Problem Definition: The Crowning Point of Problem Solving and Innovation

It’s a fact. Problem solving is a constant responsibility of all entrepreneurs and business owners in general. Your business could have been organized to solve a problem and you have certainly found the need to continuously solve problems all along the away. The fast pace of environmental and industry changes leads to new problems continuously. Working with people, because of our various perspectives, leads to more problems. The changing nature and realities of our customers also lead to problems. There’s no way we can escape the need to efficiently and effectively solve these problems.

If we carefully define the problem before we attempt to solve it, the outcomes are often better for business growth or innovation. Going ahead with a minimal understanding of the issues involved could be costly.

“A well-defined problem often contains its own solution within it, and that solution is usually quite obvious and straightforward. By defining problems properly, you make them easier to solve, which means saving time, money and resources.” Michael Cooper

If problems are'nt fully defined you may miss opportunities for impactful innovation, waste time and other resources, and move away from your Vision, Values or Management Strategy. Also, the goals or expected results may not be as clear and useful as they should be.

Hidetoshi Shibata contibuted a definitive guide to problem definition. It is an invaluable article for business builders. Take time to read it. Several steps are suggested.

A first step when defining problems is to agree on the purpose of solving the problem. Why is it important to tackle this problem? This is an easy question ask, but everybody may not see the same purpose because of different perceptions, understanding and beliefs. Therefore, the first thing to do is to agree on the purpose of solving the problem. For example, the issue might be, one of our Systems is too slow. Why should we solve this problem? Does it effect customers or does it effect profits or both?

A second step is to confirm the purpose and make it as clear as possible. According to Hidetoshi Shibata in”Problem Solving: Definition, Terminology and Pattern”, “Purpose is what we want to do or what we want to be. Purpose is an easy term to understand. But problem solvers frequently forget to confirm purpose at the first step of problem solving. Without clear purposes, we cannot think about problems.” Additionally, you want be sure solving the problem fits your Values/Principles in every way.

A third step is to carefully describe the circumstances. 

“I’ve often contended that the best leaders are the best problem solvers. They have the patience to step back and see the problem at-hand through broadened observation; circular vision. They see around, beneath and beyond the problem itself. They see well-beyond the obvious. The most effective leaders approach problems through a lens of opportunity” Glenn Llopis

 In other words. You must consider the surrounding conditions such as the effect of various Systems on the problem or the skill level of the team members for instance. What external elements could be impacting the problem? Define the real circumstances and environment.

A fourth step is to identify possible causes of the problem you’re defining. This adds to the efficiency of the process by providing elements of the problem that can be attacked in increments. You'll often discover many causes. Some will deserve your attention and some won’t. Separating out as many causes as possible will get you closer to defining your problem.

A fifth step is to apply “systems thinking” to help define your problem.

According to Shibata, systems thinking is a scientific approach to problem solving.

 1. Clearly describe the “Ideal” purpose.

 2. Identify the elements going into the process or System.

 3. Identify the results of the elements coming out of the process or System.

 4. Isolate the possible causes existing inside the process or System.

 5. Isolate the possible causes outside of the process or System ( sometimes these can’t be solved or impacted such as environmental elements)

 6. Define the "Ideal" results.

Related: "How Business Systems Can Affect Your Personal and Financial Freedom"

A sixth step is to consider using the Toyota system of 5 WHYS.

The employees at Toyota are asked to think ‘why’ 5 times. They are taught to get the answer to ‘why’ the first time a cause is evident, then ask ‘why’ they got that particular answer. This process continues until the ‘whys’ have been examined after each resulting answer down to 5 ‘whys’. The definition of the problem as well as the solution to the problem becomes clearer.

A great example is found in “The 5 Whys Process We Use to Understand the Root of Any Problem.” by Courtney Seiter of Buffer

a. “Why did the robot stop?

    The circuit has overloaded, causing a fuse to blow.

b. “Why is the circuit overloaded?’

    There was insufficient lubrication on the bearings, so they locked up.

c. “Why was there insufficient lubrication on the bearings?”

   The oil pump on the robot is not circulating sufficient oil.

d. “Why is the pump not circulating sufficient oil?’

   The pump intake is clogged with metal shavings.

e. “Why is the intake clogged with metal shavings?”

   Because there is no filter on the pump.

It took 5 'whys' to get to the root of the problem. They could take it further by creating an innovation for eliminating the metal shavings or create a different way to filter! Now, do you see how this works. It's an amazing process! A great way to get to innovations.

You can see how much time and effort has been saved by taking time to define the problem. Your problem solving efforts as well as your innovations can become realized more efficiently and effectively when you put in a little time upfront. Try it to see how it works!

Additional resources: "20 Directives for Small Business Success: Do or Die" and The GeniusCore Business Building Podcast