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Why Problem-Solving Skills Are Essential for Leaders in Any Industry

Business man leading team in problem-solving exercise with white board

  • 17 Jan 2023

Any organization offering a product or service is in the business of solving problems.

Whether providing medical care to address health issues or quick convenience to those hungry for dinner, a business’s purpose is to satisfy customer needs .

In addition to solving customers’ problems, you’ll undoubtedly encounter challenges within your organization as it evolves to meet customer needs. You’re likely to experience growing pains in the form of missed targets, unattained goals, and team disagreements.

Yet, the ubiquity of problems doesn’t have to be discouraging; with the right frameworks and tools, you can build the skills to solve consumers' and your organization’s most challenging issues.

Here’s a primer on problem-solving in business, why it’s important, the skills you need, and how to build them.

Access your free e-book today.

What Is Problem-Solving in Business?

Problem-solving is the process of systematically removing barriers that prevent you or others from reaching goals.

Your business removes obstacles in customers’ lives through its products or services, just as you can remove obstacles that keep your team from achieving business goals.

Design Thinking

Design thinking , as described by Harvard Business School Dean Srikant Datar in the online course Design Thinking and Innovation , is a human-centered , solutions-based approach to problem-solving and innovation. Originally created for product design, design thinking’s use case has evolved . It’s now used to solve internal business problems, too.

The design thinking process has four stages :

4 Stages of Design Thinking

  • Clarify: Clarify a problem through research and feedback from those impacted.
  • Ideate: Armed with new insights, generate as many solutions as possible.
  • Develop: Combine and cull your ideas into a short list of viable, feasible, and desirable options before building prototypes (if making physical products) and creating a plan of action (if solving an intangible problem).
  • Implement: Execute the strongest idea, ensuring clear communication with all stakeholders about its potential value and deliberate reasoning.

Using this framework, you can generate innovative ideas that wouldn’t have surfaced otherwise.

Creative Problem-Solving

Another, less structured approach to challenges is creative problem-solving , which employs a series of exercises to explore open-ended solutions and develop new perspectives. This is especially useful when a problem’s root cause has yet to be defined.

You can use creative problem-solving tools in design thinking’s “ideate” stage, which include:

  • Brainstorming: Instruct everyone to develop as many ideas as possible in an allotted time frame without passing judgment.
  • Divergent thinking exercises: Rather than arriving at the same conclusion (convergent thinking), instruct everyone to come up with a unique idea for a given prompt (divergent thinking). This type of exercise helps avoid the tendency to agree with others’ ideas without considering alternatives.
  • Alternate worlds: Ask your team to consider how various personas would manage the problem. For instance, how would a pilot approach it? What about a young child? What about a seasoned engineer?

It can be tempting to fall back on how problems have been solved before, especially if they worked well. However, if you’re striving for innovation, relying on existing systems can stunt your company’s growth.

Related: How to Be a More Creative Problem-Solver at Work: 8 Tips

Why Is Problem-Solving Important for Leaders?

While obstacles’ specifics vary between industries, strong problem-solving skills are crucial for leaders in any field.

Whether building a new product or dealing with internal issues, you’re bound to come up against challenges. Having frameworks and tools at your disposal when they arise can turn issues into opportunities.

As a leader, it’s rarely your responsibility to solve a problem single-handedly, so it’s crucial to know how to empower employees to work together to find the best solution.

Your job is to guide them through each step of the framework and set the parameters and prompts within which they can be creative. Then, you can develop a list of ideas together, test the best ones, and implement the chosen solution.

Related: 5 Design Thinking Skills for Business Professionals

4 Problem-Solving Skills All Leaders Need

1. problem framing.

One key skill for any leader is framing problems in a way that makes sense for their organization. Problem framing is defined in Design Thinking and Innovation as determining the scope, context, and perspective of the problem you’re trying to solve.

“Before you begin to generate solutions for your problem, you must always think hard about how you’re going to frame that problem,” Datar says in the course.

