what is a problem solving in business

* Review and document how processes currently work

*  Why do you think there's a problem (identify potential causes: who, what, why, where, how)

*  State the problem as clearly as possible

SOURCE:

Intensive manual processing due to physical handling of paperwork.

: Annual leave forms are typically filled out by the Employee, printed, sent to the Manager/Delegate for approval, sent to Human Resources for verification and data entry, scanned and uploaded to the EDRMS, and then sent to Payroll for (re) data entry.

: This highly manual scenario leads to ‘bottlenecks’ in service delivery and promotes the risk of poor organisational response to business and lost time that should be spent carrying out core business.

SOURCE: 

*  Get input from people who are affected by the problem

*  Write down opinions and observations of people affected by the problem

*  Consider all potential causes of the problem: competition, business model, market factors, team performance, etc.

*  If needed, conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)

*  Employ research tools, such as information sources, databases, surveys, and interviews for fact finding, data gathering and analysis, etc.

SOURCE: Cisco Systems, Inc. SWOT Analysis; Date:   October 26, 2020

Porter's Five Forces

• Threat of New Entrants (effectively, this is “Barriers to Entry”)
• Competitive Dynamics
• Supplier Power
• Buyer Power
• Threat of Substitutes
• Competitors
• Customers/clients
• Opportunities

SOURCE and for additional information on analysis frameworks and more, please go to: STREETOFWALLS

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What Is Problem-Solving? How to Use Problem-Solving Skills to Resolve Issues

Great businesses don’t exist to simply grow and make money. Instead, they solve the world’s problems , from tiny issues to giant dilemmas. Problem-solving is essentially the main function of organizations. An effective organization will have systems and processes in place to reach their goals and solve problems. If a company has team members and leaders who have poor problem-solving skills, that means they’re ineffective at one of the core functions of a business.

What Is Problem-Solving?

What is the general process of problem-solving, 1. define the problem, 2. brainstorm possible solutions, 3. research several options.

After you’ve come up with several possible alternative solutions, pick two or three that seem the most promising using your analytical skills. Then you’ll need to buckle down and do some research to see which one to pursue. Conduct your research using primary and secondary resources.

4. Select a Solution

In order to make the most objective decision:

5. Develop an Action Plan

When the right choice is made, and the solution is placed into the overall strategy, start developing an action plan . Lay out the “who,” “what,” “when,” “why,” and “how.” Visualize exactly what success looks like with this new plan. When working through the problem-solving process, write all the details down. This helps leaders construct action items and delegate them accordingly. Never leave this part of the process empty-handed. Your team needs a clear picture of expectations so they can properly implement the solution. And if everything works, you can use this problem-solving model in the future.

The Best Problem-Solving Strategies and Tools

One of the best ways to discover the root cause of a problem is by utilizing the 5 Whys method. This strategy was developed by Sakichi Toyoda, founder of Toyota Industries. It’s as simple as it sounds. When a problem occurs, ask why it happened five times. In theory, the last answer should get to the heart of the issue.

First Principles Thinking

When one engages in first principles thinking , they end up questioning what everyone just assumes to be true. It effectively removes those assumptions , breaking things down into their most basic elements that are probably true. It’s all about getting to that core foundation of truth and building out from there. Problem-solving skills should always include first principles thinking.

Steve Jobs’ Problem-Solving Method

What to do when a problem feels too big to solve.

Tackling a problem that feels too big to solve requires a can-do, positive mindset. In order to improve your problem-solving, you’ll need to take remember these steps. Imagine what is possible instead of focusing on what seems impossible. As you do so, you’ll become skilled in solving all sorts of problems while also improving your decision-making.

Effective Problem-Solving Techniques in Business

Problem solving is an increasingly important soft skill for those in business. The Future of Jobs Survey by the World Economic Forum drives this point home. According to this report, complex problem solving is identified as one of the top 15 skills that will be sought by employers in 2025, along with other soft skills such as analytical thinking, creativity and leadership.

Dr. Amy David , clinical associate professor of management for supply chain and operations management, spoke about business problem-solving methods and how the Purdue University Online MBA program prepares students to be business decision-makers.

Why Are Problem-Solving Skills Essential in Leadership Roles?

Every business will face challenges at some point. Those that are successful will have people in place who can identify and solve problems before the damage is done.

“The business world is constantly changing, and companies need to be able to adapt well in order to produce good results and meet the needs of their customers,” David says. “They also need to keep in mind the triple bottom line of ‘people, profit and planet.’ And these priorities are constantly evolving.”

To that end, David says people in management or leadership need to be able to handle new situations, something that may be outside the scope of their everyday work.

“The name of the game these days is change—and the speed of change—and that means solving new problems on a daily basis,” she says.

The pace of information and technology has also empowered the customer in a new way that provides challenges—or opportunities—for businesses to respond.

“Our customers have a lot more information and a lot more power,” she says. “If you think about somebody having an unhappy experience and tweeting about it, that’s very different from maybe 15 years ago. Back then, if you had a bad experience with a product, you might grumble about it to one or two people.”

David says that this reality changes how quickly organizations need to react and respond to their customers. And taking prompt and decisive action requires solid problem-solving skills.

What Are Some of the Most Effective Problem-Solving Methods?

David says there are a few things to consider when encountering a challenge in business.

“When faced with a problem, are we talking about something that is broad and affects a lot of people? Or is it something that affects a select few? Depending on the issue and situation, you’ll need to use different types of problem-solving strategies,” she says.

Using Techniques

There are a number of techniques that businesses use to problem solve. These can include:

• Five Whys : This approach is helpful when the problem at hand is clear but the underlying causes are less so. By asking “Why?” five times, the final answer should get at the potential root of the problem and perhaps yield a solution.
• Gap Analysis : Companies use gap analyses to compare current performance with expected or desired performance, which will help a company determine how to use its resources differently or adjust expectations.
• Gemba Walk : The name, which is derived from a Japanese word meaning “the real place,” refers to a commonly used technique that allows managers to see what works (and what doesn’t) from the ground up. This is an opportunity for managers to focus on the fundamental elements of the process, identify where the value stream is and determine areas that could use improvement.
• Porter’s Five Forces : Developed by Harvard Business School professor Michael E. Porter, applying the Five Forces is a way for companies to identify competitors for their business or services, and determine how the organization can adjust to stay ahead of the game.
• Six Thinking Hats : In his book of the same name, Dr. Edward de Bono details this method that encourages parallel thinking and attempting to solve a problem by trying on different “thinking hats.” Each color hat signifies a different approach that can be utilized in the problem-solving process, ranging from logic to feelings to creativity and beyond. This method allows organizations to view problems from different angles and perspectives.
• SWOT Analysis : This common strategic planning and management tool helps businesses identify strengths, weaknesses, opportunities and threats (SWOT).

“We have a lot of these different tools,” David says. “Which one to use when is going to be dependent on the problem itself, the level of the stakeholders, the number of different stakeholder groups and so on.”

Each of the techniques outlined above uses the same core steps of problem solving:

• Identify and define the problem
• Consider possible solutions
• Evaluate options
• Choose the best solution
• Implement the solution
• Evaluate the outcome

Data drives a lot of daily decisions in business and beyond. Analytics have also been deployed to problem solve.

“We have specific classes around storytelling with data and how you convince your audience to understand what the data is,” David says. “Your audience has to trust the data, and only then can you use it for real decision-making.”

Data can be a powerful tool for identifying larger trends and making informed decisions when it’s clearly understood and communicated. It’s also vital for performance monitoring and optimization.

How Is Problem Solving Prioritized in Purdue’s Online MBA?

