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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 .

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10 Step Process for Effective Business Problem Solving

Posted august 3, 2021 by harriet genever.

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

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

What is problem solving in business?

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

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

Why problem solving is important for your business

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

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

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

1. Define the problem

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

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

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

Competition 

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

Business model 

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

Market factors

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

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

Goal alignment 

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

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

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

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

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

2. Conduct a SWOT analysis

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

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

3. Identify multiple solutions with design thinking

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

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

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

4. Conduct market research and customer outreach

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

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

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

5. Seek input from your team and your mentors

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

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

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

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

6. Apply lean planning for nimble execution

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

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

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

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

7. Model different financial scenarios

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

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

8. Watch your cash flow

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

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

9. Use a decision-making framework

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

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

business problem solving skills

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

10. Identify key metrics to track

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

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

Problem solving skills to improve

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

Emotional intelligence

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

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

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

Brainstorming

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

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

Decisiveness

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

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

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

Problem solving is a process

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

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

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Harriet Genever

Harriet Genever

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10 Problem-solving strategies to turn challenges on their head

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What is an example of problem-solving?

What are the 5 steps to problem-solving, 10 effective problem-solving strategies, what skills do efficient problem solvers have, how to improve your problem-solving skills.

Problems come in all shapes and sizes — from workplace conflict to budget cuts.

Creative problem-solving is one of the most in-demand skills in all roles and industries. It can boost an organization’s human capital and give it a competitive edge. 

Problem-solving strategies are ways of approaching problems that can help you look beyond the obvious answers and find the best solution to your problem . 

Let’s take a look at a five-step problem-solving process and how to combine it with proven problem-solving strategies. This will give you the tools and skills to solve even your most complex problems.

Good problem-solving is an essential part of the decision-making process . To see what a problem-solving process might look like in real life, let’s take a common problem for SaaS brands — decreasing customer churn rates.

To solve this problem, the company must first identify it. In this case, the problem is that the churn rate is too high. 

Next, they need to identify the root causes of the problem. This could be anything from their customer service experience to their email marketing campaigns. If there are several problems, they will need a separate problem-solving process for each one. 

Let’s say the problem is with email marketing — they’re not nurturing existing customers. Now that they’ve identified the problem, they can start using problem-solving strategies to look for solutions. 

This might look like coming up with special offers, discounts, or bonuses for existing customers. They need to find ways to remind them to use their products and services while providing added value. This will encourage customers to keep paying their monthly subscriptions.

They might also want to add incentives, such as access to a premium service at no extra cost after 12 months of membership. They could publish blog posts that help their customers solve common problems and share them as an email newsletter.

The company should set targets and a time frame in which to achieve them. This will allow leaders to measure progress and identify which actions yield the best results.

team-meeting-problem-solving-strategies

Perhaps you’ve got a problem you need to tackle. Or maybe you want to be prepared the next time one arises. Either way, it’s a good idea to get familiar with the five steps of problem-solving. 

Use this step-by-step problem-solving method with the strategies in the following section to find possible solutions to your problem.

1. Identify the problem

The first step is to know which problem you need to solve. Then, you need to find the root cause of the problem. 

The best course of action is to gather as much data as possible, speak to the people involved, and separate facts from opinions. 

Once this is done, formulate a statement that describes the problem. Use rational persuasion to make sure your team agrees .

2. Break the problem down 

Identifying the problem allows you to see which steps need to be taken to solve it. 

First, break the problem down into achievable blocks. Then, use strategic planning to set a time frame in which to solve the problem and establish a timeline for the completion of each stage.

3. Generate potential solutions

At this stage, the aim isn’t to evaluate possible solutions but to generate as many ideas as possible. 

Encourage your team to use creative thinking and be patient — the best solution may not be the first or most obvious one.

Use one or more of the different strategies in the following section to help come up with solutions — the more creative, the better.

4. Evaluate the possible solutions

Once you’ve generated potential solutions, narrow them down to a shortlist. Then, evaluate the options on your shortlist. 

There are usually many factors to consider. So when evaluating a solution, ask yourself the following questions:

  • Will my team be on board with the proposition?
  • Does the solution align with organizational goals ?
  • Is the solution likely to achieve the desired outcomes?
  • Is the solution realistic and possible with current resources and constraints?
  • Will the solution solve the problem without causing additional unintended problems?

woman-helping-her-colleague-problem-solving-strategies

5. Implement and monitor the solutions

Once you’ve identified your solution and got buy-in from your team, it’s time to implement it. 

But the work doesn’t stop there. You need to monitor your solution to see whether it actually solves your problem. 

Request regular feedback from the team members involved and have a monitoring and evaluation plan in place to measure progress.

If the solution doesn’t achieve your desired results, start this step-by-step process again.

There are many different ways to approach problem-solving. Each is suitable for different types of problems. 

The most appropriate problem-solving techniques will depend on your specific problem. You may need to experiment with several strategies before you find a workable solution.

Here are 10 effective problem-solving strategies for you to try:

  • Use a solution that worked before
  • Brainstorming
  • Work backward
  • Use the Kipling method
  • Draw the problem
  • Use trial and error
  • Sleep on it
  • Get advice from your peers
  • Use the Pareto principle
  • Add successful solutions to your toolkit

Let’s break each of these down.

1. Use a solution that worked before

It might seem obvious, but if you’ve faced similar problems in the past, look back to what worked then. See if any of the solutions could apply to your current situation and, if so, replicate them.

2. Brainstorming

The more people you enlist to help solve the problem, the more potential solutions you can come up with.

Use different brainstorming techniques to workshop potential solutions with your team. They’ll likely bring something you haven’t thought of to the table.

3. Work backward

Working backward is a way to reverse engineer your problem. Imagine your problem has been solved, and make that the starting point.

Then, retrace your steps back to where you are now. This can help you see which course of action may be most effective.

4. Use the Kipling method

This is a method that poses six questions based on Rudyard Kipling’s poem, “ I Keep Six Honest Serving Men .” 

  • What is the problem?
  • Why is the problem important?
  • When did the problem arise, and when does it need to be solved?
  • How did the problem happen?
  • Where is the problem occurring?
  • Who does the problem affect?

Answering these questions can help you identify possible solutions.

5. Draw the problem

Sometimes it can be difficult to visualize all the components and moving parts of a problem and its solution. Drawing a diagram can help.

This technique is particularly helpful for solving process-related problems. For example, a product development team might want to decrease the time they take to fix bugs and create new iterations. Drawing the processes involved can help you see where improvements can be made.

woman-drawing-mind-map-problem-solving-strategies

6. Use trial-and-error

A trial-and-error approach can be useful when you have several possible solutions and want to test them to see which one works best.

7. Sleep on it

Finding the best solution to a problem is a process. Remember to take breaks and get enough rest . Sometimes, a walk around the block can bring inspiration, but you should sleep on it if possible.

A good night’s sleep helps us find creative solutions to problems. This is because when you sleep, your brain sorts through the day’s events and stores them as memories. This enables you to process your ideas at a subconscious level. 

If possible, give yourself a few days to develop and analyze possible solutions. You may find you have greater clarity after sleeping on it. Your mind will also be fresh, so you’ll be able to make better decisions.

8. Get advice from your peers

Getting input from a group of people can help you find solutions you may not have thought of on your own. 

For solo entrepreneurs or freelancers, this might look like hiring a coach or mentor or joining a mastermind group. 

For leaders , it might be consulting other members of the leadership team or working with a business coach .

It’s important to recognize you might not have all the skills, experience, or knowledge necessary to find a solution alone. 

9. Use the Pareto principle

The Pareto principle — also known as the 80/20 rule — can help you identify possible root causes and potential solutions for your problems.

Although it’s not a mathematical law, it’s a principle found throughout many aspects of business and life. For example, 20% of the sales reps in a company might close 80% of the sales. 

You may be able to narrow down the causes of your problem by applying the Pareto principle. This can also help you identify the most appropriate solutions.

10. Add successful solutions to your toolkit

Every situation is different, and the same solutions might not always work. But by keeping a record of successful problem-solving strategies, you can build up a solutions toolkit. 

These solutions may be applicable to future problems. Even if not, they may save you some of the time and work needed to come up with a new solution.

three-colleagues-looking-at-computer-problem-solving-strategies

Improving problem-solving skills is essential for professional development — both yours and your team’s. Here are some of the key skills of effective problem solvers:

  • Critical thinking and analytical skills
  • Communication skills , including active listening
  • Decision-making
  • Planning and prioritization
  • Emotional intelligence , including empathy and emotional regulation
  • Time management
  • Data analysis
  • Research skills
  • Project management

And they see problems as opportunities. Everyone is born with problem-solving skills. But accessing these abilities depends on how we view problems. Effective problem-solvers see problems as opportunities to learn and improve.

Ready to work on your problem-solving abilities? Get started with these seven tips.

1. Build your problem-solving skills

One of the best ways to improve your problem-solving skills is to learn from experts. Consider enrolling in organizational training , shadowing a mentor , or working with a coach .

2. Practice

Practice using your new problem-solving skills by applying them to smaller problems you might encounter in your daily life. 

Alternatively, imagine problematic scenarios that might arise at work and use problem-solving strategies to find hypothetical solutions.

3. Don’t try to find a solution right away

Often, the first solution you think of to solve a problem isn’t the most appropriate or effective.

Instead of thinking on the spot, give yourself time and use one or more of the problem-solving strategies above to activate your creative thinking. 

two-colleagues-talking-at-corporate-event-problem-solving-strategies

4. Ask for feedback

Receiving feedback is always important for learning and growth. Your perception of your problem-solving skills may be different from that of your colleagues. They can provide insights that help you improve. 

5. Learn new approaches and methodologies

There are entire books written about problem-solving methodologies if you want to take a deep dive into the subject. 

We recommend starting with “ Fixed — How to Perfect the Fine Art of Problem Solving ” by Amy E. Herman. 

6. Experiment

Tried-and-tested problem-solving techniques can be useful. However, they don’t teach you how to innovate and develop your own problem-solving approaches. 

Sometimes, an unconventional approach can lead to the development of a brilliant new idea or strategy. So don’t be afraid to suggest your most “out there” ideas.

7. Analyze the success of your competitors

Do you have competitors who have already solved the problem you’re facing? Look at what they did, and work backward to solve your own problem. 

For example, Netflix started in the 1990s as a DVD mail-rental company. Its main competitor at the time was Blockbuster. 

But when streaming became the norm in the early 2000s, both companies faced a crisis. Netflix innovated, unveiling its streaming service in 2007. 

If Blockbuster had followed Netflix’s example, it might have survived. Instead, it declared bankruptcy in 2010.

Use problem-solving strategies to uplevel your business

When facing a problem, it’s worth taking the time to find the right solution. 

Otherwise, we risk either running away from our problems or headlong into solutions. When we do this, we might miss out on other, better options.

Use the problem-solving strategies outlined above to find innovative solutions to your business’ most perplexing problems.

If you’re ready to take problem-solving to the next level, request a demo with BetterUp . Our expert coaches specialize in helping teams develop and implement strategies that work.

Boost your productivity

Maximize your time and productivity with strategies from our expert coaches.

Elizabeth Perry, ACC

Elizabeth Perry is a Coach Community Manager at BetterUp. She uses strategic engagement strategies to cultivate a learning community across a global network of Coaches through in-person and virtual experiences, technology-enabled platforms, and strategic coaching industry partnerships. With over 3 years of coaching experience and a certification in transformative leadership and life coaching from Sofia University, Elizabeth leverages transpersonal psychology expertise to help coaches and clients gain awareness of their behavioral and thought patterns, discover their purpose and passions, and elevate their potential. She is a lifelong student of psychology, personal growth, and human potential as well as an ICF-certified ACC transpersonal life and leadership Coach.

8 creative solutions to your most challenging problems

5 problem-solving questions to prepare you for your next interview, what are metacognitive skills examples in everyday life, 31 examples of problem solving performance review phrases, what is lateral thinking 7 techniques to encourage creative ideas, leadership activities that encourage employee engagement, learn what process mapping is and how to create one (+ examples), how much do distractions cost 8 effects of lack of focus, can dreams help you solve problems 6 ways to try, similar articles, the pareto principle: how the 80/20 rule can help you do more with less, thinking outside the box: 8 ways to become a creative problem solver, experimentation brings innovation: create an experimental workplace, 3 problem statement examples and steps to write your own, contingency planning: 4 steps to prepare for the unexpected, stay connected with betterup, get our newsletter, event invites, plus product insights and research..

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How to develop a problem-solving mindset

May 14, 2023 Leaders today are confronted with more problems, of greater magnitude, than ever before. In these volatile times, it’s natural to react based on what’s worked best in the past. But when you’re solving the toughest business challenges on an ongoing basis, it’s crucial to start from a place of awareness. “If you are in an uncertain situation, the most important thing you can do is calm down,” says senior partner Aaron De Smet , who coauthored Deliberate Calm  with Jacqueline Brassey  and Michiel Kruyt. “Take a breath. Take stock. ‘Is the thing I’m about to do the right thing to do?’ And in many cases, the answer is no. If you were in a truly uncertain environment, if you’re in new territory, the thing you would normally do might not be the right thing.” Practicing deliberate calm not only prepares you to deal with the toughest problems, but it enhances the quality of your decisions, makes you more productive, and enables you to be a better leader. Check out these insights to learn how to develop a problem-solving mindset—and understand why the solution to any problem starts with you.

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To Solve a Tough Problem, Reframe It

  • Julia Binder
  • Michael D. Watkins

business problem solving skills

Research shows that companies devote too little effort to examining problems before trying to solve them. By jumping immediately into problem-solving, teams limit their ability to design innovative solutions.

The authors recommend that companies spend more time up front on problem-framing, a process for understanding and defining a problem. Exploring different frames is like looking at a scene through various camera lenses while adjusting your angle, aperture, and focus. A wide-angle lens gives you a very different photo from that taken with a telephoto lens, and shifting your angle and depth of focus yields distinct images. Effective problem-framing is similar: Looking at a problem from a variety of perspectives helps you uncover new insights and generate fresh ideas.

This article introduces a five-phase approach to problem-framing: In the expand phase, the team identifies all aspects of a problem; in examine, it dives into root causes; in empathize, it considers key stakeholders’ perspectives; in elevate, it puts the problem into a broader context; and in envision, it creates a road map toward the desired outcome.

Five steps to ensure that you don’t jump to solutions

Idea in Brief

The problem.

Research shows that most companies devote too little effort to examining problems from all angles before trying to solve them. That limits their ability to come up with innovative ways to address them.

The Solution

Companies need a structured approach for understanding and defining complex problems to uncover new insights and generate fresh ideas.