For instance, imagine you work for a company that sells children’s sneakers, and sales have plummeted. When framing the problem, consider:

  • What is the children’s sneaker market like right now?
  • Should we improve the quality of our sneakers?
  • Should we assess all children’s footwear?
  • Is this a marketing issue for children’s sneakers specifically?
  • Is this a bigger issue that impacts how we should market or produce all footwear?

While there’s no one right way to frame a problem, how you do can impact the solutions you generate. It’s imperative to accurately frame problems to align with organizational priorities and ensure your team generates useful ideas for your firm.

To solve a problem, you need to empathize with those impacted by it. Empathy is the ability to understand others’ emotions and experiences. While many believe empathy is a fixed trait, it’s a skill you can strengthen through practice.

When confronted with a problem, consider whom it impacts. Returning to the children’s sneaker example, think of who’s affected:

  • Your organization’s employees, because sales are down
  • The customers who typically buy your sneakers
  • The children who typically wear your sneakers

Empathy is required to get to the problem’s root and consider each group’s perspective. Assuming someone’s perspective often isn’t accurate, so the best way to get that information is by collecting user feedback.

For instance, if you asked customers who typically buy your children’s sneakers why they’ve stopped, they could say, “A new brand of children’s sneakers came onto the market that have soles with more traction. I want my child to be as safe as possible, so I bought those instead.”

When someone shares their feelings and experiences, you have an opportunity to empathize with them. This can yield solutions to their problem that directly address its root and shows you care. In this case, you may design a new line of children’s sneakers with extremely grippy soles for added safety, knowing that’s what your customers care most about.

Related: 3 Effective Methods for Assessing Customer Needs

3. Breaking Cognitive Fixedness

Cognitive fixedness is a state of mind in which you examine situations through the lens of past experiences. This locks you into one mindset rather than allowing you to consider alternative possibilities.

For instance, your cognitive fixedness may make you think rubber is the only material for sneaker treads. What else could you use? Is there a grippier alternative you haven’t considered?

Problem-solving is all about overcoming cognitive fixedness. You not only need to foster this skill in yourself but among your team.

4. Creating a Psychologically Safe Environment

As a leader, it’s your job to create an environment conducive to problem-solving. In a psychologically safe environment, all team members feel comfortable bringing ideas to the table, which are likely influenced by their personal opinions and experiences.

If employees are penalized for “bad” ideas or chastised for questioning long-held procedures and systems, innovation has no place to take root.

By employing the design thinking framework and creative problem-solving exercises, you can foster a setting in which your team feels comfortable sharing ideas and new, innovative solutions can grow.

Design Thinking and Innovation | Uncover creative solutions to your business problems | Learn More

How to Build Problem-Solving Skills

The most obvious answer to how to build your problem-solving skills is perhaps the most intimidating: You must practice.

Again and again, you’ll encounter challenges, use creative problem-solving tools and design thinking frameworks, and assess results to learn what to do differently next time.

While most of your practice will occur within your organization, you can learn in a lower-stakes setting by taking an online course, such as Design Thinking and Innovation . Datar guides you through each tool and framework, presenting real-world business examples to help you envision how you would approach the same types of problems in your organization.

Are you interested in uncovering innovative solutions for your organization’s business problems? Explore Design Thinking and Innovation —one of our online entrepreneurship and innovation courses —to learn how to leverage proven frameworks and tools to solve challenges. Not sure which course is right for you? Download our free flowchart .

characteristics of problem solving skills

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Solution-Based Thinking: Top Traits of Great Problem Solvers

According to a Job Outlook 2017 survey of employers, the top three attributes sought most frequently in candidates are:

  • Demonstration of strong teamwork (78 percent)
  • Problem-solving skills (77.3 percent)
  • Excellent written communication competency (75 percent)

At just over 77 percent, it’s evident that the act of problem-solving is a universal skill which applies to all positions within varying industries. We will all likely find ourselves tasked with some form of problem-solving at one time or another. Unfortunately, however, solution-based thinking doesn’t always come naturally to all of us.

business man hand pointing at solution solving problem diagram

First, however, let’s review why this quality is so widely valued in the job market.

Why do employers value problem-solvers?

