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As business leaders we are bombarded with challenges that need to be addressed, situations that need to be improved, and problems that need to be solved.Of course each challenge, situation, or problem is different. Nevertheless, there are some fundamentals of problem solving.
This is the biggie. Ensure that you are solving the right problem. And ensure that you are solving the root cause of the problem and are not just treating the symptoms. There are numerous methods to determine root causes -- cause mapping, fishbone diagrams, etc.
For me, the easiest is to use the Five Whys. Ask a question and to each answer ask Why? again. Doing this for five times should get you to the root cause of the problem, which may be very different from what appeared to initially be the problem.
I have to repeat this because it is so important. Determine the real problem and solve it. Toyota is justifiably famous for its problem-solving savvy in perfecting its production methods.
According to Toyota, the key to their method is to spend relatively more time defining the problem and relatively less time on figuring out the solution.
Dig deep and get the facts to truly understand the nature of the problem and the possible solutions. Do the analysis to let the facts do the talking instead of gut instinct.
As Wharton Professor Peter Cappelli says:
I tell my MBA students that whenever you are going with your gut, you are doing something wrong. In most cases, you can actually figure it out. So, you should sit down and figure it out.
As happens on the CSI television shows, make a best guess as to the solution to the problem at the beginning -- define the initial hypothesis. Then test this initial hypothesis digging deep to determine whether the hypothesis is right or wrong. Then, adjust the hypothesis as the facts dictate. This use of hypothesis has been the basis of the scientific method for the last several hundred years.
There are two advantages to problem solving using a hypothesis. First, the initial hypothesis gives you a framework, a way of explanation, to understand all the facts and data that you are collecting. Second, by calling it a hypothesis that still needs to be proven you avoid becoming locked in on a solution and are more open to changing your mind as the facts dictate.
Any solution to a problem has to be implemented by your team. Thus, keep the solution as simple as possible. Be able to explain the solution to the problem clearly and precisely in 30 seconds or less.
Keep the action items to solve the problem to three or fewer. Think 80 / 100. Go for the solution that solves 80% of the problem, but that is 100% implementable by the team rather than the 100% solution that is unlikely to ever be properly implemented.
In situations where you have multiple problems to solve (for example, a business turnaround, new market development, or an acquisition) pluck the low hanging, but important, fruit first; solve the easy problems.
This gives momentum, shows progress, and gives your team confidence. Then focus on continuing to hit singles, not home runs. The way to success is to solve hundreds of little problems.
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