corporate problem solving meaning

• Coaching Skills Training
• Coaching TIPS²™
• Continuous Improvement Coaching
• Courageous Conversations Workshop
• Executive Coaching Program
• Feedback 360
• Safety Coaching
• Sales Coaching Training Program
• Free Consultation
• Applied Strategic Thinking®
• Strategic Leadership Course
• Strategic Teaming
• Strategy Development Processes and Services
• Communication Training for Managers
• Conflict and Collaboration
• Confronting Racism Workshop
• Delegation & Accountability
• Diversity, Equity, and Inclusion Workshop
• Flexible Leadership
• Leading Change
• Leading Groups to Solutions
• Leading Innovation
• Mid-Level Management Training
• Qualities of Leadership
• Bottom Line Leadership
• Customized Leadership Development Programs
• Leadership Development Program Design
• Mini-MBA & Operational Finance
• Problem Solving and Decision Making in the Workplace
• Transition to Leadership
• Virtual Leadership
• High-Performance Teamwork
• Leadership Team Alignment Workshop
• Orienteering
• Corporate Outdoor Training and Team Building
• Retreats for Teams
• Innovation Skills Training
• Personal Impact Workshop
• Supervisor Training Programs
• Customization of CMOE’s Learning Library
• Full Curriculum Development and Design
• Learning & Development Advisory Services
• Bottom Line Leadership Training
• Consulting Services
• Leadership Retreats
• Learning and Development Consulting Services
• Needs Analysis and Organization Assessments
• Transformation & Change Solutions
• Facilitator Training Workshop
• Empathic Leadership
• Supervisor Development Series
• All Courses
• Digital Learning
• Books and Publications
• Assessments and Surveys
• Clients Served
• History and Experience
• Meet the CMOE Team
• Testimonials
• Articles & Tools
• Scenario Templates
• Certified Partners
• Event Resources
• Industry Insights
• Resource Library
• Video Library
• News and Events
• Professional Accreditation and Continuing Education Units
• Surveys & Assessments
• Problem Solving in Business
• 360-Degree Leadership Assessment
• Adaptive Communication
• Adaptive Leadership
• Authentic Leadership Style
• Boundary Spanning Leadership
• Business Change Strategies
• Business-Strategy Principles
• Capacity Building
• Cascading Strategy
• Change Management
• Charismatic Leadership
• Coaching Framework
• Coaching in the Workplace
• Coaching Leadership Style
• Collaborative Coaching
• Competency Assessment
• Conflict Resolution in the Workplace
• Core Competence
• Corporate Strategic Planning
• Crisis Leadership
• Critical Success Factors
• DEI in the Workplace
• Directive Leader
• Empathetic Leadership Definition
• Horizontal Leadership
• Inclusive Leadership
• Innovation Strategy
• Leadership Assessment
• Leadership Competency Framework
• Leadership Model
• Management Succession Planning
• Operational Excellence
• Organizational Alignment
• Participative Leadership Style
• Performance Deficiency Coaching
• Persuasive Leadership Style
• Servant Leadership Style
• Strategic Agility
• Strategic Alignment
• Strategic Audit
• Strategic Framework
• Strategic Initiatives: Examples and Development
• Strategic Management
• Strategic Mindset Competency
• Strategic Objectives
• Strategic Thinking
• Strategy Committee
• Strategy Issues
• Strategy Maps
• Supportive Leadership Style: Definition and Qualities
• Team Building Interventions
• Team Environment
• Team Performance Assessment
• Teamwork Atmosphere
• Total Employee Involvement
• Training Needs Analysis (TNA) Definition
• Transformational Leadership
• Visionary Leadership Style

What Is Problem Solving in Business?

Problem-solving in business is defined as implementing processes that reduce or remove obstacles that are preventing you or others from accomplishing operational and strategic business goals.

In business, a problem is a situation that creates a gap between the desired and actual outcomes. In addition, a true problem typically does not have an immediately obvious resolution.

Business problem-solving works best when it is approached through a consistent system in which individuals:

• Identify and define the problem
• Prioritize the problem based on size, potential impact, and urgency
• Complete a root-cause analysis
• Develop a variety of possible solutions
• Evaluate possible solutions and decide which is most effective
• Plan and implement the solution

Why Is Problem-Solving Important in Business?

Understanding the importance of problem-solving skills in the workplace will help you develop as a leader. Problem-solving skills will help you resolve critical issues and conflicts that you come across. Problem-solving is a valued skill in the workplace because it allows you to:

• Apply a standard problem-solving system to all challenges
• Find the root causes of problems
• Quickly deal with short-term business interruptions
• Form plans to deal with long-term problems and improve the organization
• See challenges as opportunities
• Keep your cool during challenges

How Do You Solve Business Problems Effectively?

There are many different problem-solving strategies, but most can be broken into general steps. Here is a six-step method for business problem solving:

1) Identify the Details of the Problem: Gather enough information to accurately define the problem. This can include data on procedures being used, employee actions, relevant workplace rules, and so on. Write down the specific outcome that is needed, but don’t assume what the solution should be.

• Use the Five Whys: When assessing a problem, a common strategy is to ask “why” five times. First, ask why the problem occurred. Then, take the answer and ask “why” again, and so on. The intention is to help you get down to the root cause of the problem so you can directly target that core issue with your solution.

2) Creatively Brainstorm Solutions:   State every solution you can think of. Write them down. Seek input from those who possess in-depth knowledge of or experience with the problem you’re trying to solve. These insights will provide you with valuable perspectives you can transform into tangible and impactful solutions.

3) Evaluate Solutions and Make a Decision:   Assess the feasibility of each solution. Is the deadline realistic? Are there readily available resources you can leverage to successfully implement the solution? What is the return on investment of each solution? If necessary, come up with alternative solutions or adjust the initial ones you brainstormed in step 2.

4) Make a Decision: Finally, make a firm decision on one solution. This final solution should clearly address the root cause of the problem.

• Perform a SWOT Analysis: You can use a SWOT analysis to help you decide on the best solution. A SWOT analysis involves identifying the strengths, weaknesses, opportunities, and threats linked to a specific decision. With this framework, your team can assess a decision from various angles, thereby gaining a holistic view of it.

5) Take Action:   Write up a detailed plan. This involves developing a comprehensive roadmap that outlines the steps required to implement your solution. The steps should specify milestones, deadlines, roles, and how to obtain the necessary approvals. To ensure accountability, your entire team should have access to this action plan. Each team member should be able to track and share their progress with the group.

6) Gather and Share Feedback: Problem-solving is not a “set it and forget it” process. It’s a dynamic journey that necessitates ongoing attention, deliberation, and refinement to achieve optimal results. Thus, periodic feedback is critical in validating whether the chosen solution creates the desired impact. It allows key stakeholders to check in and make any necessary changes.

What Are Problem-Solving Skills?

Problem-solving skills are specific procedures that can be used to complete one or more of the six general steps of problem-solving (discussed above). Here are five important examples:

Using Emotional Intelligence: You’ll solve problems more calmly when you learn to recognize your own emotional patterns and to empathize with and guide the emotions of others. Avoid knee-jerk responses and making assumptions.

Researching Problems: An effective solution requires an accurate description of the problem. Define simple problems using quick research methods such as asking, “What? Where? When? and How much?.” Difficult problems require more in-depth research, such as data exploration, surveys, and interviews.

Creative Brainstorming: When brainstorming with a group, encourage idea creation by listening attentively to everyone, and recognizing everyone’s unique contributions.

Logical Reasoning: Develop standard logical steps for analyzing possible solutions to problems. Study and apply ideas about logical fallacies, deductive reasoning, and other areas of analytical thought.

Decisiveness: Use an agreed-upon system for choosing a solution, which can include assigning pros and cons to solutions, identifying mandatory results, getting feedback about solutions, choosing the decision-maker(s), and finishing or repeating the process.

How Can You Improve Your Problem-Solving Skills?

Learning how to solve business problems takes time and effort. Though some people appear to have been born with superior problem-solving skills, great problem-solvers usually have taken the time to refine their abilities. You can develop high-level skills for solving problems too, through the following methods:

Ask and Listen: Don’t expect to solve every problem alone. Ask for advice, and listen to it carefully.

Practice Curiosity: Any time you’re involved in solving a problem, practice researching and defining the problem just a little longer than you would naturally.

Break Down Problems: Whenever possible, break large problems into their smallest units. Then, search for solutions to one unit at a time.