The Approach

This article introduces a five-phase approach to problem-framing: In the expand phase, the team identifies all aspects of a problem; in examine, it dives into root causes; in empathize, it considers key stakeholders’ perspectives; in elevate, it puts the problem into a broader context; and in envision, it creates a road map toward the desired outcome.

When business leaders confront complex problems, there’s a powerful impulse to dive right into “solving” mode: You gather a team and then identify potential solutions. That’s fine for challenges you’ve faced before or when proven methods yield good results. But what happens when a new type of problem arises or aspects of a familiar one shift substantially? Or if you’re not exactly sure what the problem is?

Research conducted by us and others shows that leaders and their teams devote too little effort to examining and defining problems before trying to solve them. A study by Paul Nutt of Ohio State University, for example, looked at 350 decision-making processes at medium to large companies and found that more than half failed to achieve desired results, often because perceived time pressure caused people to pay insufficient attention to examining problems from all angles and exploring their complexities. By jumping immediately into problem-solving, teams limit their ability to design innovative and durable solutions.

When we work with organizations and teams, we encourage them to spend more time up front on problem-framing, a process for understanding and defining a problem. Exploring frames is like looking at a scene through various camera lenses while adjusting your angle, aperture, and focus. A wide-angle lens will give you a very different photo from that taken with a telephoto lens, and shifting your angle and depth of focus yields distinct images. Effective problem-framing is similar: Looking at a problem from a variety of perspectives lets you uncover new insights and generate fresh ideas.

As with all essential processes, it helps to have a methodology and a road map. This article introduces the E5 approach to problem-framing—expand, examine, empathize, elevate, and envision—and offers tools that enable leaders to fully explore the problem space.

Phase 1: Expand

In the first phase, set aside preconceptions and open your mind. We recommend using a tool called frame-storming, which encourages a comprehensive exploration of an issue and its nuances. It is a neglected precursor to brainstorming, which typically focuses on generating many different answers for an already framed challenge. Frame-storming helps teams identify assumptions and blind spots, mitigating the risk of pursuing inadequate or biased solutions. The goal is to spark innovation and creativity as people dig into—or as Tina Seelig from Stanford puts it, “fall in love with”—the problem.

Begin by assembling a diverse team, encompassing a variety of types of expertise and perspectives. Involving outsiders can be helpful, since they’re often coming to the issue cold. A good way to prompt the team to consider alternative scenarios is by asking “What if…?” and “How might we…?” questions. For example, ask your team, “What if we had access to unlimited resources to tackle this issue?” or “How might better collaboration between departments or teams help us tackle this issue?” The primary objective is to generate many alternative problem frames, allowing for a more holistic understanding of the issue. Within an open, nonjudgmental atmosphere, you deliberately challenge established thinking—what we call “breaking” the frame.

It may be easy to eliminate some possibilities, and that’s exactly what you should do. Rather than make assumptions, generate alternative hypotheses and then test them.

Consider the problem-framing process at a company we’ll call Omega Soundscapes, a midsize producer of high-end headphones. (Omega is a composite of several firms we’ve worked with.) Omega’s sales had declined substantially over the past two quarters, and the leadership team’s initial diagnosis, or reference frame, was that recent price hikes to its flagship product made it too expensive for its target market. Before acting on this assumption, the team convened knowledgeable representatives from sales, marketing, R&D, customer service, and external consultants to do some frame-storming. Team members were asked:

  • What if we lowered the price of our flagship product? How would that impact sales and profitability?
  • How might we identify customers in new target markets who could afford our headphones at the current price?
  • What if we offered financing or a subscription-based model for our headphones? How would that change perceptions of affordability?
  • How might we optimize our supply chain and production processes to reduce manufacturing costs without compromising quality?

In playing out each of those scenarios, the Omega team generated several problem frames:

  • The target market’s preferences have evolved.
  • New competitors have entered the market.
  • Product quality has decreased.
  • Something has damaged perceptions of the brand.
  • Something has changed in the priorities of our key distributors.

Each of the frames presented a unique angle from which to approach the problem of declining sales, setting the stage for the development of diverse potential solutions. At this stage, it may be relatively easy to eliminate some possibilities, and that’s exactly what you should do. Rather than make assumptions, generate alternative hypotheses and then test them.

Open Your Mind. Whereas brainstorming often involves generating many solutions for an already framed problem, frame-storming encourages teams to identify all aspects of a challenge. This graphic shows two diagrams. The first depicts brainstorming, where a single problem bubble leads to multiple solution bubbles. The second diagram depicts frame-storming, where a single problem bubble leads to multiple bubbles, labeled alternative problem frames, that represent different ways of defining the problem itself.

See more HBR charts in Data & Visuals

Phase 2: Examine

If the expand phase is about identifying all the facets of a problem, this one is about diving deep to identify root causes. The team investigates the issue thoroughly, peeling back the layers to understand underlying drivers and systemic contributors.

A useful tool for doing this is the iceberg model, which guides the team through layers of causation: surface-level events, the behavioral patterns that drive them, underlying systematic structures, and established mental models. As you probe ever deeper and document your findings, you begin to home in on the problem’s root causes. As is the case in the expand phase, open discussions and collaborative research are crucial for achieving a comprehensive analysis.

Let’s return to our Omega Soundscapes example and use the iceberg model to delve into the issues surrounding the two quarters of declining sales. Starting with the first layer beneath the surface, the behavioral pattern, the team diligently analyzed customer feedback. It discovered a significant drop in brand loyalty. This finding validated the problem frame of a “shifting brand perception,” prompting further investigation into what might have been causing it.

business problem solving skills

Phase 3: Empathize

In this phase, the focus is on the stakeholders—employees, customers, clients, investors, supply chain partners, and other parties—who are most central to and affected by the problem under investigation. The core objective is to understand how they perceive the issue: what they think and feel, how they’re acting, and what they want.

First list all the people who are directly or indirectly relevant to the problem. It may be helpful to create a visual representation of the network of relationships in the ecosystem. Prioritize the stakeholders according to their level of influence on and interest in the problem, and focus on understanding the roles, demographics, behavior patterns, motivations, and goals of the most important ones.

Now create empathy maps for those critical stakeholders. Make a template divided into four sections: Say, Think, Feel, and Do. Conduct interviews or surveys to gather authentic data. How do various users explain the problem? How do they think about the issue, and how do their beliefs inform that thinking? What emotions are they feeling and expressing? How are they behaving? Populate each section of the map with notes based on your observations and interactions. Finally, analyze the completed empathy maps. Look for pain points, inconsistencies, and patterns in stakeholder perspectives.

Returning to the Omega case study, the team identified its ecosystem of stakeholders: customers (both current and potential); retail partners and distributors; the R&D, marketing, and sales teams; suppliers of headphone components; investors and shareholders; and new and existing competitors. They narrowed the list to a few key stakeholders related to the declining-sales problem: customers, retail partners, and investors/shareholders; Omega created empathy maps for representatives from each.

Here’s what the empathy maps showed about what the stakeholders were saying, thinking, feeling, and doing:

Sarah, the customer, complained on social media about the high price of her favorite headphones. Dave, the retailer, expressed concerns about unsold inventory and the challenge of convincing customers to buy the expensive headphones. Alex, the shareholder, brought up Omega’s declining financial performance during its annual investor day.

Sarah thought that Omega was losing touch with its loyal customer base. Dave was considering whether to continue carrying Omega’s products in his store or explore other brands. Alex was contemplating diversifying his portfolio into other consumer-tech companies.

As a longtime supporter of the brand, Sarah felt frustrated and slightly betrayed. Dave was feeling anxious about the drop in sales and the impact on his store’s profitability. Alex was unhappy with the declining stock value.

Sarah was looking for alternatives to the headphones, even though she loves the product’s quality. Dave was scheduling a call with Omega to negotiate pricing and terms. Alex was planning to attend Omega’s next shareholder meeting to find out more information from the leadership team.

When Omega leaders analyzed the data in the maps, they realized that pricing wasn’t the only reason for declining sales. A more profound issue was customers’ dissatisfaction with the perceived price-to-quality ratio, especially when compared with competitors’ offerings. That insight prompted the team to consider enhancing the headphones with additional features, offering more-affordable alternatives, and possibly switching to a service model.

Engage with Stakeholders. Create an empathy map and conduct interviews and surveys to gather data to populate each section. This diagram shows a person in the center representing various types of stakeholders, with four questions companies should ask: What do stakeholders think? What do they do? What do they say? And what do they feel?

Phase 4: Elevate

This phase involves exploring how the problem connects to broader organizational issues. It’s like zooming out on a map to understand where a city lies in relation to the whole country or continent. This bird’s-eye view reveals interconnected issues and their implications.

For this analysis, we recommend the four-frame model developed by Lee Bolman and Terrence Deal, which offers distinct lenses through which to view the problem at a higher level. The structural frame helps you explore formal structures (such as hierarchy and reporting relationships); processes (such as workflow); and systems, rules, and policies. This frame examines efficiency, coordination, and alignment of activities.

The human resources frame focuses on people, relationships, and social dynamics. This includes teamwork, leadership, employee motivation, engagement, professional development, and personal growth. In this frame, the organization is seen as a community or a family that recognizes that talent is its most valuable asset. The political frame delves into power dynamics, competing interests, conflicts, coalitions, and negotiations. From this perspective, organizations are arenas where various stakeholders vie for resources and engage in political struggles to influence decisions. It helps you see how power is distributed, used, and contested.

The symbolic frame highlights the importance of symbols, rituals, stories, and shared values in shaping group identity and culture. In it, organizations are depicted as theaters through which its members make meaning.

Using this model, the Omega team generated the following insights in the four frames:

Structural.

A deeper look into the company’s structure revealed siloing and a lack of coordination between the R&D and marketing departments, which had led to misaligned messaging to customers. It also highlighted a lack of collaboration between the two functions and pointed to the need to communicate with the target market about the product’s features and benefits in a coherent and compelling way.

Human resources.

This frame revealed that the declining sales and price hikes had ramped up pressure on the sales team, damaging morale. The demotivated team was struggling to effectively promote the product, making it harder to recover from declining sales. Omega realized it was lacking adequate support, training, and incentives for the team.

The key insight from this frame was that the finance team’s reluctance to approve promotions in the sales group to maintain margins was exacerbating the morale problem. Omega understood that investing in sales leadership development while still generating profits was crucial for long-term success and that frank discussions about the issue were needed.

This frame highlighted an important misalignment in perception: The company believed that its headphones were of “top quality,” while customers reported in surveys that they were “overpriced.” This divergence raised alarm that branding, marketing, and pricing strategies, which were all predicated on the central corporate value of superior quality, were no longer resonating with customers. Omega realized that it had been paying too little attention to quality assurance and functionality.

Adjust Your Vantage Point. Explore the broader organizational issues that factor into the problem, using four distinct frames. This diagram shows four quadrants: the first is political, including power dynamics, competing interests, and coalitions. The second is interpersonal, including people and relationships. The third is structural, including coordination and alignment of activities, and the fourth is symbolic, including group identity and culture.

Phase 5: Envision

In this phase, you transition from framing the problem to actively imagining and designing solutions. This involves synthesizing the insights gained from earlier phases and crafting a shared vision of the desired future state.

Here we recommend using a technique known as backcasting. First, clearly define your desired goal. For example, a team struggling with missed deadlines and declining productivity might aim to achieve on-time completion rates of 98% for its projects and increase its volume of projects by 5% over the next year. Next, reverse engineer the path to achieving your goal. Outline key milestones required over both the short term and the long term. For each one, pinpoint specific interventions, strategies, and initiatives that will propel you closer to your goal. These may encompass changes in processes, policies, technologies, and behaviors. Synthesize the activities into a sequenced, chronological, prioritized road map or action plan, and allocate the resources, including time, budget, and personnel, necessary to implement your plan. Finally, monitor progress toward your goal and be prepared to adjust the plan in response to outcomes, feedback, or changing circumstances. This approach ensures that the team’s efforts in implementing the insights from the previous phases are strategically and purposefully directed toward a concrete destination.

business problem solving skills

Applying the Approach

Albert Einstein once said, “If I had one hour to solve a problem, I would spend 55 minutes thinking about the problem and five minutes thinking about the solution.” That philosophy underpins our E5 framework, which provides a structured approach for conscientiously engaging with complex problems before leaping to solutions.

As teams use the methodology, they must understand that problem-framing in today’s intricate business landscape is rarely a linear process. While we’re attempting to provide a structured path, we also recognize the dynamic nature of problems and the need for adaptability. Invariably, as teams begin to implement solutions, new facets of a problem may come to light, unforeseen challenges may arise, or external circumstances may evolve. Your team should be ready to loop back to previous phases—for instance, revisiting the expand phase to reassess the problem’s frame, delving deeper into an overlooked root cause in another examine phase, or gathering fresh insights from stakeholders in a new empathize phase. Ultimately, the E5 framework is intended to foster a culture of continuous improvement and innovation.

  • JB Julia Binder is the director of the Center for Sustainable and Inclusive Business and a professor of sustainable innovation at IMD.
  • Michael D. Watkins is a professor of leadership and organizational change at IMD , a cofounder of Genesis Advisers , and the author of The Six Disciplines of Strategic Thinking .

business problem solving skills

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Purdue University

Effective Problem-Solving Techniques in Business

A business team discusses a problem in a conference room

January 20, 2023

Purdue Online

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

Dr. Amy David , clinical associate professor of management for supply chain and operations management, spoke about business problem-solving methods and how the Purdue University Online MBA program prepares students to be business decision-makers.

Why Are Problem-Solving Skills Essential in Leadership Roles?

Every business will face challenges at some point. Those that are successful will have people in place who can identify and solve problems before the damage is done.

“The business world is constantly changing, and companies need to be able to adapt well in order to produce good results and meet the needs of their customers,” David says. “They also need to keep in mind the triple bottom line of ‘people, profit and planet.’ And these priorities are constantly evolving.”

To that end, David says people in management or leadership need to be able to handle new situations, something that may be outside the scope of their everyday work.

“The name of the game these days is change—and the speed of change—and that means solving new problems on a daily basis,” she says.

The pace of information and technology has also empowered the customer in a new way that provides challenges—or opportunities—for businesses to respond.

“Our customers have a lot more information and a lot more power,” she says. “If you think about somebody having an unhappy experience and tweeting about it, that’s very different from maybe 15 years ago. Back then, if you had a bad experience with a product, you might grumble about it to one or two people.”

David says that this reality changes how quickly organizations need to react and respond to their customers. And taking prompt and decisive action requires solid problem-solving skills.

What Are Some of the Most Effective Problem-Solving Methods?

David says there are a few things to consider when encountering a challenge in business.

