company, maintaining clear and effective remote communication can be challenging. 

The over-reliance on emails and messaging apps might make it feel like teams are communicating effectively and are always connected. However, the lack of non-verbal cues and face-to-face interactions might make it more difficult to build rapport and a positive workplace culture .

Listening skills are essential to solving communication issues – and good listeners are often excellent at solving problems by recognizing, understanding, and acknowledging others’ points of view. 

One-on-one meetings enable people to communicate more freely and effectively and solve challenges together, so consider encouraging team members to hop on a call each time they encounter a difficult challenge.

Additionally, you can help employees bond with each other with some remote team building activities to improve team cohesion. Plus, problem solving challenges can be excellent team building exercises.

Technological disruptions 

New technologies often disrupt the usual ways of doing things – and sometimes, this can be disruptive for entire teams’ work. 

For example, generative AI and automation technologies have revolutionized numerous types of work, including data analysis, marketing, customer service, and even content creation.

Creative thinking and cognitive flexibility are among the top 10 most important skills of the future , according to the World Economic Forum. Both are essential for adopting new technologies successfully – and finding ways to make the most out of each new tool to improve productivity. 

Insufficient onboarding resources 

Team members may struggle to do their best work if they haven't received proper training or resources.

For example, start-ups that experience rapid growth might hire a few employees at once – or even entire teams. 

If they fail to allocate sufficient time and resources to onboarding new hires, this might lead to lost productivity, a lacking sense of belonging, or increased turnover. That’s true not only for junior employees but also for newly hired senior leaders , as the Harvard Business Review points out.

Your leadership team’s analytical and decision-making skills are crucial in enabling them to distribute limited resources in a way that would give their teams the best chances of success. 

To build a solid onboarding process , you need leaders who are able to take ownership of it – and who have the right problem-solving skills.

Many organizations use problem-solving interview questions to identify the right candidates for their job openings. However, the most effective way to assess problem-solving skills is with pre-employment skills assessments . 

That’s because skills tests provide an objective way to quantify a candidate’s problem-solving skills in a way that isn’t possible during an interview.

How problem solving skills tests work

Tests like TestGorilla’s problem-solving skills test assist organizations in finding candidates who are able to quickly identify the key elements of the problem and work through the problem at speed without making mistakes. 

By presenting candidates with a wide range of questions related to typical problem-solving scenarios, hiring teams can rank their candidates based on an intensive assessment of each candidate’s skill level.

The test specifically evaluates whether a candidate can perform problem-solving tasks like:

Creating and adjust schedules

Prioritizing items based on a given set of rules

Interpreting data and applying logic to make decisions

Analyzing textual and numerical information to draw conclusions

As you can see, even the best interviewer would have trouble assessing each of these skill areas while still covering all the other questions that they need to ask. 

If you’re convinced of the importance of problem-solving skills in the workplace and want to build a team of employees that can think independently and solve their own problems without constant supervision, assess problem-solving skills during the hiring process. 

Problem-solving skills tests like ours are an excellent way to achieve this – especially if you combine them with other skills tests. Check out our extensive test library for other tests you can use in your talent assessment process to hire the best talent. 

Sign up for our free plan to start building your first assessment – or schedule a demo with one of our experts to see how to evaluate applicants’ problem solving skills quickly, efficiently, and without bias. 

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POWERING WORKPLACE PERFORMANCE

20 december, 2022, why problem solving skills matter in the workplace.

why is problem solving a necessary management skills

Whether you’re an artist, a software developer or a CEO of a multinational conglomerate, problem solving skills are a critical asset in any professional setting.

Closely linked to other cognitive competencies including self-management and critical thinking, problem solving is a key workplace skill that empowers employees to manage change, communicate effectively and bring a fresh perspective to old problems. But to harness the benefits of logical and adaptive thinking in the workplace, organisations must take concerted action to foster problem solving skills in their employees.

What do problem solving skills in the workplace look like?

