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Three Techniques for Solving Time Value Problems in Finance
The Techniques Used for Solving Time Value Problems
Financial planning practices work with time value problems in terms of how the value of money changes with time. Time value problems become an issue within a range of different planning scenarios involving profit earnings, loan rates and budgeting practices. Three time value techniques for solving time value problems involve determining the present, future and recurring values of money over one or more time periods.
Defining Time Value of Money
Over time, money investments increase in value as a result of interest-earning accumulations. Within the lending or loan industry, interest amounts paid represent the cost of borrowing money for a specified period of time. In effect, interest earnings or interest paid determines the time value of a particular investment or debt. There there are opportunity costs associated with the future value of money due to inflation and other factors.
As different financial transactions involve varying interest rates and time periods, problems concerning the time value of money attempt to incorporate the effects of time when determining potential profit earnings or debt costs. Given all of this, the time value of money must be examined in order to make optimal financial decision.
According to the Corporate Finance Institute , there are a few key formulas that can be used to calculate the time value of money. Primarily, these time value calculations measure the present value and future value of money.
How to Forecast Future Value
Problems concerning the future value of money consider the interest rate applied, the initial investment (or loan) amount and the length of time under consideration. For example, someone placing $100 in a money market account that earns an annual interest rate of 5 percent can determine the future value of his investment over a 10 year period of time.
By multiplying the $100 by 5 percent , his annual earnings amount to $5 a year. Multiplied by 10 , this $5 amount equals $50 , so at the end of 10 years , the future value of the initial $100 investment equals $150.00 . In effect, interest rate amounts ultimately determine the value of a particular money transaction over time.
What's the Present Value Technique?
Present value problems attempt to determine the present or current value of future cash amounts based on time periods and applied interest rates. By working backwards, the present value technique calculates the current value of a future cash earnings amount based on a certain time period and interest rate. In effect, the present value technique “discounts” a future cash amount to arrive at a present value amount.
Once calculated, the present value amount equals the amount of money needed to generate the future cash amount. For example, someone looking to generate $100 in one year using a 10 percent interest rate would need to invest $90 today. In other words, the future $100 amount represents the present value of today’s $90 investment.
How to Calculate Recurring Value
Annuity and bond investments involve recurring interest earnings over set periods of time. Some investment products generate annual interest earnings, while others may produce quarterly or biannual earnings. The earnings rate produces a cash flow stream that’s generated by time value effects, or interest rates.
Problems involving cash amounts for recurring interest earnings can use present and future value techniques. Since cash flow streams involve multiple amounts – be it four times a year, annually or biannually – present or future value techniques add these amounts together when computing a present or future value.
For example, the future value of a $100 annuity investment over 10 years at 10 percent interest equals the sum total of each amount earned per year, or $200 . Present value techniques use the same process in terms of figuring present values for each year’s earnings, which represent future cash amounts.
- CA.gov: Time Value of Money - Six Functions of a Dollar
- CFI: Time Value of Money
Jacquelyn Jeanty has worked as a freelance writer since 2008. Her work appears at various websites. Her specialty areas include health, home and garden, Christianity and personal development. Jeanty holds a Bachelor of Arts in psychology from Purdue University.
35 problem-solving techniques and methods for solving complex problems
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All teams and organizations encounter challenges as they grow. There are problems that might occur for teams when it comes to miscommunication or resolving business-critical issues . You may face challenges around growth , design , user engagement, and even team culture and happiness. In short, problem-solving techniques should be part of every team’s skillset.
Problem-solving methods are primarily designed to help a group or team through a process of first identifying problems and challenges , ideating possible solutions , and then evaluating the most suitable .
Finding effective solutions to complex problems isn’t easy, but by using the right process and techniques, you can help your team be more efficient in the process.
So how do you develop strategies that are engaging, and empower your team to solve problems effectively?
In this blog post, we share a series of problem-solving tools you can use in your next workshop or team meeting. You’ll also find some tips for facilitating the process and how to enable others to solve complex problems.
Let’s get started!
How do you identify problems?
How do you identify the right solution.
- Tips for more effective problem-solving
Complete problem-solving methods
- Problem-solving techniques to identify and analyze problems
- Problem-solving techniques for developing solutions
Problem-solving warm-up activities
Closing activities for a problem-solving process.
Before you can move towards finding the right solution for a given problem, you first need to identify and define the problem you wish to solve.
Here, you want to clearly articulate what the problem is and allow your group to do the same. Remember that everyone in a group is likely to have differing perspectives and alignment is necessary in order to help the group move forward.
Identifying a problem accurately also requires that all members of a group are able to contribute their views in an open and safe manner. It can be scary for people to stand up and contribute, especially if the problems or challenges are emotive or personal in nature. Be sure to try and create a psychologically safe space for these kinds of discussions.
Remember that problem analysis and further discussion are also important. Not taking the time to fully analyze and discuss a challenge can result in the development of solutions that are not fit for purpose or do not address the underlying issue.
Successfully identifying and then analyzing a problem means facilitating a group through activities designed to help them clearly and honestly articulate their thoughts and produce usable insight.
With this data, you might then produce a problem statement that clearly describes the problem you wish to be addressed and also state the goal of any process you undertake to tackle this issue.
Finding solutions is the end goal of any process. Complex organizational challenges can only be solved with an appropriate solution but discovering them requires using the right problem-solving tool.
After you’ve explored a problem and discussed ideas, you need to help a team discuss and choose the right solution. Consensus tools and methods such as those below help a group explore possible solutions before then voting for the best. They’re a great way to tap into the collective intelligence of the group for great results!
Remember that the process is often iterative. Great problem solvers often roadtest a viable solution in a measured way to see what works too. While you might not get the right solution on your first try, the methods below help teams land on the most likely to succeed solution while also holding space for improvement.
Tips for more effective problem solving
Problem-solving activities are only one part of the puzzle. While a great method can help unlock your team’s ability to solve problems, without a thoughtful approach and strong facilitation the solutions may not be fit for purpose.
Let’s take a look at some problem-solving tips you can apply to any process to help it be a success!
Clearly define the problem
Jumping straight to solutions can be tempting, though without first clearly articulating a problem, the solution might not be the right one. Many of the problem-solving activities below include sections where the problem is explored and clearly defined before moving on.
This is a vital part of the problem-solving process and taking the time to fully define an issue can save time and effort later. A clear definition helps identify irrelevant information and it also ensures that your team sets off on the right track.
Don’t jump to conclusions
It’s easy for groups to exhibit cognitive bias or have preconceived ideas about both problems and potential solutions. Be sure to back up any problem statements or potential solutions with facts, research, and adequate forethought.
The best techniques ask participants to be methodical and challenge preconceived notions. Make sure you give the group enough time and space to collect relevant information and consider the problem in a new way. By approaching the process with a clear, rational mindset, you’ll often find that better solutions are more forthcoming.
Try different approaches
Problems come in all shapes and sizes and so too should the methods you use to solve them. If you find that one approach isn’t yielding results and your team isn’t finding different solutions, try mixing it up. You’ll be surprised at how using a new creative activity can unblock your team and generate great solutions.
Don’t take it personally
Depending on the nature of your team or organizational problems, it’s easy for conversations to get heated. While it’s good for participants to be engaged in the discussions, ensure that emotions don’t run too high and that blame isn’t thrown around while finding solutions.
You’re all in it together, and even if your team or area is seeing problems, that isn’t necessarily a disparagement of you personally. Using facilitation skills to manage group dynamics is one effective method of helping conversations be more constructive.
Get the right people in the room
Your problem-solving method is often only as effective as the group using it. Getting the right people on the job and managing the number of people present is important too!
If the group is too small, you may not get enough different perspectives to effectively solve a problem. If the group is too large, you can go round and round during the ideation stages.
Creating the right group makeup is also important in ensuring you have the necessary expertise and skillset to both identify and follow up on potential solutions. Carefully consider who to include at each stage to help ensure your problem-solving method is followed and positioned for success.
Document everything
The best solutions can take refinement, iteration, and reflection to come out. Get into a habit of documenting your process in order to keep all the learnings from the session and to allow ideas to mature and develop. Many of the methods below involve the creation of documents or shared resources. Be sure to keep and share these so everyone can benefit from the work done!
Bring a facilitator
Facilitation is all about making group processes easier. With a subject as potentially emotive and important as problem-solving, having an impartial third party in the form of a facilitator can make all the difference in finding great solutions and keeping the process moving. Consider bringing a facilitator to your problem-solving session to get better results and generate meaningful solutions!
Develop your problem-solving skills
It takes time and practice to be an effective problem solver. While some roles or participants might more naturally gravitate towards problem-solving, it can take development and planning to help everyone create better solutions.
