It is natural to have problems. Human beings and businesses alike have different types of problems. Problems in business start from the inception of business – where to situate the business, what product or service to produce or render, what are the inputs and expected outcomes from the business and so on. To this end, managers are employed to manage every problem that may arise while doing business. So, it is important for business managers to be equipped with requisite skills and knowledge to solve problems. One of those skills is the critical thinking skill which enhances ‘Analysis of Business Problem’. Analysis of business problems is one of the major courses taught to executives at Lagos Business School. Let us see what processes managers undertake to analyse and solve business problems.
First and foremost, business managers identify problems facing their company and put it in context – is the problem peculiar to their firm or is it industry-wide? Thus, managers can ask necessary and relevant questions that can lead to the causes of the problem. Oftentimes, problem statements will state what the problem is, where and when it happened and why is it important for the managers to proffer solution to the problem.
Usually, the objective of analysing a problem is to find a lasting solution to it. It is important for managers to have clarity on the objective because any mistake at this point can lead to a monumental failure of the analysis eventually. The objective of the analysis will help limit the alternatives to consider. With the goal of analysis clearly stated, managers generate alternative solutions and choose the best alternative after analysing them. An integral part of analysing the alternative is choose the best criteria to analyse each alternative based on the criteria. After analysing the alternatives based on the criteria, managers must take a decision.
Again, after managers have decided based on the analysis, they need to create actionable plans to implement the decision. The next exercise is for them to monitor and evaluate the plan. This should include setting a timeline to check the outcome of the decision which will allow managers to gauge the effectiveness of the analysis that had been carried out. Another way to evaluate is to check the current situation sometimes after the plan has been carried out and compare to the initial position to see if there is an improvement or deterioration.
In conclusion, it is safe to say that businesses cannot do without having problems, whether it is a profitability problem, innovation, or sustainability problem, etc. Therefore, managers must always be ready to analyse and solve business problems. Managers should ask critical questions in trying to analyse a business problem, set a goal and develop criteria to analyse different alternatives. They should make a decision and plan on the execution of the decision. All these must be done with the right information. Managers that have the skillset to analyse business problems and proffer correct solutions to them will be asset to their firms.
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