- Adaptive Leadership
- Authentic Leadership Style
- Business Change Strategies
- Business-Strategy Principles
- Capacity Building
- Cascading Strategy
- Change Management
- Coaching Framework
- Coaching in the Workplace
- Collaborative Coaching
- Competency Assessment
- Conflict Resolution in the Workplace
- Core Competence
- Corporate Strategic Planning
- Crisis Leadership
- Critical Success Factors
- DEI in the Workplace
- Directive Leader
- E-Learning
- Empathetic Leadership Definition
- Horizontal Leadership
- Inclusive Leadership
- Innovation Strategy
- Leadership Competency Framework
- Management Succession Planning
- Operational Excellence
- Organizational Alignment
- Participative Leadership Style
- Performance Deficiency Coaching
- Persuasive Leadership Style
- Problem Solving in Business
- Servant Leadership Style
- Strategic Agility
- Strategic Alignment
- Strategic Audit
- Strategic Framework
- Strategic Initiative (Examples Included)
- Strategic Management
- Strategic Mindset Competency
- Strategic Thinking
- Strategy Committee
- Strategy Issues
- Strategy Maps
- Supportive Leadership Style: Definition and Qualities
- Team Building Interventions
- Team Environment
- Team Norms
- Team Performance Assessment
- Teamwork Atmosphere
- Total Employee Involvement
- Transformational Leadership
- Visionary Leadership Style

What Is Problem Solving in Business?
Problem-solving in business is defined as implementing processes that reduce or remove obstacles that are preventing you or others from accomplishing operational and strategic business goals.
In business, a problem is a situation that creates a gap between the desired and actual outcomes. In addition, a true problem typically does not have an immediately obvious resolution.
Business problem-solving works best when it is approached through a consistent system in which individuals:
- Identify and define the problem
- Prioritize the problem based on size, potential impact, and urgency
- Complete a root-cause analysis
- Develop a variety of possible solutions
- Evaluate possible solutions and decide which is most effective
- Plan and implement the solution
Why Problem Solving Is Important in Business
Understanding the importance of problem-solving skills in the workplace will help you develop as a leader. Problem-solving skills will help you resolve critical issues and conflicts that you come across. Problem-solving is a valued skill in the workplace because it allows you to:
- Apply a standard problem-solving system to all challenges
- Find the root causes of problems
- Quickly deal with short-term business interruptions
- Form plans to deal with long-term problems and improve the organization
- See challenges as opportunities
- Keep your cool during challenges
How to Solve Business Problems Effectively
There are many different problem-solving skills, but most can be broken into general steps. Here is a four-step method for business problem solving:
1) Identify the Details of the Problem: Gather enough information to accurately define the problem. This can include data on procedures being used, employee actions, relevant workplace rules, and so on. Write down the specific outcome that is needed, but don’t assume what the solution should be.
2) Creatively Brainstorm Solutions: Alone or with a team, state every solution you can think of. You’ll often need to write them down. To get more solutions, brainstorm with the employees who have the greatest knowledge of the issue.
3) Evaluate Solutions and Make a Decision: Compare and contrast alternative solutions based on the feasibility of each one, including the resources needed to implement it and the return on investment of each one. Finally, make a firm decision on one solution that clearly addresses the root cause of the problem.
4) Take Action: Write up a detailed plan for implementing the solution, get the necessary approvals, and put it into action.
What Are Problem-Solving Skills?
Problem-solving skills are specific procedures that can be used to complete one or more of the four general steps of problem-solving (discussed above). Here are five important examples:
Using Emotional Intelligence: You’ll solve problems more calmly when you learn to recognize your own emotional patterns and to empathize with and guide the emotions of others. Avoid knee-jerk responses and making assumptions.
Researching Problems: An effective solution requires an accurate description of the problem. Define simple problems using quick research methods such as asking, “What? Where? When? and How much?.” Difficult problems require more in-depth research, such as data exploration, surveys, and interviews.
Creative Brainstorming: When brainstorming with a group, encourage idea creation by listening attentively to everyone, and recognizing everyone’s unique contributions.
Logical Reasoning: Develop standard logical steps for analyzing possible solutions to problems. Study and apply ideas about logical fallacies, deductive reasoning, and other areas of analytical thought.
Decisiveness: Use an agreed-upon system for choosing a solution, which can include assigning pros and cons to solutions, identifying mandatory results, getting feedback about solutions, choosing the decision-maker(s), and finishing or repeating the process.
How to Improve Problem-Solving Skills
Learning how to solve business problems takes time and effort. Though some people appear to have been born with superior problem-solving skills, great problem solvers usually have practiced and refined their abilities. You can develop high-level skills for solving problems too, through the following methods:
Ask and Listen: Don’t expect to solve every problem alone. Ask for advice, and listen to it carefully.
Practice Curiosity: Any time you’re involved in solving a problem, practice researching and defining the problem just a little longer than you would naturally.
Break Down Problems: Whenever possible, break large problems into their smallest units. Then, search for solutions to one unit at a time.
Don’t Label Yourself Negatively: Don’t allow a problem to mean something negative about you personally. Separate yourself from it. Look at it objectively and be part of the solution.