You might develop a training program, run a problem-solving workshop or simply ask your team to practice using the techniques below. Check out our post on problem-solving skills to see how you and your group can develop the right mental process and be more resilient to issues too!
Design the right agenda
Workshops are a great format for solving problems. With the right approach, you can focus a group and help them find the solutions to their own problems. But designing a process can be time-consuming and finding the right activities can be difficult.
SessionLab makes it easy to plan a process to solve important problems. You can find methods fit for your purpose in the library and add them to your agenda. You’ll even find templates designed by expert facilitators to help you kickstart your workshop design.
In this section, we’ll look at in-depth problem-solving methods that provide a complete end-to-end process for developing effective solutions. These will help guide your team from the discovery and definition of a problem through to delivering the right solution.
If you’re looking for an all-encompassing method or problem-solving model, these processes are a great place to start. They’ll ask your team to challenge preconceived ideas and adopt a mindset for solving problems more effectively.
- Six Thinking Hats
- Lightning Decision Jam
- Problem Definition Process
- Discovery & Action Dialogue
Design Sprint 2.0
- Open Space Technology
1. Six Thinking Hats
Individual approaches to solving a problem can be very different based on what team or role an individual holds. It can be easy for existing biases or perspectives to find their way into the mix, or for internal politics to direct a conversation.
Six Thinking Hats is a classic method for identifying the problems that need to be solved and enables your team to consider them from different angles, whether that is by focusing on facts and data, creative solutions, or by considering why a particular solution might not work.
Like all problem-solving frameworks, Six Thinking Hats is effective at helping teams remove roadblocks from a conversation or discussion and come to terms with all the aspects necessary to solve complex problems.
2. Lightning Decision Jam
Featured courtesy of Jonathan Courtney of AJ&Smart Berlin, Lightning Decision Jam is one of those strategies that should be in every facilitation toolbox. Exploring problems and finding solutions is often creative in nature, though as with any creative process, there is the potential to lose focus and get lost.
Unstructured discussions might get you there in the end, but it’s much more effective to use a method that creates a clear process and team focus.
In Lightning Decision Jam, participants are invited to begin by writing challenges, concerns, or mistakes on post-its without discussing them before then being invited by the moderator to present them to the group.
From there, the team vote on which problems to solve and are guided through steps that will allow them to reframe those problems, create solutions and then decide what to execute on.
By deciding the problems that need to be solved as a team before moving on, this group process is great for ensuring the whole team is aligned and can take ownership over the next stages.
Lightning Decision Jam (LDJ) #action #decision making #problem solving #issue analysis #innovation #design #remote-friendly The problem with anything that requires creative thinking is that it’s easy to get lost—lose focus and fall into the trap of having useless, open-ended, unstructured discussions. Here’s the most effective solution I’ve found: Replace all open, unstructured discussion with a clear process. What to use this exercise for: Anything which requires a group of people to make decisions, solve problems or discuss challenges. It’s always good to frame an LDJ session with a broad topic, here are some examples: The conversion flow of our checkout Our internal design process How we organise events Keeping up with our competition Improving sales flow
3. Problem Definition Process
While problems can be complex, the problem-solving methods you use to identify and solve those problems can often be simple in design.
By taking the time to truly identify and define a problem before asking the group to reframe the challenge as an opportunity, this method is a great way to enable change.
Begin by identifying a focus question and exploring the ways in which it manifests before splitting into five teams who will each consider the problem using a different method: escape, reversal, exaggeration, distortion or wishful. Teams develop a problem objective and create ideas in line with their method before then feeding them back to the group.
This method is great for enabling in-depth discussions while also creating space for finding creative solutions too!
Problem Definition #problem solving #idea generation #creativity #online #remote-friendly A problem solving technique to define a problem, challenge or opportunity and to generate ideas.
4. The 5 Whys
Sometimes, a group needs to go further with their strategies and analyze the root cause at the heart of organizational issues. An RCA or root cause analysis is the process of identifying what is at the heart of business problems or recurring challenges.
The 5 Whys is a simple and effective method of helping a group go find the root cause of any problem or challenge and conduct analysis that will deliver results.
By beginning with the creation of a problem statement and going through five stages to refine it, The 5 Whys provides everything you need to truly discover the cause of an issue.
The 5 Whys #hyperisland #innovation This simple and powerful method is useful for getting to the core of a problem or challenge. As the title suggests, the group defines a problems, then asks the question “why” five times, often using the resulting explanation as a starting point for creative problem solving.
5. World Cafe
World Cafe is a simple but powerful facilitation technique to help bigger groups to focus their energy and attention on solving complex problems.
World Cafe enables this approach by creating a relaxed atmosphere where participants are able to self-organize and explore topics relevant and important to them which are themed around a central problem-solving purpose. Create the right atmosphere by modeling your space after a cafe and after guiding the group through the method, let them take the lead!
Making problem-solving a part of your organization’s culture in the long term can be a difficult undertaking. More approachable formats like World Cafe can be especially effective in bringing people unfamiliar with workshops into the fold.
World Cafe #hyperisland #innovation #issue analysis World Café is a simple yet powerful method, originated by Juanita Brown, for enabling meaningful conversations driven completely by participants and the topics that are relevant and important to them. Facilitators create a cafe-style space and provide simple guidelines. Participants then self-organize and explore a set of relevant topics or questions for conversation.
6. Discovery & Action Dialogue (DAD)
One of the best approaches is to create a safe space for a group to share and discover practices and behaviors that can help them find their own solutions.
With DAD, you can help a group choose which problems they wish to solve and which approaches they will take to do so. It’s great at helping remove resistance to change and can help get buy-in at every level too!
This process of enabling frontline ownership is great in ensuring follow-through and is one of the methods you will want in your toolbox as a facilitator.
Discovery & Action Dialogue (DAD) #idea generation #liberating structures #action #issue analysis #remote-friendly DADs make it easy for a group or community to discover practices and behaviors that enable some individuals (without access to special resources and facing the same constraints) to find better solutions than their peers to common problems. These are called positive deviant (PD) behaviors and practices. DADs make it possible for people in the group, unit, or community to discover by themselves these PD practices. DADs also create favorable conditions for stimulating participants’ creativity in spaces where they can feel safe to invent new and more effective practices. Resistance to change evaporates as participants are unleashed to choose freely which practices they will adopt or try and which problems they will tackle. DADs make it possible to achieve frontline ownership of solutions.
7. Design Sprint 2.0
Want to see how a team can solve big problems and move forward with prototyping and testing solutions in a few days? The Design Sprint 2.0 template from Jake Knapp, author of Sprint, is a complete agenda for a with proven results.
Developing the right agenda can involve difficult but necessary planning. Ensuring all the correct steps are followed can also be stressful or time-consuming depending on your level of experience.
Use this complete 4-day workshop template if you are finding there is no obvious solution to your challenge and want to focus your team around a specific problem that might require a shortcut to launching a minimum viable product or waiting for the organization-wide implementation of a solution.
8. Open space technology
Open space technology- developed by Harrison Owen – creates a space where large groups are invited to take ownership of their problem solving and lead individual sessions. Open space technology is a great format when you have a great deal of expertise and insight in the room and want to allow for different takes and approaches on a particular theme or problem you need to be solved.
Start by bringing your participants together to align around a central theme and focus their efforts. Explain the ground rules to help guide the problem-solving process and then invite members to identify any issue connecting to the central theme that they are interested in and are prepared to take responsibility for.
Once participants have decided on their approach to the core theme, they write their issue on a piece of paper, announce it to the group, pick a session time and place, and post the paper on the wall. As the wall fills up with sessions, the group is then invited to join the sessions that interest them the most and which they can contribute to, then you’re ready to begin!
Everyone joins the problem-solving group they’ve signed up to, record the discussion and if appropriate, findings can then be shared with the rest of the group afterward.
Open Space Technology #action plan #idea generation #problem solving #issue analysis #large group #online #remote-friendly Open Space is a methodology for large groups to create their agenda discerning important topics for discussion, suitable for conferences, community gatherings and whole system facilitation
Techniques to identify and analyze problems
Using a problem-solving method to help a team identify and analyze a problem can be a quick and effective addition to any workshop or meeting.
While further actions are always necessary, you can generate momentum and alignment easily, and these activities are a great place to get started.
We’ve put together this list of techniques to help you and your team with problem identification, analysis, and discussion that sets the foundation for developing effective solutions.
Let’s take a look!
- The Creativity Dice
- Fishbone Analysis
- Problem Tree
- SWOT Analysis
- Agreement-Certainty Matrix
- The Journalistic Six
- LEGO Challenge
- What, So What, Now What?
- Journalists
Individual and group perspectives are incredibly important, but what happens if people are set in their minds and need a change of perspective in order to approach a problem more effectively?