The courses in the Purdue Online MBA program teach problem-solving methods to students, keeping them up to date with the latest techniques and allowing them to apply their knowledge to business-related scenarios.

“I can give you a model or a tool, but most of the time, a real-world situation is going to be a lot messier and more valuable than what we’ve seen in a textbook,” David says. “Asking students to take what they know and apply it to a case where there’s not one single correct answer is a big part of the learning experience.”

Make Your Own Decision to Further Your Career

An online MBA from Purdue University can help advance your career by teaching you problem-solving skills, decision-making strategies and more. Reach out today to learn more about earning an online MBA with Purdue University .

If you would like to receive more information about pursuing a business master’s at the Mitchell E. Daniels, Jr. School of Business, please fill out the form and a program specialist will be in touch!

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9 Keys to Solving Problems in Business Quickly and Effectively

Problem-solving in business takes self-discipline and focus, but is a skill that must be learned..

Creating a new business , or working in an existing one, is all about problem solving. Some people are good at it and some are not -  independent of their IQ  or their book smarts (there may even be an inverse relationship here). Yet I'm convinced that problem-solving is a  learnable trait , rather than just a birthright.

Business owners who are great problem solvers within any business are the best prepared to solve their customers' needs effectively as well. In fact, every business is about solutions to customer problems - no problems, no business. Problems are an everyday part of every business and personal environment.

Thus it behooves all of us to work on mastering the discipline of problem solving. Here is a formula from Brian Tracy, in his classic book No Excuses! The Power of Self-Discipline  that I believe will help business professionals move up a notch in this category:

1. Take the time to define the problem clearly. 

Many business leaders like to jump into solution mode immediately, even before they understand the issue. In some cases, a small problem can become a big one if you attack it with inappropriate actions. In all cases, real clarity will expedite the path ahead. 

2. Pursue alternate paths on "facts of life" and opportunities. 

Remember, there are some things that you can do nothing about. They're not problems; they are merely facts of life, like natural disasters. Often, what appears to be a problem is actually an opportunity in disguise. 

3. Challenge the definition from all angles. 

Beware of any problem for which there is only one definition. The more ways you can define a problem, the more likely it is that you will find the best solution. For example, "sales are too low" may mean strong competitors, ineffective advertising, or a poor sales process. 

4. Iteratively question the cause of the problem. 

This is all about finding the root cause, rather than treating a symptom. If you don't get to the root, the problem will likely recur, perhaps with different symptoms. Don't waste time re-solving the same problem. 

5. Identify multiple possible solutions. 

The more possible solutions you develop, the more likely you will come up with the right one. The quality of the solution seems to be in direct proportion to the quantity of solutions considered in problem-solving. 

6. Prioritize potential solutions. 

An acceptable solution, doable now, is usually superior to an excellent solution with higher complexity, longer timeframe, and higher cost. There is a rule that says that every large problem was once a small problem that could have been solved easily at that time. 

7. Make a decision. 

Select a solution, any solution, and then decide on a course of action. The longer you put off deciding on what to do, the higher the cost, and the larger the impact. Your objective should be to deal with 80 percent of all problems immediately. At the very least, set a specific deadline for making a decision and stick to it. 

8. Assign responsibility. 

Who exactly is going to carry out the solution or the different elements of the solution? Otherwise, nothing will happen, and you have no recourse but to implement all solutions yourself. 

9. Set a measure for the solution. 

Otherwise, you will have no way of knowing when and whether the problem was solved. Problem solutions in a complex system often have unintended side effects which can be worse than the original problem. 

People who are good at problem-solving are some of the most valuable and respected people in every area. In fact, success is often defined as the ability to solve problems. In many cultures, this is called street smarts , and it's valued even more than book smarts. The best business professionals have both.

A refreshed look at leadership from the desk of CEO and chief content officer Stephanie Mehta

Privacy Policy

Indeed, while some employers have been increasing child care benefits, fewer have policies regarding time off to care for older family members. But according to insurance company WTW, employer  interest in paid caregiver leave is growing: In January, a quarter of employers surveyed by WTW reported offering a paid caregiver leave policy, but another 22 percent said they are planning to or considering implementing one over the next two years. 

Time away (with an assurance of job security) and flexibility are the top two things caregivers say they need from their employers, according to the Grayce survey. But some need help that goes a step further. Twenty-seven percent of surveyed caregivers say they could use help securing a professional caregiver to be physically present for their loved one, and around 20 percent say they wish they had access to a licensed professional who could help them create a support plan. 

Employers have a vested interest in developing these benefits, the report notes. More than seven in ten surveyed employees say if they received support for their care needs from their employer, it would have helped them avoid or reduce the time they took away from work. 

\"The culture of leave is historically just to give people space,\" says Sebastien. \"But what we're seeing in this data is that there's a big subset of the population that's navigating ongoing care needs, and space is not just going to solve it.\"  

Balancing caregiving duties and work can be incredibly challenging, and a lack of employer support can make some employees feel that managing both is impossible. According to the survey, when employees take extended leave for caregiving reasons, they are 3.4 times more likely to consider quitting. 

\"This is a call to action for employers to support caregivers--before they go on leave--with high-touch concierge service. That is, providing caregivers with the benefits and support they need to navigate their caregiving responsibilities as full-time employees,\" the report says. 

For entrepreneurs at the start of their business-building journey, fundraising isn't just about securing capital. It's also an opportunity to expand their network, receive valuable feedback, and increase brand exposure.

Such was the case for San Francisco-based Mimio Health --a biotech company making supplements that aid in longevity--which gained more than just funding from angel investing syndicate Gaingels .  

Mimio CEO and co-founder Chris Rhodes first became fascinated with healthy aging, longevity, and intermittent fasting while pursuing a PhD in nutritional biochemistry from UC Davis. After participating in a series of accelerators and pre-seed rounds, the company raised a $1.75 million seed round in March 2023, led by Better Ventures, with participation by SOSV, Thia Ventures, What If Ventures, R42, and Gaingels.

Although Gaingels wasn't Mimio Health's largest investor in its seed round ($43,000 for a 0.68 percent equity stake), its involvement has brought valuable nonmonetary benefits. 

Originally conceived as an angel investment group made up of LGBTQ+ investors, Gaingels invests in diverse business leaders and specifically in LGBTQ+ founders, an underserved community when it comes to funding. A recent StartOut report notes that LGBTQ+ founders raised only 0.5 percent of startup funding in the U.S. between 2000 and 2022. Despite this disparity, LGBTQ+ founders have demonstrated remarkable economic performance when given the opportunity. Compared with the average U.S. founder , from 2000 to 2022 LGBTQ+ founders created 36 percent more jobs, 114 percent more patents, and 44 percent more exits--all while having 16 percent less funding.   

Rhodes, a member of the LGBTQ+ community, says he has gained valuable insight from Gaingels' seminars, learning about other companies' activities and fundraising strategies. Additionally, Rhodes says that Mimio Health has established extensive connections through Gaingels' inclusive portfolio network, some of which have led to brand exposure opportunities, including \"the person who set us up with a podcasting agency that helped us land all of these placements that helped push the brand forward in the early days.\"

Rhodes has also found working with a like-minded investor and the supportive community Gaingels brings beneficial. This shared understanding and network provided Mimio Health with both professional and personal support, enhancing the overall experience of the entrepreneurial journey.