“When faced with a problem, are we talking about something that is broad and affects a lot of people? Or is it something that affects a select few? Depending on the issue and situation, you’ll need to use different types of problem-solving strategies,” she says.

Using Techniques

There are a number of techniques that businesses use to problem solve. These can include:

  • Five Whys : This approach is helpful when the problem at hand is clear but the underlying causes are less so. By asking “Why?” five times, the final answer should get at the potential root of the problem and perhaps yield a solution.
  • Gap Analysis : Companies use gap analyses to compare current performance with expected or desired performance, which will help a company determine how to use its resources differently or adjust expectations.
  • Gemba Walk : The name, which is derived from a Japanese word meaning “the real place,” refers to a commonly used technique that allows managers to see what works (and what doesn’t) from the ground up. This is an opportunity for managers to focus on the fundamental elements of the process, identify where the value stream is and determine areas that could use improvement.
  • Porter’s Five Forces : Developed by Harvard Business School professor Michael E. Porter, applying the Five Forces is a way for companies to identify competitors for their business or services, and determine how the organization can adjust to stay ahead of the game.
  • Six Thinking Hats : In his book of the same name, Dr. Edward de Bono details this method that encourages parallel thinking and attempting to solve a problem by trying on different “thinking hats.” Each color hat signifies a different approach that can be utilized in the problem-solving process, ranging from logic to feelings to creativity and beyond. This method allows organizations to view problems from different angles and perspectives.
  • SWOT Analysis : This common strategic planning and management tool helps businesses identify strengths, weaknesses, opportunities and threats (SWOT).

“We have a lot of these different tools,” David says. “Which one to use when is going to be dependent on the problem itself, the level of the stakeholders, the number of different stakeholder groups and so on.”

Each of the techniques outlined above uses the same core steps of problem solving:

  • Identify and define the problem
  • Consider possible solutions
  • Evaluate options
  • Choose the best solution
  • Implement the solution
  • Evaluate the outcome

Data drives a lot of daily decisions in business and beyond. Analytics have also been deployed to problem solve.

“We have specific classes around storytelling with data and how you convince your audience to understand what the data is,” David says. “Your audience has to trust the data, and only then can you use it for real decision-making.”

Data can be a powerful tool for identifying larger trends and making informed decisions when it’s clearly understood and communicated. It’s also vital for performance monitoring and optimization.

How Is Problem Solving Prioritized in Purdue’s Online MBA?

The courses in the Purdue Online MBA program teach problem-solving methods to students, keeping them up to date with the latest techniques and allowing them to apply their knowledge to business-related scenarios.

“I can give you a model or a tool, but most of the time, a real-world situation is going to be a lot messier and more valuable than what we’ve seen in a textbook,” David says. “Asking students to take what they know and apply it to a case where there’s not one single correct answer is a big part of the learning experience.”

Make Your Own Decision to Further Your Career

An online MBA from Purdue University can help advance your career by teaching you problem-solving skills, decision-making strategies and more. Reach out today to learn more about earning an online MBA with Purdue University .

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How to improve your problem solving skills and build effective problem solving strategies

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Effective problem solving is all about using the right process and following a plan tailored to the issue at hand. Recognizing your team or organization has an issue isn’t enough to come up with effective problem solving strategies. 

To truly understand a problem and develop appropriate solutions, you will want to follow a solid process, follow the necessary problem solving steps, and bring all of your problem solving skills to the table.  

We’ll first guide you through the seven step problem solving process you and your team can use to effectively solve complex business challenges. We’ll also look at what problem solving strategies you can employ with your team when looking for a way to approach the process. We’ll then discuss the problem solving skills you need to be more effective at solving problems, complete with an activity from the SessionLab library you can use to develop that skill in your team.

Let’s get to it! 

What is a problem solving process?

  • What are the problem solving steps I need to follow?

Problem solving strategies

What skills do i need to be an effective problem solver, how can i improve my problem solving skills.

Solving problems is like baking a cake. You can go straight into the kitchen without a recipe or the right ingredients and do your best, but the end result is unlikely to be very tasty!

Using a process to bake a cake allows you to use the best ingredients without waste, collect the right tools, account for allergies, decide whether it is a birthday or wedding cake, and then bake efficiently and on time. The result is a better cake that is fit for purpose, tastes better and has created less mess in the kitchen. Also, it should have chocolate sprinkles. Having a step by step process to solve organizational problems allows you to go through each stage methodically and ensure you are trying to solve the right problems and select the most appropriate, effective solutions.

What are the problem solving steps I need to follow? 

All problem solving processes go through a number of steps in order to move from identifying a problem to resolving it.

Depending on your problem solving model and who you ask, there can be anything between four and nine problem solving steps you should follow in order to find the right solution. Whatever framework you and your group use, there are some key items that should be addressed in order to have an effective process.

We’ve looked at problem solving processes from sources such as the American Society for Quality and their four step approach , and Mediate ‘s six step process. By reflecting on those and our own problem solving processes, we’ve come up with a sequence of seven problem solving steps we feel best covers everything you need in order to effectively solve problems.

seven step problem solving process

1. Problem identification 

The first stage of any problem solving process is to identify the problem or problems you might want to solve. Effective problem solving strategies always begin by allowing a group scope to articulate what they believe the problem to be and then coming to some consensus over which problem they approach first. Problem solving activities used at this stage often have a focus on creating frank, open discussion so that potential problems can be brought to the surface.

2. Problem analysis 

Though this step is not a million miles from problem identification, problem analysis deserves to be considered separately. It can often be an overlooked part of the process and is instrumental when it comes to developing effective solutions.

The process of problem analysis means ensuring that the problem you are seeking to solve is the right problem . As part of this stage, you may look deeper and try to find the root cause of a specific problem at a team or organizational level.

Remember that problem solving strategies should not only be focused on putting out fires in the short term but developing long term solutions that deal with the root cause of organizational challenges. 

Whatever your approach, analyzing a problem is crucial in being able to select an appropriate solution and the problem solving skills deployed in this stage are beneficial for the rest of the process and ensuring the solutions you create are fit for purpose.

3. Solution generation

Once your group has nailed down the particulars of the problem you wish to solve, you want to encourage a free flow of ideas connecting to solving that problem. This can take the form of problem solving games that encourage creative thinking or problem solving activities designed to produce working prototypes of possible solutions. 

The key to ensuring the success of this stage of the problem solving process is to encourage quick, creative thinking and create an open space where all ideas are considered. The best solutions can come from unlikely places and by using problem solving techniques that celebrate invention, you might come up with solution gold. 

4. Solution development

No solution is likely to be perfect right out of the gate. It’s important to discuss and develop the solutions your group has come up with over the course of following the previous problem solving steps in order to arrive at the best possible solution. Problem solving games used in this stage involve lots of critical thinking, measuring potential effort and impact, and looking at possible solutions analytically. 

During this stage, you will often ask your team to iterate and improve upon your frontrunning solutions and develop them further. Remember that problem solving strategies always benefit from a multitude of voices and opinions, and not to let ego get involved when it comes to choosing which solutions to develop and take further.

Finding the best solution is the goal of all problem solving workshops and here is the place to ensure that your solution is well thought out, sufficiently robust and fit for purpose. 

5. Decision making 

Nearly there! Once your group has reached consensus and selected a solution that applies to the problem at hand you have some decisions to make. You will want to work on allocating ownership of the project, figure out who will do what, how the success of the solution will be measured and decide the next course of action.

The decision making stage is a part of the problem solving process that can get missed or taken as for granted. Fail to properly allocate roles and plan out how a solution will actually be implemented and it less likely to be successful in solving the problem.

Have clear accountabilities, actions, timeframes, and follow-ups. Make these decisions and set clear next-steps in the problem solving workshop so that everyone is aligned and you can move forward effectively as a group. 

Ensuring that you plan for the roll-out of a solution is one of the most important problem solving steps. Without adequate planning or oversight, it can prove impossible to measure success or iterate further if the problem was not solved. 

6. Solution implementation 

This is what we were waiting for! All problem solving strategies have the end goal of implementing a solution and solving a problem in mind. 

Remember that in order for any solution to be successful, you need to help your group through all of the previous problem solving steps thoughtfully. Only then can you ensure that you are solving the right problem but also that you have developed the correct solution and can then successfully implement and measure the impact of that solution.

Project management and communication skills are key here – your solution may need to adjust when out in the wild or you might discover new challenges along the way.

7. Solution evaluation 

So you and your team developed a great solution to a problem and have a gut feeling its been solved. Work done, right? Wrong. All problem solving strategies benefit from evaluation, consideration, and feedback. You might find that the solution does not work for everyone, might create new problems, or is potentially so successful that you will want to roll it out to larger teams or as part of other initiatives. 

None of that is possible without taking the time to evaluate the success of the solution you developed in your problem solving model and adjust if necessary.

Remember that the problem solving process is often iterative and it can be common to not solve complex issues on the first try. Even when this is the case, you and your team will have generated learning that will be important for future problem solving workshops or in other parts of the organization. 

It’s worth underlining how important record keeping is throughout the problem solving process. If a solution didn’t work, you need to have the data and records to see why that was the case. If you go back to the drawing board, notes from the previous workshop can help save time. Data and insight is invaluable at every stage of the problem solving process and this one is no different.

Problem solving workshops made easy

business problem solving skills

Problem solving strategies are methods of approaching and facilitating the process of problem-solving with a set of techniques , actions, and processes. Different strategies are more effective if you are trying to solve broad problems such as achieving higher growth versus more focused problems like, how do we improve our customer onboarding process?

Broadly, the problem solving steps outlined above should be included in any problem solving strategy though choosing where to focus your time and what approaches should be taken is where they begin to differ. You might find that some strategies ask for the problem identification to be done prior to the session or that everything happens in the course of a one day workshop.

The key similarity is that all good problem solving strategies are structured and designed. Four hours of open discussion is never going to be as productive as a four-hour workshop designed to lead a group through a problem solving process.

Good problem solving strategies are tailored to the team, organization and problem you will be attempting to solve. Here are some example problem solving strategies you can learn from or use to get started.

Use a workshop to lead a team through a group process

Often, the first step to solving problems or organizational challenges is bringing a group together effectively. Most teams have the tools, knowledge, and expertise necessary to solve their challenges – they just need some guidance in how to use leverage those skills and a structure and format that allows people to focus their energies.

Facilitated workshops are one of the most effective ways of solving problems of any scale. By designing and planning your workshop carefully, you can tailor the approach and scope to best fit the needs of your team and organization. 

Problem solving workshop

  • Creating a bespoke, tailored process
  • Tackling problems of any size
  • Building in-house workshop ability and encouraging their use

Workshops are an effective strategy for solving problems. By using tried and test facilitation techniques and methods, you can design and deliver a workshop that is perfectly suited to the unique variables of your organization. You may only have the capacity for a half-day workshop and so need a problem solving process to match. 

By using our session planner tool and importing methods from our library of 700+ facilitation techniques, you can create the right problem solving workshop for your team. It might be that you want to encourage creative thinking or look at things from a new angle to unblock your groups approach to problem solving. By tailoring your workshop design to the purpose, you can help ensure great results.

One of the main benefits of a workshop is the structured approach to problem solving. Not only does this mean that the workshop itself will be successful, but many of the methods and techniques will help your team improve their working processes outside of the workshop. 

We believe that workshops are one of the best tools you can use to improve the way your team works together. Start with a problem solving workshop and then see what team building, culture or design workshops can do for your organization!

Run a design sprint

Great for: 

  • aligning large, multi-discipline teams
  • quickly designing and testing solutions
  • tackling large, complex organizational challenges and breaking them down into smaller tasks

By using design thinking principles and methods, a design sprint is a great way of identifying, prioritizing and prototyping solutions to long term challenges that can help solve major organizational problems with quick action and measurable results.

Some familiarity with design thinking is useful, though not integral, and this strategy can really help a team align if there is some discussion around which problems should be approached first. 

The stage-based structure of the design sprint is also very useful for teams new to design thinking.  The inspiration phase, where you look to competitors that have solved your problem, and the rapid prototyping and testing phases are great for introducing new concepts that will benefit a team in all their future work. 

It can be common for teams to look inward for solutions and so looking to the market for solutions you can iterate on can be very productive. Instilling an agile prototyping and testing mindset can also be great when helping teams move forwards – generating and testing solutions quickly can help save time in the long run and is also pretty exciting!

Break problems down into smaller issues

Organizational challenges and problems are often complicated and large scale in nature. Sometimes, trying to resolve such an issue in one swoop is simply unachievable or overwhelming. Try breaking down such problems into smaller issues that you can work on step by step. You may not be able to solve the problem of churning customers off the bat, but you can work with your team to identify smaller effort but high impact elements and work on those first.

This problem solving strategy can help a team generate momentum, prioritize and get some easy wins. It’s also a great strategy to employ with teams who are just beginning to learn how to approach the problem solving process. If you want some insight into a way to employ this strategy, we recommend looking at our design sprint template below!

Use guiding frameworks or try new methodologies

Some problems are best solved by introducing a major shift in perspective or by using new methodologies that encourage your team to think differently.

Props and tools such as Methodkit , which uses a card-based toolkit for facilitation, or Lego Serious Play can be great ways to engage your team and find an inclusive, democratic problem solving strategy. Remember that play and creativity are great tools for achieving change and whatever the challenge, engaging your participants can be very effective where other strategies may have failed.

LEGO Serious Play

  • Improving core problem solving skills
  • Thinking outside of the box
  • Encouraging creative solutions

LEGO Serious Play is a problem solving methodology designed to get participants thinking differently by using 3D models and kinesthetic learning styles. By physically building LEGO models based on questions and exercises, participants are encouraged to think outside of the box and create their own responses. 

Collaborate LEGO Serious Play exercises are also used to encourage communication and build problem solving skills in a group. By using this problem solving process, you can often help different kinds of learners and personality types contribute and unblock organizational problems with creative thinking. 

Problem solving strategies like LEGO Serious Play are super effective at helping a team solve more skills-based problems such as communication between teams or a lack of creative thinking. Some problems are not suited to LEGO Serious Play and require a different problem solving strategy.

Card Decks and Method Kits

  • New facilitators or non-facilitators 
  • Approaching difficult subjects with a simple, creative framework
  • Engaging those with varied learning styles

Card decks and method kids are great tools for those new to facilitation or for whom facilitation is not the primary role. Card decks such as the emotional culture deck can be used for complete workshops and in many cases, can be used right out of the box. Methodkit has a variety of kits designed for scenarios ranging from personal development through to personas and global challenges so you can find the right deck for your particular needs.

Having an easy to use framework that encourages creativity or a new approach can take some of the friction or planning difficulties out of the workshop process and energize a team in any setting. Simplicity is the key with these methods. By ensuring everyone on your team can get involved and engage with the process as quickly as possible can really contribute to the success of your problem solving strategy.