Don’t Label Yourself Negatively: Don’t allow a problem to mean something negative about you personally. Separate yourself from it. Look at it objectively and be part of the solution.

Enhance Your Problem-Solving Skills with CMOE

Problem-solving skills in business are not developed overnight. Developing then takes ongoing practice and the right guidance to get right. We encourage you to leverage CMOE’s Problem-Solving and Decision Making in the Workplace workshop to further develop your skills. We’ll help you identify new ways to solve problems methodically so you can create greater impact.

Clients We’ve Worked With

Contact form.

Need More Information? Please fill out the following form and we will be in contact with you with more information.

" * " indicates required fields

As Featured In:

The Better Business Bureau has determined that CMOE meets accreditation standards. These standards verify that CMOE’s product quality and competence enhance customer trust and confidence.

©2024 Center for Management & Organization Effectiveness. All rights reserved.

FREE Webinar:

New Feature - Industry Data & Insights Register Now

0 results have been found for “”

 Return to blog home

10 Step Process for Effective Business Problem Solving

Posted august 3, 2021 by harriet genever.

When you start a small business or launch a startup, the one thing you can count on is the unexpected. No matter how thoroughly you plan, forecast , and test, problems are bound to arise. This is why as an entrepreneur, you need to know how to solve business problems effectively.

What is problem solving in business?

Problem solving in business relates to establishing processes that mitigate or remove obstacles currently preventing you from reaching strategic goals . These are typically complex issues that create a gap between actual results and your desired outcome. They may be present in a single team, operational process, or throughout your entire organization, typically without an immediate or obvious solution. 

To approach problem solving successfully, you need to establish consistent processes that help you evaluate, explore solutions, prioritize execution, and measure success. In many ways, it should be similar to how you review business performance through a monthly plan review . You work through the same documentation, look for gaps, dig deeper to identify the root cause, and hash out options. Without this process, you simply cannot expect to solve problems efficiently or effectively. 

Why problem solving is important for your business

While some would say problem-solving comes naturally, it’s actually a skill you can grow and refine over time. Problem solving skills will help you and your team tackle critical issues and conflicts as they arise. It starts from the top. You as the business owner or CEO needing to display the type of level-headed problem solving that you expect to see from your employees.

Doing so will help you and your staff quickly deal with issues, establish and refine a problem solving process, turn challenges into opportunities, and generally keep a level head. Now, the best business leaders didn’t just find a magic solution to solve their problems, they built processes and leveraged tools to find success. And you can do the same.

By following this 10-step process, you can develop your problem-solving skills and approach any issue that arises with confidence. 

1. Define the problem

When a problem arises, it can be very easy to jump right into creating a solution. However, if you don’t thoroughly examine what led to the problem in the first place, you may create a strategy that doesn’t actually solve it. You may just be treating the symptoms.

For instance, if you realize that your sales from new customers are dropping, your first inclination might be to rush into putting together a marketing plan to increase exposure. But what if decreasing sales are just a symptom of the real problem? 

When you define the problem, you want to be sure you’re not missing the forest for the trees. If you have a large issue on your hands, you’ll want to look at it from several different angles:

Competition 

Is a competitor’s promotion or pricing affecting your sales? Are there new entrants in your market? How are they marketing their product or business?

Business model 

Is your business model sustainable? Is it realistic for how fast you want to grow? Should you explore different pricing or cost strategies?

Market factors

How are world events and the nation’s economy affecting your customers and your sales?

Are there any issues affecting your team? Do they have the tools and resources they need to succeed? 

Goal alignment 

Is everyone on your team working toward the same goal ? Have you communicated your short-term and long-term business goals clearly and often?

There are a lot of ways to approach the issue when you’re facing a serious business problem. The key is to make sure you’re getting a full snapshot of what’s going on so you don’t waste money and resources on band-aid solutions. 

Going back to our example, by looking at every facet of your business, you may discover that you’re spending more on advertising than your competitors already. And instead, there’s a communication gap within your team that’s leading to the mishandling of new customers and therefore lost sales. 

If you jumped into fixing the exposure of your brand, you would have been dumping more money into an area you’re already winning. Potentially leading to greater losses as more and more new customers are dropped due to poor internal communication.

This is why it’s so vital that you explore your blind spots and track the problem to its source.

2. Conduct a SWOT analysis

All good businesses solve some sort of problem for customers. What if your particular business problem is actually an opportunity, or even a strength if considered from a different angle? This is when you’d want to conduct a SWOT analysis to determine if that is in fact the case.

SWOT is a great tool for strategic planning and bringing multiple viewpoints to the table when you’re looking at investing resources to solve a problem. This may even be incorporated in your attempts to identify the source of your problem, as it can quickly outline specific strengths and weaknesses of your business. And then by identifying any potential opportunities or threats, you can utilize your findings to kickstart a solution. 

3. Identify multiple solutions with design thinking

As you approach solving your problem, you may want to consider using the design thinking approach . It’s often used by organizations looking to solve big, community-based problems. One of its strengths is that it requires involving a wide range of people in the problem-solving process. Which leads to multiple perspectives and solutions arising.

This approach—applying your company’s skills and expertise to a problem in the market—is the basis for design thinking.

It’s not about finding the most complex problems to solve, but about finding common needs within the organization and in the real world and coming up with solutions that fit those needs. When you’re solving business problems, this applies in the sense that you’re looking for solutions that address underlying issues—you’re looking at the big picture.

4. Conduct market research and customer outreach

Market research and customer outreach aren’t the sorts of things small business owners and startups can do once and then cross off the list. When you’re facing a roadblock, think back to the last time you did some solid market research or took a deep dive into understanding the competitive landscape .

Market research and the insights you get from customer outreach aren’t a silver bullet. Many companies struggle with what they should do with conflicting data points. But it’s worth struggling through and gathering information that can help you better understand your target market . Plus, your customers can be one of the best sources of criticism. It’s actually a gift if you can avoid taking the negatives personally .

The worst thing you can do when you’re facing challenges is isolating yourself from your customers and ignore your competition. So survey your customers. Put together a competitive matrix . 

5. Seek input from your team and your mentors

Don’t do your SWOT analysis or design thinking work by yourself. The freedom to express concerns, opinions, and ideas will allow people in an organization to speak up. Their feedback is going to help you move faster and more efficiently. If you have a team in place, bring them into the discussion. You hired them to be experts in their area; use their expertise to navigate and dig deeper into underlying causes of problems and potential solutions.

If you’re running your business solo, at least bring in a trusted mentor. SCORE offers a free business mentorship program if you don’t already have one. It can also be helpful to connect with a strategic business advisor , especially if business financials aren’t your strongest suit.

Quoting Stephen Covey, who said that “strength lies in differences, not in similarities,” speaking to the importance of diversity when it comes to problem-solving in business. The more diverse a team is , the more often innovative solutions to the problems faced by the organization appear.

In fact, it has been found that groups that show greater diversity were better at solving problems than groups made up specifically of highly skilled problem solvers. So whoever you bring in to help you problem-solve, resist the urge to surround yourself with people who already agree with you about everything.

6. Apply lean planning for nimble execution

So you do your SWOT analysis and your design thinking exercise. You come up with a set of strong, data-driven ideas. But implementing them requires you to adjust your budget, or your strategic plan, or even your understanding of your target market.

Are you willing to change course? Can you quickly make adjustments? Well in order to grow, you can’t be afraid to be nimble . 

By adopting the lean business planning method —the process of revising your business strategy regularly—you’ll be able to shift your strategies more fluidly. You don’t want to change course every week, and you don’t want to fall victim to shiny object thinking. But you can strike a balance that allows you to reduce your business’s risk while keeping your team heading in the right direction.

Along the way, you’ll make strategic decisions that don’t pan out the way you hoped. The best thing you can do is test your ideas and iterate often so you’re not wasting money and resources on things that don’t work. That’s Lean Planning .

7. Model different financial scenarios

When you’re trying to solve a serious business problem, one of the best things you can do is build a few different financial forecasts so you can model different scenarios. You might find that the idea that seemed the strongest will take longer than you thought to reverse a negative financial trend. At the very least you’ll have better insight into the financial impact of moving in a different direction.

The real benefit here is looking at different tactical approaches to the same problem. Maybe instead of increasing sales right now, you’re better off in the long run if you adopt a strategy to reduce churn and retain your best customers. You won’t know unless you model a few different scenarios. You can do this by using spreadsheets, and a tool like LivePlan can make it easier and quicker.

