problem solving in leadership

• Business Essentials
• Leadership & Management
• Credential of Leadership, Impact, and Management in Business (CLIMB)
• Entrepreneurship & Innovation
• Digital Transformation
• Finance & Accounting
• Business in Society
• For Organizations
• Support Portal
• Media Coverage
• Founding Donors
• Leadership Team

• Harvard Business School →
• HBS Online →
• Business Insights →

Business Insights

Harvard Business School Online's Business Insights Blog provides the career insights you need to achieve your goals and gain confidence in your business skills.

• Career Development
• Communication
• Decision-Making
• Earning Your MBA
• Negotiation
• News & Events
• Productivity
• Staff Spotlight
• Student Profiles
• Work-Life Balance
• AI Essentials for Business
• Alternative Investments
• Business Analytics
• Business Strategy
• Business and Climate Change
• Creating Brand Value
• Design Thinking and Innovation
• Digital Marketing Strategy
• Disruptive Strategy
• Economics for Managers
• Entrepreneurial Marketing
• Entrepreneurship Essentials
• Financial Accounting
• Global Business
• Launching Tech Ventures
• Leadership Principles
• Leadership, Ethics, and Corporate Accountability
• Leading Change and Organizational Renewal
• Leading with Finance
• Management Essentials
• Negotiation Mastery
• Organizational Leadership
• Power and Influence for Positive Impact
• Strategic Financial Analysis
• Strategy Execution
• Sustainable Business Strategy
• Sustainable Investing
• Winning with Digital Platforms

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

• 17 Jan 2023

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

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

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

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

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

Access your free e-book today.

What Is Problem-Solving in Business?

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

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

Design Thinking

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

The design thinking process has four stages :

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

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

Creative Problem-Solving

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

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

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

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

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

Why Is Problem-Solving Important for Leaders?

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

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

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

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

Related: 5 Design Thinking Skills for Business Professionals

4 Problem-Solving Skills All Leaders Need

1. problem framing.

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

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

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

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

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

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

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

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

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

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

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

Related: 3 Effective Methods for Assessing Customer Needs

3. Breaking Cognitive Fixedness

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

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

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

4. Creating a Psychologically Safe Environment

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

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

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

How to Build Problem-Solving Skills

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

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

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

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

About the Author

Grab Your Free Copy of The State of Leadership Development Report 2024

Problem-solving in Leadership: How to Master the 5 Key Skills

The role of problem-solving in enhancing team morale, the right approach to problem-solving in leadership, developing problem-solving skills in leadership, leadership problem-solving examples.

Other Related Blogs

What’s the Role of Problem-solving in Leadership?

• Getting to the root of the issue:  First, Sarah starts by looking at the numbers for the past few months. She identifies the products for which sales are falling. She then attempts to correlate it with the seasonal nature of consumption or if there is any other cause hiding behind the numbers. 
• Identifying the sources of the problem:  In the next step, Sarah attempts to understand why sales are falling. Is it the entry of a new competitor in the next neighborhood, or have consumption preferences changed over time? She asks some of her present and past customers for feedback to get more ideas. 
• Putting facts on the table:  Next up, Sarah talks to her sales team to understand their issues. They could be lacking training or facing heavy workloads, impacting their productivity. Together, they come up with a few ideas to improve sales. 
• Selection and application:  Finally, Sarah and her team pick up a few ideas to work on after analyzing their costs and benefits. They ensure adequate resources, and Sarah provides support by guiding them wherever needed during the planning and execution stage. 
• Identifying the root cause of the problem.
• Brainstorming possible solutions.
• Evaluating those solutions to select the best one.
• Implementing it.

• Analytical thinking:   Analytical thinking skills refer to a leader’s abilities that help them analyze, study, and understand complex problems. It allows them to dive deeper into the issues impacting their teams and ensures that they can identify the causes accurately. 
• Critical Thinking:  Critical thinking skills ensure leaders can think beyond the obvious. They enable leaders to question assumptions, break free from biases, and analyze situations and facts for accuracy. 
• Creativity:  Problems are often not solved straightaway. Leaders need to think out of the box and traverse unconventional routes. Creativity lies at the center of this idea of thinking outside the box and creating pathways where none are apparent. 
• Decision-making:  Cool, you have three ways to go. But where to head? That’s where decision-making comes into play – fine-tuning analysis and making the choices after weighing the pros and cons well. 
• Effective Communication:  Last but not at the end lies effective communication that brings together multiple stakeholders to solve a problem. It is an essential skill to collaborate with all the parties in any issue. Leaders need communication skills to share their ideas and gain support for them.

