6 STEPS TO EFFECTIVE BUSINESS PROBLEM-SOLVING
The process of finding a relevant solution that matches the requirements of the business environment is business problem-solving. Many organizations grow out of problem-solving processes. In the process of problem-solving, we find a demand for the product/service and expand that idea to establish a business.
In some ways, we can say that business problem solving is what leaders do. They pick out issues in processes or hindrances and predict them in order to allow for business continuity. These problems can be due to internal issues like lack of proper resource utilization, decreasing productivity, or quality issues. In addition, organizational restructuring, etc., can also occur due to external factors like new competitor launches, poaching of clients, etc.
Approaches to Business Problem Solving
- SWOT Analysis – Firstly, map out the strengths, weaknesses, opportunities, and threats of the situation at hand. This will enable you to gain an in-depth understanding of the problem and identify influencing factors. Furthermore, it will help in identifying opportunities that can be capitalized on during the process of handling an issue.
- Design Thinking Approach – This approach allows you to look at the big picture while tackling large-scale issues in an organization. It involves picking out these simple problems, involving many people in the process of problem-solving, and ensuring the fulfillment of needs.
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Pointers for Effective Business Problem Solving
- Define the problem clearly – Sufficient time is important to understand the problem clearly along with its context of it.
- Look at it from different perspectives – The various business factors that influence the problems are important. Then we can objectively analyze a multitude of perspectives on the problem and establish a plan of action.
- Brainstorm solutions – Once the problem is comprehended, the context is set, and a team of people is ideal to come up with a multitude of ideas.
- Narrow down the solution using decision-making – After a facilitator guides the discussion, one of the solutions becomes appropriate to apply to the problem at hand.
- Set standards for acceptance of solution – Once the solution is clear, we establish the standards of acceptance of the solution. These include the impact it must have on the problem, to what extent must it mitigate the issue, within what time must the effect be significant, etc.
- Validate the application of the solution using standards – After the solution is final, a panel of members assesses whether the solution’s impact is successful and whether it passes all the standards.
Even leaders sometimes overlook the details of a problem and jump to problem-solving. Following a process that details a definitive plan of action helps focus on the core and find an appropriate solution. Hence business problem-solving is an essential skill for all employees and especially for those in the leadership role.
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