8. Watch your cash flow

While you’re working to solve a challenging business problem, pay particular attention to your cash flow and your cash flow forecast . Understanding when your company is at risk of running out of cash in the bank can help you be proactive. It’s a lot easier to get a line of credit while your financials still look good and healthy, than when you’re one pay period away from ruin.

If you’re dealing with a serious issue, it’s easy to start to get tunnel vision. You’ll benefit from maintaining a little breathing room for your business as you figure out what to do next.

9. Use a decision-making framework

Once you’ve gathered all the information you need, generated a number of ideas, and done some financial modeling, you might still feel uncertain. It’s natural—you’re not a fortune-teller. You’re trying to make the best decision you can with the information you have.

This article offers a really useful approach to making decisions. It starts with putting your options into a matrix like this one:

Use this sort of framework to put everything you’ve learned out on the table. If you’re working with a bigger team, this sort of exercise can also bring the rest of your team to the table so they feel some ownership over the outcome.

10. Identify key metrics to track

How will you know your problem is solved? And not just the symptom—how will you know when you’ve addressed the underlying issues? Before you dive into enacting the solution, make sure you know what success looks like.

Decide on a few key performance indicators . Take a baseline measurement, and set a goal and a timeframe. You’re essentially translating your solution into a plan, complete with milestones and goals. Without these, you’ve simply made a blind decision with no way to track success. You need those goals and milestones to make your plan real .

Problem solving skills to improve

As you and your team work through this process, it’s worth keeping in mind specific problem solving skills you should continue to develop. Bolstering your ability, as well as your team, to solve problems effectively will only make this process more useful and efficient. Here are a few key skills to work on.

Emotional intelligence

It can be very easy to make quick, emotional responses in a time of crisis or when discussing something you’re passionate about. To avoid making assumptions and letting your emotions get the best of you, you need to focus on empathizing with others. This involves understanding your own emotional state, reactions and listening carefully to the responses of your team. The more you’re able to listen carefully, the better you’ll be at asking for and taking advice that actually leads to effective problem solving.

Jumping right into a solution can immediately kill the possibility of solving your problem. Just like when you start a business , you need to do the research into what the problem you’re solving actually is. Luckily, you can embed research into your problem solving by holding active reviews of financial performance and team processes. Simply asking “What? Where? When? How?” can lead to more in-depth explorations of potential issues.

The best thing you can do to grow your research abilities is to encourage and practice curiosity. Look at every problem as an opportunity. Something that may be trouble now, but is worth exploring and finding the right solution. You’ll pick up best practices, useful tools and fine-tune your own research process the more you’re willing to explore.

Brainstorming

Creatively brainstorming with your team is somewhat of an art form. There needs to be a willingness to throw everything at the wall and act as if nothing is a bad idea at the start. This style of collaboration encourages participation without fear of rejection. It also helps outline potential solutions outside of your current scope, that you can refine and turn into realistic action.

Work on breaking down problems and try to give everyone in the room a voice. The more input you allow, the greater potential you have for finding the best solution.

Decisiveness

One thing that can drag out acting upon a potential solution, is being indecisive. If you aren’t willing to state when the final cutoff for deliberation is, you simply won’t take steps quickly enough. This is when having a process for problem solving comes in handy, as it purposefully outlines when you should start taking action.

Work on choosing decision-makers, identify necessary results and be prepared to analyze and adjust if necessary. You don’t have to get it right every time, but taking action at the right time, even if it fails, is almost more vital than never taking a step.  

Stemming off failure, you need to learn to be resilient. Again, no one gets it perfect every single time. There are so many factors in play to consider and sometimes even the most well-thought-out solution doesn’t stick. Instead of being down on yourself or your team, look to separate yourself from the problem and continue to think of it as a puzzle worth solving. Every failure is a learning opportunity and it only helps you further refine and eliminate issues in your strategy.

Problem solving is a process

The key to effective problem-solving in business is the ability to adapt. You can waste a lot of resources on staying the wrong course for too long. So make a plan to reduce your risk now. Think about what you’d do if you were faced with a problem large enough to sink your business. Be as proactive as you can.

Editor’s note: This article was originally published in 2016. It was updated in 2021.

Like this post? Share with a friend!

Harriet Genever

Posted in management, join over 1 million entrepreneurs who found success with liveplan, like this content sign up to receive more.

Subscribe for tips and guidance to help you grow a better, smarter business.

You're all set!

Exciting business insights and growth strategies will be coming your way each month.

We care about your privacy. See our privacy policy .

Effective Problem-Solving Techniques in Business

Problem solving is an increasingly important soft skill for those in business. The Future of Jobs Survey by the World Economic Forum drives this point home. According to this report, complex problem solving is identified as one of the top 15 skills that will be sought by employers in 2025, along with other soft skills such as analytical thinking, creativity and leadership.

Dr. Amy David , clinical associate professor of management for supply chain and operations management, spoke about business problem-solving methods and how the Purdue University Online MBA program prepares students to be business decision-makers.

Why Are Problem-Solving Skills Essential in Leadership Roles?

Every business will face challenges at some point. Those that are successful will have people in place who can identify and solve problems before the damage is done.

“The business world is constantly changing, and companies need to be able to adapt well in order to produce good results and meet the needs of their customers,” David says. “They also need to keep in mind the triple bottom line of ‘people, profit and planet.’ And these priorities are constantly evolving.”

To that end, David says people in management or leadership need to be able to handle new situations, something that may be outside the scope of their everyday work.

“The name of the game these days is change—and the speed of change—and that means solving new problems on a daily basis,” she says.

The pace of information and technology has also empowered the customer in a new way that provides challenges—or opportunities—for businesses to respond.

“Our customers have a lot more information and a lot more power,” she says. “If you think about somebody having an unhappy experience and tweeting about it, that’s very different from maybe 15 years ago. Back then, if you had a bad experience with a product, you might grumble about it to one or two people.”

David says that this reality changes how quickly organizations need to react and respond to their customers. And taking prompt and decisive action requires solid problem-solving skills.

What Are Some of the Most Effective Problem-Solving Methods?

David says there are a few things to consider when encountering a challenge in business.

“When faced with a problem, are we talking about something that is broad and affects a lot of people? Or is it something that affects a select few? Depending on the issue and situation, you’ll need to use different types of problem-solving strategies,” she says.

Using Techniques

There are a number of techniques that businesses use to problem solve. These can include:

• Five Whys : This approach is helpful when the problem at hand is clear but the underlying causes are less so. By asking “Why?” five times, the final answer should get at the potential root of the problem and perhaps yield a solution.
• Gap Analysis : Companies use gap analyses to compare current performance with expected or desired performance, which will help a company determine how to use its resources differently or adjust expectations.
• Gemba Walk : The name, which is derived from a Japanese word meaning “the real place,” refers to a commonly used technique that allows managers to see what works (and what doesn’t) from the ground up. This is an opportunity for managers to focus on the fundamental elements of the process, identify where the value stream is and determine areas that could use improvement.
• Porter’s Five Forces : Developed by Harvard Business School professor Michael E. Porter, applying the Five Forces is a way for companies to identify competitors for their business or services, and determine how the organization can adjust to stay ahead of the game.
• Six Thinking Hats : In his book of the same name, Dr. Edward de Bono details this method that encourages parallel thinking and attempting to solve a problem by trying on different “thinking hats.” Each color hat signifies a different approach that can be utilized in the problem-solving process, ranging from logic to feelings to creativity and beyond. This method allows organizations to view problems from different angles and perspectives.
• SWOT Analysis : This common strategic planning and management tool helps businesses identify strengths, weaknesses, opportunities and threats (SWOT).

“We have a lot of these different tools,” David says. “Which one to use when is going to be dependent on the problem itself, the level of the stakeholders, the number of different stakeholder groups and so on.”

Each of the techniques outlined above uses the same core steps of problem solving:

• Identify and define the problem
• Consider possible solutions
• Evaluate options
• Choose the best solution
• Implement the solution
• Evaluate the outcome

Data drives a lot of daily decisions in business and beyond. Analytics have also been deployed to problem solve.

“We have specific classes around storytelling with data and how you convince your audience to understand what the data is,” David says. “Your audience has to trust the data, and only then can you use it for real decision-making.”

Data can be a powerful tool for identifying larger trends and making informed decisions when it’s clearly understood and communicated. It’s also vital for performance monitoring and optimization.

