strengths and weaknesses in problem solving and decision making

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What Are Your Problem Solving Strengths

Some people are better problem solvers than others— It’s a simple claim, but it’s one that I think doesn’t hold true. The key with problem solving is to hone in on strengths, to figure out where your problem-solving strengths lie. It makes sense on a personal and organizational level, because problem-solving strengths mean that each person on your team or in your organization is basing their approach to difficult challenges on the ways they like to work.

The first step in discovering problem-solving strengths at an organizational level is to understand the differences in the ways individuals solve problems. You may have a tried-and-true organizational problem-solving method, but unless each person on a team feels empowered to problem-solve in their own way, the results ain’t gonna happen. In some ways, problem solving in a defined context is like trying to put a square peg in a round hole. A person with an analytical approach isn’t going to want to come to a team consensus on how to solve a problem, at least until the research has been done and the logic is in place.

So how do you define problem-solving strengths? See if these descriptors sound like you.

Problem-Solving Strengths :

• Divergent thinking
• Challenges assumptions
• Step-by-step approach
• Seeks practical information
• Builds off others’ ideas
• Looks for how the solution impacts people
• Looks at the big picture
• Checks for connections between different problems

All of these are ways to look at problem solving, and chances are you have a strength in several of these approaches; but think about how powerful the full system of problem solving could be if you had a person with each of these problem-solving strengths.

Each of these problem-solving approaches comes from a particular Emergenetics thinking preference (Analytical thinking, Structural thinking, Social thinking, Conceptual thinking). Using all elements of problem solving is key in coming up with the best solutions. So the next step is finding out where your problem-solving strengths lie and where your team’s problem-solving strengths lie. The total package can be incredibly powerful.

Then the only thing left to do is actually solve problems. Even with your strengths intact, it’s easier said than done.

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• Decision-Making and Problem Solving

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The SkillsYouNeed Guide to Interpersonal Skills

Making decisions and solving problems are two key areas in life, whether you are at home or at work. Whatever you’re doing, and wherever you are, you are faced with countless decisions and problems, both small and large, every day.

Many decisions and problems are so small that we may not even notice them. Even small decisions, however, can be overwhelming to some people. They may come to a halt as they consider their dilemma and try to decide what to do.

Small and Large Decisions

In your day-to-day life you're likely to encounter numerous 'small decisions', including, for example:

Tea or coffee?

What shall I have in my sandwich? Or should I have a salad instead today?

What shall I wear today?

Larger decisions may occur less frequently but may include:

Should we repaint the kitchen? If so, what colour?

Should we relocate?

Should I propose to my partner? Do I really want to spend the rest of my life with him/her?

These decisions, and others like them, may take considerable time and effort to make.

The relationship between decision-making and problem-solving is complex. Decision-making is perhaps best thought of as a key part of problem-solving: one part of the overall process.

Our approach at Skills You Need is to set out a framework to help guide you through the decision-making process. You won’t always need to use the whole framework, or even use it at all, but you may find it useful if you are a bit ‘stuck’ and need something to help you make a difficult decision.

Decision Making

Effective Decision-Making

This page provides information about ways of making a decision, including basing it on logic or emotion (‘gut feeling’). It also explains what can stop you making an effective decision, including too much or too little information, and not really caring about the outcome.

A Decision-Making Framework

This page sets out one possible framework for decision-making.

The framework described is quite extensive, and may seem quite formal. But it is also a helpful process to run through in a briefer form, for smaller problems, as it will help you to make sure that you really do have all the information that you need.

Problem Solving

Introduction to Problem-Solving

This page provides a general introduction to the idea of problem-solving. It explores the idea of goals (things that you want to achieve) and barriers (things that may prevent you from achieving your goals), and explains the problem-solving process at a broad level.

The first stage in solving any problem is to identify it, and then break it down into its component parts. Even the biggest, most intractable-seeming problems, can become much more manageable if they are broken down into smaller parts. This page provides some advice about techniques you can use to do so.

Sometimes, the possible options to address your problem are obvious. At other times, you may need to involve others, or think more laterally to find alternatives. This page explains some principles, and some tools and techniques to help you do so.

Having generated solutions, you need to decide which one to take, which is where decision-making meets problem-solving. But once decided, there is another step: to deliver on your decision, and then see if your chosen solution works. This page helps you through this process.

‘Social’ problems are those that we encounter in everyday life, including money trouble, problems with other people, health problems and crime. These problems, like any others, are best solved using a framework to identify the problem, work out the options for addressing it, and then deciding which option to use.

This page provides more information about the key skills needed for practical problem-solving in real life.

Further Reading from Skills You Need

The Skills You Need Guide to Interpersonal Skills eBooks.

Develop your interpersonal skills with our series of eBooks. Learn about and improve your communication skills, tackle conflict resolution, mediate in difficult situations, and develop your emotional intelligence.

Guiding you through the key skills needed in life

As always at Skills You Need, our approach to these key skills is to provide practical ways to manage the process, and to develop your skills.

Neither problem-solving nor decision-making is an intrinsically difficult process and we hope you will find our pages useful in developing your skills.

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Thinking About Thinking

An excerpt from Problem Solver on how we make decisions

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By Cheryl Strauss Einhorn Sep. 12, 2023

Problem Solver: Maximizing Your Strengths to Make Better Decisions

Cheryl Strauss Einhorn

192 pages, Cornell Publishing, 2023

Buy the book »

Nonprofit leaders need a thoughtful way to make decisions, big and small. But we have never been taught to recognize how we make decisions personally and professionally, even as it slowly dawns on us that different people make decisions differently. And that can cause friction.

In the research for my new book, Problem Solver: Maximizing Your Strengths to Make Better Decisions, I have identified five “Problem Solver Profiles,” distinct approaches to making decisions that bring unique strengths and weaknesses, including cognitive biases that can impede clear thinking. By learning the psychology of your decision-making, and all five Problem Solver Profiles, you can make better decisions alone and with your teams.— Cheryl Strauss Einhorn

I’d been invited to speak at a conference that took place in an octagonal building atop the summit of Powder Mountain, Utah.  It was a sunny and clear winter day and strong, warm sunlight poured through the floor-to-ceiling windows in the room as I talked with the audience about being more mindful and deliberate in high-stakes decision-making. I had just developed an app to help people identify what I was calling their “Problem Solver Profile,” PSP, the habits and patterns of behavior that drive our decision-making. My research and work on decision-making identified five different decision-making archetypes. Audience members began exploring the module, and the room got very quiet — for about fifteen minutes. At the point that the module began to reveal attendees’ Problem Solver Profiles, the quiet was replaced by noisy, animated conversation.

 At the end of my session, a young man—Ari—approached me, excited about the work we had done together and what he had learned about himself. He told me he was a Visionary, and that he recognized that the profile “makes so much sense to me. It really explains a lot of things.”

Ari was thrilled that his own sense of himself as a Visionary had been validated, particularly when he read that Visionaries are “drawn to exciting ideas” and can often get attached to “bold details” — his profile to a tee. But Ari also saw himself in the weaknesses that are common blind spots for Visionaries. For example, the PSP module pointed out that Visionaries tend to lean on their imagination, and so don’t always do thorough research, racing toward their big ideas with limited, incomplete information.

Ari later told me that, “Upon reading the Visionary description, I knew right away that I needed to talk with my mentors about taking things to completion and about how I could achieve a greater degree of structure and organization in my approach to work.”

Like Ari, you too can experience the ah-ha that he had when unlocking your strengths and potential pitfalls as a decision-maker. The five Problem Solver Profiles that I had identified, and that I had shared with the conference attendees on that snow-capped mountain top, are: Adventurers, Detectives, Listeners, Thinkers and Visionaries. Adventurers tend to go with their gut reactions; Detectives like to follow the data; Listeners like to solicit the input of others; Thinkers like to identify multiple paths and outcomes; and Visionaries pride themselves on seeing pathways that others don’t. Each archetype has significant strengths but also potential blind spots, a few key cognitive biases that may trip up a problem solver’s ability to fully appraise a situation. And of course, many of us can be more than one type of problem solver, but in almost all cases there is one dominant approach that we lean on.

But we don’t tend to think about how we make our decisions, we just make them — we go with our gut. Maybe that’s because we never learned how or because we have so very many of them to make each and every day. Researchers tell us that we make up to 40,000 decisions in a day; Cornell University researchers recently concluded that we make over 200 decisions each day about food alone . So, it is surprising that until very recently schools didn’t even think to teach us about decision-making — and most still don’t — and we often don’t discuss or learn explicitly about decision-making at home.

How could knowing about ourselves as decision-makers impact, for example, the 200-plus food-related decisions we make daily? What happens when you check into a hotel and are greeted with a fresh-from-the-oven chocolate chip cookie? If you’re an Adventurer, who likes to make decisions quickly and instinctively, you’ll likely grab the snack. But by recognizing that you tend to make decisions without caution — and that that’s not always the best way to make decisions — you might more easily say no to the sweet snack sitting on the hotel lobby counter. If you’re a Listener, who tends to heavily weigh others’ opinions, you might hear those other voices and skip the cookie, especially if what you’ve been hearing is that you could shed a few pounds. But that may not be what you want — or even should — do. Understanding your Listener blind spots might help you learn to quiet those outside voices, better channel your own inner voice — and enjoy a delicious cookie!    

The consequences of grabbing the sweet treat at the hotel check-in counter may be minimal, but to decide on your next car purchase — or which hospital to go to for surgery — with the same “go from the gut” attitude has much greater consequences.

In our lives we face many high stakes decisions — ones where the outcome is unknown, the decision is likely to have a long-term impact on our lives and the price for getting it wrong could be costly. Knowing more about our decision tendencies can be life-changing.

Do we want to do what we’ve done before? That’s the basic question we face for almost every decision because that is how our minds operate, from the reel of our past experiences. It’s all our mind knows and so it uses those memories to guide our future. Yet to answer that fundamental question about whether we want to repeat a prior decision requires several pieces of knowledge: How do we engage with our decisions? How have those decisions turned out? What can we do to make them better?    

The truth is, our decisions are the only thing that we really have control over: how we choose matters. Yet we often end up with choices that are made by others, because we’ve — knowingly or unknowingly — abdicated the control over a decision. And frequently, we simply didn’t notice that a decision is before us.

So why haven’t we identified our decision-making style? We identify ourselves with all sorts of groups and categories — our race, our religion, our culture, our astrological sign, or geographical affiliation, the sports teams we root for, the hair care products we swear by, the news we subscribe to (and the news we would never subscribe to!), yet we don’t categorize what type of decision-maker we are.

Many of the categories we choose as labels are predetermined for us by our families, our friends and where we live. Our religious affiliation is often handed to us by our parents; the sports teams we root for are usually determined by where we live and who our friends root for. Likewise for the region we claim as home, whether we are Southerners or Midwestern. So much of this identity formation happens when we are young, and we take it on and take pride in it without thinking about it — and that’s not a bad thing. Our groups give us multiple ways to belong, and belonging is a basic human instinct.

Other kinds of categories however require us to be proactive and introspective — to study and analyze our own behavior and emotions. These kinds of group identities take time and effort to explore, whether they are about our passions, our politics or our love language, and that exploration can be uncomfortable. But it’s important work, work that can help us to better realize our potential and live more satisfied lives. Schools and companies are just beginning to recognize the value of this foundational decision-making spadework and are doing it for a variety of reasons; it provides pathways to understanding and navigating learning differences, which can provide customized learning tools, professional development, and team building.

But often this introspection and analysis doesn’t begin at home or in grade schools, in our foundational experiences, where we would benefit from being taught to think consciously about how we learn, how we form friendships, even how we give and receive love.

The idea that we don’t necessarily share our decision approaches tends to dawn on us mostly over time — and without a manual for what to do with those differences or how to bridge them. By exploring the different Problem Solver Profiles and their implications, we can see that we often start our problem-solving from different entry points than others and that we value different aspects of the process. This new awareness can provide us with a more open mindset to make decisions that foster positive relationships, promote nurturing environments that increase belonging and inclusion, and provide us with rich learning experiences and knowledge development to assist us in better tackling life’s challenges together.

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How to improve your problem solving skills and build effective problem solving strategies

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Effective problem solving is all about using the right process and following a plan tailored to the issue at hand. Recognizing your team or organization has an issue isn’t enough to come up with effective problem solving strategies. 

To truly understand a problem and develop appropriate solutions, you will want to follow a solid process, follow the necessary problem solving steps, and bring all of your problem solving skills to the table.  