Workplace problem solving has several prominent distinctions when compared to problem solving in other contexts. This includes the formal and goal-oriented structure of the problem, as well as the critical role of teamwork in reaching a solution. An individual who shows competence in problem solving outside the workplace may not necessarily thrive when confronting a workplace issue.

A lack of problem solving skills in the workplace can be detrimental to businesses. Problem solving skills enable employees to evaluate and effectively resolve daily challenges.  Every job role within a business will face challenges and unexpected situations. Problem solving skills provide employees with the ability to recognise and analyse problems, identify and evaluate a range of potential solutions and then decide on and implement the most effective solution.

A workforce equipped with problem solving skills will be adaptive and ready to face the challenges of the constantly evolving modern workplace. Its employees will demonstrate an ability to:

  • Listen actively
  • Think analytically and creatively
  • Come up with innovative solutions
  • Communicate effectively
  • Make decisions confidently based on evidence
  • Work together as a team

The importance of problem solving skills in the workplace

Problem solving is a vital skill in the workplace. The ability to think logically and creatively empowers individuals to tackle challenges and seize opportunities in all levels of business. This in turn helps to achieve the following benefits of problem solving skills in the workplace:

Time and resources are used efficiently

All businesses have limited time and resources. This means that when a problem arises, it must be resolved as quickly as possible leveraging available resources. One of the major benefits of problem solving skills in the workplace is that employees can utilise their innovative thinking to prioritise tasks and focus on pressing challenges facing the business. This will result in them providing effective solutions that utilise available resources within the time frame available.

Improved problem solving skills also lead to improved time management as employees learn to make quick and effective decisions. Problem solving skills become even more critical where employees are expected to  provide solutions to complex or urgent problems.

The business can better respond to changing client needs

One of the primary purposes of a business is to deliver reliable and excellent service to their clients. Satisfied clients buy more goods or services, create positive advertising by word-of-mouth and generate referrals. But businesses operate in a changing world, which leads to changing client needs that must be anticipated as early as possible.

Employees must be able to take the initiative to respond to those changing needs. A workforce equipped with problem solving skills can quickly reposition itself to better meet shifts in client needs and developments in the environment in which those clients operate.

The business stays ahead of the curve

To stay ahead of the curve, a business must be proactive across all levels. Change in the modern workplace is constant and businesses must come up with fast solutions to problems and be prepared to take advantage of new opportunities as they arise.  Employees must be confident to continually challenge the norm and swiftly adapt to changes in the business and the market.

A team that can confidently solve problems will see problems as an opportunity to initiate change and growth, which will help to keep the business ahead of competitors.

The business can anticipate risk

Employees equipped with problem solving skills can handle difficult situations that arise in the workplace. They can expertly deal with challenges that create risk for the business.

A successful business must be able to assess the probability of something going wrong and be able to anticipate the negative consequences if it does. Problem solving skills assist employees to foresee the likely sources of risk to the business and to make considered decisions as to the best way to manage those risks. These skills also play a key role in refining an organisation’s internal talent pipeline.

Strategies for developing problem solving in employees

When developing problem solving in the workplace, it is critical to take a flexible approach that addresses the needs of both current and future employees.

Emphasise problem solving in recruitment and assessment

Whether they are entry level, managers or senior executives, problem solving is a crucial skill for all your employees. Skills that indicate a strong problem solving ability are listening skills, analytical thinking skills, creative thinking skills and communication skills. These skills should be sought out and encouraged in both recruitment and assessment.

One way to identify problem solving skills in interviews is by giving candidates problems that they must solve on the spot within a limited time frame. Interviewers can then assess both the solution that the candidate came up with as well as how they responded to the unexpected challenge.

Self management, not micromanagement

Micromanagement can impede a business’ ability to reach its goals. Instead of raising productivity, micromanagement is more likely to lower the morale of your employees, stifle creativity and damage trust. Employees must have the ability and be given the opportunity to manage their own workflow and productivity without constantly relying on a supervisor.