How do Leaders Solve Problems?

Business turnaround, crisis management, team building.

Process improvement

Ace performance reviews with strong feedback skills..

Master the art of constructive feedback by reviewing your skills with a free assessment now.

Why is problem solving important?

What is problem-solving skills in management, how do you develop problem-solving skills.

Top 15 Tips for Effective Conflict Mediation at Work

Top 10 games for negotiation skills to make you a better leader, manager effectiveness: a complete guide for managers in 2024, 5 proven ways managers can build collaboration in a team.

Get on a FREE 15 minute call to get business strategy advice

Why Problem-Solving Skills Are Essential for Every Leader

• Updated December 18, 2024
• Posted in Problem Solving
• Tagged as Problem Solving
• 9 mins read

The ability to solve problems effectively is one of the most critical skills for any leader, regardless of industry or role.

In this comprehensive guide, we’ll explore why problem-solving skills are so vital for leaders and how you can develop and hone these abilities to become a more effective and successful leader.

We’ll dive into real-world examples, practical tips, and actionable strategies to help you tackle even the most complex problems with ease.

Introduction

A Harvard Business Review study ranked problem-solving as the third most important skill (out of 16) that influences a leader’s success

In today’s fast-paced and ever-evolving business world, the ability to solve problems effectively is a make-or-break skill for leaders.

Whether you’re navigating a global pandemic, adapting to shifting market demands, or addressing internal organizational challenges, the capacity to identify, analyze, and resolve problems is paramount.

Effective problem-solving is more than just finding a quick fix; it’s about understanding the root causes of issues, considering multiple perspectives, and developing sustainable solutions that align with your organization’s goals and values.

Leaders who excel at problem-solving can better navigate change, make informed decisions, foster innovation, build trust and credibility, and ultimately maximize efficiency and productivity.

What Are Problem-Solving Skills?

Problem-solving skills refer to the cognitive, analytical, and creative abilities that enable an individual to identify, analyze, and resolve complex challenges.

These skills involve a range of competencies, including critical thinking, analytical reasoning, creativity, communication, and adaptability.

At their core, problem-solving skills allow leaders to:

– Clearly define and understand the problem at hand – Gather and analyze relevant data and information – Identify potential solutions and evaluate their feasibility – Implement and monitor the chosen solution – Adapt and adjust as necessary based on ongoing feedback and results

Why Are Problem-Solving Skills Essential for Leaders?

Navigating change and uncertainty.

The business world is constantly evolving, and leaders who can effectively navigate change and uncertainty are better positioned to succeed.

Problem-solving skills enable leaders to identify potential threats and opportunities, adapt to new situations, and develop strategies to address emerging challenges.

For example, adaptive leadership necessitates problem-solving abilities when dealing with change and uncertainty.

Making Informed Decisions

Effective problem-solving skills are crucial for making informed decisions that drive organizational success.

Leaders who can analyze complex situations, consider multiple perspectives, and weigh the potential consequences of various courses of action are better equipped to make strategic decisions that align with their organization’s goals and values.

A Harvard Business Review study  suggests that involving more people in decision-making from the start can lead to more effective decisions

Fostering Innovation

In today’s competitive market, innovation is key to staying ahead of the curve. Problem-solving skills are essential for fostering a culture of innovation within an organization.

Leaders who can identify new challenges and opportunities, think creatively, and develop innovative solutions are better positioned to drive growth and success.

For example, top financially performing companies understand design (which involves problem-solving) as a top management issue.

Building Trust and Credibility

Leaders who demonstrate strong problem-solving skills build trust and credibility within their organizations and with stakeholders.

By effectively addressing challenges and finding sustainable solutions, leaders can establish themselves as competent, reliable, and trustworthy.

Maximizing Efficiency and Productivity

Effective problem-solving skills can help leaders streamline processes, eliminate inefficiencies, and maximize productivity within their organizations.

By identifying and resolving issues that hinder progress or waste resources, leaders can optimize operations and drive improved performance.

Key Problem-Solving Skills for Leaders

While problem-solving encompasses a broad range of competencies, several key skills are particularly important for leaders:

Critical Thinking

Critical thinking is the ability to analyze information objectively, question assumptions, and consider multiple perspectives. Leaders who possess strong critical thinking skills can better evaluate situations, identify potential biases, and make well-informed decisions.