Source external advice

Looking to peers, experts and external facilitators can be a great way of approaching the problem solving process. Your team may not have the necessary expertise, insights of experience to tackle some issues, or you might simply benefit from a fresh perspective. Some problems may require bringing together an entire team, and coaching managers or team members individually might be the right approach. Remember that not all problems are best resolved in the same manner.

If you’re a solo entrepreneur, peer groups, coaches and mentors can also be invaluable at not only solving specific business problems, but in providing a support network for resolving future challenges. One great approach is to join a Mastermind Group and link up with like-minded individuals and all grow together. Remember that however you approach the sourcing of external advice, do so thoughtfully, respectfully and honestly. Reciprocate where you can and prepare to be surprised by just how kind and helpful your peers can be!

Mastermind Group

  • Solo entrepreneurs or small teams with low capacity
  • Peer learning and gaining outside expertise
  • Getting multiple external points of view quickly

Problem solving in large organizations with lots of skilled team members is one thing, but how about if you work for yourself or in a very small team without the capacity to get the most from a design sprint or LEGO Serious Play session? 

A mastermind group – sometimes known as a peer advisory board – is where a group of people come together to support one another in their own goals, challenges, and businesses. Each participant comes to the group with their own purpose and the other members of the group will help them create solutions, brainstorm ideas, and support one another. 

Mastermind groups are very effective in creating an energized, supportive atmosphere that can deliver meaningful results. Learning from peers from outside of your organization or industry can really help unlock new ways of thinking and drive growth. Access to the experience and skills of your peers can be invaluable in helping fill the gaps in your own ability, particularly in young companies.

A mastermind group is a great solution for solo entrepreneurs, small teams, or for organizations that feel that external expertise or fresh perspectives will be beneficial for them. It is worth noting that Mastermind groups are often only as good as the participants and what they can bring to the group. Participants need to be committed, engaged and understand how to work in this context. 

Coaching and mentoring

  • Focused learning and development
  • Filling skills gaps
  • Working on a range of challenges over time

Receiving advice from a business coach or building a mentor/mentee relationship can be an effective way of resolving certain challenges. The one-to-one format of most coaching and mentor relationships can really help solve the challenges those individuals are having and benefit the organization as a result.

A great mentor can be invaluable when it comes to spotting potential problems before they arise and coming to understand a mentee very well has a host of other business benefits. You might run an internal mentorship program to help develop your team’s problem solving skills and strategies or as part of a large learning and development program. External coaches can also be an important part of your problem solving strategy, filling skills gaps for your management team or helping with specific business issues. 

Now we’ve explored the problem solving process and the steps you will want to go through in order to have an effective session, let’s look at the skills you and your team need to be more effective problem solvers.

Problem solving skills are highly sought after, whatever industry or team you work in. Organizations are keen to employ people who are able to approach problems thoughtfully and find strong, realistic solutions. Whether you are a facilitator , a team leader or a developer, being an effective problem solver is a skill you’ll want to develop.

Problem solving skills form a whole suite of techniques and approaches that an individual uses to not only identify problems but to discuss them productively before then developing appropriate solutions.

Here are some of the most important problem solving skills everyone from executives to junior staff members should learn. We’ve also included an activity or exercise from the SessionLab library that can help you and your team develop that skill. 

If you’re running a workshop or training session to try and improve problem solving skills in your team, try using these methods to supercharge your process!

Problem solving skills checklist

Active listening

Active listening is one of the most important skills anyone who works with people can possess. In short, active listening is a technique used to not only better understand what is being said by an individual, but also to be more aware of the underlying message the speaker is trying to convey. When it comes to problem solving, active listening is integral for understanding the position of every participant and to clarify the challenges, ideas and solutions they bring to the table.

Some active listening skills include:

  • Paying complete attention to the speaker.
  • Removing distractions.
  • Avoid interruption.
  • Taking the time to fully understand before preparing a rebuttal.
  • Responding respectfully and appropriately.
  • Demonstrate attentiveness and positivity with an open posture, making eye contact with the speaker, smiling and nodding if appropriate. Show that you are listening and encourage them to continue.
  • Be aware of and respectful of feelings. Judge the situation and respond appropriately. You can disagree without being disrespectful.   
  • Observe body language. 
  • Paraphrase what was said in your own words, either mentally or verbally.
  • Remain neutral. 
  • Reflect and take a moment before responding.
  • Ask deeper questions based on what is said and clarify points where necessary.   
Active Listening   #hyperisland   #skills   #active listening   #remote-friendly   This activity supports participants to reflect on a question and generate their own solutions using simple principles of active listening and peer coaching. It’s an excellent introduction to active listening but can also be used with groups that are already familiar with it. Participants work in groups of three and take turns being: “the subject”, the listener, and the observer.

Analytical skills

All problem solving models require strong analytical skills, particularly during the beginning of the process and when it comes to analyzing how solutions have performed.

Analytical skills are primarily focused on performing an effective analysis by collecting, studying and parsing data related to a problem or opportunity. 

It often involves spotting patterns, being able to see things from different perspectives and using observable facts and data to make suggestions or produce insight. 

Analytical skills are also important at every stage of the problem solving process and by having these skills, you can ensure that any ideas or solutions you create or backed up analytically and have been sufficiently thought out.

Nine Whys   #innovation   #issue analysis   #liberating structures   With breathtaking simplicity, you can rapidly clarify for individuals and a group what is essentially important in their work. You can quickly reveal when a compelling purpose is missing in a gathering and avoid moving forward without clarity. When a group discovers an unambiguous shared purpose, more freedom and more responsibility are unleashed. You have laid the foundation for spreading and scaling innovations with fidelity.

Collaboration

Trying to solve problems on your own is difficult. Being able to collaborate effectively, with a free exchange of ideas, to delegate and be a productive member of a team is hugely important to all problem solving strategies.

Remember that whatever your role, collaboration is integral, and in a problem solving process, you are all working together to find the best solution for everyone. 

Marshmallow challenge with debriefing   #teamwork   #team   #leadership   #collaboration   In eighteen minutes, teams must build the tallest free-standing structure out of 20 sticks of spaghetti, one yard of tape, one yard of string, and one marshmallow. The marshmallow needs to be on top. The Marshmallow Challenge was developed by Tom Wujec, who has done the activity with hundreds of groups around the world. Visit the Marshmallow Challenge website for more information. This version has an extra debriefing question added with sample questions focusing on roles within the team.

Communication  

Being an effective communicator means being empathetic, clear and succinct, asking the right questions, and demonstrating active listening skills throughout any discussion or meeting. 

In a problem solving setting, you need to communicate well in order to progress through each stage of the process effectively. As a team leader, it may also fall to you to facilitate communication between parties who may not see eye to eye. Effective communication also means helping others to express themselves and be heard in a group.

Bus Trip   #feedback   #communication   #appreciation   #closing   #thiagi   #team   This is one of my favourite feedback games. I use Bus Trip at the end of a training session or a meeting, and I use it all the time. The game creates a massive amount of energy with lots of smiles, laughs, and sometimes even a teardrop or two.

Creative problem solving skills can be some of the best tools in your arsenal. Thinking creatively, being able to generate lots of ideas and come up with out of the box solutions is useful at every step of the process. 

The kinds of problems you will likely discuss in a problem solving workshop are often difficult to solve, and by approaching things in a fresh, creative manner, you can often create more innovative solutions.

Having practical creative skills is also a boon when it comes to problem solving. If you can help create quality design sketches and prototypes in record time, it can help bring a team to alignment more quickly or provide a base for further iteration.

The paper clip method   #sharing   #creativity   #warm up   #idea generation   #brainstorming   The power of brainstorming. A training for project leaders, creativity training, and to catalyse getting new solutions.

Critical thinking

Critical thinking is one of the fundamental problem solving skills you’ll want to develop when working on developing solutions. Critical thinking is the ability to analyze, rationalize and evaluate while being aware of personal bias, outlying factors and remaining open-minded.

Defining and analyzing problems without deploying critical thinking skills can mean you and your team go down the wrong path. Developing solutions to complex issues requires critical thinking too – ensuring your team considers all possibilities and rationally evaluating them. 

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

Data analysis 

Though it shares lots of space with general analytical skills, data analysis skills are something you want to cultivate in their own right in order to be an effective problem solver.

Being good at data analysis doesn’t just mean being able to find insights from data, but also selecting the appropriate data for a given issue, interpreting it effectively and knowing how to model and present that data. Depending on the problem at hand, it might also include a working knowledge of specific data analysis tools and procedures. 

Having a solid grasp of data analysis techniques is useful if you’re leading a problem solving workshop but if you’re not an expert, don’t worry. Bring people into the group who has this skill set and help your team be more effective as a result.

Decision making

All problems need a solution and all solutions require that someone make the decision to implement them. Without strong decision making skills, teams can become bogged down in discussion and less effective as a result. 

Making decisions is a key part of the problem solving process. It’s important to remember that decision making is not restricted to the leadership team. Every staff member makes decisions every day and developing these skills ensures that your team is able to solve problems at any scale. Remember that making decisions does not mean leaping to the first solution but weighing up the options and coming to an informed, well thought out solution to any given problem that works for the whole team.

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

Dependability

Most complex organizational problems require multiple people to be involved in delivering the solution. Ensuring that the team and organization can depend on you to take the necessary actions and communicate where necessary is key to ensuring problems are solved effectively.

Being dependable also means working to deadlines and to brief. It is often a matter of creating trust in a team so that everyone can depend on one another to complete the agreed actions in the agreed time frame so that the team can move forward together. Being undependable can create problems of friction and can limit the effectiveness of your solutions so be sure to bear this in mind throughout a project. 

Team Purpose & Culture   #team   #hyperisland   #culture   #remote-friendly   This is an essential process designed to help teams define their purpose (why they exist) and their culture (how they work together to achieve that purpose). Defining these two things will help any team to be more focused and aligned. With support of tangible examples from other companies, the team members work as individuals and a group to codify the way they work together. The goal is a visual manifestation of both the purpose and culture that can be put up in the team’s work space.

Emotional intelligence

Emotional intelligence is an important skill for any successful team member, whether communicating internally or with clients or users. In the problem solving process, emotional intelligence means being attuned to how people are feeling and thinking, communicating effectively and being self-aware of what you bring to a room. 

There are often differences of opinion when working through problem solving processes, and it can be easy to let things become impassioned or combative. Developing your emotional intelligence means being empathetic to your colleagues and managing your own emotions throughout the problem and solution process. Be kind, be thoughtful and put your points across care and attention. 

Being emotionally intelligent is a skill for life and by deploying it at work, you can not only work efficiently but empathetically. Check out the emotional culture workshop template for more!

Facilitation

As we’ve clarified in our facilitation skills post, facilitation is the art of leading people through processes towards agreed-upon objectives in a manner that encourages participation, ownership, and creativity by all those involved. While facilitation is a set of interrelated skills in itself, the broad definition of facilitation can be invaluable when it comes to problem solving. Leading a team through a problem solving process is made more effective if you improve and utilize facilitation skills – whether you’re a manager, team leader or external stakeholder.

The Six Thinking Hats   #creative thinking   #meeting facilitation   #problem solving   #issue resolution   #idea generation   #conflict resolution   The Six Thinking Hats are used by individuals and groups to separate out conflicting styles of thinking. They enable and encourage a group of people to think constructively together in exploring and implementing change, rather than using argument to fight over who is right and who is wrong.

Flexibility 

Being flexible is a vital skill when it comes to problem solving. This does not mean immediately bowing to pressure or changing your opinion quickly: instead, being flexible is all about seeing things from new perspectives, receiving new information and factoring it into your thought process.

Flexibility is also important when it comes to rolling out solutions. It might be that other organizational projects have greater priority or require the same resources as your chosen solution. Being flexible means understanding needs and challenges across the team and being open to shifting or arranging your own schedule as necessary. Again, this does not mean immediately making way for other projects. It’s about articulating your own needs, understanding the needs of others and being able to come to a meaningful compromise.

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

Working in any group can lead to unconscious elements of groupthink or situations in which you may not wish to be entirely honest. Disagreeing with the opinions of the executive team or wishing to save the feelings of a coworker can be tricky to navigate, but being honest is absolutely vital when to comes to developing effective solutions and ensuring your voice is heard. 

Remember that being honest does not mean being brutally candid. You can deliver your honest feedback and opinions thoughtfully and without creating friction by using other skills such as emotional intelligence. 

Explore your Values   #hyperisland   #skills   #values   #remote-friendly   Your Values is an exercise for participants to explore what their most important values are. It’s done in an intuitive and rapid way to encourage participants to follow their intuitive feeling rather than over-thinking and finding the “correct” values. It is a good exercise to use to initiate reflection and dialogue around personal values.

Initiative 

The problem solving process is multi-faceted and requires different approaches at certain points of the process. Taking initiative to bring problems to the attention of the team, collect data or lead the solution creating process is always valuable. You might even roadtest your own small scale solutions or brainstorm before a session. Taking initiative is particularly effective if you have good deal of knowledge in that area or have ownership of a particular project and want to get things kickstarted.

That said, be sure to remember to honor the process and work in service of the team. If you are asked to own one part of the problem solving process and you don’t complete that task because your initiative leads you to work on something else, that’s not an effective method of solving business challenges.

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

Impartiality

A particularly useful problem solving skill for product owners or managers is the ability to remain impartial throughout much of the process. In practice, this means treating all points of view and ideas brought forward in a meeting equally and ensuring that your own areas of interest or ownership are not favored over others. 

There may be a stage in the process where a decision maker has to weigh the cost and ROI of possible solutions against the company roadmap though even then, ensuring that the decision made is based on merit and not personal opinion. 

Empathy map   #frame insights   #create   #design   #issue analysis   An empathy map is a tool to help a design team to empathize with the people they are designing for. You can make an empathy map for a group of people or for a persona. To be used after doing personas when more insights are needed.

Being a good leader means getting a team aligned, energized and focused around a common goal. In the problem solving process, strong leadership helps ensure that the process is efficient, that any conflicts are resolved and that a team is managed in the direction of success.

It’s common for managers or executives to assume this role in a problem solving workshop, though it’s important that the leader maintains impartiality and does not bulldoze the group in a particular direction. Remember that good leadership means working in service of the purpose and team and ensuring the workshop is a safe space for employees of any level to contribute. Take a look at our leadership games and activities post for more exercises and methods to help improve leadership in your organization.

Leadership Pizza   #leadership   #team   #remote-friendly   This leadership development activity offers a self-assessment framework for people to first identify what skills, attributes and attitudes they find important for effective leadership, and then assess their own development and initiate goal setting.

