problem solving and decision making skills examples

26 Expert-Backed Problem Solving Examples – Interview Answers

Published: February 13, 2023

Interview Questions and Answers

Actionable advice from real experts:

Biron Clark

Former Recruiter

Contributor

Dr. Kyle Elliott

Career Coach

Hayley Jukes

Editor-in-Chief

Biron Clark , Former Recruiter

Kyle Elliott , Career Coach

Hayley Jukes , Editor

As a recruiter , I know employers like to hire people who can solve problems and work well under pressure.

 A job rarely goes 100% according to plan, so hiring managers are more likely to hire you if you seem like you can handle unexpected challenges while staying calm and logical.

But how do they measure this?

Hiring managers will ask you interview questions about your problem-solving skills, and they might also look for examples of problem-solving on your resume and cover letter. 

In this article, I’m going to share a list of problem-solving examples and sample interview answers to questions like, “Give an example of a time you used logic to solve a problem?” and “Describe a time when you had to solve a problem without managerial input. How did you handle it, and what was the result?”

• Problem-solving involves identifying, prioritizing, analyzing, and solving problems using a variety of skills like critical thinking, creativity, decision making, and communication.
• Describe the Situation, Task, Action, and Result ( STAR method ) when discussing your problem-solving experiences.
• Tailor your interview answer with the specific skills and qualifications outlined in the job description.
• Provide numerical data or metrics to demonstrate the tangible impact of your problem-solving efforts.

What are Problem Solving Skills? 

Problem-solving is the ability to identify a problem, prioritize based on gravity and urgency, analyze the root cause, gather relevant information, develop and evaluate viable solutions, decide on the most effective and logical solution, and plan and execute implementation. 

Problem-solving encompasses other skills that can be showcased in an interview response and your resume. Problem-solving skills examples include:

• Critical thinking
• Analytical skills
• Decision making
• Research skills
• Technical skills
• Communication skills
• Adaptability and flexibility

Why is Problem Solving Important in the Workplace?

Problem-solving is essential in the workplace because it directly impacts productivity and efficiency. Whenever you encounter a problem, tackling it head-on prevents minor issues from escalating into bigger ones that could disrupt the entire workflow. 

Beyond maintaining smooth operations, your ability to solve problems fosters innovation. It encourages you to think creatively, finding better ways to achieve goals, which keeps the business competitive and pushes the boundaries of what you can achieve. 

Effective problem-solving also contributes to a healthier work environment; it reduces stress by providing clear strategies for overcoming obstacles and builds confidence within teams. 

Examples of Problem-Solving in the Workplace

• Correcting a mistake at work, whether it was made by you or someone else
• Overcoming a delay at work through problem solving and communication
• Resolving an issue with a difficult or upset customer
• Overcoming issues related to a limited budget, and still delivering good work through the use of creative problem solving
• Overcoming a scheduling/staffing shortage in the department to still deliver excellent work
• Troubleshooting and resolving technical issues
• Handling and resolving a conflict with a coworker
• Solving any problems related to money, customer billing, accounting and bookkeeping, etc.
• Taking initiative when another team member overlooked or missed something important
• Taking initiative to meet with your superior to discuss a problem before it became potentially worse
• Solving a safety issue at work or reporting the issue to those who could solve it
• Using problem solving abilities to reduce/eliminate a company expense
• Finding a way to make the company more profitable through new service or product offerings, new pricing ideas, promotion and sale ideas, etc.
• Changing how a process, team, or task is organized to make it more efficient
• Using creative thinking to come up with a solution that the company hasn’t used before
• Performing research to collect data and information to find a new solution to a problem
• Boosting a company or team’s performance by improving some aspect of communication among employees
• Finding a new piece of data that can guide a company’s decisions or strategy better in a certain area

Problem-Solving Examples for Recent Grads/Entry-Level Job Seekers

• Coordinating work between team members in a class project
• Reassigning a missing team member’s work to other group members in a class project
• Adjusting your workflow on a project to accommodate a tight deadline
• Speaking to your professor to get help when you were struggling or unsure about a project
• Asking classmates, peers, or professors for help in an area of struggle
• Talking to your academic advisor to brainstorm solutions to a problem you were facing
• Researching solutions to an academic problem online, via Google or other methods
• Using problem solving and creative thinking to obtain an internship or other work opportunity during school after struggling at first

How To Answer “Tell Us About a Problem You Solved”

When you answer interview questions about problem-solving scenarios, or if you decide to demonstrate your problem-solving skills in a cover letter (which is a good idea any time the job description mentions problem-solving as a necessary skill), I recommend using the STAR method.

STAR stands for:

It’s a simple way of walking the listener or reader through the story in a way that will make sense to them. 

Start by briefly describing the general situation and the task at hand. After this, describe the course of action you chose and why. Ideally, show that you evaluated all the information you could given the time you had, and made a decision based on logic and fact. Finally, describe the positive result you achieved.

Note: Our sample answers below are structured following the STAR formula. Be sure to check them out!

EXPERT ADVICE

Dr. Kyle Elliott , MPA, CHES Tech & Interview Career Coach caffeinatedkyle.com

How can I communicate complex problem-solving experiences clearly and succinctly?

Before answering any interview question, it’s important to understand why the interviewer is asking the question in the first place.

When it comes to questions about your complex problem-solving experiences, for example, the interviewer likely wants to know about your leadership acumen, collaboration abilities, and communication skills, not the problem itself.

Therefore, your answer should be focused on highlighting how you excelled in each of these areas, not diving into the weeds of the problem itself, which is a common mistake less-experienced interviewees often make.

Tailoring Your Answer Based on the Skills Mentioned in the Job Description

As a recruiter, one of the top tips I can give you when responding to the prompt “Tell us about a problem you solved,” is to tailor your answer to the specific skills and qualifications outlined in the job description. 

Once you’ve pinpointed the skills and key competencies the employer is seeking, craft your response to highlight experiences where you successfully utilized or developed those particular abilities. 

For instance, if the job requires strong leadership skills, focus on a problem-solving scenario where you took charge and effectively guided a team toward resolution. 

By aligning your answer with the desired skills outlined in the job description, you demonstrate your suitability for the role and show the employer that you understand their needs.

Amanda Augustine expands on this by saying:

“Showcase the specific skills you used to solve the problem. Did it require critical thinking, analytical abilities, or strong collaboration? Highlight the relevant skills the employer is seeking.”  

Interview Answers to “Tell Me About a Time You Solved a Problem”

Now, let’s look at some sample interview answers to, “Give me an example of a time you used logic to solve a problem,” or “Tell me about a time you solved a problem,” since you’re likely to hear different versions of this interview question in all sorts of industries.

The example interview responses are structured using the STAR method and are categorized into the top 5 key problem-solving skills recruiters look for in a candidate.

1. Analytical Thinking

Situation: In my previous role as a data analyst , our team encountered a significant drop in website traffic.

Task: I was tasked with identifying the root cause of the decrease.

Action: I conducted a thorough analysis of website metrics, including traffic sources, user demographics, and page performance. Through my analysis, I discovered a technical issue with our website’s loading speed, causing users to bounce. 

Result: By optimizing server response time, compressing images, and minimizing redirects, we saw a 20% increase in traffic within two weeks.

2. Critical Thinking

Situation: During a project deadline crunch, our team encountered a major technical issue that threatened to derail our progress.

Task: My task was to assess the situation and devise a solution quickly.

Action: I immediately convened a meeting with the team to brainstorm potential solutions. Instead of panicking, I encouraged everyone to think outside the box and consider unconventional approaches. We analyzed the problem from different angles and weighed the pros and cons of each solution.

Result: By devising a workaround solution, we were able to meet the project deadline, avoiding potential delays that could have cost the company $100,000 in penalties for missing contractual obligations.

3. Decision Making

Situation: As a project manager , I was faced with a dilemma when two key team members had conflicting opinions on the project direction.

Task: My task was to make a decisive choice that would align with the project goals and maintain team cohesion.

Action: I scheduled a meeting with both team members to understand their perspectives in detail. I listened actively, asked probing questions, and encouraged open dialogue. After carefully weighing the pros and cons of each approach, I made a decision that incorporated elements from both viewpoints.

Result: The decision I made not only resolved the immediate conflict but also led to a stronger sense of collaboration within the team. By valuing input from all team members and making a well-informed decision, we were able to achieve our project objectives efficiently.

4. Communication (Teamwork)

Situation: During a cross-functional project, miscommunication between departments was causing delays and misunderstandings.

Task: My task was to improve communication channels and foster better teamwork among team members.

Action: I initiated regular cross-departmental meetings to ensure that everyone was on the same page regarding project goals and timelines. I also implemented a centralized communication platform where team members could share updates, ask questions, and collaborate more effectively.

Result: Streamlining workflows and improving communication channels led to a 30% reduction in project completion time, saving the company $25,000 in operational costs.

5. Persistence 

Situation: During a challenging sales quarter, I encountered numerous rejections and setbacks while trying to close a major client deal.

Task: My task was to persistently pursue the client and overcome obstacles to secure the deal.

Action: I maintained regular communication with the client, addressing their concerns and demonstrating the value proposition of our product. Despite facing multiple rejections, I remained persistent and resilient, adjusting my approach based on feedback and market dynamics.

Result: After months of perseverance, I successfully closed the deal with the client. By closing the major client deal, I exceeded quarterly sales targets by 25%, resulting in a revenue increase of $250,000 for the company.

Tips to Improve Your Problem-Solving Skills

Throughout your career, being able to showcase and effectively communicate your problem-solving skills gives you more leverage in achieving better jobs and earning more money .

So to improve your problem-solving skills, I recommend always analyzing a problem and situation before acting.

 When discussing problem-solving with employers, you never want to sound like you rush or make impulsive decisions. They want to see fact-based or data-based decisions when you solve problems.

Don’t just say you’re good at solving problems. Show it with specifics. How much did you boost efficiency? Did you save the company money? Adding numbers can really make your achievements stand out.

To get better at solving problems, analyze the outcomes of past solutions you came up with. You can recognize what works and what doesn’t.

Think about how you can improve researching and analyzing a situation, how you can get better at communicating, and deciding on the right people in the organization to talk to and “pull in” to help you if needed, etc.

Finally, practice staying calm even in stressful situations. Take a few minutes to walk outside if needed. Step away from your phone and computer to clear your head. A work problem is rarely so urgent that you cannot take five minutes to think (with the possible exception of safety problems), and you’ll get better outcomes if you solve problems by acting logically instead of rushing to react in a panic.

You can use all of the ideas above to describe your problem-solving skills when asked interview questions about the topic. If you say that you do the things above, employers will be impressed when they assess your problem-solving ability.

More Interview Resources

• 3 Answers to “How Do You Handle Stress?”
• How to Answer “How Do You Handle Conflict?” (Interview Question)
• Sample Answers to “Tell Me About a Time You Failed”

About the Author

Biron Clark is a former executive recruiter who has worked individually with hundreds of job seekers, reviewed thousands of resumes and LinkedIn profiles, and recruited for top venture-backed startups and Fortune 500 companies. He has been advising job seekers since 2012 to think differently in their job search and land high-paying, competitive positions. Follow on Twitter and LinkedIn .

Read more articles by Biron Clark

About the Contributor

Kyle Elliott , career coach and mental health advocate, transforms his side hustle into a notable practice, aiding Silicon Valley professionals in maximizing potential. Follow Kyle on LinkedIn .

About the Editor

Hayley Jukes is the Editor-in-Chief at CareerSidekick with five years of experience creating engaging articles, books, and transcripts for diverse platforms and audiences.

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The SkillsYouNeed Guide to Interpersonal Skills

Making decisions and solving problems are two key areas in life, whether you are at home or at work. Whatever you’re doing, and wherever you are, you are faced with countless decisions and problems, both small and large, every day.

Many decisions and problems are so small that we may not even notice them. Even small decisions, however, can be overwhelming to some people. They may come to a halt as they consider their dilemma and try to decide what to do.

Small and Large Decisions

In your day-to-day life you're likely to encounter numerous 'small decisions', including, for example:

Tea or coffee?

What shall I have in my sandwich? Or should I have a salad instead today?

What shall I wear today?

Larger decisions may occur less frequently but may include:

Should we repaint the kitchen? If so, what colour?

Should we relocate?

Should I propose to my partner? Do I really want to spend the rest of my life with him/her?

These decisions, and others like them, may take considerable time and effort to make.

The relationship between decision-making and problem-solving is complex. Decision-making is perhaps best thought of as a key part of problem-solving: one part of the overall process.

Our approach at Skills You Need is to set out a framework to help guide you through the decision-making process. You won’t always need to use the whole framework, or even use it at all, but you may find it useful if you are a bit ‘stuck’ and need something to help you make a difficult decision.

Decision Making

Effective Decision-Making

This page provides information about ways of making a decision, including basing it on logic or emotion (‘gut feeling’). It also explains what can stop you making an effective decision, including too much or too little information, and not really caring about the outcome.

A Decision-Making Framework

This page sets out one possible framework for decision-making.

The framework described is quite extensive, and may seem quite formal. But it is also a helpful process to run through in a briefer form, for smaller problems, as it will help you to make sure that you really do have all the information that you need.

Problem Solving

Introduction to Problem-Solving

This page provides a general introduction to the idea of problem-solving. It explores the idea of goals (things that you want to achieve) and barriers (things that may prevent you from achieving your goals), and explains the problem-solving process at a broad level.

The first stage in solving any problem is to identify it, and then break it down into its component parts. Even the biggest, most intractable-seeming problems, can become much more manageable if they are broken down into smaller parts. This page provides some advice about techniques you can use to do so.

Sometimes, the possible options to address your problem are obvious. At other times, you may need to involve others, or think more laterally to find alternatives. This page explains some principles, and some tools and techniques to help you do so.

Having generated solutions, you need to decide which one to take, which is where decision-making meets problem-solving. But once decided, there is another step: to deliver on your decision, and then see if your chosen solution works. This page helps you through this process.

‘Social’ problems are those that we encounter in everyday life, including money trouble, problems with other people, health problems and crime. These problems, like any others, are best solved using a framework to identify the problem, work out the options for addressing it, and then deciding which option to use.

This page provides more information about the key skills needed for practical problem-solving in real life.

Further Reading from Skills You Need

The Skills You Need Guide to Interpersonal Skills eBooks.

Develop your interpersonal skills with our series of eBooks. Learn about and improve your communication skills, tackle conflict resolution, mediate in difficult situations, and develop your emotional intelligence.

Guiding you through the key skills needed in life

As always at Skills You Need, our approach to these key skills is to provide practical ways to manage the process, and to develop your skills.

Neither problem-solving nor decision-making is an intrinsically difficult process and we hope you will find our pages useful in developing your skills.

Start with: Decision Making Problem Solving

See also: Improving Communication Interpersonal Communication Skills Building Confidence

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The Most Important Decision-Making Skills (With Examples)

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Good decision-making skills are sought by almost all companies. Whether you’re applying for an entry-level position or an executive role, you should highlight your decision-making skills throughout the application process.

In this article, we will go over what decision-making skills are, how to improve your skills in this area, and how to highlight your ability to make good decisions.

Key Takeaways:

You make decisions every day for various functions, from personal to professional, and consistently making good decisions can only help your career.

There are three main ways to approach decision-making: using intuition, reasoning, or a combination of both.

