Defining the Problem or Opportunity
The initial and most critical step is to define the problem or opportunity. The accuracy of this step affects all the steps that follow. If the problem or opportunity is incorrectly defined, every other step in the decision process will be based on that false start.
In problem solving, a manager must differentiate between a problem and a symptom. A symptom signals that something is wrong. It should draw the manager’s attention to finding the cause – that is, the problem. To isolate the problem from the symptoms, a manager needs to develop a sound questioning process and to ask the right questions.
According to Peter Drucker, “The most common source of mistakes in management decisions is the emphasis on finding the right answer rather than asking the right questions.”
In the process of asking questions, the manager gathers relevant and timely data about the problem. The best way to get a good data is for managers to tune in to the work environment.
According to management expert Tom Peters, the source of the most relevant and accurate information for a manager is the people in the workplace.
To assist in defining the problem, Charles Kepner and Benjamin Tregoe, who conducted detailed studies of managerial decision making, recommend that managers ask a series of questions using the funnel approach to distinguish between symptoms and problems.
Initially, a manager notices a problem. He or she then begins to apply the funnel approach by asking questions to identify the real problem, not just the symptom.
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