Analytical Reasoning

Analytical reasoning involves breaking down complex problems into smaller, more manageable components and analyzing data and information to identify patterns, trends, and potential solutions. Leaders with strong analytical skills can effectively assess situations and develop strategic plans of action.

Creativity and Innovation

Creativity and innovation are essential for developing novel solutions to complex problems. Leaders who can think outside the box, generate fresh ideas, and approach challenges from unique angles are better equipped to address difficult situations and drive innovation within their organizations.

Communication and Collaboration

Effective problem-solving often requires collaboration and teamwork. Leaders who possess strong communication skills can clearly articulate challenges, gather diverse perspectives, and facilitate productive discussions to develop comprehensive solutions.

Adaptability and Flexibility

In today’s rapidly changing business environment, adaptability and flexibility are crucial. Leaders who can quickly adjust to changing circumstances, pivot strategies, and embrace new approaches are better positioned to navigate uncertainty and overcome obstacles effectively.

Developing Your Problem-Solving Skills

While some individuals may naturally possess stronger problem-solving abilities, these skills can be developed and honed over time. Here are some strategies for improving your problem-solving skills as a leader:

Seek Out Challenges

Actively seeking out challenges and stepping outside your comfort zone can help you develop and refine your problem-solving skills. Embrace opportunities to tackle complex problems, and don’t shy away from situations that require creative thinking and innovative solutions.

Learn from Failures and Mistakes

Failure is an inevitable part of the problem-solving process. Rather than viewing mistakes as setbacks, embrace them as opportunities for learning and growth. Analyze what went wrong, identify areas for improvement, and use those insights to refine your approach in the future.

Embrace Continuous Learning

Continuous learning is essential for staying up-to-date with the latest trends, best practices, and emerging challenges in your industry. Seek out professional development opportunities, attend workshops and seminars, and engage in self-study to expand your knowledge and skills.

Surround Yourself with Diverse Perspectives

Effective problem-solving often requires considering multiple perspectives and viewpoints. Surround yourself with a diverse team or network of individuals with different backgrounds, experiences, and areas of expertise. Encourage open dialogue and collaboration to foster a well-rounded approach to problem-solving.

Practice Mindfulness and Self-Awareness

Mindfulness and self-awareness can enhance your problem-solving abilities by helping you stay present, manage stress and emotions, and maintain a clear and focused mindset. Incorporate mindfulness practices, such as meditation or journaling, into your routine to cultivate greater self-awareness and emotional intelligence.

Case Studies: Leaders Who Excelled at Problem-Solving

To illustrate the importance of problem-solving skills in leadership, let’s explore a few real-world examples of leaders who excelled in this area:

Steve Jobs (Apple Inc.)

Steve Jobs was renowned for his ability to identify problems and develop innovative solutions that disrupted entire industries.

His visionary approach to problem-solving led to the creation of groundbreaking products like the iPhone, iPad, and MacBook Air, revolutionizing the way we interact with technology.

Mary Barra (General Motors)

As the CEO of General Motors, Mary Barra faced significant challenges, including a major recall crisis and shifting consumer demands.

Her strong problem-solving skills enabled her to navigate these obstacles effectively, implement strategic changes, and position GM as a leader in the electric vehicle market.

Jacqueline Novogratz (Acumen)

Jacqueline Novogratz, founder and CEO of Acumen, has dedicated her career to solving global poverty through social entrepreneurship.

Her ability to identify and address complex socio-economic challenges has enabled Acumen to invest in sustainable solutions that have improved the lives of millions of people around the world.

– Problem-solving skills are essential for leaders in any industry, enabling them to navigate change, make informed decisions, foster innovation, build trust and credibility, and maximize efficiency and productivity. – Key problem-solving skills for leaders include critical thinking, analytical reasoning, creativity and innovation, communication and collaboration, and adaptability and flexibility. – Developing problem-solving skills requires actively seeking out challenges, learning from failures and mistakes, embracing continuous learning, surrounding oneself with diverse perspectives, and practicing mindfulness and self-awareness. – Leaders who excel at problem-solving, such as Steve Jobs, Mary Barra, and Jacqueline Novogratz, have demonstrated the ability to identify and address complex challenges, driving success and innovation within their respective industries.

