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10 Step Process for Effective Business Problem Solving

Posted august 3, 2021 by harriet genever.

When you start a small business or launch a startup, the one thing you can count on is the unexpected. No matter how thoroughly you plan, forecast , and test, problems are bound to arise. This is why as an entrepreneur, you need to know how to solve business problems effectively.

What is problem solving in business?

Problem solving in business relates to establishing processes that mitigate or remove obstacles currently preventing you from reaching strategic goals . These are typically complex issues that create a gap between actual results and your desired outcome. They may be present in a single team, operational process, or throughout your entire organization, typically without an immediate or obvious solution. 

To approach problem solving successfully, you need to establish consistent processes that help you evaluate, explore solutions, prioritize execution, and measure success. In many ways, it should be similar to how you review business performance through a monthly plan review . You work through the same documentation, look for gaps, dig deeper to identify the root cause, and hash out options. Without this process, you simply cannot expect to solve problems efficiently or effectively. 

Why problem solving is important for your business

While some would say problem-solving comes naturally, it’s actually a skill you can grow and refine over time. Problem solving skills will help you and your team tackle critical issues and conflicts as they arise. It starts from the top. You as the business owner or CEO needing to display the type of level-headed problem solving that you expect to see from your employees.

Doing so will help you and your staff quickly deal with issues, establish and refine a problem solving process, turn challenges into opportunities, and generally keep a level head. Now, the best business leaders didn’t just find a magic solution to solve their problems, they built processes and leveraged tools to find success. And you can do the same.

By following this 10-step process, you can develop your problem-solving skills and approach any issue that arises with confidence. 

1. Define the problem

When a problem arises, it can be very easy to jump right into creating a solution. However, if you don’t thoroughly examine what led to the problem in the first place, you may create a strategy that doesn’t actually solve it. You may just be treating the symptoms.

For instance, if you realize that your sales from new customers are dropping, your first inclination might be to rush into putting together a marketing plan to increase exposure. But what if decreasing sales are just a symptom of the real problem? 

When you define the problem, you want to be sure you’re not missing the forest for the trees. If you have a large issue on your hands, you’ll want to look at it from several different angles:

Competition 

Is a competitor’s promotion or pricing affecting your sales? Are there new entrants in your market? How are they marketing their product or business?

Business model 

Is your business model sustainable? Is it realistic for how fast you want to grow? Should you explore different pricing or cost strategies?

Market factors

How are world events and the nation’s economy affecting your customers and your sales?

Are there any issues affecting your team? Do they have the tools and resources they need to succeed? 

Goal alignment 

Is everyone on your team working toward the same goal ? Have you communicated your short-term and long-term business goals clearly and often?

There are a lot of ways to approach the issue when you’re facing a serious business problem. The key is to make sure you’re getting a full snapshot of what’s going on so you don’t waste money and resources on band-aid solutions. 

Going back to our example, by looking at every facet of your business, you may discover that you’re spending more on advertising than your competitors already. And instead, there’s a communication gap within your team that’s leading to the mishandling of new customers and therefore lost sales. 

If you jumped into fixing the exposure of your brand, you would have been dumping more money into an area you’re already winning. Potentially leading to greater losses as more and more new customers are dropped due to poor internal communication.

This is why it’s so vital that you explore your blind spots and track the problem to its source.

2. Conduct a SWOT analysis

All good businesses solve some sort of problem for customers. What if your particular business problem is actually an opportunity, or even a strength if considered from a different angle? This is when you’d want to conduct a SWOT analysis to determine if that is in fact the case.

SWOT is a great tool for strategic planning and bringing multiple viewpoints to the table when you’re looking at investing resources to solve a problem. This may even be incorporated in your attempts to identify the source of your problem, as it can quickly outline specific strengths and weaknesses of your business. And then by identifying any potential opportunities or threats, you can utilize your findings to kickstart a solution. 

3. Identify multiple solutions with design thinking

As you approach solving your problem, you may want to consider using the design thinking approach . It’s often used by organizations looking to solve big, community-based problems. One of its strengths is that it requires involving a wide range of people in the problem-solving process. Which leads to multiple perspectives and solutions arising.

This approach—applying your company’s skills and expertise to a problem in the market—is the basis for design thinking.

It’s not about finding the most complex problems to solve, but about finding common needs within the organization and in the real world and coming up with solutions that fit those needs. When you’re solving business problems, this applies in the sense that you’re looking for solutions that address underlying issues—you’re looking at the big picture.

4. Conduct market research and customer outreach

Market research and customer outreach aren’t the sorts of things small business owners and startups can do once and then cross off the list. When you’re facing a roadblock, think back to the last time you did some solid market research or took a deep dive into understanding the competitive landscape .

Market research and the insights you get from customer outreach aren’t a silver bullet. Many companies struggle with what they should do with conflicting data points. But it’s worth struggling through and gathering information that can help you better understand your target market . Plus, your customers can be one of the best sources of criticism. It’s actually a gift if you can avoid taking the negatives personally .

The worst thing you can do when you’re facing challenges is isolating yourself from your customers and ignore your competition. So survey your customers. Put together a competitive matrix . 

5. Seek input from your team and your mentors

Don’t do your SWOT analysis or design thinking work by yourself. The freedom to express concerns, opinions, and ideas will allow people in an organization to speak up. Their feedback is going to help you move faster and more efficiently. If you have a team in place, bring them into the discussion. You hired them to be experts in their area; use their expertise to navigate and dig deeper into underlying causes of problems and potential solutions.

If you’re running your business solo, at least bring in a trusted mentor. SCORE offers a free business mentorship program if you don’t already have one. It can also be helpful to connect with a strategic business advisor , especially if business financials aren’t your strongest suit.

Quoting Stephen Covey, who said that “strength lies in differences, not in similarities,” speaking to the importance of diversity when it comes to problem-solving in business. The more diverse a team is , the more often innovative solutions to the problems faced by the organization appear.

In fact, it has been found that groups that show greater diversity were better at solving problems than groups made up specifically of highly skilled problem solvers. So whoever you bring in to help you problem-solve, resist the urge to surround yourself with people who already agree with you about everything.

6. Apply lean planning for nimble execution

So you do your SWOT analysis and your design thinking exercise. You come up with a set of strong, data-driven ideas. But implementing them requires you to adjust your budget, or your strategic plan, or even your understanding of your target market.

Are you willing to change course? Can you quickly make adjustments? Well in order to grow, you can’t be afraid to be nimble . 

By adopting the lean business planning method —the process of revising your business strategy regularly—you’ll be able to shift your strategies more fluidly. You don’t want to change course every week, and you don’t want to fall victim to shiny object thinking. But you can strike a balance that allows you to reduce your business’s risk while keeping your team heading in the right direction.

Along the way, you’ll make strategic decisions that don’t pan out the way you hoped. The best thing you can do is test your ideas and iterate often so you’re not wasting money and resources on things that don’t work. That’s Lean Planning .

7. Model different financial scenarios

When you’re trying to solve a serious business problem, one of the best things you can do is build a few different financial forecasts so you can model different scenarios. You might find that the idea that seemed the strongest will take longer than you thought to reverse a negative financial trend. At the very least you’ll have better insight into the financial impact of moving in a different direction.

The real benefit here is looking at different tactical approaches to the same problem. Maybe instead of increasing sales right now, you’re better off in the long run if you adopt a strategy to reduce churn and retain your best customers. You won’t know unless you model a few different scenarios. You can do this by using spreadsheets, and a tool like LivePlan can make it easier and quicker.

8. Watch your cash flow

While you’re working to solve a challenging business problem, pay particular attention to your cash flow and your cash flow forecast . Understanding when your company is at risk of running out of cash in the bank can help you be proactive. It’s a lot easier to get a line of credit while your financials still look good and healthy, than when you’re one pay period away from ruin.

If you’re dealing with a serious issue, it’s easy to start to get tunnel vision. You’ll benefit from maintaining a little breathing room for your business as you figure out what to do next.

9. Use a decision-making framework

Once you’ve gathered all the information you need, generated a number of ideas, and done some financial modeling, you might still feel uncertain. It’s natural—you’re not a fortune-teller. You’re trying to make the best decision you can with the information you have.

This article offers a really useful approach to making decisions. It starts with putting your options into a matrix like this one:

Use this sort of framework to put everything you’ve learned out on the table. If you’re working with a bigger team, this sort of exercise can also bring the rest of your team to the table so they feel some ownership over the outcome.

10. Identify key metrics to track

How will you know your problem is solved? And not just the symptom—how will you know when you’ve addressed the underlying issues? Before you dive into enacting the solution, make sure you know what success looks like.

Decide on a few key performance indicators . Take a baseline measurement, and set a goal and a timeframe. You’re essentially translating your solution into a plan, complete with milestones and goals. Without these, you’ve simply made a blind decision with no way to track success. You need those goals and milestones to make your plan real .

Problem solving skills to improve

As you and your team work through this process, it’s worth keeping in mind specific problem solving skills you should continue to develop. Bolstering your ability, as well as your team, to solve problems effectively will only make this process more useful and efficient. Here are a few key skills to work on.

Emotional intelligence

It can be very easy to make quick, emotional responses in a time of crisis or when discussing something you’re passionate about. To avoid making assumptions and letting your emotions get the best of you, you need to focus on empathizing with others. This involves understanding your own emotional state, reactions and listening carefully to the responses of your team. The more you’re able to listen carefully, the better you’ll be at asking for and taking advice that actually leads to effective problem solving.

Jumping right into a solution can immediately kill the possibility of solving your problem. Just like when you start a business , you need to do the research into what the problem you’re solving actually is. Luckily, you can embed research into your problem solving by holding active reviews of financial performance and team processes. Simply asking “What? Where? When? How?” can lead to more in-depth explorations of potential issues.

The best thing you can do to grow your research abilities is to encourage and practice curiosity. Look at every problem as an opportunity. Something that may be trouble now, but is worth exploring and finding the right solution. You’ll pick up best practices, useful tools and fine-tune your own research process the more you’re willing to explore.

Brainstorming

Creatively brainstorming with your team is somewhat of an art form. There needs to be a willingness to throw everything at the wall and act as if nothing is a bad idea at the start. This style of collaboration encourages participation without fear of rejection. It also helps outline potential solutions outside of your current scope, that you can refine and turn into realistic action.

Work on breaking down problems and try to give everyone in the room a voice. The more input you allow, the greater potential you have for finding the best solution.

Decisiveness

One thing that can drag out acting upon a potential solution, is being indecisive. If you aren’t willing to state when the final cutoff for deliberation is, you simply won’t take steps quickly enough. This is when having a process for problem solving comes in handy, as it purposefully outlines when you should start taking action.

Work on choosing decision-makers, identify necessary results and be prepared to analyze and adjust if necessary. You don’t have to get it right every time, but taking action at the right time, even if it fails, is almost more vital than never taking a step.  

Stemming off failure, you need to learn to be resilient. Again, no one gets it perfect every single time. There are so many factors in play to consider and sometimes even the most well-thought-out solution doesn’t stick. Instead of being down on yourself or your team, look to separate yourself from the problem and continue to think of it as a puzzle worth solving. Every failure is a learning opportunity and it only helps you further refine and eliminate issues in your strategy.

Problem solving is a process

The key to effective problem-solving in business is the ability to adapt. You can waste a lot of resources on staying the wrong course for too long. So make a plan to reduce your risk now. Think about what you’d do if you were faced with a problem large enough to sink your business. Be as proactive as you can.

Editor’s note: This article was originally published in 2016. It was updated in 2021.

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Harriet Genever

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How to Solve Problems

• Laura Amico

To bring the best ideas forward, teams must build psychological safety.

Teams today aren’t just asked to execute tasks: They’re called upon to solve problems. You’d think that many brains working together would mean better solutions, but the reality is that too often problem-solving teams fall victim to inefficiency, conflict, and cautious conclusions. The two charts below will help your team think about how to collaborate better and come up with the best solutions for the thorniest challenges.

• Laura Amico is a former senior editor at Harvard Business Review.

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Effective Problem-Solving Techniques in Business

January 20, 2023

Purdue Online

Problem solving is an increasingly important soft skill for those in business. The Future of Jobs Survey by the World Economic Forum drives this point home. According to this report, complex problem solving is identified as one of the top 15 skills that will be sought by employers in 2025, along with other soft skills such as analytical thinking, creativity and leadership.

Dr. Amy David , clinical associate professor of management for supply chain and operations management, spoke about business problem-solving methods and how the Purdue University Online MBA program prepares students to be business decision-makers.

Why Are Problem-Solving Skills Essential in Leadership Roles?

Every business will face challenges at some point. Those that are successful will have people in place who can identify and solve problems before the damage is done.

“The business world is constantly changing, and companies need to be able to adapt well in order to produce good results and meet the needs of their customers,” David says. “They also need to keep in mind the triple bottom line of ‘people, profit and planet.’ And these priorities are constantly evolving.”

To that end, David says people in management or leadership need to be able to handle new situations, something that may be outside the scope of their everyday work.

“The name of the game these days is change—and the speed of change—and that means solving new problems on a daily basis,” she says.

The pace of information and technology has also empowered the customer in a new way that provides challenges—or opportunities—for businesses to respond.

“Our customers have a lot more information and a lot more power,” she says. “If you think about somebody having an unhappy experience and tweeting about it, that’s very different from maybe 15 years ago. Back then, if you had a bad experience with a product, you might grumble about it to one or two people.”

David says that this reality changes how quickly organizations need to react and respond to their customers. And taking prompt and decisive action requires solid problem-solving skills.

What Are Some of the Most Effective Problem-Solving Methods?

David says there are a few things to consider when encountering a challenge in business.

“When faced with a problem, are we talking about something that is broad and affects a lot of people? Or is it something that affects a select few? Depending on the issue and situation, you’ll need to use different types of problem-solving strategies,” she says.

Using Techniques

There are a number of techniques that businesses use to problem solve. These can include:

• Five Whys : This approach is helpful when the problem at hand is clear but the underlying causes are less so. By asking “Why?” five times, the final answer should get at the potential root of the problem and perhaps yield a solution.
• Gap Analysis : Companies use gap analyses to compare current performance with expected or desired performance, which will help a company determine how to use its resources differently or adjust expectations.
• Gemba Walk : The name, which is derived from a Japanese word meaning “the real place,” refers to a commonly used technique that allows managers to see what works (and what doesn’t) from the ground up. This is an opportunity for managers to focus on the fundamental elements of the process, identify where the value stream is and determine areas that could use improvement.
• Porter’s Five Forces : Developed by Harvard Business School professor Michael E. Porter, applying the Five Forces is a way for companies to identify competitors for their business or services, and determine how the organization can adjust to stay ahead of the game.
• Six Thinking Hats : In his book of the same name, Dr. Edward de Bono details this method that encourages parallel thinking and attempting to solve a problem by trying on different “thinking hats.” Each color hat signifies a different approach that can be utilized in the problem-solving process, ranging from logic to feelings to creativity and beyond. This method allows organizations to view problems from different angles and perspectives.
• SWOT Analysis : This common strategic planning and management tool helps businesses identify strengths, weaknesses, opportunities and threats (SWOT).

“We have a lot of these different tools,” David says. “Which one to use when is going to be dependent on the problem itself, the level of the stakeholders, the number of different stakeholder groups and so on.”

Each of the techniques outlined above uses the same core steps of problem solving:

• Identify and define the problem
• Consider possible solutions
• Evaluate options
• Choose the best solution
• Implement the solution
• Evaluate the outcome

Data drives a lot of daily decisions in business and beyond. Analytics have also been deployed to problem solve.

“We have specific classes around storytelling with data and how you convince your audience to understand what the data is,” David says. “Your audience has to trust the data, and only then can you use it for real decision-making.”

Data can be a powerful tool for identifying larger trends and making informed decisions when it’s clearly understood and communicated. It’s also vital for performance monitoring and optimization.

How Is Problem Solving Prioritized in Purdue’s Online MBA?

The courses in the Purdue Online MBA program teach problem-solving methods to students, keeping them up to date with the latest techniques and allowing them to apply their knowledge to business-related scenarios.

“I can give you a model or a tool, but most of the time, a real-world situation is going to be a lot messier and more valuable than what we’ve seen in a textbook,” David says. “Asking students to take what they know and apply it to a case where there’s not one single correct answer is a big part of the learning experience.”

Make Your Own Decision to Further Your Career

An online MBA from Purdue University can help advance your career by teaching you problem-solving skills, decision-making strategies and more. Reach out today to learn more about earning an online MBA with Purdue University .

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5 Essential Problem-Solving Strategies Every Business Leader Should Know

• 4 mins to read
• April 2, 2024
• By Reagan Pannell

In the labyrinth of challenges that businesses encounter daily, effective problem-solving methods are the threads that lead to the cord that unifies success. But what happens when the labyrinth of issues grows complex? This is where the science and art of Lean Six Sigma come into play, offering a map not just to solve, but to anticipate, assess, and ameliorate problems systematically. Here are five essential strategies in the Lean Six Sigma arsenal that arm every business leader with the proficiency to overcome the most intricate of business conundrums.

Standard Work

Imagine your business as a well-kept vineyard; every grape must be picked at the right time and in the right way to salvage the flavour. This meticulous process, akin to Standard Work, involves establishing a precise procedure for every task—the one best way to ensure quality, safety, specificity, and efficient use of resources.

In a world where change is a constant, some might hesitate at the seemingly rigid nature of a ‘standard’ procedure. But Lean Six Sigma reminds us that without a standard, there is no baseline for improvement. Only after defining this ‘one-best-way’ can teams engage in the Plan-Do-Check-Act cycle, consistently fine-tuning the process to bear sweeter fruit. Standard Work is not an iron cage; it is the seeds of agility and improvement, sown in the fertile soil of stability.

The Ironclad Approach to Consistency

Standard Work chains down variance and unplanned activities, providing clarity in roles and expectations, and ultimately, nurturing a culture of standardised efficiency.

A Flexible Framework for Change

While providing a structure that supports current success, Standard Work continually evolves, integrating learning, and adapting to change.

Workplace Organisation

Imagine an orchestra without a conductor, notes fluttering about like startled birds. Without a specified order, the symphony of your workplace could devolve into cacophony. Enter Workplace Organisation, or the 5S method, an arrangement that ensures every tool has a place and every worker knows where it belongs and how to access it promptly.

More than just a cleanup, this strategic approach to organisation — Sort, Set in Order, Shine, Standardize, and Sustain — ensures that the environment supports the work, contributing to a systematic reduction in waste, both physical and temporally. A lean and organised workspace is the incubator of efficiency and safety, nurturing an environment where problem-solving seeds can sprout and grow.

Systematically Reduce Waste

The 5S method eliminates the unnecessary, decluttering not just space, but also time, motion, and waiting in the production process.

A Safe, Structured Haven

An organized workplace isn’t just efficient; it safeguards against errors and accidents, allowing the workforce to operate in a setting conducive to excellence.

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The 3 Cs — A daily dose of continuous improvement

Every detective knows that a good case requires a thorough investigation. In the domain of Lean Six Sigma, those clues are the 3Cs — Concern, Cause, and Countermeasure, and the detective is the continuous improvement team. This technique, well-suited to stubborn and recurring problems, involves daily huddles where teams voice concerns and collectively dig through the possible causes before unveiling countermeasures to prevent a recurrence.

The power of the 3Cs lies not only in their commitment to root-cause analysis but also in the sense of shared responsibility and action. In gathering daily, teams promote a heightened awareness of the issues, foster creative, proactive problem-solving strategies, and ultimately drive an operation saw-toothed with continual improvements.

Daily Reassessment and Realignment

The 3Cs keep a vigilant watch over operations, ensuring that daily changes are reflected in the problem-solving strategy.

A Unified Front in the Battle Against Waste

By involving the entire team, the 3Cs push towards the most effective of countermeasures, using everyone’s expertise in the cause.

The A3 Approach—The Art of Story Telling

Storytelling is a powerful form of communication—it takes the listener on a structured journey of discovery, conflict, and ultimately, a resolution. The A3 Problem Solving Methodology encapsulates this approach by having problem solvers tell the story of a problem on a single sheet of A3 paper, guiding them through planning, analysis, implementation, and evaluation. This pictorial presentation not only aids in breaking down complex issues but also ensures that stakeholders can follow the story to its end, taking a valuable role in the resolution.

While it may seem like a reductive approach to confine a problem to a single page, the A3 Methodology instead empowers by distillation. It distills the ‘noise’ around an issue into a coherent narrative, allowing all involved to see the forest for the trees, and the path ahead unburdened by confusion.

Simplifying the Complex

The A3 method breaks down labyrinthine problems into bite-sized segments, making them manageable and digestible.

Involving Every Stakeholder

By presenting the complexity of issues in a clear, visual format, more voices can contribute to the resolution, ensuring a comprehensive and effective solution.