Flip It is a method we love because it is both simple to understand and run, and allows groups to understand how their perspectives and biases are formed.
Participants in Flip It are first invited to consider concerns, issues, or problems from a perspective of fear and write them on a flip chart. Then, the group is asked to consider those same issues from a perspective of hope and flip their understanding.
No problem and solution is free from existing bias and by changing perspectives with Flip It, you can then develop a problem solving model quickly and effectively.
Flip It! #gamestorming #problem solving #action Often, a change in a problem or situation comes simply from a change in our perspectives. Flip It! is a quick game designed to show players that perspectives are made, not born.
10. The Creativity Dice
One of the most useful problem solving skills you can teach your team is of approaching challenges with creativity, flexibility, and openness. Games like The Creativity Dice allow teams to overcome the potential hurdle of too much linear thinking and approach the process with a sense of fun and speed.
In The Creativity Dice, participants are organized around a topic and roll a dice to determine what they will work on for a period of 3 minutes at a time. They might roll a 3 and work on investigating factual information on the chosen topic. They might roll a 1 and work on identifying the specific goals, standards, or criteria for the session.
Encouraging rapid work and iteration while asking participants to be flexible are great skills to cultivate. Having a stage for idea incubation in this game is also important. Moments of pause can help ensure the ideas that are put forward are the most suitable.
The Creativity Dice #creativity #problem solving #thiagi #issue analysis Too much linear thinking is hazardous to creative problem solving. To be creative, you should approach the problem (or the opportunity) from different points of view. You should leave a thought hanging in mid-air and move to another. This skipping around prevents premature closure and lets your brain incubate one line of thought while you consciously pursue another.
11. Fishbone Analysis
Organizational or team challenges are rarely simple, and it’s important to remember that one problem can be an indication of something that goes deeper and may require further consideration to be solved.
Fishbone Analysis helps groups to dig deeper and understand the origins of a problem. It’s a great example of a root cause analysis method that is simple for everyone on a team to get their head around.
Participants in this activity are asked to annotate a diagram of a fish, first adding the problem or issue to be worked on at the head of a fish before then brainstorming the root causes of the problem and adding them as bones on the fish.
Using abstractions such as a diagram of a fish can really help a team break out of their regular thinking and develop a creative approach.
Fishbone Analysis #problem solving ##root cause analysis #decision making #online facilitation A process to help identify and understand the origins of problems, issues or observations.
12. Problem Tree
Encouraging visual thinking can be an essential part of many strategies. By simply reframing and clarifying problems, a group can move towards developing a problem solving model that works for them.
In Problem Tree, groups are asked to first brainstorm a list of problems – these can be design problems, team problems or larger business problems – and then organize them into a hierarchy. The hierarchy could be from most important to least important or abstract to practical, though the key thing with problem solving games that involve this aspect is that your group has some way of managing and sorting all the issues that are raised.
Once you have a list of problems that need to be solved and have organized them accordingly, you’re then well-positioned for the next problem solving steps.
Problem tree #define intentions #create #design #issue analysis A problem tree is a tool to clarify the hierarchy of problems addressed by the team within a design project; it represents high level problems or related sublevel problems.
13. SWOT Analysis
Chances are you’ve heard of the SWOT Analysis before. This problem-solving method focuses on identifying strengths, weaknesses, opportunities, and threats is a tried and tested method for both individuals and teams.
Start by creating a desired end state or outcome and bare this in mind – any process solving model is made more effective by knowing what you are moving towards. Create a quadrant made up of the four categories of a SWOT analysis and ask participants to generate ideas based on each of those quadrants.
Once you have those ideas assembled in their quadrants, cluster them together based on their affinity with other ideas. These clusters are then used to facilitate group conversations and move things forward.
SWOT analysis #gamestorming #problem solving #action #meeting facilitation The SWOT Analysis is a long-standing technique of looking at what we have, with respect to the desired end state, as well as what we could improve on. It gives us an opportunity to gauge approaching opportunities and dangers, and assess the seriousness of the conditions that affect our future. When we understand those conditions, we can influence what comes next.
14. Agreement-Certainty Matrix
Not every problem-solving approach is right for every challenge, and deciding on the right method for the challenge at hand is a key part of being an effective team.
The Agreement Certainty matrix helps teams align on the nature of the challenges facing them. By sorting problems from simple to chaotic, your team can understand what methods are suitable for each problem and what they can do to ensure effective results.
If you are already using Liberating Structures techniques as part of your problem-solving strategy, the Agreement-Certainty Matrix can be an invaluable addition to your process. We’ve found it particularly if you are having issues with recurring problems in your organization and want to go deeper in understanding the root cause.
Agreement-Certainty Matrix #issue analysis #liberating structures #problem solving You can help individuals or groups avoid the frequent mistake of trying to solve a problem with methods that are not adapted to the nature of their challenge. The combination of two questions makes it possible to easily sort challenges into four categories: simple, complicated, complex , and chaotic . A problem is simple when it can be solved reliably with practices that are easy to duplicate. It is complicated when experts are required to devise a sophisticated solution that will yield the desired results predictably. A problem is complex when there are several valid ways to proceed but outcomes are not predictable in detail. Chaotic is when the context is too turbulent to identify a path forward. A loose analogy may be used to describe these differences: simple is like following a recipe, complicated like sending a rocket to the moon, complex like raising a child, and chaotic is like the game “Pin the Tail on the Donkey.” The Liberating Structures Matching Matrix in Chapter 5 can be used as the first step to clarify the nature of a challenge and avoid the mismatches between problems and solutions that are frequently at the root of chronic, recurring problems.
Organizing and charting a team’s progress can be important in ensuring its success. SQUID (Sequential Question and Insight Diagram) is a great model that allows a team to effectively switch between giving questions and answers and develop the skills they need to stay on track throughout the process.
Begin with two different colored sticky notes – one for questions and one for answers – and with your central topic (the head of the squid) on the board. Ask the group to first come up with a series of questions connected to their best guess of how to approach the topic. Ask the group to come up with answers to those questions, fix them to the board and connect them with a line. After some discussion, go back to question mode by responding to the generated answers or other points on the board.
It’s rewarding to see a diagram grow throughout the exercise, and a completed SQUID can provide a visual resource for future effort and as an example for other teams.
SQUID #gamestorming #project planning #issue analysis #problem solving When exploring an information space, it’s important for a group to know where they are at any given time. By using SQUID, a group charts out the territory as they go and can navigate accordingly. SQUID stands for Sequential Question and Insight Diagram.
16. Speed Boat
To continue with our nautical theme, Speed Boat is a short and sweet activity that can help a team quickly identify what employees, clients or service users might have a problem with and analyze what might be standing in the way of achieving a solution.
Methods that allow for a group to make observations, have insights and obtain those eureka moments quickly are invaluable when trying to solve complex problems.
In Speed Boat, the approach is to first consider what anchors and challenges might be holding an organization (or boat) back. Bonus points if you are able to identify any sharks in the water and develop ideas that can also deal with competitors!
Speed Boat #gamestorming #problem solving #action Speedboat is a short and sweet way to identify what your employees or clients don’t like about your product/service or what’s standing in the way of a desired goal.
17. The Journalistic Six
Some of the most effective ways of solving problems is by encouraging teams to be more inclusive and diverse in their thinking.
Based on the six key questions journalism students are taught to answer in articles and news stories, The Journalistic Six helps create teams to see the whole picture. By using who, what, when, where, why, and how to facilitate the conversation and encourage creative thinking, your team can make sure that the problem identification and problem analysis stages of the are covered exhaustively and thoughtfully. Reporter’s notebook and dictaphone optional.
The Journalistic Six – Who What When Where Why How #idea generation #issue analysis #problem solving #online #creative thinking #remote-friendly A questioning method for generating, explaining, investigating ideas.
18. LEGO Challenge
Now for an activity that is a little out of the (toy) box. LEGO Serious Play is a facilitation methodology that can be used to improve creative thinking and problem-solving skills.
The LEGO Challenge includes giving each member of the team an assignment that is hidden from the rest of the group while they create a structure without speaking.
What the LEGO challenge brings to the table is a fun working example of working with stakeholders who might not be on the same page to solve problems. Also, it’s LEGO! Who doesn’t love LEGO!
LEGO Challenge #hyperisland #team A team-building activity in which groups must work together to build a structure out of LEGO, but each individual has a secret “assignment” which makes the collaborative process more challenging. It emphasizes group communication, leadership dynamics, conflict, cooperation, patience and problem solving strategy.
19. What, So What, Now What?
If not carefully managed, the problem identification and problem analysis stages of the problem-solving process can actually create more problems and misunderstandings.