\"Being a part of that network has been great for me because I feel a great sense of community,\" says Rhodes. \"Even just to see that I'm not alone in this journey, that there are a ton of other LGBTQ+ founders like me who are going through similar trials and tribulations and having their own unique experiences with things is just really helpful for me, from like an 'everything's alright with the world' kind of standpoint.\"

During the year since its launch, Mimio Health has continued pushing out its first biomimetic fasting supplement, but Rhodes says the company wants to research other regenerative states of the body, such as exercise, sleep, and meditation. The goal is to understand what occurs in the body during these activities and explore ways to replicate these effects. 

Rhodes says that although Gaingels currently does not have a formal role in Mimio Health beyond being an investor, his company might seek additional capital if it transitions from seed to Series A funding. 

\"We're not actively raising capital, so we're not actively going back into the Gaingels network right now, but it's definitely something that we would be looking to do in the future because Gaingels does a lot of follow-on funding,\" says Rhodes.

2. Pursue alternate paths on \"facts of life\" and opportunities. 

Beware of any problem for which there is only one definition. The more ways you can define a problem, the more likely it is that you will find the best solution. For example, \"sales are too low\" may mean strong competitors, ineffective advertising, or a poor sales process. 

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How to Solve Problems

• Laura Amico

To bring the best ideas forward, teams must build psychological safety.

Teams today aren’t just asked to execute tasks: They’re called upon to solve problems. You’d think that many brains working together would mean better solutions, but the reality is that too often problem-solving teams fall victim to inefficiency, conflict, and cautious conclusions. The two charts below will help your team think about how to collaborate better and come up with the best solutions for the thorniest challenges.

• Laura Amico is a former senior editor at Harvard Business Review.

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Why problem-solving Is Important in Business

Problem-solving is a critical skill in business.

It involves the ability to identify and solve problems efficiently and effectively to move a company forward.

Whether it’s resolving a technical issue, finding a new solution to an age-old problem, or simply making a difficult decision, strong problem-solving skills are essential for the success of any business.

In this blog post, we’ll explore why problem-solving is so important in the business world and how it can help organizations thrive.

The Importance of Problem-Solving in Business

As mentioned in the introduction, problem-solving is a crucial skill in the business world. It allows organizations to identify and address challenges in a timely and effective manner, which is essential for driving progress and growth.

Without strong problem-solving abilities, businesses may struggle to adapt to change and overcome obstacles, ultimately hindering their success.

But the importance of problem-solving goes beyond just overcoming challenges.

It can also help businesses to identify and seize new opportunities, allowing them to stay ahead of the competition and remain innovative.

Whether it’s finding a new market to tap into or developing a more efficient production process, problem-solving skills are key to driving innovation and staying ahead of the curve.

In short, strong problem-solving skills are essential for businesses of all sizes and industries.

They help organizations to overcome challenges, stay adaptable, and identify and seize new opportunities.

In the following sections, we’ll delve deeper into the various ways that problem-solving can benefit businesses and the different techniques and strategies that can be used to tackle problems effectively.

Developing Problem-Solving Skills

Developing strong problem-solving skills is essential for the success of any business, and there are several ways that organizations can help their employees to hone these skills. Some strategies for developing problem-solving skills include:

Providing training and development opportunities

Many organizations offer training programs or workshops specifically designed to help employees develop problem-solving skills. These programs may include simulations, case studies, or hands-on exercises that allow employees to practice and apply their skills.

Encouraging a growth mindset

A growth mindset is a belief that abilities can be developed through effort and learning. By fostering a culture of continuous learning and encouraging employees to embrace challenges and failures as opportunities to grow and improve, businesses can help to develop problem-solving skills.

Encouraging collaboration and open communication

Collaboration and open communication can be key to solving problems effectively. By creating an environment where employees feel comfortable sharing ideas and seeking help, businesses can foster a culture of problem-solving and continuous improvement.

Providing resources and support

Organizations can also support the development of problem-solving skills by providing employees with the resources and support they need to tackle problems. This may include access to data and analytics tools, training materials, or guidance from experienced colleagues.

By implementing these strategies and providing opportunities for employees to practice and develop their problem-solving skills, businesses can build a strong problem-solving culture and equip their teams with the skills they need to drive success.

The Role of Leadership in Problem-Solving

Effective leadership is crucial for driving problem-solving within an organization. Leaders play a key role in setting the tone and culture of a business, and by fostering a culture of problem-solving and continuous improvement, they can help to develop strong problem-solving skills throughout the organization.

Some specific ways that leaders can support problem-solving within their organization include:

Modeling good problem-solving behavior

Leaders can set a good example by demonstrating strong problem-solving skills themselves. This can include taking a proactive approach to identifying and addressing challenges, seeking out new opportunities, and continuously learning and improving.

Encouraging a culture of continuous improvement

Leaders can create an environment that supports problem-solving by encouraging employees to embrace challenges, think creatively, and seek out new opportunities for improvement.

Leaders can also support problem-solving by providing employees with the resources and support they need to tackle problems effectively. This may include access to data and analytics tools, training materials, or guidance from experienced colleagues.

Recognizing and rewarding problem-solving efforts

By recognizing and rewarding employees who demonstrate strong problem-solving skills, leaders can encourage a culture of problem-solving and continuous improvement within the organization.

By taking an active role in fostering a problem-solving culture and providing the resources and support needed to tackle challenges, leaders can help their organizations to thrive and succeed.

The Benefits of Problem-Solving in Business

In addition to helping businesses to overcome challenges and seize opportunities, strong problem-solving skills can bring a range of other benefits to an organization. Some of the key advantages of problem-solving in business include:

Improved decision-making

Problem-solving skills help organizations to make informed and effective decisions. By using structured approaches and analyzing data, businesses can develop a clear understanding of the issues they face and identify the best course of action.

Enhanced adaptability

Problem-solving skills help businesses to stay adaptable and responsive to change. By being able to identify and address challenges quickly and effectively, organizations can better navigate the constantly-evolving business landscape.

Increased productivity

By resolving issues and identifying efficiencies, problem-solving can help businesses to increase productivity and reduce waste. This can lead to cost savings and improved profitability.

Improved customer satisfaction

Strong problem-solving skills can also help businesses to better serve their customers. By being able to identify and address issues promptly and effectively, organizations can improve customer satisfaction and build stronger relationships with their clients.

Enhanced innovation

Problem-solving skills can also drive innovation within an organization. By encouraging employees to think creatively and critically , businesses can identify and seize new opportunities, leading to new products, services, or processes that set them apart from the competition.

Problem-solving is a critical skill in business, with the potential to drive progress, increase productivity, improve customer satisfaction, and drive innovation. By developing strong problem-solving skills and fostering a culture of continuous improvement, organizations can set themselves up for success.

Conclusion: The Vital Role of Problem-Solving in Business

Problem-solving is a vital skill in the business world. It allows organizations to identify and address challenges efficiently and effectively, helping them to overcome obstacles and seize new opportunities.

Strong problem-solving skills also drive innovation and improve decision-making, leading to increased productivity and customer satisfaction.

Developing and fostering a culture of problem-solving is essential for the success of any business.

By providing training and development opportunities, encouraging a growth mindset, and recognizing and rewarding problem-solving efforts, organizations can help their employees to hone their skills and drive progress.

Effective leadership also plays a key role in fostering a culture of problem-solving, providing the resources and support needed to tackle challenges and seize opportunities.

In short, problem-solving is a critical skill for businesses of all sizes and industries. By developing and fostering strong problem-solving abilities, organizations can set themselves up for success and thrive in today’s fast-paced business environment.

Are you good at problem-solving? Find out with our self-assessment!

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A business journal from the Wharton School of the University of Pennsylvania

For New Ideas, Think Inside (This) Box

June 25, 2024 • 7 min read.