We’ll first guide you through the seven step problem solving process you and your team can use to effectively solve complex business challenges. We’ll also look at what problem solving strategies you can employ with your team when looking for a way to approach the process. We’ll then discuss the problem solving skills you need to be more effective at solving problems, complete with an activity from the SessionLab library you can use to develop that skill in your team.

Let’s get to it! 

What is a problem solving process?

• What are the problem solving steps I need to follow?

Problem solving strategies

What skills do i need to be an effective problem solver, how can i improve my problem solving skills.

Solving problems is like baking a cake. You can go straight into the kitchen without a recipe or the right ingredients and do your best, but the end result is unlikely to be very tasty!

Using a process to bake a cake allows you to use the best ingredients without waste, collect the right tools, account for allergies, decide whether it is a birthday or wedding cake, and then bake efficiently and on time. The result is a better cake that is fit for purpose, tastes better and has created less mess in the kitchen. Also, it should have chocolate sprinkles. Having a step by step process to solve organizational problems allows you to go through each stage methodically and ensure you are trying to solve the right problems and select the most appropriate, effective solutions.

What are the problem solving steps I need to follow? 

All problem solving processes go through a number of steps in order to move from identifying a problem to resolving it.

Depending on your problem solving model and who you ask, there can be anything between four and nine problem solving steps you should follow in order to find the right solution. Whatever framework you and your group use, there are some key items that should be addressed in order to have an effective process.

We’ve looked at problem solving processes from sources such as the American Society for Quality and their four step approach , and Mediate ‘s six step process. By reflecting on those and our own problem solving processes, we’ve come up with a sequence of seven problem solving steps we feel best covers everything you need in order to effectively solve problems.

1. Problem identification 

The first stage of any problem solving process is to identify the problem or problems you might want to solve. Effective problem solving strategies always begin by allowing a group scope to articulate what they believe the problem to be and then coming to some consensus over which problem they approach first. Problem solving activities used at this stage often have a focus on creating frank, open discussion so that potential problems can be brought to the surface.

2. Problem analysis 

Though this step is not a million miles from problem identification, problem analysis deserves to be considered separately. It can often be an overlooked part of the process and is instrumental when it comes to developing effective solutions.

The process of problem analysis means ensuring that the problem you are seeking to solve is the right problem . As part of this stage, you may look deeper and try to find the root cause of a specific problem at a team or organizational level.

Remember that problem solving strategies should not only be focused on putting out fires in the short term but developing long term solutions that deal with the root cause of organizational challenges. 

Whatever your approach, analyzing a problem is crucial in being able to select an appropriate solution and the problem solving skills deployed in this stage are beneficial for the rest of the process and ensuring the solutions you create are fit for purpose.

3. Solution generation

Once your group has nailed down the particulars of the problem you wish to solve, you want to encourage a free flow of ideas connecting to solving that problem. This can take the form of problem solving games that encourage creative thinking or problem solving activities designed to produce working prototypes of possible solutions. 

The key to ensuring the success of this stage of the problem solving process is to encourage quick, creative thinking and create an open space where all ideas are considered. The best solutions can come from unlikely places and by using problem solving techniques that celebrate invention, you might come up with solution gold. 

4. Solution development

No solution is likely to be perfect right out of the gate. It’s important to discuss and develop the solutions your group has come up with over the course of following the previous problem solving steps in order to arrive at the best possible solution. Problem solving games used in this stage involve lots of critical thinking, measuring potential effort and impact, and looking at possible solutions analytically. 

During this stage, you will often ask your team to iterate and improve upon your frontrunning solutions and develop them further. Remember that problem solving strategies always benefit from a multitude of voices and opinions, and not to let ego get involved when it comes to choosing which solutions to develop and take further.

Finding the best solution is the goal of all problem solving workshops and here is the place to ensure that your solution is well thought out, sufficiently robust and fit for purpose. 

5. Decision making 

Nearly there! Once your group has reached consensus and selected a solution that applies to the problem at hand you have some decisions to make. You will want to work on allocating ownership of the project, figure out who will do what, how the success of the solution will be measured and decide the next course of action.

The decision making stage is a part of the problem solving process that can get missed or taken as for granted. Fail to properly allocate roles and plan out how a solution will actually be implemented and it less likely to be successful in solving the problem.

Have clear accountabilities, actions, timeframes, and follow-ups. Make these decisions and set clear next-steps in the problem solving workshop so that everyone is aligned and you can move forward effectively as a group. 

Ensuring that you plan for the roll-out of a solution is one of the most important problem solving steps. Without adequate planning or oversight, it can prove impossible to measure success or iterate further if the problem was not solved. 

6. Solution implementation 

This is what we were waiting for! All problem solving strategies have the end goal of implementing a solution and solving a problem in mind. 

Remember that in order for any solution to be successful, you need to help your group through all of the previous problem solving steps thoughtfully. Only then can you ensure that you are solving the right problem but also that you have developed the correct solution and can then successfully implement and measure the impact of that solution.

Project management and communication skills are key here – your solution may need to adjust when out in the wild or you might discover new challenges along the way.

7. Solution evaluation 

So you and your team developed a great solution to a problem and have a gut feeling its been solved. Work done, right? Wrong. All problem solving strategies benefit from evaluation, consideration, and feedback. You might find that the solution does not work for everyone, might create new problems, or is potentially so successful that you will want to roll it out to larger teams or as part of other initiatives. 

None of that is possible without taking the time to evaluate the success of the solution you developed in your problem solving model and adjust if necessary.

Remember that the problem solving process is often iterative and it can be common to not solve complex issues on the first try. Even when this is the case, you and your team will have generated learning that will be important for future problem solving workshops or in other parts of the organization. 

It’s worth underlining how important record keeping is throughout the problem solving process. If a solution didn’t work, you need to have the data and records to see why that was the case. If you go back to the drawing board, notes from the previous workshop can help save time. Data and insight is invaluable at every stage of the problem solving process and this one is no different.

Problem solving workshops made easy

Problem solving strategies are methods of approaching and facilitating the process of problem-solving with a set of techniques , actions, and processes. Different strategies are more effective if you are trying to solve broad problems such as achieving higher growth versus more focused problems like, how do we improve our customer onboarding process?

Broadly, the problem solving steps outlined above should be included in any problem solving strategy though choosing where to focus your time and what approaches should be taken is where they begin to differ. You might find that some strategies ask for the problem identification to be done prior to the session or that everything happens in the course of a one day workshop.

The key similarity is that all good problem solving strategies are structured and designed. Four hours of open discussion is never going to be as productive as a four-hour workshop designed to lead a group through a problem solving process.

Good problem solving strategies are tailored to the team, organization and problem you will be attempting to solve. Here are some example problem solving strategies you can learn from or use to get started.

Use a workshop to lead a team through a group process

Often, the first step to solving problems or organizational challenges is bringing a group together effectively. Most teams have the tools, knowledge, and expertise necessary to solve their challenges – they just need some guidance in how to use leverage those skills and a structure and format that allows people to focus their energies.

Facilitated workshops are one of the most effective ways of solving problems of any scale. By designing and planning your workshop carefully, you can tailor the approach and scope to best fit the needs of your team and organization. 

Problem solving workshop

• Creating a bespoke, tailored process
• Tackling problems of any size
• Building in-house workshop ability and encouraging their use

Workshops are an effective strategy for solving problems. By using tried and test facilitation techniques and methods, you can design and deliver a workshop that is perfectly suited to the unique variables of your organization. You may only have the capacity for a half-day workshop and so need a problem solving process to match. 

By using our session planner tool and importing methods from our library of 700+ facilitation techniques, you can create the right problem solving workshop for your team. It might be that you want to encourage creative thinking or look at things from a new angle to unblock your groups approach to problem solving. By tailoring your workshop design to the purpose, you can help ensure great results.

One of the main benefits of a workshop is the structured approach to problem solving. Not only does this mean that the workshop itself will be successful, but many of the methods and techniques will help your team improve their working processes outside of the workshop. 

We believe that workshops are one of the best tools you can use to improve the way your team works together. Start with a problem solving workshop and then see what team building, culture or design workshops can do for your organization!

Run a design sprint

Great for: 

• aligning large, multi-discipline teams
• quickly designing and testing solutions
• tackling large, complex organizational challenges and breaking them down into smaller tasks

By using design thinking principles and methods, a design sprint is a great way of identifying, prioritizing and prototyping solutions to long term challenges that can help solve major organizational problems with quick action and measurable results.

Some familiarity with design thinking is useful, though not integral, and this strategy can really help a team align if there is some discussion around which problems should be approached first. 

The stage-based structure of the design sprint is also very useful for teams new to design thinking.  The inspiration phase, where you look to competitors that have solved your problem, and the rapid prototyping and testing phases are great for introducing new concepts that will benefit a team in all their future work. 

It can be common for teams to look inward for solutions and so looking to the market for solutions you can iterate on can be very productive. Instilling an agile prototyping and testing mindset can also be great when helping teams move forwards – generating and testing solutions quickly can help save time in the long run and is also pretty exciting!

Break problems down into smaller issues

Organizational challenges and problems are often complicated and large scale in nature. Sometimes, trying to resolve such an issue in one swoop is simply unachievable or overwhelming. Try breaking down such problems into smaller issues that you can work on step by step. You may not be able to solve the problem of churning customers off the bat, but you can work with your team to identify smaller effort but high impact elements and work on those first.

This problem solving strategy can help a team generate momentum, prioritize and get some easy wins. It’s also a great strategy to employ with teams who are just beginning to learn how to approach the problem solving process. If you want some insight into a way to employ this strategy, we recommend looking at our design sprint template below!

Use guiding frameworks or try new methodologies

Some problems are best solved by introducing a major shift in perspective or by using new methodologies that encourage your team to think differently.

Props and tools such as Methodkit , which uses a card-based toolkit for facilitation, or Lego Serious Play can be great ways to engage your team and find an inclusive, democratic problem solving strategy. Remember that play and creativity are great tools for achieving change and whatever the challenge, engaging your participants can be very effective where other strategies may have failed.

LEGO Serious Play

• Improving core problem solving skills
• Thinking outside of the box
• Encouraging creative solutions

LEGO Serious Play is a problem solving methodology designed to get participants thinking differently by using 3D models and kinesthetic learning styles. By physically building LEGO models based on questions and exercises, participants are encouraged to think outside of the box and create their own responses. 

Collaborate LEGO Serious Play exercises are also used to encourage communication and build problem solving skills in a group. By using this problem solving process, you can often help different kinds of learners and personality types contribute and unblock organizational problems with creative thinking. 

Problem solving strategies like LEGO Serious Play are super effective at helping a team solve more skills-based problems such as communication between teams or a lack of creative thinking. Some problems are not suited to LEGO Serious Play and require a different problem solving strategy.

Card Decks and Method Kits

• New facilitators or non-facilitators 
• Approaching difficult subjects with a simple, creative framework
• Engaging those with varied learning styles

Card decks and method kids are great tools for those new to facilitation or for whom facilitation is not the primary role. Card decks such as the emotional culture deck can be used for complete workshops and in many cases, can be used right out of the box. Methodkit has a variety of kits designed for scenarios ranging from personal development through to personas and global challenges so you can find the right deck for your particular needs.

Having an easy to use framework that encourages creativity or a new approach can take some of the friction or planning difficulties out of the workshop process and energize a team in any setting. Simplicity is the key with these methods. By ensuring everyone on your team can get involved and engage with the process as quickly as possible can really contribute to the success of your problem solving strategy.

Source external advice

Looking to peers, experts and external facilitators can be a great way of approaching the problem solving process. Your team may not have the necessary expertise, insights of experience to tackle some issues, or you might simply benefit from a fresh perspective. Some problems may require bringing together an entire team, and coaching managers or team members individually might be the right approach. Remember that not all problems are best resolved in the same manner.

If you’re a solo entrepreneur, peer groups, coaches and mentors can also be invaluable at not only solving specific business problems, but in providing a support network for resolving future challenges. One great approach is to join a Mastermind Group and link up with like-minded individuals and all grow together. Remember that however you approach the sourcing of external advice, do so thoughtfully, respectfully and honestly. Reciprocate where you can and prepare to be surprised by just how kind and helpful your peers can be!

Mastermind Group

• Solo entrepreneurs or small teams with low capacity
• Peer learning and gaining outside expertise
• Getting multiple external points of view quickly

Problem solving in large organizations with lots of skilled team members is one thing, but how about if you work for yourself or in a very small team without the capacity to get the most from a design sprint or LEGO Serious Play session? 

A mastermind group – sometimes known as a peer advisory board – is where a group of people come together to support one another in their own goals, challenges, and businesses. Each participant comes to the group with their own purpose and the other members of the group will help them create solutions, brainstorm ideas, and support one another. 