DMAIC — The Master Design of Problem Solving

DMAIC (Define, Measure, Analyse, Improve, Control) is Lean Six Sigma’s strategic playbook for solving complicated problems. Like the grandmaster in a chess game, the DMAIC process doesn’t just walk you through the paces; it shapes your moves in response to a methodical assessment of the board and the current state of the game.

Beginning with a problem definition and culminating in the systematic control and monitoring of the implemented solution, DMAIC is about setting the parameters, calculating your options, and making moves that carry you to victory in the quest for efficiency and excellence, the game of business.

Empowering Data-Driven Decisions

At the heart of DMAIC lies statistical analysis and hard data, ensuring that every step is bolstered by evidence and precision.

The Continuous Improvement Spectrum

DMAIC isn’t just about solving a problem; it’s about embedding a mindset that perpetuates Lean Six Sigma’s principles in every facet of the business.

In Conclusion

Problem-solving is not just about fixing what’s broken; it’s about fortifying your business against surprises and setbacks. Lean Six Sigma’s problem-solving strategies offer a systematic, structured, and data-driven approach that every business leader can harness. Whether it’s establishing a workflow, organizing the workspace, engaging in daily problem-solving practices, or navigating complex problem-solving methodologies, these tools are the blueprint to building a resilient, robust business that thrives in the face of adversity.

For those leaders, professionals, and CI practitioners versed in the language of Lean Six Sigma, mastering these strategies isn’t just a competitive edge; it’s a mandate. The markets swell with competition, and only those with the sharpest problem-solving techniques will carve out a niche and not just survive, but excel. It’s time to ask yourself — will you grapple with problems, or will you solve them with finesse and finesse impacting not only a moment but a legacy? Lean in, employ these strategies, and watch as you transform from problem-facer to problem-solver extraordinaire.

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Reagan pannell.

Reagan Pannell is a highly accomplished professional with 15 years of experience in building lean management programs for corporate companies. With his expertise in strategy execution, he has established himself as a trusted advisor for numerous organisations seeking to improve their operational efficiency.

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All teams and organizations encounter challenges as they grow. There are problems that might occur for teams when it comes to miscommunication or resolving business-critical issues . You may face challenges around growth , design , user engagement, and even team culture and happiness. In short, problem-solving techniques should be part of every team’s skillset.

Problem-solving methods are primarily designed to help a group or team through a process of first identifying problems and challenges , ideating possible solutions , and then evaluating the most suitable .

Finding effective solutions to complex problems isn’t easy, but by using the right process and techniques, you can help your team be more efficient in the process.

So how do you develop strategies that are engaging, and empower your team to solve problems effectively?

In this blog post, we share a series of problem-solving tools you can use in your next workshop or team meeting. You’ll also find some tips for facilitating the process and how to enable others to solve complex problems.

Let’s get started! 

How do you identify problems?

How do you identify the right solution.

• Tips for more effective problem-solving

Complete problem-solving methods

• Problem-solving techniques to identify and analyze problems
• Problem-solving techniques for developing solutions

Problem-solving warm-up activities

Closing activities for a problem-solving process.

Before you can move towards finding the right solution for a given problem, you first need to identify and define the problem you wish to solve. 

Here, you want to clearly articulate what the problem is and allow your group to do the same. Remember that everyone in a group is likely to have differing perspectives and alignment is necessary in order to help the group move forward. 

Identifying a problem accurately also requires that all members of a group are able to contribute their views in an open and safe manner. It can be scary for people to stand up and contribute, especially if the problems or challenges are emotive or personal in nature. Be sure to try and create a psychologically safe space for these kinds of discussions.

Remember that problem analysis and further discussion are also important. Not taking the time to fully analyze and discuss a challenge can result in the development of solutions that are not fit for purpose or do not address the underlying issue.

Successfully identifying and then analyzing a problem means facilitating a group through activities designed to help them clearly and honestly articulate their thoughts and produce usable insight.

With this data, you might then produce a problem statement that clearly describes the problem you wish to be addressed and also state the goal of any process you undertake to tackle this issue.  

Finding solutions is the end goal of any process. Complex organizational challenges can only be solved with an appropriate solution but discovering them requires using the right problem-solving tool.

After you’ve explored a problem and discussed ideas, you need to help a team discuss and choose the right solution. Consensus tools and methods such as those below help a group explore possible solutions before then voting for the best. They’re a great way to tap into the collective intelligence of the group for great results!

Remember that the process is often iterative. Great problem solvers often roadtest a viable solution in a measured way to see what works too. While you might not get the right solution on your first try, the methods below help teams land on the most likely to succeed solution while also holding space for improvement.

Every effective problem solving process begins with an agenda . A well-structured workshop is one of the best methods for successfully guiding a group from exploring a problem to implementing a solution.

In SessionLab, it’s easy to go from an idea to a complete agenda . Start by dragging and dropping your core problem solving activities into place . Add timings, breaks and necessary materials before sharing your agenda with your colleagues.

The resulting agenda will be your guide to an effective and productive problem solving session that will also help you stay organized on the day!

Tips for more effective problem solving

Problem-solving activities are only one part of the puzzle. While a great method can help unlock your team’s ability to solve problems, without a thoughtful approach and strong facilitation the solutions may not be fit for purpose.

Let’s take a look at some problem-solving tips you can apply to any process to help it be a success!

Clearly define the problem

Jumping straight to solutions can be tempting, though without first clearly articulating a problem, the solution might not be the right one. Many of the problem-solving activities below include sections where the problem is explored and clearly defined before moving on.

This is a vital part of the problem-solving process and taking the time to fully define an issue can save time and effort later. A clear definition helps identify irrelevant information and it also ensures that your team sets off on the right track.

Don’t jump to conclusions

It’s easy for groups to exhibit cognitive bias or have preconceived ideas about both problems and potential solutions. Be sure to back up any problem statements or potential solutions with facts, research, and adequate forethought.

The best techniques ask participants to be methodical and challenge preconceived notions. Make sure you give the group enough time and space to collect relevant information and consider the problem in a new way. By approaching the process with a clear, rational mindset, you’ll often find that better solutions are more forthcoming.  

Try different approaches  

Problems come in all shapes and sizes and so too should the methods you use to solve them. If you find that one approach isn’t yielding results and your team isn’t finding different solutions, try mixing it up. You’ll be surprised at how using a new creative activity can unblock your team and generate great solutions.

Don’t take it personally 

Depending on the nature of your team or organizational problems, it’s easy for conversations to get heated. While it’s good for participants to be engaged in the discussions, ensure that emotions don’t run too high and that blame isn’t thrown around while finding solutions.

You’re all in it together, and even if your team or area is seeing problems, that isn’t necessarily a disparagement of you personally. Using facilitation skills to manage group dynamics is one effective method of helping conversations be more constructive.

Get the right people in the room

Your problem-solving method is often only as effective as the group using it. Getting the right people on the job and managing the number of people present is important too!

If the group is too small, you may not get enough different perspectives to effectively solve a problem. If the group is too large, you can go round and round during the ideation stages.

Creating the right group makeup is also important in ensuring you have the necessary expertise and skillset to both identify and follow up on potential solutions. Carefully consider who to include at each stage to help ensure your problem-solving method is followed and positioned for success.

Document everything

The best solutions can take refinement, iteration, and reflection to come out. Get into a habit of documenting your process in order to keep all the learnings from the session and to allow ideas to mature and develop. Many of the methods below involve the creation of documents or shared resources. Be sure to keep and share these so everyone can benefit from the work done!

Bring a facilitator 

Facilitation is all about making group processes easier. With a subject as potentially emotive and important as problem-solving, having an impartial third party in the form of a facilitator can make all the difference in finding great solutions and keeping the process moving. Consider bringing a facilitator to your problem-solving session to get better results and generate meaningful solutions!

Develop your problem-solving skills

It takes time and practice to be an effective problem solver. While some roles or participants might more naturally gravitate towards problem-solving, it can take development and planning to help everyone create better solutions.

You might develop a training program, run a problem-solving workshop or simply ask your team to practice using the techniques below. Check out our post on problem-solving skills to see how you and your group can develop the right mental process and be more resilient to issues too!

Design a great agenda

Workshops are a great format for solving problems. With the right approach, you can focus a group and help them find the solutions to their own problems. But designing a process can be time-consuming and finding the right activities can be difficult.

Check out our workshop planning guide to level-up your agenda design and start running more effective workshops. Need inspiration? Check out templates designed by expert facilitators to help you kickstart your process!

In this section, we’ll look at in-depth problem-solving methods that provide a complete end-to-end process for developing effective solutions. These will help guide your team from the discovery and definition of a problem through to delivering the right solution.

If you’re looking for an all-encompassing method or problem-solving model, these processes are a great place to start. They’ll ask your team to challenge preconceived ideas and adopt a mindset for solving problems more effectively.

• Six Thinking Hats
• Lightning Decision Jam
• Problem Definition Process
• Discovery & Action Dialogue

Design Sprint 2.0

• Open Space Technology

1. Six Thinking Hats

Individual approaches to solving a problem can be very different based on what team or role an individual holds. It can be easy for existing biases or perspectives to find their way into the mix, or for internal politics to direct a conversation.

Six Thinking Hats is a classic method for identifying the problems that need to be solved and enables your team to consider them from different angles, whether that is by focusing on facts and data, creative solutions, or by considering why a particular solution might not work.

Like all problem-solving frameworks, Six Thinking Hats is effective at helping teams remove roadblocks from a conversation or discussion and come to terms with all the aspects necessary to solve complex problems.

2. Lightning Decision Jam

Featured courtesy of Jonathan Courtney of AJ&Smart Berlin, Lightning Decision Jam is one of those strategies that should be in every facilitation toolbox. Exploring problems and finding solutions is often creative in nature, though as with any creative process, there is the potential to lose focus and get lost.

Unstructured discussions might get you there in the end, but it’s much more effective to use a method that creates a clear process and team focus.

In Lightning Decision Jam, participants are invited to begin by writing challenges, concerns, or mistakes on post-its without discussing them before then being invited by the moderator to present them to the group.

From there, the team vote on which problems to solve and are guided through steps that will allow them to reframe those problems, create solutions and then decide what to execute on. 

By deciding the problems that need to be solved as a team before moving on, this group process is great for ensuring the whole team is aligned and can take ownership over the next stages. 

Lightning Decision Jam (LDJ)   #action   #decision making   #problem solving   #issue analysis   #innovation   #design   #remote-friendly   The problem with anything that requires creative thinking is that it’s easy to get lost—lose focus and fall into the trap of having useless, open-ended, unstructured discussions. Here’s the most effective solution I’ve found: Replace all open, unstructured discussion with a clear process. What to use this exercise for: Anything which requires a group of people to make decisions, solve problems or discuss challenges. It’s always good to frame an LDJ session with a broad topic, here are some examples: The conversion flow of our checkout Our internal design process How we organise events Keeping up with our competition Improving sales flow

3. Problem Definition Process

While problems can be complex, the problem-solving methods you use to identify and solve those problems can often be simple in design. 

By taking the time to truly identify and define a problem before asking the group to reframe the challenge as an opportunity, this method is a great way to enable change.

Begin by identifying a focus question and exploring the ways in which it manifests before splitting into five teams who will each consider the problem using a different method: escape, reversal, exaggeration, distortion or wishful. Teams develop a problem objective and create ideas in line with their method before then feeding them back to the group.

This method is great for enabling in-depth discussions while also creating space for finding creative solutions too!

Problem Definition   #problem solving   #idea generation   #creativity   #online   #remote-friendly   A problem solving technique to define a problem, challenge or opportunity and to generate ideas.

4. The 5 Whys 

Sometimes, a group needs to go further with their strategies and analyze the root cause at the heart of organizational issues. An RCA or root cause analysis is the process of identifying what is at the heart of business problems or recurring challenges. 

The 5 Whys is a simple and effective method of helping a group go find the root cause of any problem or challenge and conduct analysis that will deliver results. 

By beginning with the creation of a problem statement and going through five stages to refine it, The 5 Whys provides everything you need to truly discover the cause of an issue.

The 5 Whys   #hyperisland   #innovation   This simple and powerful method is useful for getting to the core of a problem or challenge. As the title suggests, the group defines a problems, then asks the question “why” five times, often using the resulting explanation as a starting point for creative problem solving.

5. World Cafe

World Cafe is a simple but powerful facilitation technique to help bigger groups to focus their energy and attention on solving complex problems.

World Cafe enables this approach by creating a relaxed atmosphere where participants are able to self-organize and explore topics relevant and important to them which are themed around a central problem-solving purpose. Create the right atmosphere by modeling your space after a cafe and after guiding the group through the method, let them take the lead!

Making problem-solving a part of your organization’s culture in the long term can be a difficult undertaking. More approachable formats like World Cafe can be especially effective in bringing people unfamiliar with workshops into the fold. 

World Cafe   #hyperisland   #innovation   #issue analysis   World Café is a simple yet powerful method, originated by Juanita Brown, for enabling meaningful conversations driven completely by participants and the topics that are relevant and important to them. Facilitators create a cafe-style space and provide simple guidelines. Participants then self-organize and explore a set of relevant topics or questions for conversation.

6. Discovery & Action Dialogue (DAD)

One of the best approaches is to create a safe space for a group to share and discover practices and behaviors that can help them find their own solutions.

With DAD, you can help a group choose which problems they wish to solve and which approaches they will take to do so. It’s great at helping remove resistance to change and can help get buy-in at every level too!

This process of enabling frontline ownership is great in ensuring follow-through and is one of the methods you will want in your toolbox as a facilitator.

Discovery & Action Dialogue (DAD)   #idea generation   #liberating structures   #action   #issue analysis   #remote-friendly   DADs make it easy for a group or community to discover practices and behaviors that enable some individuals (without access to special resources and facing the same constraints) to find better solutions than their peers to common problems. These are called positive deviant (PD) behaviors and practices. DADs make it possible for people in the group, unit, or community to discover by themselves these PD practices. DADs also create favorable conditions for stimulating participants’ creativity in spaces where they can feel safe to invent new and more effective practices. Resistance to change evaporates as participants are unleashed to choose freely which practices they will adopt or try and which problems they will tackle. DADs make it possible to achieve frontline ownership of solutions.

7. Design Sprint 2.0

Want to see how a team can solve big problems and move forward with prototyping and testing solutions in a few days? The Design Sprint 2.0 template from Jake Knapp, author of Sprint, is a complete agenda for a with proven results.

Developing the right agenda can involve difficult but necessary planning. Ensuring all the correct steps are followed can also be stressful or time-consuming depending on your level of experience.

Use this complete 4-day workshop template if you are finding there is no obvious solution to your challenge and want to focus your team around a specific problem that might require a shortcut to launching a minimum viable product or waiting for the organization-wide implementation of a solution.

8. Open space technology

Open space technology- developed by Harrison Owen – creates a space where large groups are invited to take ownership of their problem solving and lead individual sessions. Open space technology is a great format when you have a great deal of expertise and insight in the room and want to allow for different takes and approaches on a particular theme or problem you need to be solved.

Start by bringing your participants together to align around a central theme and focus their efforts. Explain the ground rules to help guide the problem-solving process and then invite members to identify any issue connecting to the central theme that they are interested in and are prepared to take responsibility for.

Once participants have decided on their approach to the core theme, they write their issue on a piece of paper, announce it to the group, pick a session time and place, and post the paper on the wall. As the wall fills up with sessions, the group is then invited to join the sessions that interest them the most and which they can contribute to, then you’re ready to begin!

Everyone joins the problem-solving group they’ve signed up to, record the discussion and if appropriate, findings can then be shared with the rest of the group afterward.

Open Space Technology   #action plan   #idea generation   #problem solving   #issue analysis   #large group   #online   #remote-friendly   Open Space is a methodology for large groups to create their agenda discerning important topics for discussion, suitable for conferences, community gatherings and whole system facilitation

Techniques to identify and analyze problems

Using a problem-solving method to help a team identify and analyze a problem can be a quick and effective addition to any workshop or meeting.

While further actions are always necessary, you can generate momentum and alignment easily, and these activities are a great place to get started.

We’ve put together this list of techniques to help you and your team with problem identification, analysis, and discussion that sets the foundation for developing effective solutions.

Let’s take a look!

• The Creativity Dice
• Fishbone Analysis
• Problem Tree
• SWOT Analysis
• Agreement-Certainty Matrix
• The Journalistic Six
• LEGO Challenge
• What, So What, Now What?
• Journalists

Individual and group perspectives are incredibly important, but what happens if people are set in their minds and need a change of perspective in order to approach a problem more effectively?

Flip It is a method we love because it is both simple to understand and run, and allows groups to understand how their perspectives and biases are formed. 

Participants in Flip It are first invited to consider concerns, issues, or problems from a perspective of fear and write them on a flip chart. Then, the group is asked to consider those same issues from a perspective of hope and flip their understanding.  

No problem and solution is free from existing bias and by changing perspectives with Flip It, you can then develop a problem solving model quickly and effectively.

Flip It!   #gamestorming   #problem solving   #action   Often, a change in a problem or situation comes simply from a change in our perspectives. Flip It! is a quick game designed to show players that perspectives are made, not born.

10. The Creativity Dice

One of the most useful problem solving skills you can teach your team is of approaching challenges with creativity, flexibility, and openness. Games like The Creativity Dice allow teams to overcome the potential hurdle of too much linear thinking and approach the process with a sense of fun and speed. 

In The Creativity Dice, participants are organized around a topic and roll a dice to determine what they will work on for a period of 3 minutes at a time. They might roll a 3 and work on investigating factual information on the chosen topic. They might roll a 1 and work on identifying the specific goals, standards, or criteria for the session.

Encouraging rapid work and iteration while asking participants to be flexible are great skills to cultivate. Having a stage for idea incubation in this game is also important. Moments of pause can help ensure the ideas that are put forward are the most suitable. 

The Creativity Dice   #creativity   #problem solving   #thiagi   #issue analysis   Too much linear thinking is hazardous to creative problem solving. To be creative, you should approach the problem (or the opportunity) from different points of view. You should leave a thought hanging in mid-air and move to another. This skipping around prevents premature closure and lets your brain incubate one line of thought while you consciously pursue another.

11. Fishbone Analysis

Organizational or team challenges are rarely simple, and it’s important to remember that one problem can be an indication of something that goes deeper and may require further consideration to be solved.

Fishbone Analysis helps groups to dig deeper and understand the origins of a problem. It’s a great example of a root cause analysis method that is simple for everyone on a team to get their head around. 

Participants in this activity are asked to annotate a diagram of a fish, first adding the problem or issue to be worked on at the head of a fish before then brainstorming the root causes of the problem and adding them as bones on the fish. 

Using abstractions such as a diagram of a fish can really help a team break out of their regular thinking and develop a creative approach.

Fishbone Analysis   #problem solving   ##root cause analysis   #decision making   #online facilitation   A process to help identify and understand the origins of problems, issues or observations.

12. Problem Tree 

Encouraging visual thinking can be an essential part of many strategies. By simply reframing and clarifying problems, a group can move towards developing a problem solving model that works for them. 

In Problem Tree, groups are asked to first brainstorm a list of problems – these can be design problems, team problems or larger business problems – and then organize them into a hierarchy. The hierarchy could be from most important to least important or abstract to practical, though the key thing with problem solving games that involve this aspect is that your group has some way of managing and sorting all the issues that are raised.

Once you have a list of problems that need to be solved and have organized them accordingly, you’re then well-positioned for the next problem solving steps.

Problem tree   #define intentions   #create   #design   #issue analysis   A problem tree is a tool to clarify the hierarchy of problems addressed by the team within a design project; it represents high level problems or related sublevel problems.

13. SWOT Analysis

Chances are you’ve heard of the SWOT Analysis before. This problem-solving method focuses on identifying strengths, weaknesses, opportunities, and threats is a tried and tested method for both individuals and teams.

Start by creating a desired end state or outcome and bare this in mind – any process solving model is made more effective by knowing what you are moving towards. Create a quadrant made up of the four categories of a SWOT analysis and ask participants to generate ideas based on each of those quadrants.

Once you have those ideas assembled in their quadrants, cluster them together based on their affinity with other ideas. These clusters are then used to facilitate group conversations and move things forward. 

SWOT analysis   #gamestorming   #problem solving   #action   #meeting facilitation   The SWOT Analysis is a long-standing technique of looking at what we have, with respect to the desired end state, as well as what we could improve on. It gives us an opportunity to gauge approaching opportunities and dangers, and assess the seriousness of the conditions that affect our future. When we understand those conditions, we can influence what comes next.

14. Agreement-Certainty Matrix

Not every problem-solving approach is right for every challenge, and deciding on the right method for the challenge at hand is a key part of being an effective team.