The What, So What, Now What? problem-solving activity is designed to help collect insights and move forward while also eliminating the possibility of disagreement when it comes to identifying, clarifying, and analyzing organizational or work problems.
Facilitation is all about bringing groups together so that might work on a shared goal and the best problem-solving strategies ensure that teams are aligned in purpose, if not initially in opinion or insight.
Throughout the three steps of this game, you give everyone on a team to reflect on a problem by asking what happened, why it is important, and what actions should then be taken.
This can be a great activity for bringing our individual perceptions about a problem or challenge and contextualizing it in a larger group setting. This is one of the most important problem-solving skills you can bring to your organization.
W³ – What, So What, Now What? #issue analysis #innovation #liberating structures You can help groups reflect on a shared experience in a way that builds understanding and spurs coordinated action while avoiding unproductive conflict. It is possible for every voice to be heard while simultaneously sifting for insights and shaping new direction. Progressing in stages makes this practical—from collecting facts about What Happened to making sense of these facts with So What and finally to what actions logically follow with Now What . The shared progression eliminates most of the misunderstandings that otherwise fuel disagreements about what to do. Voila!
20. Journalists
Problem analysis can be one of the most important and decisive stages of all problem-solving tools. Sometimes, a team can become bogged down in the details and are unable to move forward.
Journalists is an activity that can avoid a group from getting stuck in the problem identification or problem analysis stages of the process.
In Journalists, the group is invited to draft the front page of a fictional newspaper and figure out what stories deserve to be on the cover and what headlines those stories will have. By reframing how your problems and challenges are approached, you can help a team move productively through the process and be better prepared for the steps to follow.
Journalists #vision #big picture #issue analysis #remote-friendly This is an exercise to use when the group gets stuck in details and struggles to see the big picture. Also good for defining a vision.
Problem-solving techniques for developing solutions
The success of any problem-solving process can be measured by the solutions it produces. After you’ve defined the issue, explored existing ideas, and ideated, it’s time to narrow down to the correct solution.
Use these problem-solving techniques when you want to help your team find consensus, compare possible solutions, and move towards taking action on a particular problem.
- Improved Solutions
- Four-Step Sketch
- 15% Solutions
- How-Now-Wow matrix
- Impact Effort Matrix
21. Mindspin
Brainstorming is part of the bread and butter of the problem-solving process and all problem-solving strategies benefit from getting ideas out and challenging a team to generate solutions quickly.
With Mindspin, participants are encouraged not only to generate ideas but to do so under time constraints and by slamming down cards and passing them on. By doing multiple rounds, your team can begin with a free generation of possible solutions before moving on to developing those solutions and encouraging further ideation.
This is one of our favorite problem-solving activities and can be great for keeping the energy up throughout the workshop. Remember the importance of helping people become engaged in the process – energizing problem-solving techniques like Mindspin can help ensure your team stays engaged and happy, even when the problems they’re coming together to solve are complex.
MindSpin #teampedia #idea generation #problem solving #action A fast and loud method to enhance brainstorming within a team. Since this activity has more than round ideas that are repetitive can be ruled out leaving more creative and innovative answers to the challenge.
22. Improved Solutions
After a team has successfully identified a problem and come up with a few solutions, it can be tempting to call the work of the problem-solving process complete. That said, the first solution is not necessarily the best, and by including a further review and reflection activity into your problem-solving model, you can ensure your group reaches the best possible result.
One of a number of problem-solving games from Thiagi Group, Improved Solutions helps you go the extra mile and develop suggested solutions with close consideration and peer review. By supporting the discussion of several problems at once and by shifting team roles throughout, this problem-solving technique is a dynamic way of finding the best solution.
Improved Solutions #creativity #thiagi #problem solving #action #team You can improve any solution by objectively reviewing its strengths and weaknesses and making suitable adjustments. In this creativity framegame, you improve the solutions to several problems. To maintain objective detachment, you deal with a different problem during each of six rounds and assume different roles (problem owner, consultant, basher, booster, enhancer, and evaluator) during each round. At the conclusion of the activity, each player ends up with two solutions to her problem.
23. Four Step Sketch
Creative thinking and visual ideation does not need to be confined to the opening stages of your problem-solving strategies. Exercises that include sketching and prototyping on paper can be effective at the solution finding and development stage of the process, and can be great for keeping a team engaged.
By going from simple notes to a crazy 8s round that involves rapidly sketching 8 variations on their ideas before then producing a final solution sketch, the group is able to iterate quickly and visually. Problem-solving techniques like Four-Step Sketch are great if you have a group of different thinkers and want to change things up from a more textual or discussion-based approach.
Four-Step Sketch #design sprint #innovation #idea generation #remote-friendly The four-step sketch is an exercise that helps people to create well-formed concepts through a structured process that includes: Review key information Start design work on paper, Consider multiple variations , Create a detailed solution . This exercise is preceded by a set of other activities allowing the group to clarify the challenge they want to solve. See how the Four Step Sketch exercise fits into a Design Sprint
24. 15% Solutions
Some problems are simpler than others and with the right problem-solving activities, you can empower people to take immediate actions that can help create organizational change.
Part of the liberating structures toolkit, 15% solutions is a problem-solving technique that focuses on finding and implementing solutions quickly. A process of iterating and making small changes quickly can help generate momentum and an appetite for solving complex problems.
Problem-solving strategies can live and die on whether people are onboard. Getting some quick wins is a great way of getting people behind the process.
It can be extremely empowering for a team to realize that problem-solving techniques can be deployed quickly and easily and delineate between things they can positively impact and those things they cannot change.
15% Solutions #action #liberating structures #remote-friendly You can reveal the actions, however small, that everyone can do immediately. At a minimum, these will create momentum, and that may make a BIG difference. 15% Solutions show that there is no reason to wait around, feel powerless, or fearful. They help people pick it up a level. They get individuals and the group to focus on what is within their discretion instead of what they cannot change. With a very simple question, you can flip the conversation to what can be done and find solutions to big problems that are often distributed widely in places not known in advance. Shifting a few grains of sand may trigger a landslide and change the whole landscape.
25. How-Now-Wow Matrix
The problem-solving process is often creative, as complex problems usually require a change of thinking and creative response in order to find the best solutions. While it’s common for the first stages to encourage creative thinking, groups can often gravitate to familiar solutions when it comes to the end of the process.
When selecting solutions, you don’t want to lose your creative energy! The How-Now-Wow Matrix from Gamestorming is a great problem-solving activity that enables a group to stay creative and think out of the box when it comes to selecting the right solution for a given problem.
Problem-solving techniques that encourage creative thinking and the ideation and selection of new solutions can be the most effective in organisational change. Give the How-Now-Wow Matrix a go, and not just for how pleasant it is to say out loud.
How-Now-Wow Matrix #gamestorming #idea generation #remote-friendly When people want to develop new ideas, they most often think out of the box in the brainstorming or divergent phase. However, when it comes to convergence, people often end up picking ideas that are most familiar to them. This is called a ‘creative paradox’ or a ‘creadox’. The How-Now-Wow matrix is an idea selection tool that breaks the creadox by forcing people to weigh each idea on 2 parameters.
26. Impact and Effort Matrix
All problem-solving techniques hope to not only find solutions to a given problem or challenge but to find the best solution. When it comes to finding a solution, groups are invited to put on their decision-making hats and really think about how a proposed idea would work in practice.
The Impact and Effort Matrix is one of the problem-solving techniques that fall into this camp, empowering participants to first generate ideas and then categorize them into a 2×2 matrix based on impact and effort.
Activities that invite critical thinking while remaining simple are invaluable. Use the Impact and Effort Matrix to move from ideation and towards evaluating potential solutions before then committing to them.
Impact and Effort Matrix #gamestorming #decision making #action #remote-friendly In this decision-making exercise, possible actions are mapped based on two factors: effort required to implement and potential impact. Categorizing ideas along these lines is a useful technique in decision making, as it obliges contributors to balance and evaluate suggested actions before committing to them.
27. Dotmocracy
If you’ve followed each of the problem-solving steps with your group successfully, you should move towards the end of your process with heaps of possible solutions developed with a specific problem in mind. But how do you help a group go from ideation to putting a solution into action?
Dotmocracy – or Dot Voting -is a tried and tested method of helping a team in the problem-solving process make decisions and put actions in place with a degree of oversight and consensus.
One of the problem-solving techniques that should be in every facilitator’s toolbox, Dot Voting is fast and effective and can help identify the most popular and best solutions and help bring a group to a decision effectively.
Dotmocracy #action #decision making #group prioritization #hyperisland #remote-friendly Dotmocracy is a simple method for group prioritization or decision-making. It is not an activity on its own, but a method to use in processes where prioritization or decision-making is the aim. The method supports a group to quickly see which options are most popular or relevant. The options or ideas are written on post-its and stuck up on a wall for the whole group to see. Each person votes for the options they think are the strongest, and that information is used to inform a decision.