Mastermind groups are very effective in creating an energized, supportive atmosphere that can deliver meaningful results. Learning from peers from outside of your organization or industry can really help unlock new ways of thinking and drive growth. Access to the experience and skills of your peers can be invaluable in helping fill the gaps in your own ability, particularly in young companies.

A mastermind group is a great solution for solo entrepreneurs, small teams, or for organizations that feel that external expertise or fresh perspectives will be beneficial for them. It is worth noting that Mastermind groups are often only as good as the participants and what they can bring to the group. Participants need to be committed, engaged and understand how to work in this context. 

Coaching and mentoring

• Focused learning and development
• Filling skills gaps
• Working on a range of challenges over time

Receiving advice from a business coach or building a mentor/mentee relationship can be an effective way of resolving certain challenges. The one-to-one format of most coaching and mentor relationships can really help solve the challenges those individuals are having and benefit the organization as a result.

A great mentor can be invaluable when it comes to spotting potential problems before they arise and coming to understand a mentee very well has a host of other business benefits. You might run an internal mentorship program to help develop your team’s problem solving skills and strategies or as part of a large learning and development program. External coaches can also be an important part of your problem solving strategy, filling skills gaps for your management team or helping with specific business issues. 

Now we’ve explored the problem solving process and the steps you will want to go through in order to have an effective session, let’s look at the skills you and your team need to be more effective problem solvers.

Problem solving skills are highly sought after, whatever industry or team you work in. Organizations are keen to employ people who are able to approach problems thoughtfully and find strong, realistic solutions. Whether you are a facilitator , a team leader or a developer, being an effective problem solver is a skill you’ll want to develop.

Problem solving skills form a whole suite of techniques and approaches that an individual uses to not only identify problems but to discuss them productively before then developing appropriate solutions.

Here are some of the most important problem solving skills everyone from executives to junior staff members should learn. We’ve also included an activity or exercise from the SessionLab library that can help you and your team develop that skill. 

If you’re running a workshop or training session to try and improve problem solving skills in your team, try using these methods to supercharge your process!

Active listening

Active listening is one of the most important skills anyone who works with people can possess. In short, active listening is a technique used to not only better understand what is being said by an individual, but also to be more aware of the underlying message the speaker is trying to convey. When it comes to problem solving, active listening is integral for understanding the position of every participant and to clarify the challenges, ideas and solutions they bring to the table.

Some active listening skills include:

• Paying complete attention to the speaker.
• Removing distractions.
• Avoid interruption.
• Taking the time to fully understand before preparing a rebuttal.
• Responding respectfully and appropriately.
• Demonstrate attentiveness and positivity with an open posture, making eye contact with the speaker, smiling and nodding if appropriate. Show that you are listening and encourage them to continue.
• Be aware of and respectful of feelings. Judge the situation and respond appropriately. You can disagree without being disrespectful.   
• Observe body language. 
• Paraphrase what was said in your own words, either mentally or verbally.
• Remain neutral. 
• Reflect and take a moment before responding.
• Ask deeper questions based on what is said and clarify points where necessary.   

Active Listening   #hyperisland   #skills   #active listening   #remote-friendly   This activity supports participants to reflect on a question and generate their own solutions using simple principles of active listening and peer coaching. It’s an excellent introduction to active listening but can also be used with groups that are already familiar with it. Participants work in groups of three and take turns being: “the subject”, the listener, and the observer.

Analytical skills

All problem solving models require strong analytical skills, particularly during the beginning of the process and when it comes to analyzing how solutions have performed.

Analytical skills are primarily focused on performing an effective analysis by collecting, studying and parsing data related to a problem or opportunity. 

It often involves spotting patterns, being able to see things from different perspectives and using observable facts and data to make suggestions or produce insight. 

Analytical skills are also important at every stage of the problem solving process and by having these skills, you can ensure that any ideas or solutions you create or backed up analytically and have been sufficiently thought out.

Nine Whys   #innovation   #issue analysis   #liberating structures   With breathtaking simplicity, you can rapidly clarify for individuals and a group what is essentially important in their work. You can quickly reveal when a compelling purpose is missing in a gathering and avoid moving forward without clarity. When a group discovers an unambiguous shared purpose, more freedom and more responsibility are unleashed. You have laid the foundation for spreading and scaling innovations with fidelity.

Collaboration

Trying to solve problems on your own is difficult. Being able to collaborate effectively, with a free exchange of ideas, to delegate and be a productive member of a team is hugely important to all problem solving strategies.

Remember that whatever your role, collaboration is integral, and in a problem solving process, you are all working together to find the best solution for everyone. 

Marshmallow challenge with debriefing   #teamwork   #team   #leadership   #collaboration   In eighteen minutes, teams must build the tallest free-standing structure out of 20 sticks of spaghetti, one yard of tape, one yard of string, and one marshmallow. The marshmallow needs to be on top. The Marshmallow Challenge was developed by Tom Wujec, who has done the activity with hundreds of groups around the world. Visit the Marshmallow Challenge website for more information. This version has an extra debriefing question added with sample questions focusing on roles within the team.

Communication  

Being an effective communicator means being empathetic, clear and succinct, asking the right questions, and demonstrating active listening skills throughout any discussion or meeting. 

In a problem solving setting, you need to communicate well in order to progress through each stage of the process effectively. As a team leader, it may also fall to you to facilitate communication between parties who may not see eye to eye. Effective communication also means helping others to express themselves and be heard in a group.

Bus Trip   #feedback   #communication   #appreciation   #closing   #thiagi   #team   This is one of my favourite feedback games. I use Bus Trip at the end of a training session or a meeting, and I use it all the time. The game creates a massive amount of energy with lots of smiles, laughs, and sometimes even a teardrop or two.

Creative problem solving skills can be some of the best tools in your arsenal. Thinking creatively, being able to generate lots of ideas and come up with out of the box solutions is useful at every step of the process. 

The kinds of problems you will likely discuss in a problem solving workshop are often difficult to solve, and by approaching things in a fresh, creative manner, you can often create more innovative solutions.

Having practical creative skills is also a boon when it comes to problem solving. If you can help create quality design sketches and prototypes in record time, it can help bring a team to alignment more quickly or provide a base for further iteration.

The paper clip method   #sharing   #creativity   #warm up   #idea generation   #brainstorming   The power of brainstorming. A training for project leaders, creativity training, and to catalyse getting new solutions.

Critical thinking

Critical thinking is one of the fundamental problem solving skills you’ll want to develop when working on developing solutions. Critical thinking is the ability to analyze, rationalize and evaluate while being aware of personal bias, outlying factors and remaining open-minded.

Defining and analyzing problems without deploying critical thinking skills can mean you and your team go down the wrong path. Developing solutions to complex issues requires critical thinking too – ensuring your team considers all possibilities and rationally evaluating them. 

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.

Data analysis 

Though it shares lots of space with general analytical skills, data analysis skills are something you want to cultivate in their own right in order to be an effective problem solver.

Being good at data analysis doesn’t just mean being able to find insights from data, but also selecting the appropriate data for a given issue, interpreting it effectively and knowing how to model and present that data. Depending on the problem at hand, it might also include a working knowledge of specific data analysis tools and procedures. 

Having a solid grasp of data analysis techniques is useful if you’re leading a problem solving workshop but if you’re not an expert, don’t worry. Bring people into the group who has this skill set and help your team be more effective as a result.

Decision making

All problems need a solution and all solutions require that someone make the decision to implement them. Without strong decision making skills, teams can become bogged down in discussion and less effective as a result. 

Making decisions is a key part of the problem solving process. It’s important to remember that decision making is not restricted to the leadership team. Every staff member makes decisions every day and developing these skills ensures that your team is able to solve problems at any scale. Remember that making decisions does not mean leaping to the first solution but weighing up the options and coming to an informed, well thought out solution to any given problem that works for the whole team.

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

Dependability

Most complex organizational problems require multiple people to be involved in delivering the solution. Ensuring that the team and organization can depend on you to take the necessary actions and communicate where necessary is key to ensuring problems are solved effectively.

Being dependable also means working to deadlines and to brief. It is often a matter of creating trust in a team so that everyone can depend on one another to complete the agreed actions in the agreed time frame so that the team can move forward together. Being undependable can create problems of friction and can limit the effectiveness of your solutions so be sure to bear this in mind throughout a project. 

Team Purpose & Culture   #team   #hyperisland   #culture   #remote-friendly   This is an essential process designed to help teams define their purpose (why they exist) and their culture (how they work together to achieve that purpose). Defining these two things will help any team to be more focused and aligned. With support of tangible examples from other companies, the team members work as individuals and a group to codify the way they work together. The goal is a visual manifestation of both the purpose and culture that can be put up in the team’s work space.

Emotional intelligence

Emotional intelligence is an important skill for any successful team member, whether communicating internally or with clients or users. In the problem solving process, emotional intelligence means being attuned to how people are feeling and thinking, communicating effectively and being self-aware of what you bring to a room. 

There are often differences of opinion when working through problem solving processes, and it can be easy to let things become impassioned or combative. Developing your emotional intelligence means being empathetic to your colleagues and managing your own emotions throughout the problem and solution process. Be kind, be thoughtful and put your points across care and attention. 

Being emotionally intelligent is a skill for life and by deploying it at work, you can not only work efficiently but empathetically. Check out the emotional culture workshop template for more!

Facilitation

As we’ve clarified in our facilitation skills post, facilitation is the art of leading people through processes towards agreed-upon objectives in a manner that encourages participation, ownership, and creativity by all those involved. While facilitation is a set of interrelated skills in itself, the broad definition of facilitation can be invaluable when it comes to problem solving. Leading a team through a problem solving process is made more effective if you improve and utilize facilitation skills – whether you’re a manager, team leader or external stakeholder.

The Six Thinking Hats   #creative thinking   #meeting facilitation   #problem solving   #issue resolution   #idea generation   #conflict resolution   The Six Thinking Hats are used by individuals and groups to separate out conflicting styles of thinking. They enable and encourage a group of people to think constructively together in exploring and implementing change, rather than using argument to fight over who is right and who is wrong.

Flexibility 

Being flexible is a vital skill when it comes to problem solving. This does not mean immediately bowing to pressure or changing your opinion quickly: instead, being flexible is all about seeing things from new perspectives, receiving new information and factoring it into your thought process.

Flexibility is also important when it comes to rolling out solutions. It might be that other organizational projects have greater priority or require the same resources as your chosen solution. Being flexible means understanding needs and challenges across the team and being open to shifting or arranging your own schedule as necessary. Again, this does not mean immediately making way for other projects. It’s about articulating your own needs, understanding the needs of others and being able to come to a meaningful compromise.

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.

Working in any group can lead to unconscious elements of groupthink or situations in which you may not wish to be entirely honest. Disagreeing with the opinions of the executive team or wishing to save the feelings of a coworker can be tricky to navigate, but being honest is absolutely vital when to comes to developing effective solutions and ensuring your voice is heard. 

Remember that being honest does not mean being brutally candid. You can deliver your honest feedback and opinions thoughtfully and without creating friction by using other skills such as emotional intelligence. 

Explore your Values   #hyperisland   #skills   #values   #remote-friendly   Your Values is an exercise for participants to explore what their most important values are. It’s done in an intuitive and rapid way to encourage participants to follow their intuitive feeling rather than over-thinking and finding the “correct” values. It is a good exercise to use to initiate reflection and dialogue around personal values.

Initiative 

The problem solving process is multi-faceted and requires different approaches at certain points of the process. Taking initiative to bring problems to the attention of the team, collect data or lead the solution creating process is always valuable. You might even roadtest your own small scale solutions or brainstorm before a session. Taking initiative is particularly effective if you have good deal of knowledge in that area or have ownership of a particular project and want to get things kickstarted.

That said, be sure to remember to honor the process and work in service of the team. If you are asked to own one part of the problem solving process and you don’t complete that task because your initiative leads you to work on something else, that’s not an effective method of solving business challenges.

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.

Impartiality

A particularly useful problem solving skill for product owners or managers is the ability to remain impartial throughout much of the process. In practice, this means treating all points of view and ideas brought forward in a meeting equally and ensuring that your own areas of interest or ownership are not favored over others. 

There may be a stage in the process where a decision maker has to weigh the cost and ROI of possible solutions against the company roadmap though even then, ensuring that the decision made is based on merit and not personal opinion. 

Empathy map   #frame insights   #create   #design   #issue analysis   An empathy map is a tool to help a design team to empathize with the people they are designing for. You can make an empathy map for a group of people or for a persona. To be used after doing personas when more insights are needed.