In this Nano Tool for Leaders, Penn's David Resnick offers guidance on using helpful constraints to unlock new solutions to old problems.

Nano Tools for Leaders®   —  a collaboration between  Wharton Executive Education  and  Wharton’s Center for Leadership and Change Management  — are fast, effective tools that you can learn and start using in less than 15 minutes, with the potential to significantly impact your success and the engagement and productivity of the people you lead.

Harness constraints and analogies to unlock new solutions to old problems.

Traditional brainstorming,  as coined by Alex Osborne in the 1950s, asks participants to consider any and all ideas that might solve a problem. While blue-sky, no-limits thinking has several benefits, the drawback is that leaders often, paradoxically, get stuck. They encounter challenges like the “curse of the blank page,” not knowing where to start because they can start anywhere. They may also face the “ Einstellung effect ,” a phenomenon whereby the easy recollection of familiar solutions can block their ability to think of new ones.

This has led some to (erroneously) believe that generating solutions is best left to people who are naturally creative. The good news is that there are tools that can help one become much better at generating new ideas. The even better news is that using these tools does not involve extensive training or attending workshops. In fact, one tool developed at Penn Medicine’s Center for Health Care Transformation and Innovation is a simple  card game , and the “secret sauce” it teaches is how to leverage constraints and analogies. The  Accelerators in Innovation  game has teams of players use accelerator cards to create new kinds of solutions with questions such as “How would you solve postpartum depression if you operated like IKEA?” and “How might you tackle long emergency room wait times if you were Warren Buffet?” The solutions are then applied to problems presented on challenge cards while trying to avoid monkey wrenches from their opponents. After rapid-fire pitches, the judge determines each round’s winner.

Action Steps

1. make sure you are solving a problem..

Don’t solve for how to implement a solution. A classic example involved a design team brought in to figure out how to increase access to incubators. The issue is that the solution was already baked in (increase access to incubators). The team spent some time reframing the problem to focus on the true issue: ensuring that newborns are kept at a safe temperature, especially when delivery occurs in places with little or no access to electricity. Reframing to focus on the actual problem opened the team to entirely different solutions.

2. Leverage analogies.

Having to pull ideas out of thin air can be difficult and stressful. Analogies force us to consider other options or perspectives we may never have thought of, or thought of and dismissed. They cause us to ask ourselves “What is good about this other solution and how might it be applied to solving the problem I’m facing?” Examples include:

Think about successful companies and how their strengths could be applied to your problem. For example, IKEA is phenomenal at clearly explaining to people with limited background knowledge and literacy how to do something. So how might IKEA go about explaining post-op care to knee replacement patients?

Similarly, try using personas. Mary Poppins is renowned for making an unpleasant experience a delightful one. Mr. Rogers is known for his commitment to leveraging the kindness of neighbors. Darth Vader’s approach to getting things done is a ruthless level punishment for those who fail. Regardless of whom you choose, you can use the strengths or philosophies of these characters to inspire ideas. How might Mary Poppins improve adherence to physical therapy regimens? How might Darth Vader?

3. Leverage constraints.

Constraints are, unintuitively, another great way to force new thinking. Some options are:

How might you solve a problem if you were forced to delete a crucial (but perhaps onerous or costly) step of the process? Great examples are “How might tollbooths collect fees without a human there to do it?” (FastPass) or “How might people get their rental car if there was no line to wait in?” (Hertz Gold).

Design for extremes

How might you solve the problem if you had to solve for extreme use cases or extreme targets? For example, what would it take to screen 100 percent of eligible patients for colon cancer? How might you reduce civilian traffic fatalities to zero?

Real-world issues

Apply real-world constraints that have thrown a monkey wrench in your plans for past ideas. For example, how might you create a new marketing campaign that must be successful for consumers who do not speak English? How might you build a new product to launch on time even if multiple team members take a sabbatical or parental leave?

Focus on solving for how to make your solution delightful to users. This isn’t about making something silly or fun. It’s about surprising your users in a manner that unexpectedly accomplishes something for them.

4. Push for volume.

An additional benefit to Penn Medicine’s  Accelerators  card game is that it encourages multiple rounds to hear multiple ideas. When thinking of solutions, push for volume in your initial rounds. You’ll soon “use up” the ideas that come to mind easily and be forced to consider more creative or audacious alternatives.

5. Don’t take yourself too seriously.

Another key component of generating ideas while playing a game is that it allows for laughter and a sense of play. This mindset can foster creativity and an atmosphere of psychological safety for sharing ideas.

How One Leader Uses It

Rebecca Trotta, PhD, director of the Center for Nursing Excellence at Penn, leveraged this tool in developing a new program to support older adults after hospitalization. Her challenge was to build a service that could provide intensive at-home support. Despite an existing evidence-based protocol, there was concern that patient acceptance of this support would be low. Many folks are simply exhausted after being in the hospital and don’t want someone in their home. Using the constraint of solving for “delight,” Trotta and her team came up with the idea of delivering home meals to these patients and their caregivers.

While it might appear as a frivolous and seemingly useless expense, it turned out that after spending days (and sometimes weeks) in the hospital, patients came home to fridges that were empty or full of spoiled food. Providing them with a meal ensured they had adequate nutrition. More importantly, though, the meals showed a sense of caring and thoughtfulness that went well beyond patients’ expectations. It built a strong sense of trust that paid dividends in drastically increasing the acceptance of home services compared to baseline.

Contributor to this Nano Tool

David Resnick, MPH, MSEd, Senior Innovation Manager at Penn Medicine’s Center for Health Care Transformation and Innovation.  Accelerators in Health Care  card game co-created with Michael Begley, MA, Senior Experience Consultant at EPAM Systems, and Visiting Professor and Assistant Program Director of Masters of UX at Thomas Jefferson University.

Knowledge in Action: Related Executive Education Programs

• Effective Decision Making: Thinking Critically and Rationally
• The Neuroscience of Business: Innovations in Leadership and Strategic Decisions
• Mastering Innovation: Strategy, Process, and Tools
• Business Model Innovation in the Age of AI

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Solving the 12 Most Common Customer Problems [Guide]

11 min read

A surefire way to improve engagement and retention is to focus on solving customer problems.

Think about it – what would you do if you needed help but all you got was an incredibly unhelpful customer service agent? Chances are, you would take your business elsewhere.

That is precisely why you need to focus on improving your customer service problem-solving and providing excellent support focused on reducing the number of dissatisfied customers.

Where to get started? That’s what this guide is for, outlining frequent customer service issues and their solutions.

• Customer service problem-solving is the process of identifying and efficiently resolving customer concerns in a timely manner.
• Focusing on solving customer problems is vital because it offers key benefits, like improved retention , satisfaction , and loyalty , along with reduced support costs.
• Common customer service issues include lengthy wait times, inaccessible human reps, slow resolution, inconsistent support quality , and poor communication skills of the support team.
• A few shared reasons, like insufficient training, limited staffing, complex customer issues, and no standardized procedures or centralized knowledge bases , cause these issues.
• Possible solutions for these complaints involve implementing callback systems, simplifying automated menus, establishing clear resolution timelines, and standardizing training.
• Some additional effective techniques for problem-solving include empathizing, active listening, sincerely apologizing, proactively communicating, and offering compensation where needed.
• Improving your self-service resources and ensuring consistent operating hours are also useful best practices.
• Ready to optimize your customer service problem-solving strategy? Schedule a Userpilot demo and see how you can get started.

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What is customer service problem-solving?

Customer service problem-solving is a discipline focused on optimally identifying, addressing, and resolving issues customers encounter with a product or service.