The Agreement Certainty matrix helps teams align on the nature of the challenges facing them. By sorting problems from simple to chaotic, your team can understand what methods are suitable for each problem and what they can do to ensure effective results. 

If you are already using Liberating Structures techniques as part of your problem-solving strategy, the Agreement-Certainty Matrix can be an invaluable addition to your process. We’ve found it particularly if you are having issues with recurring problems in your organization and want to go deeper in understanding the root cause. 

Agreement-Certainty Matrix   #issue analysis   #liberating structures   #problem solving   You can help individuals or groups avoid the frequent mistake of trying to solve a problem with methods that are not adapted to the nature of their challenge. The combination of two questions makes it possible to easily sort challenges into four categories: simple, complicated, complex , and chaotic .  A problem is simple when it can be solved reliably with practices that are easy to duplicate.  It is complicated when experts are required to devise a sophisticated solution that will yield the desired results predictably.  A problem is complex when there are several valid ways to proceed but outcomes are not predictable in detail.  Chaotic is when the context is too turbulent to identify a path forward.  A loose analogy may be used to describe these differences: simple is like following a recipe, complicated like sending a rocket to the moon, complex like raising a child, and chaotic is like the game “Pin the Tail on the Donkey.”  The Liberating Structures Matching Matrix in Chapter 5 can be used as the first step to clarify the nature of a challenge and avoid the mismatches between problems and solutions that are frequently at the root of chronic, recurring problems.

Organizing and charting a team’s progress can be important in ensuring its success. SQUID (Sequential Question and Insight Diagram) is a great model that allows a team to effectively switch between giving questions and answers and develop the skills they need to stay on track throughout the process. 

Begin with two different colored sticky notes – one for questions and one for answers – and with your central topic (the head of the squid) on the board. Ask the group to first come up with a series of questions connected to their best guess of how to approach the topic. Ask the group to come up with answers to those questions, fix them to the board and connect them with a line. After some discussion, go back to question mode by responding to the generated answers or other points on the board.

It’s rewarding to see a diagram grow throughout the exercise, and a completed SQUID can provide a visual resource for future effort and as an example for other teams.

SQUID   #gamestorming   #project planning   #issue analysis   #problem solving   When exploring an information space, it’s important for a group to know where they are at any given time. By using SQUID, a group charts out the territory as they go and can navigate accordingly. SQUID stands for Sequential Question and Insight Diagram.

16. Speed Boat

To continue with our nautical theme, Speed Boat is a short and sweet activity that can help a team quickly identify what employees, clients or service users might have a problem with and analyze what might be standing in the way of achieving a solution.

Methods that allow for a group to make observations, have insights and obtain those eureka moments quickly are invaluable when trying to solve complex problems.

In Speed Boat, the approach is to first consider what anchors and challenges might be holding an organization (or boat) back. Bonus points if you are able to identify any sharks in the water and develop ideas that can also deal with competitors!   

Speed Boat   #gamestorming   #problem solving   #action   Speedboat is a short and sweet way to identify what your employees or clients don’t like about your product/service or what’s standing in the way of a desired goal.

17. The Journalistic Six

Some of the most effective ways of solving problems is by encouraging teams to be more inclusive and diverse in their thinking.

Based on the six key questions journalism students are taught to answer in articles and news stories, The Journalistic Six helps create teams to see the whole picture. By using who, what, when, where, why, and how to facilitate the conversation and encourage creative thinking, your team can make sure that the problem identification and problem analysis stages of the are covered exhaustively and thoughtfully. Reporter’s notebook and dictaphone optional.

The Journalistic Six – Who What When Where Why How   #idea generation   #issue analysis   #problem solving   #online   #creative thinking   #remote-friendly   A questioning method for generating, explaining, investigating ideas.

18. LEGO Challenge

Now for an activity that is a little out of the (toy) box. LEGO Serious Play is a facilitation methodology that can be used to improve creative thinking and problem-solving skills. 

The LEGO Challenge includes giving each member of the team an assignment that is hidden from the rest of the group while they create a structure without speaking.

What the LEGO challenge brings to the table is a fun working example of working with stakeholders who might not be on the same page to solve problems. Also, it’s LEGO! Who doesn’t love LEGO! 

LEGO Challenge   #hyperisland   #team   A team-building activity in which groups must work together to build a structure out of LEGO, but each individual has a secret “assignment” which makes the collaborative process more challenging. It emphasizes group communication, leadership dynamics, conflict, cooperation, patience and problem solving strategy.

19. What, So What, Now What?

If not carefully managed, the problem identification and problem analysis stages of the problem-solving process can actually create more problems and misunderstandings.

The What, So What, Now What? problem-solving activity is designed to help collect insights and move forward while also eliminating the possibility of disagreement when it comes to identifying, clarifying, and analyzing organizational or work problems. 

Facilitation is all about bringing groups together so that might work on a shared goal and the best problem-solving strategies ensure that teams are aligned in purpose, if not initially in opinion or insight.

Throughout the three steps of this game, you give everyone on a team to reflect on a problem by asking what happened, why it is important, and what actions should then be taken. 

This can be a great activity for bringing our individual perceptions about a problem or challenge and contextualizing it in a larger group setting. This is one of the most important problem-solving skills you can bring to your organization.

W³ – What, So What, Now What?   #issue analysis   #innovation   #liberating structures   You can help groups reflect on a shared experience in a way that builds understanding and spurs coordinated action while avoiding unproductive conflict. It is possible for every voice to be heard while simultaneously sifting for insights and shaping new direction. Progressing in stages makes this practical—from collecting facts about What Happened to making sense of these facts with So What and finally to what actions logically follow with Now What . The shared progression eliminates most of the misunderstandings that otherwise fuel disagreements about what to do. Voila!

20. Journalists  

Problem analysis can be one of the most important and decisive stages of all problem-solving tools. Sometimes, a team can become bogged down in the details and are unable to move forward.

Journalists is an activity that can avoid a group from getting stuck in the problem identification or problem analysis stages of the process.

In Journalists, the group is invited to draft the front page of a fictional newspaper and figure out what stories deserve to be on the cover and what headlines those stories will have. By reframing how your problems and challenges are approached, you can help a team move productively through the process and be better prepared for the steps to follow.

Journalists   #vision   #big picture   #issue analysis   #remote-friendly   This is an exercise to use when the group gets stuck in details and struggles to see the big picture. Also good for defining a vision.

Problem-solving techniques for developing solutions 

The success of any problem-solving process can be measured by the solutions it produces. After you’ve defined the issue, explored existing ideas, and ideated, it’s time to narrow down to the correct solution.

Use these problem-solving techniques when you want to help your team find consensus, compare possible solutions, and move towards taking action on a particular problem.

• Improved Solutions
• Four-Step Sketch
• 15% Solutions
• How-Now-Wow matrix
• Impact Effort Matrix

21. Mindspin  

Brainstorming is part of the bread and butter of the problem-solving process and all problem-solving strategies benefit from getting ideas out and challenging a team to generate solutions quickly. 

With Mindspin, participants are encouraged not only to generate ideas but to do so under time constraints and by slamming down cards and passing them on. By doing multiple rounds, your team can begin with a free generation of possible solutions before moving on to developing those solutions and encouraging further ideation. 

This is one of our favorite problem-solving activities and can be great for keeping the energy up throughout the workshop. Remember the importance of helping people become engaged in the process – energizing problem-solving techniques like Mindspin can help ensure your team stays engaged and happy, even when the problems they’re coming together to solve are complex. 

MindSpin   #teampedia   #idea generation   #problem solving   #action   A fast and loud method to enhance brainstorming within a team. Since this activity has more than round ideas that are repetitive can be ruled out leaving more creative and innovative answers to the challenge.

22. Improved Solutions

After a team has successfully identified a problem and come up with a few solutions, it can be tempting to call the work of the problem-solving process complete. That said, the first solution is not necessarily the best, and by including a further review and reflection activity into your problem-solving model, you can ensure your group reaches the best possible result. 

One of a number of problem-solving games from Thiagi Group, Improved Solutions helps you go the extra mile and develop suggested solutions with close consideration and peer review. By supporting the discussion of several problems at once and by shifting team roles throughout, this problem-solving technique is a dynamic way of finding the best solution. 

Improved Solutions   #creativity   #thiagi   #problem solving   #action   #team   You can improve any solution by objectively reviewing its strengths and weaknesses and making suitable adjustments. In this creativity framegame, you improve the solutions to several problems. To maintain objective detachment, you deal with a different problem during each of six rounds and assume different roles (problem owner, consultant, basher, booster, enhancer, and evaluator) during each round. At the conclusion of the activity, each player ends up with two solutions to her problem.

23. Four Step Sketch

Creative thinking and visual ideation does not need to be confined to the opening stages of your problem-solving strategies. Exercises that include sketching and prototyping on paper can be effective at the solution finding and development stage of the process, and can be great for keeping a team engaged. 

By going from simple notes to a crazy 8s round that involves rapidly sketching 8 variations on their ideas before then producing a final solution sketch, the group is able to iterate quickly and visually. Problem-solving techniques like Four-Step Sketch are great if you have a group of different thinkers and want to change things up from a more textual or discussion-based approach.

Four-Step Sketch   #design sprint   #innovation   #idea generation   #remote-friendly   The four-step sketch is an exercise that helps people to create well-formed concepts through a structured process that includes: Review key information Start design work on paper,  Consider multiple variations , Create a detailed solution . This exercise is preceded by a set of other activities allowing the group to clarify the challenge they want to solve. See how the Four Step Sketch exercise fits into a Design Sprint

24. 15% Solutions

Some problems are simpler than others and with the right problem-solving activities, you can empower people to take immediate actions that can help create organizational change. 

Part of the liberating structures toolkit, 15% solutions is a problem-solving technique that focuses on finding and implementing solutions quickly. A process of iterating and making small changes quickly can help generate momentum and an appetite for solving complex problems.

Problem-solving strategies can live and die on whether people are onboard. Getting some quick wins is a great way of getting people behind the process.   

It can be extremely empowering for a team to realize that problem-solving techniques can be deployed quickly and easily and delineate between things they can positively impact and those things they cannot change. 

15% Solutions   #action   #liberating structures   #remote-friendly   You can reveal the actions, however small, that everyone can do immediately. At a minimum, these will create momentum, and that may make a BIG difference.  15% Solutions show that there is no reason to wait around, feel powerless, or fearful. They help people pick it up a level. They get individuals and the group to focus on what is within their discretion instead of what they cannot change.  With a very simple question, you can flip the conversation to what can be done and find solutions to big problems that are often distributed widely in places not known in advance. Shifting a few grains of sand may trigger a landslide and change the whole landscape.

25. How-Now-Wow Matrix

The problem-solving process is often creative, as complex problems usually require a change of thinking and creative response in order to find the best solutions. While it’s common for the first stages to encourage creative thinking, groups can often gravitate to familiar solutions when it comes to the end of the process. 

When selecting solutions, you don’t want to lose your creative energy! The How-Now-Wow Matrix from Gamestorming is a great problem-solving activity that enables a group to stay creative and think out of the box when it comes to selecting the right solution for a given problem.

Problem-solving techniques that encourage creative thinking and the ideation and selection of new solutions can be the most effective in organisational change. Give the How-Now-Wow Matrix a go, and not just for how pleasant it is to say out loud. 

How-Now-Wow Matrix   #gamestorming   #idea generation   #remote-friendly   When people want to develop new ideas, they most often think out of the box in the brainstorming or divergent phase. However, when it comes to convergence, people often end up picking ideas that are most familiar to them. This is called a ‘creative paradox’ or a ‘creadox’. The How-Now-Wow matrix is an idea selection tool that breaks the creadox by forcing people to weigh each idea on 2 parameters.

26. Impact and Effort Matrix

All problem-solving techniques hope to not only find solutions to a given problem or challenge but to find the best solution. When it comes to finding a solution, groups are invited to put on their decision-making hats and really think about how a proposed idea would work in practice. 

The Impact and Effort Matrix is one of the problem-solving techniques that fall into this camp, empowering participants to first generate ideas and then categorize them into a 2×2 matrix based on impact and effort.

Activities that invite critical thinking while remaining simple are invaluable. Use the Impact and Effort Matrix to move from ideation and towards evaluating potential solutions before then committing to them. 

Impact and Effort Matrix   #gamestorming   #decision making   #action   #remote-friendly   In this decision-making exercise, possible actions are mapped based on two factors: effort required to implement and potential impact. Categorizing ideas along these lines is a useful technique in decision making, as it obliges contributors to balance and evaluate suggested actions before committing to them.

27. Dotmocracy

If you’ve followed each of the problem-solving steps with your group successfully, you should move towards the end of your process with heaps of possible solutions developed with a specific problem in mind. But how do you help a group go from ideation to putting a solution into action? 

Dotmocracy – or Dot Voting -is a tried and tested method of helping a team in the problem-solving process make decisions and put actions in place with a degree of oversight and consensus. 

One of the problem-solving techniques that should be in every facilitator’s toolbox, Dot Voting is fast and effective and can help identify the most popular and best solutions and help bring a group to a decision effectively. 

Dotmocracy   #action   #decision making   #group prioritization   #hyperisland   #remote-friendly   Dotmocracy is a simple method for group prioritization or decision-making. It is not an activity on its own, but a method to use in processes where prioritization or decision-making is the aim. The method supports a group to quickly see which options are most popular or relevant. The options or ideas are written on post-its and stuck up on a wall for the whole group to see. Each person votes for the options they think are the strongest, and that information is used to inform a decision.

All facilitators know that warm-ups and icebreakers are useful for any workshop or group process. Problem-solving workshops are no different.

Use these problem-solving techniques to warm up a group and prepare them for the rest of the process. Activating your group by tapping into some of the top problem-solving skills can be one of the best ways to see great outcomes from your session.

• Check-in/Check-out
• Doodling Together
• Show and Tell
• Constellations
• Draw a Tree

28. Check-in / Check-out

Solid processes are planned from beginning to end, and the best facilitators know that setting the tone and establishing a safe, open environment can be integral to a successful problem-solving process.

Check-in / Check-out is a great way to begin and/or bookend a problem-solving workshop. Checking in to a session emphasizes that everyone will be seen, heard, and expected to contribute. 

If you are running a series of meetings, setting a consistent pattern of checking in and checking out can really help your team get into a groove. We recommend this opening-closing activity for small to medium-sized groups though it can work with large groups if they’re disciplined!

Check-in / Check-out   #team   #opening   #closing   #hyperisland   #remote-friendly   Either checking-in or checking-out is a simple way for a team to open or close a process, symbolically and in a collaborative way. Checking-in/out invites each member in a group to be present, seen and heard, and to express a reflection or a feeling. Checking-in emphasizes presence, focus and group commitment; checking-out emphasizes reflection and symbolic closure.

29. Doodling Together  

Thinking creatively and not being afraid to make suggestions are important problem-solving skills for any group or team, and warming up by encouraging these behaviors is a great way to start. 

Doodling Together is one of our favorite creative ice breaker games – it’s quick, effective, and fun and can make all following problem-solving steps easier by encouraging a group to collaborate visually. By passing cards and adding additional items as they go, the workshop group gets into a groove of co-creation and idea development that is crucial to finding solutions to problems. 

Doodling Together   #collaboration   #creativity   #teamwork   #fun   #team   #visual methods   #energiser   #icebreaker   #remote-friendly   Create wild, weird and often funny postcards together & establish a group’s creative confidence.

30. Show and Tell

You might remember some version of Show and Tell from being a kid in school and it’s a great problem-solving activity to kick off a session.

Asking participants to prepare a little something before a workshop by bringing an object for show and tell can help them warm up before the session has even begun! Games that include a physical object can also help encourage early engagement before moving onto more big-picture thinking.

By asking your participants to tell stories about why they chose to bring a particular item to the group, you can help teams see things from new perspectives and see both differences and similarities in the way they approach a topic. Great groundwork for approaching a problem-solving process as a team! 

Show and Tell   #gamestorming   #action   #opening   #meeting facilitation   Show and Tell taps into the power of metaphors to reveal players’ underlying assumptions and associations around a topic The aim of the game is to get a deeper understanding of stakeholders’ perspectives on anything—a new project, an organizational restructuring, a shift in the company’s vision or team dynamic.

31. Constellations

Who doesn’t love stars? Constellations is a great warm-up activity for any workshop as it gets people up off their feet, energized, and ready to engage in new ways with established topics. It’s also great for showing existing beliefs, biases, and patterns that can come into play as part of your session.

Using warm-up games that help build trust and connection while also allowing for non-verbal responses can be great for easing people into the problem-solving process and encouraging engagement from everyone in the group. Constellations is great in large spaces that allow for movement and is definitely a practical exercise to allow the group to see patterns that are otherwise invisible. 

Constellations   #trust   #connection   #opening   #coaching   #patterns   #system   Individuals express their response to a statement or idea by standing closer or further from a central object. Used with teams to reveal system, hidden patterns, perspectives.

32. Draw a Tree

Problem-solving games that help raise group awareness through a central, unifying metaphor can be effective ways to warm-up a group in any problem-solving model.

Draw a Tree is a simple warm-up activity you can use in any group and which can provide a quick jolt of energy. Start by asking your participants to draw a tree in just 45 seconds – they can choose whether it will be abstract or realistic. 

Once the timer is up, ask the group how many people included the roots of the tree and use this as a means to discuss how we can ignore important parts of any system simply because they are not visible.

All problem-solving strategies are made more effective by thinking of problems critically and by exposing things that may not normally come to light. Warm-up games like Draw a Tree are great in that they quickly demonstrate some key problem-solving skills in an accessible and effective way.

Draw a Tree   #thiagi   #opening   #perspectives   #remote-friendly   With this game you can raise awarness about being more mindful, and aware of the environment we live in.

Each step of the problem-solving workshop benefits from an intelligent deployment of activities, games, and techniques. Bringing your session to an effective close helps ensure that solutions are followed through on and that you also celebrate what has been achieved.

Here are some problem-solving activities you can use to effectively close a workshop or meeting and ensure the great work you’ve done can continue afterward.

• One Breath Feedback
• Who What When Matrix
• Response Cards

How do I conclude a problem-solving process?

All good things must come to an end. With the bulk of the work done, it can be tempting to conclude your workshop swiftly and without a moment to debrief and align. This can be problematic in that it doesn’t allow your team to fully process the results or reflect on the process.

At the end of an effective session, your team will have gone through a process that, while productive, can be exhausting. It’s important to give your group a moment to take a breath, ensure that they are clear on future actions, and provide short feedback before leaving the space. 

The primary purpose of any problem-solving method is to generate solutions and then implement them. Be sure to take the opportunity to ensure everyone is aligned and ready to effectively implement the solutions you produced in the workshop.

Remember that every process can be improved and by giving a short moment to collect feedback in the session, you can further refine your problem-solving methods and see further success in the future too.

33. One Breath Feedback

Maintaining attention and focus during the closing stages of a problem-solving workshop can be tricky and so being concise when giving feedback can be important. It’s easy to incur “death by feedback” should some team members go on for too long sharing their perspectives in a quick feedback round. 

One Breath Feedback is a great closing activity for workshops. You give everyone an opportunity to provide feedback on what they’ve done but only in the space of a single breath. This keeps feedback short and to the point and means that everyone is encouraged to provide the most important piece of feedback to them. 

One breath feedback   #closing   #feedback   #action   This is a feedback round in just one breath that excels in maintaining attention: each participants is able to speak during just one breath … for most people that’s around 20 to 25 seconds … unless of course you’ve been a deep sea diver in which case you’ll be able to do it for longer.

34. Who What When Matrix 

Matrices feature as part of many effective problem-solving strategies and with good reason. They are easily recognizable, simple to use, and generate results.

The Who What When Matrix is a great tool to use when closing your problem-solving session by attributing a who, what and when to the actions and solutions you have decided upon. The resulting matrix is a simple, easy-to-follow way of ensuring your team can move forward. 

Great solutions can’t be enacted without action and ownership. Your problem-solving process should include a stage for allocating tasks to individuals or teams and creating a realistic timeframe for those solutions to be implemented or checked out. Use this method to keep the solution implementation process clear and simple for all involved. 

Who/What/When Matrix   #gamestorming   #action   #project planning   With Who/What/When matrix, you can connect people with clear actions they have defined and have committed to.

35. Response cards

Group discussion can comprise the bulk of most problem-solving activities and by the end of the process, you might find that your team is talked out! 

Providing a means for your team to give feedback with short written notes can ensure everyone is head and can contribute without the need to stand up and talk. Depending on the needs of the group, giving an alternative can help ensure everyone can contribute to your problem-solving model in the way that makes the most sense for them.

Response Cards is a great way to close a workshop if you are looking for a gentle warm-down and want to get some swift discussion around some of the feedback that is raised. 