Being a good leader means getting a team aligned, energized and focused around a common goal. In the problem solving process, strong leadership helps ensure that the process is efficient, that any conflicts are resolved and that a team is managed in the direction of success.

It’s common for managers or executives to assume this role in a problem solving workshop, though it’s important that the leader maintains impartiality and does not bulldoze the group in a particular direction. Remember that good leadership means working in service of the purpose and team and ensuring the workshop is a safe space for employees of any level to contribute. Take a look at our leadership games and activities post for more exercises and methods to help improve leadership in your organization.

Leadership Pizza   #leadership   #team   #remote-friendly   This leadership development activity offers a self-assessment framework for people to first identify what skills, attributes and attitudes they find important for effective leadership, and then assess their own development and initiate goal setting.

In the context of problem solving, mediation is important in keeping a team engaged, happy and free of conflict. When leading or facilitating a problem solving workshop, you are likely to run into differences of opinion. Depending on the nature of the problem, certain issues may be brought up that are emotive in nature. 

Being an effective mediator means helping those people on either side of such a divide are heard, listen to one another and encouraged to find common ground and a resolution. Mediating skills are useful for leaders and managers in many situations and the problem solving process is no different.

Conflict Responses   #hyperisland   #team   #issue resolution   A workshop for a team to reflect on past conflicts, and use them to generate guidelines for effective conflict handling. The workshop uses the Thomas-Killman model of conflict responses to frame a reflective discussion. Use it to open up a discussion around conflict with a team.

Planning 

Solving organizational problems is much more effective when following a process or problem solving model. Planning skills are vital in order to structure, deliver and follow-through on a problem solving workshop and ensure your solutions are intelligently deployed.

Planning skills include the ability to organize tasks and a team, plan and design the process and take into account any potential challenges. Taking the time to plan carefully can save time and frustration later in the process and is valuable for ensuring a team is positioned for success.

3 Action Steps   #hyperisland   #action   #remote-friendly   This is a small-scale strategic planning session that helps groups and individuals to take action toward a desired change. It is often used at the end of a workshop or programme. The group discusses and agrees on a vision, then creates some action steps that will lead them towards that vision. The scope of the challenge is also defined, through discussion of the helpful and harmful factors influencing the group.

Prioritization

As organisations grow, the scale and variation of problems they face multiplies. Your team or is likely to face numerous challenges in different areas and so having the skills to analyze and prioritize becomes very important, particularly for those in leadership roles.

A thorough problem solving process is likely to deliver multiple solutions and you may have several different problems you wish to solve simultaneously. Prioritization is the ability to measure the importance, value, and effectiveness of those possible solutions and choose which to enact and in what order. The process of prioritization is integral in ensuring the biggest challenges are addressed with the most impactful solutions.

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.

Project management

Some problem solving skills are utilized in a workshop or ideation phases, while others come in useful when it comes to decision making. Overseeing an entire problem solving process and ensuring its success requires strong project management skills. 

While project management incorporates many of the other skills listed here, it is important to note the distinction of considering all of the factors of a project and managing them successfully. Being able to negotiate with stakeholders, manage tasks, time and people, consider costs and ROI, and tie everything together is massively helpful when going through the problem solving process. 

Record keeping

Working out meaningful solutions to organizational challenges is only one part of the process.  Thoughtfully documenting and keeping records of each problem solving step for future consultation is important in ensuring efficiency and meaningful change. 

For example, some problems may be lower priority than others but can be revisited in the future. If the team has ideated on solutions and found some are not up to the task, record those so you can rule them out and avoiding repeating work. Keeping records of the process also helps you improve and refine your problem solving model next time around!

Personal Kanban   #gamestorming   #action   #agile   #project planning   Personal Kanban is a tool for organizing your work to be more efficient and productive. It is based on agile methods and principles.

Research skills

Conducting research to support both the identification of problems and the development of appropriate solutions is important for an effective process. Knowing where to go to collect research, how to conduct research efficiently, and identifying pieces of research are relevant are all things a good researcher can do well. 

In larger groups, not everyone has to demonstrate this ability in order for a problem solving workshop to be effective. That said, having people with research skills involved in the process, particularly if they have existing area knowledge, can help ensure the solutions that are developed with data that supports their intention. Remember that being able to deliver the results of research efficiently and in a way the team can easily understand is also important. The best data in the world is only as effective as how it is delivered and interpreted.

Customer experience map   #ideation   #concepts   #research   #design   #issue analysis   #remote-friendly   Customer experience mapping is a method of documenting and visualizing the experience a customer has as they use the product or service. It also maps out their responses to their experiences. To be used when there is a solution (even in a conceptual stage) that can be analyzed.

Risk management

Managing risk is an often overlooked part of the problem solving process. Solutions are often developed with the intention of reducing exposure to risk or solving issues that create risk but sometimes, great solutions are more experimental in nature and as such, deploying them needs to be carefully considered. 

Managing risk means acknowledging that there may be risks associated with more out of the box solutions or trying new things, but that this must be measured against the possible benefits and other organizational factors. 

Be informed, get the right data and stakeholders in the room and you can appropriately factor risk into your decision making process. 

Decisions, Decisions…   #communication   #decision making   #thiagi   #action   #issue analysis   When it comes to decision-making, why are some of us more prone to take risks while others are risk-averse? One explanation might be the way the decision and options were presented.  This exercise, based on Kahneman and Tversky’s classic study , illustrates how the framing effect influences our judgement and our ability to make decisions . The participants are divided into two groups. Both groups are presented with the same problem and two alternative programs for solving them. The two programs both have the same consequences but are presented differently. The debriefing discussion examines how the framing of the program impacted the participant’s decision.

Team-building 

No single person is as good at problem solving as a team. Building an effective team and helping them come together around a common purpose is one of the most important problem solving skills, doubly so for leaders. By bringing a team together and helping them work efficiently, you pave the way for team ownership of a problem and the development of effective solutions. 

In a problem solving workshop, it can be tempting to jump right into the deep end, though taking the time to break the ice, energize the team and align them with a game or exercise will pay off over the course of the day.

Remember that you will likely go through the problem solving process multiple times over an organization’s lifespan and building a strong team culture will make future problem solving more effective. It’s also great to work with people you know, trust and have fun with. Working on team building in and out of the problem solving process is a hallmark of successful teams that can work together to solve business problems.

9 Dimensions Team Building Activity   #ice breaker   #teambuilding   #team   #remote-friendly   9 Dimensions is a powerful activity designed to build relationships and trust among team members. There are 2 variations of this icebreaker. The first version is for teams who want to get to know each other better. The second version is for teams who want to explore how they are working together as a team.

Time management 

The problem solving process is designed to lead a team from identifying a problem through to delivering a solution and evaluating its effectiveness. Without effective time management skills or timeboxing of tasks, it can be easy for a team to get bogged down or be inefficient.

By using a problem solving model and carefully designing your workshop, you can allocate time efficiently and trust that the process will deliver the results you need in a good timeframe.

Time management also comes into play when it comes to rolling out solutions, particularly those that are experimental in nature. Having a clear timeframe for implementing and evaluating solutions is vital for ensuring their success and being able to pivot if necessary.

Improving your skills at problem solving is often a career-long pursuit though there are methods you can use to make the learning process more efficient and to supercharge your problem solving skillset.

Remember that the skills you need to be a great problem solver have a large overlap with those skills you need to be effective in any role. Investing time and effort to develop your active listening or critical thinking skills is valuable in any context. Here are 7 ways to improve your problem solving skills.

Share best practices

Remember that your team is an excellent source of skills, wisdom, and techniques and that you should all take advantage of one another where possible. Best practices that one team has for solving problems, conducting research or making decisions should be shared across the organization. If you have in-house staff that have done active listening training or are data analysis pros, have them lead a training session. 

Your team is one of your best resources. Create space and internal processes for the sharing of skills so that you can all grow together. 

Ask for help and attend training

Once you’ve figured out you have a skills gap, the next step is to take action to fill that skills gap. That might be by asking your superior for training or coaching, or liaising with team members with that skill set. You might even attend specialized training for certain skills – active listening or critical thinking, for example, are business-critical skills that are regularly offered as part of a training scheme.

Whatever method you choose, remember that taking action of some description is necessary for growth. Whether that means practicing, getting help, attending training or doing some background reading, taking active steps to improve your skills is the way to go.

Learn a process 

Problem solving can be complicated, particularly when attempting to solve large problems for the first time. Using a problem solving process helps give structure to your problem solving efforts and focus on creating outcomes, rather than worrying about the format. 

Tools such as the seven-step problem solving process above are effective because not only do they feature steps that will help a team solve problems, they also develop skills along the way. Each step asks for people to engage with the process using different skills and in doing so, helps the team learn and grow together. Group processes of varying complexity and purpose can also be found in the SessionLab library of facilitation techniques . Using a tried and tested process and really help ease the learning curve for both those leading such a process, as well as those undergoing the purpose.

Effective teams make decisions about where they should and shouldn’t expend additional effort. By using a problem solving process, you can focus on the things that matter, rather than stumbling towards a solution haphazardly. 

Create a feedback loop

Some skills gaps are more obvious than others. It’s possible that your perception of your active listening skills differs from those of your colleagues. 

It’s valuable to create a system where team members can provide feedback in an ordered and friendly manner so they can all learn from one another. Only by identifying areas of improvement can you then work to improve them. 

Remember that feedback systems require oversight and consideration so that they don’t turn into a place to complain about colleagues. Design the system intelligently so that you encourage the creation of learning opportunities, rather than encouraging people to list their pet peeves.

While practice might not make perfect, it does make the problem solving process easier. If you are having trouble with critical thinking, don’t shy away from doing it. Get involved where you can and stretch those muscles as regularly as possible. 

Problem solving skills come more naturally to some than to others and that’s okay. Take opportunities to get involved and see where you can practice your skills in situations outside of a workshop context. Try collaborating in other circumstances at work or conduct data analysis on your own projects. You can often develop those skills you need for problem solving simply by doing them. Get involved!

Use expert exercises and methods

Learn from the best. Our library of 700+ facilitation techniques is full of activities and methods that help develop the skills you need to be an effective problem solver. Check out our templates to see how to approach problem solving and other organizational challenges in a structured and intelligent manner.

There is no single approach to improving problem solving skills, but by using the techniques employed by others you can learn from their example and develop processes that have seen proven results. 

Try new ways of thinking and change your mindset

Using tried and tested exercises that you know well can help deliver results, but you do run the risk of missing out on the learning opportunities offered by new approaches. As with the problem solving process, changing your mindset can remove blockages and be used to develop your problem solving skills.

Most teams have members with mixed skill sets and specialties. Mix people from different teams and share skills and different points of view. Teach your customer support team how to use design thinking methods or help your developers with conflict resolution techniques. Try switching perspectives with facilitation techniques like Flip It! or by using new problem solving methodologies or models. Give design thinking, liberating structures or lego serious play a try if you want to try a new approach. You will find that framing problems in new ways and using existing skills in new contexts can be hugely useful for personal development and improving your skillset. It’s also a lot of fun to try new things. Give it a go!

Encountering business challenges and needing to find appropriate solutions is not unique to your organization. Lots of very smart people have developed methods, theories and approaches to help develop problem solving skills and create effective solutions. Learn from them!

Books like The Art of Thinking Clearly , Think Smarter, or Thinking Fast, Thinking Slow are great places to start, though it’s also worth looking at blogs related to organizations facing similar problems to yours, or browsing for success stories. Seeing how Dropbox massively increased growth and working backward can help you see the skills or approach you might be lacking to solve that same problem. Learning from others by reading their stories or approaches can be time-consuming but ultimately rewarding.

A tired, distracted mind is not in the best position to learn new skills. It can be tempted to burn the candle at both ends and develop problem solving skills outside of work. Absolutely use your time effectively and take opportunities for self-improvement, though remember that rest is hugely important and that without letting your brain rest, you cannot be at your most effective. 

Creating distance between yourself and the problem you might be facing can also be useful. By letting an idea sit, you can find that a better one presents itself or you can develop it further. Take regular breaks when working and create a space for downtime. Remember that working smarter is preferable to working harder and that self-care is important for any effective learning or improvement process.

Want to design better group processes?

Over to you

Now we’ve explored some of the key problem solving skills and the problem solving steps necessary for an effective process, you’re ready to begin developing more effective solutions and leading problem solving workshops.

Need more inspiration? Check out our post on problem solving activities you can use when guiding a group towards a great solution in your next workshop or meeting. Have questions? Did you have a great problem solving technique you use with your team? Get in touch in the comments below. We’d love to chat!

