The Role of Problem-Solving in Business

🎯 Why Most Business Problems Remain Unsolved (And How to Fix That) Last week, I had the privilege of facilitating a Problem Solving & Business Acumen workshop for our teams at L'Oréal Indonesia. 💡 The Problem We All Face (But Rarely Talk About) Here's an uncomfortable truth: we're wired to jump to solutions. In business, this looks like: ✔️ Launching promotions without understanding why sales declined ✔️ Hiring more people without diagnosing process inefficiencies ✔️ Copying competitor tactics without validating if they fit our context The cost? Wasted resources, frustrated teams, and recurring problems that never truly go away. According to the World Economic Forum's Future of Jobs Report 2023, analytical and critical thinking are the #1 and #2 most important skills for workers. Yet, most of us were never formally taught how to think critically or solve problems systematically. 🛠️ The Problem-Solving Process: A Step-by-Step Guide Step 1: Define the Problem (Don't Jump to Judgment!) 📝 Craft a Problem Statement with 6 components: "How can [responsible party] improve/reduce [reality] to meet [expectation] within [timeline] without [anti-goals], in order to fulfill [reason]?" Example: "How can the product team launch a new product on time in Q4 2024 without sacrificing key processes, in order to meet the sales target?" Step 2: Find Alternatives (Issue Tree + MECE) Once the problem is clear, break it down using an Issue Tree. For instance, if mascara sales dropped -14% YoY: 📦 Placement → Gondola compliance, visibility, signage 🎁 Promotion → BOGO mechanics, POS materials 💰 Price → Elasticity, perceived value 🎨 Product Claims → Content freshness, reviews 🔥 Competition → Share of voice, endcap presence ✅ Ensure hypotheses are MECE (Mutually Exclusive, Collectively Exhaustive)—no overlaps, no gaps. Step 3: Test Your Hypotheses Don't fall in love with your first idea. Run quick tests: 📊 For a skincare serum declining in pharmacies, we tested: ✔️ Hypothesis A: Reduced pharmacist advocacy is the issue → Micro-detailing pilot in 10 stores ✔️ Hypothesis B: Cold chain OOS drives lost sales → Warehouse SOP audit + temperature logs ✔️ Hypothesis C: Execution gaps suppress promo ROI → Endcap compliance audit Each hypothesis had clear KPIs and timelines—no guessing, just data. Step 4: Make the Decision (Impact vs. Effort Matrix) Not all solutions are equal. Prioritize: 🟩 Quick wins—do this! 🟦 Strategic bets 🟨 Fill-ins 🟥 Avoid Focus on low effort, high impact moves first. Build momentum, then tackle the big bets. 🚨 What Happens When We Skip These Steps? A mascara brand saw sales drop -14% YoY. The reaction? "Let's run a BOGO promo!" The result? Sales stayed flat. Why? Because the real issues were: ❌ Poor gondola compliance (only 68% correct facings) ❌ Weak influencer share of voice ❌ Competitor secured prime endcap space The lesson: Solutions applied to the wrong problem = wasted budget and missed targets.

𝐀 𝐬𝐞𝐫𝐯𝐢𝐜𝐞 𝐝𝐢𝐫𝐞𝐜𝐭𝐨𝐫'𝐬 𝐝𝐞𝐥𝐢𝐯𝐞𝐫𝐲 𝐭𝐫𝐮𝐜𝐤𝐬 𝐰𝐞𝐫𝐞 𝐬𝐭𝐮𝐜𝐤 𝐢𝐧 𝐬𝐧𝐨𝐰. 𝐇𝐢𝐬 𝐜𝐮𝐬𝐭𝐨𝐦𝐞𝐫 𝐰𝐚𝐬 𝐥𝐨𝐬𝐢𝐧𝐠 𝐦𝐨𝐧𝐞𝐲 𝐛𝐲 𝐭𝐡𝐞 𝐦𝐢𝐧𝐮𝐭𝐞. 𝐒𝐨 𝐡𝐞 𝐝𝐞𝐥𝐢𝐯𝐞𝐫𝐞𝐝 𝐭𝐡𝐞 𝐩𝐚𝐫𝐭 𝐢𝐧 𝐚𝐧 𝐮𝐛𝐞𝐫 𝐟𝐨𝐫 $𝟓𝟓.𝟎𝟎! I'm talking to this service director last week about problem-solving. His Denver team managed delivery drivers. But when that Colorado snow hit? Company trucks became paperweights. Meanwhile, his customer's equipment is down. Every minute is money lost. Most managers would blame Mother Nature and call it a day. Not this guy. He realized something. Uber drivers in Colorado? They're running four-wheel-drives built for these exact conditions. So he calls his customer: "I can't get my delivery truck to you, but I can get your part there. You okay with an Uber delivery for $55?" Customer's response: "As long as it gets here, we don't care how." Problem solved.  (and a major contract saved) The best service managers think beyond the company playbook. They don't blame weather, equipment, or circumstances. They adapt. This separates problem-solvers from excuse-makers. Sometimes the difference between good and great is one creative solution.

