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Making decisions and solving problems are two key areas in life, whether you are at home or at work. Whatever you’re doing, and wherever you are, you are faced with countless decisions and problems, both small and large, every day.

Many decisions and problems are so small that we may not even notice them. Even small decisions, however, can be overwhelming to some people. They may come to a halt as they consider their dilemma and try to decide what to do.

Small and Large Decisions

In your day-to-day life you're likely to encounter numerous 'small decisions', including, for example:

Tea or coffee?

What shall I have in my sandwich? Or should I have a salad instead today?

What shall I wear today?

Larger decisions may occur less frequently but may include:

Should we repaint the kitchen? If so, what colour?

Should we relocate?

Should I propose to my partner? Do I really want to spend the rest of my life with him/her?

These decisions, and others like them, may take considerable time and effort to make.

The relationship between decision-making and problem-solving is complex. Decision-making is perhaps best thought of as a key part of problem-solving: one part of the overall process.

Our approach at Skills You Need is to set out a framework to help guide you through the decision-making process. You won’t always need to use the whole framework, or even use it at all, but you may find it useful if you are a bit ‘stuck’ and need something to help you make a difficult decision.

Decision Making

Effective Decision-Making

This page provides information about ways of making a decision, including basing it on logic or emotion (‘gut feeling’). It also explains what can stop you making an effective decision, including too much or too little information, and not really caring about the outcome.

A Decision-Making Framework

This page sets out one possible framework for decision-making.

The framework described is quite extensive, and may seem quite formal. But it is also a helpful process to run through in a briefer form, for smaller problems, as it will help you to make sure that you really do have all the information that you need.

Problem Solving

Introduction to Problem-Solving

This page provides a general introduction to the idea of problem-solving. It explores the idea of goals (things that you want to achieve) and barriers (things that may prevent you from achieving your goals), and explains the problem-solving process at a broad level.

The first stage in solving any problem is to identify it, and then break it down into its component parts. Even the biggest, most intractable-seeming problems, can become much more manageable if they are broken down into smaller parts. This page provides some advice about techniques you can use to do so.

Sometimes, the possible options to address your problem are obvious. At other times, you may need to involve others, or think more laterally to find alternatives. This page explains some principles, and some tools and techniques to help you do so.

Having generated solutions, you need to decide which one to take, which is where decision-making meets problem-solving. But once decided, there is another step: to deliver on your decision, and then see if your chosen solution works. This page helps you through this process.

‘Social’ problems are those that we encounter in everyday life, including money trouble, problems with other people, health problems and crime. These problems, like any others, are best solved using a framework to identify the problem, work out the options for addressing it, and then deciding which option to use.

This page provides more information about the key skills needed for practical problem-solving in real life.

Further Reading from Skills You Need

The Skills You Need Guide to Interpersonal Skills eBooks.

The Skills You Need Guide to Interpersonal Skills

Develop your interpersonal skills with our series of eBooks. Learn about and improve your communication skills, tackle conflict resolution, mediate in difficult situations, and develop your emotional intelligence.

Guiding you through the key skills needed in life

As always at Skills You Need, our approach to these key skills is to provide practical ways to manage the process, and to develop your skills.

Neither problem-solving nor decision-making is an intrinsically difficult process and we hope you will find our pages useful in developing your skills.

Start with: Decision Making Problem Solving

See also: Improving Communication Interpersonal Communication Skills Building Confidence

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Overview of the Problem-Solving Mental Process

Kendra Cherry, MS, is a psychosocial rehabilitation specialist, psychology educator, and author of the "Everything Psychology Book."

what is problem solving & decision making

Rachel Goldman, PhD FTOS, is a licensed psychologist, clinical assistant professor, speaker, wellness expert specializing in eating behaviors, stress management, and health behavior change.

what is problem solving & decision making

  • Identify the Problem
  • Define the Problem
  • Form a Strategy
  • Organize Information
  • Allocate Resources
  • Monitor Progress
  • Evaluate the Results

Frequently Asked Questions

Problem-solving is a mental process that involves discovering, analyzing, and solving problems. The ultimate goal of problem-solving is to overcome obstacles and find a solution that best resolves the issue.

The best strategy for solving a problem depends largely on the unique situation. In some cases, people are better off learning everything they can about the issue and then using factual knowledge to come up with a solution. In other instances, creativity and insight are the best options.

It is not necessary to follow problem-solving steps sequentially, It is common to skip steps or even go back through steps multiple times until the desired solution is reached.

In order to correctly solve a problem, it is often important to follow a series of steps. Researchers sometimes refer to this as the problem-solving cycle. While this cycle is portrayed sequentially, people rarely follow a rigid series of steps to find a solution.

The following steps include developing strategies and organizing knowledge.

1. Identifying the Problem

While it may seem like an obvious step, identifying the problem is not always as simple as it sounds. In some cases, people might mistakenly identify the wrong source of a problem, which will make attempts to solve it inefficient or even useless.

Some strategies that you might use to figure out the source of a problem include :

  • Asking questions about the problem
  • Breaking the problem down into smaller pieces
  • Looking at the problem from different perspectives
  • Conducting research to figure out what relationships exist between different variables

2. Defining the Problem

After the problem has been identified, it is important to fully define the problem so that it can be solved. You can define a problem by operationally defining each aspect of the problem and setting goals for what aspects of the problem you will address

At this point, you should focus on figuring out which aspects of the problems are facts and which are opinions. State the problem clearly and identify the scope of the solution.

3. Forming a Strategy

After the problem has been identified, it is time to start brainstorming potential solutions. This step usually involves generating as many ideas as possible without judging their quality. Once several possibilities have been generated, they can be evaluated and narrowed down.

The next step is to develop a strategy to solve the problem. The approach used will vary depending upon the situation and the individual's unique preferences. Common problem-solving strategies include heuristics and algorithms.

  • Heuristics are mental shortcuts that are often based on solutions that have worked in the past. They can work well if the problem is similar to something you have encountered before and are often the best choice if you need a fast solution.
  • Algorithms are step-by-step strategies that are guaranteed to produce a correct result. While this approach is great for accuracy, it can also consume time and resources.

Heuristics are often best used when time is of the essence, while algorithms are a better choice when a decision needs to be as accurate as possible.

4. Organizing Information

Before coming up with a solution, you need to first organize the available information. What do you know about the problem? What do you not know? The more information that is available the better prepared you will be to come up with an accurate solution.

When approaching a problem, it is important to make sure that you have all the data you need. Making a decision without adequate information can lead to biased or inaccurate results.

5. Allocating Resources

Of course, we don't always have unlimited money, time, and other resources to solve a problem. Before you begin to solve a problem, you need to determine how high priority it is.