In the context of problem solving, mediation is important in keeping a team engaged, happy and free of conflict. When leading or facilitating a problem solving workshop, you are likely to run into differences of opinion. Depending on the nature of the problem, certain issues may be brought up that are emotive in nature. 

Being an effective mediator means helping those people on either side of such a divide are heard, listen to one another and encouraged to find common ground and a resolution. Mediating skills are useful for leaders and managers in many situations and the problem solving process is no different.

Conflict Responses   #hyperisland   #team   #issue resolution   A workshop for a team to reflect on past conflicts, and use them to generate guidelines for effective conflict handling. The workshop uses the Thomas-Killman model of conflict responses to frame a reflective discussion. Use it to open up a discussion around conflict with a team.

Planning 

Solving organizational problems is much more effective when following a process or problem solving model. Planning skills are vital in order to structure, deliver and follow-through on a problem solving workshop and ensure your solutions are intelligently deployed.

Planning skills include the ability to organize tasks and a team, plan and design the process and take into account any potential challenges. Taking the time to plan carefully can save time and frustration later in the process and is valuable for ensuring a team is positioned for success.

3 Action Steps   #hyperisland   #action   #remote-friendly   This is a small-scale strategic planning session that helps groups and individuals to take action toward a desired change. It is often used at the end of a workshop or programme. The group discusses and agrees on a vision, then creates some action steps that will lead them towards that vision. The scope of the challenge is also defined, through discussion of the helpful and harmful factors influencing the group.

Prioritization

As organisations grow, the scale and variation of problems they face multiplies. Your team or is likely to face numerous challenges in different areas and so having the skills to analyze and prioritize becomes very important, particularly for those in leadership roles.

A thorough problem solving process is likely to deliver multiple solutions and you may have several different problems you wish to solve simultaneously. Prioritization is the ability to measure the importance, value, and effectiveness of those possible solutions and choose which to enact and in what order. The process of prioritization is integral in ensuring the biggest challenges are addressed with the most impactful solutions.

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

Project management

Some problem solving skills are utilized in a workshop or ideation phases, while others come in useful when it comes to decision making. Overseeing an entire problem solving process and ensuring its success requires strong project management skills. 

While project management incorporates many of the other skills listed here, it is important to note the distinction of considering all of the factors of a project and managing them successfully. Being able to negotiate with stakeholders, manage tasks, time and people, consider costs and ROI, and tie everything together is massively helpful when going through the problem solving process. 

Record keeping

Working out meaningful solutions to organizational challenges is only one part of the process.  Thoughtfully documenting and keeping records of each problem solving step for future consultation is important in ensuring efficiency and meaningful change. 

For example, some problems may be lower priority than others but can be revisited in the future. If the team has ideated on solutions and found some are not up to the task, record those so you can rule them out and avoiding repeating work. Keeping records of the process also helps you improve and refine your problem solving model next time around!

Personal Kanban   #gamestorming   #action   #agile   #project planning   Personal Kanban is a tool for organizing your work to be more efficient and productive. It is based on agile methods and principles.

Research skills

Conducting research to support both the identification of problems and the development of appropriate solutions is important for an effective process. Knowing where to go to collect research, how to conduct research efficiently, and identifying pieces of research are relevant are all things a good researcher can do well. 

In larger groups, not everyone has to demonstrate this ability in order for a problem solving workshop to be effective. That said, having people with research skills involved in the process, particularly if they have existing area knowledge, can help ensure the solutions that are developed with data that supports their intention. Remember that being able to deliver the results of research efficiently and in a way the team can easily understand is also important. The best data in the world is only as effective as how it is delivered and interpreted.

Customer experience map   #ideation   #concepts   #research   #design   #issue analysis   #remote-friendly   Customer experience mapping is a method of documenting and visualizing the experience a customer has as they use the product or service. It also maps out their responses to their experiences. To be used when there is a solution (even in a conceptual stage) that can be analyzed.

Risk management

Managing risk is an often overlooked part of the problem solving process. Solutions are often developed with the intention of reducing exposure to risk or solving issues that create risk but sometimes, great solutions are more experimental in nature and as such, deploying them needs to be carefully considered. 

Managing risk means acknowledging that there may be risks associated with more out of the box solutions or trying new things, but that this must be measured against the possible benefits and other organizational factors. 

Be informed, get the right data and stakeholders in the room and you can appropriately factor risk into your decision making process. 

Decisions, Decisions…   #communication   #decision making   #thiagi   #action   #issue analysis   When it comes to decision-making, why are some of us more prone to take risks while others are risk-averse? One explanation might be the way the decision and options were presented.  This exercise, based on Kahneman and Tversky’s classic study , illustrates how the framing effect influences our judgement and our ability to make decisions . The participants are divided into two groups. Both groups are presented with the same problem and two alternative programs for solving them. The two programs both have the same consequences but are presented differently. The debriefing discussion examines how the framing of the program impacted the participant’s decision.

Team-building 

No single person is as good at problem solving as a team. Building an effective team and helping them come together around a common purpose is one of the most important problem solving skills, doubly so for leaders. By bringing a team together and helping them work efficiently, you pave the way for team ownership of a problem and the development of effective solutions. 

In a problem solving workshop, it can be tempting to jump right into the deep end, though taking the time to break the ice, energize the team and align them with a game or exercise will pay off over the course of the day.

Remember that you will likely go through the problem solving process multiple times over an organization’s lifespan and building a strong team culture will make future problem solving more effective. It’s also great to work with people you know, trust and have fun with. Working on team building in and out of the problem solving process is a hallmark of successful teams that can work together to solve business problems.

9 Dimensions Team Building Activity   #ice breaker   #teambuilding   #team   #remote-friendly   9 Dimensions is a powerful activity designed to build relationships and trust among team members. There are 2 variations of this icebreaker. The first version is for teams who want to get to know each other better. The second version is for teams who want to explore how they are working together as a team.

Time management 

The problem solving process is designed to lead a team from identifying a problem through to delivering a solution and evaluating its effectiveness. Without effective time management skills or timeboxing of tasks, it can be easy for a team to get bogged down or be inefficient.

By using a problem solving model and carefully designing your workshop, you can allocate time efficiently and trust that the process will deliver the results you need in a good timeframe.

Time management also comes into play when it comes to rolling out solutions, particularly those that are experimental in nature. Having a clear timeframe for implementing and evaluating solutions is vital for ensuring their success and being able to pivot if necessary.

Improving your skills at problem solving is often a career-long pursuit though there are methods you can use to make the learning process more efficient and to supercharge your problem solving skillset.

Remember that the skills you need to be a great problem solver have a large overlap with those skills you need to be effective in any role. Investing time and effort to develop your active listening or critical thinking skills is valuable in any context. Here are 7 ways to improve your problem solving skills.

Share best practices

Remember that your team is an excellent source of skills, wisdom, and techniques and that you should all take advantage of one another where possible. Best practices that one team has for solving problems, conducting research or making decisions should be shared across the organization. If you have in-house staff that have done active listening training or are data analysis pros, have them lead a training session. 

Your team is one of your best resources. Create space and internal processes for the sharing of skills so that you can all grow together. 

Ask for help and attend training

Once you’ve figured out you have a skills gap, the next step is to take action to fill that skills gap. That might be by asking your superior for training or coaching, or liaising with team members with that skill set. You might even attend specialized training for certain skills – active listening or critical thinking, for example, are business-critical skills that are regularly offered as part of a training scheme.

Whatever method you choose, remember that taking action of some description is necessary for growth. Whether that means practicing, getting help, attending training or doing some background reading, taking active steps to improve your skills is the way to go.

Learn a process 

Problem solving can be complicated, particularly when attempting to solve large problems for the first time. Using a problem solving process helps give structure to your problem solving efforts and focus on creating outcomes, rather than worrying about the format. 

Tools such as the seven-step problem solving process above are effective because not only do they feature steps that will help a team solve problems, they also develop skills along the way. Each step asks for people to engage with the process using different skills and in doing so, helps the team learn and grow together. Group processes of varying complexity and purpose can also be found in the SessionLab library of facilitation techniques . Using a tried and tested process and really help ease the learning curve for both those leading such a process, as well as those undergoing the purpose.

Effective teams make decisions about where they should and shouldn’t expend additional effort. By using a problem solving process, you can focus on the things that matter, rather than stumbling towards a solution haphazardly. 

Create a feedback loop

Some skills gaps are more obvious than others. It’s possible that your perception of your active listening skills differs from those of your colleagues. 

It’s valuable to create a system where team members can provide feedback in an ordered and friendly manner so they can all learn from one another. Only by identifying areas of improvement can you then work to improve them. 

Remember that feedback systems require oversight and consideration so that they don’t turn into a place to complain about colleagues. Design the system intelligently so that you encourage the creation of learning opportunities, rather than encouraging people to list their pet peeves.

While practice might not make perfect, it does make the problem solving process easier. If you are having trouble with critical thinking, don’t shy away from doing it. Get involved where you can and stretch those muscles as regularly as possible. 

Problem solving skills come more naturally to some than to others and that’s okay. Take opportunities to get involved and see where you can practice your skills in situations outside of a workshop context. Try collaborating in other circumstances at work or conduct data analysis on your own projects. You can often develop those skills you need for problem solving simply by doing them. Get involved!

Use expert exercises and methods

Learn from the best. Our library of 700+ facilitation techniques is full of activities and methods that help develop the skills you need to be an effective problem solver. Check out our templates to see how to approach problem solving and other organizational challenges in a structured and intelligent manner.

There is no single approach to improving problem solving skills, but by using the techniques employed by others you can learn from their example and develop processes that have seen proven results. 

Try new ways of thinking and change your mindset

Using tried and tested exercises that you know well can help deliver results, but you do run the risk of missing out on the learning opportunities offered by new approaches. As with the problem solving process, changing your mindset can remove blockages and be used to develop your problem solving skills.

Most teams have members with mixed skill sets and specialties. Mix people from different teams and share skills and different points of view. Teach your customer support team how to use design thinking methods or help your developers with conflict resolution techniques. Try switching perspectives with facilitation techniques like Flip It! or by using new problem solving methodologies or models. Give design thinking, liberating structures or lego serious play a try if you want to try a new approach. You will find that framing problems in new ways and using existing skills in new contexts can be hugely useful for personal development and improving your skillset. It’s also a lot of fun to try new things. Give it a go!

Encountering business challenges and needing to find appropriate solutions is not unique to your organization. Lots of very smart people have developed methods, theories and approaches to help develop problem solving skills and create effective solutions. Learn from them!

Books like The Art of Thinking Clearly , Think Smarter, or Thinking Fast, Thinking Slow are great places to start, though it’s also worth looking at blogs related to organizations facing similar problems to yours, or browsing for success stories. Seeing how Dropbox massively increased growth and working backward can help you see the skills or approach you might be lacking to solve that same problem. Learning from others by reading their stories or approaches can be time-consuming but ultimately rewarding.

A tired, distracted mind is not in the best position to learn new skills. It can be tempted to burn the candle at both ends and develop problem solving skills outside of work. Absolutely use your time effectively and take opportunities for self-improvement, though remember that rest is hugely important and that without letting your brain rest, you cannot be at your most effective. 

Creating distance between yourself and the problem you might be facing can also be useful. By letting an idea sit, you can find that a better one presents itself or you can develop it further. Take regular breaks when working and create a space for downtime. Remember that working smarter is preferable to working harder and that self-care is important for any effective learning or improvement process.

Want to design better group processes?

business problem solving skills

Over to you

Now we’ve explored some of the key problem solving skills and the problem solving steps necessary for an effective process, you’re ready to begin developing more effective solutions and leading problem solving workshops.

Need more inspiration? Check out our post on problem solving activities you can use when guiding a group towards a great solution in your next workshop or meeting. Have questions? Did you have a great problem solving technique you use with your team? Get in touch in the comments below. We’d love to chat!

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7 Problem Solving Skills Marketing Managers Need & How to Improve Them

Katrina Kirsch

Updated: November 19, 2021

Published: November 03, 2021

Think back to a time you had to solve a problem but didn't have all of the right information. What did you do? Situations like this pop up all the time at work and put your problem solving skills to the test.

marketing managers collaborate to use problem solving skills

As a marketing manager, one may think your job doesn't revolve around problem solving. But it's an essential part of putting out fires at work — and making sure there's a process in place to prevent issues from happening again.

Download Now: 5 Free Skill Development Templates

Whether you're making decisions that affect an entire team or simply creating solutions for yourself, strong problem solving skills can help you grow as a person and a professional.

In this post, we'll cover what it means to come up with creative solutions and how to hone the skills to approach problems like a pro.

What are problem solving skills?

Problem solving skills allow you to notice an issue, identify the root cause, design an effective solution, and successfully implement it. This includes the skills to evaluate whether or not your plan achieved the results you wanted.

The best problem solvers can anticipate problems before they arise and take action to prevent them or lessen the impact. They use logic to define what needs to change and creativity to propose innovative solutions.

Having strong problem solving skills can help you impress your manager, contribute unique ideas, and achieve your goals. It also means you can work through the core steps of solving a problem:

  • Identify and define the problem.
  • Come up with possible solutions.
  • Evaluate the options.
  • Choose the best solution.
  • Implement the solution.
  • Evaluate the outcome.

While there are many types of problem solving skills, many are considered soft skills that you develop over time. Think communication skills, people skills, social skills, and personality traits. For example, a marketing manager needs to be able to solve a conflict between team members or devise a plan to keep their campaigns going if the company marketing budget is cut.

While problem solving skills can require you to use your technical ability, you have to establish a number of specific soft skills to identify issues and implement solutions.

Problem Solving Skills Examples

No matter your career path, being an effective problem solver is beneficial for personal and career growth. Here's a look at the skills you may use when solving a problem:

  • Communication
  • Organization

Problem Solving Skills Marketing Managers Need

A marketing manager who notices issues and makes decisions to solve them is a valuable addition to any company. This type of person gets things done and motivates others to do the same.

The further you grow in your career, the more problem solving skills you need to have in your toolkit. The higher up you get in an organization, decisions become riskier, solutions are often more vague, and the potential impact can be monumental to the company.

Let's look at the top problem solving skills you need to be a successful marketing manager.

1. Analytical Skills

Solving any problem starts with analyzing the issue — you have to go beyond the symptoms of the problem to find the root cause.

Maybe your team is routinely going over budget on social campaign spend. Instead of micro-managing every detail, analytical skills help you dig into the problem to see what may be going wrong. You find that your social media coordinators can set up campaigns correctly, but they lack the basic budgeting skills to keep spending on track. So you devise a training program to teach them about profit, loss, and financial forecasting.