Response Cards   #debriefing   #closing   #structured sharing   #questions and answers   #thiagi   #action   It can be hard to involve everyone during a closing of a session. Some might stay in the background or get unheard because of louder participants. However, with the use of Response Cards, everyone will be involved in providing feedback or clarify questions at the end of a session.

Save time and effort discovering the right solutions

A structured problem solving process is a surefire way of solving tough problems, discovering creative solutions and driving organizational change. But how can you design for successful outcomes?

With SessionLab, it’s easy to design engaging workshops that deliver results. Drag, drop and reorder blocks  to build your agenda. When you make changes or update your agenda, your session  timing   adjusts automatically , saving you time on manual adjustments.

Collaborating with stakeholders or clients? Share your agenda with a single click and collaborate in real-time. No more sending documents back and forth over email.

Explore  how to use SessionLab  to design effective problem solving workshops or  watch this five minute video  to see the planner in action!

Over to you

The problem-solving process can often be as complicated and multifaceted as the problems they are set-up to solve. With the right problem-solving techniques and a mix of creative exercises designed to guide discussion and generate purposeful ideas, we hope we’ve given you the tools to find the best solutions as simply and easily as possible.

Is there a problem-solving technique that you are missing here? Do you have a favorite activity or method you use when facilitating? Let us know in the comments below, we’d love to hear from you! 

thank you very much for these excellent techniques

Certainly wonderful article, very detailed. Shared!

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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 Is Problem-Solving 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 Do You Solve Business Problems Effectively?

There are many different problem-solving strategies, but most can be broken into general steps. Here is a six-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.

• Use the Five Whys: When assessing a problem, a common strategy is to ask “why” five times. First, ask why the problem occurred. Then, take the answer and ask “why” again, and so on. The intention is to help you get down to the root cause of the problem so you can directly target that core issue with your solution.

2) Creatively Brainstorm Solutions:   State every solution you can think of. Write them down. Seek input from those who possess in-depth knowledge of or experience with the problem you’re trying to solve. These insights will provide you with valuable perspectives you can transform into tangible and impactful solutions.

3) Evaluate Solutions and Make a Decision:   Assess the feasibility of each solution. Is the deadline realistic? Are there readily available resources you can leverage to successfully implement the solution? What is the return on investment of each solution? If necessary, come up with alternative solutions or adjust the initial ones you brainstormed in step 2.

4) Make a Decision: Finally, make a firm decision on one solution. This final solution should clearly address the root cause of the problem.

• Perform a SWOT Analysis: You can use a SWOT analysis to help you decide on the best solution. A SWOT analysis involves identifying the strengths, weaknesses, opportunities, and threats linked to a specific decision. With this framework, your team can assess a decision from various angles, thereby gaining a holistic view of it.

5) Take Action:   Write up a detailed plan. This involves developing a comprehensive roadmap that outlines the steps required to implement your solution. The steps should specify milestones, deadlines, roles, and how to obtain the necessary approvals. To ensure accountability, your entire team should have access to this action plan. Each team member should be able to track and share their progress with the group.

6) Gather and Share Feedback: Problem-solving is not a “set it and forget it” process. It’s a dynamic journey that necessitates ongoing attention, deliberation, and refinement to achieve optimal results. Thus, periodic feedback is critical in validating whether the chosen solution creates the desired impact. It allows key stakeholders to check in and make any necessary changes.

What Are Problem-Solving Skills?

Problem-solving skills are specific procedures that can be used to complete one or more of the six 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 Can You Improve Your 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 taken the time to refine 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.

Enhance Your Problem-Solving Skills with CMOE

Problem-solving skills in business are not developed overnight. Developing then takes ongoing practice and the right guidance to get right. We encourage you to leverage CMOE’s Problem-Solving and Decision Making in the Workplace workshop to further develop your skills. We’ll help you identify new ways to solve problems methodically so you can create greater impact.

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Home » Business Cycle » Problem solving in business

Business problem solving

We all know someone who always seems to have the answer. They’re prepared for any situation and solve problems quickly and decisively. These people are typically great leaders in business and in life. But is business problem solving a natural talent? Or is it a skill you can develop?  

The truth is that business problem solving is a set of skills and strategies that anyone can learn – and it’s more important than ever.   

With the economy in a winter phase and the nature of work transforming before our eyes, there’s no shortage of business problems to solve in today’s economy. Learning how to solve business problems effectively requires focus, decisiveness and self-awareness.

Discover how to solve business problems effectively

Business problem solving: an essential skill

Whether you’re managing a new company or just starting as CEO at a global enterprise, you’re sure to encounter business problems to solve . Dealing with crises . Employee turnover and unhappiness. Inability to scale mindfully. Financial problems. Leadership gaps. Without creative thinking to solve business problems , these issues can quickly build up and lead to the one thing you certainly don’t want: the close of your business.  

Strong leadership and decision-making have the opposite effect: one study even found that extraordinary leaders can double profits at their companies. Business problem solving is an essential skill not only for owners and CEOs, but anyone with entrepreneurial desires or career-climbing dreams.

How to solve business problems effectively

Business problems to solve are easy to come by – the skills needed to make tough choices and act decisively are less common. But with the right strategies, you can develop them and learn how to take your business to the next level .

1. Know where you want to be

Business problem solving always starts with having a plan. If you don’t have goals you’re working toward, you’ll never know when you miss them. The signs of business problems will pass you by.

A traditional business plan isn’t enough, because it only shows you how to get from point A to point B. You need to create a business map – a holistic view of your vision, your mission and all the possible business problems to solve. This map will keep you moving along the route to your ultimate goal: scaling your business and planning an exit strategy .

2. Know where you are

The next step is to get real: be honest about where your business is currently. Look at your financial statements. Survey your employees to get an idea of business problems to solve on the front lines. Ask your colleagues and others in your industry where they are so that you can compare.

It’s important to be realistic at this step. If you have a high risk tolerance , you may be tempted to be overly optimistic. If you’re a perfectionist or have low risk tolerance, you could be more negative than you need to be. Avoid falling in love with your product or your company and make sure you’re taking an objective look at where you are.

3. Identify the problem

In much the same way you ask “What business am I in?” and then “What business am I really in?” you can ask, “What’s the problem?” You’ll likely identify a surface-level answer, like “sales are dropping.” Then ask, “What’s really the problem?” Sales are affected by multiple other business problems to solve , from recruiting top salespeople to providing excellent customer service .

Business problem solving often goes back to the customer. You must provide them with more value than anyone else, through your product and your customer experience. If you’re having trouble identifying your business problem, start with these areas. 

4. Understand the problem

It’s tempting to jump right to solutions once you’ve identified the problem. But pulling weeds out by the top is never effective. You need to get to the root of the issue. When was the last time you did a competitive analysis or surveyed your customers for feedback?

It isn’t enough to perform a typical SWOT analysis and leave it at that. Creative thinking to solve business problems starts with listening . When you listen, you’ll receive data – the opinions of customers, the strategies of competitors. That data will tell a story. Only when you uncover this story will you be able to pull the weed out by the root.

5. Focus on solutions

Tony tells us to “Identify your problems, but give your power and energy to solutions.” Now is the time for solutions – but you can’t do it alone. Get together with your team or your colleagues and brainstorm. Ask the right questions so that you get honest, productive answers. Model various scenarios and rank them based on their outcomes. Apply a framework like the Rapid Planning Method to help you.  

Get a second opinion from your mentor or a group of trusted advisors outside of your company. Sign up for business coaching to run your questions by an expert. Narrow down your options until you’re confident you’ve come to the right solution. Then create a massive action plan and put your business problem-solving skills to use.

Ready to solve your business problems?

Learn how to optimize your entire business strategy and gain an edge over your competition with Tony’s free 7 Forces of Business Mastery program.

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How do Great Leaders Solve Problems in Business?

Category: Behavioral Economics .

Companies today are expected to adapt and respond quickly to challenges in a rapidly changing business environment. Notwithstanding sound planning and flawless strategy execution, businesses can still face problems. While they foresee some of those problems, others can pop up unexpectedly. These unforeseeable problems make it essential for businesses to be agile enough to respond to those challenges quickly and have excellent problem-solving skills to navigate them successfully. Problem-solving is an indispensable part of business management.

In this article, we will examine the following in detail

Introduction

• Understanding the Importance of Problem-Solving in Business
• Types of Business Problems
• Challenges in Problem-solving
• Skills Required for Effective Problem-solving in Business
• A Step-by-step Process to Problem-solving in Business

TL;DR Version

Problem-solving is integral to business success, dealing with diverse issues ranging from operational hiccups to strategic challenges. Identifying and understanding these problems is vital, but navigating potential obstacles during problem-solving, such as cognitive biases, resource constraints, and lack of information, is crucial.

Effective problem-solving skills include research and analytical abilities, creativity, decision-making, communication , time management, and leadership. These skills allow business leaders to dissect complex issues, ideate innovative solutions, make informed decisions, communicate effectively, manage time, and lead teams toward resolution.

The problem-solving process involves defining the problem, understanding its root cause, collecting relevant information, brainstorming potential solutions, evaluating these solutions, choosing the best one, developing and implementing an action plan, monitoring progress, evaluating results, and reflecting on the process for continuous improvement. This iterative process ensures that businesses are resolving immediate issues and refining their problem-solving mechanism for future challenges.

Unmanaged and unmitigated problems can cause severe consequences to businesses. They can lead to project delays, missed deadlines, and financial losses. Moreover, they may negatively impact employee morale and customer satisfaction and even damage the reputation of the company. So businesses must have strong problem-solving abilities.

When businesses have strong problem-solving abilities, they can quickly and proactively rise to the occasion and address the problems, minimizing their impact, preventing them from escalating into bigger problems, and capitalizing on opportunities that arise from those challenges. Ultimately, the problem-solving ability of a company can help them gain a competitive advantage.

To solve problems and fix issues, companies require leaders who can handle complex issues with ease and guide and motivate their teams to identify problems and develop creative solutions to overcome them. They can leverage the collective expertise and experience of the employees to make well-informed decisions that align with the business goals and objectives. Leaders also work with employees to foster a culture of problem-solving to help the company build a resilient business that can thrive in today’s dynamic business environment.

What is Problem-Solving in Business?

Problem-solving involves identifying, analyzing, and resolving issues or challenges arising during various business operations to achieve the desired outcomes and business goals. It involves a systematic approach to defining the problem, gathering relevant information, generating possible solutions, evaluating them, and implementing the best course of action.

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we Cannot solve our problems with the same thinking we used when we created them. Albert Einstein

Why is Problem-Solving Important?

Problem-solving in business is important because of the following reasons.

1. Efficiency

Problems not only hinder progress but also reduce the efficiency of your operations by bringing everything to a halt/slowing you down, causing downtime, and costing you precious productivity. When left unchecked at the initial stages, these problems may also demand additional resources and budget to solve them, leading to cost overruns, losses, and inefficiency. So addressing the problems on time can help achieve efficiency.

2. Profitability

Profitability is one of the topmost priorities of an organization. So any impact on profitability is seen as a problem that requires immediate attention. Effective problem-solving helps businesses identify and address cost inefficiencies, optimize processes, and capitalize on new opportunities, thus improving the bottom line.

3. Leadership

Great leaders emerge during testing times. They can lead the employees, leverage collective effort and give a sense of direction toward finding solutions and workarounds. Problem-solving helps companies identify the right leaders.

4. Teamwork

Problem-solving requires team effort and participation. It calls for collaboration and communication between various departments, teams, and individuals. When companies manage to weather challenges and solve problems effectively, it brings the employees together to work towards a common cause, build stronger teams and create a habit of continuous improvement.

5. Innovation

Problem-solving requires creativity and innovation to find solutions and workarounds. When a company fosters problem-solving culture, it automatically imbibes creative thinking and innovation. It gets reflected in developing new products, services, processes, and best practices.

6. Customer Satisfaction

Customer satisfaction helps businesses retain and find new customers. Problems with the products/services and customer support can lead to poor customer experience. Effective problem-solving helps businesses resolve customer complaints and issues quickly and satisfactorily, thus increasing customer loyalty and retention.

The Problems that Businesses Face Today and how they Solve Them

There are several different kinds of problems that businesses face, including

1. Strategic problems

Strategic problems are related to the long-term direction of a business. They typically involve decisions about resource allocation, product strategy, choosing the market, pricing strategy, product positioning, etc. Solving strategic problems requires a long-term vision, able leadership, and the ability to forecast market trends.

Business problem examples

Selecting the markets.

Businesses need to decide their focus on specific geographic markets, target customer segments, and product categories. They must make these decisions and select the focus areas by analyzing the data and insights into factors, including market size, competition, and the company’s core competencies.

Product development

Developing new products enables companies to remain relevant and achieve leadership in a highly competitive market scenario. They have to meet the customer requirements and provide a compelling reason for customers to purchase them. Solving the problem of new product development requires creativity and innovation and allocating resources for R&D. New products should be developed based on sound market analyses of customer requirements and pain points.

For instance, the need to learn and upskill anytime without compromising work hours pushed the companies to create e-learning platforms.

Positioning the company

Differentiating your business from the competition involves developing a strong brand identity, focusing on a specific niche or segment of the market, or offering unique value propositions. Setting the company apart by gaining a competitive advantage attracts customers. You can solve the problem of positioning your company by doing a SWOT analysis, finding your strengths and unique qualities that enable you to meet the customers’ requirements and address their pain points. You can base your brand identity, USP, and niche on your stand-out qualities that benefit customers. For instance, Volvo positions itself as the company that makes the safest cars in the world.

2. Operational problems

Operational problems are daily issues that hinder companies from efficiently delivering products or services to customers, affecting their ability to meet deadlines and targets. These problems arise from bottlenecks, inefficiencies, and system flaws. Addressing them involves identifying issues, providing employee training, upgrading technology, ensuring product testing and quality control, and implementing contingency planning, deadline management, and risk mitigation.

Business problem-solving examples

Supply chain disruptions.

Supply chain disruptions happen when businesses face challenges in sourcing raw materials or components, leading to production delays or quality issues. For instance, during the pandemic, companies faced chip shortages, which led to losses and the inability to deliver products to customers on time. It also caused a rise in demand and an increase in prices.

Quality control issues

Quality control issues occur when design flaws or manufacturing issues impact the products. Businesses may need to identify and address quality issues to maintain customer satisfaction and loyalty. For instance, it is not uncommon to recall new automobile models, sometimes the ones from specific batches, to replace faulty components with redesigned parts before they might fail.

Managing staffing levels

Fluctuating staffing needs are part of operational issues. At any given time, if a company is understaffed, it can lead to operational inefficiency; if it is over-staffed, the company will suffer from cost infficiency. So, it requires careful planning. You can address the problem by either recruiting or downsizing and restructuring. For instance, the tech companies that designed software solutions for remote and hybrid work environments hired many employees during the pandemic. After the pandemic, when the need for these software solutions decreased, they had to downsize their workforce in light of the impending recession.

3. Financial problems

Financial problems are issues involving managing cash flow, revenue growth, and expenses. They are related to the financial health of a business. Businesses can fix them by managing costs effectively through process improvement and cost-cutting measures.

Managing cash flow

Businesses must ensure that they have enough financial resources on hand to meet their obligations, such as payroll, vendor payments, logistics, managing retail channels, etc. For instance, many start-ups stall despite successful product development and prototyping, as they fail to secure adequate funding to bring the products to the market.

Identifying new revenue streams:

Businesses that focus on a particular niche are always vulnerable to competition and changing market conditions. They need to diversify their revenue streams to maintain growth and profitability. They may have to focus on research and product development to identify new revenue streams. For instance, some of the most successful and established DSLR camera manufacturers faced a major crisis when mirrorless cameras started eating into their market share. They had to revise the product strategy, downsize their manpower, and invest vast resources into developing competitive mirrorless systems to mitigate the company. On the contrary, DSLR manufacturers with diversified businesses remained more resilient.

Managing costs

Businesses must control expenses to maintain profitability. It may involve identifying areas where costs can be cut or negotiating better deals with vendors. For instance, Google is known to initiate moonshot projects. At the same time, they kill non-profitable projects quickly. It has helped the company retain leadership while managing costs judiciously.

4. Human resource problems

HR problems are issues related to recruiting, retaining, and developing talent. They are issues about the management of employees. Managing these problems requires assessing staffing needs, recruiting, restructuring, identifying training and upskilling needs, and retaining top talent through employee engagement initiatives, welfare measures, and career development opportunities.

Retaining top talent

Retaining top talent can be a determining factor for the success of a company. Businesses must build an environment that attracts top talent by creating opportunities for career advancement and offering competitive compensation packages. For instance, highly specialized jobs with business-critical responsibilities, such as chief aero designers in motor racing teams, are hard to find and recruit. So retaining them is crucial for the success of the company.

Addressing employee morale and motivation issues

Lack of motivation, stagnant career, unfavorable team dynamics, etc., are some factors that cause a dip in employee morale. These factors can affect productivity and quality of work. Businesses must address these issues through employee engagement initiatives, career planning, team building, welfare measures, training, upskilling, etc.

Managing a diverse workforce

In an increasingly globalized work scenario, businesses must ensure that they create a work environment that is inclusive and welcoming to employees from different backgrounds and with diverse skill sets. They should also manage hybrid and remote work to address ambiguities and ensure clarity and synergy among teams and individuals based in various locations. For instance, many companies reserve certain positions for people of different racial/ethnic backgrounds or genders to meet their diversity goals. They also put policies and systems in place to prevent/address discrimination in the workplace.

Marketing problems

Marketing problems are related to promoting and selling a company’s products or services. Problems usually arise in understanding customer behavior and preferences and developing marketing strategies that appeal to those customers. Solving marketing problems requires revisiting the marketing strategy, understanding customer needs and behaviors by analyzing data, positioning the products more appealingly, and branding them better to reflect the strengths of the company and its product offerings.

Understanding customer needs and behavior

Customer needs to dictate the direction of product development and positioning. To design and deliver successful products, businesses must gain a deep understanding of customer needs, preferences, and pain points. For instance, the Japanese car makers capitalized on the high gas prices during the oil crisis and managed to capture the market in the US with their more efficient and reliable cars. The sudden loss in interest in the large, thirsty cars caused a considerable shift in the market, allowing Japanese car manufacturers to position their products in line with the customers’ preferences and succeed.

Developing a strong brand identity

Businesses must create a brand identity that resonates with the customers and sets them apart from competitors. For instance, it is common for companies to change their logo and brand identity in line with the changing trends, customer preferences, and product strategy.

Identifying new marketing channels and tactics

Businesses must be able to identify and adapt to changing customer preferences and identify new channels and tactics for reaching those customers. For instance, many retail businesses have adopted an eCommerce strategy to cater to mobile-savvy customers and to reach new markets.

What Skills do Business Leaders Require for Effective Problem-Solving?

Following are some of the skills required for effective problem-solving in business.

1. Research and analytical skills

Problems have various potential implications. Trying to solve them straight away without doing proper research can cause further problems. Business leaders should study the problem to gain a deeper understanding, assess the solutions thoroughly, and test them before deploying them. They also need good analytical skills to review the performance metrics that indicate the problem areas and analyze information and data to understand the problem. Analytical skills help business leaders break down complex problems into smaller, more manageable parts, identify their root causes, avoid bounded rationality in decision making , and develop effective solutions and creative workarounds.

2. Creativity

When the problems are complex and multi-dimensional, they may require unique solutions that never existed before. Finding solutions for these problems requires creativity and a culture of innovation in the company. Business leaders must think creatively and tread unconventional paths to create innovative solutions. For instance, during the pandemic, when customers did not want to take the risk of going to retail stores to buy things but were reluctant to pay for the high shipping costs involved in e-commerce, retail businesses offered solutions such as BOPIS that let customers order online and collect their purchases safely from collection booth/kiosk at a convenient time. It helped them meet customer needs by offering the best of both worlds

3. Decision-making

Effective problem-solving in business requires sound decision-making skills. Problem-solving often involves making choices and tough decisions. For instance, the decision to axe a product line that has performed well in the past but has no future potential is a tough one to make. But retaining it will cost resources and yield decreasing returns. Great business leaders evaluate multiple options/solutions and make decisions in the company’s best interest. Being decisive or having decision clarity also means making the right decisions at the right time. Delays in decision-making can cause severe consequences even if you ultimately make the right decision. So business leaders must analyze everything and make the right decision when it matters the most.