If it is an important problem, it is probably worth allocating more resources to solving it. If, however, it is a fairly unimportant problem, then you do not want to spend too much of your available resources on coming up with a solution.

At this stage, it is important to consider all of the factors that might affect the problem at hand. This includes looking at the available resources, deadlines that need to be met, and any possible risks involved in each solution. After careful evaluation, a decision can be made about which solution to pursue.

6. Monitoring Progress

After selecting a problem-solving strategy, it is time to put the plan into action and see if it works. This step might involve trying out different solutions to see which one is the most effective.

It is also important to monitor the situation after implementing a solution to ensure that the problem has been solved and that no new problems have arisen as a result of the proposed solution.

Effective problem-solvers tend to monitor their progress as they work towards a solution. If they are not making good progress toward reaching their goal, they will reevaluate their approach or look for new strategies .

7. Evaluating the Results

After a solution has been reached, it is important to evaluate the results to determine if it is the best possible solution to the problem. This evaluation might be immediate, such as checking the results of a math problem to ensure the answer is correct, or it can be delayed, such as evaluating the success of a therapy program after several months of treatment.

Once a problem has been solved, it is important to take some time to reflect on the process that was used and evaluate the results. This will help you to improve your problem-solving skills and become more efficient at solving future problems.

A Word From Verywell​

It is important to remember that there are many different problem-solving processes with different steps, and this is just one example. Problem-solving in real-world situations requires a great deal of resourcefulness, flexibility, resilience, and continuous interaction with the environment.

Get Advice From The Verywell Mind Podcast

Hosted by therapist Amy Morin, LCSW, this episode of The Verywell Mind Podcast shares how you can stop dwelling in a negative mindset.

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You can become a better problem solving by:

  • Practicing brainstorming and coming up with multiple potential solutions to problems
  • Being open-minded and considering all possible options before making a decision
  • Breaking down problems into smaller, more manageable pieces
  • Asking for help when needed
  • Researching different problem-solving techniques and trying out new ones
  • Learning from mistakes and using them as opportunities to grow

It's important to communicate openly and honestly with your partner about what's going on. Try to see things from their perspective as well as your own. Work together to find a resolution that works for both of you. Be willing to compromise and accept that there may not be a perfect solution.

Take breaks if things are getting too heated, and come back to the problem when you feel calm and collected. Don't try to fix every problem on your own—consider asking a therapist or counselor for help and insight.

If you've tried everything and there doesn't seem to be a way to fix the problem, you may have to learn to accept it. This can be difficult, but try to focus on the positive aspects of your life and remember that every situation is temporary. Don't dwell on what's going wrong—instead, think about what's going right. Find support by talking to friends or family. Seek professional help if you're having trouble coping.

Davidson JE, Sternberg RJ, editors.  The Psychology of Problem Solving .  Cambridge University Press; 2003. doi:10.1017/CBO9780511615771

Sarathy V. Real world problem-solving .  Front Hum Neurosci . 2018;12:261. Published 2018 Jun 26. doi:10.3389/fnhum.2018.00261

By Kendra Cherry, MSEd Kendra Cherry, MS, is a psychosocial rehabilitation specialist, psychology educator, and author of the "Everything Psychology Book."

Decision Making vs. Problem Solving

What's the difference.

Decision making and problem solving are two closely related concepts that are essential in both personal and professional settings. While decision making refers to the process of selecting the best course of action among various alternatives, problem solving involves identifying and resolving issues or obstacles that hinder progress towards a desired outcome. Decision making often involves evaluating different options based on their potential outcomes and consequences, while problem solving requires analyzing the root causes of a problem and developing effective strategies to overcome it. Both skills require critical thinking, creativity, and the ability to weigh pros and cons. Ultimately, decision making and problem solving are interconnected and complementary processes that enable individuals to navigate complex situations and achieve desired goals.

AttributeDecision MakingProblem Solving
DefinitionThe process of selecting the best course of action among available alternatives.The process of finding solutions to complex or difficult issues or challenges.
GoalTo make a choice that leads to a desired outcome or solution.To find a solution or resolution to a specific problem or challenge.
ApproachBased on evaluating options and making a rational decision.Based on analyzing the problem, identifying possible solutions, and selecting the most appropriate one.
ProcessIncludes gathering information, evaluating alternatives, and making a decision.Includes problem identification, analysis, generating solutions, and implementing the chosen solution.
FocusPrimarily on making choices among available alternatives.Primarily on finding solutions to specific problems or challenges.
TimeframeCan be short-term or long-term decision making.Can be short-term or long-term problem solving.
ComplexityCan involve complex decision-making models and frameworks.Can involve complex problem-solving techniques and methodologies.
OutcomeResults in a decision or choice being made.Results in a solution or resolution to the problem.

Further Detail

Introduction.

Decision making and problem solving are two essential cognitive processes that individuals and organizations engage in to navigate through various challenges and achieve desired outcomes. While they are distinct processes, decision making and problem solving share several attributes and are often interconnected. In this article, we will explore the similarities and differences between decision making and problem solving, highlighting their key attributes and how they contribute to effective problem-solving and decision-making processes.

Definition and Purpose

Decision making involves selecting a course of action from multiple alternatives based on available information, preferences, and goals. It is a cognitive process that individuals use to make choices and reach conclusions. On the other hand, problem solving refers to the process of finding solutions to specific issues or challenges. It involves identifying, analyzing, and resolving problems to achieve desired outcomes.

Both decision making and problem solving share the purpose of achieving a desired outcome or resolving a particular situation. They require individuals to think critically, evaluate options, and consider potential consequences. While decision making focuses on choosing the best course of action, problem solving emphasizes finding effective solutions to specific problems or challenges.

Attributes of Decision Making

Decision making involves several key attributes that contribute to its effectiveness:

  • Rationality: Decision making is often based on rational thinking, where individuals evaluate available information, weigh pros and cons, and make logical choices.
  • Subjectivity: Decision making is influenced by personal preferences, values, and biases. Individuals may prioritize certain factors or options based on their subjective judgment.
  • Uncertainty: Many decisions are made under conditions of uncertainty, where individuals lack complete information or face unpredictable outcomes. Decision makers must assess risks and make informed judgments.
  • Time Constraints: Decision making often occurs within time constraints, requiring individuals to make choices efficiently and effectively.
  • Trade-offs: Decision making involves considering trade-offs between different options, as individuals must prioritize certain factors or outcomes over others.