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Going from a mere idea to a workshop that delivers results for your clients can feel like a daunting task. In this piece, we will shine a light on all the work behind the scenes and help you learn how to plan a workshop from start to finish. On a good day, facilitation can feel like effortless magic, but that is mostly the result of backstage work, foresight, and a lot of careful planning. Read on to learn a step-by-step approach to breaking the process of planning a workshop into small, manageable chunks.  The flow starts with the first meeting with a client to define the purposes of a workshop.…

How does learning work? A clever 9-year-old once told me: “I know I am learning something new when I am surprised.” The science of adult learning tells us that, in order to learn new skills (which, unsurprisingly, is harder for adults to do than kids) grown-ups need to first get into a specific headspace.  In a business, this approach is often employed in a training session where employees learn new skills or work on professional development. But how do you ensure your training is effective? In this guide, we'll explore how to create an effective training session plan and run engaging training sessions. As team leader, project manager, or consultant,…

Effective online tools are a necessity for smooth and engaging virtual workshops and meetings. But how do you choose the right ones? Do you sometimes feel that the good old pen and paper or MS Office toolkit and email leaves you struggling to stay on top of managing and delivering your workshop? Fortunately, there are plenty of online tools to make your life easier when you need to facilitate a meeting and lead workshops. In this post, we’ll share our favorite online tools you can use to make your job as a facilitator easier. In fact, there are plenty of free online workshop tools and meeting facilitation software you can…

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Critical Thinking and Decision-Making  - What is Critical Thinking?

Critical thinking and decision-making  -, what is critical thinking, critical thinking and decision-making what is critical thinking.

Critical Thinking and Decision-Making: What is Critical Thinking?

Lesson 1: what is critical thinking, what is critical thinking.

Critical thinking is a term that gets thrown around a lot. You've probably heard it used often throughout the years whether it was in school, at work, or in everyday conversation. But when you stop to think about it, what exactly is critical thinking and how do you do it ?

Watch the video below to learn more about critical thinking.

Simply put, critical thinking is the act of deliberately analyzing information so that you can make better judgements and decisions . It involves using things like logic, reasoning, and creativity, to draw conclusions and generally understand things better.

This may sound like a pretty broad definition, and that's because critical thinking is a broad skill that can be applied to so many different situations. You can use it to prepare for a job interview, manage your time better, make decisions about purchasing things, and so much more.

The process

As humans, we are constantly thinking . It's something we can't turn off. But not all of it is critical thinking. No one thinks critically 100% of the time... that would be pretty exhausting! Instead, it's an intentional process , something that we consciously use when we're presented with difficult problems or important decisions.

Improving your critical thinking

In order to become a better critical thinker, it's important to ask questions when you're presented with a problem or decision, before jumping to any conclusions. You can start with simple ones like What do I currently know? and How do I know this? These can help to give you a better idea of what you're working with and, in some cases, simplify more complex issues.  

Real-world applications

Let's take a look at how we can use critical thinking to evaluate online information . Say a friend of yours posts a news article on social media and you're drawn to its headline. If you were to use your everyday automatic thinking, you might accept it as fact and move on. But if you were thinking critically, you would first analyze the available information and ask some questions :

• What's the source of this article?
• Is the headline potentially misleading?
• What are my friend's general beliefs?
• Do their beliefs inform why they might have shared this?

After analyzing all of this information, you can draw a conclusion about whether or not you think the article is trustworthy.

Critical thinking has a wide range of real-world applications . It can help you to make better decisions, become more hireable, and generally better understand the world around you.

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7 Strategies for Better Group Decision-Making

• Torben Emmerling
• Duncan Rooders

What we’ve learned from behavioral science.

There are upsides and downsides to making decisions in a group. The main risks include falling into groupthink or other biases that will distort the process and the ultimate outcome. But bringing more minds together to solve a problem has its advantages. To make use of those upsides and increase the chances your team will land on a successful solution, the authors recommend using seven strategies, which have been backed by behavioral science research: Keep the group small, especially when you need to make an important decision. Bring a diverse group together. Appoint a devil’s advocate. Collect opinions independently. Provide a safe space to speak up. Don’t over-rely on experts. And share collective responsibility for the outcome.

When you have a tough business problem to solve, you likely bring it to a group. After all, more minds are better than one, right? Not necessarily. Larger pools of knowledge are by no means a guarantee of better outcomes. Because of an over-reliance on hierarchy, an instinct to prevent dissent, and a desire to preserve harmony, many groups fall into groupthink .

• Torben Emmerling is the founder and managing partner of Affective Advisory and the author of the D.R.I.V.E.® framework for behavioral insights in strategy and public policy. He is a founding member and nonexecutive director on the board of the Global Association of Applied Behavioural Scientists ( GAABS ) and a seasoned lecturer, keynote speaker, and author in behavioral science and applied consumer psychology.
• DR Duncan Rooders is the CEO of a Single Family Office and a strategic advisor to Affective Advisory . He is a former B747 pilot, a graduate of Harvard Business School’s Owner/President Management program. He is the founder of  Behavioural Science for Business (BSB)  and  an advisor  to several international organizations in  strategic and team  decision-making.”, and a consultant to several international organizations in strategic and financial decision making.

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5 Key Decision-Making Techniques for Managers

• 31 Mar 2020

Decision-making is an essential business skill that drives organizational performance. A survey of more than 750 companies by management consulting firm Bain found a 95 percent correlation between decision-making effectiveness and financial results. The data also showed companies that excel at making and executing strategic decisions generate returns nearly six percent higher than those of their competitors.

At many organizations, it’s up to managers to make the key decisions that influence business strategy. Research by consulting firm McKinsey , however, shows that 61 percent of them believe at least half the time they spend doing so is ineffective.

If you want to avoid falling into this demographic, here are five decision-making techniques you can employ to improve your management skills and help your organization succeed.

Access your free e-book today.

Decision-Making Techniques for Managers

1. take a process-oriented approach.

One of your primary responsibilities as a manager is to get things done with and through others, which involves leveraging organizational processes to accomplish goals and produce results. According to Harvard Business School Professor Len Schlesinger, who’s featured in the online course Management Essentials , decision-making is one of the processes you can use to your advantage.

“The majority of people think about making decisions as an event,” Schlesinger says. “It’s very rare to find a single point in time where a ‘decision of significance’ is made and things go forward from there. What we’re really talking about is a process. The role of the manager in overseeing that process is straightforward, yet, at the same time, extraordinarily complex.”

When establishing your decision-making process , first frame the issue at hand to ensure you ask the right questions and everyone agrees on what needs to be decided. From there, build your team and manage group dynamics to analyze the problem and craft a viable solution. By following a structured, multi-step process, you can make informed decisions and achieve the desired outcome.

2. Involve Your Team in the Process

Decision-making doesn’t have to be done in a vacuum. To avoid relying on managerial decisions alone, involve your team in the process to bring multiple viewpoints into the conversation and stimulate creative problem-solving .

Research in the journal Royal Society Open Science shows team decision-making is highly effective because it pools individuals’ collective knowledge and experience, leading to more innovative solutions and helping to surface and overcome hidden biases among groups.

Considering others’ perspectives on how to approach and surmount a specific challenge is an ideal alternative because it helps you become more aware of your implicit biases and manage your team with greater emotional intelligence .

Related: Emotional Intelligence Skills: What They Are & How to Develop Them

3. Foster a Collaborative Mindset

Fostering the right mindset early in the decision-making process is critical to ensuring your team works collaboratively—not contentiously.

When facing a decision, there are two key mindsets to consider:

• Advocacy: A mindset that regards decision-making as a contest. In a group with an advocacy mindset, individuals try to persuade others, defend their positions, and downplay their weaknesses.
• Inquiry: A mindset that navigates decision-making with collaborative problem-solving. An inquiry mindset centers on individuals testing and evaluating assumptions by presenting balanced arguments, considering alternatives, and being open to constructive criticism.

“On the surface, advocacy and inquiry approaches look deceptively similar,” HBS Professor David Garvin says in Management Essentials . “Both involve individuals engaged in debates, drawing on data, developing alternatives, and deciding on future directions. But, despite these similarities, inquiry and advocacy produce very different results.”

A study by software company Cloverpop found that decisions made and executed by diverse teams deliver 60 percent better results. Strive to instill your team members with an inquiry mindset so they’re empowered to think critically and feel their perspectives are welcomed and valued rather than discouraged and dismissed.

4. Create and Uphold Psychological Safety

For your team members to feel comfortable sharing their diverse perspectives and working collaboratively, it’s crucial to create and maintain a psychologically safe environment. According to research by technology company Google , psychological safety is the most important dynamic found among high-performing teams.

“Psychological safety is essential—first and foremost—for getting the information and perspectives out,” HBS Professor Amy Edmondson says in Management Essentials . “It’s helpful to be able to talk about what we know and think in an effective and thoughtful way before coming to a final conclusion.”

To help your team feel psychologically safe, be respectful and give fair consideration when listening to everyone’s opinions. When voicing your own point of view, be open and transparent, and adapt your communication style to meet the group’s needs. By actively listening and being attuned to your colleagues’ emotions and attitudes, you can forge a stronger bond of trust, make them feel more engaged and foster an environment that allows for more effective decisions.

Related: 5 Tips for Managing Change in the Workplace

5. Reiterate the Goals and Purpose of the Decision

Throughout the decision-making process, it’s vital to avoid common management pitfalls and lose sight of the goals and purpose of the decision on the table.

The goals you’re working toward need to be clearly articulated at the outset of the decision-making process—and constantly reiterated throughout—to ensure they’re ultimately achieved.

“It’s easy, as you get into these conversations, to get so immersed in one substantive part of the equation that you lose track of what the actual purpose is,” Schlesinger says.

Revisiting purpose is especially important when making decisions related to complex initiatives—such as organizational change —to ensure your team feels motivated and aligned and understands how their contributions tie into larger objectives.

Why Are Decision-Making Skills Important?

Effective decision-making can immensely impact organizational performance. By developing your decision-making skills, you can exercise sound judgment and guide your team through the appropriate frameworks and processes—resulting in more data-driven decisions .

You can also anticipate and navigate organizational challenges while analyzing the outcomes of previous efforts, which can have lasting effects on your firm’s success.

Improve Your Decision-Making Skills

Enhancing your decision-making capabilities can be an integral part of your journey to becoming a better manager , reaching your business goals, and advancing your career. In addition to real-world experience, furthering your education by taking a management training course can equip you with a wide range of skills and knowledge that enable both your team and organization to thrive.

Do you want to design, direct, and shape organizational processes to your advantage? Explore Management Essentials , one of our online leadership and management courses , and discover how you can influence the context and environment in which decisions get made.

This post was updated on December 21, 2022. It was originally published on March 31, 2020.

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Article • 8 min read

Pareto Analysis

Choosing the solution with the most impact.

By the Mind Tools Content Team

Imagine that you've just been promoted to head of department. You're brimming with ideas about how to improve things, so where do you start?

Ideally, you want to focus on fixing the problems that have the biggest impact. But how do you decide which one to tackle first?

Pareto Analysis is a simple decision-making technique for assessing competing problems and measuring the impact of fixing them. This allows you to focus on solutions that will provide the most benefit.

In this article, we'll show you how to carry out a Pareto Analysis, and explain how to use your findings to prioritize tasks that will deliver the greatest positive impact.

The 80/20 Rule

Pareto Analysis uses the Pareto Principle – also known as the "80/20 Rule" – which was coined by Italian economist, Vilfredo Pareto, in his 1896 book, "Cours d'économie politique." [1]

The Pareto Principle states that 80 percent of a project's benefit comes from 20 percent of the work. Or, conversely, that 80 percent of problems can be traced back to 20 percent of causes. Pareto Analysis identifies the problem areas or tasks that will have the biggest payoff. The tool has several benefits, including:

• Identifying and prioritizing problems and tasks.
• Helping people to organize their workloads more effectively.
• Improving productivity.
• Improving profitability.

The figures 80 and 20 aren't "set in stone," and should be taken as a guide. The Pareto Principle illustrates the lack of symmetry that often occurs between the work you put in and the results you achieve. For example, you might find that 13 percent of work could generate 87 percent of returns. Or that 70 percent of problems could be resolved by dealing with 30 percent of underlying causes.

Pareto Analysis Steps

Now, we'll take a look at how to carry out a Pareto Analysis:

1. Identify and List Problems

Write out a list of all of the problems that you need to resolve. Where possible, gather feedback from clients and team members. This could take the form of customer surveys, formal complaints, or helpdesk logs, for example.