4. Communication

Business leaders cannot single-handedly solve problems. Problem-solving requires a team effort. Good business leaders harness the potential of every employee with their communication skills and excellent coordination. They communicate effectively with colleagues, customers, and stakeholders to identify problems and develop solutions. For instance, in a crowded restaurant, the chef needs to coordinate the kitchen staff continuously, check if they are doing their part efficiently, control food quality, and make sure that food is served at the right table as quickly as possible. Lack of communication from the chef can escalate into a full-fledged nightmare, where customers keep waiting for their orders, kitchen staff make mistakes and deliver poor quality food, and the waiters get the flak for not serving food on time. Such situations can ruin the reputation of the restaurant and lead to the loss of customer trust. So good business leaders must communicate and build synergy among the individuals within and among other teams to get work done effectively.

5. Marketing problems

6. Leadership

Problem-solving is about working with many individuals and bringing the best out of them. So business leaders need great leadership qualities to motivate and inspire their teams to work together and solve problems. For example, innovations come from the R&D department; they get incorporated into products by the product development team, and the products are positioned and promoted in the market by the marketing team. Great business leaders lead product development and deployment by coordinating with all these teams, getting their insights, considering their views, and making important decisions regarding product strategy, product positioning, and branding. Situational Leadership is essential to deal with shifting priorities. Leaders motivate the teams and guide them in the right direction. Without good leadership, a company cannot solve problems effectively.

A Step-by-Step Process to Problem-Solving in Business

Problem-solving in business is often an iterative process. So the steps involved may need to be repeated or revised as new information becomes available. Problem-solving usually involves the following steps:

• Define the problem; include any present symptoms or effects.
• Understand the root cause of the problem and find out how it impacts the business.
• Collect all the necessary information related to the problem by analyzing data, conducting interviews, researching, and seeking input from others.
• Brainstorm with the stakeholders and generate potential solutions to the problem. Encourage open communication, collaboration, and participation among team members.
• Weigh the pros and cons, evaluate all the potential solutions, analyze the risks, and consider the feasibility of each.
• Choose the best solution from the evaluated solutions and consider how it will impact the stakeholders, including customers, employees, suppliers, and shareholders.
• Develop an action plan to implement the chosen solution, detailing specific steps, timelines, and responsibilities.
• Implement the solution, monitor progress closely, adjust the plan, make changes as required, and communicate those changes to the stakeholders.
• Evaluate the results, determine if the solution addressed the problem, assess its effectiveness, and identify any areas for improvement.
• Reflect on the problem-solving process, and identify and document the lessons learned.
• Consider how you can improve the process for future problem-solving efforts.

Problem Solving Key Takeaways

Problem-solving is a critical skill for business success. It involves identifying, understanding, and resolving issues in various facets of business operations and strategy. Common obstacles during problem-solving can include cognitive biases, resource constraints, and lack of information. Business leaders must navigate these potential pitfalls to ensure effective resolution of issues.

Essential skills for effective problem-solving include research and analytical abilities, creativity, decision-making, communication, time management, and leadership. These skills enable business leaders to dissect complex issues, devise innovative solutions, make informed decisions, effectively communicate, manage time, and guide teams toward resolution.

Problem-solving is an iterative process that involves multiple stages, from defining the problem and understanding its root cause to brainstorming and evaluating potential solutions, choosing the best one, and developing and implementing an action plan. This process also includes monitoring progress, evaluating results, and reflecting on the process for continuous improvement. An effective problem-solving method is the root cause analysis method. Ultimately, successful problem-solving in business is not just about resolving immediate issues but also about refining and improving the problem-solving process to tackle future challenges more effectively.

Problem Solving in Business FAQs

Answer: The four types of problem-solving strategies typically include:

Trial and Error: Involves trying different solutions until the problem is solved. It’s often used when there are limited possibilities that can be explored quickly.

Algorithm: A step-by-step procedure that, if followed correctly, will always lead to the solution of the problem. It is highly logical and often used in mathematical problems.

Heuristic: A general problem-solving strategy that involves using rules-of-thumb or shortcuts. Heuristics may not always yield the perfect solution but can often lead to a satisfactory one in a reasonable time frame.

Insight: Sometimes also referred to as creative problem-solving. It involves sudden realization, a flash of inspiration, or an ‘Aha!’ moment that provides a solution.

• What is an example of problem-solving in business?

Answer: A common example of problem-solving in business is addressing a sudden drop in sales. The problem-solving process would begin with identifying and defining the problem (drop in sales). The next step would involve researching and analyzing the issue to understand its root cause, such as market conditions, competition, or internal factors. Brainstorming for potential solutions could include improving the product, adjusting pricing, or enhancing marketing efforts. After evaluating and selecting the best solution, an action plan would be developed and implemented. Progress would be monitored, results evaluated, and the process reflected upon for future problem-solving efforts.

• Why is problem-solving important in business?

Answer: Problem-solving is vital in business as it enables organizations to navigate challenges and obstacles that could hamper their growth and success. It allows businesses to identify issues, understand their implications, and devise effective solutions. This process not only resolves the immediate issue at hand but also helps prevent similar problems in the future. Moreover, effective problem-solving can lead to improved business processes, innovation, and a competitive advantage. It also plays a crucial role in customer satisfaction, profitability, and overall sustainability of the business.

• What is the most important problem-solving tool for business?

Answer: There isn’t a one-size-fits-all problem-solving tool for all businesses, as the most effective tool often depends on the specific problem and the business context. However, one universally important tool is effective communication. Clear, open, and honest communication fosters better understanding of problems, facilitates brainstorming of solutions, and aids in the implementation of action plans. Other essential tools include data analysis tools (for understanding and diagnosing problems), brainstorming techniques (for generating solutions), and project management tools (for implementing solutions).

Great leaders possess a unique problem-solving mindset that enables them to navigate complex challenges in the business world. By following this step-by-step guide, you can cultivate these essential skills and unlock your potential for success. Remember, problem-solving is not just about finding solutions but also about fostering a culture of innovation, collaboration, and continuous improvement. Embrace the challenges, seize the opportunities, and lead confidently as you embark on your journey towards becoming an exceptional problem solver and a remarkable leader in the business realm.

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What Is Creative Problem-Solving & Why Is It Important?

• 01 Feb 2022

One of the biggest hindrances to innovation is complacency—it can be more comfortable to do what you know than venture into the unknown. Business leaders can overcome this barrier by mobilizing creative team members and providing space to innovate.

There are several tools you can use to encourage creativity in the workplace. Creative problem-solving is one of them, which facilitates the development of innovative solutions to difficult problems.

Here’s an overview of creative problem-solving and why it’s important in business.

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What Is Creative Problem-Solving?

Research is necessary when solving a problem. But there are situations where a problem’s specific cause is difficult to pinpoint. This can occur when there’s not enough time to narrow down the problem’s source or there are differing opinions about its root cause.

In such cases, you can use creative problem-solving , which allows you to explore potential solutions regardless of whether a problem has been defined.

Creative problem-solving is less structured than other innovation processes and encourages exploring open-ended solutions. It also focuses on developing new perspectives and fostering creativity in the workplace . Its benefits include:

• Finding creative solutions to complex problems : User research can insufficiently illustrate a situation’s complexity. While other innovation processes rely on this information, creative problem-solving can yield solutions without it.
• Adapting to change : Business is constantly changing, and business leaders need to adapt. Creative problem-solving helps overcome unforeseen challenges and find solutions to unconventional problems.
• Fueling innovation and growth : In addition to solutions, creative problem-solving can spark innovative ideas that drive company growth. These ideas can lead to new product lines, services, or a modified operations structure that improves efficiency.

Creative problem-solving is traditionally based on the following key principles :

1. Balance Divergent and Convergent Thinking

Creative problem-solving uses two primary tools to find solutions: divergence and convergence. Divergence generates ideas in response to a problem, while convergence narrows them down to a shortlist. It balances these two practices and turns ideas into concrete solutions.

2. Reframe Problems as Questions

By framing problems as questions, you shift from focusing on obstacles to solutions. This provides the freedom to brainstorm potential ideas.

3. Defer Judgment of Ideas

When brainstorming, it can be natural to reject or accept ideas right away. Yet, immediate judgments interfere with the idea generation process. Even ideas that seem implausible can turn into outstanding innovations upon further exploration and development.

4. Focus on "Yes, And" Instead of "No, But"

Using negative words like "no" discourages creative thinking. Instead, use positive language to build and maintain an environment that fosters the development of creative and innovative ideas.

Creative Problem-Solving and Design Thinking

Whereas creative problem-solving facilitates developing innovative ideas through a less structured workflow, design thinking takes a far more organized approach.

Design thinking is a human-centered, solutions-based process that fosters the ideation and development of solutions. In the online course Design Thinking and Innovation , Harvard Business School Dean Srikant Datar leverages a four-phase framework to explain design thinking.

The four stages are:

• Clarify: The clarification stage allows you to empathize with the user and identify problems. Observations and insights are informed by thorough research. Findings are then reframed as problem statements or questions.
• Ideate: Ideation is the process of coming up with innovative ideas. The divergence of ideas involved with creative problem-solving is a major focus.
• Develop: In the development stage, ideas evolve into experiments and tests. Ideas converge and are explored through prototyping and open critique.
• Implement: Implementation involves continuing to test and experiment to refine the solution and encourage its adoption.

Creative problem-solving primarily operates in the ideate phase of design thinking but can be applied to others. This is because design thinking is an iterative process that moves between the stages as ideas are generated and pursued. This is normal and encouraged, as innovation requires exploring multiple ideas.

Creative Problem-Solving Tools

While there are many useful tools in the creative problem-solving process, here are three you should know:

Creating a Problem Story

One way to innovate is by creating a story about a problem to understand how it affects users and what solutions best fit their needs. Here are the steps you need to take to use this tool properly.

1. Identify a UDP

Create a problem story to identify the undesired phenomena (UDP). For example, consider a company that produces printers that overheat. In this case, the UDP is "our printers overheat."

2. Move Forward in Time

To move forward in time, ask: “Why is this a problem?” For example, minor damage could be one result of the machines overheating. In more extreme cases, printers may catch fire. Don't be afraid to create multiple problem stories if you think of more than one UDP.

3. Move Backward in Time

To move backward in time, ask: “What caused this UDP?” If you can't identify the root problem, think about what typically causes the UDP to occur. For the overheating printers, overuse could be a cause.

Following the three-step framework above helps illustrate a clear problem story:

• The printer is overused.
• The printer overheats.
• The printer breaks down.

You can extend the problem story in either direction if you think of additional cause-and-effect relationships.

4. Break the Chains

By this point, you’ll have multiple UDP storylines. Take two that are similar and focus on breaking the chains connecting them. This can be accomplished through inversion or neutralization.

• Inversion: Inversion changes the relationship between two UDPs so the cause is the same but the effect is the opposite. For example, if the UDP is "the more X happens, the more likely Y is to happen," inversion changes the equation to "the more X happens, the less likely Y is to happen." Using the printer example, inversion would consider: "What if the more a printer is used, the less likely it’s going to overheat?" Innovation requires an open mind. Just because a solution initially seems unlikely doesn't mean it can't be pursued further or spark additional ideas.
• Neutralization: Neutralization completely eliminates the cause-and-effect relationship between X and Y. This changes the above equation to "the more or less X happens has no effect on Y." In the case of the printers, neutralization would rephrase the relationship to "the more or less a printer is used has no effect on whether it overheats."

Even if creating a problem story doesn't provide a solution, it can offer useful context to users’ problems and additional ideas to be explored. Given that divergence is one of the fundamental practices of creative problem-solving, it’s a good idea to incorporate it into each tool you use.

Brainstorming

Brainstorming is a tool that can be highly effective when guided by the iterative qualities of the design thinking process. It involves openly discussing and debating ideas and topics in a group setting. This facilitates idea generation and exploration as different team members consider the same concept from multiple perspectives.

Hosting brainstorming sessions can result in problems, such as groupthink or social loafing. To combat this, leverage a three-step brainstorming method involving divergence and convergence :

• Have each group member come up with as many ideas as possible and write them down to ensure the brainstorming session is productive.
• Continue the divergence of ideas by collectively sharing and exploring each idea as a group. The goal is to create a setting where new ideas are inspired by open discussion.
• Begin the convergence of ideas by narrowing them down to a few explorable options. There’s no "right number of ideas." Don't be afraid to consider exploring all of them, as long as you have the resources to do so.

Alternate Worlds

The alternate worlds tool is an empathetic approach to creative problem-solving. It encourages you to consider how someone in another world would approach your situation.

For example, if you’re concerned that the printers you produce overheat and catch fire, consider how a different industry would approach the problem. How would an automotive expert solve it? How would a firefighter?

Be creative as you consider and research alternate worlds. The purpose is not to nail down a solution right away but to continue the ideation process through diverging and exploring ideas.

Continue Developing Your Skills

Whether you’re an entrepreneur, marketer, or business leader, learning the ropes of design thinking can be an effective way to build your skills and foster creativity and innovation in any setting.

If you're ready to develop your design thinking and creative problem-solving skills, explore Design Thinking and Innovation , one of our online entrepreneurship and innovation courses. If you aren't sure which course is the right fit, download our free course flowchart to determine which best aligns with your goals.

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5 keys to solving the right problems in your business.

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Two multi-ethnic workers working in a plastics factory, standing on the factory floor, looking at ... [+] the control panel of one of the machines. The African-American man is pointing to the panel. His coworker, an Hispanic woman, is holding a digital tablet.

There is no doubt that today’s business challenges are more complex and global than ever, but I still see my peers and business leaders using the same strategies that worked for them years ago. Aspiring new business owners often sink millions into innovations and marketing plans that never get off the ground, and overlook simple details that cost them time, energy, and success.

For example, many businesses are currently struggling with getting their employees back to the office for work, to improve business productivity, accountability, and customer satisfaction. In fact, this challenge clearly has personal team considerations, as well as business implications. Many people prefer the flexibility and comfort of working from home, outweighing results and growth.

I’m not sure if the real problem here is business process or people management, or both, but there is certainly much room for error on both sides. As a consultant, I found some good strategies for not solving the wrong problem in a recent book, “ Solve the Real Problem ,” by Roger L. Firestien, PhD., from Buffalo State University, Innovation Resources, and other roles.

He has real credentials in academia, as well as problem-solving and innovation experiences with many businesses around the world. He offers some key recommendations that I also espouse for how to zero in on the root challenge and not waste large amounts of time and money you cannot afford:

1. Creative questions are key to problem definition. Focus on chains of fact-finding questions and judgement or decision questions to bring out solution ideas. In all cases, defer judgment and avoid excuses like “I don’t have time.” One good question can generate whole new fields of inquiry and can prompt changes in entrenched thinking.

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Creative questions are also useful for exploring new business ideas. Just remember that solving customer problems is the challenge here, rather than internal problems. The process and the results are the same – starting with creative questions to find the real opportunity.

2. Adopt a more effective problem-solving mindset. Analyze your habitual approach to problem solving and be prepared to challenge your own assumptions. Avoid settling for symptoms as the problem or jumping to conclusions based on poor information or your own biases. Sometimes we get in our own way and end up working on the wrong thing.

This strategy also applies to new opportunities for customer growth as well as organizational problems. I still see too many technologists whose mindset is focused on the beauty of their innovation, rather than the problem it solves for customers.

3. Don’t trust or act on your first impression. We all make wrong judgments on first impressions, especially with recurring problems or with people who are of a different nationality, race, and ethnicity. First impressions are usually wrong, especially if they are made in an emotional environment, under time constraints, or with too little information.

4. Get an outside perspective with no agenda. The best way to get an outside perspective is to tap into people who run in circles different from your own. Look for “creative catalysts” who can provide a fresh perspective on the problem and potential solutions. Beware of experts in the relevant technology who may have their own biases.

5. Look for the bigger picture, not minutiae. Make sure that you don’t become unable to see the “forest for the trees” by looking only at a few details of the problem. Consciously step back and take a broader view of the challenge ahead. This approach also builds alignment with related perspectives and issues, and results in better long-term solutions.

In the real world, my experience is that none of these strategies will work without conscientious business leadership, committed team members, a positive business model, and a viable customer opportunity. Your team also needs the creativity skills and training to properly diagnose problems and challenges, generate solutions, and put these solutions into action.

I encourage all of you to recognize that every business in today’s world will encounter challenges and world-class problems. Thus it behooves all of us to continuously update our business problem-solving strategies, support a culture of innovation, and keep moving forward in your quest to make the world a better place, and enjoy the journey to get there.

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Adopting the right problem-solving approach

May 4, 2023 You’ve defined your problem, ensured stakeholders are aligned, and are ready to bring the right problem-solving approach and focus to the situation to find an optimal solution. But what is the right problem-solving approach? And what if there is no single ideal course of action? In our 2013 classic  from the Quarterly , senior partner Olivier Leclerc  highlights the value of taking a number of different approaches simultaneously to solve difficult problems. Read on to discover the five flexons, or problem-solving languages, that can be applied to the same problem to generate richer insights and more innovative solutions. Then check out more insights on problem-solving approaches, and dive into examples of pressing challenges organizations are contending with now.

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Four Takeaways From Business Analysis Graduate Benny Huang

Entrepreneurial experience drives problem-solving spirit.

Benny Huang’s entrepreneurial energy was evident since he was little. It’s a characteristic that Benny says he was born with. Driven to be his own boss, Benny chose the startup route after earning a two-year degree from City College of San Francisco rather than pursue his acceptance to San Francisco State University.

The result of his efforts was P. Land, a one-hour photo-developing shop that opened its doors in 1993. Remember, this was a time when one-hour photo development was all the rage, when mini-labs with compact machines allowed for rapid photo development.

But where P. Land diverged from its big-box competitors was in its clientele: Rather than service individuals, Benny’s company invested in heavy-hitting business partnerships such as Coldwell Banker, California Department of Transportation, insurance companies and magazine publishers. After five successful years in business, Benny found it was time to move on.

That inherent entrepreneurial spirit was morphing into a hyper-focused look into solving business problems. It’s what led him to work as a manager at Warner Bros. Studio Store , an operations manager at San Francisco International Airport , a project manager at Impark and then as a regional manager at Schnitzer Properties .

The common theme within each of these roles?

“I was always fascinated with and interested in identifying and analyzing work problems, and then coming up with solutions to solve them to better our business operation processes ,” Benny relates. “There’s always this desire inside of me to seek out a better way to solve business problems, to better understand different business concepts, to analyze and form a better business plan or strategy.”

What Benny was drawn to is business analysis . It seemed a natural step forward for Benny to learn how to lead efforts to define needs and design solutions that deliver value to stakeholder organizations. Pulling from his past work experience, Benny has the full skill set to utilize business strategy, operational processes and procedures, requirements management, and subject matter expertise to lead organizations through complex changes.

Takeaway Number One: On Choosing Our Certificate Program in Business Analysis

I was drawn by the outstanding reputation of UC Berkeley Extension , and wanted to take advantage of a super-knowledgeable, experienced group of professional instructors to further improve and solidify my business skills. I heard about the program from my friends and then did a Google search.

The courses were packed with a lot of real-life work problems and examples and the corresponding business analysis competency to solve them.

Takeaway Number Two: Gaining Real-World Learning

It was a wonderful experience going through the classes and interacting with my fellow students and instructors. The courses were packed with a lot of real-life work problems and examples and the corresponding business analysis competency to solve them.

The classes were intense and challenging and effective in helping me to identify and define solutions , solve real-life work problems and improve my decision-making skills . 

My instructors were patient, attentive and super-knowledgeable in the subject matter. Specifically, Dr. Brian Harman—my instructor in Business Analysis Planning and Methods —really stood out for me. His sessions were well-designed. Combined with his vast knowledge and effective course materials, learning in his section was easy, fun and enjoyable.

Learning online was a wonderful experience: I could learn in the comfort of my own home without worrying about a long commute, looking for parking, et cetera. 

My employer believes that educational courses are essential in adding value to and successfully managing our business.

Takeaway Number Three: Lessons Learned Parlayed to Work

When I earned the certificate in 2019, I moved from a senior regional manager to a regional director role at Schnitzer Properties. I oversee the day-to-day operations and the profit-and-loss (P&L) of more than 400,000 square feet of commercial spaces comprising retail shops, restaurants, offices, car-rental companies and parking in the San Francisco Bay Area.

We utilize data analytics to identify trends and needs among different patron groups to optimize our operations. We do this by offering different products and rates to meet their needs, resulting in cost savings and increased overall efficiency.

Earning the Business Analysis certificate has positively impacted my tenure at the company as I am a better leader because of it.

Takeaway Number Four: Work Hard to Meet Your Goals

Personally, earning the certificate feels great because I did very well, academically, throughout the curriculum. Professionally, having these new skills has helped me to become a better team collaborator, make more sound business decisions, lower our operation costs and improve our P&L performance. 

My advice to you is to pick the right certificate that meets your goals and then focus, stay disciplined, continuously learn and surround yourself with positive people—your instructors and classmates! And, most importantly, stay persistent in pursuit of your goals!