Being analytical can include a number of essential problem solving skills for marketers:

  • Attention to detail
  • Data collection
  • Forecasting
  • Fact-checking
  • Historical analysis

2. Creativity

Once you discover the true problem, you can come up with the ideal solution. This is where you put your creative problem solving skills to the test. And for those who question whether creativity plays into solving problems, creativity is one of Indeed's top 20 in-demand skills for 2021 across all industries and fields.

Sometimes the solution to a problem is not always straight-forward, and can require creative thinking and other points of view to be resolved.

Creativity comes in many styles. Engineers can create innovative code, and writers can come up with new blog styles. For marketing managers, creativity plays out in a number of problem solving skills:

  • Brainstorming
  • Project design
  • Project planning
  • Editing the aesthetics of marketing materials
  • Creating new promotional methods for products
  • Planning and executing events

3. Judgment

With dozens of solutions before you, how do you choose the best one? Through exercising sound judgment. Developing good judgment lets you consider the nature of a problem, possible setbacks, costs and resources, decision makers, and how to implement a solution. You can compare between options and select the solution that's right for each unique situation.

As a marketing manager, you can showcase your judgment skills through:

  • Critical thinking
  • Decision-making
  • Corroboration
  • Test development
  • Authenticity

4. Communication

Communication skills are the foundation of problem solving and one of the top leadership skills . As a manager, you need to be able to articulate your opinions, brainstorm with a colleague, and give feedback to a direct report. Being a good communicator also helps you relay your decision on a solution and align everyone to tackle it together.

Without specific problem solving communication skills, issues can't be resolved quickly and efficiently. That's why to be an effective leader and expert problem solver, it's important to make sure you have the following communication skills:

  • Active listening
  • Negotiation
  • Clarity of expression
  • Public speaking
  • Reading body language
  • Verbal communication
  • Written communication
  • Building rapport

5. Organization

Once you've chosen a solution to a problem and communicated it to your team, you still have to create a process to carry out your plan. Organization skills help you implement the steps everyone needs to take, which can improve alignment and efficiency.

Setting up a strategy for your solution uses a number of problem solving skills including:

  • Prioritization
  • Project management
  • Time management
  • Meeting facilitation
  • Recording and filing information
  • Creating strategic schedules

6. Teamwork

No marketing manager is an island. Teamwork is essential for working with others and contributing to a company's mission. It's necessary for exchanging ideas, delegating tasks, and working toward a solution.

Even if your role is largely independent work, you still need teamwork to collaborate with colleagues in different departments and keep your goals on track. But as a marketer, your role usually involves interacting with multiple people (if not dozens) per day. So you need to develop the skills that will make everyone want you on their team.

  • Collaboration
  • Giving and receiving feedback
  • Goal setting
  • Dependability
  • Resource allocation
  • Prioritizing tasks
  • Setting expectations
  • Assessing employee strengths and weaknesses
  • Performance evaluation
  • Identifying outcomes

7. Evaluation

When problem solving, evaluation skills let you assess if a solution is working and help you make the necessary adjustments. These are similar to analytical skills, but often require more patience and flexibility in case your strategy didn't go as planned. It's important to know whether or not your plan is working as quickly as possible so you can pivot and try another solution.

  • Data analysis
  • Adaptability
  • Creating and evaluating surveys
  • Customer feedback
  • Follow-through
  • Troubleshooting
  • Identifying patterns
  • Open mindedness

How to Improve Problem Solving Skills

Developing your problem solving skills isn't as straightforward as mastering Excel. But marketing managers can take several steps to improve their skills and advance their careers.

Question your decisions.

Relying on your gut instinct isn't the path to expert problem solving skills. Instead, try taking time to consciously question why you make decisions and what the outcomes may be if you choose one option over another. You can ask yourself:

  • How important is this decision?
  • How will this impact me a year from now?
  • What’s the worst thing that could happen?
  • What effect will this decision have on my team and the company?
  • What can I do if I make the wrong decision here?

Look for opportunities to solve more problems.

Many experiences in your personal and professional life help you hone your problem solving skills, often without you even realizing it. You can gain or improve your skills by doing any of the following:

  • Figuring out a technical problem with your phone or computer.
  • Taking up a DIY project you've never tried before.
  • Resolving a customer or employee complaint.
  • Organizing a team bonding activity, overcoming obstacles along the way.
  • Acting as a mentor for direct reports and helping them tackle their problems.
  • Re-budgeting your finances to fund an out-of-the-blue trip.
  • Finding out why there's been a dip in activity on your company's social media channels.

Find models and games to improve your problem solving skills.

A combination of proven models and fun mental games can help you develop problem solving skills. Some can hone your decision-making abilities, while others let you determine the cost of the possible solutions. Depending on which set of skills you want to improve, look to options like:

  • 5 Whys (root cause analysis)
  • Fishbone diagram (cause and effect analysis)
  • Brainwriting (brainstorming technique)
  • Starbursting (exploratory brainstorming)
  • Hurson's Productive Thinking model (creative problem solving)
  • Lego Master (decision-making and communication)
  • Escape Room (group communication and collaboration)
  • Line-Up (non-verbal communication)
  • Hackathons (brainstorming and creativity)

Demonstrating Problem Solving Skills

Knowing how to solve problems at work is not only crucial for contributing to company goals — it's also a must-have for moving to management positions. That's why it's important to highlight the skills you already have. This includes adding problem solving skills to your resume and showcasing your abilities during job interviews.

Whether you're looking for a marketing manager role or wondering what to say next time an opportunity to advance at your current company opens up, start with the STAR method . It's designed to help you think through your experiences so you can articulate your specific problem solving skills. Make sure to give an overview of a challenge you had to overcome, how you approached it, what solution you found, and what outcome you achieved.

Honing your problem solving skills makes you more valuable as a manager and team member. So putting in time to develop the skills most relevant to your current (and future!) roles can make it easier to climb the ladder and come up with efficient, effective solutions.

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Howard University

Fundamentals of Business Problem Solving

This course is part of Business Problem Solving Specialization

Taught in English

Alton Henley

Instructor: Alton Henley

Financial aid available

Coursera Plus

Recommended experience

Intermediate level

To be successful in this course, learners will need a basic knowledge of the business process and of Microsoft Excel.

What you'll learn

Develop an understanding of the business process, including how to identify opportunities and risks.

Utilize Microsoft Excel to create and manipulate spreadsheets.

Interpret and analyze spreadsheet modeling outputs.

Skills you'll gain

  • Spreadsheet
  • Microsoft Excel
  • Business Analysis
  • Business Process
  • Business Strategy

Details to know

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10 quizzes, 7 assignments

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  • Learn new concepts from industry experts
  • Gain a foundational understanding of a subject or tool
  • Develop job-relevant skills with hands-on projects
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There are 4 modules in this course

This course introduces how to classify data and create models used to solve business models. Learners will use Solver to create expressions to find optimal paths for business problems.

Introduction to Business Problem Solving

This module introduces the key components of a business model. It also provides an overview of how to use Solver in Microsoft Excel.

What's included

9 videos 1 reading 3 quizzes 1 discussion prompt

9 videos • Total 36 minutes

  • Introduction to the Specialization: Business Problem Solving • 2 minutes • Preview module
  • Introduction to Fundamentals of Business Problem Solving • 1 minute
  • Introduction to the Instructor • 1 minute
  • Introduction to Modeling • 7 minutes
  • Modeling 101 • 3 minutes
  • Vital Spreadsheet Techniques for Modeling • 8 minutes
  • Introduction to Solver • 4 minutes
  • Installing Solver • 1 minute
  • Using Solver • 5 minutes

1 reading • Total 15 minutes

  • Welcome to Business Problem Solving • 15 minutes

3 quizzes • Total 90 minutes

  • Graded Quiz Lesson 1.3 • 30 minutes
  • Practice Quiz Lesson 1.1 • 30 minutes
  • Practice Quiz Lesson 1.2 • 30 minutes

1 discussion prompt • Total 30 minutes

  • Meet and Greet • 30 minutes

Creating a Basic Business Model

This module describes how to create a spreadsheet model for a business problem and use data points to analyze the trends.

5 videos 3 readings 3 quizzes 3 assignments

5 videos • Total 23 minutes

  • Analyzing a Business Problem • 4 minutes • Preview module
  • Walkthrough: Analyzing Ike's Guitar Shop • 2 minutes
  • Walkthrough: Analyzing Property Development • 1 minute
  • Analyzing a Business Problem II • 9 minutes
  • Walkthrough: Analyzing Geneva's Hair Emporium • 6 minutes

3 readings • Total 30 minutes

  • Business Case: Ike Guitar Shop • 10 minutes
  • Business Case: Property Development • 10 minutes
  • Business Case: Geneva's Hair Emporium • 10 minutes
  • Graded Quiz Lesson 2.2 • 30 minutes
  • Practice Quiz Lesson 2.1 • 30 minutes
  • Practice Quiz Lesson 2.2 • 30 minutes

3 assignments • Total 180 minutes

  • Ike Guitar Shop • 60 minutes
  • Property Development • 60 minutes
  • Geneva's Hair Emporium • 60 minutes

Building Different Model Types

This module focuses on how to build and solve business problems related to profit and product mix models.

7 videos 4 readings 3 quizzes 4 assignments

7 videos • Total 39 minutes

  • Understanding Profit Model • 3 minutes • Preview module
  • Additional Modeling Tools • 2 minutes
  • Walkthrough: Brian's Barbershop • 6 minutes
  • Dante's Canes Walkthrough • 10 minutes
  • Understanding the Product Mix Model • 6 minutes
  • Walkthrough: Forrest Pizzeria • 5 minutes
  • Walkthrough: Geneva's Mom's Hair Emporium • 4 minutes

4 readings • Total 40 minutes

  • Business Case: Brian’s Barbershop • 10 minutes
  • Business Case: Dante's Canes • 10 minutes
  • Business Case: Forrest Pizzeria • 10 minutes
  • Business Case: Geneva's Mom's Hair Emporium • 10 minutes
  • Graded Quiz Lesson 3.2 • 30 minutes
  • Practice Quiz Lesson 3.1 • 30 minutes
  • Practice Quiz Lesson 3.2 • 30 minutes

4 assignments • Total 240 minutes

  • Brian's Barbershop • 60 minutes
  • Dante's Canes • 60 minutes
  • Forrest Pizzeria • 60 minutes
  • Geneva's Mom's Hair Emporium • 60 minutes

Model Optimization

This module explains how to use Solver in Microsoft Excel to optimize business models.

6 videos 1 reading 1 quiz

6 videos • Total 19 minutes

  • Using Solver to Optimizer a Model • 2 minutes • Preview module
  • Optimizing Brian's Barbershop • 3 minutes
  • Optimizing Dante's Canes • 3 minutes
  • Using Solver for Product Mix Models • 3 minutes
  • Optimizing Forrest Pizzeria • 2 minutes
  • Optimizing Geneva's Mom's Hair Emporium • 2 minutes

1 reading • Total 60 minutes

  • Business Model Case: Charmaine and Shieng's Cupcakes • 60 minutes

1 quiz • Total 30 minutes

  • Graded Quiz Lesson 4.3 • 30 minutes

business problem solving skills

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What Is Problem Solving in Business?

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

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

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

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

Why Is Problem-Solving Important in Business?

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

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

How Do You Solve Business Problems Effectively?

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

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

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

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

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

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

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

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

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

What Are Problem-Solving Skills?

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

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

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

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

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

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

How Can You Improve Your Problem-Solving Skills?

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

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

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

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

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

Enhance Your Problem-Solving Skills with CMOE

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

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Home » Business Cycle » Problem solving in business

Business problem solving

We all know someone who always seems to have the answer. They’re prepared for any situation and solve problems quickly and decisively. These people are typically great leaders in business and in life. But is business problem solving a natural talent? Or is it a skill you can develop?  

The truth is that business problem solving is a set of skills and strategies that anyone can learn – and it’s more important than ever.   

With the economy in a winter phase and the nature of work transforming before our eyes, there’s no shortage of business problems to solve in today’s economy. Learning how to solve business problems effectively requires focus, decisiveness and self-awareness.

Discover how to solve business problems effectively

Business problem solving: an essential skill

Whether you’re managing a new company or just starting as CEO at a global enterprise, you’re sure to encounter business problems to solve . Dealing with crises . Employee turnover and unhappiness. Inability to scale mindfully. Financial problems. Leadership gaps. Without creative thinking to solve business problems , these issues can quickly build up and lead to the one thing you certainly don’t want: the close of your business.  

Strong leadership and decision-making have the opposite effect: one study even found that extraordinary leaders can double profits at their companies. Business problem solving is an essential skill not only for owners and CEOs, but anyone with entrepreneurial desires or career-climbing dreams.

How to solve business problems effectively

Business problems to solve are easy to come by – the skills needed to make tough choices and act decisively are less common. But with the right strategies, you can develop them and learn how to take your business to the next level .

1. Know where you want to be

find certainty

Business problem solving always starts with having a plan. If you don’t have goals you’re working toward, you’ll never know when you miss them. The signs of business problems will pass you by.

A traditional business plan isn’t enough, because it only shows you how to get from point A to point B. You need to create a business map – a holistic view of your vision, your mission and all the possible business problems to solve. This map will keep you moving along the route to your ultimate goal: scaling your business and planning an exit strategy .

2. Know where you are

The next step is to get real: be honest about where your business is currently. Look at your financial statements. Survey your employees to get an idea of business problems to solve on the front lines. Ask your colleagues and others in your industry where they are so that you can compare.

It’s important to be realistic at this step. If you have a high risk tolerance , you may be tempted to be overly optimistic. If you’re a perfectionist or have low risk tolerance, you could be more negative than you need to be. Avoid falling in love with your product or your company and make sure you’re taking an objective look at where you are.

Business problems to solve

3. Identify the problem

business problem solving

In much the same way you ask “What business am I in?” and then “What business am I really in?” you can ask, “What’s the problem?” You’ll likely identify a surface-level answer, like “sales are dropping.” Then ask, “What’s really the problem?” Sales are affected by multiple other business problems to solve , from recruiting top salespeople to providing excellent customer service .

Business problem solving often goes back to the customer. You must provide them with more value than anyone else, through your product and your customer experience. If you’re having trouble identifying your business problem, start with these areas. 

4. Understand the problem

It’s tempting to jump right to solutions once you’ve identified the problem. But pulling weeds out by the top is never effective. You need to get to the root of the issue. When was the last time you did a competitive analysis or surveyed your customers for feedback?

It isn’t enough to perform a typical SWOT analysis and leave it at that. Creative thinking to solve business problems starts with listening . When you listen, you’ll receive data – the opinions of customers, the strategies of competitors. That data will tell a story. Only when you uncover this story will you be able to pull the weed out by the root.

sales mindset.