How Is Problem Solving Prioritized in Purdue’s Online MBA?

The courses in the Purdue Online MBA program teach problem-solving methods to students, keeping them up to date with the latest techniques and allowing them to apply their knowledge to business-related scenarios.

“I can give you a model or a tool, but most of the time, a real-world situation is going to be a lot messier and more valuable than what we’ve seen in a textbook,” David says. “Asking students to take what they know and apply it to a case where there’s not one single correct answer is a big part of the learning experience.”

Make Your Own Decision to Further Your Career

An online MBA from Purdue University can help advance your career by teaching you problem-solving skills, decision-making strategies and more. Reach out today to learn more about earning an online MBA with Purdue University .

More Blog Posts

Purdue + Microsoft = Data Powerhouse

August 17, 2024

Linking the Chain

July 29, 2024

Failing Forward

July 28, 2024

What does commercialization mean?

July 27, 2024

Living Big: Kylie Broton’s MBA Adventure

July 15, 2024

From IT Professional to Business Analytics Leader

July 12, 2024

Which degree should you choose? How the MBT stacks up against the MBA

Triple Master

May 28, 2024

Becoming Irreplacable

May 27, 2024

MSF students explore M&A in inaugural case competition

May 14, 2024

Is the GMAT required for a master’s in finance?

May 6, 2024

Establishing Contact: Marketing Students Network with Chicago Professionals

May 3, 2024

Up for the Challenge

April 25, 2024

AI in the Classroom: Balancing Automation with Student-Centric Learning

The State of Supply Chain Sustainability

April 17, 2024

Find Your Right Fit

Making the Connection

April 16, 2024

Unlocking Opportunities: Future Leaders network at EDGE Conference for supply chain management

April 14, 2024

The Pursuit of Growth

April 1, 2024

Hacking for Good

March 28, 2024

What Is Collective Genius? How Collaboration Drives Innovation

March 25, 2024

Thriving in the Virtual Classroom

March 24, 2024

Doing Good with Data

February 29, 2024

Trading Insights: Finance student lessons from a NYC networking trip

February 20, 2024

Bridging the gap between business and psychology

January 26, 2024

You've been accepted!

January 12, 2024

What Is Operations Management?

January 3, 2024

What Is Data Mining?

Storytelling With Data: Why Data Visualization Is Important

January 1, 2024

What Can You Do With an MBA With a Specialization in Leadership, Negotiation and Change Management?

December 20, 2023

Paving Your Path

December 15, 2023

Supply Chain Risks and Mitigation Strategies

December 12, 2023

Earning a Graduate Degree Without Drowning in Debt

December 8, 2023

How the Purdue Online MBA Program Works

December 4, 2023

From Newbie to Networker

December 1, 2023

A Step Towards Crafting Success

November 28, 2023

Achieving Success

Future of HR Talent Competition 2022

The Edge to Success

Improving Diversity for an Industry Giant

November 21, 2023

Leveling Up

November 20, 2023

5 Reasons Entrepreneurs Should Consider an MBA for Success

November 17, 2023

The Right Fit

3 Steps to Choosing the Right Specialization for Your Online MBA

November 10, 2023

Solving Human Challenges

November 9, 2023

Experiential Learning: Exploring Learning Through Experience

November 3, 2023

3 Advantages of Earning an MBA Online

September 28, 2023

If you would like to receive more information about pursuing a business master’s at the Mitchell E. Daniels, Jr. School of Business, please fill out the form and a program specialist will be in touch!

Connect With Us

What is problem solving and why is it important

By Wayne Stottler , Kepner-Tregoe

• Problem Solving & Decision Making Over time, developing and refining problem solving skills provides the ability to solve increasingly complex problems Learn More

For over 60 years, Kepner-Tregoe has been helping companies across industries and geographies to develop and mature their problem-solving capabilities through KT’s industry leading approach to training and the implementation of best practice processes. Considering that problem solving is a part of almost every person’s daily life (both at home and in the workplace), it is surprising how often we are asked to explain what problem solving is and why it is important.

Problem solving is at the core of human evolution. It is the methods we use to understand what is happening in our environment, identify things we want to change and then figure out the things that need to be done to create the desired outcome. Problem solving is the source of all new inventions, social and cultural evolution, and the basis for market based economies. It is the basis for continuous improvement, communication and learning.

If this problem-solving thing is so important to daily life, what is it?

Problem-solving is the process of observing what is going on in your environment; identifying things that could be changed or improved; diagnosing why the current state is the way it is and the factors and forces that influence it; developing approaches and alternatives to influence change; making decisions about which alternative to select; taking action to implement the changes; and observing impact of those actions in the environment.

Each step in the problem-solving process employs skills and methods that contribute to the overall effectiveness of influencing change and determine the level of problem complexity that can be addressed. Humans learn how to solve simple problems from a very early age (learning to eat, make coordinated movements and communicate) – and as a person goes through life problem-solving skills are refined, matured and become more sophisticated (enabling them to solve more difficult problems).

Problem-solving is important both to individuals and organizations because it enables us to exert control over our environment.

Fixing things that are broken

Some things wear out and break over time, others are flawed from day-1. Personal and business environments are full of things, activities, interactions and processes that are broken or not operating in the way they are desired to work. Problem-solving gives us a mechanism for identifying these things, figuring out why they are broken and determining a course of action to fix them.

Addressing risk

Humans have learned to identify trends and developed an awareness of cause-and-effect relationships in their environment. These skills not only enable us to fix things when they break but also anticipate what may happen in the future (based on past-experience and current events). Problem-solving can be applied to the anticipated future events and used to enable action in the present to influence the likelihood of the event occurring and/or alter the impact if the event does occur.

Improving performance

Individuals and organizations do not exist in isolation in the environment. There is a complex and ever-changing web of relationships that exist and as a result, the actions of one person will often have either a direct impact on others or an indirect impact by changing the environment dynamics. These interdependencies enable humans to work together to solve more complex problems but they also create a force that requires everyone to continuously improve performance to adapt to improvements by others. Problem-solving helps us understand relationships and implement the changes and improvements needed to compete and survive in a continually changing environment.

Seizing opportunity

Problem solving isn’t just about responding to (and fixing) the environment that exists today. It is also about innovating, creating new things and changing the environment to be more desirable. Problem-solving enables us to identify and exploit opportunities in the environment and exert (some level of) control over the future.

Problem solving skills and the problem-solving process are a critical part of daily life both as individuals and organizations. Developing and refining these skills through training, practice and learning can provide the ability to solve problems more effectively and over time address problems with a greater degree of complexity and difficulty. View KT’s Problem Solving workshop known to be the gold standard for over 60 years.

We are experts in:

For inquiries, details, or a proposal!

Subscribe to the KT Newsletter

The Power of Defining the Problem

by Dwayne Spradlin

Well-defined problems lead to breakthrough solutions. When developing new products, processes, or even businesses, most companies aren’t sufficiently rigorous in defining the problems they’re attempting to solve and articulating why those issues are important. Without that rigor, organizations miss opportunities, waste resources, and end up pursuing innovation initiatives that aren’t aligned with their strategies. How many times have you seen a project go down one path only to realize in hindsight that it should have gone down another? How many times have you seen an innovation program deliver a seemingly breakthrough result only to find that it can’t be implemented or it addresses the wrong problem? Many organizations need to become better at asking the right questions so that they tackle the right problems.

Partner Center

What Are Problem-Solving Skills? Definition and Examples

• Share on Twitter Share on Twitter
• Share on Facebook Share on Facebook
• Share on LinkedIn Share on LinkedIn

Forage puts students first. Our blog articles are written independently by our editorial team. They have not been paid for or sponsored by our partners. See our full  editorial guidelines .

Why do employers hire employees? To help them solve problems. Whether you’re a financial analyst deciding where to invest your firm’s money, or a marketer trying to figure out which channel to direct your efforts, companies hire people to help them find solutions. Problem-solving is an essential and marketable soft skill in the workplace. 

So, how can you improve your problem-solving and show employers you have this valuable skill? In this guide, we’ll cover:

Problem-Solving Skills Definition

Why are problem-solving skills important, problem-solving skills examples, how to include problem-solving skills in a job application, how to improve problem-solving skills, problem-solving: the bottom line.

Problem-solving skills are the ability to identify problems, brainstorm and analyze answers, and implement the best solutions. An employee with good problem-solving skills is both a self-starter and a collaborative teammate; they are proactive in understanding the root of a problem and work with others to consider a wide range of solutions before deciding how to move forward. 