When making a decision you should identify the problem, do some research, and evaluate your options before you make a decision.

What are decision-making skills?

The most important decision-making skills, more decision-making skills, the decision-making process, how to improve your decision-making skills, how to highlight your decision-making skills while job hunting, decisiveness skills faqs.

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Decision-making skills are about your ability to choose a good option out of two or more alternatives. It takes a host of skills to be able to quickly and compassionately make wise choices that are good for both the present and the future.

There are three main categories of decision-making skills that correspond to three different ways to make decisions: using intuition, reasoning, or a combination of both.

Intuition is your default response, or the gut feeling you get when presented with a problem or decision to make. This first reaction comes from a combination of things you’ve learned, experiences you’ve had, and opinions you hold, so everyone’s intuition is different.

Using intuition means basing your decision on your lived experiences, so it can be subjective. Skills like creativity and emotional intelligence fall into this category.

Reasoning , on the other hand, is rooted in data. You reason when you use the data available to you and only base a decision on facts and figures instead of your instinctive reaction. This is a more objective way to come to a decision and it’s usually how bigger decisions are made.

Problem-solving and logical thinking are examples of decision-making skills in this category.

Both. Most often, decisions are made with some combination of both intuition and reasoning. Using both is a good way to check and make sure your choice is logical while also paying attention to the human element of it.

Since we make decisions all the time, we usually don’t stop to think about whether we should make an intuition-based or reason-based decision. Instead, we naturally use a combination of the two.

Many skills go into making effective decisions, from problem-solving to emotional intelligence. Here are some of the most important ones:

Problem-solving. The number one skill you need to be an effective decision-maker is problem-solving. Since decisions are just a type of problem (determining which option is the best), having strong problem-solving skills is definitely an asset.

If you approach a decision from a logical mindset as if it were a problem to solve, odds are that the solutions you come up with and your final decision will be stronger.

Choosing a reliable manufacturer to supply the product you sell. Comparing candidates to the job requirements. Reassigning tasks when an employee unexpectedly resigns.

Collaboration. Decisions can’t always be made by one person. You need to have good collaboration and compromise skills to make the best decision sometimes when it involves a group.

Even when you’re making a decision on your own, getting extra input from friends or coworkers can help you brainstorm the best outcome. Collaboration is your friend, both when you need to make a group decision and when you’re the one responsible for making the decision.

Brainstorming potential names for a new product. Asking staff about the impact of extended hours. Listening to employee needs and preferences for a new office space.

Emotional intelligence. Emotional intelligence , or EQ, is the ability to observe and understand your own emotions and the emotions of the people around you. Being able to take emotions into account will make you a stronger decision-maker.

Think of this as related to intuitive decision-making. You need to balance facts, figures, and emotions to come to a good decision.

Proposing the best way to boost sales. Evaluating the impact of cutting spending. Choosing an interim manager from an internal pool.

Logical reasoning. This skill is key for the middle steps of the decision-making process. Being able to fully evaluate and analyze your information, options, and decisions will make your decisions stronger.

This skill is more closely related to reasoning, the side of decision-making that relies on facts and figures instead of on emotions.

Deciding how bonuses will be given for the year. Choosing which employee or employees to lay off. Creating an employee schedule based on time off requests and coverage needs.

Creativity. The more creative you are in your problem-solving, the better options and potential outcomes you’ll have to work with, as well as having creative ways to implement your decision.

The most straightforward option isn’t always the best one, and sometimes you need to think outside the box to find a solution that meets everyone’s needs.

Arranging a small office space so that everyone can fit comfortably and be productive. Finding ways to lower costs without sacrificing performance. Developing a new record-keeping system that meets your team’s needs.

Organization . Being organized can help you keep all of your background information, options, and other tools in order.

This allows you to stay clear-headed in your decision-making, reducing the risk that you’ll overlook a key piece of information. It can also help you feel less overwhelmed by the decision, which also results in better choices.

Creating a centralized calendar where employees can update their schedule preferences. Organizing data that will help you decide whether or not to continue a project. Collecting employee feedback in survey form to make it simpler to see what the majority wants.

There are many more skills that will help you sharpen your ability to make good decisions. Take a look at this list and see what you’re already good at and where you could improve.

Time management. Making decisions in a timely manner isn’t just about making a quick, hasty decision. Managing your time to properly work through the seven steps is a skill that will put you above everyone else.

Leadership . When collaborating and making a group decision, someone needs to take charge and make sure the decision is implemented, which is when good leadership skills are needed.

Ethics. Making ethical decisions is a necessary skill to have, so knowing how to weigh the ethical pros and cons is key.

Research . The better research you can gather in the first steps of the decision-making process, the better prepared you’ll be to make a good decision.

Analysis . Having strong analytical skills will help you ensure that your decisions are logical and reasonable.

Flexibility. Quick-thinking and flexibility are your friends when it comes to making decisions since sometimes you’ll have to compromise or new constraints will pop up, changing how you approach a decision.

Effective decision-makers use a seven-step process to tackle decisions. While it isn’t necessary to go through these exact steps when you make a basic decision, like what to cook for dinner, it can be a great way to check your thinking as you make a big work decision, like which strategy will lead to better sales.

Identify the problem. First, you need to see the decision that you need to make and understand what will go into making that decision. This step is crucial since everything else builds upon what you do here.

Make sure you properly understand the situation, what’s being asked of you, and what tools you have available to you before moving to the next step.

Do some digging. For any decision you’ll need some background information to help you choose the right option. Sometimes this means just thinking back to details from meetings, or it can be doing more sophisticated research. You can use step one to help you identify what information you’ll need to make a good decision.

Think creatively. In this step you want to think of as many solutions as possible. It doesn’t matter if they’re good or bad, you just want to consider all of your options.

Feel free to be as creative in your thinking as you want with this step. There are no bad options here since you want to think of every possible outcome. You’ll have a chance to check all of your brainstormed options later.

Evaluate your options. Here’s the part where you’ll give all your potential outcomes a second check. Go through the list of solutions you came up with in step three and test which ones feel better or sound more logical to you.

Don’t forget to keep your end goal in mind when you consider all the choices. That way you’re sure to make a good decision.

Make the decision . It’s time to pick one of the options you came up with. Keep in mind that you can choose a solution you came up with or even combine solutions to make the best decision possible. Reflect on your process for step four and pick the decision you feel best about.

Act on your decision. Once you’ve decided what to do, you need to start taking the actions that will help you implement the decision. These can be big or small steps, but stay focused and resolved to get the job done.

Don’t be afraid to bring other people into your process in this step. Especially for large workplace decisions, you might want to call on your coworkers to help you get things done.

Look back. When your decision is made and you’ve had some time to see its effects, take a second to evaluate that decision. Think about whether the decision had the outcome you wanted it to, or if it wasn’t so successful.

Taking this time to reflect on your decision-making is a great way to not only improve your ability to make a good decision but also to learn more about yourself. You can even ask other people for their opinion on the effects of a decision to see how your perception of the impact lines up with others’ opinions.

To improve your decision-making skills, practice goal-setting, reducing your number of choices, and conducting good research. You should also work on your communication skills and give yourself a limit on how long you have to make a decisions.

Set good goals . Having your eye on the big picture is enormously helpful when it comes to decision-making. Someone can make all the right decisions, but if their ultimate goal is wrongheaded, then those great decisions don’t add up to anything useful.

Reduce choice. Americans love options, but being inundated with too many potential choices can paralyze you. Before you begin making decisions, try to narrow down your possible choices to the top three.

Research. Decision-making isn’t easy when you don’t have all the facts in front of you. Good decisions are predicated on good data, so start working to improve your research skills. The greater your knowledge and expertise, the simpler most decisions become.

Communicate early and often. Communication skills complement decision-making skills well. Whether you’re seeking out advice or expressing a project’s goal, thorough communication helps you make decisions more effectively.

Don’t analyze forever. The phrase “paralysis by analysis” is all too true. Don’t be afraid to make small decisions without 100% of the information you might need. A few minor failures can actually help generate better ideas. Start with the minimum viable solution, and iterate from there.

To highlight your decision-making skills in your job search , look for decision-making skills and terms in the job description, and incorporate any that apply to you into your resume and cover letter. You should also highlight them in your interview answers.

Check the job description. Read the job description carefully and look for words that indicate decision-making like:

Incorporate the decision-making skills from the job description into your resume. Look for ways to incorporate the same language from the job description into your resume .

Let’s take a look at an example resume’s work experience section showcasing decision-making skills:

Saved product team over $50k annually in materials costs by analyzing low ROI spends and rerouting funds to lucrative projects Reduced accounting labor hours by 21% by automating payroll systems and creating streamlined tracking spreadsheets Optimized virtual meeting schedule, netting an average of 3 hours of meetings saved weekly, while improving employee productivity by 6%

Expound on your decision-making skills in your cover letter. A cover letter should cover similar accomplishments where you leveraged your top-notch decision-making skills. However, you can go into more detail about one or two accomplishments, rather than briefly touching on them as you would in a resume .

Highlight your decision-making skills in your interview. For a job interview , it’s equally important to know what metrics your performance will be judged on. By showing that you’re already thinking of how to achieve the most important results, you’re painting yourself as a candidate with great decision-making abilities.

What are the key skills for decision-making?

Key skills for decision-making are problem-solving, logical reasoning, and emotional intelligence. These skills combine to help you navigate almost any decision. This is because you use your logic and EQ to consider your reasoning and intuition and come up with a balanced approach. Your problem-solving skills will also help you build confidence when you have to make a choice and stick with it.

How can I be a good decision maker?

To be good at making decisions, match your decision based on your goals and values. This ensures that your decision is one that you can stand by, regardless of the outcome. However, sometimes this is hard to figure out.

If you struggle to make decisions, make sure to manage your stress, consider all the outcomes, and weigh the pros and cons. Additionally, if you can, take some time to avoid making rash decisions. It also helps to talk to others or to write out your thoughts and feelings in the process.

What are the characteristics of a good decision?

A good decision comes with clear reasoning, judgment of values, and is realistically accomplished. As long as your decision does not bring harm to others, you can use these characteristics to determine whether or not your decision was a good one. Your decisions should, in one way or another, bring you closer to your goals, both big and small.

What is strategic decision-making?

Strategic decision-making is when you base short-term decisions on long-term goals. In a sense, your decisions are part of your “strategy” to achieve some end. Strategic decision-making is particularly useful for businesses when they need to align daily needs with long-term objectives.

How do you demonstrate strong decision-making skills?

Demonstrate strong decision-making skills by providing examples of times you’ve used good decision-making skills. You can do this in your resume, cover letter , or during your interview.

Consumer Protection Financial Bureau – Financial Knowledge and Decision-Making Skills

Harvard Business School – 5 Key Decision-Making Techniques For Managers

UMass Dartmouth – Decision-Making Process

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Amanda is a writer with experience in various industries, including travel, real estate, and career advice. After taking on internships and entry-level jobs, she is familiar with the job search process and landing that crucial first job. Included in her experience is work at an employer/intern matching startup where she marketed an intern database to employers and supported college interns looking for work experience.

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What is Problem Solving? (Steps, Techniques, Examples)

By Status.net Editorial Team on May 7, 2023 — 5 minutes to read

What Is Problem Solving?

Definition and importance.

Problem solving is the process of finding solutions to obstacles or challenges you encounter in your life or work. It is a crucial skill that allows you to tackle complex situations, adapt to changes, and overcome difficulties with ease. Mastering this ability will contribute to both your personal and professional growth, leading to more successful outcomes and better decision-making.

Problem-Solving Steps

The problem-solving process typically includes the following steps:

• Identify the issue : Recognize the problem that needs to be solved.
• Analyze the situation : Examine the issue in depth, gather all relevant information, and consider any limitations or constraints that may be present.
• Generate potential solutions : Brainstorm a list of possible solutions to the issue, without immediately judging or evaluating them.
• Evaluate options : Weigh the pros and cons of each potential solution, considering factors such as feasibility, effectiveness, and potential risks.
• Select the best solution : Choose the option that best addresses the problem and aligns with your objectives.
• Implement the solution : Put the selected solution into action and monitor the results to ensure it resolves the issue.
• Review and learn : Reflect on the problem-solving process, identify any improvements or adjustments that can be made, and apply these learnings to future situations.

Defining the Problem

To start tackling a problem, first, identify and understand it. Analyzing the issue thoroughly helps to clarify its scope and nature. Ask questions to gather information and consider the problem from various angles. Some strategies to define the problem include:

• Brainstorming with others
• Asking the 5 Ws and 1 H (Who, What, When, Where, Why, and How)
• Analyzing cause and effect
• Creating a problem statement

Generating Solutions

Once the problem is clearly understood, brainstorm possible solutions. Think creatively and keep an open mind, as well as considering lessons from past experiences. Consider:

• Creating a list of potential ideas to solve the problem
• Grouping and categorizing similar solutions
• Prioritizing potential solutions based on feasibility, cost, and resources required
• Involving others to share diverse opinions and inputs

Evaluating and Selecting Solutions

Evaluate each potential solution, weighing its pros and cons. To facilitate decision-making, use techniques such as:

• SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)
• Decision-making matrices
• Pros and cons lists
• Risk assessments

After evaluating, choose the most suitable solution based on effectiveness, cost, and time constraints.

Implementing and Monitoring the Solution

Implement the chosen solution and monitor its progress. Key actions include:

• Communicating the solution to relevant parties
• Setting timelines and milestones
• Assigning tasks and responsibilities
• Monitoring the solution and making adjustments as necessary
• Evaluating the effectiveness of the solution after implementation

Utilize feedback from stakeholders and consider potential improvements. Remember that problem-solving is an ongoing process that can always be refined and enhanced.

Problem-Solving Techniques

During each step, you may find it helpful to utilize various problem-solving techniques, such as:

• Brainstorming : A free-flowing, open-minded session where ideas are generated and listed without judgment, to encourage creativity and innovative thinking.
• Root cause analysis : A method that explores the underlying causes of a problem to find the most effective solution rather than addressing superficial symptoms.
• SWOT analysis : A tool used to evaluate the strengths, weaknesses, opportunities, and threats related to a problem or decision, providing a comprehensive view of the situation.
• Mind mapping : A visual technique that uses diagrams to organize and connect ideas, helping to identify patterns, relationships, and possible solutions.

Brainstorming

When facing a problem, start by conducting a brainstorming session. Gather your team and encourage an open discussion where everyone contributes ideas, no matter how outlandish they may seem. This helps you:

• Generate a diverse range of solutions
• Encourage all team members to participate
• Foster creative thinking

When brainstorming, remember to:

• Reserve judgment until the session is over
• Encourage wild ideas
• Combine and improve upon ideas

Root Cause Analysis

For effective problem-solving, identifying the root cause of the issue at hand is crucial. Try these methods:

• 5 Whys : Ask “why” five times to get to the underlying cause.
• Fishbone Diagram : Create a diagram representing the problem and break it down into categories of potential causes.
• Pareto Analysis : Determine the few most significant causes underlying the majority of problems.

SWOT Analysis

SWOT analysis helps you examine the Strengths, Weaknesses, Opportunities, and Threats related to your problem. To perform a SWOT analysis:

• List your problem’s strengths, such as relevant resources or strong partnerships.
• Identify its weaknesses, such as knowledge gaps or limited resources.
• Explore opportunities, like trends or new technologies, that could help solve the problem.
• Recognize potential threats, like competition or regulatory barriers.

