Structured problem-solving is a systematic approach that breaks problem-solving down into discrete steps, such as identifying key stakeholders, framing the problem, generating potential solutions, evaluating and selecting the best solution, and implementing that solution.

To deal with emerging organisational challenges and opportunities, strategic thinkers must lead problem-solving processes that provide structure while still encouraging creativity.

What are problems and decisions?

For structured problem-solving to be effective, it’s essential to understand the terms ‘problem’ and ‘decision-making’. The word ‘problem’ often has negative connotations. Yet whether facing down threats or opportunities, the best approach is essentially the same. ‘Decision-making’, meanwhile, is choosing a solution to your problem from a set of mutually exclusive options by applying evaluative criteria and making trade-offs. Structured problem-solving is the process of developing solutions that avoid value destruction and, in fact, create value.

‘Problem framing’

Choosing where to go for lunch is a recurring, low- consequence problem. The high-stakes problems facing your organisation, however, are another matter. These are often novel and anything but simple. This combination of novelty and complexity powerfully influences organisational problem- solving processes and how you should lead them.

By definition, you have dealt with routine problems many times in the past. When problems are novel, however, you cannot reach for the standard playbook. In these circumstances, defining it is an essential early phase of the process. I use the term ‘problem framing’.

Often, these problems exhibit a combination of the CUVA factors of complexity, uncertainty, volatility and ambiguity. These are:

• Complexity means your organisation’s problems arise in systems with many elements and interdependencies. This makes it hard to figure out cause–effect relationships, predict what will happen and identify leverage points.

• Uncertainty means you need to work with probabilities and risk assessments when determining solutions and making trade- offs. This is especially challenging when stakeholders have different estimates of probabilities and risk appetites. It often helps to agree a basis for evaluating possible solutions.

• Volatility means that the seriousness of an existing problem may change suddenly, becoming more or less critical. And even more important issues can arise with little warning. Your organisation must be able to sense changes and rapidly reassess priorities.

• Ambiguity means there isn’t consensus among stakeholders about what ‘the problem’ is, or perhaps even whether there is one. When there is ambiguity, you must negotiate among potentially competing perspectives.