Examples of using problem-solving skills in the workplace include:

• Researching patterns to understand why revenue decreased last quarter
• Experimenting with a new marketing channel to increase website sign-ups
• Brainstorming content types to share with potential customers
• Testing calls to action to see which ones drive the most product sales
• Implementing a new workflow to automate a team process and increase productivity

Problem-solving skills are the most sought-after soft skill of 2022. In fact, 86% of employers look for problem-solving skills on student resumes, according to the National Association of Colleges and Employers Job Outlook 2022 survey . 

It’s unsurprising why employers are looking for this skill: companies will always need people to help them find solutions to their problems. Someone proactive and successful at problem-solving is valuable to any team.

“Employers are looking for employees who can make decisions independently, especially with the prevalence of remote/hybrid work and the need to communicate asynchronously,” Eric Mochnacz, senior HR consultant at Red Clover, says. “Employers want to see individuals who can make well-informed decisions that mitigate risk, and they can do so without suffering from analysis paralysis.”

Showcase new skills

Build the confidence and practical skills that employers are looking for with Forage’s free job simulations.

Problem-solving includes three main parts: identifying the problem, analyzing possible solutions, and deciding on the best course of action.

>>MORE: Discover the right career for you based on your skills with a career aptitude test .

Research is the first step of problem-solving because it helps you understand the context of a problem. Researching a problem enables you to learn why the problem is happening. For example, is revenue down because of a new sales tactic? Or because of seasonality? Is there a problem with who the sales team is reaching out to? 

Research broadens your scope to all possible reasons why the problem could be happening. Then once you figure it out, it helps you narrow your scope to start solving it. 

Analysis is the next step of problem-solving. Now that you’ve identified the problem, analytical skills help you look at what potential solutions there might be.

“The goal of analysis isn’t to solve a problem, actually — it’s to better understand it because that’s where the real solution will be found,” Gretchen Skalka, owner of Career Insights Consulting, says. “Looking at a problem through the lens of impartiality is the only way to get a true understanding of it from all angles.”

Decision-Making

Once you’ve figured out where the problem is coming from and what solutions are, it’s time to decide on the best way to go forth. Decision-making skills help you determine what resources are available, what a feasible action plan entails, and what solution is likely to lead to success.

On a Resume

Employers looking for problem-solving skills might include the word “problem-solving” or other synonyms like “ critical thinking ” or “analytical skills” in the job description.

“I would add ‘buzzwords’ you can find from the job descriptions or LinkedIn endorsements section to filter into your resume to comply with the ATS,” Matthew Warzel, CPRW resume writer, advises. Warzel recommends including these skills on your resume but warns to “leave the soft skills as adjectives in the summary section. That is the only place soft skills should be mentioned.”

On the other hand, you can list hard skills separately in a skills section on your resume .

Forage Resume Writing Masterclass

Learn how to showcase your skills and craft an award-winning resume with this free masterclass from Forage.

Avg. Time: 5 to 6 hours

Skills you’ll build: Resume writing, professional brand, professional summary, narrative, transferable skills, industry keywords, illustrating your impact, standing out

In a Cover Letter or an Interview

Explaining your problem-solving skills in an interview can seem daunting. You’re required to expand on your process — how you identified a problem, analyzed potential solutions, and made a choice. As long as you can explain your approach, it’s okay if that solution didn’t come from a professional work experience.

“Young professionals shortchange themselves by thinking only paid-for solutions matter to employers,” Skalka says. “People at the genesis of their careers don’t have a wealth of professional experience to pull from, but they do have relevant experience to share.”

Aaron Case, career counselor and CPRW at Resume Genius, agrees and encourages early professionals to share this skill. “If you don’t have any relevant work experience yet, you can still highlight your problem-solving skills in your cover letter,” he says. “Just showcase examples of problems you solved while completing your degree, working at internships, or volunteering. You can even pull examples from completely unrelated part-time jobs, as long as you make it clear how your problem-solving ability transfers to your new line of work.”

Learn How to Identify Problems

Problem-solving doesn’t just require finding solutions to problems that are already there. It’s also about being proactive when something isn’t working as you hoped it would. Practice questioning and getting curious about processes and activities in your everyday life. What could you improve? What would you do if you had more resources for this process? If you had fewer? Challenge yourself to challenge the world around you.

Think Digitally

“Employers in the modern workplace value digital problem-solving skills, like being able to find a technology solution to a traditional issue,” Case says. “For example, when I first started working as a marketing writer, my department didn’t have the budget to hire a professional voice actor for marketing video voiceovers. But I found a perfect solution to the problem with an AI voiceover service that cost a fraction of the price of an actor.”

Being comfortable with new technology — even ones you haven’t used before — is a valuable skill in an increasingly hybrid and remote world. Don’t be afraid to research new and innovative technologies to help automate processes or find a more efficient technological solution.

Collaborate

Problem-solving isn’t done in a silo, and it shouldn’t be. Use your collaboration skills to gather multiple perspectives, help eliminate bias, and listen to alternative solutions. Ask others where they think the problem is coming from and what solutions would help them with your workflow. From there, try to compromise on a solution that can benefit everyone.

If we’ve learned anything from the past few years, it’s that the world of work is constantly changing — which means it’s crucial to know how to adapt . Be comfortable narrowing down a solution, then changing your direction when a colleague provides a new piece of information. Challenge yourself to get out of your comfort zone, whether with your personal routine or trying a new system at work.

Put Yourself in the Middle of Tough Moments

Just like adapting requires you to challenge your routine and tradition, good problem-solving requires you to put yourself in challenging situations — especially ones where you don’t have relevant experience or expertise to find a solution. Because you won’t know how to tackle the problem, you’ll learn new problem-solving skills and how to navigate new challenges. Ask your manager or a peer if you can help them work on a complicated problem, and be proactive about asking them questions along the way.

Career Aptitude Test

What careers are right for you based on your skills? Take this quiz to find out. It’s completely free — you’ll just need to sign up to get your results!

Step 1 of 3

Companies always need people to help them find solutions — especially proactive employees who have practical analytical skills and can collaborate to decide the best way to move forward. Whether or not you have experience solving problems in a professional workplace, illustrate your problem-solving skills by describing your research, analysis, and decision-making process — and make it clear that you’re the solution to the employer’s current problems. 

Image Credit: Christina Morillo / Pexels 

Related Posts

6 negotiation skills to level up your work life, how to build conflict resolution skills: case studies and examples, what is github uses and getting started, upskill with forage.

Build career skills recruiters are looking for.

You are using an out-of-date browser. For an optimal browsing experience, we recommend upgrading to the latest version of Internet Explorer , Google Chrome , or Safari .

Asana’s corporate jargon cheat sheet

By Vivek Sri

The philosopher Étienne Bonnot de Condillac observed in 1782 that “every science requires a special language because every science has its own ideas.” Nowhere is that more apparent than the modern workplace. Jargon is everywhere.

Rather than improve understanding however, corporate double-speak can obfuscate and confuse. Worse, it can make you feel unempowered. Jargon is supposed to be shorthand for people “in the know” (like people of a certain profession or social group), but jargon can also act as a Shibboleth ; when you don’t understand what’s being said, it can make you feel like an outsider, or like you’re uninformed.

And let’s face it, jargon is just plain annoying.

Meet the cheat sheet

Since Asana wants to promote clarity around communication at work, we’ve collected the most common phrases heard around our office. The result is this handy reference for teams:

We’re all guilty of using buzzwords and putting this document together taught us how much they can sneak their way into our vocabularies. Hopefully this cheat sheet can help your team communicate more clearly,  going forward . 😉

Feel free to share—or print this out and post it at your home, office, RV, or anywhere else jargon is spoken.

Have you heard any jargon that bothers you, or that you don’t understand? Please tell us in the comments!

More Issues

Special Edition

How technology can be a lever for achieving your company mission

By Zöe Desroches

In this interview, Dr. Andrey Ostrovksy discusses how technology transformed Concerted Care Group into a thriving, impactful business focused on achieving its mission: ending the opioid epidemic in the United States.

Inclusion starts on day one: 10 ways to build an inclusive onboarding experience

By Sonja Gittens-Ottley

There are many ways to build an inclusive onboarding process, from the company level to the team and individual level. Here are a few ways you can make employees feel like they belong from day one.