Attributes of Problem Solving

Problem solving also encompasses several key attributes that contribute to its effectiveness:

  • Analytical Thinking: Problem solving requires individuals to analyze and break down complex problems into smaller components, facilitating a deeper understanding of the issue at hand.
  • Creativity: Effective problem solving often involves thinking outside the box and generating innovative solutions. It requires individuals to explore alternative perspectives and consider unconventional approaches.
  • Collaboration: Problem solving can benefit from collaboration and teamwork, as diverse perspectives and expertise can contribute to more comprehensive and effective solutions.
  • Iterative Process: Problem solving is often an iterative process, where individuals continuously evaluate and refine their solutions based on feedback and new information.
  • Implementation: Problem solving is not complete without implementing the chosen solution. Individuals must take action and monitor the outcomes to ensure the problem is effectively resolved.

Interconnection and Overlap

While decision making and problem solving are distinct processes, they are interconnected and often overlap. Decision making is frequently a part of the problem-solving process, as individuals must make choices and select the most appropriate solution to address a specific problem. Similarly, problem solving is inherent in decision making, as individuals must identify and analyze problems or challenges before making informed choices.

Moreover, both decision making and problem solving require critical thinking skills, the ability to evaluate information, and the consideration of potential consequences. They both involve a systematic approach to gather and analyze relevant data, explore alternatives, and assess the potential risks and benefits of different options.

Decision making and problem solving are fundamental cognitive processes that individuals and organizations engage in to navigate through challenges and achieve desired outcomes. While decision making focuses on selecting the best course of action, problem solving emphasizes finding effective solutions to specific problems or challenges. Both processes share attributes such as rationality, subjectivity, uncertainty, time constraints, and trade-offs (in decision making), as well as analytical thinking, creativity, collaboration, iterative process, and implementation (in problem solving).

Understanding the similarities and differences between decision making and problem solving can enhance our ability to approach complex situations effectively. By leveraging the attributes of both processes, individuals and organizations can make informed choices, address challenges, and achieve desired outcomes.

Comparisons may contain inaccurate information about people, places, or facts. Please report any issues.

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Making the Difference: Problem Solving vs Decision Making

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Do you ever find yourself stuck between a rock and hard place, unable to decide what the best course of action is?

I have. Whether it’s what desk to put in our new conservatory space (and I’ll tell you what we ended up deciding later), or who to invite to meetings, or managing to order everyone else’s food and then getting so overwhelmed with having made decisions all day for all the people that I couldn’t choose anything for myself.

I left the café with nothing for me and ended up with a couple of slices of peanut butter toast at home.

Making decisions can be difficult for even the most experienced project managers. But before making any decision, it’s important to understand the difference between problem solving and decision making.

Ready to get into it?

Problem solving involves diagnosing issues that arise during projects while decision making requires taking appropriate steps based on those diagnoses. While they may appear similar at first glance, there are key differences in how each process should be approached – understanding these differences will help you make more informed decisions!

Let’s explore both processes as well as their similarities and differences.

What is problem solving?

You’ve been solving problems since you were a baby: how to stand up, how to get your socks off, how to get your parents to bring you your favorite sippy cup.

As an adult, we solve problems every day at work and at home.

So it probably sounds a bit odd to want to define problem solving before we go any further. Surely we all know what we are talking about as we do it all the time?

Humor me. Problem solving is the process of identifying and analyzing a problem, generating potential solutions, and selecting the best solution to address the issue. It involves breaking down complex problems into smaller components and then finding ways to solve them.

The problem solving process

If you think that description sounds linear, then you’d be right. Problem solving fits neatly into a process, one that we don’t even know we’re following most of the time.

The problem solving process typically consists of four steps:

  • Identify the problem
  • Generate possible solutions
  • Evaluate each option
  • Select an appropriate course of action.

That does make it sound easy. Wicked problems need a slightly different approach (PMI has a problem solving training course that is brilliant and will help with that).

But for now, let’s stick with a high-level approach that works for most problems.

1. Identify the problem

First, it’s important to understand what caused the issue in order to determine how best to resolve it.

You’d be surprised at how many managers don’t bother to find the root cause of the problem to truly understand it. Use techniques like the 5 Whys or an Ishikawa diagram to dig down into what the problem actually is.

2. Generate possible solutions

Brainstorming is one way to come up with different ideas for potential solutions. You could also interview experts, review lessons learned or innovative solutions from previous projects, research what the rest of your industry is doing or consult customers on what they’d like to see. There are no silly ideas at this point!

Choose the creative approach that gets you a range of options to review.

Read next: How to improve problem solving with lessons learned.

3. Evaluate each option

Once you have several options to consider, you can evaluate each one based on its effectiveness and cost before deciding which one is most suitable for your situation.

Use pairwise prioritisation, multi-criteria decision making or analytical hierarchy process (AHP) to help with the evaluation.

analytical hierarchy process

4. Select an appropriate course of action

Now you’ve got all the options for solving your problem, you can actually solve it by choosing a course of action that will sort it out. This is where decision making comes in. in this step you make the decision.

Finally, implement your chosen solution and monitor its progress over time so that any necessary adjustments can be made as needed.

Benefits of problem solving skills

There are many benefits associated with having effective problem solving skills.

These include improved decision making abilities (more on that in a minute), increased creativity, better communication skills, greater confidence when faced with challenging situations, enhanced ability to think critically, more efficient use of resources, improved relationships between colleagues or team members due to shared understanding of goals and increased productivity levels due to fewer mistakes being made during projects or tasks.

(Breathe. That was a long sentence, sorry.)

All these advantages make problem solving an invaluable skill in both personal life and professional life scenarios.

What is decision making?

Basically, decision making is the process of selecting a course of action from a number of alternatives. It involves gathering information, weighing options, and choosing the best option for achieving a desired outcome.

But how is that different to problem solving?

Decision making is the process of doing Step 4 of the problem solving process. It’s the choice making, option selection, conclusion of the analysis and thinking.

It’s decisive (duh), purposeful, specific. It removes the ambiguity of the ‘what do we do?’ and helps the team move towards the ‘OK, how do we do that?’

It brings action to a situation.

The decision making process

There is a simple method for decision making too, although the actual decision itself might be tough to make.

  • Identify that a decision is required
  • Ensure you have the data to make the decision
  • Make the decision
  • Tell whoever needs to implement the decision

1. Identify that a decision is required

The decision-making process typically begins with identifying what decision needs to be made. Are you making the right decision, or is there something else, deeper, different that is really what’s required?

In this step you also want to identify who is making the decision. That could be your project sponsor, a panel, you by yourself, a committee or whoever. Getting this step clear saves headaches later.

2. Ensure you have the data to make the decision

Do you have all the info you need to make the decision? If not, get it.

When decisions are made quickly but thoughtfully, they can save time and resources while still producing quality results.

