Decision Making: How to Solve Problems Effectively

One of the biggest challenges for entrepreneurs is solving problems effectively. Often, people deal with the symptoms, that is, the effects, instead of identifying the real cause. Understanding the difference between problems and symptoms is essential for effective decision-making.

Problem vs. Symptom: What is the difference?

1. Symptoms: These are the visible effects of a problem.
   They are the "clues" that something is not working properly. Business example: a decrease in sales is usually seen as a problem, but in reality, it is a symptom.

2. Problems: These are the underlying causes that lead to the symptoms.
   In the case of declining sales, the cause could be an inadequate marketing strategy, lack of customer retention, an internal issue such as unmotivated sales staff, or even an external macroeconomic problem, etc.

    

How to distinguish a problem from a symptom?

1. Question the symptoms: Instead of addressing the symptom directly, ask questions that lead to the cause.
   Example: "Why are sales dropping?" The answer could be one of the above-mentioned reasons, or perhaps a change in customer preferences, product failures, etc.

2. Root Cause Analysis: Use the "5 Whys" technique (developed in the 1930s by Sakichi Toyoda, the founder of Toyota).
   Ask "Why?" repeatedly until you reach the root of the problem. This simple but effective technique helps avoid superficial solutions to symptoms. (In my experience, the root of the problem usually surfaces before asking "why" five times.)

    

Making decisions based on causes

After identifying the real cause, it is possible to generate solutions that address the true problem. Focusing on causes rather than symptoms allows decisions to have a more lasting, often definitive, impact.

Example 1:

• Symptom: The team is frequently missing deadlines.
• Cause: Investigation shows that the team lacks the appropriate tools or training.

Addressing only the symptom by increasing team size or pressuring to meet deadlines would not solve the underlying problem and could even negatively affect the company (increased costs and lower morale).

Example 2 (common in the classroom):

• Symptom: A toothache. (Apply the "5 Whys" technique to the symptom: Okay, the tooth hurts. But, "why?")
• Cause: An untreated cavity. (The cause surfaced on the first "why.")

Addressing only the symptom, i.e., the toothache, with painkillers would resolve the immediate concern, but the problem would remain. Thus, the solution would be temporary, as the pain would return with full force shortly thereafter.

However, since we know the root cause, we can treat the cavity and thus resolve the problem and its symptom permanently.

Conclusion

Making effective decisions requires more than just reacting to symptoms. By identifying the underlying causes, the company can develop solutions that solve problems sustainably. This process of distinguishing between problems and symptoms enables a strategic and long-lasting approach, avoiding temporary fixes and ensuring that decisions have a positive long-term impact.