How a business copes with and solves problems can have a dramatic effect on whether it is successful or fails. Proper planning prevents poor performance and prevents further problems occurring.
Problem solving requires several steps which can be defined as:
SWOT analysis is a method of taking four elements of an organisation and utilising it as a planning method for change within that organisation or new venture. The four elements of SWOT are strengths, weaknesses, opportunities and threats:
SWOT analysis can be used to shape organisational strategy from the ground-up by helping to set important objectives and matching those objectives to opportunities and focusing on a more aggressive strategy. In contrast, weaknesses identified within the organisation can be defended (or completely avoided) by adapting the strategy to suit. For example, outdated technology may expose the company to cyber-attacks and this can be defended by upgrading the technology or replacing it completely.
PESTLE analysis is a framework for an organisation to track the market that it operates in and is popular in strategic analysis and market research. It focuses on political, economic, social, technological, legal and environmental factors.
PESTLE is often used alongside SWOT analysis but concentrates mainly on external factors which may affect the businesses current and future direction. PESTLE is an adaptation of PEST, and generally accepted as the preferred version of this framework within the United Kingdom.
According to the website PSETLEanalysis.com, there are certain questions that one needs to ask while conducting this analysis, which give them an idea of what things to keep in mind:[
When assessed in real life, for example for an asbestos removal company, the results may be as follows:
This is not an in-depth use of PESTLE, but it does serve as an example of how it can be used to identify factors effecting the organisation.
Root cause analysis (RCA) is a modern approach to problem solving, which places priorty on finding a solution to a problem without proportioning blame. RCA encourages debate to find the best solution, rather than spending time trying to find a solution.
RCA encourages a culture that believes searching for something or someone to blame can waste time and resources, whilst having little no change on the original cause of the problem. This is because problems are rarely as simple as they may seem and are often caused by multiple factors (a casual relationship) converging to cause one main problem.
RCA encourages managers to look for issues that are within their control, to help prevent reoccurrence in the future and avoiding additional problems to occur.
5-whys analysis is a relatively modern problem-solving technique which keeps asking ‘why’ the problem has occurred until it is solved. It is particularly useful for problem which never seem to be solved.
For example, if I introduce a new pricing system but my team aren’t using it, I need to ask why. I might be told that they don’t like it because it’s hard to understand. If I ask why, they might say that the text on the screen looks messy and it’s difficult to follow. If I ask why again, I might be told that it’s because the font used by the designer is hard to read. By having the font changed to an easier to read font, I find that my team is much happier with the new system and begin to use it. In this case, it took me 3 attempts to find the cause of the problem and how to solve it. This is a basic example, but the principle is simple: keep asking why until you find the cause of the problem. Founder of the 5-why system, Sakicha Toyoda, believed that it is unlikely that you will ever need to ask ‘why’ more than 5 times to find a possible remedy and once the possible remedy is found, fix it to prevent it from reoccurring.
Ultimately, problem solving is vital in any business and
depending on the type of industry may be something which needs to be carried
out on a daily basis. For other organisation, daily problems may not occur but
problem solving can still help with ongoing improvement and future decision
making.
[1] http://pestleanalysis.com/what-is-pestle-analysis/
Businessman, camping enthusiast, Formula One fan and Real Ale drinker.
It's not uncommon for owners of Volkswagen Transporter DSG models to experience a key stuck…
In January 2023, I decided to apply to have LilaConnect installed in my home after…
My small business has been a Customer of Veolia for over a decade, but I…
If you're getting cold calls from 03330341635 claiming to be from BT, don't be fooled:…
On 11th August 1942 a German air raid (which Berlin would later confirm to have…
This Severalls Hospital Timeline provdes an idea of important dates in the hospital's history and…
View Comments
Hello,
I was wondering if you have any sponsored posts options available on your site.
If yes, can you please get back to me with the prices and the details for the same.
Do let me know