Evaluating Problem Solving in Business: A Comprehensive Guide

Each business day presents new challenges, and the way an organization handles these challenges can distinguish a top-performing company from an average one.

To ensure a company’s problem-solving strategy is an asset, not a liability, it’s crucial to assess not only the success in turning challenges into opportunities but also the methods used to address these challenges.

Here are key factors to consider when evaluating a business’s problem-solving capabilities:

1. Accurate Problem Identification and Definition

Evaluate whether the problem was correctly identified and defined. This involves ensuring the problem was conceptualized in a way that allowed for identifying multiple potential root causes. For instance, the issue “a decrease in sales” could be due to various factors like increased competition, insufficient advertising, or inadequate sales training.

2. Correct Identification of the Root Problem

Determine if the true root problem was addressed, rather than just a symptom. For example, if the root problem is poor product quality and the symptom is declining sales, simply providing more sales tools won’t resolve the underlying issue.

3. Utilization of Pertinent Data

Review the data used to make decisions. Assess the reliability and completeness of the data sources to ensure that the decision-making process was well-informed.

4. Appropriate Resource Allocation

Evaluate whether the right resources were utilized to find the solution. This includes ensuring that key personnel were selected for their expertise rather than their job titles, appropriate project sponsors and stakeholders were involved, and external experts were consulted if internal knowledge was lacking.

5. Feasibility of the Solution

Assess the feasibility of the agreed-upon solution. Determine if the solution was the best among the alternatives considered and if a sufficient number of options were explored to develop a high-quality solution.

6. Prioritization of Potential Solutions

Consider if the solutions were prioritized appropriately. Ensure that decisions were not made solely based on factors like implementation time or cost without considering the overall impact.

7. Fair Assessment of Options

Verify that the set of potential solutions was evaluated fairly. This includes consulting experts during the decision-making process and thoroughly weighing the pros and cons of each alternative.

8. Efficiency of the Decision-Making Process

Examine whether the decision-making process facilitated the timely identification of an appropriate solution. This involves assessing intermediate deadlines and the operational costs associated with any delays.

9. Clear Assignment of Project Responsibilities

Ensure that responsibilities for implementing the solution were clearly assigned to appropriate individuals, ensuring accountability and clarity in execution.

10. Success Measures and Outcomes

Evaluate the measures established to assess the success of the solution. This includes determining if the solution was implemented successfully within the designated timeframe, according to the plan, and if it resolved the issue without causing unintended side effects.

By systematically evaluating these aspects, a business can enhance its problem-solving capabilities, making it better equipped to turn challenges into opportunities and maintain a competitive edge.