Q. Why are problem-solving skills so important for leaders? A. Problem-solving skills are crucial for leaders because they enable them to navigate change and uncertainty, make informed decisions, foster innovation, build trust and credibility, and maximize efficiency and productivity within their organizations.

Q. What are some key problem-solving skills that leaders should possess? A. Key problem-solving skills for leaders include critical thinking, analytical reasoning, creativity and innovation, communication and collaboration, and adaptability and flexibility.

Q. How can leaders develop and improve their problem-solving skills? A. Leaders can develop and improve their problem-solving skills by seeking out challenges, learning from failures and mistakes, embracing continuous learning, surrounding themselves with diverse perspectives, and practicing mindfulness and self-awareness.

Q. Can you provide examples of leaders who have excelled at problem-solving? A. Examples of leaders who have excelled at problem-solving include Steve Jobs (Apple Inc.), who revolutionized the tech industry through his innovative approach to problem-solving, Mary Barra (General Motors), who navigated significant challenges and positioned GM as a leader in the electric vehicle market, and Jacqueline Novogratz (Acumen), whose problem-solving skills have enabled her to address global poverty through social entrepreneurship.

Q. Why is it important for leaders to consider diverse perspectives when problem-solving? A. Considering diverse perspectives is important for leaders when problem-solving because it allows them to gain a well-rounded understanding of the challenge at hand and develop more comprehensive and effective solutions. Diverse viewpoints can shed light on blind spots, challenge assumptions, and offer unique insights and approaches.

By combining strong problem-solving skills with effective leadership, you can navigate even the most complex challenges and drive success within your organization.

Embrace the power of problem-solving, and you’ll be well on your way to becoming a truly exceptional leader.

Cook with me Share this content

• Opens in a new window X
• Opens in a new window Facebook
• Opens in a new window WhatsApp

You Might Also Like

What is First Principles Thinking? A Fun Way to Solve Problems!

How to Use the Nominal Group Technique for Better Problem-Solving?

What is Appreciative Inquiry?

Leave a reply cancel reply.

You must be logged in to post a comment.

WhatsApp us

More From Forbes

The 4 most effective ways leaders solve problems.

• Share to Facebook
• Share to Twitter
• Share to Linkedin

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.

• Email or follow-me on Twitter  @GlennLlopis . Like us  on  Facebook ! Join our  LinkedIn Group

Also on Forbes:

• Editorial Standards
• Forbes Accolades

You are using an outdated browser. Please upgrade your browser to improve your experience.

Problem Solving: A Leader’s Key to Team Performance and Organizational Growth

January 12, 2024

In today’s ever-changing and fast-paced business environment, one skill stands out as a key ingredient for success: problem solving . At Amani Institute, we’ve witnessed firsthand the transformative impact of refining this critical skill on both team performance and organizational growth. In this article, we’ll explore why effective problem solving is a cornerstone of leadership and how it acts as a catalyst for innovation, collaboration, and sustained success.

Identifying Opportunities Amid Challenges

Leadership is not just about overseeing day-to-day operations; it’s about steering the ship through choppy waters. Being an effective leader requires you to view challenges not as roadblocks but as opportunities for growth and improvement. Problem-solving skills will enable you to dissect complex issues, identify root causes, and develop strategic solutions. By reframing problems as opportunities, you can inspire a culture of resilience within your team, fostering a mindset that thrives in the face of adversity.

Fostering a Culture of Innovation

Innovation is the heartbeat of organizational growth and as a leader equipped with strong problem-solving skills, you can cultivate an environment where creativity flourishes. Lack of creativity and innovation in the workplace is one of the topmost challenges and demotivators we have heard from the thousands of employees we have trained at Amani Institute, and hence nurturing this as part of your organizational culture will definitely reap benefits. You will be in a position to encourage your teams to think outside the box, explore unconventional solutions and push the boundaries of what is possible when confronted with obstacles. This ability to navigate ambiguity and solve problems creatively will not only address immediate issues but also lay the groundwork for sustained innovation and adaptability.

Enhancing Collaboration and Team Dynamics

Successful leaders recognize that problem solving is not a solo endeavor. It requires collaboration and the pooling of diverse perspectives and talents. Teams led by effective problem solvers benefit from increased communication, as members feel empowered to share their insights and ideas. This collaborative spirit fosters a sense of ownership among team members, as they collectively work towards solutions. The shared experience of overcoming challenges strengthens the bonds within the team, leading to improved cohesion and enhanced overall performance. In our experience, a spirit of collaboration, not competition, is the key to solving some of the world’s toughest problems.