How to coach teammates: A key responsibility of effective leaders

By Justin Rosenstein & Carly Schwartz

Coaching is key to helping your team accomplish its goals. Asana co-founder Justin Rosenstein shares advice on effectively coaching teammates in 3 areas: problem solving, goal setting, and performance improvement.

• Online Master of Accountancy
• Online Master of Business Administration
• Online MBA with a Concentration in Accounting
• Online MBA with a Concentration in Business Analytics
• Online MBA with a Concentration in Finance
• Online MBA with a Concentration in Healthcare Administration
• Online MBA with a Concentration in International Business
• Online MBA with a Concentration in Management
• Additional Online Programs
• Online Experience
• About TAMU-CC
• Student Services

No application fee for all online programs!

x Welcome to our website! How did you hear about us? Take Survey »

Home » Degrees » Business » MBA » Master of Business Administration » Collaborative Problem-solving in the Workplace

Collaborative Problem-solving in the Workplace

• Published On: May 28, 2024

Solving the complex problems that confront companies operating in today’s fast-paced, global business environment requires a new kind of leadership. CEOs, COOs and other positions high on the corporate ladder carry both great responsibility and authority. However, the most accomplished and nimble of today’s business leaders understand that true accountability and decision-making power is woven into the fabric of their organizations. Being a leader means being a listener , a fact-checker, a motivator and, in some sense, an artist akin to a film director or orchestra conductor.

Advanced business education programs like the online Master of Business Administration (MBA) program from Texas A&M University-Corpus Christi (TAMU-CC) can help professionals gain the complex skill set necessary for successful problem-solving in challenging leadership roles. Professionals can study the nuances of decision analysis , administrative strategy, business analytics, organizational behavior and much more with TAMU-CC’s MBA program.

Underpinning many of these areas of study is the foundational importance of collaboration and its key role in achieving the best possible solutions to complex problems. More and more, business leaders are turning to the principles of what’s known as collaborative problem-solving to address both their immediate and long-term goals. What is collaborative problem-solving? Why does it succeed where other approaches fail? And how are business leaders fostering the practice in their own organizations?

The 9 Stages of Collaborative Problem-solving

The  Collaborative Leaders Network  (CLN) is a nonprofit that began as a small study group consisting of “community members, business leaders, and policymakers.” This group formed with the intent of addressing entrenched economic and social issues facing all Hawaiians. They identified stakeholders from among a diverse array of demographic segments and instituted policies and procedures to collaborate on innovative solutions that can create sustainable, long-lasting change. This study group then assessed their own work and sought “to mine their respective wisdom and capture their collaborative problem-solving practices with the intention of sharing them broadly.”

The CLN since developed a nine-stage process for facilitating collaborative problem-solving .

• Clarify intentions
• Perform a background inquiry
• Develop a process design
• Launch the group
• Analyze the issues
• Generate a range of options and solutions
• Evaluate those options to create the strategy or plan
• Produce documents that define or describe the chosen plan
• Conduct an executive review

The CLN summarizes this process as one in which “group members engage in clarifying the problem, analyzing potential strategies, crafting recommendations, evaluating draft documents, and delivering a report for which there is a high level of consensus and commitment.”

Collaborative problem-solving is therefore cross-functional and reaches across traditional lines of division drawn across organizational charts. As such, collaborative problem-solving draws upon a number of business skills: statistical and decision analysis, managerial accounting, organizational behavior, operations management, administrative strategy and policy, marketing and more.

Managing the Problem-solving Team

Any given solution arrived at by means of collaborative problem-solving techniques is only as good as the group that generates it. And the group is only as strong as the leadership that takes on the task of determining the group’s composition and facilitating its work. Effective group facilitation results from leaders who encourage dialogue, debate and inquiry while advocating for all stakeholders and making sure all voices are heard and valued.

Ensuring strategies and decisions incorporate and synthesize all worthy ideas through the inquiry-based collaborative problem-solving process enables the realization of the “collective wisdom” aspect of the approach. Clearly, this can take a great deal of diplomacy, empathy and emotional intelligence on the part of the facilitator — essential traits for strong leaders.

What Are the Advantages to Adopting a Collaborative Problem-solving Methodology?

• Staff, executive and otherwise, who may not have been included in previous discussions are more likely to express a fresh perspective on the problem at hand.
• Because collaboration entails the sharing of resources, management can focus on issues of resource abundance rather than resource scarcity.
• Attitudes such as “It’s not my job” and “That’s above my paygrade” have no place in a team environment defined by collective ownership of both problems and solutions (including the implementation of those solutions).
• Collaborative problem-solving can help leaders better identify employees with strong potential — as well as employees who may not be suited to the corporation’s culture.
• Success is shared in a collaborative problem-solving environment. This sharing of success promotes a holistic understanding of the business as well as its mission, values and goals at every level of the organization. Employees who feel they possess a personal stake in the company’s overall advancement are more likely to be happy and highly motivated.

Collaborative problem-solving is one of the core components of leadership training TAMU-CC provides via its online MBA. Through studying the benefits of structured collaboration and integrating collaborative processes with other business functions and decision analysis practices, MBA grads can maximize their impact through helping to create solutions to their organizations’ most challenging problems.

Learn more about the  TAMU-CC online MBA program .

Related Articles

Our commitment to content publishing accuracy.

Articles that appear on this website are for information purposes only. The nature of the information in all of the articles is intended to provide accurate and authoritative information in regard to the subject matter covered.

The information contained within this site has been sourced and presented with reasonable care. If there are errors, please contact us by completing the form below.

Timeliness: Note that most articles published on this website remain on the website indefinitely. Only those articles that have been published within the most recent months may be considered timely. We do not remove articles regardless of the date of publication, as many, but not all, of our earlier articles may still have important relevance to some of our visitors. Use appropriate caution in acting on the information of any article.

Report inaccurate article content:

• Email Address *

Request More Information

Submit this form, and a representative will contact you to answer any questions.

• Program of Interest * Program of interest* MBA MBA in Accounting MBA in Business Analytics MBA in Finance MBA in Healthcare Administration MBA in International Business MBA in Management Master of Accountancy
• First Name *
• Last Name *
• How did you hear about us? * How did you hear about us?* Coworker Email Employer Family/Friend Information Session Magazine/Newspaper Online Professional Organization Radio/TV

*All fields required.

• Email This field is for validation purposes and should be left unchanged.

or call 877.588.3295

By submitting this form, I am providing my digital signature agreeing that Texas A&M University-Corpus Christi (TAMU-CC) and its agent, Risepoint, may email me or contact me regarding educational services by telephone and/or text message utilizing automated technology or a pre-recorded message at the telephone number(s) provided above. I understand this consent is not a condition to attend TAMU-CC or to purchase any other goods or services. Privacy Policy . SMS Terms .

Begin Application Process

Start your application today!

to speak to an Enrollment Specialist.

Risepoint maintains this website on behalf of Texas A&M University-Corpus Christi. TAMU-CC maintains responsibility for curriculum, teaching, admissions, tuition, financial aid, accreditation, and all other academic and instruction-related functions and decisions. Learn more about Risepoint .

Call 877.588.3295

877.588.3295

• Social Media
• Direct mail
• Search Engine
• Event/Conference
• This is my first time
• Within the last 30 days
• 1-2 months ago
• 3+ months ago

Request Information

• Program of interest * Program of interest* MBA MBA in Accounting MBA in Business Analytics MBA in Finance MBA in Healthcare Administration MBA in International Business MBA in Management Master of Accountancy
• Name This field is for validation purposes and should be left unchanged.
• Phone This field is for validation purposes and should be left unchanged.

Submit the form below, and a representative will contact you to answer any questions.

• Comments This field is for validation purposes and should be left unchanged.

11 Essential Soft Skills In 2024 (With Examples)

Updated: Apr 28, 2024, 8:35pm

Table of Contents

What are soft skills, 11 essential soft skills that employers value, frequently asked questions (faqs).

In today’s fast-paced world, success in the workplace requires more than just technical expertise and knowledge. As the nature of work continues to evolve, it is important for individuals to possess attributes and abilities that allow them to collaborate with teams and colleagues—otherwise known as soft skills.

From communication and collaboration to adaptability and problem-solving, soft skills are the foundation of effective teamwork and organizational success. In this article, we will explore 11 critical soft skills examples that are essential to workplace success and why they are becoming more important than ever before.