All facilitators know that warm-ups and icebreakers are useful for any workshop or group process. Problem-solving workshops are no different.
Use these problem-solving techniques to warm up a group and prepare them for the rest of the process. Activating your group by tapping into some of the top problem-solving skills can be one of the best ways to see great outcomes from your session.
- Check-in/Check-out
- Doodling Together
- Show and Tell
- Constellations
- Draw a Tree
28. Check-in / Check-out
Solid processes are planned from beginning to end, and the best facilitators know that setting the tone and establishing a safe, open environment can be integral to a successful problem-solving process.
Check-in / Check-out is a great way to begin and/or bookend a problem-solving workshop. Checking in to a session emphasizes that everyone will be seen, heard, and expected to contribute.
If you are running a series of meetings, setting a consistent pattern of checking in and checking out can really help your team get into a groove. We recommend this opening-closing activity for small to medium-sized groups though it can work with large groups if they’re disciplined!
Check-in / Check-out #team #opening #closing #hyperisland #remote-friendly Either checking-in or checking-out is a simple way for a team to open or close a process, symbolically and in a collaborative way. Checking-in/out invites each member in a group to be present, seen and heard, and to express a reflection or a feeling. Checking-in emphasizes presence, focus and group commitment; checking-out emphasizes reflection and symbolic closure.
29. Doodling Together
Thinking creatively and not being afraid to make suggestions are important problem-solving skills for any group or team, and warming up by encouraging these behaviors is a great way to start.
Doodling Together is one of our favorite creative ice breaker games – it’s quick, effective, and fun and can make all following problem-solving steps easier by encouraging a group to collaborate visually. By passing cards and adding additional items as they go, the workshop group gets into a groove of co-creation and idea development that is crucial to finding solutions to problems.
Doodling Together #collaboration #creativity #teamwork #fun #team #visual methods #energiser #icebreaker #remote-friendly Create wild, weird and often funny postcards together & establish a group’s creative confidence.
30. Show and Tell
You might remember some version of Show and Tell from being a kid in school and it’s a great problem-solving activity to kick off a session.
Asking participants to prepare a little something before a workshop by bringing an object for show and tell can help them warm up before the session has even begun! Games that include a physical object can also help encourage early engagement before moving onto more big-picture thinking.
By asking your participants to tell stories about why they chose to bring a particular item to the group, you can help teams see things from new perspectives and see both differences and similarities in the way they approach a topic. Great groundwork for approaching a problem-solving process as a team!
Show and Tell #gamestorming #action #opening #meeting facilitation Show and Tell taps into the power of metaphors to reveal players’ underlying assumptions and associations around a topic The aim of the game is to get a deeper understanding of stakeholders’ perspectives on anything—a new project, an organizational restructuring, a shift in the company’s vision or team dynamic.
31. Constellations
Who doesn’t love stars? Constellations is a great warm-up activity for any workshop as it gets people up off their feet, energized, and ready to engage in new ways with established topics. It’s also great for showing existing beliefs, biases, and patterns that can come into play as part of your session.
Using warm-up games that help build trust and connection while also allowing for non-verbal responses can be great for easing people into the problem-solving process and encouraging engagement from everyone in the group. Constellations is great in large spaces that allow for movement and is definitely a practical exercise to allow the group to see patterns that are otherwise invisible.
Constellations #trust #connection #opening #coaching #patterns #system Individuals express their response to a statement or idea by standing closer or further from a central object. Used with teams to reveal system, hidden patterns, perspectives.
32. Draw a Tree
Problem-solving games that help raise group awareness through a central, unifying metaphor can be effective ways to warm-up a group in any problem-solving model.
Draw a Tree is a simple warm-up activity you can use in any group and which can provide a quick jolt of energy. Start by asking your participants to draw a tree in just 45 seconds – they can choose whether it will be abstract or realistic.
Once the timer is up, ask the group how many people included the roots of the tree and use this as a means to discuss how we can ignore important parts of any system simply because they are not visible.
All problem-solving strategies are made more effective by thinking of problems critically and by exposing things that may not normally come to light. Warm-up games like Draw a Tree are great in that they quickly demonstrate some key problem-solving skills in an accessible and effective way.
Draw a Tree #thiagi #opening #perspectives #remote-friendly With this game you can raise awarness about being more mindful, and aware of the environment we live in.
Each step of the problem-solving workshop benefits from an intelligent deployment of activities, games, and techniques. Bringing your session to an effective close helps ensure that solutions are followed through on and that you also celebrate what has been achieved.
Here are some problem-solving activities you can use to effectively close a workshop or meeting and ensure the great work you’ve done can continue afterward.
- One Breath Feedback
- Who What When Matrix
- Response Cards
How do I conclude a problem-solving process?
All good things must come to an end. With the bulk of the work done, it can be tempting to conclude your workshop swiftly and without a moment to debrief and align. This can be problematic in that it doesn’t allow your team to fully process the results or reflect on the process.
At the end of an effective session, your team will have gone through a process that, while productive, can be exhausting. It’s important to give your group a moment to take a breath, ensure that they are clear on future actions, and provide short feedback before leaving the space.
The primary purpose of any problem-solving method is to generate solutions and then implement them. Be sure to take the opportunity to ensure everyone is aligned and ready to effectively implement the solutions you produced in the workshop.
Remember that every process can be improved and by giving a short moment to collect feedback in the session, you can further refine your problem-solving methods and see further success in the future too.
33. One Breath Feedback
Maintaining attention and focus during the closing stages of a problem-solving workshop can be tricky and so being concise when giving feedback can be important. It’s easy to incur “death by feedback” should some team members go on for too long sharing their perspectives in a quick feedback round.
One Breath Feedback is a great closing activity for workshops. You give everyone an opportunity to provide feedback on what they’ve done but only in the space of a single breath. This keeps feedback short and to the point and means that everyone is encouraged to provide the most important piece of feedback to them.
One breath feedback #closing #feedback #action This is a feedback round in just one breath that excels in maintaining attention: each participants is able to speak during just one breath … for most people that’s around 20 to 25 seconds … unless of course you’ve been a deep sea diver in which case you’ll be able to do it for longer.
34. Who What When Matrix
Matrices feature as part of many effective problem-solving strategies and with good reason. They are easily recognizable, simple to use, and generate results.
The Who What When Matrix is a great tool to use when closing your problem-solving session by attributing a who, what and when to the actions and solutions you have decided upon. The resulting matrix is a simple, easy-to-follow way of ensuring your team can move forward.
Great solutions can’t be enacted without action and ownership. Your problem-solving process should include a stage for allocating tasks to individuals or teams and creating a realistic timeframe for those solutions to be implemented or checked out. Use this method to keep the solution implementation process clear and simple for all involved.
Who/What/When Matrix #gamestorming #action #project planning With Who/What/When matrix, you can connect people with clear actions they have defined and have committed to.
35. Response cards
Group discussion can comprise the bulk of most problem-solving activities and by the end of the process, you might find that your team is talked out!
Providing a means for your team to give feedback with short written notes can ensure everyone is head and can contribute without the need to stand up and talk. Depending on the needs of the group, giving an alternative can help ensure everyone can contribute to your problem-solving model in the way that makes the most sense for them.
Response Cards is a great way to close a workshop if you are looking for a gentle warm-down and want to get some swift discussion around some of the feedback that is raised.
Response Cards #debriefing #closing #structured sharing #questions and answers #thiagi #action It can be hard to involve everyone during a closing of a session. Some might stay in the background or get unheard because of louder participants. However, with the use of Response Cards, everyone will be involved in providing feedback or clarify questions at the end of a session.
Over to you
The problem-solving process can often be as complicated and multifaceted as the problems they are set-up to solve. With the right problem-solving techniques and a mix of creative exercises designed to guide discussion and generate purposeful ideas, we hope we’ve given you the tools to find the best solutions as simply and easily as possible.
Is there a problem-solving technique that you are missing here? Do you have a favorite activity or method you use when facilitating? Let us know in the comments below, we’d love to hear from you!
thank you very much for these excellent techniques
Certainly wonderful article, very detailed. Shared!
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Chapter 3: Ethical Dilemmas and the Process of Effective Resolution
3.3 Solving Ethical Dilemmas
With values as focal point, the National Association of Social Workers has created a framework that is used by social workers to address ethical dilemmas . The framework includes six steps: [1]
- Determine whether there is an ethical issue or/and dilemma. Is there a conflict of values, or rights, or professional responsibilities?
- Identify the key values and principles involved. What meanings and limitations are typically attached to these competing values?