5. Focus on solutions

Tony tells us to “Identify your problems, but give your power and energy to solutions.” Now is the time for solutions – but you can’t do it alone. Get together with your team or your colleagues and brainstorm. Ask the right questions so that you get honest, productive answers. Model various scenarios and rank them based on their outcomes. Apply a framework like the Rapid Planning Method to help you.  

Get a second opinion from your mentor or a group of trusted advisors outside of your company. Sign up for business coaching to run your questions by an expert. Narrow down your options until you’re confident you’ve come to the right solution. Then create a massive action plan and put your business problem-solving skills to use.

Ready to solve your business problems?

Learn how to optimize your entire business strategy and gain an edge over your competition with Tony’s free 7 Forces of Business Mastery program.

© 2024 Robbins Research International, Inc. All rights reserved.

business problem solving skills

14 Inspirational Examples of Business Ideas That Solve Problems

By Brett Farmiloe

Problems are the spark for innovative solutions. Here we've gathered the accounts of entrepreneurs who transformed challenges into successful business ventures. Read on to learn why these founders believe in the power of starting businesses to solve common problems.

14 businesses that were founded to solve a problem

1. the adu guide.

Startup story: "My journey began when I came across the widespread issue of limited housing options. Recognizing the need for adaptable living spaces, I established a construction company that specializes in accessory dwelling units (ADUs). I understand the importance of addressing common problems with innovative solutions. The ADU Guide not only offers homeowners expert advice from licensed consultants, but also helps to alleviate the housing crisis."

Takeaway: "Starting a business to address common issues not only promotes personal success, but also benefits communities by providing practical and meaningful solutions."

— Eli Cohen , The ADU Guide

2. Runtofly

Startup story: " After finishing my studies a few years back, I decided to reward myself with a trip somewhere. I didn’t know exactly where to go, and I was ready to fly anywhere (well…almost!), only if the price was really good. I was literally ready to depart 'now'! I thought it was exactly the idea of a 'last-minute flight' that many people talk about. But unfortunately (or actually, fortunately!), I found out that most flights departing in the next hours or days were very expensive, even when many seats were still available. I realized that cheap last-minute flights were only a myth and that there was a problem of untapped supply and unaddressed demand.

"Instead of accepting things as they were, I made up my mind to work on this problem and make last-minute flights real. It took a few years of blood, sweat, and tears, but finally, I was able to see my vision come to reality in 2024 when Runtofly.co.uk went live."

Takeaway: "People should always start businesses to solve a problem that others have. And the most successful businesses are the ones where the founder experienced the problem themselves firsthand. Too many entrepreneurs start a company just for the sake of starting a company without starting from a problem. Instead, they end up with a 'solution in search of a problem,' instead of the other way around."

— Federico Grimaccia , Runtofly

3. True Friends Moving Company

Startup story: " My entrepreneurial journey began with a rather simple observation—while living in a close-knit community, I noticed a recurring issue many faced: the lack of professional moving services. Can you imagine the stress of moving without reliable help? The distress calls for movers were on the rise, and although several informal services existed, none could instill the confidence and care one would expect during such a stressful time.

"I started small—just me and one truck. But, as we helped families move homes, our reputation grew. Fast-forward to today, and we're not just a moving company; we've become a trusted partner in new beginnings. Solving a common problem isn't just about spotting it; it's about being passionate about providing a solution that people will trust and remember.

Takeaway: "Why should others start businesses to solve common problems? Here's a compelling reason: genuine market demand. When you alleviate a pain point that many face, you immediately tap into an ecosystem where every satisfied client can become a vocal advocate. Growth rooted in solving real-world problems tends to be organic, sustained, and deeply rewarding.

"In my case, as I performed each move, I refined my service and built relationships that turned customers into effective brand ambassadors. My business grew beyond a single truck through the most powerful marketing tool—word-of-mouth referrals.

"When you solve a common problem, you do more than start a business; you build a community cornerstone that supports and grows with its people. Entrepreneurs should be encouraged to look into their own communities and identify needs because, more often than not, serving your community leads to real impact and sustainable success."

— Chris Knowles , True Friends Moving Company

4. InBound Blogging

Startup story: "Initially, when I started my business, I wanted to provide go-to solutions for people who wanted to monetize their blogs. Many small creators and businesses struggle to build websites that generate an income. Recognizing this gap, I started InBound Blogging to provide tailored solutions and help bloggers make a living from their content. My agency has since grown, has grown, and we've pivoted to offering comprehensive SEO services, specifically for B2B SaaS companies."

Takeaway: "Building a business around the concept of problem-solving works because, essentially, you've already got a target audience. If there is a market need for the solutions you're providing, people will seek you out for your expertise to help them out. What you have to do is create something of value so you can build a successful and sustainable company. It gives you space to carve out a niche of your own, and over time, you can do what I did and branch out and offer services in other areas."

— Nikola Baldikov , InBound Blogging

5. SellCoursesOnline

Startup story: "During my years in the digital marketing agency space, I saw firsthand many business owners struggling with the tech side of things. Sure, there's the internet, but it's also filled with a lot of fluffy advice, contradictory information, and even misinformation. It became apparent to me that navigating the tech side of growing an online business presence isn't an easy and straightforward task for everyone. It's a problem in the market that needed a solution, and so I provided one.

"This is how our agency was born. It is essentially a one-stop resource for entrepreneurs and creators to find the support, technical guidance, and the right tools they need to build their e-learning platforms and online courses."

Takeaway: "Simple and common problems like this often get overlooked, but there are actually big opportunities for observant business people who are smart enough to provide a solution."

— Baidhurya Mani , SellCoursesOnline

6. Pool Care Arizona LLC

Startup story: "My foray into entrepreneurship commenced when I encountered obstacles in locating dependable and effective pool maintenance services for my personal residence. Motivated by the dearth of alternatives that satisfied my criteria, I perceived this as a chance to address a market void and offer superior pool services to individuals encountering comparable predicaments."

Takeaway: "Entrepreneurs can address unfulfilled demands, generate value for customers, and make a positive impact on their communities by establishing companies that resolve prevalent issues. Entrepreneurs can create enterprises that not only prosper but also have a significant social and economic impact by recognizing areas of dissatisfaction and presenting novel remedies. This collective experience highlights the criticality of entrepreneurship as a catalyst for advancement and a solution to societal issues."

— Jacob Mendrin , Pool Care Arizona LLC

7. humble help

Startup story: "Starting a business isn't just about making money—it's about finding solutions to real problems. My journey began during the tough times of 2020 when I saw so many small businesses struggling to survive. That's when Humble Help Studio came to life, with a mission to offer support and relief to these important local players."

Takeaway: "Being an entrepreneur means looking at problems as chances to make something better. I was inspired by the hardships these businesses were going through, and it made me realize how important it is to care deeply about the issues you're trying to solve. The best reason to start a business is wanting to make a difference, especially for problems that affect the people and places you love. This mindset turns obstacles into opportunities for making things better, sparking innovation and having a positive impact.

"Simply put, entrepreneurs have this special ability to fix what's broken, using their ideas, hard work, and passion. This doesn't just lead to successful businesses; it helps build a stronger, kinder community."

— Vick Antonyan , humble help

Startup story: "I started Chadix because I was fed up with how complex and time-consuming most SEO tools were. As an online marketer trying to grow sites for myself and clients, I wasted tons of hours on manual content creation, optimizations, keyword research, etc. The lightbulb moment was realizing these SEO processes could be automated using AI, freeing up my time for strategy and scaling.

"So, I built a company to simplify and optimize SEO—with AI automatically handling content production, insights, optimizations, and more. I didn't have a waitlist of thousands at first. Leveraging my personal brand on Facebook, I created the Chadix Facebook Group to build an audience interested in my idea. Within months, I organically grew the group to 850 members.

"To validate Chadix's potential, I invited engaged group members to become Alpha testers. Nearly 80 people signed up and provided invaluable feedback on the software prototyping and UI. The tiny churn rate showed I struck a nerve by addressing the universal pain points around SEO complexity that most marketers and businesses face."

Takeaway: "I believe solving real problems people encounter is the best way to build an impactful business. If your solution alleviates frustrations, saves money, or saves time for customers, you inherently create tremendous value. Chadix was born out of my personal annoyance with SEO tools—then validated by other marketers feeling the same pain. Addressing universal problems with creative solutions is every entrepreneur's path to success."

— Danny Veiga , Chadix

9. My Millennial Guide

Startup story: "When I graduated from college, I was excited to start my career and life as an independent adult. However, I soon found myself weighed down by over $30,000 in student loan debt. No matter how hard I worked at my finance job, I felt like I was drowning in interest payments and getting nowhere.

"I realized so many other millennials were trapped in this same cycle of debt. I knew there had to be a way to break free. So, I started educating myself on personal finance, cutting unnecessary expenses, developing side hustles, and putting every extra penny toward paying down the principal. Through determination and sacrifice, I managed to be completely debt-free in just one year.

"That experience showed me how empowering it is to solve a critical personal problem through resourcefulness and grit. I started My Millennial Guide to help other young people trapped by debt or financial struggles. By sharing what I learned, I hoped to give them the knowledge and inspiration to take control of their own situation."

Takeaway: "Starting a business to address a common problem you've personally faced allows you to intimately understand customer needs. Your own journey also gives you credibility and passion to persevere. I think if you see an unmet need out there, you have both an opportunity and a responsibility to find a solution. Turn your big idea into tangible help for those still struggling. Allow your purpose-driven business to improve lives while also achieving your dreams."

— Brian Meiggs , My Millennial Guide

10. Perfect Locks

Startup story: "During my childhood in India, I faced a lot of bullying and a lot of pressure from society about hair and beauty norms. This personal experience gave me the idea for Perfect Locks. I'd seen firsthand how these issues can impact people, and I wanted to create a company that provides hair extensions and gives people the tools they need to look and feel their best."

Takeaway: "My business was started out of a passion to solve a common issue, creating solutions that boost self-confidence and empower people to express themselves. Running a business to solve everyday issues is important because it enables entrepreneurs to make a positive difference in the world while meeting a need in the marketplace.

"By recognizing and solving problems that most people face, entrepreneurs can develop innovative solutions that make a difference in people's lives and in the world. In addition, running a business focused on solving common issues can be extremely rewarding both personally and professionally. It allows you to combine enthusiasm with purpose, motivating you to overcome challenges and reach your goals.

"Entrepreneurship allows people to do good, build value, and build a legacy by solving common problems and issues facing society. It’s not just about making money; it’s about making a difference and leaving a better world."

— Priyanka Swamy , Perfect Locks

11. Life Architekture

Startup story: "As a life coach, my journey began when I noticed a common problem: many people feel lost, without direction or clarity about their personal and professional lives. Motivated by a desire to help others find their path, I started my life-coaching business. My goal is to provide guidance, support, and strategies to help my clients uncover their passions and find meaning in their lives."

Takeaway: "I believe that starting a business is more than just filling a market gap; it's about making a real difference in people's lives. For me, the decision to become a life coach was driven by the impact I knew I could make. As entrepreneurs, we have the opportunity to transform personal insights and experiences into solutions that can benefit others. By addressing common challenges, we create positive change and empower people to have the support they need to thrive and succeed."

— Bayu Prihandito , Life Architekture

12. Yarooms

Startup story: "Yarooms got started nearly a dozen years ago when I got so sick of not knowing whether a conference room was open at my corporate programming job and decided to stick a tablet to a wall to let people mark it on a calendar. The need to solve this one annoying problem has allowed me to see other small issues that make working in the office, at home, or in a hybrid setting less efficient and enjoyable, and has led me to understand the small fixes we can do to develop solutions."

Takeaway: "It sounds silly, but if you can't find an available solution to your problem or annoyance, fix it yourself. I guarantee if it bothers you, it bothers many other people too."

— Dragos Badea , Yarooms

13. Davis Business Law

Startup story: "I started Davis Business Law to solve three problems: how law firms treat clients, how attorneys get treated in firms, and how attorneys treat the firm’s staff.

"The two things clients really hate about law firms are getting the 'mushroom treatment,' which is getting fed BS while being kept in the dark, and 'blank check syndrome,' where the client feels like they are handing over a blank check for the firm to choose the amount. We deal with these issues through a disciplined case finance where we let our clients know what work is coming down the pike and have them prepay for it if they want us to proceed. Alternatively, it gives them a chance to talk to their attorney and then decide. It takes a lot of work, but counterintuitively, it has led to a massive increase in client satisfaction.

"Law firms also tend to treat associates very poorly with excessive billing demands. Nine hours per day is not out of the ordinary. This is largely a symptom of bad financial management. We run very efficiently and routinely match the salaries of these firms at our six-hour-per-day expectation. This leads to happy lawyers with work-life balance. The kicker is they turn out better legal work because they are not stressed.

"The staff at a lot of law firms suffer from professional arrogance and disrespect from the lawyers. This is not ubiquitous, but it is common. Our hiring process focuses on weeding out attorneys with these attitudes and reinforcing our culture of respect."

Takeaway: "Dealing head-on with these three problems is the foundation of our rapid growth. There is an old saying, 'If you build a better mousetrap, the world will beat a path to your door.' That is the essence of starting a new business. You find a problem and create a solution. In our line of work, we were lucky enough to have three problems and diligent enough to develop three fixes. Implementing them is our recipe for success."

— Matthew Davis , Davis Business Law

Startup story: "As a consultant in the industrial sector, I often worked with businesses looking to diversify. The trouble was that women, LGBTQ, and BIPOC workers had been marginalized so deeply, they weren't even on the radar of most recruiting firms. It was an obvious gap in the market—I knew qualified but neglected workers were out there; they just needed to connect with the market. So, I launched Bemana, a female-majority recruiting firm specializing in the industrial and equipment sector. It wasn't about politics; it was about seeing a gap in the profession I wanted to rectify."

Takeaway: "The response was more than I expected. Not only did a variety of candidates feel comfortable working with me, but clients also began to think of me as someone progressing the sector. That forward-thinking identity helped me stand out from the crowd."

— Linn Atiyeh , Bemana

About the Author

Post by: Brett Farmiloe

Brett Farmiloe is the founder and CEO of Featured, a platform where business leaders can answer questions related to their expertise and get published in articles featuring their insights.

Company: Featured

Website: www.featured.com

Connect with me on LinkedIn .

14 Inspirational Examples of Business Ideas That Solve Problems

Full-time MBA

Full-time MBA

Climb the corporate ladder with an Ivy MBA

2024 U.S. News & World Report Best Graduate Schools

Whether you’re angling for a promotion or preparing to climb the corporate ladder, an Ivy MBA is a proven path to success. Our full-time MBA program jumped six places in the 2024  U.S. News & World Report   Best Graduate Schools rankings. The Ivy MBA moved up to #50, which places the program in the top 10 percent of all MBA programs in the country and #25 among public universities.

