What is Problem Solving?
Problem solving is an often cited and sought after skillset that many employers are looking for. Whether it’s for entry level positions, mid management or executives every job requires some level of problem solving. It is crucial to the organization’s success to be able to find people with these skills and put them in roles that will make a difference. Unfortunately, problem solving is somewhat of an undefined term. Just what does it mean? How do people solve problems? How does one become a better problem solver?
The ability to effectively tackle these issues has become a crucial skill for organizations aiming not only to survive but to thrive. Business problem solving is both an art and a science, creative and analytical thinking. It requires a systematic approach and innovative thinking, both at the same time.
What is Problem Solving?
Problem-solving is the process of identifying, analyzing, and resolving difficulties or obstacles to achieve desired goals or outcomes. It involves systematically assessing the situation, exploring possible solutions, evaluating their effectiveness, and implementing the most appropriate course of action.
This definition puts problem solving in a very unique place. It is juxtaposed at the crossroads of all kinds of skills that are valuable, sought after and needed by businesses. Moreover, because problem-solving is involved in both the synthesis of ideas and the implementation of these ideas to resolve a problem, it requires mental, interpersonal and managerial abilities. In the mental domain it requires creativity, analytical ability, and the ability to make decisions. Yet at the same time, it also requires skills like teamwork, cooperation, flexibility and brainstorming, confidence and perseverance.
How do Businesses Solve Problems?
Organizations can largely be broken down into two camps: Those that practice a formalized problem solving approach that don’t. But regardless of how formalized this program is, all businesses solve problems. Whether its figuring out what a customer wants and needs, how to most effectively get the products to the store, how to manage expenses, grow the business, build brand awareness, or attract and retain employees, businesses are in the business of solving problems.
It can be broadly observed that as organizations gain in maturity, become larger, use better management techniques and structures, and integrate data into decision making that these problem formalized problem solving strategies become more important to the organization. This is because with this organizational maturity comes more complexity and difficult problems that need to be encountered and solved.
Problem Solving Frameworks and Methods
Below are just some popular problem solving frameworks that organizations use.
Lean: Lean thinking, inspired by the Toyota Production System, is centered around the elimination of waste and the optimization of processes. The core principles of Lean involve identifying value from the customer's perspective, mapping the value stream, creating flow, establishing pull, and relentlessly pursuing perfection. By focusing on customer value and eliminating non-value-added activities, organizations can streamline their operations, reduce costs, and enhance overall efficiency. This method is very popular in clinical healthcare settings.
Six Sigma: Six Sigma is a data-driven methodology aimed at minimizing defects and variations in processes. Rooted in statistical analysis, Six Sigma seeks to achieve near-perfect performance by defining, measuring, analyzing, improving, and controlling processes (DMAIC). By applying statistical tools and techniques, organizations can identify and eliminate sources of variation, leading to improved product or service quality and increased customer satisfaction.
Human-Centered Design: In a world where customer experience is paramount, Human-Centered Design (HCD) places the user at the core of problem-solving efforts. HCD involves understanding the needs, desires, and behaviors of users through empathy, ideation, and prototyping. By actively involving end-users in the design process, businesses can create solutions that resonate with their target audience, ultimately leading to products and services that meet real-world needs.
Agile Methodology: Agile, initially designed for software development, has transcended its origins and become a widely adopted approach across various industries. Agile is characterized by its iterative and collaborative nature, emphasizing flexibility and responsiveness to change. Through short development cycles, continuous feedback, and adaptive planning, Agile enables teams to respond quickly to evolving requirements and market dynamics, fostering innovation and efficiency.
While each methodology brings its unique strengths to the table while also leaving blind spots. Organizations often find success in integrating multiple approaches. For instance, combining Lean and Six Sigma (Lean Six Sigma) is a popular approach that can create a powerful synergy by addressing both efficiency and quality simultaneously. Human-Centered Design can complement Agile by ensuring that the end-user's perspective is at the forefront of iterative development cycles.
The Hybrid Approach:
A one-size-fits-all solution is often inadequate for organizations looking to introduce a problem-solving framework or augment an existing one. Organizations are increasingly adopting a hybrid approach that combines elements of different methodologies to create a customized problem-solving framework. The Problem Solving Academy encourages and teaches this approach because the hybrid approach allows businesses to be more flexible and tailor their problem-solving strategies to the specific challenges they face.
Benefits of the Hybrid Approach to Effective Problem-Solving:
Enhanced Efficiency: Adopting methodologies such as Lean and Six Sigma can lead to streamlined processes, reduced waste, and increased operational efficiency. By identifying and eliminating bottlenecks, organizations can optimize resource utilization and enhance overall productivity.
Improved Quality: Focus on reducing variations contributes to improved product or service quality. This not only results in higher customer satisfaction but also helps in building a reputation for delivering reliable and consistent solutions.
Innovation and Customer-Centricity: Foster innovation by prioritizing user needs and enabling quick adaptation to changing market demands. This customer-centric approach not only drives product and service innovation but also enhances brand loyalty.
Adaptability to Change: Emphasis on flexibility and adaptability equips organizations to navigate rapidly changing business landscapes. This is particularly crucial in industries where staying ahead of the competition requires the ability to pivot quickly in response to emerging trends.
Conclusion:
The the importance of business problem solving cannot be overstated in today's competitive and dynamic business environment. As businesses grow, mature, and become more data-driven they will naturally need to confront the question of how to solve problems in a structured and formal way. Methods and Frameworks such as Lean, Six Sigma, Human-Centered Design, and Agile offer businesses effective tools to address challenges systematically and innovatively. While each methodology has its strengths, the integration of these approaches through a hybrid model provides organizations with more flexibility to tailor their problem-solving strategies to unique situations. By embracing a culture of problem solving, continuous improvement and agility, businesses can not only overcome current challenges but also position themselves for sustained success in the future.