Problem solving skills will help equip your employees with the ability to self manage their tasks and projects. Through purposeful self management , they will be able to take initiative to solve both the straightforward and complex problems faced in their role.

Give employees goals rather than instructions

Giving employees step-by-step instructions as to how to complete each aspect of their job will not result in an agile and innovative workforce. Rather, it will restrict their ability to seek out new methods and evaluate current contexts.

By providing employees with goals rather than limiting instructions, businesses can increase employee engagement and productivity. This in turn can help empower employees to contribute meaningfully to larger business objectives.

Promote a culture of innovation and collaboration

A successful and resilient business supports its employees with a culture that promotes innovation and collaboration. Problem solving skills will allow your employees to build relationships and excel at daily decision making processes.

Good problem solvers possess good communication skills and can collaborate effectively with their team. They can also think laterally and creatively to find innovative solutions to problems and find opportunities for business development.

Ensure employees have the resources to solve problems

In order to identify issues and discover impactful solutions, employees must have access to relevant tools that provide them with in-depth insights into internal and external contexts. Even the most innovative thinker will struggle to fully capitalise on their problem solving skills without the right resources to support them.

Of course, the nature of these resources will depend on the employee’s role and the context in which they work. Resources may include software, subscriptions, technological equipment and specific communication channels. For all of their differences, these resources will ideally assist the employee to integrate root cause analysis into day-to-day processes.

Provide training

Despite common misconception, problem solving skills are not necessarily innate. Rather, analytical and creative thinking skills can be fostered through purposeful training that provides individuals with a toolkit of problem solving techniques. It also offers an open space for employees to build on existing skill sets through hypothetical scenarios that will test their ability to extempromise, communicate proactively and think creatively.

Start building problem solving skills today

All businesses have the power to create proficient problem solvers within their existing and future workforce. Contact our team today to find out how a bespoke DeakinCo. learning solution could help your employees build on their problem solving skill sets through purposeful, relevant training.

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What is problem solving and why is it important

why is problem solving a necessary management skills

By Wayne Stottler , Kepner-Tregoe

  • Problem Solving & Decision Making Over time, developing and refining problem solving skills provides the ability to solve increasingly complex problems Learn More

For over 60 years, Kepner-Tregoe has been helping companies across industries and geographies to develop and mature their problem-solving capabilities through KT’s industry leading approach to training and the implementation of best practice processes. Considering that problem solving is a part of almost every person’s daily life (both at home and in the workplace), it is surprising how often we are asked to explain what problem solving is and why it is important.

Problem solving is at the core of human evolution. It is the methods we use to understand what is happening in our environment, identify things we want to change and then figure out the things that need to be done to create the desired outcome. Problem solving is the source of all new inventions, social and cultural evolution, and the basis for market based economies. It is the basis for continuous improvement, communication and learning.

If this problem-solving thing is so important to daily life, what is it?

Problem-solving is the process of observing what is going on in your environment; identifying things that could be changed or improved; diagnosing why the current state is the way it is and the factors and forces that influence it; developing approaches and alternatives to influence change; making decisions about which alternative to select; taking action to implement the changes; and observing impact of those actions in the environment.

Each step in the problem-solving process employs skills and methods that contribute to the overall effectiveness of influencing change and determine the level of problem complexity that can be addressed. Humans learn how to solve simple problems from a very early age (learning to eat, make coordinated movements and communicate) – and as a person goes through life problem-solving skills are refined, matured and become more sophisticated (enabling them to solve more difficult problems).

Problem-solving is important both to individuals and organizations because it enables us to exert control over our environment.

Fixing things that are broken

Some things wear out and break over time, others are flawed from day-1. Personal and business environments are full of things, activities, interactions and processes that are broken or not operating in the way they are desired to work. Problem-solving gives us a mechanism for identifying these things, figuring out why they are broken and determining a course of action to fix them.