It is important to note that, contrary to its name, customer service problem-solving is not just about fixing customer complaints.

It’s much more complex than that.

It requires effective problem-solving skills along with other key capabilities like communication , empathy , and critical thinking. It’s also about creating a system where all customer issues are prevented or solved as fast and efficiently as possible.

If done right, customer service problem-solving offers great benefits, such as improved customer satisfaction and loyalty .

Why solving customer problems is so important

Providing excellent customer service is a whole art, one that requires you to develop a functional strategy to do it right. But once you perfect your customer service problem-solving and better train your customer service team, the benefits are endless. Here are just a few:

• Increases customer retention .
• Enhances customer experience .
• Builds customer loyalty.
• Encourages customer engagement .
• Reduces support costs.
• Facilitates customer feedback collection.
• Drives customer satisfaction.

12 most common customer service problems (and how to fix them)

Different companies run into several types of customer service issues. However, there are quite a few recurring customer queries and complaints almost all customer service agents face. So let’s deep dive into what these are and learn the golden rules needed to solve customer service problems.

1. Long wait times

When you look at customer feedback, a common problem that frequently comes up is how often customers have to wait for customer support . All these extended hold times and long queues just add to the customer’s annoyance and dissatisfaction .

Main reasons :

• High call volume.
• Insufficient staffing.
• Complex customer complaints.
• Inadequate training .
• Limited self-service options.
• Backlog of unresolved issues.

Implement a callback system so customers don’t have to wait hours to talk to a customer service rep. Next, focus on streamlining your processes and consider increasing staffing during peak hours. Lastly, introduce chatbots for instant support on low-priority issues.

2. Frustration with inaccessible human reps

Customers often get frustrated with complex automated customer service menus and the inability to reach a human representative.

• Cost-saving strategies.
• Fewer customer service representatives.
• Outdated technology .
• Poor menu design .
• Language limitations.

There are several ways to solve this customer service problem. Start by simplifying automated menus and adding a clear option to speak with a human customer service agent.

Additionally, create comprehensive self-service materials so customers can troubleshoot independently. Also, regularly test the system for ease of usability and accessibility.

3. Slow resolution times

The next common customer service problem is customers having to follow up multiple times to get their issues resolved. This need to constantly check up on the issue wastes more of the customer’s time and is a sign of poor customer service.

• High workload and ticket volume .
• Complicated customer issues.
• Poor internal communication .
• Incomplete issue documentation .
• Ineffective prioritization of tasks.

Establish a clear resolution timeline, improve internal communication, and ensure regular follow-ups with customers until the issues are resolved.

4. Inconsistent support across channels

Customers experience different levels of support quality depending on the contact channel they use. So, a chatbot might not offer much help but an email ends up providing effective customer service problem-solving. This inconsistency only leaves customers confused about which channel to trust .

Main Reasons :

• Varying levels of support training.
• Different support team structures .
• Inconsistent use of knowledge bases.
• Lack of standardized procedures.
• Limited integration between channels.

Start by providing consistent training and resources to service reps across all platforms. Next, ensure that all support channels are well-integrated so information and user data flow seamlessly between them.

A good example of such omnichannel communication is Bluehost, which offers the same quality of live chat and phone support.

5. Excessive transfers between departments

Instead of any issue resolution , customers are often transferred several times between departments without making any progress . In the end, all that’s left is an angry customer and their unresolved complaint.

• Poor initial issue categorization.
• High specialization within departments.
• Insufficient cross-department communication.
• Inconsistent problem-solving protocols.
• Miscommunication or misunderstandings.

Instead of having multiple departments handle specific issues, train all customer service agents to handle a wide range of problems . Also, establish clear protocols for when transfers are necessary and explain the procedure to customers as well.

6. Poor communication skills of customer service reps

Sometimes customers feel undervalued and misunderstood because the customer service representatives lack empathy , communication, or problem-solving skills.

• Insufficient training programs .
• Inadequate soft skills development.
• Lack of performance monitoring .
• Limited knowledge of products or services.
• Limited focus on customer empathy .

Invest in your customer support team, training them in skills like empathy, active listening, and clear communication. Introduce regular monitoring and evaluation of customer service interactions , via CES surveys for example, for quality control.

7. Insufficient knowledge among support staff

Oftentimes, support representatives fail at customer service problem-solving because they lack relevant knowledge . In some cases, they even recommend wrong solutions , which only worsen the customer complaint and potentially increase churn and losses.

• Lack of customer service training.
• Limited access to updated product information .
• Complex product or service offerings.
• Rapid changes in products or services.
• Poorly designed knowledge management systems .

Provide comprehensive training to your customer representatives, ensuring that they are well-versed with the product or service.

Next, try maintaining an up-to-date customer service knowledge base that is accessible to all. This way, representatives can refer to it whenever needed instead of suggesting flawed solutions.

8. Conflicting information from different reps

A common customer complaint is how often they receive conflicting information from different support representatives, leading to confusion and greater mistrust.

• Lack of clear documentation and standardized procedures.
• Inconsistent training across different departments.
• Outdated or inaccurate knowledge base .
• Insufficient supervision and monitoring .
• Varying levels of agent experience.

Make sure all customer service agents are on the same page, by standardizing important information and procedures. Moreover, ensure that each team member gets access to the same resources , training, and product information.

9. Perceived difficulty in contacting customer service

Sometimes, the customer service problem-solving quality itself isn’t the issue. Instead, the problem is that some companies avoid direct contact, making customers exert a lot of effort to get in touch with customer service.

• Cost reduction strategies.
• Overreliance on self-service options and automation .
• Limited staffing resources.
• Overwhelmed support infrastructure.
• Challenges in scaling customer support operations.

Make contact information easily accessible, mentioning it clearly at several touchpoints . Also, to cater to varying customer needs , provide multiple contact channels, and ensure prompt responses.

Hostinger does a good job at this, clearly outlining numerous support channels, along with links to other help center resources like tutorials :

10. Difficulty in resolving issues through self-service

Providing self-service options is great, but it shouldn’t be the only way customers can get help . Companies need to consider that not all customers find it easy to troubleshoot and resolve issues on their own.

• Complex or inaccessible UI design .
• Lack of sufficient information.
• Limited types of content (e.g. only blogs, no videos or tooltips ).
• Technical glitches or bugs .
• Inability to handle complex customer complaints.
• No human support options.

Simplify self-service interfaces and ensure easy access to human support as well for customers who prefer it.

Introduce various content types within the resource center , such as comprehensive and interactive guides , FAQs, blogs, case studies , checklists , etc.

11. Unresolved customer issues

Usually, the main reason behind decreasing customer satisfaction is simple: their problems and complaints aren’t getting resolved. When this happens, customers feel neglected and are more at risk of churning .

• Lack of technical skills and training.
• Inadequate knowledge management systems .
• Complexity of the product or service.
• High employee turnover affects resolution continuity.
• Poor integration between departments.
• Ineffective prioritization of customer issues.

To improve customer retention, implement a follow-up system to ensure all issues are resolved and offer timely updates to customers. In addition, provide personalized customer service to build trust and understand specific pain points so you can resolve issues better.

12. Inconsistent operating hours

Last but not least, a recurring customer service problem is when support is not available at consistent or convenient times. This just makes it harder for customers to seek help , causing them to ultimately give up on your business entirely.

• Limited resources for 24/7 support.
• Lack of sufficient staffing to cover all time zones.
• High cost associated with around-the-clock service reps.
• Difficulty in recruiting and retaining staff for non-traditional hours.