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60 Problem Solving Business Ideas To Start In [2024]

Are you interested in problem solving business ideas? If you want to establish a business that solves daily difficulties, there are several areas you might focus on.

This post highlights some creative problem-solving business ideas you can consider.

In this list of ideas, you can find:

• Home-based businesses.
• Low-investment online business ideas that solve problems.
• Unique business opportunities you can start from home.

Here is the full list:

1. Start an appliance repair business

An appliance repair business helps clients install, repair, and maintain common household appliances like microwaves, dishwashers, refrigerators, cookers, etc. An appliance repair technician can specialize in certain lines of appliances or offer general services.

To become an appliance repair technician, apply for the prerequisite training course and focus on acquiring the necessary work experience. You may work under an appliance engineer and kickstart your business when you have relevant skills.

How much you can make: $4,000 — $100,000/month

Retro Radio Farm founder, Allen Chiang, earns $50k per year as a side business restoring old radios and offering Bluetooth MP3 upgrades, with the business growing 20% every year.

2. Start an equipment cleaning & repair business

The equipment repair market is witnessing an upsurge and will maintain the momentum over the next decade.

Given the rise in demand for electronic products and home appliances, there will be an increase in equipment cleaning and repair, services critical to the continued functionality of various equipment. It is only a matter of time before an appliance break needs a bit of upkeep or even some cleaning and greasing.

Thus, if you have basic mechanical or electrical engineering skills and experience, why not take your knack for keeping things running and turn it into a good equipment cleaning and repair business? To start, you may operate door-to-door from your neighborhood and open a physical location as the business grows.

How much you can make: $708,333/month

How long does it take to build: 180 days (?)

This case study follows the story of a couple who bought a profitable but limited manufacturing company for $535,000, revamped it, and took it in a new direction to grow their annual revenues to approximately $10,000,000 by developing ultrasonic equipment that addressed industrial cleaning using water-based detergents instead of environmentally toxic solvents.

3. Start an auto repair business

Many people just love to tinker with, fix and repair cars. This is an all-consuming hobby for some people. They like to take things apart and figure out how things work. The process of fixing and repairing cars is almost therapeutic for them.

An auto repair business is a rewarding way to make extra money or build an entire business.

You can do it in the comforts of your own home, working around your schedule and getting paid handsomely for it. The United States automotive service market is expected to reach $75B by 2026 .

How much you can make: $415,000/month

How long does it take to build: 40 days (?)

Finish Line Towing & Auto Repair is Wisconsin's largest roadside assistance provider, bringing in $5 million in annual sales through its dedication to customer service, effective dispatching, and clean service, with a goal of expanding to other markets in Wisconsin and Illinois.

4. Start an ac repair business

Research shows the HVAC market will grow at a CAGR of 6.1% and reach $82.5 billion in the next few years.

The growing construction business in major emerging economies and the ever-increasing end-user markets, such as data center markets, are some of the major factors driving the growth of the HVAC services market.

Like other electrical appliances, HVAC units break often and require regular maintenance. As a result, the demand for HVAC repair is high.

Therefore, starting an AC repair business can be profitable. To start, you need a skilled AC repair technical team. Target commercial and residential customers, and market your business online as most people search for AC repair services through the web.

How much you can make: $200,000 — $1,878,618/month

TruTech Tools, LTD is one of the largest online stores in the niche market of tools and test instruments for HVAC/R Technicians, with $16 million in sales in 2020 and 20% YoY growth thanks to a focus on providing an exceptional customer experience and staying true to their core values.

5. Start a chimney repair business

Brick and stone chimneys require maintenance and upgrade to keep them structurally sound and functional. Some regular chimney repair tasks will include repairing and replacing rain pots, rebuilding chimney crowns, and installing new bases and flashing counters.

Thus, starting your own chimney repair business can be a very profitable, so long as you have basic masonry skills and experience. To start, you can offer the services to your neighbors just to showcase what your business offers. If you are not an experienced mason, you can hire skilled professionals and outsource the orders to them.

How much you can make: $21,000/month

Patriot Chimney, a Virginia-based chimney repair company founded by three friends, generated over $212,000 in its first year of operation, using a mix of digital and in-person marketing and customer retention strategies, and plans to expand its business and customer base with new initiatives including an online store and non-profit organization.

6. Start a language translation service

Language translation services bridge the linguistic barriers, helping businesses reach a wider audience outside of a single language. A language translation job is an opportunity to cover a wide range of topics and meet people from different cultures.

To become a language translator , master a second language and earn some experience so you become fluent in the second language.

How much you can make: $40,000 — $550,000/month

How long does it take to build: 70 days (?)

DEMAN Translations grew from 6 employees and 1.5 million euros in turnover in 2015 to 17 team members and 3.5 million euros in sales in 2020 after acquiring 12 other translation agencies, with a goal to reach 6 million euros this year and 10 million euros in 2022.

7. Create an online course

An online course business involves creating and selling digital classes teaching specialized skills or knowledge to subscribed students.

As an entrepreneurial course creator, you identify educational gaps around topics you have expertise in and develop engaging video lessons and supplementary materials.

With flexibility around self-paced or cohort-based structures, building a student base provides passive income potential.

For founders who enjoy information-sharing, launching an online course platform presents a lucrative way to monetize your instructional talents with small startup costs by serving eager lifelong learners seeking convenient access to emerging subjects.

How much you can make: $350 — $3,735,000/month

How much does it cost to start: $1,850 (?)

How long does it take to build: 90 days (?)

Learn how one couple created a successful personal finance blog, The Savvy Couple, that now makes over $20,000 per month and has sold thousands of digital workbooks and courses, by focusing on purposeful content and optimizing their ROI with efficient time management.

8. Start a child care business

Starting a childcare business is a great way to build a steady income. You will have the opportunity to be your boss and set your hours even from home. You will have the satisfaction of building one-on-one relationships with children and watching them grow over the years.

A childcare business is an excellent idea. It is both a personal and economical investment for its owners. This is especially true if you are considering starting your non-profit organization or becoming licensed to provide child care. Running a childcare business allows you to help children develop while also making money. As with any business endeavor, running a childcare business has its ups and downs, but it can be very rewarding.

How long does it take to build: 60 days (?)

9. Become a social media influencer

Social media has become integral to people's lives and daily routines. Given the importance of social media, brands are flocking to different social media platforms such as Instagram, YouTube, Facebook, and TikTok in the hope of connecting with their target audience.

A popular approach taken by these brands is engaging social media influencers. A social media influencer has established credibility in a specific industry and has access to a vast audience they can persuade to act based on recommendations.

Anyone can become a social influencer so long as they have the right strategy. Choose a popular niche based on your interests and start creating relevant content.

How much you can make: $2,500 — $300,000/month

How much does it cost to start: $601 (?)

How long does it take to build: 155 days (?)

How one mother built a profitable frugal motherhood, life, and travel blog from scratch, using Instagram, Pinterest, and paid sponsorships to grow from 0 to 18.5K followers and generate $1,500-$3,000 per month in less than two years.

10. Start an online fitness business

Thinking of starting an online fitness business?

Online fitness is growing rapidly in popularity because it’s convenient, affordable, and accessible to everyone. The best part is that you can stay in your home to start.

Starting an online fitness business can be a great way to make money and help people. When you start an online fitness business, you don’t have to worry about overhead costs like rent or maintaining a physical location - all you need is a computer and an internet connection to get started.

How much you can make: $2,000 — $108,333,333/month

How much does it cost to start: $2,000 (?)

This case study is about a former personal trainer who launched his online personal training platform, TeamFFLEX, starting with no money and a lot of drive, and grew it into a 6-figure business in less than a year, now doing $48,000 a month with potential for continued growth.

11. Start an event planning business

Event planners handle different tasks related to making the business a success. Some of the event planner’s responsibilities include:

• Conducting research
• Creating the event design
• Finding an ideal site
• Arranging for food, décor, and entertainment
• Planning logistics to and from the event
• Sending invitations
• Supervising at the site etc

To start this business on a budget, begin by honing your organizational and communication skills.

Next, create a detailed business plan outlining your services, target market, and pricing structure.

Utilize free or low-cost online tools for marketing, and consider starting small by offering services for smaller events before expanding your business as you gain experience and resources.

How much you can make: $35,000 — $500,000/month

How much does it cost to start: $1,000 (?)

Akshay Patel's event rental and decor business, Simply Decor, Tents, and Events, saw an average ticket price of $2,000, as their advertising budget decreased from $20k to $5k, leading to 40% of their clients coming through social media advertising, 30% from expos, and 30% online in google, yahoo, and other platforms.

12. Start a tutoring business

Starting a tutoring side hustle is a great way for teachers and students to earn extra monthly income.

If you are considering becoming a tutor, find an ideal tutoring niche, and craft a tutoring website.

Then, find your tutoring clients and market your side hustle online. You can choose to offer online tutoring as a part-time or full-time engagement.

How much you can make: $1,000 — $375,000/month

How much does it cost to start: $100 (?)

How long does it take to build: 15 days (?)

Time commitment per week: Min. 5 hours/week

A 22-year-old entrepreneur started an online SAT/ACT tutoring company from his bedroom which has seen a linear increase in student sign-ups each month, currently bringing in an average revenue of $15,000 a month and plans to triple in 2020.

13. Start an online language coaching business

The world has become more globalized. Businesses have become cross-border, and executives have to travel to meet new customers. One thing that is obvious is that there is a need for language translation services.

If you have proficiency in one or more foreign languages then you can consider working as a language coach.

Teaching a language online is intensive as you have to meet and communicate with the audience often, and check their progress. If you are looking for an opportunity to earn working online, consider starting online language lessons.

How much you can make: $240 — $13,500,000/month

How much does it cost to start: $500 (?)

How long does it take to build: 212 days (?)

Marlena Jorn started Marlena Jorn Tutors in teaching German to a group of people privately; she learned through experience what worked best to design her class structure and advertising/marketing materials, and from word of mouth has gained a very successful response so far.

14. Start a junk removal business

Households and businesses need help hauling away broken furniture, clearing out trash, and even emptying properties during a foreclosure. Therefore, the demand for junk removal services is high. Starting a junk removal business can be profitable if you own a box truck and are looking for self-employment opportunities.

To begin, perform market research in your area, and apply for the necessary regulatory permits or licenses. Build a website and market your services.

How much you can make: $4,000 — $37,000,000/month

How long does it take to build: 20 days (?)

23-year-old Sam Evans founded You Call We Haul Junk Removal which brings in around $20,000 in revenue per month with a profit of 65% per job, servicing any individuals who have unneeded junk, and aims to franchise the business in the long-term.

15. Build a home security system

Home security systems are an effective way to deter criminal activities and safeguard valuable possessions.

Homeowners opt for high-quality security systems to monitor their homes remotely, while also enjoying the added benefit of lower insurance premiums, up to 20%.

Starting a home security systems business can be a profitable venture, especially as more homeowners prioritize safeguarding their investments.

To start, you can partner with a home security systems manufacturer as a distributor or technical expert. Alternatively, you can create your own line of security systems from scratch.

To become a successful business owner in the home security industry, it’s important to have a basic understanding of technology and electrical systems.

This knowledge will enable you to install the systems correctly and earn recommendations from satisfied customers.

How much you can make: $70,000/month

Konnected founder Nate Clark shares how he developed an open-source solution to his own home security struggles, growing the business to generate an estimated $1 million in sales annually.

16. Become a cybersecurity blogger

Every day, businesses and private systems are targeted by cyber attacks.

Highlights of the Check Point Cyber Security Report show that cyberattacks against corporate networks increased by 50% in the past year.

Therefore, IT professionals and all computer users are interested in understanding the changing cybersecurity landscape.

If you're interested in earning a good income by teaching cybersecurity, starting a cybersecurity blog is a great idea.

However, the cybersecurity niche is vast, dynamic, and can be overcrowded.

To ensure success, you'll need to identify your target audience and understand their pain points.

Research your competition to find out what type of content they are covering, and focus on creating even better content to engage and educate your readers.

How much you can make: $25,000/month

How long does it take to build: 30 days (?)

All Things Secured is a personal security and privacy brand with over 100,000 YouTube subscribers, 160 written guides, and 110 videos that have reached 11 million people worldwide; the founder's goal is to make online security and privacy attainable to anyone regardless of their age or technical proficiency.

17. Start a digital agency

A digital agency’s task is to make a business reach its advertising, marketing, or technology-related goals. Anyone with enough knowledge and passion for digital marketing can start and run a profitable digital marketing agency. With the proper skill set, the right tools, and the right mindset, you can start a successful digital agency.

The global digital agency market reached a value of nearly $305B in 2020 . The future growth prospects of the digital agency market are projected to be high due to the rising population of people consuming and creating content through digital channels.

How much you can make: $6,500 — $43,700,000/month

Power Move Marketing is an innovative digital marketing company founded by Hailey Brooke McFadden, which has achieved an impressive monthly income of $22,075 and is projected to make almost $300,000 in its first year, by offering a one-stop-shop for e-commerce businesses looking for a marketing powerhouse with a female positive culture.

18. Start a phone case business

With the number of mobile phone users increasing, there are opportunities for accessory makers such as phone case manufacturers to make a profit. Building a business around making and selling phone cases is relatively easier to produce. You can print labels on-demand, starting with a lower risk, or buy them in bulk and sell them online.

The global mobile phone protective cover market is expected to reach 75.62 billion in the next few years.

Phone protective covers often make a statement and reflect a person’s social and cultural preferences. Phone case manufacturers take advantage of such considerations and keep their products relevant and up-to-date to attract a more extensive customer base.

Remember, as with any industry with a low entry barrier, there will be competition. Therefore, you must study customers’ tastes and preferences and offer customized phone cases.

How much you can make: $120,000 — $125,000/month

Felony Case, a Toronto-based company designing unique iPhone cases, started as a small shop on Etsy and has grown to become an internationally recognized fashion iPhone case brand sold in top tier retailers like Nordstrom, Holt Renfrew, Indigo, Urban Outfitters, Revolve, Free People, and made over half a million dollars in revenue last year.

19. Start a supplements company

A supplement business makes money by selling dietary supplements, vitamins, protein powders, and health foods to customers.

These products are often sold directly to customers or through distributors and retailers.

Your target customers will likely include fitness enthusiasts, health-conscious individuals, wellness influencers, and those who prioritize their nutrition daily.

Starting a supplement brand is becoming increasingly popular because it's relatively inexpensive, and you can run the business from your home.

How much you can make: $1,000 — $3,500,000/month

How long does it take to build: 220 days (?)

A military officer turned entrepreneur built sports nutrition brand Bare Performance Nutrition from $15,000 in year one to on track to generate $6m in revenue this year, leveraging social media platforms and creating interactive, relatable and valuable content to create a community and a brand voice.

20. Start a marketing agency

Marketing agencies can be a great option for businesses looking to advertise in different ways. For businesses, hiring a marketing company can help them achieve success as they don't have to spend money on employees or needed equipment. Marketing agencies are not inexpensive and there are many different variables that come into play when deciding which one is the best fit for your business.

You want to start a marketing agency, but don't know where to begin. You're not alone, there are thousands of entrepreneurs across the globe that have the same ambition. Luckily for you, compiled a list of how other agencies were able to grow their agency and scale effectively.

How much you can make: $1,300 — $465,583,333/month

How long does it take to build: 43 days (?)

A successful podcast production company that grew from one client making $15/hour to a team of 10 contractors producing over 30 shows per week with revenue of over $10k/mo, primarily through referrals and with a focus on providing high personal touch and being picky about working only with clients who are a good fit.

21. Start a life coaching business

Life coach helps people in various areas of their lives using a combination of emotional intelligence, professional knowledge, and experience.

Life coaching is a popular industry worth over $2.85 billion, and the number of life coaches has increased by 33% between 2015-2019 .

This is a very profitable business and can be started at virtually no cost. You’ll need a computer, a high-speed Internet connection, and a LinkedIn account to start. Then, you can begin coaching part-time in your spare time until you build up your clientele.

How much you can make: $100 — $660,000/month

How much does it cost to start: $750 (?)

GrowthMentor, a platform connecting vetted growth mentors for one-on-one calls, founded by Fotis Panagiotakopoulos, has had over 2,500 mentorship calls booked to date and has seen success in using word of mouth, content marketing, and leveraging other people's networks as the primary drivers of customer acquisition.

22. Start a furniture business

The furniture industry involves designing, manufacturing, and selling various types of furniture for household and commercial purposes. With the increase in flexible workspaces and the real estate industry’s growth, the furniture business’s demand is boosted.

The furniture business is easy to start and does not require high investments. However, it is first essential to know your niche, for example, office, domestic, home furniture, and luxury items.

The furniture business needs a lot of preparation and prior knowledge. Taking business classes, learning about your local market, and making a solid business plan is advisable. In general, if your products are unique and one of a kind, consumers will be willing to pay a higher, including the shipping cost.

How much you can make: $1,700 — $999,999/month

How long does it take to build: 120 days (?)

Sasha Weekes, owner of Timber Grove Studios, turned her fine arts and cabinetmaking education into a successful home-based woodworking business that grew from a side project to netting 20-50% profits month-to-month and up to $10,000 in sales during peak periods through Etsy, with her company's growth continuing to increase through other social media outlets.

23. Start a meal prep business

A meal preparation business is a service that delivers prepared meals to its clients in the comfort of their own homes. The meal preparation business is a fast-emerging niche that offers a real opportunity to earn good money. To succeed, the starter must be efficient in the meal preparation and ensure proper communication skills. Besides, the entrepreneur must keep time when it comes to delivery to avoid customer disappointment.

A global survey shows that demand for food delivery service is on the rise. This is as people get busier with their careers and other more important tasks, leaving limited time to prepare meals and bond with friends.

Therefore, starting a meal preparation business can be a great way to earn extra monies.

How much you can make: $5,000 — $4,170,000/month

How long does it take to build: 7 days (?)

Healthy Chew is a profitable weekly meal preparation service that grew from 200 to 10,000 weekly bowls in just over 3 years, with an overall sales figure of $1.8 million, achieved through effective branding and personalised customer service.

24. Start a skin care product line

The skincare business is a multi-billion dollar one, and it shows no sign of slowing down. New anti-aging products are entering the market at a nearly exponential rate, and the competition for consumers' money is growing more and more.

The industry was valued at 130 billion USD in 2021 and will expand at an annual growth rate of 4.6% up to 2030. This is surely a type of business that you should not miss. You'll need to build your creativity on your products and make sure that it is all safe and useful in improving the skin of your customers.

How much you can make: $300 — $1,000,000/month

How long does it take to build: 165 days (?)

Two moms start a side hustle selling all-natural body products, doubling sales since their launch in 2017 with over 75 craft shows, promoting a non-profit source for their shea butter and self-promotion through podcasts, lining up retail interest from exposure.

25. Start a freelance writing business

Freelance writing can be a good career choice if you are looking for a flexible online job.

Working as a freelancer gives you the flexibility to define your work schedule. You can work from home at any time. Freelance writers work across various niches, writing about various topics assigned by the client,

To earn good money as a freelance writer, you need the following personal qualities:

• Strong writing skills
• Ability to meet deadlines
• Stay on the cutting edge
• Be a self-starter
• Be up-to-date with the current writing tools & writing trends
• Proper communication skills

How much you can make: $700 — $320,000/month

How much does it cost to start: $300 (?)

How David Tile turned a freelance writing gig into an $80k/month business, discussing lessons learned through managing growing demands and maintaining a remote team operation.

26. Start a graphic design business

Graphic designers create logos, brochures, ads, and other marketing materials for companies and organizations. They also design websites and other digital content, including social media graphics.

Graphic designers may specialize in one type of design (such as print or web design), or they can be generalists who do everything from logo design to social media graphics.

Starting a graphic design business can be one of the most rewarding things you’ll ever do. It’s not easy, but if you’re passionate about design and want to make a living, starting your own graphic design business is a great way to go.

Consider a suitable pricing structure when starting a graphic design business. You may charge the customers per hour or fixed pricing based on the project’s nature.

How much you can make: $2,500 — $1,000,000/month

How long does it take to build: 87 days (?)

Learn how two friends bootstrapped a SaaS business to $55k monthly recurring revenue (MRR) by creating a simple graphic design tool for non-designers and focusing on content marketing for customer acquisition.

27. Become a freelance app developer

A freelance app developer is a programmer who creates mobile apps for Android and iOS devices. Freelance app development business targets creating various apps that give a user-friendly experience.

To become a freelance app developer, first, touch up on your skills. There are several courses available online. Once you obtain the certification, choose your niche and focus on your skill set.

Then the best way to showcase your work is to build a portfolio website where you will display your skills, projects, and testimonials. Another way to promote yourself is to create your brand and blog. This will, in turn, build a network, and you will be able to connect with people and attract more clients.