Addressing risk

Humans have learned to identify trends and developed an awareness of cause-and-effect relationships in their environment. These skills not only enable us to fix things when they break but also anticipate what may happen in the future (based on past-experience and current events). Problem-solving can be applied to the anticipated future events and used to enable action in the present to influence the likelihood of the event occurring and/or alter the impact if the event does occur.

Improving performance

Individuals and organizations do not exist in isolation in the environment. There is a complex and ever-changing web of relationships that exist and as a result, the actions of one person will often have either a direct impact on others or an indirect impact by changing the environment dynamics. These interdependencies enable humans to work together to solve more complex problems but they also create a force that requires everyone to continuously improve performance to adapt to improvements by others. Problem-solving helps us understand relationships and implement the changes and improvements needed to compete and survive in a continually changing environment.

Seizing opportunity

Problem solving isn’t just about responding to (and fixing) the environment that exists today. It is also about innovating, creating new things and changing the environment to be more desirable. Problem-solving enables us to identify and exploit opportunities in the environment and exert (some level of) control over the future.

Problem solving skills and the problem-solving process are a critical part of daily life both as individuals and organizations. Developing and refining these skills through training, practice and learning can provide the ability to solve problems more effectively and over time address problems with a greater degree of complexity and difficulty. View KT’s Problem Solving workshop known to be the gold standard for over 60 years.

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Why Problem Solving is Important in the Workplace

profile picture ben schwencke

Ben is responsible for talent analytics at Test Partnership and is often who you will speak to if you book a demo .

What is problem solving?

What is an example of problem solving, why problem solving is important, how to improve problem solving, how to assess candidates on their problem solving, our recommended test partnership assessments for measuring problem solving.

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Problem solving in the workplace refers to a person’s ability to handle difficult or unexpected situations and find solutions to complex business challenges. Employees with exceptional problem solving ability will carefully analyse the problem, identify a range of potential solutions, and correctly identify the most effective of the available solutions to remedy the situation. This ensures that employees in complex work who are relied upon to find effective solutions to key business issues are maximally equipped to deal with modern problems that face 21st century businesses.

Those with good problem solving ability will move the business forward more effectively.

Those lacking problem solving ability will inevitably recommend ineffective solutions to key business issues, solutions which will either fail to resolve the underlying issue or indeed exasperate it. For example, they may misinterpret the information presented to them, fail to identify effective solutions to problems, or provide solutions which are unsuitable or indeed counterproductive. Employees with poor problem solving ability cannot be relied upon when the unexpected happens, shifting the burden on other staff. As a result, problem solving ability is a common core competency when hiring professional, managerial, or technical roles, and highly prized by HR professionals and hiring managers.

Problem-solving refers to the ability to identify and resolve problems in an effective and efficient manner. An example of problem-solving can be seen in the role of a customer service representative. A customer service representative is responsible for handling customer complaints and issues, and finding a solution that will satisfy the customer.

Problem solving ability is essential to performance in any role where issues need to be dealt with quickly, or where the issues that employees face are particularly complex. Employees skilled in problem solving contribute to a more adaptable and productive work environment. It promotes teamwork, critical thinking, and strategic decision-making, leading to improved outcomes and organisational success.

Watch a video instead?

If you would prefer to watch a video, here Ben outlines why problem solving is important in the workplace:

For example, management consultants are expected to solve particularly complex issues that their clients may be facing, and within very specific time-frames. Should a consultant fail to provide a solution within the specified timeframe, this will inevitably look bad in the eyes of the client, sullying the relationship and potentially negatively impacting the consultancy’s reputation. However, a consultant with exceptional problem solving ability will most likely provide effective solutions to the client’s problems and provide them within the requisite time period.

"As a competency, problem solving is a common performance criterion for roles that require staff to solve urgent or complex problems." Ben Schwencke Consultant

As a competency, problem solving is a common performance criterion for roles that require staff to solve urgent or complex problems. These include, but are not limited to: management consultants, IT professionals, finance professionals, legal professionals, data scientists, managers, and executives. As a general rule, the more the role involves employees providing solutions to complex or urgent problems, the more important problem solving ability will be, and the more damage employees could potential cause if they lack those essential problem solving abilities in the workplace.