To avoid any confusion, standardize your operating hours and communicate them clearly to customers. If customer complaints about operating hours still continue, then consider providing extended hours as well.

Here’s an example by SiteGround that clearly advertises it’s 24-hour support:

Try Userpilot and Take Your Customer Service to the Next Level

The key customer service problem-solving techniques.

Now that you’ve gone over all the common customer complaints and queries, it’s time to focus on making sure they don’t happen again. To help with that, here are the top customer service problem-solving best practices guaranteed to delight customers.

Empathy, active listening, and personalization

One simple technique for providing the best customer support is to listen carefully. This requires that you solely focus on the customer without any distractions, show interest, and ask clarifying questions. Only through such active listening can you truly understand the customer’s needs .

Along with listening intently, you also need to be patient and reflect on the customer’s feelings. In other words, you must empathize with your customers’ experience before jumping to a solution. This helps build trust and rapport necessary for long-lasting relationships.

Lastly, it is important to acknowledge that all customers are unique, and therefore each customer’s problem should be treated individually. This allows for a more personalized solution , best-suited for the customer’s specific complaint.

Troubleshooting based on experience

It’s true – practice does make perfect. So if you want to improve your customer service problem-solving skills, the best way is through hands-on experience . The more practice you get working on and learning from previous cases, the more your ability to diagnose and fix issues will improve.

However, this doesn’t mean you don’t need any training at all. Instead, the two go hand-in-hand. Training provides the necessary foundational knowledge , while hands-on experience refines that knowledge through practical application .

Both these things also help ensure cross-department exchange of information and improved collaboration over time.

Providing sincere apologies

A golden rule of customer service: Never ever argue with the customer. When a customer is upset or in need of help, arguing with them will only make matters worse. Plus, arguing only further ruins the customer experience and could lead to negative word of mouth .

The right thing to do is to apologize sincerely. Often, a genuine apology is all customers need to feel validated, helping de-escalate the situation. Moreover, once you’ve apologized, customers are more open to trusting you, thereby making them receptive to any proposed solutions.

To ensure an apology is effective, it should be timely, specific to the customer’s issue, and accompanied by a clear plan for resolution. If done right, sincere apologies contribute greatly to customer satisfaction , loyalty, and a positive brand reputation.

Consistent follow-up and proactive communication

In order to provide effective customer support, simply resolving the problem is not enough. There are other elements you need to simultaneously take care of as well, to provide customers with a seamless experience throughout.

To start off, the service team must keep customers informed about the progress of their issues. This includes letting them know of any delays or necessary follow-up actions. Such transparency in the resolution process helps reassure the customer and highlights your commitment to customer service.

Even after providing a solution, you must follow up with the customer again to ensure the problem has been fully resolved.

Offer compensation

In certain cases, simply apologizing for the issue is not sufficient. Rather, it is important that you offer compensation for the negative experience.

This helps repair the relationship by demonstrating accountability on your part and showing how committed you are to customer satisfaction . It also provides a tangible gesture of goodwill , which can hopefully reduce any negative impact the issue may have caused.

Glovo (a food delivery app) is a good example to quote here. If your order is missing some parts or has other issues, Glovo often issues instant refunds.

Improving self-service resources

Finally, the last trick to perfecting your customer service problem-solving ability is to create comprehensive self-service options . These can include resource centers, knowledge bases , how-to videos, community forums, help center portals, user guides , and more.

Providing these resources empowers customers to quickly resolve issues on their own, reducing wait times and boosting satisfaction . Additionally, self-service portals also decrease the workload on customer service teams, enabling them to focus on more complex inquiries.

For example, here’s a look at the self-service options Zendesk offers:

Effectively and quickly solving customer problems is crucial for driving retention and enhancing satisfaction. But there are several other facets to customer service problem-solving to keep in mind too, such as empathy, active listening, and other soft skills.

To make things easier, try keeping a few tips and best practices in mind. For example, focus on training your customer service team, proactively communicating, offering multiple channels of contact, and enhancing self-service resources.

With all these techniques in hand, you’ll be able to reduce churn and create a positive customer experience in no time!

Want to get started solving customer problems? Get a Userpilot Demo and see how you can improve customer loyalty.

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‘Inside Out 2’ is a blockbuster. It doesn’t solve the animation business’ biggest problem

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“Inside Out 2” is a bigger box office hit than even Pixar’s staunchest believers had dared to expect, turning down the anxiety dial for fans worried about the Walt Disney Co.-owned computer animation stalwart’s prospects and the state of theatrical box office in general.

The emotion-filled family sequel grossed $100 million from theaters in the U.S. and Canada during its second weekend, representing a mere 35% decline from its gangbusters domestic opening. With $724 million in global ticket sales so far and impressive word-of-mouth, a $1-billion total seems all but assured. Those kinds of numbers go a long way toward burnishing the Pixar brand, which was in need of a confidence boost.

Coming up next for family audiences: more sequels! Universal and Illumination’s “Despicable Me 4” is expected to do huge numbers when it launches during the week of July 4. Disney is betting on “Moana 2” and “Mufasa: The Lion King” (spun off from the “live-action” “Lion King” remake that was entirely computer-generated) to continue its animated momentum.

But the biggest question facing the feature animation business is one that neither “Inside Out 2” nor the Minions — or even Sony’s successful “The Garfield Movie” — can address: What is going on with originals?

While Hollywood thrives on sequels, a robust industry depends on the creation of new franchises. This is especially true for Disney, which relies on new movies to fuel its parks business, toy sales and other facets of its corporate entertainment apparatus. Those new hit properties have been hard to come by lately.

Before “Inside Out 2,” Disney Animation released “Wish,” which failed to impress critics or audiences. Pixar’s “Elemental,” while it eventually found its footing in theaters, posted modest numbers compared with the studio’s prior efforts. DreamWorks Animation’s “Ruby Gillman, Teenage Kraken” and Disney’s “Strange World” full-on bombed. Disney’s “Encanto,” released in the pandemic-afflicted year of 2021, disappointed in theaters, though it became a viral musical phenomenon when it reached streaming.

“There has been trouble getting new stuff established,” said Tom Sito, an animation professor at USC’s School of Cinematic Arts. “It’s very hard, when you have a brand-new character, to get the audience in 90 minutes. It’s the reason why Disney did so well with fairy tales, because when you hear the word ‘Aladdin’ or ‘The Little Mermaid, you know what you’re getting. When you hear the word ‘Wish’ or ‘Onward,’ you don’t.”

There are multiple theories for why original animated properties have been struggling to generate box office sales.

Disney often is blamed for training audiences to watch its movies at home by sending its pandemic-era Pixar movies “Soul,” “Luca” and “Turning Red” straight to Disney+. Other studios shortened their theatrical windows after using COVID-19 as an opportunity to experiment with different release strategies, meaning moviegoers had more flexibility to wait to see new films online if they wanted.

Economic factors also are at play. Animation is expensive for studios, with Pixar and Disney typically spending $175 million to $200 million to produce a feature film (rivals, including Illumination, Sony and Paramount, spend less). That puts a limit on the companies’ appetite for risk.

And for families, taking kids to the movies can be pricey, and getting everyone in the car on time is a hassle. With those costs and headaches in mind, parents want to be reasonably sure the experience is worth the trouble, and movies with already familiar characters are generally considered a safer bet.

There’s also just so much competition for children’s attention, between social media, YouTube and streaming. Studios have to work harder for new stuff to break through.

It’s more difficult to market these movies now than during the Disney renaissance era, when the Burbank entertainment giant could use every arm of the company, including ABC and the Disney Channel, to make the pitch to kids and parents. Disney still does that, but with linear TV on the decline, it’s a less powerful strategy than it once was.

