Tuesday 13 August 2013

Effective Problem-Solving

Everyone wants problems solved FAST (especially customers).  Being seen as someone who comes up with a “fast” solution is “good”.  We feel good when we’ve “solved the problem”.  However, this often means that people rush at things to impress bosses, customers or colleagues.  Fast solutions aren’t always the best, particularly in the longer-term. 

Why do problems occur? It happens for any number of reasons, particularly where people are involved.  Dealing with people, faulty systems, changes in processes or technology or with  customers all give rise to the problems that we face every day. 

It’s no use moaning or getting angry (unless the problem’s been caused by someone who has already been instructed in how to “do it right”).  The fastest and most effective problem-solving approach is to have a framework that works.  Here’s what works for me. 

1.      Make sure that there IS a problem.  If so, don’t ignore it in the hope that it’ll go away.  

2.      Acknowledge and accept it.  One of my friends says “We are where we are” whenever he has an “issue” on his hands.  Accepting that there’s a problem puts you in a positive frame of mind for dealing with it. 

3.      Define the problem.  What information do you need? Gather as much as possible in the time available.  Use the “Six Honest Serving Men” (Who, What, When, Where, Why, How) to understand what happened.  Often you have to treat the symptoms first, then the longer-term causes.  During the UK horsemeat saga, food retailers had little time to work out how horsemeat was getting into beef products (cause).  The short-term solution: remove all beef products (treat symptoms).  The long-term one: review supply chains (cause). 

4.      When defining and gathering information, don’t turn it into a “blame game”.  You will make people cover up vital information, making the situation worse. 

5.      Distinguish between “causes” and “symptoms”.  Inefficient processes cause customer complaints (symptoms). Treating causes is the way to go, but isn’t always possible due to cost or other practical considerations (we can’t eliminate “human error”). Is it cheaper/easier/more to treat the symptoms rather than the cause?  

6.      Is there more than one cause? Problems are caused by people, processes and systems.  Can they be eliminated? What will elimination cost?  Is it easier to change people/process/systems even if it’s a customer-caused problem?  With the UK’s horsemeat problem, people identified various causes (pressure to keep prices low, complex supply chains, insufficient checks of product and/or end suppliers). 

7.      Don't trust the first solution that presents itself.  Is there more than one solution?  Is it cheaper/easier/more diplomatic to change people/process/systems even if it’s a customer-caused problem?  Is there a short-term “fix” and a longer-term one?  Make sure you pick the right solution for the right problem.  

8.      How much time do you have to resolve the problem? The more time, the better the solution.  Solutions take more or less time to implement, depending on the problem and its cause(s).  Causes may take longer to treat than results.  Do you need to adopt a “short-term/long-term” solution? 

9.      What needs to be done?  Why? Where will it happen? How much will it cost? When will it happen?  Who will be in charge?  How do you explain this to others? 

10.  What will you do to make sure it doesn't happen again (eliminate), reduce the impact of it happening again (mitigate), or react more quickly if it does (anticipate)? 

A lot of people tell you to “follow your gut”.  “Gut reaction” actually involves the human brain reacting to stimuli, comparing them to past experiences and selecting a response within milliseconds (Prof. Robert Cialdini calls this the “click-whirr” response).  “Gut instinct” is great, but remember that you may react to the wrong signal and make the wrong decision. 

Have a problem-solving framework.  Include: 

·         Who does what
·         When to refer
·         Limits of authority to commit to action/expense
·         What needs to be done to eliminate, mitigate or anticipate errors happening again?
·         Encourage/reward people who spot problems (and solutions!)
·         Encourage participation in problem-solving/anticipation
·         Don’t play “blame games”
·         Remedial training/coaching facilities
·         Structured and focussed hiring and training approach
·         If someone continues to be a problem, despite all your efforts, let them go…
 

I have spent more than half my life delivering change in different world markets from the most developed to “emerging” economies. With more than 20 years in the world financial services industry running different service, operations and lending businesses, I started my own Performance Management Consultancy to offer solutions for improving performance, productivity and risk management.  I work with individuals, small businesses, charities, quoted companies and academic institutions across the world. An international speaker, trainer, author and fund-raiser, I can be contacted by email . My website provides a full picture of my portfolio of services.  For strategic questions that you should be asking yourself, follow me at @wkm610.

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