When a customer contacts a company with a problem, the customer service representative must first listen carefully to the customer's complaint and understand the issue. They then need to gather information and assess the situation to determine the cause of the problem.

They must evaluate different options and choose the best course of action to resolve the problem.

Next, they must evaluate different options and choose the best course of action to resolve the problem. Finally, they must implement the chosen solution and follow up to ensure that the problem has been fully resolved.

Problem solving as a psychological construct is underpinned predominantly by specific cognitive abilities. The ability to solve quantitative problems for example, is underpinned by a person’s level of numerical reasoning , and their ability to solve qualitative problems is underpinned by their verbal reasoning . Indeed, the academic research in this field suggests that the predictive validity of ability tests is largely attributable to problem solving abilities. Aptitude test questions are essentially just cognitive problems, and a candidate’s ability to solve them serves as a very useful proxy for their overall problem solving ability.

Other assessments may also measure problem solving to some degree, particularly certain assessment centre exercises, such as case study exercises. Here, candidates will be presented with a particular workplace relevant problem and told to generate solutions to that problem. Although this can be an effective method of assessing problem solving ability, assessment centre exercises are quite resource intensive, and are thus only suitable for the later stages of the recruitment process. Ability tests, however, can be used early in the recruitment process, ensuring that all subsequent candidate hold the requisite level of problem solving ability.

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The Power of Leaders Who Focus on Solving Problems

by Deborah Ancona and Hal Gregersen

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Summary .   

There’s a new kind of leadership taking hold in organizations. Strikingly, these new leaders don’t like to be called leaders, and none has any expectation that they will attract “followers”  personally  — by dint of their charisma, status in a hierarchy, or access to resources. Instead, their method is to get others excited about whatever problem they have identified as ripe for a novel solution. Having fallen in love with a problem, they step up to leadership — but only reluctantly and only as necessary to get it solved. Leadership becomes an intermittent activity as people with enthusiasm and expertise step up as needed, and readily step aside when, based on the needs of the project, another team member’s strengths are more central. Rather than being pure generalists, leaders pursue their own deep expertise, while gaining enough familiarity with other knowledge realms to make the necessary connections. They expect to be involved in a series of initiatives with contributors fluidly assembling and disassembling.

In front of a packed room of MIT students and alumni, Vivienne Ming is holding forth in a style all her own. “Embrace cyborgs,” she calls out, as she clicks to a slide that raises eyebrows even in this tech-smitten crowd. “ Really . Fifteen to 25 years from now, cognitive neuroprosthetics will fundamentally change the definition of what it means to be human.”

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problem-solving

What Is Problem-Solving? How to Use Problem-Solving Skills to Resolve Issues

Great businesses don’t exist to simply grow and make money. Instead, they solve the world’s problems , from tiny issues to giant dilemmas. Problem-solving is essentially the main function of organizations. An effective organization will have systems and processes in place to reach their goals and solve problems. If a company has team members and leaders who have poor problem-solving skills, that means they’re ineffective at one of the core functions of a business.

What Is Problem-Solving?

What is the general process of problem-solving, 1. define the problem, 2. brainstorm possible solutions, 3. research several options.

After you’ve come up with several possible alternative solutions, pick two or three that seem the most promising using your analytical skills. Then you’ll need to buckle down and do some research to see which one to pursue. Conduct your research using primary and secondary resources.

4. Select a Solution

In order to make the most objective decision:

5. Develop an Action Plan

When the right choice is made, and the solution is placed into the overall strategy, start developing an action plan . Lay out the “who,” “what,” “when,” “why,” and “how.” Visualize exactly what success looks like with this new plan. When working through the problem-solving process, write all the details down. This helps leaders construct action items and delegate them accordingly. Never leave this part of the process empty-handed. Your team needs a clear picture of expectations so they can properly implement the solution. And if everything works, you can use this problem-solving model in the future.