SWOT analysis aids in understanding the internal and external factors affecting the problem, which can help guide your solution.

Mind Mapping

A mind map is a visual representation of your problem and potential solutions. It enables you to organize information in a structured and intuitive manner. To create a mind map:

• Write the problem in the center of a blank page.
• Draw branches from the central problem to related sub-problems or contributing factors.
• Add more branches to represent potential solutions or further ideas.

Mind mapping allows you to visually see connections between ideas and promotes creativity in problem-solving.

Examples of Problem Solving in Various Contexts

In the business world, you might encounter problems related to finances, operations, or communication. Applying problem-solving skills in these situations could look like:

• Identifying areas of improvement in your company’s financial performance and implementing cost-saving measures
• Resolving internal conflicts among team members by listening and understanding different perspectives, then proposing and negotiating solutions
• Streamlining a process for better productivity by removing redundancies, automating tasks, or re-allocating resources

In educational contexts, problem-solving can be seen in various aspects, such as:

• Addressing a gap in students’ understanding by employing diverse teaching methods to cater to different learning styles
• Developing a strategy for successful time management to balance academic responsibilities and extracurricular activities
• Seeking resources and support to provide equal opportunities for learners with special needs or disabilities

Everyday life is full of challenges that require problem-solving skills. Some examples include:

• Overcoming a personal obstacle, such as improving your fitness level, by establishing achievable goals, measuring progress, and adjusting your approach accordingly
• Navigating a new environment or city by researching your surroundings, asking for directions, or using technology like GPS to guide you
• Dealing with a sudden change, like a change in your work schedule, by assessing the situation, identifying potential impacts, and adapting your plans to accommodate the change.
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How to Make Great Decisions, Quickly

• Martin G. Moore

It’s a skill that will set you apart.

As a new leader, learning to make good decisions without hesitation and procrastination is a capability that can set you apart from your peers. While others vacillate on tricky choices, your team could be hitting deadlines and producing the type of results that deliver true value. That’s something that will get you — and them — noticed. Here are a few of a great decision:

• Great decisions are shaped by consideration of many different viewpoints. This doesn’t mean you should seek out everyone’s opinion. The right people with the relevant expertise need to clearly articulate their views to help you broaden your perspective and make the best choice.
• Great decisions are made as close as possible to the action. Remember that the most powerful people at your company are rarely on the ground doing the hands-on work. Seek input and guidance from team members who are closest to the action.
• Great decisions address the root cause, not just the symptoms. Although you may need to urgently address the symptoms, once this is done you should always develop a plan to fix the root cause, or else the problem is likely to repeat itself.
• Great decisions balance short-term and long-term value. Finding the right balance between short-term and long-term risks and considerations is key to unlocking true value.
• Great decisions are timely. If you consider all of the elements listed above, then it’s simply a matter of addressing each one with a heightened sense of urgency.

Where your work meets your life. See more from Ascend here .

Like many young leaders, early in my career, I thought a great decision was one that attracted widespread approval. When my colleagues smiled and nodded their collective heads, it reinforced (in my mind, at least) that I was an excellent decision maker.

• MM Martin G. Moore is the founder of Your CEO Mentor and author of No Bullsh!t Leadership and host of the No Bullsh!t Leadership podcast. His purpose is to improve the quality of leaders globally through practical, real world leadership content. For more information, please visit, www.martingmoore.com.

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How to improve your problem solving skills and build effective problem solving strategies

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Effective problem solving is all about using the right process and following a plan tailored to the issue at hand. Recognizing your team or organization has an issue isn’t enough to come up with effective problem solving strategies. 

To truly understand a problem and develop appropriate solutions, you will want to follow a solid process, follow the necessary problem solving steps, and bring all of your problem solving skills to the table.  

We’ll first guide you through the seven step problem solving process you and your team can use to effectively solve complex business challenges. We’ll also look at what problem solving strategies you can employ with your team when looking for a way to approach the process. We’ll then discuss the problem solving skills you need to be more effective at solving problems, complete with an activity from the SessionLab library you can use to develop that skill in your team.

Let’s get to it! 

What is a problem solving process?

• What are the problem solving steps I need to follow?

Problem solving strategies

What skills do i need to be an effective problem solver, how can i improve my problem solving skills.

Solving problems is like baking a cake. You can go straight into the kitchen without a recipe or the right ingredients and do your best, but the end result is unlikely to be very tasty!

Using a process to bake a cake allows you to use the best ingredients without waste, collect the right tools, account for allergies, decide whether it is a birthday or wedding cake, and then bake efficiently and on time. The result is a better cake that is fit for purpose, tastes better and has created less mess in the kitchen. Also, it should have chocolate sprinkles. Having a step by step process to solve organizational problems allows you to go through each stage methodically and ensure you are trying to solve the right problems and select the most appropriate, effective solutions.

What are the problem solving steps I need to follow? 

All problem solving processes go through a number of steps in order to move from identifying a problem to resolving it.

Depending on your problem solving model and who you ask, there can be anything between four and nine problem solving steps you should follow in order to find the right solution. Whatever framework you and your group use, there are some key items that should be addressed in order to have an effective process.

We’ve looked at problem solving processes from sources such as the American Society for Quality and their four step approach , and Mediate ‘s six step process. By reflecting on those and our own problem solving processes, we’ve come up with a sequence of seven problem solving steps we feel best covers everything you need in order to effectively solve problems.

1. Problem identification 

The first stage of any problem solving process is to identify the problem or problems you might want to solve. Effective problem solving strategies always begin by allowing a group scope to articulate what they believe the problem to be and then coming to some consensus over which problem they approach first. Problem solving activities used at this stage often have a focus on creating frank, open discussion so that potential problems can be brought to the surface.

2. Problem analysis 

Though this step is not a million miles from problem identification, problem analysis deserves to be considered separately. It can often be an overlooked part of the process and is instrumental when it comes to developing effective solutions.

The process of problem analysis means ensuring that the problem you are seeking to solve is the right problem . As part of this stage, you may look deeper and try to find the root cause of a specific problem at a team or organizational level.

Remember that problem solving strategies should not only be focused on putting out fires in the short term but developing long term solutions that deal with the root cause of organizational challenges. 

Whatever your approach, analyzing a problem is crucial in being able to select an appropriate solution and the problem solving skills deployed in this stage are beneficial for the rest of the process and ensuring the solutions you create are fit for purpose.

3. Solution generation

Once your group has nailed down the particulars of the problem you wish to solve, you want to encourage a free flow of ideas connecting to solving that problem. This can take the form of problem solving games that encourage creative thinking or problem solving activities designed to produce working prototypes of possible solutions. 

The key to ensuring the success of this stage of the problem solving process is to encourage quick, creative thinking and create an open space where all ideas are considered. The best solutions can come from unlikely places and by using problem solving techniques that celebrate invention, you might come up with solution gold. 

4. Solution development

No solution is likely to be perfect right out of the gate. It’s important to discuss and develop the solutions your group has come up with over the course of following the previous problem solving steps in order to arrive at the best possible solution. Problem solving games used in this stage involve lots of critical thinking, measuring potential effort and impact, and looking at possible solutions analytically. 

During this stage, you will often ask your team to iterate and improve upon your frontrunning solutions and develop them further. Remember that problem solving strategies always benefit from a multitude of voices and opinions, and not to let ego get involved when it comes to choosing which solutions to develop and take further.

Finding the best solution is the goal of all problem solving workshops and here is the place to ensure that your solution is well thought out, sufficiently robust and fit for purpose. 

5. Decision making 

Nearly there! Once your group has reached consensus and selected a solution that applies to the problem at hand you have some decisions to make. You will want to work on allocating ownership of the project, figure out who will do what, how the success of the solution will be measured and decide the next course of action.

The decision making stage is a part of the problem solving process that can get missed or taken as for granted. Fail to properly allocate roles and plan out how a solution will actually be implemented and it less likely to be successful in solving the problem.

Have clear accountabilities, actions, timeframes, and follow-ups. Make these decisions and set clear next-steps in the problem solving workshop so that everyone is aligned and you can move forward effectively as a group. 

Ensuring that you plan for the roll-out of a solution is one of the most important problem solving steps. Without adequate planning or oversight, it can prove impossible to measure success or iterate further if the problem was not solved. 

6. Solution implementation 

This is what we were waiting for! All problem solving strategies have the end goal of implementing a solution and solving a problem in mind. 

Remember that in order for any solution to be successful, you need to help your group through all of the previous problem solving steps thoughtfully. Only then can you ensure that you are solving the right problem but also that you have developed the correct solution and can then successfully implement and measure the impact of that solution.

Project management and communication skills are key here – your solution may need to adjust when out in the wild or you might discover new challenges along the way.

7. Solution evaluation 

So you and your team developed a great solution to a problem and have a gut feeling its been solved. Work done, right? Wrong. All problem solving strategies benefit from evaluation, consideration, and feedback. You might find that the solution does not work for everyone, might create new problems, or is potentially so successful that you will want to roll it out to larger teams or as part of other initiatives. 

None of that is possible without taking the time to evaluate the success of the solution you developed in your problem solving model and adjust if necessary.

Remember that the problem solving process is often iterative and it can be common to not solve complex issues on the first try. Even when this is the case, you and your team will have generated learning that will be important for future problem solving workshops or in other parts of the organization. 

It’s worth underlining how important record keeping is throughout the problem solving process. If a solution didn’t work, you need to have the data and records to see why that was the case. If you go back to the drawing board, notes from the previous workshop can help save time. Data and insight is invaluable at every stage of the problem solving process and this one is no different.

Problem solving workshops made easy

Problem solving strategies are methods of approaching and facilitating the process of problem-solving with a set of techniques , actions, and processes. Different strategies are more effective if you are trying to solve broad problems such as achieving higher growth versus more focused problems like, how do we improve our customer onboarding process?

Broadly, the problem solving steps outlined above should be included in any problem solving strategy though choosing where to focus your time and what approaches should be taken is where they begin to differ. You might find that some strategies ask for the problem identification to be done prior to the session or that everything happens in the course of a one day workshop.

The key similarity is that all good problem solving strategies are structured and designed. Four hours of open discussion is never going to be as productive as a four-hour workshop designed to lead a group through a problem solving process.

Good problem solving strategies are tailored to the team, organization and problem you will be attempting to solve. Here are some example problem solving strategies you can learn from or use to get started.

Use a workshop to lead a team through a group process

Often, the first step to solving problems or organizational challenges is bringing a group together effectively. Most teams have the tools, knowledge, and expertise necessary to solve their challenges – they just need some guidance in how to use leverage those skills and a structure and format that allows people to focus their energies.

Facilitated workshops are one of the most effective ways of solving problems of any scale. By designing and planning your workshop carefully, you can tailor the approach and scope to best fit the needs of your team and organization. 

Problem solving workshop

• Creating a bespoke, tailored process
• Tackling problems of any size
• Building in-house workshop ability and encouraging their use

Workshops are an effective strategy for solving problems. By using tried and test facilitation techniques and methods, you can design and deliver a workshop that is perfectly suited to the unique variables of your organization. You may only have the capacity for a half-day workshop and so need a problem solving process to match. 

By using our session planner tool and importing methods from our library of 700+ facilitation techniques, you can create the right problem solving workshop for your team. It might be that you want to encourage creative thinking or look at things from a new angle to unblock your groups approach to problem solving. By tailoring your workshop design to the purpose, you can help ensure great results.

One of the main benefits of a workshop is the structured approach to problem solving. Not only does this mean that the workshop itself will be successful, but many of the methods and techniques will help your team improve their working processes outside of the workshop. 

We believe that workshops are one of the best tools you can use to improve the way your team works together. Start with a problem solving workshop and then see what team building, culture or design workshops can do for your organization!

Run a design sprint

Great for: 

• aligning large, multi-discipline teams
• quickly designing and testing solutions
• tackling large, complex organizational challenges and breaking them down into smaller tasks

By using design thinking principles and methods, a design sprint is a great way of identifying, prioritizing and prototyping solutions to long term challenges that can help solve major organizational problems with quick action and measurable results.

Some familiarity with design thinking is useful, though not integral, and this strategy can really help a team align if there is some discussion around which problems should be approached first. 

The stage-based structure of the design sprint is also very useful for teams new to design thinking.  The inspiration phase, where you look to competitors that have solved your problem, and the rapid prototyping and testing phases are great for introducing new concepts that will benefit a team in all their future work. 

It can be common for teams to look inward for solutions and so looking to the market for solutions you can iterate on can be very productive. Instilling an agile prototyping and testing mindset can also be great when helping teams move forwards – generating and testing solutions quickly can help save time in the long run and is also pretty exciting!

Break problems down into smaller issues

Organizational challenges and problems are often complicated and large scale in nature. Sometimes, trying to resolve such an issue in one swoop is simply unachievable or overwhelming. Try breaking down such problems into smaller issues that you can work on step by step. You may not be able to solve the problem of churning customers off the bat, but you can work with your team to identify smaller effort but high impact elements and work on those first.

This problem solving strategy can help a team generate momentum, prioritize and get some easy wins. It’s also a great strategy to employ with teams who are just beginning to learn how to approach the problem solving process. If you want some insight into a way to employ this strategy, we recommend looking at our design sprint template below!

Use guiding frameworks or try new methodologies

Some problems are best solved by introducing a major shift in perspective or by using new methodologies that encourage your team to think differently.

Props and tools such as Methodkit , which uses a card-based toolkit for facilitation, or Lego Serious Play can be great ways to engage your team and find an inclusive, democratic problem solving strategy. Remember that play and creativity are great tools for achieving change and whatever the challenge, engaging your participants can be very effective where other strategies may have failed.

LEGO Serious Play

• Improving core problem solving skills
• Thinking outside of the box
• Encouraging creative solutions

LEGO Serious Play is a problem solving methodology designed to get participants thinking differently by using 3D models and kinesthetic learning styles. By physically building LEGO models based on questions and exercises, participants are encouraged to think outside of the box and create their own responses. 

Collaborate LEGO Serious Play exercises are also used to encourage communication and build problem solving skills in a group. By using this problem solving process, you can often help different kinds of learners and personality types contribute and unblock organizational problems with creative thinking. 

Problem solving strategies like LEGO Serious Play are super effective at helping a team solve more skills-based problems such as communication between teams or a lack of creative thinking. Some problems are not suited to LEGO Serious Play and require a different problem solving strategy.

Card Decks and Method Kits

• New facilitators or non-facilitators 
• Approaching difficult subjects with a simple, creative framework
• Engaging those with varied learning styles

Card decks and method kids are great tools for those new to facilitation or for whom facilitation is not the primary role. Card decks such as the emotional culture deck can be used for complete workshops and in many cases, can be used right out of the box. Methodkit has a variety of kits designed for scenarios ranging from personal development through to personas and global challenges so you can find the right deck for your particular needs.

Having an easy to use framework that encourages creativity or a new approach can take some of the friction or planning difficulties out of the workshop process and energize a team in any setting. Simplicity is the key with these methods. By ensuring everyone on your team can get involved and engage with the process as quickly as possible can really contribute to the success of your problem solving strategy.

