Entrepreneurship & Sales

Lesson 5 Problem-Solving Skills

Contents
• Problem-Solving Skills
• Elements of Problem Identification
• The Problem-Solving Process
• 7 Steps for Effective Problem Solving
• DMAIC – 5 Steps to Solving all Your Problems
• Applying Root Cause Analysis
• Developing Creative Solution Process
Problem-Solving Skills

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

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

• Researching patterns to understand why revenue decreased last quarter

• Experimenting with a new marketing channel to increase website sign-ups
• Brainstorming content types to share with potential customers
• Testing calls to action to see which ones drive the most product sales
• Implementing a new workflow to automate a team process and increase productivity
Elements of Problem Identification

• Have you ever deployed your best team to resolve a problem and have the team execute
flawlessly, only to find that the problem that was solved did not address the customer’s
real need?

• This common scenario is often the source of widespread customer dissatisfaction and is
all too prevalent in today’s nonprofit business environment where valuable resources are
needlessly and inadvertently wasted because problems are not accurately identified.
Elements of Problem Identification

• Creative Problem Solving (CPS) is a way of solving problems or identifying opportunities

when conventional thinking has failed. It encourages you to find fresh perspectives and
come up with innovative solutions, so that you can formulate a plan to overcome
obstacles and reach your goals.

• It is imperative to understand the problem and what makes the CPS process effective is
that it provides a structure, language, and tools for targeting opportunities.

• The problem identification framework under the CPS model begins with the ‘Task
Appraisal Process.”
Elements of Problem Identification

The Task Appraisal Process has FOUR elements:

• People – Are the right people working on the tasks; do they have the authority and
responsibility to take action; what level of sponsorship is being provided; do the people
have the necessary knowledge and skill to address the problem?

• Outcomes – Is there a clear understanding of the desired outcome; is a current process

being improved or are a new process being created; what are the most and least
important aspects of the problem; how is the outcome that is desired different from what
exists currently?
Elements of Problem Identification

• Context – What has been tried before to address this issue; does it link to the strategic
priorities; are there the necessary resources (time, money, people, etc.)?

• Method – How familiar are the people with the problem-solving tools / methods that will be
used?
Elements of Problem Identification

The Task Appraisal Process can be applied in a wide range of scenarios. Here are a few
examples:

Interviewing clients to evaluate and determine which problems to address and more
effectively position services.

Leading a group of cross functional leaders to develop a consensus on the important issue
to solve and streamline the engagement.

Improving or repairing relationships with a previous client or organization.

Elements of Problem Identification

Identifying the Problem:

• To lead customers in the problem-solving process, it is important to determine the

customer’s level of understanding of their problem. The selection of appropriate tools and
techniques to facilitate the process will depend on the specificity of the issue.
• Are they broad challenges or opportunities? (e.g., “My grant process takes too long.”)
• Do they need to close the gap between current and future state?(e.g., “How can we better
understand the grant approval process?”)
• Do they understand their current state? (e.g., “Can we articulate the current cycle time,
how much does it cost today? Do we have the data to support our current assumptions?”)
Elements of Problem Identification

Tools and Techniques:

• Structuring and framing the issues at the front end of the process is critical to successfully
implementing the process.

• This approach provides users with a variety of tools ranging from idea generation to
action planning and these tools used in conjunction with the process guidelines allow the
user to achieve the desired result.
Elements of Problem Identification

The power is in the execution and the tools for executing the process are categorized into
three areas:

• Generating ideas – Incremental change or step change will determine the appropriate and
most productive use of the appropriate available tools.

• Focusing – There are numerous tools that can compress a large quantity of options or
others that are suited for in-depth analysis and development.

• Facilitation – It is a leadership role. They need to know how to use a range of creativity
methods, tools, and techniques as well as manage group dynamics and move the group
toward the desired outcome. The highly skilled facilitator will understand, plan, and
manage the process to reach the desired outcome.
 Dumbest Idea First
Give me your dumbest Idea to solve these issues.
Activity 1 Any answer can be written down:

Scenario 1:

You are off to a job interview, along your way you decide to buy
coffee to give you a bit more energy for the interview. Bad luck!, you
poured it on your shirt and have no change in the car.

You do not have time to go back and change. What do you do?
(Remember dumbest ideas win)
Activity 1

Scenario 2:
You start a new company and you manage to hire 10 new
employees to work for you. However these employees are addicted
to their phones.

What would you do?

(Remember dumbest ideas win)

Applying Root Cause Analysis

What is Root Cause Analysis?