An Ivy MBA will enhance your leadership and management skills, engage your problem-solving abilities, and open doors.

Degree requirements Sample program Course offerings FAQ

MBA

MBA program features

  • State-of-the-art facilities.
  • Internship support.
  • Fall start, cohort-model, in which you take your MBA core classes as a member of a three to four person team.
  • Excellent career coaching.
  • International study abroad options.
  • Specializations and double-degree options.
  • Real-world consulting projects and case competitions.
  • Scholarship and assistantship opportunities.
  • STEM designated specializations in business analytics, finance, and information systems. See the full listing of MBA specializations .
  • Explore the MBA program details

Liming Pals

The Ivy MBA not only helped me to evaluate my career interests, but also equipped me with an advanced data-driven skillset so that I can confidently tackle any management position across various industries.

Liming Pals, owner, BridgeGap Translations, LLC

MBA program details

Admission and fees, apply to the full-time mba program.

The Ivy full-time MBA program admits students annually in the fall semester.

Online application

Application requirements

  • College transcripts.
  • Two letters of recommendation.
  • MBA personal essay .
  • GMAT/GRE score.
  • TOEFL, IELTS, or Duolingo English score for non-native English speakers.

You may be contacted for an interview as part of the admissions process.

Please note: If your native language is not English and you do not have a degree from Iowa State University, you must take the English Placement Test at the beginning for your first semester of enrollment. The test is administered by the Department of English. It must be taken in addition to the Test of English as a Foreign Language), which is taken as a part of the admissions process. If you do not pass this examination, you are required to take specific courses in the English 99/101 series. This coursework must be completed no later than the semester BEFORE you graduate.

Application deadlines Admission materials submitted by: Fall semester: June 15

GMAT/GRE Required

Format In-person

Length 48 credits, two years

Location Ames, Iowa

Program tuition and fees*

Iowa residents: $782/credit hour + fees* Non-residents: $1,746/credit hour + fees* International students: $1,848/credit hour + fees*

*Tuition and fee rates are subject to change Cost of attendance – click here to review a general estimate. This is a university page.

As an Ivy MBA student, you’ll work on class projects with your team while developing collaboration, leadership, and communication skills. Professional development courses include workshops and guest speakers that will enhance your networking and soft skills. In addition, you’ll apply your knowledge by serving as consultants for local non-profit organizations.

You’ll learn from faculty engaged in cutting-edge research and committed to excellence. Our internationally known faculty push you to find creative solutions based on data and other analytical metrics.

You will take your MBA core classes as a member of a team. Core classes meet on-campus in Ames Monday-Friday, 7:30 a.m.-10:50 a.m., with elective offerings meeting in the afternoon, evening, and online.

Foundational core subjects include:

  • Organizational behavior.
  • Strategic management.
  • Quantitative analysis.
  • Managerial economics.
  • Accounting.
  • Supply management.
  • Information systems.
  • Ethics and social responsibility.

Electives are offered in Ames, Des Moines, and online. 

For more information about the Ivy MBA curriculum,  contact an advisor at  [email protected] .

University Course Catalog

Specializations

You may pursue an optional area of specialization in the MBA program. Each specialization requires nine hours of focused, approved MBA elective coursework. You may also pursue a double specialization; however, no more than one approved elective (three credits) may be applied to both specializations. Check out the specialization course options .

Specializations are available in the following areas:

Accounting The accounting specialization provides accounting professionals with the necessary knowledge and skills to work effectively within today’s technology-driven, global economy.

Accounting Analytics Accounting analytics is a growing area within the accounting discipline, with industry experts frequently seeking specialized talent in analytics applied to accounting. The program is STEM-designated * .

Business Analytics The business analytics specialization is STEM-designated * and gives you an understanding of the skills, technologies, and best business practices for data-driven decision-making.

Entrepreneurship Entrepreneurship aids in the adventure of starting and managing new business ventures. The entrepreneurship specialization will give you the ability to explore innovative, flexible, and hands-on opportunities with direct access to experts, resources, and networks to advance your level of engagement.

Finance The finance specialization is STEM-designated *   and equips you with an understanding of the theoretical and practical elements of corporate financial management and investment strategies.

Healthcare Analytics and Operations Healthcare analytics and operations is a growing area of interest within business, with demand from both students and, employers and policy makers. Understanding operations, supply chains, and data to develop plans of action is necessary in today’s healthcare industry.

Information Systems The information systems specialization is  STEM-designated *   and will help you gain advanced knowledge and skills in business process management, business-oriented programming, data management systems, and communications technology.

Leadership Leadership and manager roles call for developed critical thinking skills, ethical decision-making abilities, and cultural competency. Are you interested in developing your leadership skills? Consider this specialization.

Marketing The marketing specialization coursework provides you with an understanding of marketing concepts, models, and tools used to examine how consumers behave and how markets function.

Real Estate Provides you with an understanding of real estate. This specialization is perfect for anyone looking to pursue a career in real estate, including city planners, architects, finance specialists, real estate agents, commercial realtors, building professionals, and industry investors.

Supply Chain Management Increased globalization and rapidly advancing information technology tools are prime factors affecting the movement of parts, management of inventory flow, fulfillment of customer orders, and whether dealer requirements and deadlines are met in a timely manner. The supply chain management specialization provides an overview of global information and processes across all business functions including supply management, operations, information technology, and logistics.

Contact an advisor at [email protected]   for more information.

* STEM designation is awarded to a program that has a qualified curriculum that meets the criteria. This designation allows you to increase your Optional Practical Training  (OPT) from the standard 12 months to 36 months of work authorization in the United States for pre-approved programs.  

Concurrent MBA options

If you’re an undergrad pursuing a technical degree, you may be eligible to begin pursing an MBA during your senior year. As a concurrent student, you can start our two-year program in tandem with you bachelor’s degree — meaning you can finish both programs in five years.    

Specialized curriculum plans will guide you through the process of doing both programs at once.   

Double degree options

A graduate double degree combines the comprehensive management education of the MBA with a specialized study in another professional master’s degree program. Many courses count for both degrees, saving you time and money.

Graduate certificates

The Ivy College of Business currently has six  graduate certificate programs .  Each certificate requires 12-15 credits — many of which may apply to your MBA. See your advisor for more information, or email [email protected] .

  • Business analytics
  • Digital marketplace analytics
  • Enterprise cybersecurity
  • Entrepreneurship and innovation 
  • Supply chain management 

Scholarships and assistantships

There are a limited number of quarter-time assistantships available for qualified MBA students. Anyone awarded an assistantship will be classified as an in-state student and will be given a 25 percent tuition scholarship. In addition, students on assistantship qualify for paid health insurance and a 10 hour per week stipend. Assistantships are renewable for the next year provided students meet the academic and performance requirements.

Scholarships are competitive. They range from $2,000 – $3,000 and are a one-time dispersal. All students are considered at the time of application.

For more information, contact an advisor at [email protected] .

Case competitions

All full-time MBA students participate in an internal case competition at the conclusion of their core courses. This culminating event allows students to apply the knowledge and skills learned in their core courses.

During the two-day competition, student teams are given a business scenario. They have 24 hours to analyze the case and prepare a presentation outlining their findings and recommendations. On day two, teams present their ideas to a panel of judges made up of business executives and faculty. Winning teams from each division advance to a final round where they repeat their presentation to a new panel of judges. Scholarships are awarded to the top performing teams.

Explore more case competition opportunities.

Not ready yet?

If you’re thinking of taking the leap, but your grades or work experience are holding you back, our pre-MBA program or one of our graduate certificates will help you get ready.

These programs allow you to try highly ranked Ivy College of Business classes and earn up to nine credits before officially applying.

MBA Executive Advisory Council

The MBA Executive Advisory Council members provide a valuable resource for our Ivy MBA and PMBA students.

  • Meet the MBA council members

Case Competition

As a full-time MBA student, you will participate in an internal case competition at the conclusion of your core courses. This culminating event allows you to apply the knowledge and skills learned in your core courses.

  • Explore your options

Customized career advice

Whether you’re angling for a promotion or you want to polish your resume, the Graduate Career Services team offers each student personalized, custom advice and services for your climb up the corporate ladder.

  • Graduate Career Services
  • Ivy MBA employment outcomes

next-steps

Take the next step

  • Request information
  • Consult an MBA ambassador

Connect with us

Graduate student services.

Ivy College of Business 1420 Gerdin Business Building 2167 Union Drive Ames, Iowa 50011 [email protected] 515-294-8118

  • MBA Student Directory

IMAGES

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

    business problem solving skills

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

    business problem solving skills

  3. Corporate Problem Solving Skills can Advance your Career and your

    business problem solving skills

  4. How to improve your problem solving skills and strategies

    business problem solving skills

  5. Introduction to Problem Solving Skills

    business problem solving skills

  6. 8 Important Problem Solving Skills

    business problem solving skills

VIDEO

  1. How to Solve Business Problems

  2. Learn how to do effective Problem Solving from an ex Mckinsey Consultant

  3. Problem Solving Explained

  4. HOW TO SOLVE PROBLEMS

  5. Problem Solving: 6 Skills needed to solve any problem

  6. How to Solve a Problem in Four Steps: The IDEA Model

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. Business problem solving

    Most of the problem-solving teams we are involved with have twin dilemmas of uncertainty and complexity, at times combined as truly "wicked problems." 7 A term coined in a now famous 1973 article: Horst W. J. Rittel and Melvin Webber, "Dilemmas in a general theory of planning," Policy Sciences, 1973, Number 4, pp. 155-69.

  3. 7 Problem-Solving Skills That Can Help You Be a More ...

    Learn what problem-solving is, why it's important for managers, and how to use seven skills to enhance the process. Explore the steps of the IDEAL model and find courses to improve your communication and emotional intelligence.

  4. 10 Step Process for Effective Business Problem Solving

    By following this 10-step process, you can develop your problem-solving skills and approach any issue that arises with confidence. 1. Define the problem. When a problem arises, it can be very easy to jump right into creating a solution. However, if you don't thoroughly examine what led to the problem in the first place, you may create a ...

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

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

  6. 10 Problem-solving strategies to turn challenges on their head

    One of the best ways to improve your problem-solving skills is to learn from experts. Consider enrolling in organizational training, shadowing a mentor, or working with a coach. 2. Practice. Practice using your new problem-solving skills by applying them to smaller problems you might encounter in your daily life.

  7. Effective Problem-Solving and Decision-Making

    There are 4 modules in this course. Problem-solving and effective decision-making are essential skills in today's fast-paced and ever-changing workplace. Both require a systematic yet creative approach to address today's business concerns. This course will teach an overarching process of how to identify problems to generate potential ...

  8. The Right Way to Solve Complex Business Problems

    A report from the World Economic Forum predicts that more than one-third of all jobs across all industries will require complex problem-solving as one of their core skills by 2020. The problem is ...

  9. How to Solve Problems

    How to Solve Problems. To bring the best ideas forward, teams must build psychological safety. by. Laura Amico. October 29, 2021. HBR Staff/EschCollection/Getty Images. Teams today aren't just ...

  10. How to develop a problem-solving mindset

    Check out these insights to learn how to develop a problem-solving mindset—and understand why the solution to any problem starts with you. When things get rocky, practice deliberate calm. Developing dual awareness; How to learn and lead calmly through volatile times. Future proof: Solving the 'adaptability paradox' for the long term.

  11. To Solve a Tough Problem, Reframe It

    Phase 4: Elevate. This phase involves exploring how the problem connects to broader organizational issues. It's like zooming out on a map to understand where a city lies in relation to the whole ...

  12. Effective Problem-Solving Techniques in Business

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

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

    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 to a learned hard skill. ...

  14. 7 Steps to Effective Business Problem Solving

    Acquiring problem-solving skills makes it easier for a team to tackle critical business issues or conflicts as they arise. This is a process that needs to be initiated by the management. A CEO or business owner should possess level-headed problem-solving skills to be mirrored by the employees.

  15. How to improve your problem solving skills and strategies

    6. Solution implementation. This is what we were waiting for! All problem solving strategies have the end goal of implementing a solution and solving a problem in mind. Remember that in order for any solution to be successful, you need to help your group through all of the previous problem solving steps thoughtfully.

  16. 7 Problem Solving Skills Marketing Managers Need & How to Improve Them

    4. Communication. Communication skills are the foundation of problem solving and one of the top leadership skills. As a manager, you need to be able to articulate your opinions, brainstorm with a colleague, and give feedback to a direct report. Being a good communicator also helps you relay your decision on a solution and align everyone to ...

  17. Fundamentals of Business Problem Solving

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

  18. 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 ...

  19. How To Put Problem-Solving Skills To Work in 6 Steps

    Here are the basic steps involved in problem-solving: 1. Define the problem. The first step is to analyze the situation carefully to learn more about the problem. A single situation may solve multiple problems. Identify each problem and determine its cause. Try to anticipate the behavior and response of those affected by the problem.

  20. How to Develop Problem Solving Skills: 4 Tips

    How to Develop Problem Solving Skills: 4 Tips. Learning problem-solving techniques is a must for working professionals in any field. No matter your title or job description, the ability to find the root cause of a difficult problem and formulate viable solutions is a skill that employers value. Learning the soft skills and critical thinking ...

  21. What Is Problem Solving in Business?

    Problem-solving in business is defined as implementing processes that reduce or remove obstacles that are preventing you or others from accomplishing operational and strategic business goals. In business, a problem is a situation that creates a gap between the desired and actual outcomes. In addition, a true problem typically does not have an ...

  22. An effective approach to business problem solving with Tony

    2. Know where you are. The next step is to get real: be honest about where your business is currently. Look at your financial statements. Survey your employees to get an idea of business problems to solve on the front lines. Ask your colleagues and others in your industry where they are so that you can compare.

  23. Enhance Problem-Solving Skills in Business Strategy

    In business strategy, problem-solving is a critical skill that can determine the success of your endeavors. Enhancing your problem-solving abilities involves adopting a structured approach to ...

  24. 14 Inspirational Examples of Business Ideas That Solve Problems

    14 businesses that were founded to solve a problem. 1. The ADU Guide. Startup story: "My journey began when I came across the widespread issue of limited housing options. Recognizing the need for ...

  25. Full-time MBA

    An Ivy MBA will enhance your leadership and management skills, engage your problem-solving abilities, and open doors. Degree requirements Sample program Course offerings ... The information systems specialization is STEM-designated* and will help you gain advanced knowledge and skills in business process management, business-oriented ...