Major decisions need more time spent on this step to make sure you understand all the variables.

decision chart example

3. Make the decision

After considering all potential solutions, it’s time to make a choice based on what will yield the best results for everyone involved.

This is the hard part: make the decision! The person or people responsible for this should weigh up the data and use their professional judgement to choose the right course of action. Decision trees can be useful here to avoid unconscious bias (or conscious bias!).

Obviously this is harder for complex decisions. What vendor to choose for a 3-year outsourcing arrangement is harder to decide than what venue to book for a team away day.

4. Tell whoever needs to implement the decision

Great – you’ve made the call and know what to do, but does the rest of the team? Don’t keep the decision to yourself!

Make sure whoever needs to know the next steps is aware that the decision has been made so they can implement it and take the right action.

Having confidence in decisions leads to greater trust between team members and better collaboration overall, which can lead to improved project outcomes over time. Well-made decisions often create opportunities for growth within teams by allowing them to learn from their mistakes as well as their successes along the way.

Similarities between problem solving and decision making

Problem solving and decision making sound very similar, right?

Well, that is true. Both processes involve gathering information, analyzing it, and coming up with solutions or courses of action. They both require critical thinking skills to identify potential solutions or options that are most likely to be successful.

The processes use a similar flow

Both processes involve identifying a problem or issue, researching possible solutions, evaluating those solutions based on criteria such as cost-effectiveness or feasibility, selecting an option from among the available choices, implementing the chosen solution, and you’d also want to monitor its effectiveness over time.

The process can be iterative if necessary; if one solution does not work out as expected then another may need to be tried until a satisfactory outcome is achieved.

They both produce a satisfactory solution

Problem solving and decision making usually lead to some kind of action being taken in order to address a given issue or situation. Problem solving often involves finding creative solutions for complex problems, while decision making typically entails selecting a course of action from several possibilities after carefully evaluating each option’s advantages and disadvantages.

But ultimately, the goal is for something positive (or at least neutral) to come out of the helpful process so that whatever challenge was initially presented can be effectively addressed.

Despite being so similar you could pretty much interchange them in some circumstances, there are some differences.

problem solving vs decision making

Differences between problem solving and decision making

Although they have similarities in terms of the process used to come up with a solution, their goals differ significantly.

Process goals are different

The goal of problem solving is to find a solution to an existing issue. It involves identifying the cause of a problem and then finding ways to address it. Problem solving often requires input from multiple stakeholders who can provide different perspectives on how best to solve the issue at hand.

On the other hand, decision making focuses on choosing the best option from multiple alternatives. This could include selecting between competing products or services or deciding which strategy will be most effective for achieving certain objectives.

In other words: decision making doesn’t necessarily mean there is a problem. We make decisions every day about small things and big things, but they aren’t all problems that need the creative step of solutioning.

Sometimes a decision just needs to be taken and the options are clearly known.

They require different stakeholders

Another key difference between problem solving and decision making is that while problem solving typically requires input from multiple stakeholders, decision making is usually done by one individual or group who has access to all relevant information needed for the decision-making process.

To give you an example. Let’s say on a technical project the development team hit a problem. They have to bring in various subject matter experts to research and identify the parameters involved. They consult, brainstorm and debate. It’s a group effort, and it’s likely to end in a solution.

However, if I need my project sponsor to choose between two risk treatments, I’ll take him my recommendation and a summary of options and he’ll simply choose. Done.

Decisions are made based on what is known about a situation rather than relying on external opinions or advice when trying to make an informed choice about what course of action should be taken next.

They produce different results

The nature of both processes also differs in terms of the types of solutions they produce. Problem solving typically results in creative solutions that can be implemented over time, while decision making produces immediate choices from among existing alternatives without necessarily creating something new or unique.

Both processes involve the identification of a problem or issue, the collection of information to evaluate possible solutions, and an analysis of potential outcomes. The main difference between them is in their goals: problem solving seeks to identify the root cause of an issue and develop a solution that will address it; decision making focuses on selecting from among available options.

Both processes require careful consideration of facts and opinions before any action is taken. Problem solving often involves more people than decision making as it requires collaboration to identify underlying causes and brainstorm potential solutions. Decision makers may consult with others for input but ultimately make decisions independently based on their own judgment.

prioritization example

Still got a question?

What is the difference between decision and decision making.

A decision is the act of making a choice between two or more alternatives. Decision making is the process by which decisions are made. It involves gathering information, analyzing data, evaluating alternatives and choosing a course of action based on this analysis. The outcome of the process is the decision. The decision-making process also includes monitoring progress to ensure that goals are being met and taking corrective action if needed.

What is the importance of problem-solving and decision making?

Problem-solving and decision making are essential skills for project managers and managers in general. The processes keep work moving by making sure problems get solved and decisions get made so team members are not blocked from finishing their tasks.

What are the steps in problem-solving and decision making?

Problem-solving and decision making involve a series of steps that can help ensure the best possible outcome. The first step is to identify the problem or opportunity, then analyze it by gathering relevant information and evaluating potential solutions. After considering all options, select an appropriate solution and develop an action plan for implementation. Finally, monitor progress to ensure success and make necessary adjustments along the way. By following these steps, project managers can effectively manage projects while minimizing risks and maximizing results.

Before you go…

Sometimes there isn’t a right decision – it’s simply important to make a decision. As for the desk, in the end, we used a piece of furniture we already had upstairs and didn’t buy one at all.

I spent a morning measuring and researching options, and I’ll never get that time back, but that’s OK.

As a leader, you should be skilled at solving problems and making decisions, and the processes that support them. However, you don’t have to be doing all the solving and making all the calls yourself. As long as you facilitate the process and get the right people in the room, you can step back and let the experts do their thing.

Let the right people do the work and create an environment where your projects move forward because everyone’s got what they need to keep things moving.

Elizabeth Harrin wearing a pink scarf

Project manager, author, mentor

Elizabeth Harrin is a Fellow of the Association for Project Management in the UK. She holds degrees from the University of York and Roehampton University, and several project management certifications including APM PMQ. She first took her PRINCE2 Practitioner exam in 2004 and has worked extensively in project delivery for over 20 years. Elizabeth is also the founder of the Project Management Rebels community, a mentoring group for professionals. She's written several books for project managers including Managing Multiple Projects .

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Introduction.