How much you can make: $10,000 — $91,000/month

How much does it cost to start: $350 (?)

A software agency started by a non-technical founder helps diverse clients with their minimum lovable product, boasting a revenue of over $700,000 this year with a 20% profit margin and a team of 8.

28. Start a natural beauty product business

Natural beauty products include aloe vera, honey, or cocoa butter. They contain no chemical or synthetic elements.

The global natural skin care products market size was valued at $6.7 billion in 2021 .

Thinking about launching a beauty product line? What’s holding you back? Check out our case studies below to see how others have done it!

How much you can make: $300 — $325,000/month

How long does it take to build: 227 days (?)

A mother-of-two started a $5k/month skincare business after experimenting with beeswax and honey to create luxurious all-natural products, growing her business to attain over $7,500 in sales per month via multiple sales streams, including $4,000 per month at markets.

29. Start a bridal accessories store

Bridal accessories are a great way to help you complete your wedding day look. Bridal accessories are something similar that surrounds weddings in our society. Bridal accessories are all the rage nowadays. These pretty things create the perfect set of accessories for the bridal.

The Bridal Wear market in the USA is estimated at $26B in 2020 .

A bridal accessories store can provide you with high income and the ability to hire. Bridal occasions are exceptional and endure several phases. You could start a bridal accessories business with access to millions of customers from the first introduction until they get married.

How much you can make: $50,000/month

East Meets Dress, an e-commerce store that offers Chinese wedding dresses and traditional outfits, grew to a six-figure annual recurring revenue ($25k/month) in just one year by targeting Asian-American brides in the U.S and high school students looking to wear cheongsams to prom to celebrate their heritage.

30. Start a home decor business

Are you a talented interior designer? Do you know you can turn your hobby into a side income opportunity? Home décor as a side hustle is a great opportunity to build a brand as you earn extra income. You first need to work on your portfolio to launch a successful home décor side hustle.

The portfolio communicates to your potential customers your potential when it comes to home décor. You may use your home as an example or request a friend for an opportunity to do their home décor as a sample for your portfolio. Once you have a portfolio, market your business, and remember to include photos from your previous gigs to increase the chances of closing a sale.

How much you can make: $2,000 — $415,000/month

How long does it take to build: 48 days (?)

Less is More Organizing Services, founded by Sarah Giller Nelson, is a home organizing service that operates in two states, serving an average of 95 households per year with an 85% repeat customer rate, offering services by the hour with a 4-hour minimum, and using a guided decluttering process to help customers achieve their goals.

31. Start a dating coaching business

A dating coach offers training and guidance to improve the client's success in dating and relationships.

The dating coach evaluates the results of the client's actions and decides what changes to make to the client's dating approach to improve the outcome. Besides, dating coaches offer guidance and support, helping clients negotiate the often confusing first stages of their early romantic experiences.

Dating coaches have been around for years. A more recent trend is dating coaches who help people with conditions like autism overcome their situations and begin dating people they love. Do you love helping people achieve their dating goals? You can start a dating coach service today!

To start, identify a niche and create a website, to help you reach more people. You can target teenagers, divorced people, or older adults and help them through their dating life.

How much you can make: $1,500 — $683,333/month

How much does it cost to start: $20 (?)

How long does it take to build: 45 days (?)

Time commitment per week: Min. 3 hours/week

Meet Ta'Veca Collins, founder of Romance On The Go, a concierge service that promotes romance and intimacy; since becoming a preferred vendor for The W Hotel Fort Lauderdale, their gross income has increased to around $3,200.00 monthly, and they are currently expanding their team to meet the demands of new partnered hotels.

32. Start a 3D Printing Business

3D printing is a process that assembles objects layer by layer and starting a business in this industry can be a very creative venture.

You will need investment in the right equipment and materials, and the acquisition of 3D modeling and design skills. You will also need to regularly calibrate and maintain your 3D printers to deliver consistent results.

Plan how you'll handle shipping and logistics, and leverage technology to find new applications of 3D printing in all industries.

How much you can make: $42,000 — $330,000/month

How long does it take to build: 360 days (?)

Founder Roy Kirchner shares how he started an eCommerce business specializing in 3D printing with an initial investment of $65,000, which now averages monthly gross sales of $330,000 and has partnered with international manufacturers and local businesses while offering technical support and education.

33. Start a travel-planning app business

In the past, arranging trips on your own was a challenge only a few people could take on. Travel agents were on the rise at the time and handled everything from hotel reservations to ticket booking and traveler's itineraries.

Today, travel agents are at the risk of becoming obsolete as more travelers embrace the online travel trend. According to research, the online travel booking service will experience a compound annual growth rate of 9.0% in the coming years.

Therefore, starting an online travel-planning app business can be a profitable venture. Some potential opportunities include:

• Travel itinerary planning apps
• Travel booking apps
• Location-tracking apps
• Language translation apps

The travel-planning apps should provide users with instant availability of information, a one-stop platform, & simplify transactions,

How much you can make: $22,000 — $114,200,000/month

How much does it cost to start: $5,000 (?)

Visa List is a successful micro start-up that provides one-stop visa information for travellers, earning $5000/month on average with 350K monthly active users and has helped over 2 million users with their visa requirements, all starting from a personal frustration with visa processes.

34. Become a solar consultant

Solar consultants help explain renewable energy systems and resources available to potential customers.

Solar consultants often travel to different sites to evaluate power needs and provide cost estimates to homeowners and businesses willing to install solar energy systems.

To become a solar consultant, you need basic education and experience with solar systems. Since the solar industry is evolving very fast, you must be able to study new systems and understand the latest developments in this industry.

How much you can make: $2,000,000/month

Solar Energy Partners, a solar-focused company founded by Alex K Williams, has achieved more than 400% growth since inception, and is expanding into new markets while offering best customer service and training programs.

35. Dog Transportation Business

Dog transportation businesses are yet another thriving and profitable business that an entrepreneur who is looking towards starting a pet-related business should consider starting.

These types of businesses transport dogs from one place to another, usually within a country or from one country to another. If you're interested in this kind of business, then you should consider getting into the pet transportation business.

According to internal statistics, the average dog transporter clears between $8,000 and $10,000 per month .

36. Start a metal scraping business

Metal scrapping refers to the recovery and processing of recyclable metal materials. Metal scrappers collect end-of-life products and structures and refine or sell them to metal product manufacturing and fabrication companies, where the scraps are reintroduced as raw materials.

To start a metal scrapping business, find out the possible sources of scrap metal and ensure you understand the legal and tax issues concerning operating the business. Spot a location where you will get a deal for your scrap metal business, and start collecting the scrap metals.

37. Become a drywall installer

Drywall installers work in specialty construction. They measure, cut, and fasten the drywall panels on the interior walls of residential and commercial properties. To become a drywall installer, you must complete a three-to-four-year apprenticeship program and possess a certificate. Their professional skills include moving heavy loads and performing physical tasks.

You can work under a certified and registered contractor, or start your own drywall installation business, so long as you have enough years of experience working as a junior drywall installer.

How much you can make: $40,000/month

How much does it cost to start: $7,000 (?)

How long does it take to build: 365 days (?)

A second-generation family-owned plumbing and leak detection business shares their success in obtaining repeat business through word of mouth referrals, staying true to their core principles, and using cutting-edge technology to provide top-notch service to clients.

38. Create an order fulfillment software

The order fulfillment software integrates with the sales channels, making shipping and fulfillment stress-free, so businesses focus on scalable growth. To build your order fulfillment software, research what’s available in the market today, identify gaps, engage target customers on features they need most, and create unique software.

How much you can make: $25,000,000/month

ShipMonk, a technology-driven fulfillment center, went from $130K in revenue in 2014 to nearly $30M in 2018 and was named America's Fastest Growing Fulfillment Center, with projected revenue of $60M for 2019.

39. Start an interior landscaping business

Interior landscaping is the practice of designing, installing, and maintaining greenery and biophilic elements inside buildings.

Commercial and residential property owners are embracing interior landscaping at a higher rate than ever before. Interior landscaping offers an opportunity to replicate the beauty and environmental benefits previously associated with the outdoors.

If you enjoy home improvement and interior décor, consider starting an interior landscaping business.

40. Start a healthy food processing business

With the growing preference for healthy and functional food, starting a healthy food processing plant can be rewarding.

The advancements in the food processing industry, innovation in processing technology, and continuous growth in demand for processed food are some excellent reasons to consider opening a healthy food processing business.

To start a healthy food processing plant, find out a market gap, and research the demand. Understand customers changing tastes and focus on offering the best throughout.

How much you can make: $52,944/month

Bluebird Provisions Bone Broth is North America's fastest-growing bone broth brand, doing 49,000 per month and growing 50% YoY, with 5000% growth in customer base since starting, thanks to an SEO-focused strategy, email marketing, referrals, and Amazon.

41. Start a waste recycling business

If you have a passion for saving the planet and going green, starting a waste recycling business may be the right route for you to take. Waste recycling is the process of collecting and processing materials that would otherwise be trashed and processing them into new products.

Starting a waste recycling business is not only profitable, but it can also benefit the community and the environment. To start a waste recycling business, research the industry and determine the costs involved. Then, register the business and equip your waste recycling facility.

How much you can make: $230,000 — $37,000,000/month

This case study showcases the story of a locally owned and operated residential waste removal business based in Colorado Springs started with a pick-up truck and a $35k loan, which now has 51 dumpsters, two roll-off dumpster delivery trucks, two residential garbage trucks, and is projecting $700-800k in sales for 2020.

42. Start a typing speed testing business

Typing speed is an excellent skill that can increase marketability and job opportunities. Some of the jobs requiring a high typing speed include:

• Data entry clerks
• Copy editing
• Medical transcriptionist
• Court reporter
• Administrative assistants
• Freelance writing

Employers within these industries use a typing speed program to evaluate the potential candidates, so they can reach a hiring decision. Therefore, if you have program development skills, you may consider creating a typing speed-testing tool.

Your target customers could be people preparing for typing jobs and employers who want to ascertain whether potential candidates have the required typing skills.

43. Start a shipping business

The shipping business is an exciting and dynamic way to earn a living, and it’s a perfect opportunity for those looking for a change of pace from the typical 9-5 office job. This business entails transporting goods and cargo from one place to another. It can involve everything from small packages and envelopes to large freight containers and pallets.

To run a successful shipping business, you should keep a few key things in mind. Firstly, it’s essential to establish a good working relationship with your clients. You need to be reliable, punctual and have excellent communication skills. This will ensure that your clients come back to you time and time again.

Another tip for shipping business success is investing in high-quality equipment and vehicles. This could include a variety of trucks, trailers, and cargo containers. The right equipment is essential to ensure that your cargo arrives safely and on time.

Lastly, it’s essential to be well-versed in the ins and outs of the industry. This could include understanding the different regulations and laws that apply to shipping and staying up-to-date with new developments in the field. Being informed and knowledgeable about the industry will give you an edge over competitors.

Overall, the shipping business is an excellent opportunity for those who want to be their boss and take control of their career. With hard work, dedication, and a little know-how, you can make your shipping business a booming success.

How much you can make: $65,000 — $2,400,000/month

How a logistics company grew its revenue over 300% in 2 years, starting with just 2 vans and 25k+ square feet of warehouse space, and focused on relationships, efficiency, and building trust with its customers.

44. Become a freelance web developer

Are you passionate about technology and looking for a way to earn extra income while working on your terms? How about becoming a freelance web developer? Firstly, web development is a highly sought-after skill in every industry. Secondly, the pay rate is higher than freelance writers, and freelance graphic designers earn. As a freelance web developer, you put yourself in a high-value proposition. However, it would be best to learn languages like HTML, CSS, and Javascript to get started. Find a niche and start building anything and everything. Create a personal brand and build up your portfolio.

How much you can make: $6,000 — $148,000/month

How much does it cost to start: $2,500 (?)

Cantilever Web Design and Development, with clients including IBM and small businesses, reached a revenue of over $750k last year with a gross margin of 50% by prioritizing Digital Hospitality, fostering high-quality relationships, and constantly improving their process and philosophy.

45. Start a recruiting business

A recruiting business is a service and advice-based business that helps companies and organizations find the right candidates for their jobs. These businesses usually serve as a medium between the two entities to create a win-win situation. The job seeker can get the job of their dreams, while the business entity can get a fit candidate for the job.

Recruiting is one of the fastest-growing industries in the United States. Over the past ten years, businesses are struggling to find quality employees and candidates are searching for more opportunities. If you know this, then you have everything you need to make money fast with recruiting.

Starting a recruiting business from scratch is easier than you think. You can have your own staffing agency in just a few weeks and start making a great income while working less.

How much you can make: $100 — $125,000/month

How long does it take to build: 105 days (?)

Techintern.io connects startups and tech companies with the best software developer students at colleges across North America and has achieved #1 Product of the Day and #2 Product of the Week on Product Hunt, making $15,000 per month.

46. Chief Information Security Officer (CISO)

According to a PWC report, more than 80% of companies now have a chief information security officer (CISO) on the management staff. This trend indicates that organizations are becoming aware of cyber threats, and they are taking steps to prevent attacks. CISOs are senior-level executives who ensure that an organization's cyber security plan is aligned with its vision, operations, and technology. They work closely with staff members to identify risks and devise ways to mitigate them without causing disruptions. They also manage security policies within the organization.

The average salary for a Chief Information Security Officer in the United States is $234,025 .

47. Start a business plan writing business

A business plan writing business is a service that helps entrepreneurs and small business owners create well-structured and comprehensive business plans.

These plans serve as roadmaps for their businesses, outlining goals, strategies, and financial projections. Starting a business plan writing business involves skills in research, analysis, and writing.

You’ll work closely with clients to understand their vision and then translate it into a professional document that can be used to attract investors, secure loans, or guide their business growth.

This low-cost business idea requires minimal initial investment, mainly for marketing materials and a basic online presence, making it an accessible option for aspiring entrepreneurs.

How much you can make: $62,500/month

How much does it cost to start: $35 (?)

How long does it take to build: 150 days (?)

Content-Whale, a content curation agency, has achieved a Rs. 4 crore ($514k/year) turnover 4-5 years after being started with just Rs. 2500 ($35), and has a pool of more than 500 writers, aiming to become a market leader in the global content market.

48. Start a dating app

A mobile dating app is one of the most popular mobile-only businesses for creating an ecosystem and generating revenue. But, with the help of a robust development team, you can surpass all your competitors and create a sleeker end product than anyone else in this market.

Dating apps have made their way into an industry that was gaining enough traction. The online Dating Market size was valued at $7.35B in 2020 and is projected to reach $10.87B by 2028.

How much you can make: $11,250,000/month

How long does it take to build: 579 days (?)

How Whitney Wolfe, co-founder of Tinder, built dating app Bumble - where women make the first move - with close to 30 million downloads, after leaving Tinder alleging sexual harassment.

49. Start an internet infrastructure business

Internet infrastructure is a collective term referring to all hardware and software systems that constitute essential components in internet operation. Common internet infrastructure includes routers, switches, hubs, bridges, gateways, load balancers, and servers.

The internet has become a critical component of every business we transact today. Its adoption is expected to continue multiplying. The new connections will require additional internet infrastructure, a trend that will create business opportunities.

Telecommunications companies have provided the infrastructure to allow data flow around the planet. Private entrepreneurs are also chipping in to help meet the demand for internet connectivity and deliver an excellent user experience.

Experts predict the network infrastructure segment will reach $191.8 billion . The largest subsegment will be the Service Provider Network Infrastructure. Therefore, starting an internet infrastructure company could be your next great business opportunity.

How much you can make: $150,000/month

How long does it take to build: 500 days (?)

KelTech IoT founder Mark Kellett shares insights on building a next-generation energy and infrastructure company bridging the energy and telecoms gap by creating more efficient and sustainable solutions as network demands increase in the age of IoT, with projected revenues expected to be greater than $100M after 5 years.

50. Start a Long Haul Trucking Business

Long haul trucking is one of the sectors contributing significantly to economic growth. Besides, with the modern marketplaces, consumers depend on long-haul truckers to bridge the gap between them and favorite suppliers across the globe.

Thus, if you have a passion for starting a business that focuses on trucking, a long-haul trucking business would fulfill your dream.

Before investing in a long-haul truck, study the market and identify the business opportunities that will be most pleasing to you. Then, buy or lease a suitable long-haul truck and focus on doing what it takes to keep your business profitable while satisfying your customers.

51. Start a travel company

Travel companies sell transportation, lodging, plan trips, and admission to entertainment activities to individuals and groups.

If you love traveling, you can start a company that organizes trips for different people. Choose a niche and ensure travel packages that suit them best.

How much you can make: $10,000 — $114,200,000/month

Under30Experiences is a travel company for people aged 21-35 that runs small group trips around the world, with over 800 five-star reviews on Facebook, Google, and Yelp combined, and nearly hitting $5M in revenue before the COVID-19 pandemic.

52. Start a recycling farm waste business

Farm waste is produced as a result of various agricultural operations. The farm waste can include manure, harvest waste, fertilizer from fields, pesticides, etc.

Recycled farm waste can be turned into energy, fertilizer, molecules, and other materials that benefit economic and environmental sustainability.

53. Start a drug testing business

Drug testing examines illegal or prescription drugs in urine, saliva, hair, or sweat. The purpose of drug tests is to look for drug abuse or misuse.

The drug testing profession is highly in demand at ports of entry and exit and the sporting sector. A drug testing business can be a lucrative business opportunity. You will need a fully equipped laboratory and an elaborate business marketing plan to reach the relevant customers.

How much you can make: $100,000/month

This case study showcases how an entrepreneur identified a gap in the market and built a successful business that generates $30k per month, by saving employers time and money on employee drug testing.

54. Start a personal styling business

A personal stylist advises individuals on aesthetic choices such as new fashion trends, clothing styles, colors, and make-up. To become a personal stylist, you must have a detailed style portfolio, a qualification in fashion, make-up, or a related discipline. Prior experience in the fashion industry will be an added advantage.

How much you can make: $150 — $5,934/month

How much does it cost to start: $1,200 (?)

How long does it take to build: 21 days (?)

On Brand founder Brian McEuen curates personalized selections of clothing for men online, sending emails to individual users without duplicate products, with 75 current users and an annualized revenue run rate of $1800.

55. Start a tourist guide business

There's no denying the profitability of a tourism business. If you know the state and cities well, starting a tour guide business can be a very lucrative idea. All you need is a license, and you can soon start working as a tour guide.

Listed are the steps on how to start a tour guide business.

• Register your tour guide name business
• Obtain necessary licenses
• Open a bank account for business transactions
• Organize your business operations
• Start to promote and get clients

How much you can make: $200 — $8,110,000/month

How much does it cost to start: $1,500 (?)

No Code Map App is a no code builder that allows businesses to create custom interactive maps with dynamic filters automatically based on their dataset, generating >$400 in the first full month of monetization.

56. Start a mobile phone repair kiosk

A cellphone repair kiosk is a low-startup cost business; hence easy to start. However, the profit margins may be low as you start the business, but they increase over time as you become well-known and successful.

To start a mobile phone repair kiosk, find streets with high foot traffic, and open a store. Advertise your business widely to get more foot traffic to your shop.

57. Start a roof repair business

Roof repair and replacement services remain in demand among homeowners and commercial property owners. The need for roof repair services is often because of storms and old roofs that become leaky, requiring immediate replacement.

If you want a home improvement business opportunity, consider starting a roof repair business. To start the roof repair business, you need to be a registered professional roofer, equipped with the right roofing tools, and have the skills to re-design and re-roof properties.

Register your business and acquire the necessary licenses to start marketing the roof repair services.

58. Start an aviation maintenance and repair business

Mid-sized airlines are outsourcing repairs and routine maintenance services to specialty shops, a trend set to increase rapidly. Thus, starting an airline repair and maintenance service can be rewarding if you are an aviation engineer or are interested in the business. Services of an airline repair company include inspection, general maintenance, and repair to ensure the aircraft is operational and safe.

To start an airplane repair and maintenance business, you may target private or commercial airlines looking to outsource the repair and maintenance service. If you do not have the necessary skills, you may employ skilled and experienced aeronautical engineers, look for customers, and focus on growing your business.

59. Start a drone repair business

The drone industry is expected to grow by a CAGR of 28.58% over the next few years, reaching $47.38 billion. As drone usage is poised to go mainstream in many sectors, starting a drone repair business can be rewarding.

However, the drone repair business is capital intensive, so you will need huge capital to run a successful business. To start a successful drone repair business, research the market and decide the best niche to focus on.

60. Start a drain repair service

Over time, drain pipes at commercial and residences will become clogged and require regular servicing to keep the dirty water flowing. When it comes to the efficiency of drainpipes, residential and commercial property owners want to hire a reliable plumber.