2. Identify the Root Cause of Each Problem

Next, get to the root cause of each problem. Techniques such as the 5 Whys , Cause and Effect Analysis , and Root Cause Analysis are useful tools for this.

3. Score Problems

Now, score each problem that you've listed by importance. The scoring method that you use will depend on the sort of problem that you're trying to resolve.

For example, if you want to improve profits, you could score problems by how much they cost. Or, if you're trying to improve customer satisfaction, you might score them based on the number of complaints that you've received about each.

4. Group Problems Together

Use the root cause analysis that you carried out in Step 3 to group problems together by common cause. For example, if three of your problems are caused by lack of staff, you could put these into the same group.

5. Add up Scores for Each Group

Now, add up the scores for each group that you've identified. The one with the top score should be your highest priority, and the group with the lowest score your lowest priority.

6. Take Action

Finally, it's time to take action! Your highest scoring problem will likely have the biggest payoff once fixed, so start brainstorming ideas on how to solve this one first.

You may find that your lowest-scoring problems aren't worth bothering about, particularly if they are very costly to fix. Use your Pareto Analysis to save your energy and resources for what's important!

While this approach is great for identifying the most important root cause to deal with, it doesn't take into account the cost of doing so. Where costs are significant, you'll need to use techniques such as Cost/Benefit Analysis , and Net Present Value (NPV) and Internal Rate of Return (IRR) to determine which changes you should implement.

Pareto Analysis Example

Jack has taken over a failing computer service center, with a host of problems that need resolving. His objective is to increase overall customer satisfaction.

He decides to carry out a Pareto Analysis to assess and prioritize the biggest issues facing the center. He starts by listing these (see the Problem column in the table, below). He then identifies the underlying causes behind each (see the Causes column). Finally, he scores each item by the number of customer complaints that each has received (see the Score column).

Jack uses his analysis to group problems together by cause, then adds up the scores for each group identified. He is now able to order the main causes affecting the center, starting with the one that has attracted the highest number of customer complaints:

• Lack of training (items 5 and 6) – 51 complaints.
• Too few service center staff (items 1 and 2) – 21 complaints.
• Poor organization and preparation (items 3 and 4) – 6 complaints.

Figure 1. Pareto Analysis of Computer Services Center

As you can see from figure 1, above, the business will benefit most from giving staff more training, so Jack should tackle this first. He could also look to increase the number of staff in the call center. However, it's possible that this won't be necessary – the provision of further training may help to reduce customer complaints and increase staff productivity.

Jack's Pareto Analysis has enabled him to quickly identify the areas of the business that face the biggest challenges, so he can focus his efforts where they are needed most and prioritize issues that will provide the biggest payoff to the business. This will likely save him a great deal of time and money that he might otherwise have spent trying to fix a range of different issues, some of which may have provided very little benefit.

Pareto Analysis is a simple decision-making technique that can help you to assess and prioritize different problems or tasks by comparing the benefit that solving each one will provide.

It's based on the Pareto Principle (also known as the 80/20 Rule) – the idea that 80 percent of problems may be the result of as little as 20 percent of causes.

To use Pareto Analysis, you first need to identify and list the problems that you face, and their root causes. Then, score each problem according to its impact (the scoring system that you use will depend on the types of problems that you are attempting to fix).

Group the problems together by cause and add up scores for each group. This will allow you to identify the problems that will have the biggest benefits if resolved.

Finally, use your findings to prioritize your workload, so that your efforts can be directed toward issues that are the most impactful, and away from problems that are less impactful.

[1] Pareto, V. (1897). 'Cours d'économie politique,' Lausanne: l'Université de Lausanne.

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Rational Decision Making Model

A rational decision making model provides a structured and sequenced approach to decision making.

Using such an approach can help to ensure discipline and consistency is built into your decision making process. As the word rational suggests, this approach brings logic and order to decision making. Our rational decision making model consists of a series of steps, beginning with problem/opportunity identification, and ending with actions to be taken on decisions made.

There seems to be a problem with decision making. According to Ohio State University management professor, Paul C. Nutt , we only get about 50% of our decisions in the workplace right! Half the time they are wrong, so there is clearly plenty of scope to improve on our decision making processes. Based on his research into over 300 decisions, made in a range of organizations, he discovered that

Some tactics with a good track record are commonly known, but uncommonly practiced.

Why? Well one reason that emerged from his research is that:

Too often, managers make bad tactical selections ….. because they believe that following recommended decision-making practices would take too much time and demand excessive cash outlays.

Nutt argues that using good decision making practices actually costs very little. (Even less in this case because our rational decision making model is a free tool to help improve the way you make decisions!).

This article is part of our series on decision making. Our first article, types of decision making outlines a range of decision making approaches. Rational decision making forms part of what we have termed types of decision, categorized by process. In this category we have put two contrasting approaches, that of rational decision making and that of judgement or intuitive decision making .

A General Rational Decision Making Model

Rational decision making processes consist of a sequence of steps designed to rationally develop a desired solution. Typically these steps involve:

1: Identifying a problem or opportunity

The first step is to recognise a problem or to see opportunities that may be worthwhile. A rational decision making model is best employed where relatively complex decisions have to be made.

(So the first decision making lesson should be to ask yourself if you really have a problem to solve or a decision to make. Then read this article for more specific advice: Problem Solving Skill: Finding the Right Problem to Solve ).

2: Gathering information

What is relevant and what is not relevant to the decision? What do you need to know before you can make a decision, or that will help you make the right one?

3: Analyzing the situation

What alternative courses of action may be available to you? What different interpretations of the data may be possible? Our Problem Solving Activity uses a set of structured questions to encourage both broad and deep analysis of your situation or problem.

4: Developing options

Generate several possible options. Be creative and positive. Read The Power of Positive Thinking for our five questions that create possibilities.

5: Evaluating alternatives

What criteria should you use to evaluate? Evaluate for feasibility, acceptability and desirability. Which alternative will best achieve your objectives?

6: Selecting a preferred alternative

Explore the provisional preferred alternative for future possible adverse consequences. What problems might it create? What are the risks of making this decision?

7: Acting on the decision

Put a plan in place to implement the decision. Have you allocated resources to implement? Is the decision accepted and supported by colleagues? Are they committed to to making the decision work?

Strengths and Weaknesses of the Rational Decision Making Model

However, we should always remember that whilst the model indicates what needs to be done, it’s often how things are done that characterises effective decision making.

Paul C. Nutt’s research illustrates that bad decisions were usually bad because two things were missing:

• Adequate participation of stakeholders in the decision making process
• Sufficient time spent generating a range of possible solutions

Too often those who should have been involved weren’t, and solutions were proposed and acted upon too quickly. Often with disastrous effects!

A second weakness arises if we attempt to use the model in isolation. This is particularly important where complex or important decisions are involved.

The principle assumption of the rational decision making process is that human beings make rational decisions. However, there are numerous factors which determine our decisions, many of which are not rational. In many situations decisions have to be made with incomplete and insufficient information.

Putting the Rational Decision Making Model to work

Regardless of any perceived weaknesses these models are essential tools.

You’ll find more on these and other practical techniques in our related e-guides (below) or in Making Better Decisions.

Use the tools in this guide to help your decision making:

Tool 1: Do you need to make a decision? Tool 2: The POCA decision making model Tool 3: Decision levels Tool 4: 7 step decision making process Tool 5: Team decision making Tool 6: Evaluating alternatives

See for yourself that a rational decision making model can help us to make better decisions – and thus help us to be better managers.

Further Reading

Definition of decision making Intuition and decision making

>>> Return to the Decision Making Knowledge Hub

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We’ve used [ the guides ] as support tools for learners on our talent management programmes which has saved me a lot of time and a lot of money. I’d definitely recommend them.

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The Psychology of Decision-Making: How to Identify Your Strengths and Weaknesses

Featured events | jun 26, 2023 | gabelli school of business.

When it comes to making decisions, would you describe yourself as an adventurer, detective, listener, thinker, or visionary? According to author, educator, and decision-science expert Cheryl Strauss Einhorn, determining the type of problem solver you are based on these “profiles” sheds light not only on how you make decisions, but also how you can streamline and improve the process.

Einhorn is the founder and CEO of Decisive, a New York City-based company that trains business professionals in complex problem-solving skills, as well as an adjunct professor at Columbia and Cornell universities. After working as an investigative business journalist for two decades, she developed the AREA method, a decision-making system that aims to address our subjective biases and improve the judgment we use to make decisions.

Einhorn outlined her insights in her recently published third book, Problem Solver: Maximizing Your Strengths To Make Better Decisions , also the topic of this webinar co-sponsored by the Gabelli Center for Global Security Analysis, Museum of American Finance, and CFA Society New York. In a conversation with Paul Johnson, adjunct professor at the Gabelli School, she explained how to unpack the psychology of decision-making to achieve the best results.

“It’s very hard to get out of our own way, especially when we don’t have any language for it,” Einhorn said. “The problem-solver profiles give us a lexicon so that we can mull over the meaning of how we interact, what is our actual perspective, and what are some different opportunities” to fine-tune our approach.

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The Ultimate Guide to Intuitive Decision Making for Managers

What is intuition, what does intuitive decision making mean, examples of intuitive decision making in the workplace, what are the disadvantages of intuitive decision making, what are the advantages of intuitive decision making, models of intuitive decision-making for managers, how to increase your intuitive decision making power, expertise and intuitive decision making, rational versus intuitive decision-making, intuitive decision making faqs.

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• Hiring Decisions: Managers often use their intuition when hiring decisions, relying on their gut feeling to assess the fit between a candidate and the organization. This could include factors such as the candidate’s body language, interpersonal skills , and enthusiasm for the role.
• Prioritizing Tasks: In a fast-paced work environment, managers may use their intuition to quickly prioritize tasks and allocate resources based on what they believe will significantly impact the organization.
• Problem Solving: When faced with a complex or challenging problem, managers may rely on their intuition to develop creative and practical solutions. This could involve generating a range of potential solutions and then using their gut feeling to identify the best action.
• Evaluating Risks: Managers are often required to make decisions involving taking risks, and they may use intuition to assess the likelihood of success or failure. This could include evaluating the potential risks and benefits of a new project or investment, and making a decision based on their experience and judgment.
• Adapting to Change: In a rapidly changing business environment, managers may use intuition to make quick and effective decisions to adjust to new circumstances. This could involve making decisions about resource allocation , restructuring, or pivoting the business in a new direction based on their experience and understanding of the market.
• Bias: Intuition can be influenced by unconscious biases and previous experiences, which can lead to decisions that are not objectively accurate. This can result in a narrow-minded approach and can limit the ability to consider alternative perspectives and options.
• Inaccuracy: Intuition is only sometimes accurate and can lead to incorrect decisions. This is because intuition is based on previous experiences and learned patterns, which may only occasionally be applied to the current situation.
• Overconfidence: People who rely on intuition may feel confident in their decisions, even when they need to be better informed or based on incomplete information. This overconfidence can lead to poor decision making and a lack of awareness of potential risks and consequences.
• Emotional influence: Intuition can be influenced by emotions and personal biases, which can cloud judgment and lead to decisions that are not in line with an individual’s goals and objectives.
• Limited consideration: Intuition is a fast and automatic process that only allows for the thorough examination and review of some relevant information and options. This can result in decisions that need to be better thought out and may not be optimal.
• Speed: Intuitive decision making is a fast and automatic process that allows individuals to make quick decisions in fast-paced and dynamic environments.
• Flexibility: Intuition is based on previous experiences and learned patterns, allowing individuals to adapt quickly to new and changing situations.
• Ease of use: Intuition is an unconscious and non-verbal process that requires no formal training or expertise. This makes it accessible and easy to use for a wide range of individuals.
• Effective in uncertain situations: Intuition can be particularly valuable in uncertain or ambiguous situations where there is no straightforward right or wrong answer. In these cases, intuition can guide individuals toward a decision.
• Complementary to other forms of reasoning: Intuition can be used in conjunction with other forms of logic and analysis, such as critical thinking and systematic problem solving. This can lead to more well-informed and accurate decisions.
• Enhances creativity: Intuition can lead to innovative and creative solutions by encouraging individuals to think outside the box and consider unconventional approaches.
• The Recognition-Primed Decision (RPD) model: This model was developed by Gary Klein and suggested that intuition is a rapid and unconscious process of recognizing patterns and evaluating alternatives based on past experiences. According to this model, individuals first recognize their situation and then instinctively generate a set of potential solutions based on previous experiences. The final decision is then made based on the most promising solution.
• The Deliberation-Without-Attention (DWA) model: This model was developed by Gerd Gigerenzer and provided a cognitive explanation for intuitive decision making. According to this model, intuition results from unconscious and parallel information processing alongside conscious analysis. The model suggests that individuals have the ability to unconsciously weigh up options and arrive at a decision without conscious attention.
• The Adaptive unconscious model: This model was developed by Timothy Wilson and suggests that intuition is the result of unconscious mental processes that have been honed through experience. According to this model, individuals can unconsciously recognize patterns, process information, and make decisions based on previous occasions, even in complex situations.
• The Dual Process model: This model suggests that decision making results from two parallel processes – conscious and unconscious. According to this model, the unconscious process, referred to as intuition, operates quickly and automatically, while the conscious process, referred to as reasoning, operates deliberately and systematically. The final decision is the result of the interaction between these two processes.
• Gain expertise and experience: As expertise and experience increase in a specific field, intuition becomes more reliable and accurate. Managers can improve their intuition by profoundly understanding their industry, business, and customers.
• Reflect on past experiences: Managers can reflect on their past experiences and decisions to identify patterns and connections that they may have previously overlooked. This can help them develop a deeper understanding of their field’s underlying principles and relationships.
• Seek feedback: Managers can ask for feedback from colleagues, mentors, and subordinates to gain insights into how others perceive their decision-making style and identify improvement areas.
• Practice mindfulness and self-awareness: Mindfulness and self-awareness can help managers better understand their biases, preferences, and tendencies, which can influence their intuition. By becoming more self-aware, managers can identify and correct these biases to enhance the accuracy of their intuition.
• Use data and analytics: Intuition can be enhanced by combining it with data and analytics. By combining intuition’s fast and flexible nature with the rigor and accuracy of data, managers can make more informed and accurate decisions.
• Stay informed: Managers can stay knowledgeable about current trends, developments, and best practices in their field to increase their knowledge base and improve their intuition.
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Aastha Bensla