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  • Representational Accounts
  • Problem Space and Search
  • Working Memory and Problem Solving
  • Domain-Specific Problem Solving
  • The Rational Approach
  • Prospect Theory
  • Dual-Process Theory
  • Cognitive Heuristics and Biases

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Problem Solving and Decision Making by Emily G. Nielsen , John Paul Minda LAST REVIEWED: 26 June 2019 LAST MODIFIED: 26 June 2019 DOI: 10.1093/obo/9780199828340-0246

Problem solving and decision making are both examples of complex, higher-order thinking. Both involve the assessment of the environment, the involvement of working memory or short-term memory, reliance on long term memory, effects of knowledge, and the application of heuristics to complete a behavior. A problem can be defined as an impasse or gap between a current state and a desired goal state. Problem solving is the set of cognitive operations that a person engages in to change the current state, to go beyond the impasse, and achieve a desired outcome. Problem solving involves the mental representation of the problem state and the manipulation of this representation in order to move closer to the goal. Problems can vary in complexity, abstraction, and how well defined (or not) the initial state and the goal state are. Research has generally approached problem solving by examining the behaviors and cognitive processes involved, and some work has examined problem solving using computational processes as well. Decision making is the process of selecting and choosing one action or behavior out of several alternatives. Like problem solving, decision making involves the coordination of memories and executive resources. Research on decision making has paid particular attention to the cognitive biases that account for suboptimal decisions and decisions that deviate from rationality. The current bibliography first outlines some general resources on the psychology of problem solving and decision making before examining each of these topics in detail. Specifically, this review covers cognitive, neuroscientific, and computational approaches to problem solving, as well as decision making models and cognitive heuristics and biases.

General Overviews

Current research in the area of problem solving and decision making is published in both general and specialized scientific journals. Theoretical and scholarly work is often summarized and developed in full-length books and chapter. These may focus on the subfields of problem solving and decision making or the larger field of thinking and higher-order cognition.

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Rational decision making

Satisficing and bounded rationality, intra-organizational political decision making.

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decision making , process and logic through which individuals arrive at a decision. Different models of decision making lead to dramatically different analyses and predictions. Decision-making theories range from objective rational decision making, which assumes that individuals will make the same decisions given the same information and preferences, to the more subjective logic of appropriateness , which assumes that specific institutional and organizational contexts matter in the decisions that individuals make.

(Read Steven Pinker’s Britannica entry on rationality.)

In modern Western societies the most common understanding of decision making is that it is rational—self-interested, purposeful, and efficient. During rational decision making, individuals will survey alternatives , evaluate consequences from each alternative , and finally do what they believe has the best consequences for themselves. The keys to a decision are the quality of information about alternatives and individual preferences. Modern economics is built on this understanding of how individuals make decisions.

Rational decision making becomes efficient when information is maximized and preferences are satisfied using the minimum of resources. In modern societies, rational decision making can occur in markets or firms. Both assume that individuals will act rationally, maximizing self-interest, but each works most efficiently under different conditions. Markets are most efficient when both buyers and sellers exist, when products or services are discrete so that the exchange can be one-time, when information about a product or service (such as its technology or means of evaluation) is broadly understood, and when there are enforced penalties for cheating.

Lacking these conditions, consensual exchange cannot occur, and rational individuals will try to cheat others to maximize their gain. In these cases a hierarchical organization is more efficient. The German sociologist Max Weber described how factories and bureaucracies became dramatically more efficient through growing technical expertise and, more importantly, a new division of labour , which divided work, specialized expertise, and coordinated individuals in a rule-based hierarchy . Bureaucracies decomposed complex technologies into manageable pieces, then allowed individuals to specialize and master a defined skill set. Using a clear hierarchy in which each position is controlled and supervised according to a stable and nonarbitrary system of rules, each individual’s work and expertise could be coordinated to achieve organizational goals, ranging from winning wars to making dresses.

In the 1940s, organization theorists began to challenge two assumptions necessary for rational decision making to occur, both of which were made obvious in cases where markets failed and hierarchies were necessary. First, information is never perfect, and individuals always make decisions based on imperfect information. Second, individuals do not evaluate all possible alternatives before making a choice. This behaviour is directly related to the costs of gathering information, because information becomes progressively more difficult and costly to gather. Instead of choosing the best alternative possible, individuals actually choose the first satisfactory alternative they find. The American social scientist Herbert Simon labeled this process “ satisficing” and concluded that human decision making could at best exhibit bounded rationality. Although objective rationality leads to only one possible rational conclusion, satisficing can lead to many rational conclusions, depending upon the information available and the imagination of the decision maker.

Simon argued that otherwise irrational individuals can behave rationally in the right context , particularly within a formal organization . Organizations can structure, or bound, individuals’ decisions by manipulating the premises on which decisions are made. Organizations can filter or emphasize information, bringing facts to an individual’s attention and identifying certain facts as important and legitimate . Individuals in hierarchies can take most of what happens around them for granted, concentrating only on a few key decisions. Hierarchies are efficient because they ensure that the correct information gets to the correct decision makers and that the correct person is making the decisions. At the same time, hierarchical organizations can socialize individuals to refrain from cheating by creating value decision premises that underlie decision makers’ judgments on what is right or good to do. These values, beliefs, or norms can come from family, from school, or from within the organization, but the organization can structure environments so that the most desirable value will be most salient at the time of decision.

Hierarchical organizations can structure factual and value decision premises so that the range of action becomes so narrow that only one alternative remains: the rational choice. Structuring decision premises can be done by directly managing information, selectively recruiting members, training members, and creating closed promotion patterns.

Organizations become rational in pursuing their missions through what Simon called ends-means chains. Leaders set the organizational mission, find a set of means for achieving the mission, take each of those means as a subgoal, and then find means for the subgoals and so on, until goals exist for every member of the organization. Leaders thus create a hierarchy of goals, in which each organizational level’s goals are an end relative to the levels below it and a means relative to the levels above it. Each individual’s work thus becomes a small part of accomplishing the organization’s mission.

Turning Simon’s bounded rationality on its head, other theorists argued that organizations are not purposeful cohesive actors but rather groups of competing coalitions made up of individuals with disparate interests. Individuals do not represent organizational interests; organizations represent individuals’ interests. Seen from this perspective, it is erroneous to ascribe a mission to an organization. Instead, organizations have goals set by a temporarily dominant coalition, which itself has no permanent goals and whose membership is subject to change. Members of the dominant coalition make decisions by bargaining, negotiating, and making side payments. Organizational decision making is the product of the game rather than a rational, goal-oriented process. Individual decision making is rational in the narrow sense that individuals pursue individual, self-interested goals, though this cannot always be accomplished directly. Individuals must pick their fights and use their influence carefully.

To understand and possibly predict what organizations will do, it is necessary to uncover and analyze the membership of the dominant coalition . The formal organizational chart is not a reliable map of organizational power. Instead, analysts must discover authority. Individuals gain authority by being able to resolve uncertainty. Individuals that can unravel technical problems, attract resources, or manage internal conflict demonstrate their usefulness to the rest of the organization and gain power. Working in concert with others who can perform similarly valuable functions, they become part of the dominant coalition. The size and composition of the dominant coalition depend on the types of environmental, technical, or coordinating uncertainty that must be resolved for the organization to survive. More technically complex, larger organizations in rapidly changing environments will tend to have larger dominant coalitions.