- Rank the values or ethical principles which – in your professional judgement – are most relevant to the issue or dilemma. What reasons can you provide for prioritizing one competing value/principle over another?
- Develop an action plan that is consistent with the ethical priorities that have been determined as central to the dilemma. Have you conferred with clients and colleagues, as appropriate, about the potential risks and consequences of alternative courses of action? Can you support or justify your action plan with the values/principles on which the plan is based?
- Implement your plan, utilizing the most appropriate practice skills and competencies. How will you make use of core social work skills such as sensitive communication, skillful negotiation, and cultural competence?
- Reflect on the outcome of this ethical decision making process. How would you evaluate the consequences of this process for those involved: client(s), professional(s), and agency(ies)?
In comparison, Evans and MacMillan (2014) have developed a framework involving 10 steps to make ethical decision-making efficient and practical. This framework is specific to law enforcement officers and addresses the consideration of laws, regulations, policy, and procedures that other frameworks assume will be followed, but in law enforcement are very important to avoid charges and allow cases against suspects to proceed. The framework concludes with a follow-up to determine the effectiveness of the course of action taken by the officer.
As a simple alternative to these frameworks, students should consider the following framework:
- Establish the facts surrounding the ethical dilemma. Facts are important in law enforcement. To investigate all cases, officers must rely on facts to guard against misinformation and cognitive biases. This is also true in ethical dilemmas that we face. If the facts are not known to us, we must investigate everything that surrounds the dilemma to ensure we are acting on the right information. Avoid acting on rumours and gossip by verifying information through factual information and evidence.
- Determine your legal obligations and duties. We must be sure what our professional and legal obligations are. Professional and legal obligations will likely allow us to easily decide on a course of action to take in an ethical dilemma. However, while professional and legal obligations may not always require a course of action that coincides with these obligations, our awareness of any professional and legal obligations must be known to allow us to be fully cognizant of the consequences of our actions should we choose to ignore professional or legal obligations.
- Establish the interested participants involved. It is important to know who will be impacted by the course of action that we decide upon. Often the primary participants are easy to identify and it is the secondary participants that are often not considered. These may include friends, families, or employees that are related somehow to the primary participants in the ethical dilemma. Knowing the impact of the decision made to secondary participants may be particularly important for a decision made with utilitarian underpinnings; where the rights of those who are not part of the majority may not be considered.
- Determine the ethical values of each participant. Determining ethical values is important to allow us an understanding of what is truly at stake. A participant in an ethical dilemma may value loyalty as the most important value. However, another participant may value equality as the more important value. When considered, the value of loyalty may not compare with equality, depending upon the ethical dilemma.
- Consider normative ethical theories as an aide to determine a course of action. When considering options, normative ethical theories may assist us in determining the consequences of actions, or the duties we may be obligated to follow that fall outside of the laws, rules, and procedures. We may also assess whether the decision we are considering is rational from another perspective we have not considered. We may also settle on an option, and rely on an ethical theory to assist us in articulating the reasoning behind the option we have chosen.
- Consider options that would be ethically sound. There may be several options to consider, and each option ought to be considered critically by determining what harm it would cause and what values the person being harmed holds. The participant should consider the positives and negatives of the decision and determine the risks and benefits associated with each option, as well as the benefits of each action, with these values in mind.
- Would the action taken be well received if it was on the front page of a newspaper? While this should be a consideration, keep in mind that often the right decision may be the least popular in public opinion.
- If the decision is job-related, would the agency or company you work for still hire you if it knew you would make this decision? If the answer is yes, then this should give weight to the decision you are about to make.
- If the decision is not job-related, would the agency you would like to work for still hire you if it knew all the facts surrounding the dilemma and the decision you would make? If the answer is yes, then this should give weight to the decision you are about to make.
Implement options after considering steps 1-7.
- Taken in whole from the National Association of Social Workers. ↵
Ethics in Law Enforcement by Steve McCartney and Rick Parent is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.
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5 Steps to Make your Problem-Solving Process Easier
No matter what kind of job you have, the chances of a problem arising at some point is almost inevitable. If the problem isn’t taken care of immediately with proper action, it could potentially get worse. No one wants to be in a hostile work environment, so it’s crucial to be aware of how to properly solve an issue. Here are five steps guaranteed to make your problem-solving process easier.
What is Problem Solving?
Before we can even begin to explain what problem-solving is, we need to define what a problem is. A problem is any type of disturbance from normality that is hindering progress. A problem can be time-consuming and energy wasting. They can be as little as a disagreement, to as big as miscommunication that costs millions of dollars to fix. Another problem-solving technique is identifying if whether it prevents you from reaching your goal. No matter the size of the issue, it is always solved using a similar process in which you identify it at hand, gather possible solutions, choose the best possible outcome, and implement it moving forward. That is commonly known as the problem-solving process. If a company neglects any problems in the workplace, it could potentially get worse and cause failure.
Problem-solving and failure go hand in hand. If there are any hiccups in that process, everything can easily go awry. For example, if a sales team isn’t aware of the latest quota change from the last quarter, the team’s expectations might not be met. That is why we spend so much time and attention on problem-solving because it can be the difference in a successful business and a failure. According to Forbes.com , some common barriers that will prevent companies from being successful problem-solvers include the inability to see a problem, lack of respect, and failure to include all parts involved with the problem, among others. Here are some other ways a business can fail:
- Training employees is not a priority
- Employees not following proper policies and procedures
- Poorly written guidelines
- Employees placed in the wrong position
- Quality control practices aren’t met
- Maintenance of equipment is ignored
- Poor design or engineering of a product or machinery
- Cheap or low-quality materials
There are certain skills required by any individual who partakes in the problem-solving process. These skills include being able to do research and make not only rational decisions but decisions involved with emotional intelligence . Risk management is another skill that is imperative to making a successful decision in business. Your team should all be able to work together in the problem-solving process. It’s very possible your problems start at one of these skills if anyone in your team is lacking them. In fact, in 2013 the Association of American Colleges and Universities released a report claiming that 93 percent of employers agree, “a candidate’s demonstrated capacity to think critically, communicate clearly, and solve complex problems is more important than their undergraduate major.” Here are a few more skills required to problem-solve:
- Team building
- Good communication
- Active listening
- Brainstorming
There are many benefits to problem-solving in an organization. First, it creates an environment that is hostile-free and encourages everyone to speak their mind when a problem occurs. Team building can be stronger when resolving problems together as a team. Ultimately, problem-solving increases confidence and empowerment within the workforce. If an entire organization can problem-solve efficiently, they can spend their time more wisely.
5 Steps to Better Problem-Solving
Step 1: identify the problem.
As obvious as it may sound, the first step in the problem-solving process is to identify the root of the issue. Unfortunately, the problem isn’t always easily identifiable and requires extra analysis to get the source. One method used in this step is Toyota’s “Five Whys” technique . In the event of a problem, ask yourself the five whys: Who, What, When, Why, and Where. By asking yourself these questions in associations with the problem, you will discover exactly where the problem is coming from. If that isn’t enough, there are three steps you can take to better identify a problem.
- Explore the situation : Expand on the problem to try to get to the bottom of it. If the source of the problem is coming from an individual, try putting yourself in their shoes
- Draft a problem statement : Reduce the problem into the simplest of terms and put it on paper
- Try to answer the question : “why is this current situation a problem?”- Once you’ve boiled it down to one source, you will then be able to better assess the situation better
Let’s take a coffee shop for example. Say the coffee shop has slowly been losing business in the last quarter, despite having a very successful two years prior. The owners of the restaurant want to better understand why they are suddenly losing business. First, the owner explores the situation and looks at all the possible reasons this is happening. They look at their employees, their daily routines, and training procedures; while also observing the local competition and any regional situations, such as being in a college town. After looking at every single possible reason, the owners figure out what is causing the problem and write it down: It’s the summer and most of their clientele (students) are away for the summer. Finally, the owners answer the question “why is this current situation a problem?” After further evaluation, they realize the problem is a limited market and must expand to get more business.