Problem-Solving Is a Verb, Not a Noun In many organizations, problem-solving is treated like a concept — something you learn in a training or list on a resume. But real impact doesn’t come from knowing about problem-solving. It comes from doing it. Problem-solving is a verb. It lives in action — not in decks, dashboards, or laminated posters. Visual Management: Built to Solve, Not to Admire Tier boards, KPIs, hour-by-hour charts — they exist for one reason: To make problems visible, solvable, and preventable. They’re not there to color-code your way to green before the site director walks by. If your board looks perfect but no one’s solving anything, it’s decoration — not management. Tier Meetings: Where Problem-Solving Culture Starts Tier 1 meetings should solve 80% of problems — right at the source, by the people doing the work. If every issue escalates to Tier 3 or CI, you don’t have a tier system — you have a fire drill. Simple tools like 5-Why, checksheets, and immediate containment should be the norm, not the exception. Pareto to Prioritize. 8-Step to Solve. Here’s how high-performing teams operate: 1. Use Pareto to identify the top recurring issues. 2. Apply 8-Step Problem Solving only to those — not every squeaky wheel. Use 8-Step for: • Cross-functional or cross-shift issues • Customer complaints or audit findings • Safety or compliance risks • Anything that keeps coming back Don’t waste 8-Step rigor on one-off hiccups. Use your data to pick the right battles. Tier Meeting Power Questions To shift from reporting to solving, ask: • “What problem did we actually solve yesterday?” • “Is this a one-time issue or a trend?” • “What’s the real root cause — not just the symptom?” • “Who owns the countermeasure?” • “How will we know it worked?” • “If it comes back tomorrow, what’s our next move?” And the one that cuts through the noise: “Are we solving the problem — or just passing it along?” Making Tier Meetings Matter • Let the gap drive the conversation — not the metric. • Push ownership to the lowest responsible level. • Build visual triggers that demand action, not just updates. • If it hits Tier 3, require full 8-Step rigor. • Celebrate fixes, not just escalations. Final Thought Pareto helps you focus. 8-Step helps you go deep. Tier meetings give you rhythm. But none of it matters unless someone takes action. Because no board, no chart, no meeting has ever solved a problem on its own. Problem-solving is a verb. It starts at Tier 1. #continuousimprovement #lean #leadership

"No Problem" Is a Problem: The Key to Continuous Innovation A manager at Toyota delivers a quarterly update to an executive, enthusiastically presenting metrics trending up and to the right. They've shipped on time, and sales and customer satisfaction numbers are up. The executive listens patiently until the manager finishes, then asks, "So, where are the problems?" The manager, confused, explains that it was a great quarter with no problems to report. The executive shakes his head and says, "No problem is a problem." This famous Toyota anecdote, often retold by lean consultants, highlights a key tenet of continuous innovation: Problems, not solutions, create space for innovation. In many organizations, reporting problems is seen as a sign of weakness or failure. Managers often focus on presenting a rosy picture, hoping to impress their superiors. However, this mindset stifles growth and improvement. Toyota's approach is different. They actively seek out problems, viewing them as opportunities for learning and development. By identifying issues, they can address the root causes, implement countermeasures, and continuously improve their processes. This proactive problem-solving culture is a critical driver of Toyota's success. It empowers employees at all levels to identify and solve problems, fostering a sense of ownership and accountability. It also enables the organization to adapt quickly to changing market conditions and customer needs. So, the next time you find yourself in a meeting where everything seems perfect, ask yourself, "Where are the problems?" Embracing this mindset can help you unlock new opportunities for innovation and growth in your organization. Love the Problem, Not Your Solution.

"How would you approach this problem differently?" This question reveals the power of diverse thinking frameworks. Different "languages"—whether professional, technical, or cultural—shape how problems are solved: • Economic thinking provides frameworks for strategic decisions • Technical languages structure data analysis approaches • Cultural perspectives influence relationship building • Academic training shapes complexity management These aren't just communication tools. They're operating systems for the brain. Mental code-switching is the hidden advantage of diverse backgrounds in tech. When one approach fails, switching to another often reveals solutions: • From quantitative to qualitative • From analytical to intuitive • From global patterns to local insights The most innovative breakthroughs emerge at these intersections. The pattern appears consistently among exceptional leaders: • Engineers applying artistic principles to system design • Marketers using psychology to transform research • Product managers whose diverse backgrounds reshape how they build A unique combination of languages—whether technical, cultural, or domain-specific—isn't just interesting background. It's a strategic advantage in problem-solving. What unexpected "language" in your toolkit has helped you solve a problem others couldn't see?