Source external advice

Looking to peers, experts and external facilitators can be a great way of approaching the problem solving process. Your team may not have the necessary expertise, insights of experience to tackle some issues, or you might simply benefit from a fresh perspective. Some problems may require bringing together an entire team, and coaching managers or team members individually might be the right approach. Remember that not all problems are best resolved in the same manner.

If you’re a solo entrepreneur, peer groups, coaches and mentors can also be invaluable at not only solving specific business problems, but in providing a support network for resolving future challenges. One great approach is to join a Mastermind Group and link up with like-minded individuals and all grow together. Remember that however you approach the sourcing of external advice, do so thoughtfully, respectfully and honestly. Reciprocate where you can and prepare to be surprised by just how kind and helpful your peers can be!

Mastermind Group

• Solo entrepreneurs or small teams with low capacity
• Peer learning and gaining outside expertise
• Getting multiple external points of view quickly

Problem solving in large organizations with lots of skilled team members is one thing, but how about if you work for yourself or in a very small team without the capacity to get the most from a design sprint or LEGO Serious Play session? 

A mastermind group – sometimes known as a peer advisory board – is where a group of people come together to support one another in their own goals, challenges, and businesses. Each participant comes to the group with their own purpose and the other members of the group will help them create solutions, brainstorm ideas, and support one another. 

Mastermind groups are very effective in creating an energized, supportive atmosphere that can deliver meaningful results. Learning from peers from outside of your organization or industry can really help unlock new ways of thinking and drive growth. Access to the experience and skills of your peers can be invaluable in helping fill the gaps in your own ability, particularly in young companies.

A mastermind group is a great solution for solo entrepreneurs, small teams, or for organizations that feel that external expertise or fresh perspectives will be beneficial for them. It is worth noting that Mastermind groups are often only as good as the participants and what they can bring to the group. Participants need to be committed, engaged and understand how to work in this context. 

Coaching and mentoring

• Focused learning and development
• Filling skills gaps
• Working on a range of challenges over time

Receiving advice from a business coach or building a mentor/mentee relationship can be an effective way of resolving certain challenges. The one-to-one format of most coaching and mentor relationships can really help solve the challenges those individuals are having and benefit the organization as a result.

A great mentor can be invaluable when it comes to spotting potential problems before they arise and coming to understand a mentee very well has a host of other business benefits. You might run an internal mentorship program to help develop your team’s problem solving skills and strategies or as part of a large learning and development program. External coaches can also be an important part of your problem solving strategy, filling skills gaps for your management team or helping with specific business issues. 

Now we’ve explored the problem solving process and the steps you will want to go through in order to have an effective session, let’s look at the skills you and your team need to be more effective problem solvers.

Problem solving skills are highly sought after, whatever industry or team you work in. Organizations are keen to employ people who are able to approach problems thoughtfully and find strong, realistic solutions. Whether you are a facilitator , a team leader or a developer, being an effective problem solver is a skill you’ll want to develop.

Problem solving skills form a whole suite of techniques and approaches that an individual uses to not only identify problems but to discuss them productively before then developing appropriate solutions.

Here are some of the most important problem solving skills everyone from executives to junior staff members should learn. We’ve also included an activity or exercise from the SessionLab library that can help you and your team develop that skill. 

If you’re running a workshop or training session to try and improve problem solving skills in your team, try using these methods to supercharge your process!

Active listening

Active listening is one of the most important skills anyone who works with people can possess. In short, active listening is a technique used to not only better understand what is being said by an individual, but also to be more aware of the underlying message the speaker is trying to convey. When it comes to problem solving, active listening is integral for understanding the position of every participant and to clarify the challenges, ideas and solutions they bring to the table.

Some active listening skills include:

• Paying complete attention to the speaker.
• Removing distractions.
• Avoid interruption.
• Taking the time to fully understand before preparing a rebuttal.
• Responding respectfully and appropriately.
• Demonstrate attentiveness and positivity with an open posture, making eye contact with the speaker, smiling and nodding if appropriate. Show that you are listening and encourage them to continue.
• Be aware of and respectful of feelings. Judge the situation and respond appropriately. You can disagree without being disrespectful.   
• Observe body language. 
• Paraphrase what was said in your own words, either mentally or verbally.
• Remain neutral. 
• Reflect and take a moment before responding.
• Ask deeper questions based on what is said and clarify points where necessary.   

Active Listening   #hyperisland   #skills   #active listening   #remote-friendly   This activity supports participants to reflect on a question and generate their own solutions using simple principles of active listening and peer coaching. It’s an excellent introduction to active listening but can also be used with groups that are already familiar with it. Participants work in groups of three and take turns being: “the subject”, the listener, and the observer.

Analytical skills

All problem solving models require strong analytical skills, particularly during the beginning of the process and when it comes to analyzing how solutions have performed.

Analytical skills are primarily focused on performing an effective analysis by collecting, studying and parsing data related to a problem or opportunity. 

It often involves spotting patterns, being able to see things from different perspectives and using observable facts and data to make suggestions or produce insight. 

Analytical skills are also important at every stage of the problem solving process and by having these skills, you can ensure that any ideas or solutions you create or backed up analytically and have been sufficiently thought out.

Nine Whys   #innovation   #issue analysis   #liberating structures   With breathtaking simplicity, you can rapidly clarify for individuals and a group what is essentially important in their work. You can quickly reveal when a compelling purpose is missing in a gathering and avoid moving forward without clarity. When a group discovers an unambiguous shared purpose, more freedom and more responsibility are unleashed. You have laid the foundation for spreading and scaling innovations with fidelity.

Collaboration

Trying to solve problems on your own is difficult. Being able to collaborate effectively, with a free exchange of ideas, to delegate and be a productive member of a team is hugely important to all problem solving strategies.

Remember that whatever your role, collaboration is integral, and in a problem solving process, you are all working together to find the best solution for everyone. 

Marshmallow challenge with debriefing   #teamwork   #team   #leadership   #collaboration   In eighteen minutes, teams must build the tallest free-standing structure out of 20 sticks of spaghetti, one yard of tape, one yard of string, and one marshmallow. The marshmallow needs to be on top. The Marshmallow Challenge was developed by Tom Wujec, who has done the activity with hundreds of groups around the world. Visit the Marshmallow Challenge website for more information. This version has an extra debriefing question added with sample questions focusing on roles within the team.

Communication  

Being an effective communicator means being empathetic, clear and succinct, asking the right questions, and demonstrating active listening skills throughout any discussion or meeting. 

In a problem solving setting, you need to communicate well in order to progress through each stage of the process effectively. As a team leader, it may also fall to you to facilitate communication between parties who may not see eye to eye. Effective communication also means helping others to express themselves and be heard in a group.

Bus Trip   #feedback   #communication   #appreciation   #closing   #thiagi   #team   This is one of my favourite feedback games. I use Bus Trip at the end of a training session or a meeting, and I use it all the time. The game creates a massive amount of energy with lots of smiles, laughs, and sometimes even a teardrop or two.

Creative problem solving skills can be some of the best tools in your arsenal. Thinking creatively, being able to generate lots of ideas and come up with out of the box solutions is useful at every step of the process. 

The kinds of problems you will likely discuss in a problem solving workshop are often difficult to solve, and by approaching things in a fresh, creative manner, you can often create more innovative solutions.

Having practical creative skills is also a boon when it comes to problem solving. If you can help create quality design sketches and prototypes in record time, it can help bring a team to alignment more quickly or provide a base for further iteration.

The paper clip method   #sharing   #creativity   #warm up   #idea generation   #brainstorming   The power of brainstorming. A training for project leaders, creativity training, and to catalyse getting new solutions.

Critical thinking

Critical thinking is one of the fundamental problem solving skills you’ll want to develop when working on developing solutions. Critical thinking is the ability to analyze, rationalize and evaluate while being aware of personal bias, outlying factors and remaining open-minded.

Defining and analyzing problems without deploying critical thinking skills can mean you and your team go down the wrong path. Developing solutions to complex issues requires critical thinking too – ensuring your team considers all possibilities and rationally evaluating them. 

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.

Data analysis 

Though it shares lots of space with general analytical skills, data analysis skills are something you want to cultivate in their own right in order to be an effective problem solver.

Being good at data analysis doesn’t just mean being able to find insights from data, but also selecting the appropriate data for a given issue, interpreting it effectively and knowing how to model and present that data. Depending on the problem at hand, it might also include a working knowledge of specific data analysis tools and procedures. 

Having a solid grasp of data analysis techniques is useful if you’re leading a problem solving workshop but if you’re not an expert, don’t worry. Bring people into the group who has this skill set and help your team be more effective as a result.

Decision making

All problems need a solution and all solutions require that someone make the decision to implement them. Without strong decision making skills, teams can become bogged down in discussion and less effective as a result. 

Making decisions is a key part of the problem solving process. It’s important to remember that decision making is not restricted to the leadership team. Every staff member makes decisions every day and developing these skills ensures that your team is able to solve problems at any scale. Remember that making decisions does not mean leaping to the first solution but weighing up the options and coming to an informed, well thought out solution to any given problem that works for the whole team.

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

Dependability

Most complex organizational problems require multiple people to be involved in delivering the solution. Ensuring that the team and organization can depend on you to take the necessary actions and communicate where necessary is key to ensuring problems are solved effectively.

Being dependable also means working to deadlines and to brief. It is often a matter of creating trust in a team so that everyone can depend on one another to complete the agreed actions in the agreed time frame so that the team can move forward together. Being undependable can create problems of friction and can limit the effectiveness of your solutions so be sure to bear this in mind throughout a project. 

Team Purpose & Culture   #team   #hyperisland   #culture   #remote-friendly   This is an essential process designed to help teams define their purpose (why they exist) and their culture (how they work together to achieve that purpose). Defining these two things will help any team to be more focused and aligned. With support of tangible examples from other companies, the team members work as individuals and a group to codify the way they work together. The goal is a visual manifestation of both the purpose and culture that can be put up in the team’s work space.

Emotional intelligence

Emotional intelligence is an important skill for any successful team member, whether communicating internally or with clients or users. In the problem solving process, emotional intelligence means being attuned to how people are feeling and thinking, communicating effectively and being self-aware of what you bring to a room. 

There are often differences of opinion when working through problem solving processes, and it can be easy to let things become impassioned or combative. Developing your emotional intelligence means being empathetic to your colleagues and managing your own emotions throughout the problem and solution process. Be kind, be thoughtful and put your points across care and attention. 

Being emotionally intelligent is a skill for life and by deploying it at work, you can not only work efficiently but empathetically. Check out the emotional culture workshop template for more!

Facilitation

As we’ve clarified in our facilitation skills post, facilitation is the art of leading people through processes towards agreed-upon objectives in a manner that encourages participation, ownership, and creativity by all those involved. While facilitation is a set of interrelated skills in itself, the broad definition of facilitation can be invaluable when it comes to problem solving. Leading a team through a problem solving process is made more effective if you improve and utilize facilitation skills – whether you’re a manager, team leader or external stakeholder.

The Six Thinking Hats   #creative thinking   #meeting facilitation   #problem solving   #issue resolution   #idea generation   #conflict resolution   The Six Thinking Hats are used by individuals and groups to separate out conflicting styles of thinking. They enable and encourage a group of people to think constructively together in exploring and implementing change, rather than using argument to fight over who is right and who is wrong.

Flexibility 

Being flexible is a vital skill when it comes to problem solving. This does not mean immediately bowing to pressure or changing your opinion quickly: instead, being flexible is all about seeing things from new perspectives, receiving new information and factoring it into your thought process.

Flexibility is also important when it comes to rolling out solutions. It might be that other organizational projects have greater priority or require the same resources as your chosen solution. Being flexible means understanding needs and challenges across the team and being open to shifting or arranging your own schedule as necessary. Again, this does not mean immediately making way for other projects. It’s about articulating your own needs, understanding the needs of others and being able to come to a meaningful compromise.

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.

Working in any group can lead to unconscious elements of groupthink or situations in which you may not wish to be entirely honest. Disagreeing with the opinions of the executive team or wishing to save the feelings of a coworker can be tricky to navigate, but being honest is absolutely vital when to comes to developing effective solutions and ensuring your voice is heard. 

Remember that being honest does not mean being brutally candid. You can deliver your honest feedback and opinions thoughtfully and without creating friction by using other skills such as emotional intelligence. 

Explore your Values   #hyperisland   #skills   #values   #remote-friendly   Your Values is an exercise for participants to explore what their most important values are. It’s done in an intuitive and rapid way to encourage participants to follow their intuitive feeling rather than over-thinking and finding the “correct” values. It is a good exercise to use to initiate reflection and dialogue around personal values.

Initiative 

The problem solving process is multi-faceted and requires different approaches at certain points of the process. Taking initiative to bring problems to the attention of the team, collect data or lead the solution creating process is always valuable. You might even roadtest your own small scale solutions or brainstorm before a session. Taking initiative is particularly effective if you have good deal of knowledge in that area or have ownership of a particular project and want to get things kickstarted.

That said, be sure to remember to honor the process and work in service of the team. If you are asked to own one part of the problem solving process and you don’t complete that task because your initiative leads you to work on something else, that’s not an effective method of solving business challenges.

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.

Impartiality

A particularly useful problem solving skill for product owners or managers is the ability to remain impartial throughout much of the process. In practice, this means treating all points of view and ideas brought forward in a meeting equally and ensuring that your own areas of interest or ownership are not favored over others. 

There may be a stage in the process where a decision maker has to weigh the cost and ROI of possible solutions against the company roadmap though even then, ensuring that the decision made is based on merit and not personal opinion. 

Empathy map   #frame insights   #create   #design   #issue analysis   An empathy map is a tool to help a design team to empathize with the people they are designing for. You can make an empathy map for a group of people or for a persona. To be used after doing personas when more insights are needed.

Being a good leader means getting a team aligned, energized and focused around a common goal. In the problem solving process, strong leadership helps ensure that the process is efficient, that any conflicts are resolved and that a team is managed in the direction of success.

It’s common for managers or executives to assume this role in a problem solving workshop, though it’s important that the leader maintains impartiality and does not bulldoze the group in a particular direction. Remember that good leadership means working in service of the purpose and team and ensuring the workshop is a safe space for employees of any level to contribute. Take a look at our leadership games and activities post for more exercises and methods to help improve leadership in your organization.

Leadership Pizza   #leadership   #team   #remote-friendly   This leadership development activity offers a self-assessment framework for people to first identify what skills, attributes and attitudes they find important for effective leadership, and then assess their own development and initiate goal setting.

In the context of problem solving, mediation is important in keeping a team engaged, happy and free of conflict. When leading or facilitating a problem solving workshop, you are likely to run into differences of opinion. Depending on the nature of the problem, certain issues may be brought up that are emotive in nature. 

Being an effective mediator means helping those people on either side of such a divide are heard, listen to one another and encouraged to find common ground and a resolution. Mediating skills are useful for leaders and managers in many situations and the problem solving process is no different.

Conflict Responses   #hyperisland   #team   #issue resolution   A workshop for a team to reflect on past conflicts, and use them to generate guidelines for effective conflict handling. The workshop uses the Thomas-Killman model of conflict responses to frame a reflective discussion. Use it to open up a discussion around conflict with a team.

Planning 

Solving organizational problems is much more effective when following a process or problem solving model. Planning skills are vital in order to structure, deliver and follow-through on a problem solving workshop and ensure your solutions are intelligently deployed.