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8 Steps in the Decision-Making Process

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  • 04 Feb 2020

Strong decision-making skills are essential for newly appointed and seasoned managers alike. The ability to navigate complex challenges and develop a plan can not only lead to more effective team management but drive key organizational change initiatives and objectives.

Despite decision-making’s importance in business, a recent survey by McKinsey shows that just 20 percent of professionals believe their organizations excel at it. Survey respondents noted that, on average, they spend 37 percent of their time making decisions, but more than half of it’s used ineffectively.

For managers, it’s critical to ensure effective decisions are made for their organizations’ success. Every managerial decision must be accompanied by research and data , collaboration, and alternative solutions.

Few managers, however, reap the benefits of making more thoughtful choices due to undeveloped decision-making models.

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Why Is Making Decisions Important?

According to Harvard Business School Professor Leonard Schlesinger, who’s featured in the online course Management Essentials , most managers view decision-making as a single event, rather than a process. This can lead to managers overestimating their abilities to influence outcomes and closing themselves off from alternative perspectives and diverse ways of thinking.

“The reality is, it’s very rare to find a single point in time where ‘a decision of significance’ is made and things go forward from there,” Schlesinger says. “Embedded in this work is the notion that what we’re really talking about is a process. The role of the manager in managing that process is actually quite straightforward, yet, at the same time, extraordinarily complex.”

If you want to further your business knowledge and be more effective in your role, it’s critical to become a strong decision-maker. Here are eight steps in the decision-making process you can employ to become a better manager and have greater influence in your organization.

Steps in the Decision-Making Process

1. frame the decision.

Pinpointing the issue is the first step to initiating the decision-making process. Ensure the problem is carefully analyzed, clearly defined, and everyone involved in the outcome agrees on what needs to be solved. This process will give your team peace of mind that each key decision is based on extensive research and collaboration.

Schlesinger says this initial action can be challenging for managers because an ill-formed question can result in a process that produces the wrong decision.

“The real issue for a manager at the start is to make sure they are actively working to shape the question they’re trying to address and the decision they’re trying to have made,” Schlesinger says. “That’s not a trivial task.”

2. Structure Your Team

Managers must assemble the right people to navigate the decision-making process.

“The issue of who’s going to be involved in helping you to make that decision is one of the most central issues you face,” Schlesinger says. “The primary issue being the membership of the collection of individuals or group that you’re bringing together to make that decision.”

As you build your team, Schlesinger advises mapping the technical, political, and cultural underpinnings of the decision that needs to be made and gathering colleagues with an array of skills and experience levels to help you make an informed decision. .

“You want some newcomers who are going to provide a different point of view and perspective on the issue you’re dealing with,” he says. “At the same time, you want people who have profound knowledge and deep experience with the problem.”

It’s key to assign decision tasks to colleagues and invite perspectives that uncover blindspots or roadblocks. Schlesinger notes that attempting to arrive at the “right answer” without a team that will ultimately support and execute it is a “recipe for failure.”

3. Consider the Timeframe

This act of mapping the issue’s intricacies should involve taking the decision’s urgency into account. Business problems with significant implications sometimes allow for lengthier decision-making processes, whereas other challenges call for more accelerated timelines.

“As a manager, you need to shape the decision-making process in terms of both of those dimensions: The criticality of what it is you’re trying to decide and, more importantly, how quickly it needs to get decided given the urgency,” Schlesinger says. “The final question is, how much time you’re going to provide yourself and the group to invest in both problem diagnosis and decisions.”

4. Establish Your Approach

In the early stages of the decision-making process, it’s critical to set ground rules and assign roles to team members. Doing so can help ensure everyone understands how they contribute to problem-solving and agrees on how a solution will be reached.

“It’s really important to get clarity upfront around the roles people are going to play and the ways in which decisions are going to get made,” Schlesinger says. “Often, managers leave that to chance, so people self-assign themselves to roles in ways that you don’t necessarily want, and the decision-making process defers to consensus, which is likely to lead to a lower evaluation of the problem and a less creative solution.”

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5. Encourage Discussion and Debate

One of the issues of leading a group that defaults to consensus is that it can shut out contrarian points of view and deter inventive problem-solving. Because of this potential pitfall, Schlesinger notes, you should designate roles that focus on poking holes in arguments and fostering debate.

“What we’re talking about is establishing a process of devil’s advocacy, either in an individual or a subgroup role,” he says. “That’s much more likely to lead to a deeper critical evaluation and generate a substantial number of alternatives.”

Schlesinger adds that this action can take time and potentially disrupt group harmony, so it’s vital for managers to guide the inner workings of the process from the outset to ensure effective collaboration and guarantee more quality decisions will be made.

“What we need to do is establish norms in the group that enable us to be open to a broader array of data and decision-making processes,” he says. “If that doesn’t happen upfront, but in the process without a conversation, it’s generally a source of consternation and some measure of frustration.”

Related: 3 Group Decision-Making Techniques for Success

6. Navigate Group Dynamics

In addition to creating a dynamic in which candor and debate are encouraged, there are other challenges you need to navigate as you manage your team throughout the decision-making process.

One is ensuring the size of the group is appropriate for the problem and allows for an efficient workflow.

“In getting all the people together that have relevant data and represent various political and cultural constituencies, each incremental member adds to the complexity of the decision-making process and the amount of time it takes to get a decision made and implemented,” Schlesinger says.

Another task, he notes, is identifying which parts of the process can be completed without face-to-face interaction.

“There’s no question that pieces of the decision-making process can be deferred to paper, email, or some app,” Schlesinger says. “But, at the end of the day, given that so much of decision-making requires high-quality human interaction, you need to defer some part of the process for ill-structured and difficult tasks to a face-to-face meeting.”

7. Ensure the Pieces Are in Place for Implementation

Throughout your team’s efforts to arrive at a decision, you must ensure you facilitate a process that encompasses:

  • Shared goals that were presented upfront
  • Alternative options that have been given rigorous thought and fair consideration
  • Sound methods for exploring decisions’ consequences

According to Schlesinger, these components profoundly influence the quality of the solution that’s ultimately identified and the types of decisions that’ll be made in the future.

“In the general manager’s job, the quality of the decision is only one part of the equation,” he says. “All of this is oriented toward trying to make sure that once a decision is made, we have the right groupings and the right support to implement.”