1.   problem solvers can handle any situation..

When these individuals are faced with a problem with no immediate solution in sight, they don’t panic immediately. Instead, they remain calm and figure out how they can solve the issue.

2.   Problem solvers bring ideas and solutions to the table.

They do not wait to be told to do things. They make suggestions on how to improve workflow. They try to proactively shape their environment instead of accepting the present circumstances.

3.   Problem solvers make the right decisions for an organization.

These individuals think analytically, therefore, it is easier for them to make the right decisions.

What are the common traits of good problem solvers?

1.   problem solvers know what the problem is..

In many situations, they are able to identify specific or potential roadblocks before others do.

2.   Problem solvers know when to apply simple or complex solutions.

Problems can come with all levels of complications. A good problem solver knows when to apply systematic and complex solutions to the issue or when to make use of shortcuts and find an easier route to the solution.

3.   Problem solvers view problems as opportunities to grow.

Those with solution-based thinking often view problems as situations that will help them learn and improve upon their existing expertise.

4.   Problem solvers think outside the box.

The act of trouble-shooting alone causes the mind to delve beyond what is most obvious.  True problem-solvers are open to new ways of thinking and exploration toward solutions.

5.   Problem solvers do not feel that they are always right.

Individuals who are focused on finding the right solution are more concerned with what is best for the present circumstance than proving themselves right (or someone else wrong, for that matter). They will also not be found bragging about being right (even if they are).

6.   Problem solvers have well-developed social skills.

They connect well with people; both in person and online. This trait also helps them find solutions through other channels.

7.   Problem solvers would rather prevent than intervene.

Solution-based thinkers know that the best way to be more productive in an organization is to prevent problems from developing in the first place. They are therefore, quite centered on quality and due-diligence.

8.   Problem solvers explore all options.

They rarely rely upon a single solution to a problem. As trouble-shooters, they are always ready with a backup plan or a new angle toward handling the issue.

9.   Problem solvers have reasonable expectations in specific situations.

They understand that several issues can often have a hand in one problem, requiring patience when it comes to isolating the issue at play. For this reason, they are aware that each problem should be approached with realistic expectations.

10.   Problem solvers do not create more problems for other people.

The goal of a true problem solver is to discover solutions that will not harm or overly inconvenience others. They are aware that if they must apply a solution which may adversely affect their colleagues, the solution will be temporary and actions will be taken to reduce negative consequences for the rest of the company.

However, for those who may not be natural trouble-shooters at heart, here are some suggested steps toward improving your solution-based thinking and follow-through.

Steps to Problem Solving:

1.   identify the problem..

Once you’ve identified the problem, try to figure out why and how it occurred.

2.   Determine the criteria for your solution.

Before generating a solution, you must first define what you hope to achieve. For example, your solution must stay within a specific budget or time frame.

3.   Create possible solutions.

Try to generate several possible ways to rectify the problem. Do not rely on a single solution. If the problem is complex, you may need to consult experts or perform further research on the subject.

4.   Analyze each possible solution.

Analyze each potential solution alongside the criteria that you created. Create a table to make it easier for you to view which solution should be applied.

5.   Choose the best solution.

Choose the solution that is most practical or most feasible.

6.   Create an implementation plan.

You need to have a working strategy to implement your solution. This plan should also help track the plan’s ongoing success. Try to include time and cost estimates.

7.   Document all information connected to your solution.

Make list of all information you’ve acquire from steps 1 through 6. Attempt to keep your findings to two pages or less for ease of reference.

8.   Meet with your manager or supervisor.

Present your solution plan to your boss as you give him a copy of your document. Explain why you feel these are the best choices toward solution.

Problem solving skills

As we know, in order to stand out in the workplace, contribution is crucial. Managers and supervisors already face many day to day problems. When they know they have an employee who is ready to face and work through challenges, that individual is naturally valued by his or her superiors and by the organization as a whole.

Fred Coon, CEO  

At SC&C we offer  Career Analysis   to help senior decision-makers from all walks of life identify strategies and tactics to increase their value-add employment potential.

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