Ultimate guide in decision making: Analysis of business problems

oluyemi Taiwo Written by oluyemi Taiwo · 1 min read >
Consultant presenting business plan strategy for companies and investors

No matter how thorough you plan, forecast and test, problems are bound to arise.

The day-to day work of business professionals requires solving problems and making decisions. Problem solving in business relates to establishing processes that mitigate against obstacles currently preventing the managing director from reaching the strategic goal.


Decision-making is directly associated with selecting one course of action among two or more possible alternatives.

A problem refers to some type of events that requires a response to avoid a negative consequence.

Opportunity is an event or situation where a respond is required to make something desirable happen.

Problem solving is the act of defining a problem, determining the cause of the problem, identifying, prioritizing and selecting alternatives for a solution; and implementing a solution.


To effectively run and manage a successful organization, leadership must guide their employees and develop problem-solving techniques. This can be achieved by following the problem- solving steps.

  • Understand the situation by asking – this is by asking what, why, when, where, who and how.

What is the problem?

Why is the problem?

When did the problem arise? and when does it need to be solved?

Where is the problem occurring?

Who does the problem affects?

How did the problem happen?

Answering these questions can help in identifying what steps will be required to take next in solving.

  • Identify the right problem- it is important to differentiate between the root cause and the symptoms of the problem. Information will be required to accurately define the problem such as data on procedures being used, relevant work place rules and so on.
  • Be guided by objectives: this will determine what the vision is, the goal to be achieved.
  • Generate alternatives and options- evaluate alternatives relative to a standard target.

Evaluate all alternatives without bias.

Evaluate alternatives relative to standard goals.

Evaluate both proven and standard outcomes.

State the selected alternative.

  • Develop a criteria – this is what works best for the situation at hand against the bench mark.
  • Evaluate the alternatives against the criteria- that is a particular alternative that will solve the problem without causing constraint and other anticipated problem.

The alternative will fit into the organizational goal.

  • Take a decision.
  • Develop an action plan to implement the decision. Involving others in implementing decisions is an effective way to gain by-in and support and minimize resistance to decision taken.
  • Feedback channels should follow implementation, this allows for continuous monitoring and testing of actual event as against expectation.

              Why is problem solving important?

  • It helps to tackle critical business issues.
  • The company and staff are better in decision making.
  • It helps in developing leaders.

 Problem solving skills allows personnel to do the following:

  • Application of standard problem-solving systems to all challenges.
  • Finding the root causes of problems.
  • Form plans to deal with short and long-term projects and improve the organization.
  • See challenges as opportunities.
  • the root causes of problems


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