Root cause analysis (RCA) is the process of discovering the root causes of problems in
order to identify appropriate solutions. RCA assumes that it is much more effective to
systematically prevent and solve for underlying issues rather than just treating ad hoc
symptoms and putting out fires.
Root cause analysis can be performed with a collection of principles, techniques, and
methodologies that can all be leveraged to identify the root causes of an event or trend.
Looking beyond superficial cause and effect, RCA can show where processes or systems
failed or caused an issue in the first place.
Applying Root Cause Analysis

Core Principles:

• Focus on correcting and remedying root causes rather than just symptoms.
• Don’t ignore the importance of treating symptoms for short term relief.
• Realize there can be, and often are, multiple root causes.
• Focus on HOW and WHY something happened, not WHO was responsible.
• Be methodical and find concrete cause-effect evidence to back up root cause claims.
• Provide enough information to inform a corrective course of action.
• Consider how a root cause can be prevented (or replicated) in the future.
Applying Root Cause Analysis

The 5 Whys:

Let’s think back to our football concussion example. First, our player will present a problem:
Why do I have such a bad headache? This is our first WHY. First answer: Because I can’t
see straight.

Second why: Why can’t you see straight? Second answer: Because I my head hit the
ground.

Third why: Why did your head hit the ground? Third answer: I got hit tackled to the ground
and hit my head hard.
Applying Root Cause Analysis

Fourth why: Why did hitting the ground hurt so much? Fourth answer: Because I wasn’t
wearing a helmet.

Fifth why: Why weren’t you wearing a helmet? Fifth answer: Because we didn’t have
enough helmets in our locker room. Aha. After these five questions, we discover that the
root cause of the concussion was most likely from a lack of available helmets.
Applying Root Cause Analysis
Applying Root Cause Analysis
The Problem-Solving Process

• Problem solving is the act of defining a problem; determining the cause of the problem;
identifying, prioritizing, and selecting alternatives for a solution; and implementing a
solution.
The Problem-Solving Process
The Problem-Solving Process

• In order to effectively manage and run a successful organization, leadership must guide
their employees and develop problem-solving techniques.

• Finding a suitable solution for issues can be accomplished by following the basic four-
step problem-solving process and methodology outlined below.
The Problem-Solving Process

Define the Problem:

• Differentiate fact from opinion

• Specify underlying causes
• Consult each faction involved for information
• State the problem specifically
• Identify what standard or expectation is violated
• Determine in which process the problem lies
• Avoid trying to solve the problem without data
The Problem-Solving Process

Generate Alternative Solutions:

• Postpone evaluating alternatives initially

• Include all involved individuals in the generating of alternatives
• Specify alternatives consistent with organizational goals
• Specify short- and long-term alternatives
• Brainstorm on others' ideas
• Seek alternatives that may solve the problem
The Problem-Solving Process

Evaluate and Select an Alternative:

• Evaluate alternatives relative to a target standard

• Evaluate all alternatives without bias
• Evaluate alternatives relative to established goals
• Evaluate both proven and possible outcomes
• State the selected alternative explicitly
The Problem-Solving Process

Implement and Follow-up on the Solution:

• Plan and implement a pilot test of the chosen alternative

• Gather feedback from all affected parties
• Seek acceptance or consensus by all those affected
• Establish ongoing measures and monitoring
• Evaluate long-term results based on final solution
7 Steps for Effective Problem Solving
7 Steps for Effective Problem Solving

Step 1 Identifying the Problem:

• Ask yourself what the problem is. There may be multiple issues within a single situation.
Make a list of these issues and define why each one is a problem to you.

• Focus on behaviors rather than on yourself or a person (Incorrect example: “The problem
is that I am stupid.”) (Correct example: “The problem is that I easily allow others to betray
or disappoint me because I trust people too quickly.”).
7 Steps for Effective Problem Solving

Step 2 Defining Goals:

• Try to define your goals specifically, while making them as realistic and attainable as
possible. An example of a poor or broad goal is “I want to be happy.”

• First, define what happiness means to you and what you can do to feel happier overall.
Try to form your goals in the sense of actions you can take to achieve the desired goal.
7 Steps for Effective Problem Solving

Step 3 Brainstorming:

• Take time to brainstorm possible ways to resolve the problem. Do not rush this process-
People often want to prevent and solve problems before they even appear.

• Write down all ideas, even the ones that seem absurd or bizarre. Try to find 6-8 varying
alternatives when resolving a particular problem.
7 Steps for Effective Problem Solving

Step 4 Assessing Alternatives:

• For every alternative you formed in the previous step, weigh the positive effects and
negative consequences that each solution would bring.

