7 Steps To Problem-Solving

The 7 steps to problem-solving is a disciplined and methodical approach to identifying and then addressing the root cause of problems. Instead, a more robust approach involves working through a problem using the hypothesis-driven framework of the scientific method. Each viable hypothesis is tested using a range of specific diagnostics and then recommendations are made.

Aspect	Explanation
Concept Overview	– 7 Steps to Problem-Solving is a systematic approach to addressing complex challenges and making informed decisions. It provides a structured framework for identifying, analyzing, and solving problems in various contexts, including business, engineering, research, and everyday life.
Purpose and Importance	– The primary purpose of the 7 Steps is to guide problem-solving efforts in a logical and organized manner, increasing the likelihood of finding effective solutions. It helps individuals and teams tackle problems methodically, making the process more efficient and reducing the risk of overlooking critical factors.
Key Steps	– 1. Identify the Problem: Begin by clearly defining the problem or challenge. Understand its scope, its impact on stakeholders, and the desired outcome. – 2. Gather Information: Collect data and relevant information to understand the problem’s context and causes. Use various sources and research methods to obtain insights. – 3. Generate Solutions: Explore potential solutions and brainstorm ideas. Encourage creativity and divergent thinking to produce a wide range of options. – 4. Analyze Solutions: Evaluate the pros and cons of each solution. Consider factors such as feasibility, cost, impact, and potential risks. – 5. Select the Best Solution: Choose the solution that aligns best with your problem definition and analysis. Prioritize solutions based on their potential to address the problem effectively. – 6. Implement the Solution: Develop an action plan for implementing the chosen solution. Assign responsibilities, allocate resources, and establish a timeline. – 7. Evaluate the Outcome: After implementation, assess the results. Measure success against predefined criteria and make adjustments if necessary. Document the lessons learned for future reference.
Flexibility and Adaptation	– While the 7 Steps provide a structured approach, they are not strictly linear. Iterative processes and feedback loops can be incorporated, allowing for adjustments at any stage based on new insights or changing circumstances. The framework is adaptable to various problem types and complexities.
Applications	– The 7 Steps to Problem-Solving can be applied to a wide range of challenges, including business process improvement, product development, project management, conflict resolution, and personal decision-making. Its versatility makes it a valuable tool in both professional and personal contexts.
Challenges and Pitfalls	– Challenges in problem-solving may include biases that affect decision-making, insufficient data, and uncertainty about outcomes. Being aware of these challenges and applying critical thinking skills can help avoid pitfalls and improve the quality of problem-solving efforts.
Interpersonal Skills	– Effective problem-solving often involves collaboration and communication with others. Interpersonal skills, such as active listening, conflict resolution, and teamwork, play a crucial role in the success of the 7 Steps, especially when problems involve multiple stakeholders.
Documentation and Learning	– Documenting each step of the problem-solving process is valuable for knowledge transfer and continuous improvement. It allows organizations and individuals to learn from past experiences and apply insights to future challenges.
Technology Integration	– The integration of technology tools and data analytics can enhance problem-solving by providing data-driven insights and automation of certain tasks. These tools can assist in data collection, analysis, and decision support, improving the efficiency of the 7 Steps.
Cultural and Ethical Considerations	– Considerations related to diversity, cultural sensitivity, and ethical implications should be part of the problem-solving process. Ethical decision-making ensures that solutions align with values, respect diverse perspectives, and consider the broader impact on society and stakeholders.

Table of Contents

Understanding the 7 steps to problem-solving

The core argument of this approach is that the most obvious solutions to a problem are often not the best solutions.

Good problem-solving in business is a skill that must be learned. Businesses that are adept at problem-solving take responsibility for their own decisions and have courage and confidence in their convictions. Ultimately, this removes doubt which can impede the growth of businesses and indeed employees alike.

Moving through the 7 steps to problem-solving

Although many versions of the 7-step approach exist, the McKinsey approach is the most widely used in business settings. Here is how decision makers can move through each of the steps systematically.

Step 1 – Define the problem

First, the scope and extent of the problem must be identified. Actions and behaviors of individuals must be the focus – instead of a focus on the individuals themselves. Whatever the case, the problem must be clearly defined and be universally accepted by all relevant parties.

Step 2 – Disaggregate the problem

In the second step, break down the problem (challenge) into smaller parts using logic trees and develop an early hypothesis. Here, economic and scientific principles can be useful in brainstorming potential solutions. Avoid cognitive biases, such as deciding that a previous solution should be used again because it worked last time.

Step 3 – Prioritize issues

Which constituent parts could be key driving factors of the problem? Prioritize each according to those which have the biggest impact on the problem. Eliminate parts that have negligible impact. This step helps businesses use their resources wisely.

Step 4 – Plan the analyses

Before testing each hypothesis, develop a work and process plan for each. Staff should be assigned to analytical tasks with unique output and completion dates. Hypothesis testing should also be reviewed at regular intervals to measure viability and adjust strategies accordingly.

Step 5 – Conduct the analyses

In step five, gather the critical data required to accept or reject each hypothesis. Data analysis methods will vary according to the nature of the project, but each business must understand the reasons for implementing specific methods. In question-based problem solving, the Five Whys or Fishbone method may be used. More complicated problems may require the use of statistical analysis. In any case, this is often the longest and most complex step of the process.

Step 6 – Synthesise the results

Once the results have been determined, they must be synthesized in such a way that they can be tested for validity and logic. In a business context, assess the implications of the findings for a business moving forward. Does it solve the problem?

Step 7 – Communicate

In the final step, the business must present the solutions in such a way that they link back to the original problem statement. When presenting to clients, this is vital. It shows that the business understands the problem and has a solution supported by facts or hard data. Above all, the data should be woven into a convincing story that ends with recommendations for future action.

Key takeaways

7 steps to problem-solving is a methodical approach to problem-solving based on the scientific method.
Although a somewhat rigorous approach, the strategy can be learned by any business willing to devote the time and resources.
Fundamentally, the 7 steps to problem-solving method involves formulating and then testing hypotheses. Through the process of elimination, a business can narrow its focus to the likely root cause of a problem.

Key Highlights

Definition: The 7 Steps to Problem-Solving is a structured methodology rooted in the scientific method. It emphasizes systematic hypothesis testing and data analysis to identify and address the root cause of problems, avoiding surface-level solutions.
Problem-Solving Skill: Effective problem-solving is a learned skill that fosters responsible decision-making, boosts confidence, and supports business growth.
McKinsey Approach:
1. Define the Problem: Clearly outline the problem’s scope and impact, focusing on actions and behaviors rather than individuals.
2. Disaggregate the Problem: Break down the problem into smaller parts using logic trees and form early hypotheses. Avoid biases from past solutions.
3. Prioritize Issues: Identify key driving factors of the problem and prioritize them by impact. Eliminate parts with minimal impact to allocate resources efficiently.
4. Plan the Analyses: Develop work and process plans for hypothesis testing, assigning staff and setting completion dates. Regularly review and adjust strategies.
5. Conduct the Analyses: Gather critical data to accept or reject hypotheses. Use methods like Five Whys, Fishbone diagrams, or statistical analysis.
6. Synthesize the Results: Combine and analyze results to determine their validity and implications for the business. Assess if the problem is solved.
7. Communicate: Present solutions that link back to the original problem statement, supported by facts. Create a compelling story ending with recommendations.
Key Characteristics:
- The 7 Steps to Problem-Solving is based on the scientific method.
- It requires a structured approach to formulating and testing hypotheses.
- Businesses willing to invest time and resources can learn and apply this method effectively.