The Best Problem-Solving Strategies and Tools

One of the best ways to discover the root cause of a problem is by utilizing the 5 Whys method. This strategy was developed by Sakichi Toyoda, founder of Toyota Industries. It’s as simple as it sounds. When a problem occurs, ask why it happened five times. In theory, the last answer should get to the heart of the issue.

First Principles Thinking

When one engages in first principles thinking , they end up questioning what everyone just assumes to be true. It effectively removes those assumptions , breaking things down into their most basic elements that are probably true. It’s all about getting to that core foundation of truth and building out from there. Problem-solving skills should always include first principles thinking.

Steve Jobs’ Problem-Solving Method

What to do when a problem feels too big to solve.

Tackling a problem that feels too big to solve requires a can-do, positive mindset. In order to improve your problem-solving, you’ll need to take remember these steps. Imagine what is possible instead of focusing on what seems impossible. As you do so, you’ll become skilled in solving all sorts of problems while also improving your decision-making.

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Problem Solving Skills That Managers Need To Have

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We cannot solve our problems with the same thinking we used when we created them. ― Albert Einstein.

Being a part of an organization has always been an overwhelming and exciting experience for the employees. During the job life-cycle , from the start of orientation to leaving a job learning new things and gaining skills has always been a part of it.

Well, learning is all good until and unless a situation arises that halts your learning process. Conditions like this are often referred to as the problems we face at work.

But how well do we cope up with the everyday problems that we often face? Some people are good at problem-solving. Others may think they are not. Most are somewhere in between.

If you are not sure about it, don’t worry; this article is about all the problem-solving skills you can get.

What defines a problem-solving skill?

Every problem is a gift. Without them, we wouldn’t grow. – Tony Robbins.

A problem can be defined as a situation that prevents us from achieving the goals we have set for ourselves. It can be anything from financial, personal to work-related. Problems can arise anywhere, and any activity that helps to end our problem results in problem-solving.

Our capacity to develop solutions to problems defines our ability to have good problem-solving skills. Problem-solving skills can be acquired through various training programs and learning throughout the job tenure. It is a practice that can make an individual more profound and proficient at their job.

Approaching the problems in the right way:

Problems are nothing but wake-up calls for creativity. – Gerhard Gschwandtner

Problem-solving needs the right strategies and an approach that is more effective in every possible way. Below are 4 points that will help you and your employees to take the right road to problem-solving

1. Understanding the problem:

To solve a problem, you need to understand what exactly gave rise to it. You need to get to its root and try to pick out the main trigger of the problem. You need to understand how it created a Domino effect that has impeded your organization’s work and culture.

Try to pinpoint the affected areas and come up with the necessary solutions.

2. Devising solutions:

After you have found out and dug deep into the root cause of your problem, you need to devise a plan on how to tackle it. To be successful, you need to curate a framework that is easy to understand for your team.

A framework consists of all the potential solutions to the problem that you and your employees face.

3. Evaluating solutions:

Once you come up with all the necessary solutions, it comes down to evaluating and selecting the best ones.

Brainstorming sessions are essential to decide what solutions the team needs. It will help the team meet great effectiveness. Such sessions also help the team leaders get a different perspective from different team members within the organization.

4. Implementing solutions:

The final step of problem-solving is all about implementing the solutions that you evaluated. But before implementing, try to scrutinize the solution well so that there are no loopholes left and create more problems after implementation.

Further, monitor the status of the solution that you have decided to push through. If it does not work well, try the other ones you have in hand and search for positive results.

The Problem-Solving Skills that you need to have:

A problem is a chance for you to do your best. – Duke Ellington

1. Being open-minded:

Possibilities might be high that the leading cause of the problem that you are facing is something else. So, you have to keep an open mind about accepting that the actual reason is different from the one you thought at first, which provides you with more options for answers and solutions.