• For every and any option, determine its advantages and its risks.
7 Steps for Effective Problem Solving

Step 5 Choosing the Solution:

• Carefully weigh all solutions. The best solution is not necessarily the option with the most
pros and/or the least cons. Think about what means more to you, which solution can
highlight the positive effects that matter the most to you, and which solution produces the
mildest consequences.

• When you decide on a solution, it is important to create a timeline of when you intend to
achieve your ultimate goal.
7 Steps for Effective Problem Solving

Step 6 Active Execution of the Chosen Solution:

• Don’t worry about failure. In this phase, concentrate on the journey that will lead you to
your goal- don’t worry yourself with potential problems.
7 Steps for Effective Problem Solving

Step 7 Evaluation:

• It’s time to evaluate your success. If you were successful, congratulations! If not, no
worries. Maybe you didn’t quite choose the right solution, or the situation changed. You
have definitely learned something.
• Take this newfound knowledge, return to the beginning steps, and try again!
DMAIC – 5 Steps to Solving all Your Problems

DMAIC which stands for Define, Measure, Analyze, Improve and Control is a powerful
problem-solving tool. Given time DMAIC could solve all your company’s problems using
data from the process. When used cyclically DMAIC in a key component of continuous
improvement. Its ultimate goal is to stabilize and optimize a process.

This 5 step method will lead you to the correct solution to your problems again and again.
Using a set of lean sigma tools to understand the process and then using the data from the
process to create lasting solutions.
DMAIC – 5 Steps to Solving all Your Problems
DMAIC – 5 Steps to Solving all Your Problems

1. Define- Define the challenge or improvement opportunity:

There are many issues in a process, and it would be overwhelming to try fix everything.
DMAIC projects should be specific and small enough to be completed in 3-6 months.

A good rule of thumb is for your project to be “SMART” (Specific, Measureable, Achievable,
Relevant, Time bound).
DMAIC – 5 Steps to Solving all Your Problems

Tools you can use in this phase:

• Is / is not – allows you to scope the problem

• SIPOC (suppliers, inputs, process, outputs, customers) – understand what’s involved in
the process
• Project selection matrix – to determine the best issue to tackle
• Project charter – Get commitment from the team and the management
• Gantt chart – track the project and supply a finish date
DMAIC – 5 Steps to Solving all Your Problems

2. Measure:

This step requires more time than define and aims to explain the problem or opportunity
with data. Understanding the current state of the process will highlight where the opportunity
is and allow for a cost benefit analysis at the end.

A process map is a helpful tool in completing this stage.

DMAIC – 5 Steps to Solving all Your Problems

Tools you can use in this phase:

• Process maps
• Check sheets
• Pareto diagrams
• Histograms
• Cause and effect diagrams
• Scatter diagrams
• Run charts/ Trend charts/ control chart
DMAIC – 5 Steps to Solving all Your Problems
DMAIC – 5 Steps to Solving all Your Problems

3. Analyse
In this step you will Analyse the data collected during the measure phase. A review of the
process map and the diagrams, histograms and charts from the raw data will allow you to
see sources of variation. The root causes of the issue or the opportunities for improvement
will become visible using some more lean sigma tools.
In a sentence this step of the DMAIC process wants to identify gaps between current
performance and the goal process performance.
DMAIC – 5 Steps to Solving all Your Problems

Tools you can use in this stage:

• Any charts or diagrams from the measure phase as data sources

• 5 whys
• Cause and effect chart
• Design of Experiments (DOE)
DMAIC – 5 Steps to Solving all Your Problems

4. Improve:

At the Improve stage you have amassed all the information you need to have a thorough
understanding of the current process and the gaps between this and the goal process. The
root cause of a specific issues will have become visible.
The next step is to come up with a range of solutions or countermeasures. Brainstorming
with the team is helpful here to get insight into what changes will work for everyone invested
in the process.
Once a viable solution has been agreed upon it is important to complete a risk analysis. A
risk analysis ensures that the changes will not create additional problems in the process or
cause quality concerns.
Finally, the changes can be inputted, and the new process can be implemented.
DMAIC – 5 Steps to Solving all Your Problems

5. Control:

The final step in the DMAIC process is Control. Here we want to control the improved
process to hold the gains. We must acknowledge that we are creatures of habit who can fall
into old patterns and revert to the old way of doing something.

In the control phase you must make a plan to avoid this. A DMAIC project should
demonstrate sustainability.

This can be done by keeping control charts and control plans. It could also mean having
weekly PIT meetings to monitor the performance of the process.
DMAIC – 5 Steps to Solving all Your Problems

Tools you can use in this phase:

• Failure mode & effect analysis (FMEA)

• Control charts (voice of the process)
• Control Plans (ISO/TS)
Q&A Session