Step 2: Generate potential solutions
The next step is to create a list of possible solutions to the problem you’ve discovered. There are many ways to generate solutions. Brainstorming is the first way to think of a potential answer. This can be done individually or in a group setting. The latter is recommended, because the more input, the better, simply because different perspectives can lead to different solutions. There are more models for this situation that can help you create solutions, including:
- Means-End Analysis – An artificial intelligence analysis that looks at the ultimate goal and finds the best possible way of attaining that goal
- PDSA Model – Also known as the Plan Do Study Act Model. This is the shorthand version of the problem-solving method, where you start with planning, test the theory, study the results, and act based upon observations. This process is done several times
- Root Cause Analysis – This method is used to get to the root of the problem. There are four steps to find the root cause. Identify the problem, establish a timeline, distinguish between root causes and other factors, and create a cause graph
- Lean Prioritization Method – This method is created within a two by two matrix with the X and Y-axis ranging from low to high. The X-axis is labeled as effort, while the Y-axis is labeled value. Inside the two by two matrix label the four squares with quick wins, big bets, maybes, and time sinks. Evaluate all of the problems and situations and put them in the appropriate categories to figure out where to focus your attention
Step 3: Choose one solution
Once a list of possible solutions has been made, it’s time to put your decision-making skills to the test. In order to find the best solution for the problem, analyze every possible resolution and decide which is best for the situation you are in. One might want to consider many elements before choosing one solution. These elements include efficacy, practicality, timeliness, resources, and cost. Also, consider who is involved before making any final decisions. The process of elimination is another good way to narrow your choices down. This is also where risk management will be used to help make a decision. Like brainstorming, choosing a solution doesn’t have to be done alone.
Step 4: Implement the solution you’ve chosen
Now that a solution has been chosen, it’s time to implement it throughout the necessary departments, areas, or people. On average, it takes about 66 days for a new habit to become automatic, according to a recent study that was published in the European Journal of Social Psychology. In other words, change doesn’t happen overnight. To make a new change to any business, planning, patience, and persistence are all required.
- Planning- Understand that timing is everything, and when a company implements a new strategy, they often take a lot of time to implement the new idea. Decide on clear goals, address any issues or possible obstacles, and create a plan. It’s also very important to practice proper communication skills across the entire organization so that everyone knows what is expected
- Patience – Change is scary and not everyone is always acceptable to the idea, that’s why it’s important to stay patient throughout this process. Try implementing the plan little by little so that employees aren’t overwhelmed. Encourage each other and make sure everyone understands the goal behind this change, and that everyone is participating in making that change possible
- Persistence – Finally, continuous application and monitorization of these changes are crucial. As an employer, you must make sure all of your employees are practicing the changes every week, so that old habits can fall behind. If an employee is being inconsistent, you might have another problem on your hands
Step 5: Evaluate results
The final part of the problem-solving process is to analyze the results. This can be done after a couple of weeks, months, or years, depending on what you are trying to change or achieve. It’s important to remember why this problem started in the first place and how it was affecting the company. Ask yourself any of the following questions to better evaluate results:
- Are any of our processes being interrupted by the previous problem?
- Are there any new problems to arise since this process has begun?
- Is there a possibility the issue can return?
- Is everyone aware of the original problem, the solution created, and why it was created?
- Do you need to change any policy, procedure, or personnel to avoid this from happening again?
Sometimes it is necessary to start the process completely over. To make the problem-solving process easier, it’s best to simplify the solution as much as possible. Try to focus on the solution rather than the problem. Finally, be in the correct mentality to want to change. This includes having the right mindset language, both are positive and open-minded. With enough practice, any problem can be solved.
Problems will always occur no matter what situation you are in, so it’s important to know how to conquer them before they get out of hand. Do you want to learn more about the process of problem-solving and how you can apply it to fix any problem in your company? You can learn about different strategies that will help alleviate any workplace problems in KnowledgeCity’s course on Problem Solving in 5 Easy Steps . Use this information to take control of any problems in the work-life, or even at home.
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Thanks for this terrific article! I am a mentor to undergraduate students and I was researching problem solving philosophies, methodologies, and techniques. This was a perfect resource! I like the way that you provided practical examples and also provided various methodologies and systems for problem solving. I think that’s always good to provide people options as certain methodologies may be best geared for certain disciplines, industries, or situations.
I took special note of these key quotes:
“because the more input, the better, simply because different perspectives can lead to different solutions.”
“It’s important to remember why this problem started in the first place and how it was affecting the company.”
Thanks again for making this great information publicly available.
Clifford Thornton
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The 4 most effective ways leaders solve problems.
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With as many problems as we are all faced with in our work and life, it seems as if there is never enough time to solve each one without dealing with some adversity along the way. Problems keep mounting so fast that we find ourselves taking short-cuts to temporarily alleviate the tension points – so we can move onto the next problem. In the process, we fail to solve the core of each problem we are dealt; thus we continuously get caught in the trap of a never-ending cycle that makes it difficult to find any real resolutions. Sound familiar?
Problem solving is the essence of what leaders exist to do. As leaders, the goal is to minimize the occurrence of problems – which means we must be courageous enough to tackle them head-on before circumstances force our hand. We must be resilient in our quest to create and sustain momentum for the organization and people we serve. But the reality of the workplace finds us dealing with people that complicate matters with their corporate politicking, self-promotion, power-plays and ploys, and envy. Silos, lack of budgets and resources, and many other random acts or circumstances also make it harder for people to be productive.
Competitors equally create problems for us when they unexpectedly convert a long-standing client, establish a new industry relationship, or launch a new product, brand or corporate strategy. Mergers & acquisitions keep us on our toes and further distract us from solving existing problems by creating new ones.
As Karl Popper , one of the most influential 20 th century philosophers of science, once eloquently stated, “All life is problem solving.” 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 .
Leaders who lack this wisdom approach problems with linear vision – thus only seeing the problem that lies directly in front of them and blocking the possibilities that lie within the problem. As such, they never see the totality of what the problem represents; that it can actually serve as an enabler to improve existing best practices, protocols and standard operating procedures for growing and competing in the marketplace. They never realize that, in the end, all problems are the same – just packaged differently .
A leader must never view a problem as a distraction, but rather as a strategic enabler for continuous improvement and opportunities previously unseen.
When I launched my first venture in the food industry , we had a problem with the adhesion of the labels to the glass jar packaging of our products that affected nearly 20% of an initial shipment. As circumstances would have it, this was the first shipment to a new client that was “testing” our new products in 200 stores with an opportunity to expand our distribution to over 2500 stores nationally. Instead of panicking, we took a problem solving approach that involved multiple steps and resulted in a full-blown change management effort with our label supplier, manufacturer, trucking company and client. Rather than viewing this problem simply as a hurdle that could potentially lose us the client, we took proactive measures (and a financial investment) to show our new client that we were capable of not only solving the problem – but earning their trust by responding promptly and efficiently with a comprehensive step-by-step incident report that included our change management efforts.
This experience taught us many lessons about our company and helped us to avoid many unforeseen problems. The ROI from how we handled this problem helped open our eyes to many elements that were previously being overlooked – and in the long run it helped enable us to grow the business.
Whether you are a leader for a large corporation or a small business owner, here are the four most effective ways to solve problems.
1. Transparent Communication
Problem solving requires transparent communication where everyone’s concerns and points of view are freely expressed. I’ve seen one too many times how difficult it is to get to the root of the matter in a timely manner when people do not speak-up.
Yes, communication is a fundamental necessity. That is why when those involved in the problem would rather not express themselves – fearing they may threaten their job and/or expose their own or someone else’s wrong-doing – the problem solving process becomes a treasure hunt. Effective communication towards problem solving happens because of a leader’s ability to facilitate an open dialogue between people who trust her intentions and feel that they are in a safe environment to share why they believe the problem happened as well as specific solutions.
Once all voices have been heard and all points of view accounted for, the leader (with her team) can collectively map-out a path toward a viable and sustainable solution. As fundamental as communication may sound, don’t ever assume that people are comfortable sharing what they really think . This is where a leader must trust herself and her intuition enough to challenge the team until accountability can be fairly enforced and a solution can been reached.
2. Break Down Silos
Transparent communication requires you to break down silos and enable a boundary-less organization whose culture is focused on the betterment of a healthier whole. Unnecessary silos invite hidden agendas rather than welcome efficient cross-functional collaboration and problem solving.
Organizational silos are the root cause of most workplace problems and are why many of them never get resolved. This is why today’s new workplace must embrace an entrepreneurial spirit where employees can freely navigate and cross-collaborate to connect the problem solving dots; where everyone can be a passionate explorer who knows their own workplace dot and its intersections . When you know your workplace dot, you have a much greater sense of your sphere of influence . This is almost impossible to gauge when you operate in silos that potentially keep you from having any influence at all.
In a workplace where silos exist, problem solving is more difficult because you are more likely dealing with self-promoters – rather than team players fostered by a cross functional environment.. When you operate in a siloed environment where everyone wants to be a star, it becomes increasingly difficult to help make anything or anyone better. This is when problem solving becomes a discouraging task.
Breaking down silos allows a leader to more easily engage their employees to get their hands dirty and solve problems together . It becomes less about corporate politicking and more about finding resolutions and making the organization stronger.
3. Open-minded People
Breaking down silos and communication barriers requires people to be open-minded. In the end, problem solving is about people working together to make the organization and the people it serves better. Therefore, if you are stuck working with people that are closed-minded, effective problem solving becomes a long and winding road of misery.