Aastha, a passionate industrial psychologist, writer, and counselor, brings her unique expertise to Risely. With specialized knowledge in industrial psychology, Aastha offers a fresh perspective on personal and professional development. Her broad experience as an industrial psychologist enables her to accurately understand and solve problems for managers and leaders with an empathetic approach.

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Analytical Decision-Making: Enhancing Skills Through Real-Life Scenarios

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Every day, we face countless decisions – from personal choices like what to wear to more complex decisions that can impact our careers, businesses, and even lives. Analytical decision-making is a critical skill that can help you navigate these challenges with confidence and precision.

In this blog post, we will explore the various aspects of analytical decision-making and delve into how it can be applied to various situations.

Analytical Decision Making

Analytical decision-making is a structured, logical, and data-driven approach to problem-solving and decision-making. It involves breaking down complex issues into smaller, more manageable components, analyzing the available data, and identifying the best course of action based on careful analysis.

By using this approach, analytical decision-makers can make informed decisions that minimize risk and maximize the likelihood of achieving desired outcomes.

The Decision Making Process

The decision-making process is a series of steps that individuals or groups follow to identify, evaluate, and select the best possible solution to a given problem or situation. It can be broken down into several stages:

• Identify the problem : Recognize the issue that needs to be addressed and clearly define the objectives.
• Gather information : Collect relevant data, facts, and expert opinions to better understand the problem and potential solutions.
• Analyze the information : Use critical thinking and analytical skills to assess the information and identify patterns, trends, or cause-and-effect relationships.
• Develop alternatives : Generate multiple options or solutions to address the problem, considering the potential risks and benefits of each.
• Evaluate alternatives : Compare and assess the alternatives based on specific criteria, such as cost, feasibility, and alignment with the company’s mission or personal goals.
• Select the best solution : Choose the most suitable option based on the analysis and evaluation.
• Implement the decision : Execute the chosen solution and monitor its progress, making adjustments as needed.
• Review and learn : Reflect on the decision-making process and learn from the outcomes to improve future decision-making.

Related : Analytical Intelligence

The Four Decision-Making Styles

People have different decision-making styles, which are the preferred ways of approaching problems and making decisions. There are four decision-making styles, namely:

• Analytical : Analytical decision-makers rely on careful analysis, data, and logic to make decisions. They have a high tolerance for ambiguity and complexity and take the time to thoroughly analyze all available data before making a decision.
• Directive : Directive decision makers are task-focused, efficient, and prefer to make decisions quickly based on their own knowledge and past experiences. They have a low tolerance for ambiguity and prefer clear, direct information.
• Conceptual : Conceptual style decision-making involves creative, big-picture thinkers who consider multiple perspectives and seek innovative solutions. They have a high tolerance for ambiguity and enjoy exploring different ideas and possibilities.
• Behavioral : Behavioral decision-makers are socially oriented, empathetic, and prioritize the needs and feelings of others. They prefer to make decisions based on the input and feedback of multiple people and strive for harmony and consensus.

It is important to recognize and understand your decision-making style, as well as the styles of others, to enhance collaboration, communication, and effectiveness in group decision-making situations.

Analytical Decision-Making Style

Analytical decision-makers are characterized by their systematic approach to problem-solving and decision-making. They:

• Seek detailed information and data to support their decisions
• Analyze data to identify patterns, trends, and cause and effect relationship
• Prefer objective, factual information over subjective opinions or feelings
• Have a high tolerance for ambiguity and are comfortable with complex situations
• Are patient and willing to invest time in thorough analysis

Directive Decision-Making Style

Directive Decision makers are focused on efficiency, speed, and achieving results. They:

• Rely on their knowledge and past experiences to make decisions
• Prefer clear, concise information and direct observation
• Have a low tolerance for ambiguity and uncertainty
• Are task-oriented and prefer to maintain the status quo
• May be more prone to making quick, potentially risky decisions

Conceptual Decision-Making Style

Conceptual decision-makers are creative thinkers who embrace new ideas and perspectives. They:

• Enjoy exploring multiple options and competing ideas
• Seek information from various sources and are open to diverse viewpoints
• Have a high tolerance for ambiguity and thrive in complex situations
• Value innovation and creative approaches to problem-solving
• May be more willing to take higher risks in pursuit of novel solutions

Behavioral Decision Making Style

Behavioral decision-makers prioritize relationships, collaboration, and the well-being of others. They:

• Are socially oriented and value the input and feelings of others
• Strive for consensus and harmony in group decision-making situations
• Have a moderate tolerance for ambiguity and uncertainty
• Focus on creating a positive team culture and fostering collaboration
• Maybe more inclined to make decisions based on emotions and subjective factors

Adapting Your Decision-Making Style to Different Situations

While each decision-making style has its strengths and weaknesses, effective decision-making often requires adapting to different situations and incorporating elements of multiple styles. To enhance your decision-making abilities, consider the following tips:

• Recognize your decision-making style : Reflect on your past decisions and analyze your tendencies, strengths, and weaknesses. Awareness of your decision-making style can help you identify areas for improvement and adapt your approach when needed.
• Understand the decision-making styles of others: Recognize and appreciate the different styles of decision-making that your team members, colleagues, or family members may have. This can help you foster open communication, collaboration, and mutual understanding.
• Seek diverse perspectives : Encourage input from individuals with different decision-making styles to gather a wide range of ideas, opinions, and viewpoints. This can lead to more creative solutions and better decision outcomes.
• Adapt your style to the situation : Consider the specific context, objectives, and constraints of each decision, and adjust your decision-making style accordingly. For example, in a time-sensitive situation, you may need to adopt a more directive decision-making approach, while a complex, uncertain problem may call for a more analytical or conceptual style.
• Develop a balanced decision-making process: Incorporate elements of all four decision-making styles to ensure a well-rounded, comprehensive approach. For instance, use analytical decision-making to gather and analyze data, conceptual decision-making to generate creative ideas, directive decision-making to make timely decisions, and behavioral decision-making to consider the emotional and interpersonal aspects of the situation.

Related : Examples of Critical Thinking and Problem Solving

Applying Analytical Decision Making to Real-Life Scenarios

To better understand how analytical decision-making can be applied in various situations, let’s explore two hypothetical scenarios:

Scenario 1: Undeveloped Land Investment

Imagine you are considering investing in a large parcel of undeveloped land. The investment carries potential risks and rewards, and you need to decide whether to proceed or not. An analytical decision-maker would:

• Gather detailed information on the land, including its size, location, zoning regulations, environmental factors, and potential uses.
• Analyze historical data on land values, market trends , and comparable properties to project potential appreciation and return on investment.
• Identify potential risks, such as changes in zoning regulations, environmental issues, or economic downturns, and assess their likelihood and impact.
• Generate multiple options for developing the land, such as residential, commercial, or mixed-use projects, and evaluate their feasibility and profitability.
• Compare the potential risks and rewards of each option, taking into account factors such as market demand, construction costs, and alignment with personal or business goals.
• Select the best course of action based on the careful analysis of data and potential outcomes, considering both short-term and long-term implications.
• Monitor the progress of the investment, making adjustments as needed based on changing circumstances or new information.

In this scenario, an analytical decision maker’s thorough research and data-driven approach would help minimize risks and maximize the likelihood of a successful investment.

Scenario 2: Career Change Decision

Imagine you are considering a significant career change, such as transitioning from a corporate job to entrepreneurship or pursuing a new field entirely. An analytical decision-maker would:

• Identify the key factors that will influence the decision, such as personal interests, skills, financial stability, job market trends, and long-term career goals .
• Gather data on the potential new career path, including job prospects, salary ranges, required education or training, and growth opportunities.
• Assess personal strengths, weaknesses, and preferences to determine how well the new career aligns with their abilities and goals.
• Identify potential risks and challenges associated with the career change, such as financial instability, increased workload, or lack of experience in the new field.
• Develop multiple options for making the transition, such as taking a part-time position, enrolling in a training program, or starting a side business.
• Evaluate the pros and cons of each option, weighing the potential risks, rewards, and long-term implications.
• Choose the best course of action based on the analysis, taking into account both practical considerations and personal fulfillment.

In this scenario, analytical decision-making would help ensure that the career change is well-informed, strategically planned, and likely to result in long-term satisfaction and success.

Related : Responsibilities of a Manager

Analytical decision-making is a powerful approach to problem-solving that can lead to more effective, data-driven decisions. By understanding the different decision-making styles, recognizing your preferences and tendencies, and adapting your approach to different situations, you can become a more versatile and effective decision-maker.

Developing strong analytical decision-making skills can have a significant impact on both your personal and professional life, helping you navigate complex situations, assess risks and rewards, and make well-informed choices that align with your goals and values.

Remember to stay open to diverse perspectives, continuously learn and adapt, and strive for a balanced, comprehensive decision-making process that incorporates the strengths of all four decision-making styles.

Frequently Asked Questions (FAQs)

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SWOT analysis: Examples and templates

A SWOT analysis helps you identify strengths, weaknesses, opportunities, and threats for a specific project or your overall business plan. It’s used for strategic planning and to stay ahead of market trends. Below, we describe each part of the SWOT framework and show you how to conduct your own.

Whether you’re looking for external opportunities or internal strengths, we’ll walk you through how to perform your own SWOT analysis, with helpful examples along the way. 

What is a SWOT analysis?

A SWOT analysis is a technique used to identify strengths, weaknesses, opportunities, and threats for your business or even a specific project. It’s most widely used by organizations—from small businesses and non-profits to large enterprises—but a SWOT analysis can be used for personal purposes as well. 

While simple, a SWOT analysis is a powerful tool for helping you identify competitive opportunities for improvement. It helps you improve your team and business while staying ahead of market trends.

What does SWOT stand for?

SWOT is an acronym that stands for: 

Opportunities

When analyzed together, the SWOT framework can paint a larger picture of where you are and how to get to the next step. Let’s dive a little deeper into each of these terms and how they can help identify areas of improvement. 

Strengths in SWOT refer to internal initiatives that are performing well. Examining these areas helps you understand what’s already working. You can then use the techniques that you know work—your strengths—in other areas that might need additional support, like improving your team’s efficiency . 

When looking into the strengths of your organization, ask yourself the following questions:

What do we do well? Or, even better: What do we do best?

What’s unique about our organization?

What does our target audience like about our organization?

Which categories or features beat out our competitors?

 Example SWOT strength:

Customer service: Our world-class customer service has an NPS score of 90 as compared to our competitors, who average an NPS score of 70.

Weaknesses in SWOT refer to internal initiatives that are underperforming. It’s a good idea to analyze your strengths before your weaknesses in order to create a baseline for success and failure. Identifying internal weaknesses provides a starting point for improving those projects.

Identify the company’s weaknesses by asking:

Which initiatives are underperforming and why?

What can be improved?