Lean Community: Leading through Problem-Solving. In Section 3 of "Genba Ikigai Leading to Serve", Mark Forkun reframes problem-solving as both a leadership responsibility and a human-centered development practice. He argues that true Lean leadership relies on the discipline of going to the genba—the actual place where work happens—to understand reality, support people, and build capability. Forkun emphasizes that problems are not signs of failure but essential indicators of where learning, improvement, and engagement must occur. By treating each problem as a teaching moment, leaders strengthen both performance and trust. A core concept in this section is the integration of ikigai—purpose—with daily problem-solving. Leaders must help individuals connect their work to meaning, enabling them to see challenges not as burdens but as opportunities to contribute and grow. This orientation transforms problem-solving from a technical exercise into a relational, purpose-driven practice. Forkun introduces a structured yet human-centered approach: clarifying the problem, grasping the current condition, identifying root causes, and experimenting quickly through PDCA. But he stresses that tools alone are insufficient. What differentiates exceptional leaders is their coaching stance—asking questions instead of giving answers, fostering reflection, and encouraging ownership. By doing so, leaders activate the team’s collective intelligence and elevate confidence in decision-making. Another major theme is psychological safety. When people feel safe to surface issues, test ideas, and admit uncertainty, organizations accelerate learning. Leaders create this environment by modeling humility, listening deeply, and responding to problems with curiosity rather than blame. Ultimately, the section positions problem-solving as a leadership art: a disciplined practice grounded in respect, presence, and a commitment to developing people. When leaders serve as coaches at the genba, improvement becomes continuous, sustainable, and aligned with a shared sense of purpose. Questions: 💠 Is a leader’s primary responsibility to develop problem-solvers or to ensure problems get solved quickly? 💠 What does respect for people actually look like in the moment of a real problem—especially when the root cause implicates someone’s decision or behavior? 💠 If leaders must ‘go see’ to understand, what is the biggest barrier—time, ego, assumptions, or organizational culture—and how do we remove it? #ContinuousImprovement #CultureMatters

Your company doesn’t just deliver services. It solves problems. After 14+ years running Huemor, one thing has become pretty clear: Successful businesses don’t stop at just fulfilling contracts. They dig deeper, understand client challenges, and deliver meaningful solutions. Think about the relationships you could build if your focus shifted from just delivering to truly problem-solving. The typical companies are all about: → Completing projects → Fulfilling deliverables → Staying within scope But the ones that really stand out? They’re the ones that go beyond and solve the real issues their clients are facing. Here’s how we approach problem-solving at Huemor: → We start by listening to our clients' pain points before offering solutions. → We approach every project with empathy and genuine curiosity. → We don’t just execute; we advise, collaborate, and bring new ideas to the table. → We focus on delivering results that actually make an impact. → We build strategies that align with our clients’ long-term goals. → We keep communication open and transparent from start to finish. → We stay flexible and adapt to changing needs and priorities. → We invest in relationships that last beyond project deadlines. → We value quality and creativity in everything we do. → We’re committed to learning and staying ahead of industry trends. Clients don’t just want services. They want real problem solvers who get it. --- Follow Michael Cleary 🏳️🌈 for more tips like this. ♻️ Share with someone who could use some advice on problem-solving #sales #problemsolving #marketing

Any innovation expert worth their salt will tell you to “focus on solving problems.” But WHOSE problems should you solve? If you’re running a hospital, should your digital innovation efforts focus ONLY on solving the problems of patients? What about solving your doctors’ biggest problems? Your nurses’? In most innovation theory, the focus is on solving CUSTOMER problems. That is critical. And it is where I always argue that we should start. But for strategy to truly create & capture maximum value —  it also needs to address your essential BUSINESS problems. Think of e-commerce: If you are running a fulfillment center, your business will live or die based on your ability to continually improve how you solve two problems: 1. “Picking” (getting the right products from warehouse shelves into a plastic bin) 2. “Packing” (getting everything in that bin packed into the optimal cardboard container) 📑 My latest ARTICLE for “David Rogers on Digital” ◾ Offers a definition for “Business Problems” vs. “Customer Problems” ◾ Gives 10 case examples of high-value “business problems” ◾ Shows how to apply this to internal innovation, like in supply chain or human resources ◾ Explains why finding the “owner” of a problem is the first step to solving it READ: https://bit.ly/4g5hOVB 👀 “Solving problems” is not enough. We have to know WHOSE problem we are solving, and how they experience it… before we can begin the process of iterative experimentation that will unlock real value for your business. ▶ READ MORE: https://bit.ly/4g5hOVB #strategy #innovation #designthinking #problems #experimentation