There are many people in the workplace that enjoy creating unnecessary chaos so that their inefficiencies are never exposed. These are the types of people ( loafers and leeches ) that make it difficult for problems to get solved because they slow the process down while trying to make themselves look more important. Discover the lifters and high-potential leaders within the organization and you will see examples of the benefits of being open-minded and how this eventually leads to more innovation and initiative.
Open-minded people see beyond the obvious details before them and view risk as their best friend . They tackle problems head-on and get on with the business of driving growth and innovation. Close-minded employees turn things around to make it more about themselves and less about what is required to convert a problem into a new opportunity.
With this explanation in mind, carefully observe the actions of others the next time you are dealt a real problem.
4. A Solid Foundational Strategy
Without strategy, change is merely substitution, not evolution. A solid strategy must be implemented in order to solve any problem. Many leaders attempt to dissect a problem rather than identify the strategy for change that lies within the problem itself.
Effective leaders that are comfortable with problem solving always know how to gather the right people, resources, budget and knowledge from past experiences. They inspire people to lift their game by making the problem solving process highly collaborative; for them, it’s an opportunity to bring people closer together. I’ve always believed that you don’t know the true potential and character of a person until you see the way they solve problems.
Effective leaders connect the dots and map-out a realistic plan of action in advance. They have a strategy that serves as the foundation for how the problem will be approached and managed. They anticipate the unexpected and utilize the strengths of their people to assure the strategy leads to a sustainable solution.
Never shoot from the hip when problem solving. Avoid guessing. Take enough time to step back and assess the situation and the opportunities that each problem represents. Make the problem solving process more efficient by recognizing that each problem has its own nuances that may require a distinct strategy towards a viable resolution.
You know that you have great leadership in your organization when problem solving becomes a seamless process that enables the people and the organization to grow and get better. If problem solving creates chaos, you may have a serious leadership deficiency.
Problem solving is the greatest enabler for growth and opportunity. This is why they say failure serves as the greatest lesson in business and in life. Be the leader that shows maturity, acts courageously, and requires accountability. Applying each of these lessons can help you become a master problem solver. Each experience teaches us all new things. Embrace problem solving and the many unseen treasures it represents.
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What is the Competing Values Framework? Theory explained
Competing Values Framework: this article describes the basics of Competing Values Framework , developed by Robert Quinn and Kim Cameron in a practical way. After reading you will understand the basics of this powerful leadership and culture change tool, used for human resource development .
Organisational culture
Besides the issue of how an organisation is structured in terms of hierarchical layers, department classification and management teams, in the 1980s, more and more research started to focus on the interpersonal relationships between employees in bureaucratic organisations.
Organisational culture is born. Organisational culture is considered an important factor in influencing employee performance. An organisational culture is very abstract and is more about feeling than tangible evidence.
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Researchers Robert Quinn and Kim Cameron came to the conclusion that one must examine two factors when describing an organisation’s cultural typology; the degree of flexibility versus controlling behaviour and internal focus versus external orientation.
The type of culture has an effect on the organizational effectiveness. The competing values framework is still is one of the most recognized management theories about organizational culture.
The Competing Values Framework, developed by Robert Quinn and Kim Cameron gives a classification of four corporate culture types, which indicate how a company operates, how employees collaborate and what the corporate values are.
Via i.e. an Organizational Culture Inventory (OCI) tool, a method to assess organizational culture, the Competing Values Framework is filled with assessment results of the now and future state.
Figure 1 – Competing Values Framework
Competing Values Framework : Clan culture
Clan culture : high degree of flexibility and internally focused. In these organisations, the relationship between people is central. There is a friendly working environment, in which employees have a lot in common. Think of start-ups, family businesses or small ICT companies.
These organisations resemble a large family. The leaders of these organisations are considered to be mentors or even father figures, who employees can approach very easily. These organisations are held together by loyalty and tradition.
Mutual commitment is large and operations focus on human resources. Relationships, loyalty and morality are very strong and success is partly defined on the basis of customer satisfaction. The organisation places great value on teamwork, participation, flexibility and consensus.
Competing Values Framework : Hierarchical culture
Hierarchical culture : high degree of controlling behaviour and internally focused.
Hierarchical cultures are extremely formal and have a structured working environment. Government agencies are perfectly suited for this culture. Procedures determine employee actions and the focus is on managing control systems.
As a result, there are clearly structured hierarchical layers present in the organisation. All work processes are efficiently organised, so that everything is under control and can easily be adjusted. It is important that the organisation runs smoothly. Formal rules and policies stabilise the organisation.
Stability and results are associated with efficient and smooth execution of tasks. Success is generated from reliable supply, tight scheduling and low costs.
Competing Values Framework : Market culture
Market culture : high degree of controlling behaviour and externally focused.
In these type of organisations it is all about results and the completion of the work. Employees are competitive persons and extremely goal-oriented. Examples of such organisations are trade associations, insurance companies and banks. Managers are often demanding and closely follow employee activities.
Simultaneously, there is lots of mutual competition. Within these organisations, the emphases is on reputation, success and winning. They will always strive to achieve measurable goals and objectives. Success is translated into market share and penetration.
To the outside world, these organisations want to profile themselves through competitive pricing and market leadership. To stay ahead of the competition, there is ruthless competition to maintain customer retention. Customer service and satisfaction are terms that all employees are aware of.
Competing Values Framework : Adhocracy culture
Adhocracy culture : high degree of flexibility and externally focused.
In these organisations innovation is key; constant innovation with the aim to remain visible in the market.
Research organisations such as the Dutch TNO or marketing and advertising agencies usually have such a culture. There is a dynamic, enterprising and creative work environment, in which employees are encouraged to strive for innovation and use their creativity to create new ideas.
Besides innovators, the managers are also risk takers. Such organisations wish to be leaders and at the forefront of new products and/or services. For this reason, they encourage individual initiative and allow the freedom in determining what tasks to execute.
Competing Values Framework : Styles of management
Typical of the approach of Quinn and Cameron is the fact that they associate every culture with a management style, making it clear how a corporate culture actually runs it business:
Clan culture
The management of teams within a Clan culture aims to promote effective and smooth co-operation, all in order to achieve positive results. There is great attention to interpersonal relationships and therefore there is a lot of supportive feedback. Employees actively listen to each other and try to solve interpersonal problems.
The personal development of employees is also key, so that through targeted training they can enhance their capabilities.
Employment contracts are long-term and colleagues are extremely loyal and actively help each other to achieve better performances. The same applies to managers; they are very much interested in mentorship and trainee programmes.
Hierarchical culture
In this culture, the communal approach to work is central. The coordinating management team aims for execution of tasks according to strict guidelines. It is especially essential that all activities are aligned with each other.
Managers mainly have a guiding and monitoring role and must ensure that progress is properly monitored. When work is not executed according to procedure, managers must hold employees accountable.
Market culture
Because this culture mainly focuses on its market position relative to competitors, it is important that employees are aware of the company’s position and are part of the company’s appearance to the outside world.
Their appearance towards customers and suppliers is therefore very important. The managers’ job is primarily to inspire employees and make sure they maintain positive contacts with external relationships.
As a result, there is constant attention for the relationship with the customer. Managers assess employees accordingly. Employees are therefore motivated and inspired to think and act pro actively in order to exceed customer expectations.
Adhocracy culture
This culture within the Competing Values Framework is all about forward-looking management. The vision for the future and the clear transfer thereof to employees is crucial, so that management can internally adapt at any level.
Because an adhocracy is all about innovation, management aims to continuously improve its employees. As a result, there is a focus on improvement processes, flexibility and the challenging of employees to constantly aim for innovation.
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It’s Your Turn
What do you think? Is the Competing Values Framework applicable in today’s modern management environment? Do you recognize the practical explanation or do you have more additions? What are your success factors regarding the use of the Competing Values Framework? What do you know about other culture models, like the internal process model, the rational goal model or the open system model?
Share your experience and knowledge in the comments box below.
More information
- Cameron, K. S. & Quinn, R. E. (2005). Diagnosing and changing organizational culture: Based on the competing values framework . John Wiley & Sons .
- Goodman, E. A., Zammuto, R. F. & Gifford, B. D. (2001). The competing values framework: Understanding the impact of organizational culture on the quality of work life. Organization Development Journal , 19(3), 58.
- Hooijberg, R. & Petrock, F. (1993). On cultural change: Using the competing values framework to help leaders execute a transformational strategy . Human resource management, 32(1), 29-50.
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Published on: 04/06/2017 | Last update: 11/03/2022
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One response to “what is the competing values framework theory explained”.
We always have a combination of cultures, the question is what would be the optimized combination.
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