For those reasons and others, families aren’t always trekking to the theater on opening weekend for an original motion picture, as “Elemental” showed. That movie opened with Pixar’s worst domestic debut since the first “Toy Story” in 1995 but had remarkable staying power, eventually grossing nearly $500 million, suggesting the problem wasn’t the quality of the movie itself . As Ireland-based kids media consultant Emily Horgan has noted, the film also was a hit on streaming.

Universal and Illumination had a weak start with “Migration” over Christmas weekend yet held on to reach almost $300 million (still low, but not as bad as it could have been).

Despite the challenges, studios are still trying to make originals. DreamWorks Animation in September will release “The Wild Robot,” a sci-fi adventure based on a book of the same name, featuring the voice of Lupita Nyong’o. Disney and Pixar will test the originality waters again next year with “Elio,” about a young boy who accidentally becomes Earth’s intergalactic ambassador. But sequels will be there to fill the coffers. In 2026, Disney will release “Toy Story 5” and “Frozen III.”

Pixar executives, in interviews with Bloomberg , have outlined a strategy of releasing three movies every two years, toggling back and forth between originals, sequels and spinoffs.

One hopes that Pixar will continue to be selective when it comes to mining its past hits. “Inside Out 2” worked because it had an inspired premise — what new emotions would come into the mix once Riley hit puberty? It was a simple idea, well executed. And the timing was ideal, with memories of the groundbreaking original still firmly implanted in the emotionally wrecked minds of the folks who saw it in 2015, many of whom now have offspring of their own.

But sequels and spinoffs have their own risks, as Pixar’s “Toy Story” offshoot “Lightyear” demonstrated when it cratered in 2022. Young people, even kids, can smell an ill-conceived franchise extension a mile away.

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Stumped five ways to hone your problem-solving skills.

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Respect the worth of other people's insights

Problems continuously arise in organizational life, making problem-solving an essential skill for leaders. Leaders who are good at tackling conundrums are likely to be more effective at overcoming obstacles and guiding their teams to achieve their goals. So, what’s the secret to better problem-solving skills?

1. Understand the root cause of the problem

“Too often, people fail because they haven’t correctly defined what the problem is,” says David Ross, an international strategist, founder of consultancy Phoenix Strategic Management and author of Confronting the Storm: Regenerating Leadership and Hope in the Age of Uncertainty .

Ross explains that as teams grapple with “wicked” problems – those where there can be several root causes for why a problem exists – there can often be disagreement on the initial assumptions made. As a result, their chances of successfully solving the problem are low.

“Before commencing the process of solving the problem, it is worthwhile identifying who your key stakeholders are and talking to them about the issue,” Ross recommends. “Who could be affected by the issue? What is the problem – and why? How are people affected?”

He argues that if leaders treat people with dignity, respecting the worth of their insights, they are more likely to successfully solve problems.

Best High-Yield Savings Accounts Of 2024

Best 5% interest savings accounts of 2024, 2. unfocus the mind.

“To solve problems, we need to commit to making time to face a problem in its full complexity, which also requires that we take back control of our thinking,” says Chris Griffiths, an expert on creativity and innovative thinking skills, founder and CEO of software provider OpenGenius, and co-author of The Focus Fix: Finding Clarity, Creativity and Resilience in an Overwhelming World .

To do this, it’s necessary to harness the power of the unfocused mind, according to Griffiths. “It might sound oxymoronic, but just like our devices, our brain needs time to recharge,” he says. “ A plethora of research has shown that daydreaming allows us to make creative connections and see abstract solutions that are not obvious when we’re engaged in direct work.”

To make use of the unfocused mind in problem solving, you must begin by getting to know the problem from all angles. “At this stage, don’t worry about actually solving the problem,” says Griffiths. “You’re simply giving your subconscious mind the information it needs to get creative with when you zone out. From here, pick a monotonous or rhythmic activity that will help you to activate the daydreaming state – that might be a walk, some doodling, or even some chores.”

Do this regularly, argues Griffiths, and you’ll soon find that flashes of inspiration and novel solutions naturally present themselves while you’re ostensibly thinking of other things. He says: “By allowing you to access the fullest creative potential of your own brain, daydreaming acts as a skeleton key for a wide range of problems.”

3. Be comfortable making judgment calls

“Admitting to not knowing the future takes courage,” says Professor Stephen Wyatt, founder and lead consultant at consultancy Corporate Rebirth and author of Antidote to the Crisis of Leadership: Opportunity in Complexity . “Leaders are worried our teams won’t respect us and our boards will lose faith in us, but what doesn’t work is drawing up plans and forecasts and holding yourself or others rigidly to them.”

Wyatt advises leaders to heighten their situational awareness – to look broadly, integrate more perspectives and be able to connect the dots. “We need to be comfortable in making judgment calls as the future is unknown,” he says. “There is no data on it. But equally, very few initiatives cannot be adjusted, refined or reviewed while in motion.”

Leaders need to stay vigilant, according to Wyatt, create the capacity of the enterprise to adapt and maintain the support of stakeholders. “The concept of the infallible leader needs to be updated,” he concludes.

4. Be prepared to fail and learn

“Organisations, and arguably society more widely, are obsessed with problems and the notion of problems,” says Steve Hearsum, founder of organizational change consultancy Edge + Stretch and author of No Silver Bullet: Bursting the Bubble of the Organisational Quick Fix .

Hearsum argues that this tendency is complicated by the myth of fixability, namely the idea that all problems, however complex, have a solution. “Our need for certainty, to minimize and dampen the anxiety of ‘not knowing,’ leads us to oversimplify and ignore or filter out anything that challenges the idea that there is a solution,” he says.

Leaders need to shift their mindset to cultivate their comfort with not knowing and couple that with being OK with being wrong, sometimes, notes Hearsum. He adds: “That means developing reflexivity to understand your own beliefs and judgments, and what influences these, asking questions and experimenting.”

5. Unleash the power of empathy

Leaders must be able to communicate problems in order to find solutions to them. But they should avoid bombarding their teams with complex, technical details since these can overwhelm their people’s cognitive load, says Dr Jessica Barker MBE , author of Hacked: The Secrets Behind Cyber Attacks .

Instead, she recommends that leaders frame their messages in ways that cut through jargon and ensure that their advice is relevant, accessible and actionable. “An essential leadership skill for this is empathy,” Barker explains. “When you’re trying to build a positive culture, it is crucial to understand why people are not practicing the behaviors you want rather than trying to force that behavioral change with fear, uncertainty and doubt.”

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To help the economy, an Alabama county is betting on home-based child care

MEETING CHILD CARE NEEDS IN TUSCALOOSA

Lakethia Clark stands in her son's bedroom in her home in Tuscaloosa, Alabama. Clark will soon open her own home-based child care business. Claire Harbage/NPR hide caption

TUSCALOOSA, Ala. — Lakethia Clark has spent most of her adult life taking care of children, first at a church day care and later in a child care center. She loves children, but after 15 years, she was getting paid too little and looking after too many kids.

So like many child care workers, she quit. Clark became a housekeeper at a hospital, which paid better, but she missed her old profession.

"It kind of broke my heart," she says. "I miss my babies."

She had long thought about starting her own child care business but always found the licensing process and the startup costs daunting.

Today, however, Clark is getting ready to return to a line of work she loves — on her own terms. She's starting her own small business, caring for as many as six children. And she's doing it right in her own home.

For months, she has been working hard to turn her three-bedroom ranch house and her tree-lined backyard into a children's wonderland.

