Seek Problems, Generate Profits

Don´t we already have enough problems? Why should we seek out more? Very simple: Call it tasks, opportunities, or challenges, the way to profit requires to solve your problems. Faster, more effectively and at lower cost.

Too many problems remain essentially unresolved. Often they are kicked down the road until it´s a big problem. Traditional problem solving suffers from these four ills:

  1. Slow identification of variations or issues
  2. Reluctance to call out problems and take responsibility
  3. No time to attack problems when day are still small
  4. Knee-jerk solutions lacking facts and data

1. Frog in the Boiling Pot

Even if the story with the frog that is not jumping out of a boiling pot isn´t true – it is a good analogy for our common experience that declind often registers not at all or late. Too late.

How to observe relevant change? Only with a comprehensive measurement structure, i.e. standard work, KPIs, project charts, white boards, reviews, etc. relevant variations will register in time for action. Clear standards of work and of performance enable every employee to observe variations that are problems.

2. Problems? No, not here!

The boss is asking, “How is it going?” Inevitably, the answer is: “No problem, chief!” Who wants to bring bad news to their manager? Even, if employees see that something has deteriorated, why bother to get into the crosshair of the boss?

The fear of getting blamed or loaded up with extra work, if the employee opens their mouth, holds them back. Often, with drastic consequences. How often are we wondering: Did nobody realize that the company was sliding into insolvency? Sure many saw it coming, it but nobody took up the baton.

In addition, nearly half of our work nowadays is done in projects. Seldomly are these well planned, budgeted, managed and reviewed. When the big, uncomfortable truth emerges, the tasks are at status of 95% and require still the same amount of time and budget as has been spent already.

3. No Time for Solving Problems!

This sentence seems ridiculous but is uttered daily in many organizations. What do people have time for? Too often for the problems of the past, for projects beyond the point of usefulness, or teams are spread too thin to get anything done effectively anymore. Then it becomes a question of priority.

Solving small problems prevents bigger ones. This means, instead of waiting for experts or high-priced consultants, individuals and teams need to learn to get a grip on their processes themselves. The employees close to the work know best what´s behind the symptoms and can solve a lot by “doing-it-yourself”. In addition, this saves a lot of money for unnecessary capital investment or consulting fees.

4. Lack of Problem Solving Skills

Even if problems are recognized and attacked, often the solutions fall short of success. Too often, thoughtless action replaces solid analysis. Premature suggestions are treated as solutions, instead of hypothesis of the root cause of the problem.

Luckily over the last twenty years we have learned how our minds fall prey to behavioral biases. To mention the most important ones, collected by Flyvbjerg:

(1) strategic misrepresentation (politics)
(2) optimism bias
(3) uniqueness bias (other´s failure does not apply here)
(4) the planning fallacy (also, no planning to speak of)
(5) overconfidence bias (also known as arrogance)
(6) hindsight bias (“I-knew-it-all-along”-effect after the fact)
(7) availability bias (“what you see is all there is”)
(8) the base rate fallacy (normal rules don’t apply to us)
(9) anchoring (relying on one conspicuous fact) and
(10) escalation of commitment (sunk cost fallacy)

Each of these biases has can sink any project. However, we can overcome these pitfalls by following the PDCA (Plan-Do-Check-Act) approach of systematic root cause problem solving.

To build competitive advantages, every successful organization must be faster solving their problems, challenges and opportunities than the number of new once facing them on a daily basis. Top management must make sure that this metric is highly positive.

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