To become a drain pipe specialist, you need at least a high school diploma or GED. To gain a higher skill level, you may take a degree course before joining a company for an internship to gain the necessary plumbing experience.

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Falling in Love With Problems Worth Solving: Tackling the Climate Crisis With Design Thinking

As sustainability tops the agenda for many global companies, it’s no secret that green business is good business. In response to the climate crisis, the UN Sustainable Development Goals are a call to action for governments and business leaders globally.

At Hult, we recognize the fundamental role business must play in building a sustainable future. There’s an urgent need for innovative, creative, and ethical leadership to navigate tomorrow’s business challenges. Through the integration of design thinking principles into our curriculum, we’re helping to foster this new generation of creative change-makers who are ready to make a meaningful impact on business and society.

Harnessing design thinking for innovation

Design thinking quite literally means thinking like a designer. It involves using creative thinking to approach complex customer problems from different angles—truly thinking outside of the box. It is a human-centered, collaborative, and iterative approach to problem-solving.

Design Thinking for Innovation , a core course for master’s students at Hult, harnesses the skill of creative problem-solving for world-changing impact. Led by Dr. Henrik Totterman, the course is structured to guide students through a comprehensive learning journey, starting with understanding the fundamentals of design thinking and progressing toward its practical application in developing innovative solutions.

Each session delves into key topics within the design thinking methodology, such as understanding and truly empathizing with customer needs, mapping the customer journey, undertaking thorough market research, product prototyping, and user testing. Through a hands-on learning approach, students engage in team assignments that require them to apply design thinking principles to real-world challenges.

The course aims to cultivate the ability to identify business challenges and apply creative solutions using the principles of design thinking. The focus is always on human-centric innovation, using design thinking to reframe problems, come up with alternatives, and iterate toward improved solutions.

  “For me, design thinking is the process of developing a truly customer-centric solution to a problem, while always questioning how the solution can be even better.” Linus Horn, MIB Class of 2024, Fooga team member

Design thinking in action: The Greener Business Challenge

The Greener Business Challenge is a team-based project at the heart of Dr. Totterman’s course, worth 30% of the final grade. The challenge tasks students with accelerating the green transition, using the principles of design thinking to create and pitch sustainable business solutions that address some of today’s most pressing environmental concerns, aligning with the UN Sustainable Development Goals.

Teams are responsible for undertaking market research, prototyping their ideas, and demonstrating the viability and scalability of their proposed venture. Along with an executive summary and explainer video, teams also needed to produce a business development pitch deck and present it to multiple executives.

Sometimes we want to hurry to find a solution to a problem when we don’t really understand the problem at all. We need to invest time in trying to deeply understand the problem to be able to come up with a solution. Juan Fernández Fernández, MIB Class of 2024, Build Green team member

Student-ideated solutions ranged from businesses designed to tackle plastic waste and move towards a circular economy, to 3D-printed fashion and AI-assisted cosmetic purchasing. By identifying environmental issues and crafting solutions balancing viability and ecological stewardship, this project develops the core competencies needed for tomorrow’s ethical businesspeople.

Here’s an overview of just three unique, student-scoped concepts:

Fooga: Redefining Food Sustainability

The problem: Excessive food consumption leads to massive waste, with the US alone wasting an estimated 40% of food.

The solution: Fooga offers high-quality excess food at reduced prices to low-income households while composting perishables to create nutrient-rich soil for local farmers. This innovative approach not only reduces waste but also promotes community well-being.

Watch the video to see Fooga in action and understand the design thinking process behind their solution:

EcoGlam: Revolutionizing the Cosmetics Industry

The problem: The cosmetics industry generates substantial waste through single-use packaging.

The solution: EcoGlam introduces cosmetic refill stations, in-store wellness experiences, and a gamified app to incentivize environmentally conscious consumers. By promoting sustainability and consumer engagement, EcoGlam sets a new standard for eco-friendly beauty practices.

See how the EcoGlam concept works:

Build Green: Shaping the Future of Sustainable Construction

The problem: Buildings account for a significant portion of global carbon emissions and energy consumption, yet sustainable materials remain costly.

The solution: Build Green leverages technology to reduce household energy consumption and innovative designs to drive sustainable new home construction and renovations. Through strategic alliances and tech-focused solutions, Build Green paves the way for eco-conscious living.

“One of my biggest takeaways from the course is that we should use our creativity not just to create a profitable business but also one that gives back to the community. Maria Camila Aguirre Giraldo, MIB Class of 2024, Fooga team member

At Hult, we’re committed to nurturing business leaders who are not only prepared to navigate the complexities of the global landscape but are also equipped to drive positive change in both business and society. We couldn’t be more proud to showcase the achievements of Dr. Totterman’s master’s students, as just a small example of what Hultians can achieve if they quite literally put their minds to it.

“To ‘fall in love with the problem’ before attempting to find a solution, is a mantra that’s been ingrained in me ever since I had the privilege of being in Dr. Totterman’s class.” Firas Bidawi, MIB Class of 2024, EcoGlam team member

Design thinking is more than just a methodology; it is a philosophy that fosters innovation by placing the human experience at the center of problem-solving. So, can we think our way out of the climate crisis? The collective creative brainpower of a Hult classroom suggests we can.

Katie Reynolds

Related posts, why design thinking is an essential competency for business students in 2024, drip by drip—the first non-profit organization addressing the wastewater problem in the textile industry from hult alum amira jehia, the best dual degree combinations for the job you want, the future of finance: adapting to new technologies, generations, and esg, alumni success story: peter windischhofer and kilian kaminski of refurbed, best & worst super bowl 2024 ads: lessons in brand strategy.

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A.I. Start-Ups Face a Rough Financial Reality Check

The table stakes for small companies to compete with the likes of Microsoft and Google are in the billions of dollars. And even that may not be enough.

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By Cade Metz ,  Karen Weise and Tripp Mickle

Cade Metz and Tripp Mickle reported from San Francisco, and Karen Weise from Seattle.

Call it the end of the beginning of the A.I. boom.

Since mid-March, the financial pressure on several signature artificial intelligence start-ups has taken a toll. Inflection AI, which raised $1.5 billion but made almost no money, has folded its original business. Stability AI has laid off employees and parted ways with its chief executive. And Anthropic has raced to close the roughly $1.8 billion gap between its modest sales and enormous expenses.

The A.I. revolution, it is becoming clear in Silicon Valley, is going to come with a very big price tag. And the tech companies that have bet their futures on it are scrambling to figure out how to close the gap between those expenses and the profits they hope to make somewhere down the line.

This problem is particularly acute for a group of high-profile start-ups that have raised tens of billions of dollars for the development of generative A.I., the technology behind chatbots such as ChatGPT. Some of them are already figuring out that competing head-on with giants like Google, Microsoft and Meta is going to take billions of dollars — and even that may not be enough.

“You can already see the writing on the wall,” said Ali Ghodsi, chief executive of Databricks, a data warehouse and analysis company that works with A.I. start-ups. “It doesn’t matter how cool it is what you do — does it have business viability?”

While plenty of money has been burned in other tech booms, the expense of building A.I. systems has shocked tech industry veterans. Unlike the iPhone, which kicked off the last technology transition and cost a few hundred million dollars to develop because it largely relied on existing components, generative A.I. models cost billions to create and maintain. The cutting-edge chips they need are expensive and in short supply . And every query of an A.I. system costs far more than a simple Google search.

Investors have poured $330 billion into about 26,000 A.I. and machine-learning start-ups over the past three years, according to PitchBook, which tracks the industry. That’s two-thirds more than the amount they spent funding 20,350 A.I. companies from 2018 through 2020.

The challenges hitting many newer A.I. companies stand in contrast to the early business results at OpenAI, which is backed by $13 billion from Microsoft. The attention it has generated with its ChatGPT system has allowed the company to build a business charging $20 a month for its premium chatbot and offered a way for businesses to build their A.I. services with the technology that drives its chatbot, which is called a large language model. OpenAI pulled in around $1.6 billion in revenue over the last year, but it is unclear how much the company is spending, two people familiar with the company’s business said.

OpenAI did not respond to requests for comment.

But even OpenAI has had challenges broadening sales. Businesses are wary that the A.I. systems can generate inaccurate answers. The technology has also been troubled by questions about whether the data that supported the models infringed on copyrights.

(The New York Times sued OpenAI and Microsoft in December for copyright infringement of news content related to A.I. systems.)

Many investors point to Microsoft’s rapid sales growth as evidence of A.I.’s business potential. In its most recent quarter, Microsoft reported an estimated $1 billion in sales from A.I. services in cloud computing, up from essentially nothing a year ago, said Brad Reback, an analyst at the investment bank Stifel.

Meta, on the other hand, doesn’t expect to make money for years off its A.I. products, even as it increases its infrastructure spending by up to $10 billion this year alone. “We’re investing to stay at the leading edge of this,” Mark Zuckerberg, Meta’s chief executive, said during a call with analysts last week. “And we’re doing that at the time when we’re also scaling the product before it is making money.”

A.I. start-ups have been challenged by that gap between spending and sales. Anthropic, which has raised more than $7 billion with backing from Amazon and Google , is spending about $2 billion a year but pulling in only about $150 million to $200 million in revenue, said two people familiar with the company’s financials, who requested anonymity because the figures are private.

Like OpenAI, Anthropic has turned to partnerships with large, established tech companies. Its chief executive, Dario Amodei, has been courting customers on Wall Street, and it recently announced that it was working with Accenture , the global consulting company, to create custom chatbots and A.I. systems for companies and government organizations.

Sally Aldous, a spokeswoman for Anthropic, said that thousands of businesses were using the company’s technology and that millions of consumers were using its publicly available chatbot, Claude.

Stability AI, which does image generation, announced last month that its founding chief executive, Emad Mostaque, had resigned , just a week after the resignation of three researchers who were part of the five-person team that built the company’s original technology.

It was on track to generate about $60 million in sales this year against about $96 million in costs from its image generation system, which has been available to customers since 2022, a person familiar with its business said.

Stability AI’s financial position looks better than those of language-model makers like Anthropic because developing image generation systems is less expensive, A.I. investors said. But there’s also less demand to pay for images, so the sales prospects are more uncertain.

Stability AI has been operating without the support of a tech giant. After raising $101 million from venture capitalists in 2022 , it needed more funds last fall but was struggling to show investors that it could sell its technology to businesses, said two former employees, who declined to speak publicly because they were not authorized to do so. It raised $50 million from Intel late last year but still faced financial pressure, they said.

As the start-up grew, its sales strategy shifted, these people said. At the same time, it was spending millions a month on computing costs. Some investors pressured Mr. Mostaque to resign, according to an investor, who declined to speak publicly about a personnel issue. This month, after his resignation, Stability AI did layoffs and restructured its business to put the company on “a more sustainable path,” according to a company memo reviewed by The New York Times.

Stability AI declined to comment. Mr. Mostaque declined to discuss his exit.

Inflection AI, a chatbot start-up founded by three A.I. veterans, had raised $1.5 billion from some of the biggest names in tech. But a year after introducing its A.I. personal assistant, it had almost no revenue, according to one investor. The Times reviewed a letter that Inflection had sent to investors saying additional fund-raising was “not the best use of our investors’ money, especially in the context of the current frothy A.I. market.”

In late March, it folded its original business and largely disappeared into Microsoft, the world’s most valuable public company.

Microsoft also helped fund Inflection AI, whose chief executive, Mustafa Suleyman, rose to prominence as one of the founders of DeepMind, a seminal artificial intelligence lab that Google acquired in 2014. Mr. Suleyman founded Inflection AI alongside Karén Simonyan, a key DeepMind researcher, and Reid Hoffman, a leading Silicon Valley venture capitalist who helped found OpenAI and is on Microsoft’s board.

Microsoft and Inflection AI declined to comment.

The company was steeped in talented A.I. researchers who had worked at places like Google and OpenAI.

But almost a year after releasing its A.I. personal assistant, Inflection AI’s revenue was, in the words of one investor, “de minimis.” Essentially zilch. It could not continue to improve its technologies and keep pace with chatbots from the likes of Google and OpenAI unless it continued to raise huge sums of money.

Now Microsoft is swallowing most of its staff, including Mr. Suleyman and Dr. Simonyan.

This is costing Microsoft more than $650 million. But unlike Inflection AI, it can afford to play the long game. It has announced plans for the staff to build an A.I. lab in London, working with the kind of systems the start-ups are hoping will break through.

Erin Griffith contributed reporting.

Cade Metz writes about artificial intelligence, driverless cars, robotics, virtual reality and other emerging areas of technology. More about Cade Metz

Karen Weise writes about technology and is based in Seattle. Her coverage focuses on Amazon and Microsoft, two of the most powerful companies in America. More about Karen Weise

Tripp Mickle reports on Apple and Silicon Valley for The Times and is based in San Francisco. His focus on Apple includes product launches, manufacturing issues and political challenges. He also writes about trends across the tech industry, including layoffs, generative A.I. and robot taxis. More about Tripp Mickle

Explore Our Coverage of Artificial Intelligence

News  and Analysis

The spending that the tech industry’s giants expect A.I. to require, for the chips and data centers , is starting to come into focus — and it is jarringly large.

The table stakes for A.I. start-ups to compete with the likes of Microsoft and Google are in the billions of dollars. And even that may not be enough .

Demis Hassabis and Mustafa Suleyman, who both grew up in London, feared a corporate rush to build A.I. Now they’re driving that competition at Google and Microsoft .

The Age of A.I.

A new category of apps promises to relieve parents of drudgery, with an assist from A.I . But a family’s grunt work is more human, and valuable, than it seems.

Despite Mark Zuckerberg’s hope for Meta’s A.I. assistant to be the smartest , it struggles with facts, numbers and web search.

Much as ChatGPT generates poetry, a new A.I. system devises blueprints for microscopic mechanisms  that can edit your DNA.

Could A.I. change India’s elections? Avatars are addressing voters by name, in whichever of India’s many languages they speak. Experts see potential for misuse  in a country already rife with disinformation.

Which A.I. system writes the best computer code or generates the most realistic image? Right now, there’s no easy way to answer those questions, our technology columnist writes .

CEOs build new business models to solve the plastic pollution problem 

Good morning,

As a kid, I loved listening to my dad extol the virtues of the polyvinyl flooring business he ran: the softness, durability, water resistance, insulation properties, and price. Its odor sometimes made me dizzy as I’d run through his warehouse, but, compared with wood or ceramic tiles, plastics seemed like a cool product. The cheap versatile material is so attractive, former Unilever CEO Paul Polman has noted, that plastics now weigh twice as much as all animals on earth . So a lot of eyes are now on Ottawa, as policymakers from around the world wrap up the latest round of talks to create the first global treaty to reduce plastic pollution.

Nobody is more aware of the challenges of dealing with plastics than those who have built a business around it. Dow CEO Jim Fitterling, a founding member of the Alliance to End Plastic Waste , recently told me about how his company is focused on creating a circular economy. The key is getting brands to integrate recycled materials into their products by offering comparable quality and an attractive price point.

Materials company Eastman operates what’s been called the world’s largest chemical recycling plant , with more facilities due to come on line. CEO Mark Costa argues that the complexity of the plastic waste challenge requires collaboration on all fronts. “If we want any chance of scaling up solutions to this significant challenge,” he says, “we need policy that incentivizes investment in both mechanical and chemical recycling that meet key environmental principles.”

Surendra Patawari, a pioneer in the global recycling industry who founded Gemini Corp. , collects plastic waste from more than 300 locations worldwide every month. He’s concerned that regulatory challenges are making it harder to recycle plastics. There’s often not enough plastic “feedstock” for recycling facilities which, in turn, reduces investments in recycling. People want to recycle plastics but often not in their backyard. Encina Corp. recently canceled plans for a plant in Pennsylvania because of pushback over potential pollution from that process.

There will be another round of discussions before any UN treaty is signed, but it’s worth noting that businesses have come together through groups like the U.S. Plastics Pact to deal with the problem. “All eyes are on Ottawa and everybody’s fighting for their own interest, maybe rightfully so,” says Patawari. While reducing plastics is a priority, he argues, “if we don’t deal with the cost of the waste we have created, we are doomed.”

Meanwhile, as Alan Murray winds down his tenure as CEO of Fortune , here is a comment from IBM CEO Arvind Krishna on what the brand has meant to him.

“I have always been an avid reader of Fortune , a publication that not only chronicles but shapes the narrative of modern business. Its great reporting and analysis make it an influential and indispensable guide to the forces impacting companies, markets, and the world.”

More news below.

Diane Brady @dianebrady [email protected]

HSBC CEO steps down

HSBC CEO Noel Quinn announced that he will step down almost five years into his tenure leading Europe’s largest bank. Quinn pivoted HSBC towards Asia, cutting back on the bank’s presence in the U.S., France, and other developed markets. HSBC reported $12.6 billion in pretax profit for the quarter, a 1.8% year-on-year drop. Bloomberg

TikTok owner ByteDance retained control over some employee systems, like messaging and tech management software, says a former security compliance employee. That could have given the Chinese firm access to U.S. user data, which employees routinely shared on internal systems. TikTok called the allegations "inaccurate" and " driven by anonymous sources with a preconceived agenda.” Fortune

Paramount’s new three-person CEO

Paramount will now be run by a three-person “Office of the CEO” after CEO Bob Bakish stepped down on Monday. Shari Redstone, Paramount’s controlling shareholder, believes that Bakish was not aggressive enough in pursuing deals for the media company. Paramount, currently in merger discussions with SkyDance Media, reported a $554 million quarterly net loss on Monday on an earnings call that lasted under 10 minutes. The New York Times

AROUND THE WATERCOOLER

Elon Musk publicly dumped California for Texas—now Golden State customers are getting revenge, dumping Tesla in droves by Amanda Gerut

EU’s unwinnable price war with Chinese EVs summed up: BYD cars are 11-fold more profitable in Europe vs. China by Ryan Hogg

Why SBF is turning against A-list FTX boosters like Tom Brady and Larry David—and what could happen to them by Niamh Rowe

Ryanair’s Michael O’Leary, who is up for a $108 million bonus, doesn’t see high CEO pay as a problem: ‘Footballers are getting half a million a week’ by Prarthana Prakash

MedMen’s spectacular collapse is complete: Just six years after earning a whopping $3 billion valuation, the onetime legal cannabis darling has declared bankruptcy by Dylan Sloan

T his edition of CEO Daily was curated by Nicholas Gordon. 

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Chattanooga Chamber winner cites health care access problem in small business success

April 30, 2024 at 5:34 p.m.

by Mike Pare

Chattanooga physician Dr. Chris LeSar said Tuesday he started the first of his now five offices in the region with a vision to solve a problem people had accessing health care.

"One of the things that helped us move along so well is a reason to do something, to change something, to fix a particular problem. That problem was getting people into care properly," said the founder of Vascular Institute of Chattanooga.

LeSar's institute, started eight years ago, was named Tuesday as one of the Chattanooga Area Chamber of Commerce's small businesses of the year.

Other award winners were CPRWrap and Johnson Audiology. Nonprofit of the year was Northside Neighborhood House.

The winners were recognized for growth and overall performance, according to the chamber.

LeSar told a group of several hundred at an awards ceremony that the institute has grown to 115 employees.

He said in an interview he expects the institute to double in the future.

"I see we're probably going to double in size and care for the people in this region," LeSar said.

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In addition to his Shallowford Road clinic in Chattanooga, the institute has offices in Tennessee in Cleveland, Dayton and Jasper, he said. The institute also serves the Fort Oglethorpe area in North Georgia, LeSar said.

(READ MORE: Institute adds Dayton office)

At the chamber event, he raised the specter of someone typically taking three weeks or longer to see a doctor if a person doesn't have special medical or surgical care.

"We put together a team that drove that down to three days," LeSar said. "The reason is if you have a vascular problem, a mini-stroke problem, a problem with your leg, you need to be cared for right now."

He said he and his wife are both from Ohio, and they moved here about 20 years ago and set up his practice in Chattanooga. But it was recognizing the problem people were experiencing in terms of having health care delivered to them that led to the start-up of the institute, LeSar said.

"It was just getting people in," he said.

Over time, as the number of institute patients increased, LeSar said the team expanded.

"I don't have enough hours in the day to operate on everybody and take care of everybody and do all these things," he said. "As the numbers increased, we've expanded our bench."

The growth in the team enabled the institute to broaden its reach and open new offices, LeSar said.

"That way people from this area can get into our system," he said.

(READ MORE: Institute adds Cleveland office)

More than 150 businesses were nominated for consideration of the annual awards, according to the chamber.

"We had great companies who were nominated for this," Charles Wood, the chamber's chief executive, said of the 11 finalists. "We have incredible companies in the room who were finalists."

Contact Mike Pare at [email protected] or 423-757-6318 .

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