How have rising prices affected you? What questions do you have about inflation?

Clark is among the first participants in a program called 3by3. It's the brainchild of Holly Glasgow, a longtime child development educator at Shelton State Community College.

Her vision for the program: dramatically growing the number of small, home-based child care businesses, formally known as family child care homes. It's a program that could prove important for Alabama, by providing more child care options to help boost the state's workforce.

Home-based child care is not new, but Glasgow's exhaustive efforts to provide wrap-around training and guidance, elevating the often invisible child care workforce, have drawn attention and even visitors from states including Colorado and California.

To go to work, parents need child care

The initiative is one of many being piloted around the U.S. as federal and state governments, along with the business community, have come to recognize child care as essential to economic growth.

Clark has a collection of books in her son's room and will add more once she begins caring for kids out of her home. Claire Harbage/NPR hide caption

It's an especially pressing issue in Alabama, a state with one of the country's lowest labor force participation rates.

To get her program going, Glasgow got creative, "blending and braiding" funding from a number of sources, including the federal Workforce Innovation and Opportunity Act, which aims to help job seekers move into high-quality careers.

Other funders include the Chamber of Commerce of West Alabama as well as the Women's Foundation of Alabama, a philanthropic organization focused on accelerating economic opportunity for women.

"It's an interesting narrative shift, that child care isn't just on the mom," says Lillian Brand, vice president of external affairs at the Women’s Foundation of Alabama. "It's really on the entire economy in order to keep us all moving forward."

An Alabama manufacturer shows how to retain working moms: child care

Child care needs are severely unmet.

The need for more child care is evident in the numbers. Glasgow estimates Tuscaloosa County has over 12,000 children under age 5 but just over 3,000 child care spots.

Some of those spots are at the community-based pre-K center on the campus of Shelton State, which Glasgow oversees.

While a couple of kids paint pictures at an arts and crafts station, others check in on caterpillars on their journey of metamorphosis. Across the room, more children take turns playing customer and shopkeeper in a make-believe flower shop.

"Happy, healthy, safe is our goal," says Glasgow.

Holly Glasgow talks to children in the pre-K program she directs on the campus of Shelton State Community College in Tuscaloosa. Given the high cost of building child care centers like this one, Glasgow is focused on developing another model of child care — family child care homes. Claire Harbage/NPR hide caption

She would love for every young child in Alabama to have a spot at a center like this one. But she knows that's impossible. The main impediment is cost.

When an Alabama nonprofit foundation approached her with a fundraising proposal and asked how many child care centers could be built with $10 million, she told them: less than one.

"They were floored," she says.

So instead, Glasgow is focusing her efforts on family child care homes. She believes these small businesses can achieve the same level of quality as larger centers but at a much lower cost and in a way that may better suit Tuscaloosa's working parents.

A diversity of child care needs

Among the top employers in this region are hospitals and manufacturers, including Mercedes-Benz and the food company Smucker's, which has been recruiting workers for a brand-new plant not far away.

Glasgow points out that these employers need workers around the clock, but few child care providers offer care in the evenings, on weekends and overnight.

$400-a-month pandemic bonuses were life-changing for child care workers. That's over

Family child care homes, which are typically run by women who care for their own children and a handful of others, can be more flexible with their hours. They can also provide a more homelike environment, which many parents who work overnight shifts prefer, Glasgow says.

"Your kids still go to bed in a bedroom," she says. "They still have breakfast at the kitchen table."

"Can't wait"

The first cohort of 3by3 participants wrapped up their coursework this spring. This included five intensive weeks of classes on child development, health and safety, and how to run a small business.

On top of that, there are the home visits.

Glasgow visits the home of Lakethia Clark to help her reconfigure her living quarters into play areas for children. Claire Harbage/NPR hide caption

On a recent sunny morning, Glasgow headed to Clark's home on a corner lot to help her reimagine her living quarters as play and learning spaces and to ensure that everything is up to code.

Glasgow works quickly, whipping out a laser measuring tool as she sketches a floor plan.

"Miss Holly ... that lady is awesome," says a smiling Clark.

Clark lays out her vision for her formal living room: one sofa moved to the side, another one taken out to make room for children's tables, a couple of carpets, and shelves for toys and books.

"I can't wait to put stuff on the walls," she says.

Clark jumped at the opportunity to open her own home-based child care business. She expects to receive her license sometime this summer. Claire Harbage/NPR hide caption

Glasgow has $5,000 to $10,000 to spend on furniture and supplies for each new family child care home. Paths for Success, the nonprofit foundation that originally approached Glasgow about building child care centers, provides the health and safety materials, including fire extinguishers, hardwired smoke detectors, flashlights, and cribs and cots.

It's the assist Clark needed to get her business off the ground. Before now, she says, her finances always got in the way.

Although she had worked in child care for years, Clark's hourly wage never topped $13.50 an hour. For a while, she worked a second job at Taco Casa to save enough money for the down payment on her house.

Now, she is looking forward to becoming a small-business owner. There are tax benefits, including being able to deduct part of her mortgage as a business expense. She may qualify for a new Alabama tax credit for child care providers.

Best of all, she'll get to be her own boss.

Glasgow works with Clark to reimagine Clark's living room as a play and learning space. Claire Harbage/NPR hide caption

Looking out over her spacious, shady backyard, she imagines children covering her wooden fence with chalk drawings, something she loved watching kids do at her last child care job.

"The owners of the day care used to get so mad," she says, laughing. "It's just artwork! It's going to disappear."

Already, parents she knew from her old job have been calling her, hoping to send her their younger kids.

"They know what type of worker I was," she says. "They know I always put the kids first."

With all her paperwork submitted, Clark is hoping to get final clearance this summer, in time to welcome kids into her home.

• women in the workforce
• home-based care

Anthropic CEO says we need to think bigger than a universal basic income if we want to solve the AI inequality problem

• Some fear that rapid advances in AI may concentrate power and wealth among a small elite.
• Anthropic CEO Dario Amodei says a universal basic income may not sufficiently address such a shift.
• He says there needs to be a broader economic reorganization.

The rapid advances in AI could consolidate power and wealth in the hands of a small few , which is why many in the tech industry have called for a universal basic income.

But some AI leaders say even UBI, a recurring cash payment to those in a given population regardless of their wealth or employment status, wouldn't be enough.

"I certainly think that's better than nothing," Anthropic CEO Dario Amodei told Time. "But I would much prefer a world in which everyone can contribute. It would be kind of dystopian if there are these few people that can make trillions of dollars, and then the government hands it all out to the unwashed masses."

Amodei, a former OpenAI employee, launched Anthropic in 2021 with his sister, Daniela, and five other OpenAI colleagues. They believed AI would have a dramatic impact on the world and wanted to build a company that would ensure it was aligned with human values. Amodei described the company to Time as one focused on "public benefit."

Many in the tech industry have expressed support for universal basic income to mitigate the economic impact of AI. The idea is that it would act as a safety net for people whose jobs have been threatened by the technology.

But Amodei suggests that AI will alter society in such a fundamental way that we need to design a more comprehensive solution. "I think in the long run, we're really going to need to think about how do we organize the economy and how humans think about their lives?" He doesn't have the answer, he said, in part because he believes it needs to be a "conversation among humanity."

Amodei isn't the only one thinking beyond universal basic income. OpenAI CEO Sam Altman, while a vocal proponent of it, has also proposed the idea of a " universal basic compute ." The idea is that as large language models advance, owning a slice of one will be more valuable than money.

Watch: Why "deployment of AI is top of mind for everybody," according to IBM's Jonathan Adashek

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