Let’s put aside the charades of whether a problem is really an “opportunity,” an “issue,” or a “challenge.” In all cases:
There is a gap between the actual state and a more favorable desired state
The gap is either not getting better, not getting better fast enough, or is getting worse
If the gap is not addressed, there will be unpleasant consequences
One, two, and three add up to one thing – it’s a problem! But now what?
Problem solving is critical when internal operations go awry, while helping prospects and customers realize the value of an offering, or for handling common annoyances – like when the TV remote stops working.
Vague problem descriptions make problem solving more difficult. Being unclear about why the problem needs to be solved leads to inefficient resource coordination. Addressing symptoms of the problem rather than its root cause keeps the fire smoldering, just waiting for the next flareup.
Here’s a way to go about solving a problem.
Step 1. Define the problem in terms of the current state, the desired state, and the rate at which the gap between them is changing. Make the description specific, quantified, and associated with a relevant timeline. Example: currently the sales of ACME Widgets are $8 million and the target is $10 million by the end of the accounting period, and the gap is stagnating.
Step 2. Describe why the gap needs to be closed in terms of consequences. In a typical business, there are plenty of problems, but not all are urgent or important. Using the example in step 1, in a multi-billion-dollar business a $2 million miss may not be a big deal in the grand scheme of things. On the other hand, if widget sales represent the entirety of the business, such a miss could mean a serious cashflow crunch, even bankruptcy.
Step 3. Analyze the problem to reveal the root cause. There a several tools and frameworks available to find root cause. The “5 whys” is a good one. A cause-and-effect diagram is another as it helps organize potential causes into similar groups. For example, is the cause of a revenue miss a sales problem, marketing problem, product quality problem, or operations problem? Often there are multiple causes to a problem. In such a case, put them on a Pareto diagram to drive focus on the “critical few.” Above all, seek data to support the analysis. This is no time for hunches.
Step 4. Fix it. Given the circumstances, the best remedy may not be the fastest, least expensive, most simple, or lowest risk. Nevertheless, apply sufficient resources to eliminate the root cause identified in step 3. Remember, the real root cause does not care about your feelings, if it’s the political third rail, or if fixing it is inconvenient or not in the budget.
Step 5. Sustain it. If not, see you again up at step 1.
Got a problem?