Driving Organizational Growth

In an era of rapid change, organizations need leaders who can navigate uncertainty and drive growth. Problem-solving skills enable leaders to make informed decisions, mitigate risks, and navigate and capitalize on opportunities. By fostering a culture of continuous improvement, leaders contribute to the long-term success and sustainability of the organization. They’re able to reframe failure and embrace it with the spirit of learning. The ability to adapt and thrive in the face of challenges positions the organization not only for survival but also for thriving in an ever-evolving landscape.

Investing in Leadership Development

Recognizing the importance of problem-solving skills, we place a strong emphasis on leadership development programs that equip individuals with the tools and mindsets needed to tackle challenges head-on. Through experiential learning, case studies, and real-world simulations, participants gain practical and immediately applicable insights into effective problem solving, preparing them for the complexities of leadership roles.

Through our leadership development programs, we have witnessed the transformative impact of problem-solving skills on individuals, teams, and organizations . Effective leaders not only navigate challenges but also turn them into opportunities for growth and innovation. By fostering a culture that values problem solving, you can contribute to enhanced collaboration, organizational growth, and long-term success. In a world that demands adaptability and resilience, problem-solving skills are the compass that guides leaders towards sustained excellence.

Ready to take your problem-solving skills to the next level? Explore our Leadership for Growth program and nominate a manager for the upcoming cohort in Nairobi, Kenya.

Subscribe to our newsletter.

[email protected]

• Custom Training Programs
• Strategic Team Facilitation
• Fellowship Programs
• Leadership for Growth
• Leadership for Growth Gujarat
• Leadership for Growth Nairobi
• L4G at Your Organization
• Faculty Pool

Information

• Terms and Conditions
• Privacy Policy

© 2025 Global Good x Amani. All Rights Reserved

• Strictly Necessary Cookies
• 3rd Party Cookies

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Read more on our privacy policy page.

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.

This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages.

Keeping this cookie enabled helps us to improve our website.

Please enable Strictly Necessary Cookies first so that we can save your preferences!

Round 2 Application Deadline: 18 th January

• Vision & Values
• Spirituality & Indian Ethos
• Founder & Chairman’s Message
• Director’s Message – SOIL Gurgaon
• Director’s Message – SOIL Manesar
• Industry Consortium
• Governing Board
• Academic Advisory Board
• Leadership Council
• Mandatory Disclosures
• Social Innovation Program
• Accreditations & Associations
• Press Release
• Gurgaon City Campus
• New Gurgaon (Manesar) Campus
• Inspired Leadership Conference
• DEEKSHANTA – Convocation
• Annual Alumni Meet
• SOIL Premier League
• Social Innovation Fair
• Karma Rasoi
• Himalayan Retreat

Program Type

Problem solving: a critical leadership skill.

Home » Blog » Business » Problem Solving: A Critical Leadership Skill

Today’s leadership responsibilities and roles aren’t limited to delegating and management. Instead, when it comes to effective leadership, problem solving is not only an important skill, but a crucial role for leaders to take on.

Faced with more complex challenges in business and the world at large, many leaders are embracing what some traditionalists may call anti-leadership. Instead of focusing primarily on managing their people, many leaders are fixing their attention on the problems at hand, and unintentionally leading people excited about the solutions they are striving for. Founder of the MIT Leadership Center Deborah Ancona and Executive Director Hal Gregersen have labeled this problem-led leadership , and are reporting an increase in this distinctive style.

Even on a smaller scale, problem solving is a critical component for leaders who must strive to eliminate barriers and challenges that can otherwise hinder their people’s or their business’ progress. In a Harvard Business Review study about the skills that influence a leader’s success, problem solving ranked third out of 16.

As a leader, you need to approach problem solving as an opportunity, with a broad perspective and a calm demeanor. And, you’ll want to arm yourself with a few critical approaches to hone your problem-solving skills.

How to Develop Problem Solving Skills

Identify and define the problem.

Implementing a solution too early may not fully address the problem. Instead, invest time in understanding and defining the scope and nature of the problem to generate several good solutions before taking action. Don’t confuse a generic label of the problem (for example, the sales forecast is wrong) with the real definition of the problem. To truly define the problem, you would need to indicate something like: I know our department anticipated twice the revenue shown in the forecast here, and only three salespeople are represented from a staff of 10. Then, you also need to identify when and what the resolution needs to be: In one week, I need the correct forecast available for a board meeting.

