Introduction to Problem Solving Skills

The tools in this section help you understand complicated, difficult situations. Without them problems might seem huge, overwhelming and excessively complex.

These techniques help you conduct a rigorous analysis of the problems you face, helping you look at as many factors as possible in a structured and methodical way. They give you a starting point in business problem solving (and other problem solving situations) where other people would just feel helpless and intimidated by the situation.

We look at the following tools:

• Extracting maximum information from facts - Appreciation
• Understanding problems in detail - Drill-Down
• Identifying possible causes of problems - Cause & Effect Diagrams
• Understanding how a process works - Flow Charts
• Understanding the way factors affect one-another - Systems Diagrams
• Analysing Strengths, Weaknesses, Opportunities and Threats - SWOT Analysis
• Making Cash Flow Forecasts with Spreadsheets
• Methods of Risk Analysis
• Understanding where the power lies - Porter's Five Forces
• Understanding the big picture - PEST Analysis
• Identifying what really matters to customers - Value Chains
• Find your competitive edge with USP Analysis

The first half of the section covers general approaches. Appreciation is a useful technique for extracting good information from dry facts. Drill Down helps you to break large, seemingly unmanageable problems down into achievable parts. It also helps you to see where you need more information. Cause & Effect Diagrams are very useful for making sure that you have considered all factors relating to a problem, while Systems Diagrams are hugely powerful tools for showing how factors interact in complex situations.

The second half of the section discusses specific tools for specific situations. SWOT Analysis helps you to work out a survival and success strategy in a competitive environment. Forecasting with Spreadsheets shows you how to make financial models of your organisation or projects. You can use these to work out whether projects are viable and use them to forecast the effects of changes in underlying factors. Risk Analysis provides a formal framework for identifying the risks you face, and helps you to work out a strategy for controlling them.