Soft skills—also known as “people skills” or “interpersonal skills”—are a set of personal attributes and abilities that allow individuals to effectively interact with others in a professional setting. At their core, these include the ability to collaborate effectively, manage time and communicate with clarity, among others.

Soft skills are difficult to measure or quantify; however, they are essential for success in a wide range of industries and professions. Whether you are working with colleagues from diverse cultural backgrounds or communicating with customers and clients around the world—the ability to navigate complex interpersonal dynamics and build strong relationships is the key to success.

Featured Partners

ATS, automated workflow approvals, performance management

On BambooHR's Website

Pinpoint ATS

24/7 customer support, easy-to-use interface, fast and flexible workflows, hundreds of integrations

On Pinpoint HQ's Website

ClearCompany

Employee engagement

On ClearCompany's Website

ZipRecruiter

4.3M+ Businesses

Al-driven smart matching, technology, Resume database, 24/7 customer support

On ZipRecruiter's Website

Pitch templates, auto-schedule, AI search & sourcing, 1:1 sourcing expert, 10x candidate response rate

On Wellfound's Website

Here’s a look at the essential soft skills that companies value the most.

1. Communication

Effective communication is essential to build strong relationships with colleagues, clients and stakeholders. Not only does this involve the ability to convey messages in a clear and compelling way, but also the ability to understand the needs of others and respond to feedback. Employers want people who can build professional relationships with colleagues, which is especially important when working with teams.

Communication is often evaluated in the workplace through informal feedback, such as verbal or written comments from colleagues and supervisors. An alternative method is a formal evaluation or assessment. The ability to communicate effectively is often considered a critical component of professional success, and is highly valued by employers in a wide range of industries and professions.

Here are some examples of communication skills:

• Active listening
• Verbal communication
• Nonverbal communication
• Written communication
• Presentation skills

2. Leadership

A good leader has the ability to inspire their team to achieve greatness. They are able to set a clear vision, communicate it effectively and create a culture of accountability and excellence. More importantly, they’re able to inspire and influence team members to achieve shared goals and objectives.

The ability to lead effectively is often considered a critical component of professional success, and is highly valued by employers in a wide range of industries and professions. Because most employees work in teams, leadership is widely recognized as a critical attribute for success in the modern workplace.

Here are some examples of leadership skills:

• Problem-solving
• Coaching and mentoring
• Strategic thinking

3. Teamwork

Teamwork involves the ability to work with others toward a shared goal. It requires communication, collaboration and a shared commitment to work in a group. Individuals who are able to work collaboratively with others are more likely to achieve their professional goals, and to contribute to the success of their organizations.

In a professional setting, good teamwork can help to foster creativity and innovation because it encourages members to share ideas, brainstorm new solutions and collaborate on new initiatives. Working as part of a collaborative team can also enhance job satisfaction and contribute to a positive work environment.

Here are some examples of teamwork skills:

• Conflict resolution
• Accountability
• Collaboration

4. Creativity

Creativity involves the ability to think outside the box and come up with ideas that challenge assumptions. Needless to say, it requires a mindset of curiosity, risk-taking and a willingness to embrace ambiguity and uncertainty.

On another front, creativity is essential for effective problem-solving, meaning it allows individuals to tackle issues from new and different angles. Creative individuals also give organizations a competitive edge by enabling them to develop new products and systems that set them apart from their competition.

Here are some examples of creative skills:

• Brainstorming
• Imagination
• Experimentation

5. Time management

Time management involves the ability to set priorities, organize tasks and allot time across different activities. It requires discipline and a willingness to avoid distractions and low-priority tasks.

Naturally, good time management skills can help individuals avoid the stress and anxiety that can arise from missed deadlines. But more importantly, those who can manage their time effectively are more likely to be seen as reliable and efficient, which allows them to stand out in the workplace.

Here are some examples of time management skills:

• Goal-setting
• Time blocking

6. Adaptability

In today’s rapidly changing business landscape, adaptability is a key soft skill that enables individuals to stay ahead of the curve. An employee with this skill can adjust to changing circumstances, for example, and learn new skills and technologies to remain relevant in the workplace.

Because it’s impossible to avoid unexpected challenges, having adaptable employees allows organizations to bounce back from setbacks much faster. Plus, they can also read situations quickly and adjust their approach to adapt based on the situation.

Here are some examples of adaptability skills:

• Flexibility
• Growth mindset

7. Problem-solving

Problem-solving involves the ability to come up with alternative solutions. This skill is crucial to identifying and addressing complex challenges and opportunities in a variety of contexts.

Problem-solving also makes it easier to make more informed decisions because employees are able to analyze situations and identify the best course of action. As a result, teams are able to get more done in less time.

Here are some examples of problem-solving skills:

• Critical thinking

8. Work ethic

Work ethic demonstrates an individual’s commitment to their job. Having a strong work ethic makes you seem more reliable and dependable, which improves your credibility in the workplace.

There are a lot of ways to demonstrate a strong work ethic. Some examples include arriving on time for meetings, meeting deadlines consistently and being accountable for your actions. If you encounter any challenges in the workplace, you should also maintain a positive demeanor and adapt to changing situations.

Here are some examples of work ethic skills:

• Punctuality
• Reliability
• Professionalism

9. Critical thinking

Critical thinking enables individuals to approach problems and challenges with a strategic and analytical mindset. When making informed decisions, this skill allows you to weigh available options and consider potential outcomes.

A critical thinker can evaluate the strength of arguments and identify flaws in reasoning. They consider multiple perspectives, which makes them more likely to pinpoint the short-term and long-term consequences of their decisions. Additionally, they can also identify the root cause of a problem and generate multiple solutions.

Here are some examples of critical thinking skills:

• Deductive reasoning

10. Conflict management

Not every employee can get along with colleagues every time. As a team tackles obstacles, conflict and opposing ideas could arise every now and then.

Conflict management is the process of addressing disputes or disagreements in a constructive and effective manner. Often, this requires good communication skills, active listening, empathy, negotiation skills and a willingness to collaborate and find common ground.

When managing conflict, it is important to identify common goals and interests for all parties involved. This can help to establish a sense of unity and collaboration, and even lead to better outcomes for everyone involved. Being open to different ideas and perspectives can also make individuals feel motivated to work towards resolution.

Here are some examples of conflict management skills:

• Negotiation

11. Emotional intelligence

Emotional intelligence refers to the ability to recognize and understand one’s own emotions and those of others. In today’s collaborative work environments, this skill enables employees to navigate complex social dynamics and work effectively within teams. It also allows them to provide constructive feedback in a way that is sensitive to the emotions of others, leading to more successful outcomes and stronger relationships.

Effective leaders often have the ability to motivate others and navigate challenging situations with grace and empathy.

• Self-awareness
• Social skills

Bottom Line

In the modern workplace, employers seek candidates who possess technical expertise and soft skills that enable them to thrive in a collaborative work environment. Soft skills such as communication, teamwork, creativity, adaptability, problem-solving, work ethic, critical thinking and conflict management can be developed and honed over time. While it is important for individuals to continue to build their technical expertise, developing soft skills can ultimately set you apart in the workplace and lead to long-term success.

What are the 10 soft skills most desired in the industry?

The 10 most desired soft skills in the industry can vary depending on the specific job or industry. However, they generally include communication skills, teamwork, leadership, time management, adaptability, problem-solving, critical thinking, work ethic, creativity and emotional intelligence.

What is the most important soft skill?

Picking a single most important soft skill is difficult, because its importance can vary depending on the job or industry. However, most organizations consider communication skills as one of the most crucial skills essential for success in most workplaces and industries. Strong communication skills can improve relationships with colleagues, clients and customers, facilitate collaboration and teamwork, and enhance overall job performance.

What are employability soft skills?

Employability soft skills are a set of nontechnical skills that are highly valued by employers. Not only can they contribute to an individual’s workplace success, but they can also be applied in a variety of job roles. Some common examples of soft skills include communication, teamwork, problem-solving, adaptability and initiative.

What are some addition soft skills that can be useful in most workplace situations?

Besides the soft skills already covered, some addition soft skills that can be useful in most or all workplace situations include decision-making, stress management, resourcefulness, being persuasive, being open to criticism and being organized.