Being open-minded also gives you good leverage in understanding a more wide range of problems. It also allows you to observe and notice the significant changes in an organization, eventually affecting the long run.

This is a skill that needs to be furnished with time to connect and communicate for better engagement .

2. Right attitude:

Approaching the problems needs a strategy and the right attitude . If you do not have the right idea and knowledge about what has given rise to the situation, then you won’t be able to tackle it.

You must keep your attitude positive about accepting how the situation came into play and how you will implement the solutions.

Try not to panic when you try to solve a problem. Instead, try to calm yourself, organize a team meeting, and come up with clarifications about the situation. As a leader, when you have the right and confident attitude, you can only expect a positive response from your team, and you will be able to instill good morale.

3. Being analytical:

Good problem-solving abilities need excellent analytical skills. And to enhance your analytical skills, you need to be more patient and observant about everything going around in the organization.

With time and practice, the analytical skills can be sharpened so that you can tackle problems with much more authority and proper facts.

This skill set is beneficial for both employers and employees as it will widen your already acquired skills.

4. Asking the right questions:

Now, this is one thing you need to be good at to pinpoint the direct cause of the problem you are facing at work. And you can only get better at it with practice.

Try to indulge yourself in solving problems often and asking the right questions to help others in the team.

When you become more proficient in it with time, you are more likely to ask valid questions closer to the problem. And try not to focus more on the questions that are more driven towards the problem. Rather try to question the solutions so that the problem-solving process becomes manageable. Increasing productivity and boosting morale .

5. Get creative:

Creativity has no boundaries, and it is one of the essential skills that one can have. When you have that creative edge in your team, problem-solving becomes much easier as creative thinkers can find suitable ways out of the box.

Well, that can motivate you to get creative and come up with your new ideas. It might not be easy, but it is a gradual process. You have to become more open to ideas and benefit from the endless possibilities of being more creative.

Summing it Up:

Problems can become your Achilles heels in the path of progress. Be it in your everyday life or the work-life. It can hinder your growth if you do not have the necessary skills to tackle the problem well. But skills can be learned, and with time, you can hone those skills. It all comes down to the fact of how much you are invested and eager to learn continuously .

Persevere and become a problem solver so that you can put in place effective problem-solving abilities in your organization.

Mrinmoy Rabha

Mrinmoy Rabha is a content writer and digital marketer at Vantage Circle . He is an avid follower of football and passionate about singing. For any related queries, contact [email protected]

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COMMENTS

  1. 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.

  2. Problem Solving as a Manager: Definition and Tips

    How to solve problems as a manager. Consider these steps to help you solve problems as a manager in your workplace: 1. Define the problem. You must first identify what the problem is by talking to colleagues, conducting research and using your observational skills. Once you understand the challenge you want to overcome, try to define it as ...

  3. The Importance of Problem-Solving Skills in the Workplace

    Sharpen your problem-solving skills to anticipate future events better and increase the awareness of cause-and-effect relationships. This enables you to take the right actions and influence the outcomes if issues do occur. Problem-solving skills are important if you work simultaneously on several projects.

  4. The Importance of Problem-Solving Skills in the Workplace

    This is why innovation as a facet of problem-solving in the workplace is key. Problem-solving in the workplace often involves a lot of teamwork. Collaborating on a problem is a great way for a team to bond and learn more about each other's strengths. In this way, problem-solving contributes towards team unity and purpose.

  5. Problem Solving 101 for Managers: 5 Essential Skills and Tips

    Communication is one of the five essential skills for effective problem-solving as a manager. Good communication skills are foundational to successful problem-solving, and managers must be able to articulate problems clearly, listen actively to feedback and suggestions, and communicate solutions effectively. Additionally, strong communication ...

  6. Problem-solving in Leadership: How to Master the 5 Key Skills

    Problem-solving in leadership is a multi-faceted competency that requires conceptual thinking, planning, creativity, and collaboration. Leaders must learn to facilitate collaborative problem-solving instead of being solitary master problem-solvers. The right approach to problem-solving in leadership involves the following: Identifying the root ...