Planning skills include the ability to organize tasks and a team, plan and design the process and take into account any potential challenges. Taking the time to plan carefully can save time and frustration later in the process and is valuable for ensuring a team is positioned for success.

3 Action Steps   #hyperisland   #action   #remote-friendly   This is a small-scale strategic planning session that helps groups and individuals to take action toward a desired change. It is often used at the end of a workshop or programme. The group discusses and agrees on a vision, then creates some action steps that will lead them towards that vision. The scope of the challenge is also defined, through discussion of the helpful and harmful factors influencing the group.

Prioritization

As organisations grow, the scale and variation of problems they face multiplies. Your team or is likely to face numerous challenges in different areas and so having the skills to analyze and prioritize becomes very important, particularly for those in leadership roles.

A thorough problem solving process is likely to deliver multiple solutions and you may have several different problems you wish to solve simultaneously. Prioritization is the ability to measure the importance, value, and effectiveness of those possible solutions and choose which to enact and in what order. The process of prioritization is integral in ensuring the biggest challenges are addressed with the most impactful solutions.

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.

Project management

Some problem solving skills are utilized in a workshop or ideation phases, while others come in useful when it comes to decision making. Overseeing an entire problem solving process and ensuring its success requires strong project management skills. 

While project management incorporates many of the other skills listed here, it is important to note the distinction of considering all of the factors of a project and managing them successfully. Being able to negotiate with stakeholders, manage tasks, time and people, consider costs and ROI, and tie everything together is massively helpful when going through the problem solving process. 

Record keeping

Working out meaningful solutions to organizational challenges is only one part of the process.  Thoughtfully documenting and keeping records of each problem solving step for future consultation is important in ensuring efficiency and meaningful change. 

For example, some problems may be lower priority than others but can be revisited in the future. If the team has ideated on solutions and found some are not up to the task, record those so you can rule them out and avoiding repeating work. Keeping records of the process also helps you improve and refine your problem solving model next time around!

Personal Kanban   #gamestorming   #action   #agile   #project planning   Personal Kanban is a tool for organizing your work to be more efficient and productive. It is based on agile methods and principles.

Research skills

Conducting research to support both the identification of problems and the development of appropriate solutions is important for an effective process. Knowing where to go to collect research, how to conduct research efficiently, and identifying pieces of research are relevant are all things a good researcher can do well. 

In larger groups, not everyone has to demonstrate this ability in order for a problem solving workshop to be effective. That said, having people with research skills involved in the process, particularly if they have existing area knowledge, can help ensure the solutions that are developed with data that supports their intention. Remember that being able to deliver the results of research efficiently and in a way the team can easily understand is also important. The best data in the world is only as effective as how it is delivered and interpreted.

Customer experience map   #ideation   #concepts   #research   #design   #issue analysis   #remote-friendly   Customer experience mapping is a method of documenting and visualizing the experience a customer has as they use the product or service. It also maps out their responses to their experiences. To be used when there is a solution (even in a conceptual stage) that can be analyzed.

Risk management

Managing risk is an often overlooked part of the problem solving process. Solutions are often developed with the intention of reducing exposure to risk or solving issues that create risk but sometimes, great solutions are more experimental in nature and as such, deploying them needs to be carefully considered. 

Managing risk means acknowledging that there may be risks associated with more out of the box solutions or trying new things, but that this must be measured against the possible benefits and other organizational factors. 

Be informed, get the right data and stakeholders in the room and you can appropriately factor risk into your decision making process. 

Decisions, Decisions…   #communication   #decision making   #thiagi   #action   #issue analysis   When it comes to decision-making, why are some of us more prone to take risks while others are risk-averse? One explanation might be the way the decision and options were presented.  This exercise, based on Kahneman and Tversky’s classic study , illustrates how the framing effect influences our judgement and our ability to make decisions . The participants are divided into two groups. Both groups are presented with the same problem and two alternative programs for solving them. The two programs both have the same consequences but are presented differently. The debriefing discussion examines how the framing of the program impacted the participant’s decision.

Team-building 

No single person is as good at problem solving as a team. Building an effective team and helping them come together around a common purpose is one of the most important problem solving skills, doubly so for leaders. By bringing a team together and helping them work efficiently, you pave the way for team ownership of a problem and the development of effective solutions. 

In a problem solving workshop, it can be tempting to jump right into the deep end, though taking the time to break the ice, energize the team and align them with a game or exercise will pay off over the course of the day.

Remember that you will likely go through the problem solving process multiple times over an organization’s lifespan and building a strong team culture will make future problem solving more effective. It’s also great to work with people you know, trust and have fun with. Working on team building in and out of the problem solving process is a hallmark of successful teams that can work together to solve business problems.

9 Dimensions Team Building Activity   #ice breaker   #teambuilding   #team   #remote-friendly   9 Dimensions is a powerful activity designed to build relationships and trust among team members. There are 2 variations of this icebreaker. The first version is for teams who want to get to know each other better. The second version is for teams who want to explore how they are working together as a team.

Time management 

The problem solving process is designed to lead a team from identifying a problem through to delivering a solution and evaluating its effectiveness. Without effective time management skills or timeboxing of tasks, it can be easy for a team to get bogged down or be inefficient.

By using a problem solving model and carefully designing your workshop, you can allocate time efficiently and trust that the process will deliver the results you need in a good timeframe.

Time management also comes into play when it comes to rolling out solutions, particularly those that are experimental in nature. Having a clear timeframe for implementing and evaluating solutions is vital for ensuring their success and being able to pivot if necessary.

Improving your skills at problem solving is often a career-long pursuit though there are methods you can use to make the learning process more efficient and to supercharge your problem solving skillset.

Remember that the skills you need to be a great problem solver have a large overlap with those skills you need to be effective in any role. Investing time and effort to develop your active listening or critical thinking skills is valuable in any context. Here are 7 ways to improve your problem solving skills.

Share best practices

Remember that your team is an excellent source of skills, wisdom, and techniques and that you should all take advantage of one another where possible. Best practices that one team has for solving problems, conducting research or making decisions should be shared across the organization. If you have in-house staff that have done active listening training or are data analysis pros, have them lead a training session. 

Your team is one of your best resources. Create space and internal processes for the sharing of skills so that you can all grow together. 

Ask for help and attend training

Once you’ve figured out you have a skills gap, the next step is to take action to fill that skills gap. That might be by asking your superior for training or coaching, or liaising with team members with that skill set. You might even attend specialized training for certain skills – active listening or critical thinking, for example, are business-critical skills that are regularly offered as part of a training scheme.

Whatever method you choose, remember that taking action of some description is necessary for growth. Whether that means practicing, getting help, attending training or doing some background reading, taking active steps to improve your skills is the way to go.

Learn a process 

Problem solving can be complicated, particularly when attempting to solve large problems for the first time. Using a problem solving process helps give structure to your problem solving efforts and focus on creating outcomes, rather than worrying about the format. 

Tools such as the seven-step problem solving process above are effective because not only do they feature steps that will help a team solve problems, they also develop skills along the way. Each step asks for people to engage with the process using different skills and in doing so, helps the team learn and grow together. Group processes of varying complexity and purpose can also be found in the SessionLab library of facilitation techniques . Using a tried and tested process and really help ease the learning curve for both those leading such a process, as well as those undergoing the purpose.

Effective teams make decisions about where they should and shouldn’t expend additional effort. By using a problem solving process, you can focus on the things that matter, rather than stumbling towards a solution haphazardly. 

Create a feedback loop

Some skills gaps are more obvious than others. It’s possible that your perception of your active listening skills differs from those of your colleagues. 

It’s valuable to create a system where team members can provide feedback in an ordered and friendly manner so they can all learn from one another. Only by identifying areas of improvement can you then work to improve them. 

Remember that feedback systems require oversight and consideration so that they don’t turn into a place to complain about colleagues. Design the system intelligently so that you encourage the creation of learning opportunities, rather than encouraging people to list their pet peeves.

While practice might not make perfect, it does make the problem solving process easier. If you are having trouble with critical thinking, don’t shy away from doing it. Get involved where you can and stretch those muscles as regularly as possible. 

Problem solving skills come more naturally to some than to others and that’s okay. Take opportunities to get involved and see where you can practice your skills in situations outside of a workshop context. Try collaborating in other circumstances at work or conduct data analysis on your own projects. You can often develop those skills you need for problem solving simply by doing them. Get involved!

Use expert exercises and methods

Learn from the best. Our library of 700+ facilitation techniques is full of activities and methods that help develop the skills you need to be an effective problem solver. Check out our templates to see how to approach problem solving and other organizational challenges in a structured and intelligent manner.

There is no single approach to improving problem solving skills, but by using the techniques employed by others you can learn from their example and develop processes that have seen proven results. 

Try new ways of thinking and change your mindset

Using tried and tested exercises that you know well can help deliver results, but you do run the risk of missing out on the learning opportunities offered by new approaches. As with the problem solving process, changing your mindset can remove blockages and be used to develop your problem solving skills.

Most teams have members with mixed skill sets and specialties. Mix people from different teams and share skills and different points of view. Teach your customer support team how to use design thinking methods or help your developers with conflict resolution techniques. Try switching perspectives with facilitation techniques like Flip It! or by using new problem solving methodologies or models. Give design thinking, liberating structures or lego serious play a try if you want to try a new approach. You will find that framing problems in new ways and using existing skills in new contexts can be hugely useful for personal development and improving your skillset. It’s also a lot of fun to try new things. Give it a go!

Encountering business challenges and needing to find appropriate solutions is not unique to your organization. Lots of very smart people have developed methods, theories and approaches to help develop problem solving skills and create effective solutions. Learn from them!

Books like The Art of Thinking Clearly , Think Smarter, or Thinking Fast, Thinking Slow are great places to start, though it’s also worth looking at blogs related to organizations facing similar problems to yours, or browsing for success stories. Seeing how Dropbox massively increased growth and working backward can help you see the skills or approach you might be lacking to solve that same problem. Learning from others by reading their stories or approaches can be time-consuming but ultimately rewarding.

A tired, distracted mind is not in the best position to learn new skills. It can be tempted to burn the candle at both ends and develop problem solving skills outside of work. Absolutely use your time effectively and take opportunities for self-improvement, though remember that rest is hugely important and that without letting your brain rest, you cannot be at your most effective. 

Creating distance between yourself and the problem you might be facing can also be useful. By letting an idea sit, you can find that a better one presents itself or you can develop it further. Take regular breaks when working and create a space for downtime. Remember that working smarter is preferable to working harder and that self-care is important for any effective learning or improvement process.

Want to design better group processes?

Over to you

Now we’ve explored some of the key problem solving skills and the problem solving steps necessary for an effective process, you’re ready to begin developing more effective solutions and leading problem solving workshops.

Need more inspiration? Check out our post on problem solving activities you can use when guiding a group towards a great solution in your next workshop or meeting. Have questions? Did you have a great problem solving technique you use with your team? Get in touch in the comments below. We’d love to chat!

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• Improved efficiency and productivity: Employees with strong problem solving and decision making skills are better equipped to identify and solve issues that may arise in their work. This leads to improved efficiency and productivity as they can complete their work more timely and effectively.
• Improved customer satisfaction: Problem solving and decision making skills also help employees address any concerns or issues customers may have. This leads to enhanced customer satisfaction as customers feel their needs are being addressed and their problems are resolved.
• Effective teamwork: When working in teams, problem solving and decision making skills are essential for effective collaboration . Groups that can effectively identify and solve problems together are more likely to successfully achieve their goals.
• Innovation: Effective problem-solving and decision-making skills are also crucial for driving innovation in the workplace. Employees who think creatively and develop new solutions to problems are more likely to develop innovative ideas to move the business forward.
• Risk management: Problem solving and decision making skills are also crucial for managing risk in the workplace. By identifying potential risks and developing strategies to mitigate them, employees can help minimize the negative impact of risks on the business.

• Brainstorming: Brainstorming is a technique for generating creative ideas and solutions to problems. In a brainstorming session, a group of people share their thoughts and build on each other’s suggestions. The goal is to generate a large number of ideas in a short amount of time. For example, a team of engineers could use brainstorming to develop new ideas for improving the efficiency of a manufacturing process.
• Root Cause Analysis: Root cause analysis is a technique for identifying the underlying cause of a problem. It involves asking “why” questions to uncover the root cause of the problem. Once the root cause is identified, steps can be taken to address it. For example, a hospital could use root cause analysis to investigate why patient falls occur and identify the root cause, such as inadequate staffing or poor lighting.
• SWOT Analysis: SWOT analysis is a technique for evaluating the strengths, weaknesses, opportunities, and threats related to a problem or situation. It involves assessing internal and external factors that could impact the problem and identifying ways to leverage strengths and opportunities while minimizing weaknesses and threats. For example, a small business could use SWOT analysis to evaluate its market position and identify opportunities to expand its product line or improve its marketing.
• Pareto Analysis: Pareto analysis is a technique for identifying the most critical problems to address. It involves ranking problems by impact and frequency and first focusing on the most significant issues. For example, a software development team could use Pareto analysis to prioritize bugs and issues to fix based on their impact on the user experience.
• Decision Matrix Analysis: Decision matrix analysis evaluates alternatives and selects the best course of action. It involves creating a matrix to compare options based on criteria and weighting factors and selecting the option with the highest score. For example, a manager could use decision matrix analysis to evaluate different software vendors based on criteria such as price, features, and support and select the vendor with the best overall score.

• Cost-Benefit Analysis: Cost-benefit analysis is a technique for evaluating the costs and benefits of different options. It involves comparing each option’s expected costs and benefits and selecting the one with the highest net benefit. For example, a company could use cost-benefit analysis to evaluate a new product line’s potential return on investment.
• Decision Trees: Decision trees are a visual representation of the decision-making process. They involve mapping out different options and their potential outcomes and probabilities. This helps to identify the best course of action based on the likelihood of different outcomes. For example, a farmer could use a decision tree to choose crops to plant based on the expected weather patterns.
• SWOT Analysis: SWOT analysis can also be used for decision making. By identifying the strengths, weaknesses, opportunities, and threats of different options, a decision maker can evaluate each option’s potential risks and benefits. For example, a business owner could use SWOT analysis to assess the potential risks and benefits of expanding into a new market.
• Pros and Cons Analysis: Pros and cons analysis lists the advantages and disadvantages of different options. It involves weighing the pros and cons of each option to determine the best course of action. For example, an individual could use a pros and cons analysis to decide whether to take a job offer.
• Six Thinking Hats: The six thinking hats technique is a way to think about a problem from different perspectives. It involves using six different “hats” to consider various aspects of the decision. The hats include white (facts and figures), red (emotions and feelings), black (risks and drawbacks), yellow (benefits and opportunities), green (creativity and new ideas), and blue (overview and control). For example, a team could use the six thinking hats technique to evaluate different options for a marketing campaign.

Aastha Bensla

Aastha, a passionate industrial psychologist, writer, and counselor, brings her unique expertise to Risely. With specialized knowledge in industrial psychology, Aastha offers a fresh perspective on personal and professional development. Her broad experience as an industrial psychologist enables her to accurately understand and solve problems for managers and leaders with an empathetic approach.

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Introduction

In previous lessons, you learned about characteristics of critical thinkers and information literacy. In this module, you will learn how to put those skills into action through the important processes of decision making and problem solving.

