Power skills | Problem solving
Improve your problem-solving skills
Problem-solving sits at the heart of financial work, combining analytical skills with practical implementation, so developing your ability will help you advance in your studies and career
Words Sophie Cross
Opportunities we grasp in life often don’t come down to our ability but what we believe we are capable of or deserve. Feeling uncertain about yourself can be a major impediment to your studies and career but, as with anything, you can improve your self-confidence. There are ways to address areas of concern and tools to help build belief and assurance.
Problem-solving in finance
Finance professionals and students will face questions that need answering constantly in areas such as budgeting, financial reporting, discrepancies, regulatory compliance, market assessments and cost analysis. Often, solutions can be found by analysing the correct data and there’s a sense of satisfaction that comes with this.
However, the workplace and life will also throw up many issues to be tackled that numbers might not be able to help with, such as navigating team conflict, technical faults, streamlining processes, customer complaints and project delays.
We need to deal with all sorts of different things that come up unexpectedly every day. If you can look at these as puzzles to be solved instead of problems, whether that be by analysing quantitative data or working out the best options available, all aspects of your life will improve.
The right mindset
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Adaptability: You can deal with the unexpected, analysing situations as they change and developing up-to-date solutions.
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Decisiveness: You can consider the information and options available to you and make informed decisions in a timely fashion.
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Critical thinking: You can break down complex problems into logical and manageable parts.
4
Creativity: You can come up with innovative solutions and unconventional ideas and aren’t afraid to try new things.
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Resilience: You bounce back quickly and view failures as opportunities for learning and growth.
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Techniques and strategies
It might seem that problem-solving comes to some people more naturally, but it’s a skill that can be developed through learning strategies, structured approaches and practice over time.
Have this toolkit of problem-solving techniques ready to try out in different situations.
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Three practical problem-solving strategies for finance
Decide which strategy would be best to deal with the problem you are facing based on the information you can access.
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Data-driven problem-solving
This involves first gathering all of the relevant data, analysing historical patterns, using statistical methods, testing hypotheses and making evidence-based decisions.
2
Break down complex problems
If you don’t know where to start with a problem then you probably haven’t made it small enough. Begin by identifying the core issue and divide the problem into manageable components. Make a plan for each part and decide which order they should be prioritised in.
3
Collaborative problem-solving
Problem-solving can benefit from multiple people with diverse perspectives sharing their knowledge and opinions. Don’t be afraid to ask for help. Encourage everyone’s input and be an active listener.
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Five important things to remember
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You can only work with the information you have available to you.
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Don’t get caught up in analysis paralysis or gathering endless data. Set clear parameters for when you have enough data to make a decision.
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Don’t just focus on short-term solutions. Think about the long term and what caused the problem in the first place.
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Decide on an outcome that will measure your problem-solving success.
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Use technology where it will be helpful but oversee it with your own judgment.
Whenever you are faced with a problem, think about how it will allow you to try out these strategies and techniques and improve your problem-solving. It’s a skill that will be continuously developed over a lifetime. Look to surround yourself with other people and a workplace culture that supports and encourages problem-solving, collaboration and innovation.
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Improve your problem-solving skills
Problem-solving sits at the heart of financial work, combining analytical skills with practical implementation, so developing your ability will help you advance in your studies and career
Words Sophie Cross