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Problem Solving in Business

Problem solving in business involves implementing processes to overcome obstacles preventing operational and strategic goals. It works best through a consistent system of identifying, prioritizing, analyzing root causes, developing solutions, deciding on the most effective one, and implementing it. Problem solving is important for applying standard processes, finding root causes, dealing with interruptions, planning for long term issues, seeing challenges as opportunities, and staying calm. Effective problem solving involves gathering details, brainstorming creatively, evaluating and deciding on solutions, and taking action to address root causes.

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183 views12 pages

Problem Solving in Business

Problem solving in business involves implementing processes to overcome obstacles preventing operational and strategic goals. It works best through a consistent system of identifying, prioritizing, analyzing root causes, developing solutions, deciding on the most effective one, and implementing it. Problem solving is important for applying standard processes, finding root causes, dealing with interruptions, planning for long term issues, seeing challenges as opportunities, and staying calm. Effective problem solving involves gathering details, brainstorming creatively, evaluating and deciding on solutions, and taking action to address root causes.

Uploaded by

Dapoer OmaOpa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Problem Solving in

Business
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 Problem Solving Is 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 to Solve Business Problems Effectively
There are many different problem-solving skills, but
most can be broken into general steps. Here is a four-
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.

2) Creatively Brainstorm Solutions: Alone or with a


team, state every solution you can think of. You’ll often
need to write them down. To get more solutions,
brainstorm with the employees who have the greatest
knowledge of the issue.

3) Evaluate Solutions and Make a Decision: Compare


and contrast alternative solutions based on the
feasibility of each one, including the resources needed
to implement it and the return on investment of each
one. Finally, make a firm decision on one solution that
clearly addresses the root cause of the problem.

4) Take Action: Write up a detailed plan for


implementing the solution, get the necessary
approvals, and put it into action.
What Are Problem-Solving Skills?
Problem-solving skills are specific procedures that can be
used to complete one or more of the four 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 to Improve 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 practiced and refined 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.

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