As with the process of developing information literacy, asking questions is an important part of decision making and problem solving. Thinking is born of questions. Questions wake us up. Questions alert us to hidden assumptions. Questions promote curiosity and create new distinctions. Questions open up options that otherwise go unexplored. Besides, teachers love questions.

We make decisions all the time, whether we realize it or not. Even avoiding decisions is a form of decision making. The student who puts off studying for a test until the last minute, for example, might really be saying, “I’ve decided this course is not important” or “I’ve decided not to give this course much time.”

Decisions are specific and lead to focused action. When we decide, we narrow down. We give up actions that are inconsistent with our decision.

In addition to decision making, critical thinking skills are important to solving problems. We encounter problems every single day, and having a solid process in place is important to solving them.

At the end of the lesson, you will learn how to put your critical thinking skills to use by reviewing an example of how critical thinking skills can help with making those everyday decisions.

Using Critical Thinking Skills: Asking Questions

Questions have practical power. Asking for directions can shave hours off a trip. Asking a librarian for help can save hours of research time. Asking how to address an instructor—by first name or formal title—can change your relationship with that person. Asking your academic advisor a question can alter your entire education. Asking people about their career plans can alter your career plans.

You can use the following strategies to develop questions for problem solving and decision making:

Ask questions that create possibilities. At any moment, you can ask a question that opens up a new possibility for someone.

• Suppose a friend walks up to you and says, “People just never listen to me.” You listen carefully. Then you say, “Let me make sure I understand. Who, specifically, doesn’t listen to you? And how do you know they’re not listening?”
• Another friend tells you, “I just lost my job to someone who has less experience. That should never happen.” You respond, “Wow, that’s hard. I’m sorry you lost your job. Who can help you find another job?”
• A relative seeks your advice. “My mother-in-law makes me mad,” she says. “You’re having a hard time with this person,” you say. “What does she say and do when you feel mad at her? And are there times when you don’t get mad at her?”

These kinds of questions—asked with compassion and a sense of timing—can help people move from complaining about problems to solving them.

Discover new questions. Students sometimes say, “I don’t know what questions to ask.” Consider the following ways to create questions about any subject you want to study or about any

area of your life that you want to change:

• Let your pen start moving. Sometimes you can access a deeper level of knowledge by taking out your pen, putting it on a piece of paper, and writing down questions—even before you know what to write. Don’t think. Just watch the pen move across the paper. Notice what appears. The results might be surprising.
• Ask about what’s missing . Another way to invent useful questions is to notice what’s missing from your life and then ask how to supply it. For example, if you want to take better notes, you can write, “What’s missing is skill in note taking. How can I gain more skill in taking notes?” If you always feel rushed, you can write, “What’s missing is time. How do I create enough time in my day to actually do the things that I say I want to do?”
• Pretend to be someone else. Another way to invent questions is first to think of someone you greatly respect. Then pretend you’re that person. Ask the questions you think she would ask.
• What can I do when ... an instructor calls on me in class and I have no idea what to say? When a teacher doesn’t show up for class on time? When I feel overwhelmed with assignments?
• How can I ... take the kind of courses that I want? Expand my career options? Become much more effective as a student, starting today?
• When do I ... decide on a major? Transfer to another school? Meet with an instructor to discuss an upcoming term paper?
• What else do I want to know about ... my academic plan? My career plan? My options for job hunting? My friends? My relatives? My spouse?
• Who can I ask about ... my career options? My major? My love life? My values and purpose in life?

Many times you can quickly generate questions by simply asking yourself, “What else do I want to know?” Ask this question immediately after you read a paragraph in a book or listen to someone speak.

Start from the assumption that you are brilliant. Then ask questions to unlock your brilliance.

Using Critical Thinking Skills in Decision Making

As you develop your critical thinking skills, you can apply them as you make decisions. The following suggestions can help in your decision-making process:

Recognize decisions. Decisions are more than wishes or desires. There’s a world of difference between “I wish I could be a better student” and “I will take more powerful notes, read with greater retention, and review my class notes daily.” Deciding to eat fruit for dessert instead of ice cream rules out the next trip to the ice cream store.

Establish priorities. Some decisions are trivial. No matter what the outcome, your life is not affected much. Other decisions can shape your circumstances for years. Devote more time and energy to the decisions with big outcomes.

Base decisions on a life plan. The benefit of having long-term goals for our lives is that they provide a basis for many of our daily decisions. Being certain about what we want to accomplish this year and this month makes today’s choices more clear.

Balance learning styles in decision making. To make decisions more effectively, use all four modes of learning explained in a previous lesson. The key is to balance reflection with action, and thinking with experience. First, take the time to think creatively, and generate many options. Then think critically about the possible consequences of each option before choosing one. Remember, however, that thinking is no substitute for experience. Act on your chosen option, and notice what happens. If you’re not getting the results you want, then quickly return to creative thinking to invent new options.

Choose an overall strategy. Every time you make a decision, you choose a strategy—even when you’re not aware of it. Effective decision makers can articulate and choose from among several strategies. For example:

• Find all of the available options, and choose one deliberately. Save this strategy for times when you have a relatively small number of options, each of which leads to noticeably different results.
• Find all of the available options, and choose one randomly. This strategy can be risky. Save it for times when your options are basically similar and fairness is the main issue.
• Limit the options, and then choose. When deciding which search engine to use, visit many search sites and then narrow the list down to two or three from which to choose.

Use time as an ally. Sometimes we face dilemmas—situations in which any course of action leads to undesirable consequences. In such cases, consider putting a decision on hold. Wait it out. Do nothing until the circumstances change, making one alternative clearly preferable to another.

Use intuition. Some decisions seem to make themselves. A solution pops into your mind, and you gain newfound clarity. Using intuition is not the same as forgetting about the decision or refusing to make it. Intuitive decisions usually arrive after we’ve gathered the relevant facts and faced a problem for some time.

Evaluate your decision. Hindsight is a source of insight. After you act on a decision, observe the consequences over time. Reflect on how well your decision worked and what you might have done differently.

Think of choices. This final suggestion involves some creative thinking. Consider that the word decide derives from the same roots as suicide and homicide . In the spirit of those words, a decision forever “kills” all other options. That’s kind of heavy. Instead, use the word choice , and see whether it frees up your thinking. When you choose , you express a preference for one option over others. However, those options remain live possibilities for the future. Choose for today, knowing that as you gain more wisdom and experience, you can choose again.

Using Critical Thinking Skills in Problem Solving

Think of problem solving as a process with four Ps : Define the problem , generate possibilities ,

create a plan , and perform your plan.

Step 1: Define the problem. To define a problem effectively, understand what a problem is—a mismatch between what you want and what you have. Problem solving is all about reducing the gap between these two factors.

Tell the truth about what’s present in your life right now, without shame or blame. For example: “I often get sleepy while reading my physics assignments, and after closing the book I cannot remember what I just read.”

Next, describe in detail what you want. Go for specifics: “I want to remain alert as I read about physics. I also want to accurately summarize each chapter I read.”

Remember that when we define a problem in limiting ways, our solutions merely generate new problems. As Albert Einstein said, “The world we have made is a result of the level of thinking we have done thus far. We cannot solve problems at the same level at which we created them” (Calaprice 2000).

This idea has many applications for success in school. An example is the student who struggles with note taking. The problem, she thinks, is that her notes are too sketchy. The logical solution, she decides, is to take more notes; her new goal is to write down almost everything her instructors say. No matter how fast and furiously she writes, she cannot capture all of the instructors’ comments.

Consider what happens when this student defines the problem in a new way. After more thought, she decides that her dilemma is not the quantity of her notes but their quality . She adopts a new format for taking notes, dividing her notepaper into two columns. In the right-hand column, she writes down only the main points of each lecture. In the left-hand column, she notes two or three supporting details for each point.

Over time, this student makes the joyous discovery that there are usually just three or four core ideas to remember from each lecture. She originally thought the solution was to take more notes. What really worked was taking notes in a new way.

Step 2: Generate possibilities. Now put on your creative thinking hat. Open up. Brainstorm as many possible solutions to the problem as you can. At this stage, quantity counts. As you generate possibilities, gather relevant facts. For example, when you’re faced with a dilemma about what courses to take next semester, get information on class times, locations, and instructors. If you haven’t decided which summer job offer to accept, gather information on salary, benefits, and working conditions.

Step 3: Create a plan. After rereading your problem definition and list of possible solutions, choose the solution that seems most workable. Think about specific actions that will reduce the gap between what you have and what you want. Visualize the steps you will take to make this solution a reality, and arrange them in chronological order. To make your plan even more powerful, put it in writing.

Step 4: Perform your plan. This step gets you off your chair and out into the world. Now you actually do what you have planned.

Ultimately, your skill in solving problems lies in how well you perform your plan. Through the quality of your actions, you become the architect of your own success.

When facing problems, experiment with these four Ps, and remember that the order of steps is not absolute. Also remember that any solution has the potential to create new problems. If that happens, cycle through the four Ps of problem solving again.

Critical Thinking Skills in Action: Thinking About Your Major, Part 1

One decision that troubles many students in higher education is the choice of a major. Weighing the benefits, costs, and outcomes of a possible major is an intellectual challenge. This choice is an opportunity to apply your critical thinking, decision-making, and problem-solving skills. The following suggestions will guide you through this seemingly overwhelming process.

The first step is to discover options. You can use the following suggestions to discover options for choosing your major:

Follow the fun. Perhaps you look forward to attending one of your classes and even like completing the assignments. This is a clue to your choice of major.

See whether you can find lasting patterns in the subjects and extracurricular activities that you’ve enjoyed over the years. Look for a major that allows you to continue and expand on these experiences.

Also, sit down with a stack of 3 × 5 cards and brainstorm answers to the following questions:

• What do you enjoy doing most with your unscheduled time?
• Imagine that you’re at a party and having a fascinating conversation. What is this conversation about?
• What kind of problems do you enjoy solving—those that involve people? Products? Ideas?
• What interests are revealed by your choices of reading material, television shows, and other entertainment?
• What would an ideal day look like for you? Describe where you would live, who would be with you, and what you would do throughout the day. Do any of these visions suggest a possible major?

Questions like these can uncover a “fun factor” that energizes you to finish the work of completing a major.

Consider your abilities. In choosing a major, ability counts as much as interest. In addition to considering what you enjoy, think about times and places when you excelled. List the courses that you aced, the work assignments that you mastered, and the hobbies that led to rewards or recognition. Let your choice of a major reflect a discovery of your passions and potentials.

Use formal techniques for self-discovery. Explore questionnaires and inventories that are designed to correlate your interests with specific majors. Examples include the Strong Interest Inventory and the Self-Directed Search. Your academic advisor or someone in your school’s career planning office can give you more details about these and related assessments. For some fun, take several of them and meet with an advisor to interpret the results. Remember inventories can help you gain self-knowledge, and other people can offer valuable perspectives. However, what you do with all this input is entirely up to you.

Critical Thinking Skills in Action: Thinking About Your Major, Part 2

As you review the following additional suggestions of discovering options, think about what strategies you already use in your own decision-making process. Also think about what new strategies you might try in the future.

Link to long-term goals. Your choice of a major can fall into place once you determine what you want in life. Before you choose a major, back up to a bigger picture. List your core values, such as contributing to society, achieving financial security and professional recognition, enjoying good health, or making time for fun. Also write down specific goals that you want to accomplish 5 years, 10 years, or even 50 years from today.

Many students find that the prospect of getting what they want in life justifies all of the time, money, and day-to-day effort invested in going to school. Having a major gives you a powerful incentive for attending classes, taking part in discussions, reading textbooks, writing papers, and completing other assignments. When you see a clear connection between finishing school and creating the life of your dreams, the daily tasks of higher education become charged with meaning.

Ask other people. Key people in your life might have valuable suggestions about your choice of major. Ask for their ideas, and listen with an open mind. At the same time, distance yourself from any pressure to choose a major or career that fails to interest you. If you make a choice solely on the basis of the expectations of other people, you could end up with a major or even a career you don’t enjoy.

Gather information. Check your school’s catalog or website for a list of available majors. Here is a gold mine of information. Take a quick glance, and highlight all the majors that interest you. Then talk to students who have declared these majors. Also read the descriptions of courses required for these majors. Do you get excited about the chance to enroll in them? Pay attention to your gut feelings.

Also chat with instructors who teach courses in a specific major. Ask for copies of their class syllabi. Go to the bookstore and browse the required texts. Based on all of this information, write a list of prospective majors. Discuss them with an academic advisor and someone at your school’s career-planning center.

Invent a major. When choosing a major, you might not need to limit yourself to those listed in your school catalog. Many schools now have flexible programs that allow for independent study. Through such programs, you might be able to combine two existing majors or invent an entirely new one of your own.

Consider a complementary minor. You can add flexibility to your academic program by choosing a minor to complement or contrast with your major. The student who wants to be a minister could opt for a minor in English; all of those courses in composition can help in writing sermons. Or the student with a major in psychology might choose a minor in business administration, with the idea of managing a counseling service some day. An effective choice of a minor can expand your skills and career options.

Think critically about the link between your major and your career. Your career goals might have a significant impact on your choice of major.

You could pursue a rewarding career by choosing among several different majors. Even students planning to apply for law school or medical school have flexibility in their choice of majors. In addition, after graduation, many people tend to be employed in jobs that have little relationship to their major. And you might choose a career in the future that is unrelated to any currently available major.

Critical Thinking Skills in Action: Thinking About Your Major, Part 3

Once you have discovered all of your options, you can move on to the next step in the process— making a trial choice.

Make a Trial Choice

Pretend that you have to choose a major today. Based on the options for a major that you’ve already discovered, write down the first three ideas that come to mind. Review the list for a few minutes, and then choose one.

Evaluate Your Trial Choice

When you’ve made a trial choice of major, take on the role of a scientist. Treat your choice as a hypothesis, and then design a series of experiments to evaluate and test it. For example:

• Schedule office meetings with instructors who teach courses in the major. Ask about required course work and career options in the field.
• Discuss your trial choice with an academic advisor or career counselor.
• Enroll in a course related to your possible major. Remember that introductory courses might not give you a realistic picture of the workload involved in advanced courses. Also, you might not be able to register for certain courses until you’ve actually declared a related major.
• Find a volunteer experience, internship, part-time job, or service-learning experience related to the major.
• Interview students who have declared the same major. Ask them in detail about their experiences and suggestions for success.
• Interview people who work in a field related to the major and “shadow” them—that is, spend time with those people during their workday.
• Think about whether you can complete your major given the amount of time and money that you plan to invest in higher education.
• Consider whether declaring this major would require a transfer to another program or even another school.

If your “experiments” confirm your choice of major, celebrate that fact. If they result in choosing a new major, celebrate that outcome as well.

Also remember that higher education represents a safe place to test your choice of major—and to change your mind. As you sort through your options, help is always available from administrators, instructors, advisors, and peers.

Choose Again

Keep your choice of a major in perspective. There is probably no single “correct” choice. Your unique collection of skills is likely to provide the basis for majoring in several fields.

Odds are that you’ll change your major at least once—and that you’ll change careers several times during your life. One benefit of higher education is mobility. You gain the general skills and knowledge that can help you move into a new major or career field at any time.

Viewing a major as a one-time choice that determines your entire future can raise your stress levels. Instead, look at choosing a major as the start of a continuing path that involves discovery, choice, and passionate action.