8. Achieve Closure and Alignment

Achieving closure in the decision-making process requires arriving at a solution that sufficiently aligns members of your group and garners enough support to implement it.

As with the other phases of decision-making, clear communication ensures your team understands and commits to the plan.

In a video interview for the online course Management Essentials , Harvard Business School Dean Nitin Nohria says it’s essential to explain the rationale behind the decision to your employees.

“If it’s a decision that you have to make, say, ‘I know there were some of you who thought differently, but let me tell you why we went this way,’” Nohria says. “This is so the people on the other side feel heard and recognize the concerns they raised are things you’ve tried to incorporate into the decision and, as implementation proceeds, if those concerns become real, then they’ll be attended to.”

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How to Improve Your Decision-Making

An in-depth understanding of the decision-making process is vital for all managers. Whether you’re an aspiring manager aiming to move up at your organization or a seasoned executive who wants to boost your job performance, honing your approach to decision-making can improve your managerial skills and equip you with the tools to advance your career.

Do you want to become a more effective decision-maker? Explore Management Essentials —one of our online leadership and management courses —to learn how you can influence the context and environment in which decisions get made.

This article was update on July 15, 2022. It was originally published on February 4, 2020.

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what is problem solving & decision making

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7 important steps in the decision making process

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The decision making process is a method of gathering information, assessing alternatives, and making a final choice with the goal of making the best decision possible. In this article, we detail the step-by-step process on how to make a good decision and explain different decision making methodologies.

We make decisions every day. Take the bus to work or call a car? Chocolate or vanilla ice cream? Whole milk or two percent?

There's an entire process that goes into making those tiny decisions, and while these are simple, easy choices, how do we end up making more challenging decisions? 

At work, decisions aren't as simple as choosing what kind of milk you want in your latte in the morning. That’s why understanding the decision making process is so important. 

What is the decision making process?

The decision making process is the method of gathering information, assessing alternatives, and, ultimately, making a final choice. 

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The 7 steps of the decision making process

Step 1: identify the decision that needs to be made.

When you're identifying the decision, ask yourself a few questions: 

What is the problem that needs to be solved?

What is the goal you plan to achieve by implementing this decision?

How will you measure success?

These questions are all common goal setting techniques that will ultimately help you come up with possible solutions. When the problem is clearly defined, you then have more information to come up with the best decision to solve the problem.

Step 2: Gather relevant information

​Gathering information related to the decision being made is an important step to making an informed decision. Does your team have any historical data as it relates to this issue? Has anybody attempted to solve this problem before?

It's also important to look for information outside of your team or company. Effective decision making requires information from many different sources. Find external resources, whether it’s doing market research, working with a consultant, or talking with colleagues at a different company who have relevant experience. Gathering information helps your team identify different solutions to your problem.

Step 3: Identify alternative solutions

This step requires you to look for many different solutions for the problem at hand. Finding more than one possible alternative is important when it comes to business decision-making, because different stakeholders may have different needs depending on their role. For example, if a company is looking for a work management tool, the design team may have different needs than a development team. Choosing only one solution right off the bat might not be the right course of action. 

Step 4: Weigh the evidence

This is when you take all of the different solutions you’ve come up with and analyze how they would address your initial problem. Your team begins identifying the pros and cons of each option, and eliminating alternatives from those choices.

There are a few common ways your team can analyze and weigh the evidence of options:

Pros and cons list

SWOT analysis

Decision matrix

Step 5: Choose among the alternatives

The next step is to make your final decision. Consider all of the information you've collected and how this decision may affect each stakeholder. 

Sometimes the right decision is not one of the alternatives, but a blend of a few different alternatives. Effective decision-making involves creative problem solving and thinking out of the box, so don't limit you or your teams to clear-cut options.

One of the key values at Asana is to reject false tradeoffs. Choosing just one decision can mean losing benefits in others. If you can, try and find options that go beyond just the alternatives presented.

Step 6: Take action

Once the final decision maker gives the green light, it's time to put the solution into action. Take the time to create an implementation plan so that your team is on the same page for next steps. Then it’s time to put your plan into action and monitor progress to determine whether or not this decision was a good one. 

Step 7: Review your decision and its impact (both good and bad)

Once you’ve made a decision, you can monitor the success metrics you outlined in step 1. This is how you determine whether or not this solution meets your team's criteria of success.

Here are a few questions to consider when reviewing your decision:

Did it solve the problem your team identified in step 1? 

Did this decision impact your team in a positive or negative way?

Which stakeholders benefited from this decision? Which stakeholders were impacted negatively?

If this solution was not the best alternative, your team might benefit from using an iterative form of project management. This enables your team to quickly adapt to changes, and make the best decisions with the resources they have. 

Types of decision making models

While most decision making models revolve around the same seven steps, here are a few different methodologies to help you make a good decision.

​Rational decision making models

This type of decision making model is the most common type that you'll see. It's logical and sequential. The seven steps listed above are an example of the rational decision making model. 

When your decision has a big impact on your team and you need to maximize outcomes, this is the type of decision making process you should use. It requires you to consider a wide range of viewpoints with little bias so you can make the best decision possible. 

Intuitive decision making models

This type of decision making model is dictated not by information or data, but by gut instincts. This form of decision making requires previous experience and pattern recognition to form strong instincts.

This type of decision making is often made by decision makers who have a lot of experience with similar kinds of problems. They have already had proven success with the solution they're looking to implement. 

Creative decision making model

The creative decision making model involves collecting information and insights about a problem and coming up with potential ideas for a solution, similar to the rational decision making model. 

The difference here is that instead of identifying the pros and cons of each alternative, the decision maker enters a period in which they try not to actively think about the solution at all. The goal is to have their subconscious take over and lead them to the right decision, similar to the intuitive decision making model. 

This situation is best used in an iterative process so that teams can test their solutions and adapt as things change.

Track key decisions with a work management tool

Tracking key decisions can be challenging when not documented correctly. Learn more about how a work management tool like Asana can help your team track key decisions, collaborate with teammates, and stay on top of progress all in one place.

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Problem Solving and Decision Making - Two Essential Skills of a Good Leader

Darren Matthews

Problem solving and decision making are two fascinating skillsets. We call them out as two separate skills – and they are – but they also make use of the same core attributes.

They feed on a need to communicate well, both through questioning and listening, and be patient and not rushing both processes through. Thus, the greatest challenge any leader faces when it comes to solving problems and decision making is when the pressure of time comes into play. But as Robert Schuller highlights in his quote, allowing problem-solving to become the decision means you’ll never break free from the problem.

“Never bring the problem-solving stage into the decision-making stage. Otherwise, you surrender yourself to the problem rather than the solution.”—Robert H. Schuller

So how does a leader avoid this trap? How do they ensure the problem solving doesn’t become the be-all and end-all?