Analyze the Problem

You will also want to assess the degree to which the problem has affected the overall business. In the example above, perhaps the sales forecast report has impacted other departments in the company as well. Look for overall patterns and ask questions about who, what, when, where, why and how to understand the scale of the impact. The objective is to find the root cause to allow you to implement a permanent resolution instead of a temporary fix.

Data offers a fact-based perspective on a problem and can help you define the issue. Learn what types of data are available for you and how to interpret the datasets. And, be sure to translate your findings in clear and meaningful ways for stakeholders who can support resolutions.

Communicate

You will need to cultivate good communication skills, to allow you to clearly and effectively relay the problem to key stakeholders. Then, you’ll also need to inspire the people who are supporting the solution to remain connected to the task until it is resolved.  

Transparency is a key tenant of communication to ensure all aspects of a problem are understood. This is also critical when proposing solutions, as you need to understand different perspectives and concerns before implementing what you believe to be the right approach. Sometimes, this may entail keeping team members accountable for giving honest feedback, as not everyone feels comfortable sharing, particularly negative or dissenting opinions.

Finally, once you have a plan, you’ll need to communicate unambiguously to implement it.

Be Open-Minded

Problem solving cannot be done well if leaders are change- or risk-averse – or worse, allowing team members to mask inefficiencies. You’ll need to be able to assess a problem outside of immediate, obvious details, and be open to taking risks to find a better, more innovative approach. Problem solving is best conducted when many people can contribute their best ideas and skills, and you’ll need to keep an open mind to hear from top talent and innovate ideas across the organization, and to take on a new perspective.

Develop Solutions

Once the problem has been identified and analyzed and you’ve brainstormed solutions, you’ll want to narrow down a few fully developed solutions. Presenting every idea on the list to stakeholders or clients can hamper decisions. With a narrowed list, you can design a long-term solution or two that consider the time, cost, and technology required to support the solution.  

Learn From Mistakes

Mistakes are a natural part of growth and development, and fostering solid problem-solving skills will likely entail some errors along the way. But mistakes can provide learning opportunities and improve your overall process and approach – as long as you appreciate them as a learning opportunity. Even if you aren’t grappling with an obvious mistake, take time to reflect on the overall process and approach and determine if you would change anything to boost efficiency, creativity, or speed the next time.

Cultivating strong problem-solving skills is critical for leaders at any level and career stage, and starting now ensures as you advance, you’ll be fine-tuning this vital skill instead of trying to play catch up.

RELATED ARTICLES

What is hybrid project management, supply chain lessons from covid-19, 833-591-1092.

Risepoint maintains this website on behalf of Florida Institute of Technology. Florida Tech maintains responsibility for curriculum, teaching, admissions, tuition, financial aid, accreditation, and all other academic- and instruction-related functions and decisions.

Learn more about Risepoint.

© 2024 privacy | terms | student disclosures

Get Our Program Guide

If you are ready to learn more about our programs, get started by downloading our program guide now.

You are using an outdated browser. Please upgrade your browser or activate Google Chrome Frame to improve your experience.

• Leadership Essentials: Problem Solving

Leaders demonstrate ownership by being solution focused

• Membership tools
• Dimensions of Leadership
• Problem Solving
• 4 out of 5 • 1 rating

"A problem occurs when there is a gap between what we want to happen and what is actually happening; something differs from normal or something goes wrong. Problems at work vary in size, complexity and severity.  Defining the problem accurately is an essential first step to a solution." (Kepner, and Tregoe, 2013)

Defining the Problem

It is easy to overlook or misunderstand the true nature and cause of problems at work. This can often lead to:

• The wrong problem being dealt with
• The symptom is removed but not the cause of the underlying problem
• Missed learning opportunities

Defining the problem is the most important step of problem-solving. To do this, you need to diagnose the situation properly so that the real problem is accurately identified, and not its symptoms. If you identify and describe your problems well, you will make them easier and less costly to solve. The way your problem is defined and understood has a major impact on the number, quality, innovativeness and type of solutions that are proposed. You need to define:

Involving your team in doing this by asking insightful questions can help you to get a deeper understanding of the issue and its impact:

• What is the problem?
• What is the gap between ‘What is’ and ‘What should be?’
• What can you see, hear, feel, taste that tells you there is a problem?
• When was this first observed? When is it not observed? When could it have happened but did not?
• How big is it? How many are there? How many could there be but are not? Who does it affect? Who does it not affect? How many could have it but do not?