As you review this example of how you can use critical thinking to make a decision about choosing your major, think about how you will use your critical thinking to make decisions and solve problems in the future.

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Problem-Solving Strategies and Obstacles

Kendra Cherry, MS, is a psychosocial rehabilitation specialist, psychology educator, and author of the "Everything Psychology Book."

Sean is a fact-checker and researcher with experience in sociology, field research, and data analytics.

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From deciding what to eat for dinner to considering whether it's the right time to buy a house, problem-solving is a large part of our daily lives. Learn some of the problem-solving strategies that exist and how to use them in real life, along with ways to overcome obstacles that are making it harder to resolve the issues you face.

What Is Problem-Solving?

In cognitive psychology , the term 'problem-solving' refers to the mental process that people go through to discover, analyze, and solve problems.

A problem exists when there is a goal that we want to achieve but the process by which we will achieve it is not obvious to us. Put another way, there is something that we want to occur in our life, yet we are not immediately certain how to make it happen.

Maybe you want a better relationship with your spouse or another family member but you're not sure how to improve it. Or you want to start a business but are unsure what steps to take. Problem-solving helps you figure out how to achieve these desires.

The problem-solving process involves:

• Discovery of the problem
• Deciding to tackle the issue
• Seeking to understand the problem more fully
• Researching available options or solutions
• Taking action to resolve the issue

Before problem-solving can occur, it is important to first understand the exact nature of the problem itself. If your understanding of the issue is faulty, your attempts to resolve it will also be incorrect or flawed.

Problem-Solving Mental Processes

Several mental processes are at work during problem-solving. Among them are:

• Perceptually recognizing the problem
• Representing the problem in memory
• Considering relevant information that applies to the problem
• Identifying different aspects of the problem
• Labeling and describing the problem

Problem-Solving Strategies

There are many ways to go about solving a problem. Some of these strategies might be used on their own, or you may decide to employ multiple approaches when working to figure out and fix a problem.

An algorithm is a step-by-step procedure that, by following certain "rules" produces a solution. Algorithms are commonly used in mathematics to solve division or multiplication problems. But they can be used in other fields as well.

In psychology, algorithms can be used to help identify individuals with a greater risk of mental health issues. For instance, research suggests that certain algorithms might help us recognize children with an elevated risk of suicide or self-harm.

One benefit of algorithms is that they guarantee an accurate answer. However, they aren't always the best approach to problem-solving, in part because detecting patterns can be incredibly time-consuming.

There are also concerns when machine learning is involved—also known as artificial intelligence (AI)—such as whether they can accurately predict human behaviors.

Heuristics are shortcut strategies that people can use to solve a problem at hand. These "rule of thumb" approaches allow you to simplify complex problems, reducing the total number of possible solutions to a more manageable set.

If you find yourself sitting in a traffic jam, for example, you may quickly consider other routes, taking one to get moving once again. When shopping for a new car, you might think back to a prior experience when negotiating got you a lower price, then employ the same tactics.

While heuristics may be helpful when facing smaller issues, major decisions shouldn't necessarily be made using a shortcut approach. Heuristics also don't guarantee an effective solution, such as when trying to drive around a traffic jam only to find yourself on an equally crowded route.

Trial and Error

A trial-and-error approach to problem-solving involves trying a number of potential solutions to a particular issue, then ruling out those that do not work. If you're not sure whether to buy a shirt in blue or green, for instance, you may try on each before deciding which one to purchase.

This can be a good strategy to use if you have a limited number of solutions available. But if there are many different choices available, narrowing down the possible options using another problem-solving technique can be helpful before attempting trial and error.

In some cases, the solution to a problem can appear as a sudden insight. You are facing an issue in a relationship or your career when, out of nowhere, the solution appears in your mind and you know exactly what to do.

Insight can occur when the problem in front of you is similar to an issue that you've dealt with in the past. Although, you may not recognize what is occurring since the underlying mental processes that lead to insight often happen outside of conscious awareness .

Research indicates that insight is most likely to occur during times when you are alone—such as when going on a walk by yourself, when you're in the shower, or when lying in bed after waking up.

How to Apply Problem-Solving Strategies in Real Life

If you're facing a problem, you can implement one or more of these strategies to find a potential solution. Here's how to use them in real life:

• Create a flow chart . If you have time, you can take advantage of the algorithm approach to problem-solving by sitting down and making a flow chart of each potential solution, its consequences, and what happens next.
• Recall your past experiences . When a problem needs to be solved fairly quickly, heuristics may be a better approach. Think back to when you faced a similar issue, then use your knowledge and experience to choose the best option possible.
• Start trying potential solutions . If your options are limited, start trying them one by one to see which solution is best for achieving your desired goal. If a particular solution doesn't work, move on to the next.
• Take some time alone . Since insight is often achieved when you're alone, carve out time to be by yourself for a while. The answer to your problem may come to you, seemingly out of the blue, if you spend some time away from others.

Obstacles to Problem-Solving

Problem-solving is not a flawless process as there are a number of obstacles that can interfere with our ability to solve a problem quickly and efficiently. These obstacles include:

• Assumptions: When dealing with a problem, people can make assumptions about the constraints and obstacles that prevent certain solutions. Thus, they may not even try some potential options.
• Functional fixedness : This term refers to the tendency to view problems only in their customary manner. Functional fixedness prevents people from fully seeing all of the different options that might be available to find a solution.
• Irrelevant or misleading information: When trying to solve a problem, it's important to distinguish between information that is relevant to the issue and irrelevant data that can lead to faulty solutions. The more complex the problem, the easier it is to focus on misleading or irrelevant information.
• Mental set: A mental set is a tendency to only use solutions that have worked in the past rather than looking for alternative ideas. A mental set can work as a heuristic, making it a useful problem-solving tool. However, mental sets can also lead to inflexibility, making it more difficult to find effective solutions.

How to Improve Your Problem-Solving Skills

In the end, if your goal is to become a better problem-solver, it's helpful to remember that this is a process. Thus, if you want to improve your problem-solving skills, following these steps can help lead you to your solution:

• Recognize that a problem exists . If you are facing a problem, there are generally signs. For instance, if you have a mental illness , you may experience excessive fear or sadness, mood changes, and changes in sleeping or eating habits. Recognizing these signs can help you realize that an issue exists.
• Decide to solve the problem . Make a conscious decision to solve the issue at hand. Commit to yourself that you will go through the steps necessary to find a solution.
• Seek to fully understand the issue . Analyze the problem you face, looking at it from all sides. If your problem is relationship-related, for instance, ask yourself how the other person may be interpreting the issue. You might also consider how your actions might be contributing to the situation.
• Research potential options . Using the problem-solving strategies mentioned, research potential solutions. Make a list of options, then consider each one individually. What are some pros and cons of taking the available routes? What would you need to do to make them happen?
• Take action . Select the best solution possible and take action. Action is one of the steps required for change . So, go through the motions needed to resolve the issue.
• Try another option, if needed . If the solution you chose didn't work, don't give up. Either go through the problem-solving process again or simply try another option.

You can find a way to solve your problems as long as you keep working toward this goal—even if the best solution is simply to let go because no other good solution exists.

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By Kendra Cherry, MSEd Kendra Cherry, MS, is a psychosocial rehabilitation specialist, psychology educator, and author of the "Everything Psychology Book."

Problem solving and decision making

 "This has shown increasing demand as employers are acknowledging that graduates are expected to think for themselves and perhaps find different ways of working and thinking creatively"

Carl Gilleard, Former Chief Executive, Association of Graduate Recruiters

How to be an effective problem solver

We all use our initiative and creativity to solve problems every day. For example, you might have to change your route due to traffic congestion, solve an IT issue, or work out what to make for dinner with the ingredients left in the fridge. The challenges you may face in your professional career are likely to be a bit more complicated than these examples, however the skills and processes you use to come up with solutions are largely the same, as they rely on your ability to analyse a situation and decide on a course of action.

Problem solving and decision making  are likely to be essential aspects of a graduate-level job, so it is important to show a recruiter that you have the personal resilience and the right skills to see problems as challenges, make the right choices and learn and develop from your experiences.

You are likely to have to apply techniques of problem solving on a daily basis in a range of working situations, for example:

• using your degree subject knowledge to resolve technical or practical issues
• diagnosing and rectifying obstacles relating to processes or systems
• thinking of new or different ways of doing your job
• dealing with emergencies involving systems or people.

You may have to use a logical, methodical approach in some circumstances, or be prepared to use creativity or lateral thinking in others; you will need to be able to draw on your academic or subject knowledge to identify solutions of a practical or technical nature; you will need to use other skills such as communication and planning and organising to influence change.

Whatever issue you are faced with, some steps are fundamental:

I - Identify the problem

D - Define the problem

E - Examine alternatives

A - Act on a plan

L - Look at the consequences

This is the  IDEAL  model of problem-solving. There are other, more complex methods, but the steps are broadly similar.

What do recruiters want?

Problem solving, decision making and initiative can be asked for in a variety of ways. Many adverts will simply ask for candidates who can “ take the initiative to get a job done " or " have the ability to resolve problems "; others, however, may not make it so obvious. Phrases such as those below also indicate that initiative and problem solving are key requirements of the role:

• “We need people who can set goals and surpass them; people who have ideas, flexibility, imagination and resilience…”
• “Take responsibility and like to use their initiative; Have the confidence and the credibility to challenge and come up with new ways of working…”
•  “An enquiring mind and the ability to understand and solve complex challenges are necessary…”
• “We are looking for fresh, innovative minds and creative spirits...”
• “Ambitious graduates who can respond with pace and energy to every issue they face…”

These quotations are all taken from graduate job adverts and they are all asking for more or less the same two things:

• The ability to use your own initiative, to think for yourself, to be creative and pro-active.
• The ability to resolve problems, to think logically or laterally, to use ingenuity to overcome difficulties and to research and implement solutions.

These are important skills which recruiters look for. They want staff who will take the personal responsibility to make sure targets are met; who can see that there might be a better way of doing something and are prepared to research and implement change; who react positively, not negatively, when things go wrong.

Gaining and developing problem solving and decision making skills

Below are some examples of how you may already have gained decision making and problem solving skills at the University of Bradford and beyond. There may also be some useful suggestions here if you are looking to develop your skills further:

• dissertation - researching and analysing a specific issue and providing recommendations
• group projects  - overcoming challenges e.g. a change of circumstances, technical problems, etc.
• part-time jobs, internships and work experience*  - dealing with challenging customers, identifying and solving issues in your role, completing projects, etc.
• organising events - deciding on date, venue, marketing; solving logistical issues, etc.
• travel -  organising trips, planning and reacting to change, etc.
• enter competitions - to   provide a solution to a challenge.

*Using your initiative in a work context is about spotting opportunities to develop the business. This can, for example, include learning new technology to make your work more productive and efficient; being willing to look at processes and systems to see if there are things you can suggest to improve workflow; recognising opportunities that will improve the business and being prepared to follow them through; volunteering to learn new tasks so you can be adaptable and help out in emergencies or at peak periods.

How can you prove to a recruiter that you have these skills?

Think of examples of when you have used these skills. See the above section for suggestions, and then to provide a full and satisfying answer you can structure it using the STAR technique:

• S - Define the Situation
• T - Identify the Task
• A - Describe your Action
• R - Explain the Result

Here is a detailed example:

Define the SITUATION:  (where were you? what was your role? what was the context?) 

I work shifts at a call centre which manages orders for several online companies. One evening I had to deal with a very irate customer who had been promised a delivery a week ago and had still not received it. 

Identify the TASK:  (what was the problem? what was your aim? what had to be achieved?) 

Whilst listening to the customer, I accessed his record. This was no help in solving the problem as it simply reiterated what the customer was saying and did not give any more up-to-date information. I promised the customer that I would do my best to help but I would need to do some research and phone him back. He reluctantly accepted this.

Describe the ACTION you took:  (be clear about what you did) 

I could not check with the office as they were closed and my supervisor had already left for the evening, so I searched for the same product code to see if I could find updated information on other records.  This confirmed that the product was now back in stock and that several deliveries were actually scheduled for the following day. There seemed to have been an error which had resulted in my customer’s record not being updated, so I reserved the item for this customer and then persuaded the Logistics Manager to include him in the schedule.

Highlight the RESULT you achieved:  (what was the outcome? Be specific and, if possible, quantify the benefits)

My shift was over but I telephoned him back and explained what I had done and hoped very much that it was convenient for him to accept delivery the following day. He was delighted with the initiative I had taken and thanked me. Two days later my supervisor told me that I had received excellent feedback from a customer and I would be nominated for Employee of the Month.

To use the STAR technique effectively, remember:

• You are the STAR of the story, so focus on your own actions.
• Tell a story and capture the interest of the reader. Include relevant details but don’t waffle.
• Move from the situation, to the task, to your actions, and finally to the result with a consistent, conversational approach.

A detailed statement like this can be used in online applications, or used at interview. It is also easy to adapt it for use in your CV, for example:

• My work experience at the call centre required me to develop good problem solving skills when dealing with difficult customers with stock and delivery issues.
• I have good customer service skills developed through resolving problems relating to stock and deliveries whilst working for a call centre.

Adapting your examples

The example above, for instance, could easily be altered to prove your  communication skills , show that you can  adapt and be flexible , and that you have great  customer service skills .  It is worthwhile spending time writing statements like this about all your experiences and then adapting them to match each recruiters’ specific requirements.

Related key words / skills

•  Leadership
• Analytical and logical thinking
• Recommending
• Creative thinking
•  Adaptability and flexibility
• Time management
• Researching
• Applying knowledge

Practical help

We run regular  workshops on employability skills , and you can book an appointment with one of our advisers to discuss how to improve your employability in relation to your career choices.

Further reading

More articles:

• Problem Solving defined on Skills You Need
• Mind Tools on Problem Solving Techniques
• Problem solving: the mark of an independent employee (via TARGETjobs)
• Problem Solving and Decision Making processes via businessballs.com

You can also check out our Assessement Centre and Psychometric Tests pages for details of the problem-solving exercises recruiters use in their selection processes.

Other relevant websites with general information on skills are:

• Prospects  – features articles on skills and how to evidence them.
• TARGETjobs  – has details on essential skills and competencies.

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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.

Access your free e-book today.

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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31 examples of problem solving performance review phrases

Jump to section

You're doing great

You should think of improving

Tips to improve

Use these practical examples of phrases, sample comments, and templates for your performance review , 360-degree feedback survey, or manager appraisal.

The following examples not only relate to problem-solving but also conflict management , effective solutions, selecting the best alternatives, decision making , problem identification, analyzing effectively, and generally becoming an effective problem-solving strategist. Start using effective performance review questions to help better guide your workforce's development. 

Problem solving appraisal comments: you're doing great

• You always maintain an effective dialogue with clients when they have technical problems. Being clear and articulate makes sure our customers' faults are attended to promptly.
• You constantly make sure to look beyond the obvious you never stop at the first answer. You’re really good at exploring alternatives. Well done!
• Keeping the supervisors and managers informed of status changes and requests is important. You’re really good at communicating the changes to the projects at all times. Keep it up!
• You stay cool and collected even when things aren’t going according to plan or up in the air. This is a great trait to possess. Well done!
• You’re excellent at giving an honest and logical analysis. Keep it up! Effectively diagnosing complex problems and reaching sustainable solutions is one of your strong points.
• Your ability to ability to make complex systems into simple ones is truly a unique skill to possess. Well done!
• You often identify practical solutions to every roadblock. You’re a real asset to the team! Great job.
• You always listen actively and attentively to make sure you understand what the exact problem is and you come up with solutions in an effective manner.
• You have an amazing ability to clearly explain options and solutions effectively and efficiently. Well done!
• When driving projects, you can shift to other areas comfortably and easily. making sure the project runs smoothly. Great job!