• Best Payroll Services
• Best Payroll Apps
• Best Cheap Payroll Services
• Best Free Payroll Software
• Best Restaurant Payroll Software
• Best Payroll Software For Mac
• Best International Payroll Services
• Best Nanny Payroll Service
• Best Payroll Software For Accountants
• Top ADP Competitors
• OnPay Review
• Gusto Review
• Paycor Review
• Justworks Review
• Paychex Flex Review
• ADP Run Review
• Wave Payroll Review
• QuickBooks Payroll Review
• Paycom Review
• Payroll4Free Review
• Workday Review
• Square Payroll Review
• Gusto vs Justworks
• Workday vs. ADP
• Gusto vs. Zenefits
• Payroll Outsourcing Guide
• Payroll Service Cost
• How To Do Payroll
• Payroll Tax Rates
• What Is A Payroll Register
• Payroll Management Guide
• Payroll Compliance Best Practices
• 2024 Payroll Calendar
• What Is Payroll Accounting?
• What Is A Shift Differential?
• What Is A Contingent Worker?
• Form 940 Instructions
• How to Calculate Overtime

Next Up In Business

• Best Payroll Services For Small Business
• ADP Run Review: Features, Pricing & More
• Deluxe Review: Features, Pricing & More
• Average PTO In The US & Other PTO Statistics (2024)
• Best POS Systems For Small Business

What Is SNMP? Simple Network Management Protocol Explained

What Is A Single-Member LLC? Definition, Pros And Cons

What Is Penetration Testing? Definition & Best Practices

What Is Network Access Control (NAC)?

What Is Network Segmentation?

How To Start A Business In Louisiana (2024 Guide)

Monique Danao is a highly experienced journalist, editor, and copywriter with an extensive background in B2B SaaS technology. Her work has been published in Forbes Advisor, Decential, Canva, 99Designs, Social Media Today and the South China Morning Post. She has also pursued a Master of Design Research at York University in Toronto, Canada.

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

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

Business Insights

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

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

What Is Design Thinking & Why Is It Important?

• 18 Jan 2022

In an age when innovation is key to business success and growth, you’ve likely come across the term “design thinking.” Perhaps you’ve heard it mentioned by a senior leader as something that needs to be utilized more, or maybe you’ve seen it on a prospective employee's resume.

While design thinking is an ideology based on designers’ workflows for mapping out stages of design, its purpose is to provide all professionals with a standardized innovation process to develop creative solutions to problems—design-related or not.

Why is design thinking needed? Innovation is defined as a product, process, service, or business model featuring two critical characteristics: novel and useful. Yet, there’s no use in creating something new and novel if people won’t use it. Design thinking offers innovation the upgrade it needs to inspire meaningful and impactful solutions.

But what is design thinking, and how does it benefit working professionals?

What Is Design Thinking?

Design thinking is a mindset and approach to problem-solving and innovation anchored around human-centered design . While it can be traced back centuries—and perhaps even longer—it gained traction in the modern business world after Tim Brown, CEO and president of design company IDEO, published an article about it in the Harvard Business Review .

Design thinking is different from other innovation and ideation processes in that it’s solution-based and user-centric rather than problem-based. This means it focuses on the solution to a problem instead of the problem itself.

For example, if a team is struggling with transitioning to remote work, the design thinking methodology encourages them to consider how to increase employee engagement rather than focus on the problem (decreasing productivity).

The essence of design thinking is human-centric and user-specific. It’s about the person behind the problem and solution, and requires asking questions such as “Who will be using this product?” and “How will this solution impact the user?”

The first, and arguably most important, step of design thinking is building empathy with users. By understanding the person affected by a problem, you can find a more impactful solution. On top of empathy, design thinking is centered on observing product interaction, drawing conclusions based on research, and ensuring the user remains the focus of the final implementation.

The Four Phases of Innovation

So, what does design thinking entail? There are many models of design thinking that range from three to seven steps.

In the online course Design Thinking and Innovation , Harvard Business School Dean Srikant Datar leverages a four-phase innovation framework. The phases venture from concrete to abstract thinking and back again as the process loops, reverses, and repeats. This is an important balance because abstract thinking increases the likelihood that an idea will be novel. It’s essential, however, to anchor abstract ideas in concrete thinking to ensure the solution is valid and useful.

Here are the four phases for effective innovation and, by extension, design thinking.

The first phase is about narrowing down the focus of the design thinking process. It involves identifying the problem statement to come up with the best outcome. This is done through observation and taking the time to determine the problem and the roadblocks that prevented a solution in the past.

Various tools and frameworks are available—and often needed—to make concrete observations about users and facts gathered through research. Regardless of which tools are implemented, the key is to observe without assumptions or biased expectations.

Once findings from your observations are collected, the next step is to shape insights by framing those observations. This is where you can venture into the abstract by reframing the problem in the form of a statement or question.

Once the problem statement or question has been solidified—not finalized—the next step is ideation. You can use a tool such as systematic inventive thinking (SIT) in this stage, which is useful for creating an innovative process that can be replicated in the future.

The goal is to ultimately overcome cognitive fixedness and devise new and innovative ideas that solve the problems you identified. Continue to actively avoid assumptions and keep the user at the forefront of your mind during ideation sessions.

The third phase involves developing concepts by critiquing a range of possible solutions. This includes multiple rounds of prototyping, testing, and experimenting to answer critical questions about a concept’s viability.

Remember: This step isn’t about perfection, but rather, experimenting with different ideas and seeing which parts work and which don’t.

4. Implement

The fourth and final phase, implementation, is when the entire process comes together. As an extension of the develop phase, implementation starts with testing, reflecting on results, reiterating, and testing again. This may require going back to a prior phase to iterate and refine until you find a successful solution. Such an approach is recommended because design thinking is often a nonlinear, iterative process.

In this phase, don’t forget to share results with stakeholders and reflect on the innovation management strategies implemented during the design thinking process. Learning from experience is an innovation process and design thinking project all its own.

Check out the video about the design thinking process below, and subscribe to our YouTube channel for more explainer content!

Why Design Thinking Skills Matter

The main value of design thinking is that it offers a defined process for innovation. While trial and error is a good way to test and experiment what works and what doesn’t, it’s often time-consuming, expensive, and ultimately ineffective. On the other hand, following the concrete steps of design thinking is an efficient way to develop new, innovative solutions.

On top of a clear, defined process that enables strategic innovation, design thinking can have immensely positive outcomes for your career—in terms of both advancement and salary.

As of December 2021, the most common occupations requiring design thinking skills were:

• Marketing managers
• Industrial engineers
• Graphic designers
• Software developers
• General and operations managers
• Management analysts
• Personal service managers
• Architectural and engineering managers
• Computer and information systems managers

In addition, jobs that require design thinking statistically have higher salaries. Take a marketing manager position, for example. The median annual salary is $107,900. Marketing manager job postings that require design thinking skills, however, have a median annual salary of $133,900—a 24 percent increase.

Overall, businesses are looking for talent with design thinking skills. As of November 2021, there were 29,648 job postings in the United States advertising design thinking as a necessary skill—a 153 percent increase from November 2020, and a 637 percent increase from November 2017.

As businesses continue to recognize the need for design thinking and innovation, they’ll likely create more demand for employees with those skills.

Learning Design Thinking

Design thinking is an extension of innovation that allows you to design solutions for end users with a single problem statement in mind. It not only imparts valuable skills but can help advance your career.

It’s also a collaborative endeavor that can only be mastered through practice with peers. As Datar says in the introduction to Design Thinking and Innovation : “Just as with learning how to swim, the best way to practice is to jump in and try.”

If you want to learn design thinking, take an active role in your education. Start polls, problem-solving exercises, and debates with peers to get a taste of the process. It’s also important to seek out diverse viewpoints to prepare yourself for the business world.

In addition, if you’re considering adding design thinking to your skill set, think about your goals and why you want to learn about it. What else might you need to be successful?

You might consider developing your communication, innovation, leadership, research, and management skills, as those are often listed alongside design thinking in job postings and professional profiles.

You may also notice skills like agile methodology, user experience, and prototyping in job postings, along with non-design skills, such as product management, strategic planning, and new product development.

Is Design Thinking Right for You?

There are many ways to approach problem-solving and innovation. Design thinking is just one of them. While it’s beneficial to learn how others have approached problems and evaluate if you have the same tools at your disposal, it can be more important to chart your own course to deliver what users and customers truly need.

You can also pursue an online course or workshop that dives deeper into design thinking methodology. This can be a practical path if you want to improve your design thinking skills or require a more collaborative environment.

Are you ready to develop your design thinking skills? Explore our online course Design Thinking and Innovation to discover how to leverage fundamental design thinking principles and innovative problem-solving tools to address business challenges.

About the Author