What resources could improve our performance?

How do we rank against our competitors?

Example SWOT weakness:

E-commerce visibility: Our website visibility is low because of a lack of marketing budget , leading to a decrease in mobile app transactions.

Opportunities in SWOT result from your existing strengths and weaknesses, along with any external initiatives that will put you in a stronger competitive position. These could be anything from weaknesses that you’d like to improve or areas that weren’t identified in the first two phases of your analysis. 

Since there are multiple ways to come up with opportunities, it’s helpful to consider these questions before getting started:

What resources can we use to improve weaknesses?

Are there market gaps in our services?

What are our business goals for the year?

What do your competitors offer?

Example SWOT opportunities:

Marketing campaign: To improve brand visibility, we’ll run ad campaigns on YouTube, Facebook, and Instagram.

Threats in SWOT are areas with the potential to cause problems. Different from weaknesses, threats are external and ‌out of your control. This can include anything from a global pandemic to a change in the competitive landscape. 

Here are a few questions to ask yourself to identify external threats:

What changes in the industry are cause for concern?

What new market trends are on the horizon?

Where are our competitors outperforming us?

Example SWOT threats:

New competitor: With a new e-commerce competitor set to launch within the next month, we could see a decline in customers.

SWOT analysis example

One of the most popular ways to create a SWOT analysis is through a SWOT matrix—a visual representation of strengths, weaknesses, opportunities, and threats. The matrix comprises four separate squares that create one larger square. 

A SWOT matrix is great for collecting information and documenting the questions and decision-making process . Not only will it be handy to reference later on, but it’s also great for visualizing any patterns that arise. 

Check out the SWOT matrix below for a simple example. As you can see, each of the quadrants lists out the company's strengths, weaknesses, opportunities, and threats.

When used correctly and effectively, your matrix can be a great toolkit for evaluating your organization’s strengths and weaknesses. 

How to do a SWOT analysis, with examples 

A SWOT analysis can be conducted in a variety of ways. Some teams like to meet and throw ideas on a whiteboard, while others prefer the structure of a SWOT matrix. However you choose to make your SWOT analysis, getting creative with your planning process allows new ideas to flow and results in more unique solutions. 

There are a few ways to ensure that your SWOT analysis is thorough and done correctly. Let’s take a closer look at some tips to help you get started.

Tip 1: Consider internal factors 

Often, strengths and weaknesses stem from internal processes. These tend to be easier to solve since you have more control over the outcome. When you come across internal factors, you can start implementing improvements in a couple of different ways.

Meet with department stakeholders to form a business plan around how to improve your current situation.

Research and implement new tools, such as a project management tool , that can help streamline these processes for you. 

Take immediate action on anything that can be changed in 24 hours or less. If you don’t have the capacity, consider delegating these items to others with deadlines. 

The way you go about solving internal factors will depend on the type of problem. If it’s more complex, you might need to use a combination of the above or a more thorough problem management process.

Tip 2: Evaluate external factors

External factors stem from processes outside of your control. This includes competitors, market trends, and anything else that’s affecting your organization from the outside in. 

External factors are trickier to solve, as you can’t directly control the outcome. What you can do is pivot your own processes in a way that mitigates negative external factors. 

You can work to solve these issues by:

Competing with market trends

Forecasting market trends before they happen

Improving adaptability to improve your reaction time

Track competitors using reporting tools that automatically update you as soon as changes occur 

While you won’t be able to control an external environment, you can control how your organization reacts to it. 

Let’s say, for instance, that you’re looking to compete with a market trend. For example, a competitor introduced a new product to the market that’s outperforming your own. While you can’t take that product away, you can work to launch an even better product or marketing campaign to mitigate any decline in sales. 

Tip 3: Hold a brainstorming session

Brainstorming new and innovative ideas can help to spur creativity and inspire action. To host a high impact brainstorming session, you’ll want to: 

Invite team members from various departments. That way, ideas from each part of the company are represented. 

Be intentional about the number of team members you invite, since too many participants could lead to a lack of focus or participation. The sweet spot for a productive brainstorming session is around 10 teammates. 

Use different brainstorming techniques that appeal to different work types.

Set a clear intention for the session.

Tip 4: Get creative

In order to generate creative ideas, you have to first invite them. That means creating fun ways to come up with opportunities. Try randomly selecting anonymous ideas, talking through obviously bad examples, or playing team building games to psych up the team.

Tip 5: Prioritize opportunities

Now, rank the opportunities. This can be done as a team or with a smaller group of leaders. Talk through each idea and rank it on a scale of one through 10. Once you’ve agreed on your top ideas based on team capabilities, competencies, and overall impact, it’s easier to implement them.

Tip 6: Take action

It’s all too easy to feel finished at this stage —but the actual work is just beginning. After your SWOT analysis, you’ll have a list of prioritized opportunities. Now is the time to turn them into strengths. Use a structured system such as a business case , project plan, or implementation plan to outline what needs to get done—and how you plan to do it.

SWOT analysis template

A SWOT analysis template is often presented in a grid format, divided into four quadrants. Each quadrant represents one of the four elements. 

Use this free SWOT analysis template to jump-start your team’s strategic planning.

Identify the strengths that contribute to achieving your objectives. These are internal characteristics that give you an advantage. Some examples could be a strong brand reputation, an innovative culture, or an experienced management team.

Next, focus on weaknesses. These are internal factors that could serve as obstacles to achieving your objectives. Common examples might include a lack of financial resources, high operational costs, or outdated technology. 

Move on to the opportunities. These are external conditions that could be helpful in achieving your goals. For example, you might be looking at emerging markets, increased demand, or favorable shifts in regulations.

Lastly, let's address threats. These are external conditions that could negatively impact your objectives. Examples include increased competition or potential economic downturns.

Why is a SWOT analysis important?

A SWOT analysis can help you improve processes and plan for growth. While similar to a competitive analysis , it differs because it evaluates both internal and external factors. Analyzing key areas around these opportunities and threats will equip you with the insights needed to set your team up for success.

A SWOT analysis isn’t only useful for organizations. With a personal SWOT analysis, you can examine areas of your life that could benefit from improvement, from your leadership style to your communication skills. These are the benefits of using a SWOT analysis in any scenario. 

1. Identifies areas of opportunity

One of the biggest benefits of conducting an analysis is to determine opportunities for growth. It’s a great starting point for startups and teams that know they want to improve but aren’t exactly sure how to get started. 

Opportunities can come from many different avenues, like external factors such as diversifying your products for competitive advantage or internal factors like improving your team’s workflow . Either way, capitalizing on opportunities is an excellent way to grow as a team.

2. Identifies areas that could be improved

Identifying weaknesses and threats during a SWOT analysis can pave the way for a better business strategy.

Ultimately, learning from your mistakes is the best way to excel. Once you find areas to streamline, you can work with team members to brainstorm an action plan . This will let you use what you already know works and build on your company’s strengths.

3. Identifies areas that could be at risk

Whether you have a risk register in place or not, it’s always crucial to identify risks before they become a cause for concern. A SWOT analysis can help you stay on top of actionable items that may play a part in your risk decision-making process. 

It may be beneficial to pair your SWOT analysis with a PEST analysis, which examines external solutions such as political, economic, social, and technological factors—all of which can help you identify and plan for project risks .

When should you use a SWOT analysis?

You won’t always need an in-depth SWOT analysis. It’s most useful for large, general overviews of situations, scenarios, or your business.

A SWOT analysis is most helpful:

Before you implement a large change—including as part of a larger change management plan

When you launch a new company initiative

If you’d like to identify opportunities for growth and improvement

Any time you want a full overview of your business performance

If you need to identify business performance from different perspectives

SWOT analyses are general for a reason—so they can be applied to almost any scenario, project, or business. 

SWOT analysis: Pros and cons

Although SWOT is a useful strategic planning tool for businesses and individuals alike, it does have limitations. Here’s what you can expect.

The simplicity of SWOT analysis makes it a go-to tool for many. Because it is simple, it takes the mystery out of strategic planning and lets people think critically about their situations without feeling overwhelmed. 

For instance, a small bakery looking to expand its operations can use SWOT analysis to easily understand its current standing. Identifying strengths like a loyal customer base, weaknesses such as limited seating space, opportunities like a rising trend in artisanal baked goods, and threats from larger chain bakeries nearby can all be accomplished without any specialized knowledge or technical expertise.

Versatility

Its versatile nature allows SWOT analysis to be used across various domains. Whether it’s a business strategizing for the future or an individual planning their career path, SWOT analysis lends itself well. 

For example, a tech start-up in the competitive Silicon Valley landscape could employ SWOT to navigate its pathway to profitability. Strengths might include a highly skilled development team; weaknesses could be a lack of brand recognition; opportunities might lie in emerging markets; and threats could include established tech giants. 

Meaningful analysis

SWOT excels in identifying external factors that could impact performance. It nudges organizations to look beyond the present and anticipate potential future scenarios. 

A retail company, for example, could use SWOT analysis to identify opportunities in e-commerce and threats from changing consumer behavior or new competitors entering the market. By doing so, the company can strategize on how to leverage online platforms to boost sales and counteract threats by enhancing the customer experience or adopting new technologies.

Subjectivity and bias

The subjective nature of SWOT analysis may lead to biases. It relies heavily on individual perceptions, which can sometimes overlook crucial data or misinterpret information, leading to skewed conclusions. 

For example, a manufacturing company might undervalue the threat of new entrants in the market due to an overconfidence bias among the management. This subjectivity might lead to a lack of preparation for competitive pricing strategies, ultimately affecting the company's market share.

Lack of prioritization

SWOT analysis lays out issues but falls short on prioritizing them. Organizations might struggle to identify which elements deserve immediate attention and resources. 

For instance, a healthcare provider identifying numerous opportunities for expansion into new services may become overwhelmed with the choices. Without a clear way to rank these opportunities, resources could be spread too thinly or given to projects that do not have as much of an impact, leading to less-than-ideal outcomes.

Static analysis

Since SWOT analysis captures a snapshot at a particular moment, it may miss the evolving nature of challenges and opportunities, possibly leading to outdated strategies. An example could be a traditional retail business that performs a SWOT analysis and decides to focus on expanding physical stores, overlooking the growing trend of e-commerce. As online shopping continues to evolve and gain popularity, the static analysis might lead to investment in areas with diminishing returns while missing out on the booming e-commerce market trend.

SWOT analysis FAQ

What are the five elements of swot analysis.

Traditionally, SWOT stands for its four main elements: strengths, weaknesses, opportunities, and threats. However, a fifth essential element often overlooked is "actionable strategies." Originally developed by Albert Humphrey, SWOT is more than just a list—it's a planning tool designed to generate actionable strategies for making informed business decisions. This fifth element serves to tie the other four together, enabling departments like human resources and marketing to turn analysis into actionable plans.

What should a SWOT analysis include?

A comprehensive SWOT analysis should focus on the internal and external factors that affect your organization. Internally, consider your strong brand and product line as your strengths, and maybe your supply chain weaknesses. Externally, you'll want to look at market share, partnerships, and new technologies that could either pose opportunities or threats. You should also account for demographics, as it helps in market targeting and segmentation.

How do you write a good SWOT analysis?

Writing an effective SWOT analysis begins with research. Start by identifying your strengths, like a strong brand, and your weaknesses, like a small human resources department. Following that, look outward to find opportunities, possibly in technological advancement, and threats, like fluctuations in market share. Many businesses find it helpful to use a free SWOT analysis template to structure this information. A good SWOT analysis doesn't just list these elements; it integrates them to provide a clear roadmap for making business decisions.

What are four examples of threats in SWOT analysis?

New technologies: Rapid technological advancement can make your product or service obsolete.

Supply chain disruptions: Whether due to natural disasters or geopolitical tensions, an unstable supply chain can seriously jeopardize your operations.

Emerging competitors: New players entering the market can erode your market share and offer alternative solutions to your customer base.

Regulatory changes: New laws or regulations can add costs and complexity to your business, affecting your competitiveness.

How do you use a SWOT analysis?

Once you've completed a SWOT analysis, use the results as a decision-making aid. It can help prioritize actions, develop strategic plans that play to your strengths, improve weaknesses, seize opportunities, and counteract threats. It’s a useful tool for setting objectives and creating a roadmap for achieving them.

Plan for growth with a SWOT analysis

A SWOT analysis can be an effective technique for identifying key strengths, weaknesses, opportunities, and threats. Understanding where you are now can be the most impactful way to determine where you want to go next. 

Don’t forget, a bit of creativity and collaboration can go a long way. Encourage your team to think outside of the box with 100+ team motivational quotes .

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