Challenges are an intrinsic part of the business landscape due to the dynamics and ever-evolving nature of the market environment. Common examples of business challenges include changes in consumer preferences, technological advancements, economic fluctuations, regulatory alterations, global events, and competitive pressures, all of which can pose a threat to achieving business goals. According to Philip Author Fisher, “The successful investor is usually an individual who is inherently interested in business problems.”
Business challenges are not limited to investors but also encompass managers. The ability of managers to solve problems and make decisions rationally has long been assumed to be one of the valuable products of experience on the job. However, a close observation of actual practices has shown that some veteran managers are unsystematic when dealing with problems and decisions, and this can pose a threat to the business.
Ironically, there is no one cure for all businesses because each case has a different context and dilemma and should be approached systematically. As a manager, one key challenge I face daily is bias – making decisions based on a second guess or an assumption. However, the voyage in the course “Analysis of Business Problems” at the Lagos Business School has brought the goliath down to its knees through the introduction of a systematic approach towards solving business problems. Would you like to join me on this ride?
The course began with a case study titled, “Can you analyze this problem?” The subject business into the manufacturing of parts for automobile companies. It had tight delivery timelines but witnessed problems in its production lines: an increased error – burring of quarter panels. As I skimmed through my first read, I quickly reached a conclusion on what the problem was: sabotage!
On my second read, I started looking for data to validate my points. My experience working in the manufacturing sector for years came into play as I was familiar with the antics of factory workers and anti-unionism. I liked one of the characters – ‘Farrell’ because, unlike the others, he valued more standards, and he was anti-union. As I searched for a valid explanation to prove a point, I came across many and was faced with a dilemma. What I did next would interest you.
I was good at debating and defending my stand, so I stuck to my guns. In the workplace, when invited for a brainstorming session, everyone formed an opinion before analyzing problems. There was always a meeting before the actual meeting, especially where the topic of discussion was shared before time. The session with the faculty, Dr. Anibaba, took a different turn.
The possible options were sabotage or operational issues. The available data presented to us defined the symptoms and the causes, and there were lots of explanations navigating us toward identifying the cause. According to the Faculty, Dr Anibaba, “If an issue has multiple explanations until we find ‘the explanation,’ we are dealing with symptoms and not the cause.”
To cut a long story short, she guided us towards the systematic process which includes, inter alia, defining the problem, establishing the goal of the problem, distinguishing between cause and symptoms, analyzing, diagnosing, and the use of the five whys and the decision tree.