How should problems be solved?

There are eight steps in the problem solving process:

• Define the problem Investigate exactly what has gone wrong; Do not be influenced by people with ready-made solutions; Getting the definition accurate is crucial so that you do not find that you are solving the wrong problem collecting possible answers to questions that have not been asked.A good ‘problem statement’ is a clear and precise description of the problem being addressed. It should focus on one problem only, and should not suggest a solution.
• Gather relevant information Gather detail on the people, activities, processes, equipment, systems, time-scales and conditions under which the problems occur.
• Identify possible causes Causes usually relate to people, systems or equipment. Be careful not to blame the computer when it could be that the operator is not trained. Asking ‘What has changed from the norm?’ helps to identify the cause.
• Identify a possible solution Work out a way to test exactly what it is you are looking for and how you will know if you are right. 
• Test the possible causes Go back over the information you have assembled in steps 1-4 to test it, on paper, if the cause finds a good match with how, where and when the problem occurs, to what extent it occurs, and who is affected by it.
• Work out the solution There may be a number of possible solutions (which may not be mutually exclusive) with some more appropriate than others.
• Making the decision Identify and assess all possible alternative solutions. See ‘Leadership Essentials No.33 Decision Making’ for further information.
• Monitor the results How well did your solution work? What have you learnt?

Gap Analysis

Gap analysis is a common procedure for determining needs and identifying problems before action planning.  It helps you to decide what steps you need to take in order to move from your current situation to a desired situation in the future.  It can help your team to:

• Identify specific problems to address
• Understand the situation causing the problem more clearly
• Ensure that the problem being solved is the right one
• Identify the way forward
• Take the most important step - determining the actions you think will help close the gap

There are three steps in a gap analysis:

• Assess your current situation – in factual, specific terms.
• Identify your desired future state – including objectives you need to achieve and time frame; the more clearly you define your desired future state, the better your end result will be.
• Identify and describe the gap - assess the factors that contribute to it; the distance that needs to be covered; how far and how fast do you need to go to achieve your goal (remove the gap)

Intuition in Problem Solving

Intuition is an ability to understand or know something immediately based on your feelings, not through rational processes such as facts and data.

There are two main problem-solving styles:

In analytical/ rational problem solving , you think about the problem, consider several alternative courses of action, and choose the one that best fits your objective. (Kepner & Tregoe, 2013)

In intuitive problem solving , you rely on your experience, judgment and instinct to assess a situation quickly and take action (Cholle, 2011). Intuitive problem solvers normally have skills such as:

• Recognising the early signs of problems or opportunities
• Sizing up situations rapidly and seeing the big picture
• Quickly assessing the likely outcome of each possible opportunity
• Decide and act without deliberate analysis

Intuition is particularly useful for generating and considering all possible alternative solutions to a problem.

Quality Circles

A ‘Quality Circle’ is a small group of employees who meet regularly to focus on problem-solving and taking corrective action to improve quality in their area. It is considered best practice for membership of a quality circle to be voluntary and for the ‘leader’ of the quality circle to be selected by the members themselves. 

Cholle, F. P. (2011). The Intuitive Compass Publ. Jossey-Bass, USAGigerenzer, G. (2008). Gut Feelings: Short Cuts to Better Decision Making Publ Penguin Books, USAGordon, B. and Berger, L (2017). Intelligent Memory: Exercise Your Mind and Make Yourself Smarter Publ. Penguin Books, USAKepner, C. H. and Tregoe, B. B (2013). The New Rational Manager: An Updated Edition for a New World Publ. Princeton Research Press, N.J, USA

Are you an effective problem-solver test yourself with our scorecard..

If you’re a member, you can test yourself on Problem Solving and see if you meet the standard.

Test yourself

Spotlight on Problem Solving Tools and Techniques

19 February 2018

Spotlight on Using Intuition in Problem Solving

09 February 2018

Spotlight on Gap Analysis

Further resources.

Introducing Problem Solving

29 October 2018

From the blog

Keep calm and carry on! How to lead effectively through a crisis.

08 December 2021

Q&A with Giedre Vasiliauskaite

01 September 2021

How to lead in a crisis.

05 May 2021

Leading in a complicated/complex world (Netherlands)

26 Nov 2021

Business resilience as a service

21 Jul 2021