Problem solving performance review phrases: you should think of improving

• You always seem too overwhelmed when faced with multiple problems. Try to think of ways to make problems more manageable so that they can be solved in a timely and effective manner.
• Avoiding conflicts constantly with people is not a good idea as you will only build up personal frustration and nothing will be done to remedy the situation. Try to face people when there are problems and rectify problems when they occur.
• Don’t allow demanding customers to rattle your cage too much. If they become too demanding, take a step back, regulate your emotions , and try to make use of online support tools to help you rectify problems these tools can help a lot!
• It’s necessary that you learn from your past mistakes . You cannot keep making the same mistakes , as this is not beneficial to the company.
• You tend to ask the same questions over and over again. Try to listen more attentively or take notes when colleagues are answering!
• Providing multiple solutions in an indirect and creative approach will allow you to be more effective at problem-solving . if you struggle with this typically through viewing the problem in a new and unusual light.
• You fail to provide staff with the appropriate amount of structure and direction. They must know the direction you wish them to go in to achieve their goals .
• You need to be able to recognize repetitive trends to solve problems promptly.
• You tend to have problems troubleshooting even the most basic of questions. As a problem solver and customer support person, it’s imperative that you can answer these questions easily.
• Read through your training manual and make sure you fully understand it before attempting questions again.

Performance review tips to improve problem solving

• Try to complain less about problems and come up with solutions to the problems more often. Complaining is not beneficial to progression and innovation.
• As a problem solver, it’s important to be able to handle multiple priorities under short deadlines.
• You need to be able to effectively distinguish between the cause and the symptoms of problems to solve them in an efficient and timely manner.
• Try to anticipate problems in advance before they become major roadblocks down the road.
• Try to view obstacles as opportunities to learn and thrive at the challenge of solving the problem.
• Remember to prioritize problems according to their degree of urgency. It's important that you spend the majority of your time on urgent tasks over menial ones.
• When putting plans into place, stick to them and make sure they are completed.
• When solving problems, try to allocate appropriate levels of resources when undertaking new projects. It is important to become as efficient and as effective as possible.
• Try to learn to pace yourself when solving problems to avoid burnout . You’re a great asset to the team and we cannot afford to lose at this point.
• Meeting regularly with your staff to review results is vital to the problem-solving process.
• Staff that has regular check-ins understand what it is that is required of them, what they are currently achieving, and areas they may need to improve. Try to hold one-on-one meetings every week.

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Madeline Miles

Madeline is a writer, communicator, and storyteller who is passionate about using words to help drive positive change. She holds a bachelor's in English Creative Writing and Communication Studies and lives in Denver, Colorado. In her spare time, she's usually somewhere outside (preferably in the mountains) — and enjoys poetry and fiction.

How a performance review template improves the feedback process

25 performance review questions (and how to use them), agile performance management: how to improve an agile team, 5 tactics for managing managers effectively — and why it matters, how stanford executive education embraces vulnerability as a form of resilience, managers have a strong effect on team performance, for better or worse, awakening human potential: developing people and driving performance in the new world of work, uk leaders develop future-minded skills with betterup, how to manage poor performance in 5 steps, similar articles, 10 problem-solving strategies to turn challenges on their head, teamwork skills self-appraisal comments: 40 example phrases, your complete guide to self-assessments (with examples), 30 communication feedback examples, 30 customer service review examples to develop your team, 15 tips for your end-of-year reviews, 37 innovation and creativity appraisal comments, 8 creative solutions to your most challenging problems, 10 performance review tips to drastically move the needle, stay connected with betterup, get our newsletter, event invites, plus product insights and research..

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Table of Contents

What is a pareto chart, pareto principle explained, when to use a pareto chart, steps of pareto analysis, pareto chart procedure: how to create a pareto chart, advantages of pareto analysis, disadvantages of pareto analysis, example of pareto analysis, understanding pareto chart: analysis and interpretation.

With the ability to visualize and prioritize issues based on how frequent or serious they are, a Pareto chart is an amazing tool for anyone involved in problem-solving or decision-making processes . It can be particularly beneficial for managers, analysts, engineers, and anyone else within various domains such as business management, quality control, project management, or process improvement.

Deriving from the Pareto Principle, i.e., 20% of the causes give 80% of the impact, this chart represents the data in descending order by emphasis on the most significant factors. The power of the Pareto Principle lies in the fact that because of the clear graphical representation, individuals can concentrate mostly on really important issues. 

A Pareto chart is a composite chart that uses bar graphs to convey the major factors causing a problem or issue. It mixes up the bar graph and line chart, with the bars showing individual category factors separately and the line showing the number of parts out of the total.

The idea behind the Pareto chart is rooted in the Pareto Principle, the 80*20 rule. The Pareto chart starts with data collection and decomposition, which refers to the major causes of the problem. Now, factors are placed into the scale of the following ranking system: 

• The higher the position is, the more essential the factor is. 

As for the Rule of Plurality, the one leading in the rating system becomes the first factor. The frequency for each group is illustrated in a bar graph and a line graph.

Pareto charts enable decision-makers to identify the most crucial problems or improvement opportunities quickly. This pattern allows them to prioritize different programs or projects and allocate resources effectively, thereby producing more targeted and effectively implemented solutions.

The concept of the Pareto Principle is such that according to it, the effects of 80% of the results are caused by 20% of their causes. The 'Pareto 80/20 Principle' was named after Vilfredo Pareto, an Italian economist, who noticed that almost 80% of the earth was enjoyed by 20% of the population in Italy. This principle becomes equally relevant to many observed facts at different edges of science.

In business or economic matters, the Pareto Principle highlights that a small percentage of input or efforts can frequently yield a large proportion of results or outcomes. For example, it could help the management understand that 80% of a company will bring in 20% of the profits or that 80% of the problems are caused by 20% of the causes.

The rule also works outside the economy; for example, in time management, it helps us prioritize activities by demonstrating that 80% of productive efforts are devoted to only 20% of the tasks done consistently. 

While the exact percentages may vary in different contexts, the main idea remains consistent: most often, a minority of inputs or, sometimes, only many forces are forcing the majority of results or outcomes.

A Pareto chart is best used when you need to:

• Identify Priorities: A Pareto chart is useful when many factors are contributing to the final result. Having this tool from day one will equip you with knowledge of what factors hold the highest priority and where resources should be applied. 
• Communicate Effectively: Pareto charts offer a graphical way of displaying data , making it easier to tell the management what was found. 
• Track Progress: Providing continuous updates to the chart with new data, you will have a chance to evaluate whether the activities targeting the most potent factors are giving the desirable outcomes and to adjust strategies if needed.
• Problem-Solving: Very complex problems require dissection into simpler parts, which is where Pareto charts are important. By recognizing the main drivers of the problem, it will be possible to plan and develop plans that target the hidden causes.

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The technique of Pareto analysis is applied to determine what leads to a certain situation and which issue needs to be focused on the most. The rule of Pareto is also known as the 80/20 rule, indicating that the majority of an effect is obtained from the minority of its causes. Here are the steps of Pareto analysis:

Define the Problem

Start by defining the problem you are trying to solve. It might be related to customer complaints, production process inefficiencies, or equipment malfunctions. Ensure that the selected issue is tangible enough and can be measured properly, thereby facilitating the process of collecting and analyzing data.

Collect Data

Gather information about the problem you knew about from the existing sources. This might include customer feedback, reports, process logs, or other data sources that provide insights into the issue. Ensure that the data is accurate , complete, and representative of your problem.

Categorize the Data

Grouping or categorizing the data based on the different factors that impact the problem could be encouraged. For example, when working with customer complaints, classify them by type of complaint to determine which issue is the most important, such as poor product quality, delayed delivery, or customer service problems.

Calculate Frequencies

Figure out the end frequency for every category by the number of factors in the data set. This step enables us to define the dimensional nature of every problem factor.

Calculate Cumulative Frequencies

Sum up the table entries where each category represents the most significant to the least significant factor for the cumulative frequency. This part helps you identify the extent of the whole problem, which each factor is monitoring.

Calculate Percentages

Calculate the percentages of each category's total problem by dividing each category's respective frequencies by their total frequency and multiplying by 100. This action eliminates biases and simplifies the comparison accuracy of each attribute.

Create a Pareto Chart

Create a Pareto chart using the categories and the amounts or percentages next to them. Plot the categories on the x-axis (horizontal line) and their frequency or percentages (vertical line). Classify the categories by the order in which they are displayed in line with their occurrence or size.

Identify the Important Ones

Know what categories of the total problem to be explained account for the biggest amount of the problem. These are the “vital few” coupled with the most significant factors. Like the Pareto Principle, your goal is to focus on the top 20 percent of the problem for about 80 percent of what was mentioned.

Analyze Root Causes

After the important step, when you’ve found the key problems, discover how they are deeply interconnected with the root cause. Conduct root cause analysis to uncover underlying issues or systemic problems that need to be addressed to mitigate the problem effectively.

Develop Action Plans

Based on the outcome of your analysis , design action plans to address the Pareto principle factors. By allocating resources and prioritizing interventions that address these factors, much more can be accomplished in delivering results.

Implement Solutions

Implement the identified actions to support the few key factors. Track the progress and take corrective measures to avoid duplication of efforts. In this case, your solutions should effectively solve the problem.

Monitor and Evaluate

Continuously monitor and assess the effectiveness of the measures implemented and react in case of problems or issues. Apply the data-driven approach to assess performance and to determine if the problem is being addressed satisfactorily. Make the needed adjustments or additions to the mechanism to complete the targets.

• To conduct a Pareto analysis, acquire data connected to the problem from various sources and put them into classes known as factors of the problem. Work out the frequency of the category appearance and get the cumulative frequencies. 
• Next, determine the percentage of each category for the problem as a whole. The highest percentage to the lowest are plotted on the x-axis, while their corresponding frequencies or percentages are shown on the y-axis. 
• Label the right vertical axis with the cumulative percentages (Note that the cumulative total should equal 100%).
• Draw in the bars for each item.
• Next, draw a line graph of the cumulative percentages. Ensure that the first point on the line graph lines up with the top of the first bar.

With the chart prepared, the final step is analysis. Identify the items that appear to account for most of the difficulty. 

The importance of Pareto analysis includes the following aspects: 

• Pareto analysis helps identify the important factors or issues that contribute the most to a problem. By focusing on the vital few factors, organizations can allocate resources and efforts more efficiently, targeting areas where they must address the issues most importantly.
• Pareto charts provide a clear visual representation of data, making it easier to understand complex relationships and prioritize actions. 
• Pareto analysis is based on empirical data, enabling data-driven decision-making processes. 
• Pareto analysis helps in problem-solving . Instead of addressing every aspect of a problem equally, organizations can prioritize the root causes or key drivers.
• Pareto analysis can be used as part of a continuous improvement process to monitor progress. 
• It provides a common language for communicating findings and priorities to stakeholders.

While Pareto analysis offers several benefits, it also has some disadvantages: 

• Pareto analysis depends on selecting appropriate data categories to represent the problem. The nature of categorization can introduce bias and influence the results.
• Pareto analysis focuses on quantitative data, like counts or frequencies of occurrences. This numerical data emphasis may overlook the problem's qualitative aspects, such as root causes, context, or underlying dynamics. 
• Static representation of problems at a specific point in time, but they do not capture changes or trends over time. Continuous monitoring and updating of Pareto charts are necessary to ensure their relevance and effectiveness.
• Pareto analysis assumes that factors contributing to the problem are independent. However, in reality, factors may be interconnected.
• Pareto analysis focuses on identifying the vital few factors that contribute the most to the problem, which leads to neglecting minority factors that may still have significant implications. 

An example of Pareto analysis includes a case where a manufacturing company is experiencing product quality issues. The company decides to conduct a Pareto analysis to identify the most significant defects contributing to the overall quality problems. 

• Define the Problem: The company defines the problem as quality issues affecting its products, leading to customer complaints and decreased satisfaction.
• Collect Data: Data is collected from various sources, including defect reports, customer complaints, and quality control records. The data includes information on the types and frequency of defects observed in the products.
• Categorize the Data: The collected data is categorized into different types of defects, such as manufacturing defects, design flaws, material issues, and packaging errors.
• Calculate Frequencies: The frequency of occurrence for each defect type is calculated by counting the number of occurrences in the data set. For example, the data might show that there were 50 instances of manufacturing defects, 30 instances of design flaws, 20 instances of material issues, and 10 instances of packaging errors.
• Create a Pareto Chart: A Pareto chart is constructed, with the defect types plotted on the x-axis and their frequencies on the y-axis. The defect types are arranged in descending order of frequency, with the most common defect type appearing first.
• Identify the Vital Few: The Pareto chart reveals that manufacturing defects account for most quality issues, representing 50% of the total defects. Design flaws and material issues account for 30% and 20% of the defects, respectively, while packaging errors have a minimal impact.
• Analyze Root Causes: Further analysis is conducted to understand the root causes behind the manufacturing defects. This may involve examining production processes, equipment performance, training procedures, and quality control measures to identify areas for improvement.
• Develop Action Plans: Based on the analysis, action plans address the root causes of manufacturing defects. This might include implementing process improvements, enhancing quality control measures, providing additional training to staff, and refining product designs.
• Implement Solutions: The action plans are implemented, and changes are made to production processes, quality control protocols, and other relevant areas to reduce the occurrence of manufacturing defects.
• Monitor and Evaluate: Progress is monitored closely to assess the effectiveness of the implemented solutions. Key performance indicators, such as defect rates, customer satisfaction scores, and product returns, are tracked to measure improvement and identify areas needing further attention.

Pareto charts are invaluable tools for decision-making, offering a systematic approach to identifying and addressing key issues. Organizations can achieve maximum impact and drive continuous improvement by focusing efforts on the vital few factors. Simplilearn offers AI and machine learning courses that empower professionals to use advanced technologies for business transformation. Explore Simplilearn's courses on Generative AI for business transformation and Applied AI to gain the skills needed to thrive in today's data-driven world.

1. What are the components of a Pareto Chart?

Components of a Pareto Chart include bars representing categories and a line graph showing cumulative percentages.

2. What does the Pareto Diagram include?

The Pareto Diagram includes categories of factors contributing to a problem and their respective frequencies or percentages.

3. What is the 80/20 rule in Pareto charts?

The 80/20 rule in Pareto charts states that roughly 80% of effects come from 20% of causes.

4. Can Pareto charts be used for all types of data?

Pareto charts can be used for most data types, including categories, frequencies, or percentages.

5. What are the limitations of using Pareto charts?

Limitations of Pareto charts include subjectivity in data selection, overemphasis on quantitative data, and neglect of minority factors.

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• PMP, PMI, PMBOK, CAPM, PgMP, PfMP, ACP, PBA, RMP, SP, and OPM3 are registered marks of the Project Management Institute, Inc.