  7. Mastering Problem-Solving: Essential Guide for Managers

    Why Are Problem-Solving Skills Important in Management? These skills are crucial for managers to effectively lead and improve their teams. They play a key role in achieving better team cohesion, workflow improvement, client and customer happiness, exceeding work expectations, timely project completion, and creating a welcoming work environment.

  8. Leadership Problem Solving Skills

    One of the most important problem-solving skills for leaders is emotional intelligence - the ability to understand emotions and empathize with others. This is crucial when recognizing employees' problems. An EY Consulting survey found that 90% of US workers believe empathetic leadership leads to greater job satisfaction.

  9. What Are Problem-Solving Skills? Definition and Examples

    Problem-solving skills are the ability to identify problems, brainstorm and analyze answers, and implement the best solutions. An employee with good problem-solving skills is both a self-starter and a collaborative teammate; they are proactive in understanding the root of a problem and work with others to consider a wide range of solutions ...

  10. Problem-Solving Skills: What They Are and How to Improve Yours

    Problem-solving skills defined. Problem-solving skills are skills that allow individuals to efficiently and effectively find solutions to issues. This attribute is a primary skill that employers look for in job candidates and is essential in a variety of careers. This skill is considered to be a soft skill, or an individual strength, as opposed ...

  11. The Importance of Problem Solving Skills in the Workplace

    5. Decision-making skills. Those with problem-solving skills will also possess the ability to make decisions and be confident in them. This is important, because most problem-solving involves making firm decisions to reach a successful outcome. 6.

  12. WHY PROBLEM SOLVING SKILLS MATTER IN THE WORKPLACE

    Problem solving skills provide employees with the ability to recognise and analyse problems, identify and evaluate a range of potential solutions and then decide on and implement the most effective solution. A workforce equipped with problem solving skills will be adaptive and ready to face the challenges of the constantly evolving modern ...

  13. What is problem solving and why is it important

    Problem-solving enables us to identify and exploit opportunities in the environment and exert (some level of) control over the future. Problem solving skills and the problem-solving process are a critical part of daily life both as individuals and organizations. Developing and refining these skills through training, practice and learning can ...

  14. Why Problem Solving is Important in the Workplace

    Problem solving ability is essential to performance in any role where issues need to be dealt with quickly, or where the issues that employees face are particularly complex. Employees skilled in problem solving contribute to a more adaptable and productive work environment. It promotes teamwork, critical thinking, and strategic decision-making ...

  15. The Power of Leaders Who Focus on Solving Problems

    They expect to be involved in a series of initiatives with contributors fluidly assembling and disassembling. In front of a packed room of MIT students and alumni, Vivienne Ming is holding forth ...

  16. What Is Problem-Solving? How to Use Problem-Solving Skills to Resolve

    The key to cultivating excellent problem-solving skills is having a distinct process designed to produce solutions. While it may seem like problem-solving involves a complex strategy, it features several steps that are easy to follow. The following steps represent a general problem-solving process you can use when you need to find a solution. 1.

  17. Why is problem-solving important in the workplace? (And tips)

    By using problem-solving, you may effectively determine the course of action or prioritise work. It also helps you strategise solutions, helping others recognise and use their strengths and potential to contribute to projects. Problem-solving abilities are especially useful when a team is experiencing a high volume of work, for example, a ...

  18. Problem Solving Skills That Managers Need To Have

    Problem-solving needs the right strategies and an approach that is more effective in every possible way. Below are 4 points that will help you and your employees to take the right road to problem-solving. 1. Understanding the problem: To solve a problem, you need to understand what exactly gave rise to it. You need to get to its root and try to ...

  19. Why problem-solving skills are so important for your career

    Employers rate problem solving skills so highly because the core ingredients are relevant to virtually any job role. Problem solving is a test of your aptitude for assessing situations and analysing information. No manager wants to hire someone who can't think for themselves and comes running every time something goes wrong.