The 7 steps of Effective Problem Solving and Decision Making

A vital hurdle every leader must overcome is to avoid the impulsive urge to make quick decisions . Often when confronted with a problem, leaders or managers fall back in past behaviours. Urgency creates pressure to act quickly as a result, the problem still exists, just side-lined until it rears its ugly head again.

Good problem solving opens opportunity. A notable example of this is the first principles thinking executed by the likes of Elon Musk and others. Understanding the fundamentals blocks of a process and the problem it’s creating can lead to not just the problem but accelerate beyond it.

So, to avoid the trap, and use problem solving and decision making effectively , you should embody yourself with the following seven steps.

1.      What is the problem?

Often, especially in time-critical situations, people don’t define the problem. Some label themselves as fire-fighters, just content with dowsing out the flames. It is a reactionary behaviour and one commonplace with under-trained leaders. As great as some fire-fighters are, they can only put out so many fires at one time, often becoming a little industry.

The better approach is to define the problem, and this means asking the following questions:

  • What is happening? ( What makes you think there is a problem?)
  • Where is it taking place?
  • How is it happening?
  • When is it happening?
  • Why is it happening?
  • With whom is it happening? (This isn’t a blame game…all you want to do is isolate the problem to a granular level.)
  • Define what you understand to be the problem in writing by using as few sentences as possible. (Look at the answers to your what, where, why, when, and how questions.)

2.      What are the potential causes?

Having defined the problem it is now time to find out what might be causing the problem. Your leadership skills: your communication skills need to be strong, as you look to gather input from your team and those involved in the problem.

Key points:

  • Talk to those involved individually. Groupthink is a common cause of blindness to the problem, especially if there is blame culture within the business.
  • Document what you’ve heard and what you think is the root cause is.
  • Be inquisitive. You don’t know what you don’t know, so get the input of others and open yourself up to the feedback you’ll need to solve this problem.

3.      What other ways can you overcome the problem?

 Sometimes, getting to the root cause can take time. Of course, you can’t ignore it, but it is important to produce a plan to temporarily fix the problem. In business, a problem will be costing the business money, whether it be sales or profit. So, a temporary fix allows the business to move forward, providing it neutralises the downside of the original problem.

4.      How will you resolve the problem?

At this stage, you still don’t know what the actual problem is. All you have is a definition of the problem which is a diagnosis of the issue. You will have the team’s input, as well as your opinions as to what the next steps should be.

If you don’t, then at this stage you should think about reassessing the problem. One way forward could be to become more granular and adopt a first-principles approach.

  • Break the problem down into its core parts
  • What forms the foundational blocks of the system in operation?
  • Ask powerful questions to get to the truth of the problem
  • How do the parts fit together?
  • What was the original purpose of the system working in this way?
  • Name and separate your assumptions from the facts
  • Remind yourself of the goal and create a new solution

Solve hard problems with inversion

Another way is to invert the problem using the following technique:

1. Understand the problem

Every solution starts with developing a clear understanding of what the problem is. In this instance, some clarity of the issue is vital.

2. Ask the opposite question

Convention wisdom means we see the world logically. But what if you turned the logical outcome on its head. Asking the opposite questions brings an unfamiliar perspective.

3. Answer the opposite question

It seems a simple logic, but you can’t just ask the opposite question and not answer it. You must think through the dynamics that come from asking the question. You're looking for alternative viewpoints and thoughts you've not had before.

4. Join your answers up with your original problem

This is where solutions are born. You’re taking your conventional wisdom and aligning it with the opposite perspective. So often the blockers seen in the original problem become part of the solution.

5.      Define a plan to either fix the problem permanently or temporarily

You now know the problem. You understand the fix, and you are a position to assess the risks involved.

Assessing the risks means considering the worst-case scenarios and ensuring you avoid them. Your plan should take into the following points:

  • Is there any downtime to implementing the solution? If so, how long, and how much will it cost? Do you have backup systems in place to minimise the impact?
  • If the risk is too great, consider a temporary fix which keeps current operations in place and gives you time to further prepare for a permanent fix.
  • Document the plan and share it with all the relevant stakeholders. Communication is key.

Here we see the two skills of problem solving and decision making coming together. The two skills are vital to managing business risks as well as solving the problem.

6.      Monitor and measure the plan

Having evolved through the five steps to this stage, you mustn’t take your eye off the ball as it were.

  • Define timelines and assess progress
  • Report to the stakeholders, ensuring everyone is aware of progress or any delays.
  • If the plan doesn’t deliver, ask why? Learn from failure.

7.      Have you fixed the problem?

Don’t forget the problem you started with. Have you fixed it? You might find it wasn’t a problem at all. You will have learnt a lot about the part of the business where the problem occurred, and improvements will have taken place.

Use the opportunity to assess what worked, what didn’t, and what would have helped. These are three good questions to give you some perspective on the process you’ve undertaken.

Problem solving and decision making in unison

Throughout the process of problem solving, you’re making decisions. Right from the beginning when the problem first becomes clear, you have a choice to either react – firefight or to investigate. This progresses as move onto risk assessing the problem and then defining the solutions to overcome the issue.

Throughout the process, the critical element is to make decisions with the correct information to hand. Finding out the facts, as well as defeating your assumptions are all part of the process of making the right decision.

Problem solving and decision making – a process 

Problem solving isn’t easy. It becomes even more challenging when you have decisions to make. The seven steps I’ve outlined will give you the ability to investigate and diagnose the problem correctly.

  • What is the problem?
  • What are the potential causes?
  • What other ways can you overcome the problem?
  • How will you resolve the problem?
  • Define a plan to either fix the problem permanently or temporarily.
  • Monitor and measure the plan.
  • Have you fixed the problem?

Of course, this logical step by step process might not enable you to diagnose the issue at hand. Some problems can be extremely hard, and an alternative approach might help. In this instance, first principles thinking or using the power of inversion are excellent ways to dig into hard problems. Problem solving and decision making are two skills every good leader needs. Using them together is an effective way to work.

what is problem solving & decision making

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Problem-Solving and Decision-Making

  • First Online: 17 October 2019

Cite this chapter

what is problem solving & decision making

  • Jonathan S. Vordermark II 2  

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There are major differences between decision-making and problem-solving. The two entities differ in discrete and subtle ways and should be resolved at different levels within teams or organizations. Decision-making usually involves more experienced higher-order, process-dependent, and non-linear skills. The impact of decisions is usually more global, long-term, and less quantifiable and qualifiable.

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Bibliography

Bosk CL. (2003). Forgive and Remember: Managing Medical Failure . Second Edition. Chicago, IL: University of Chicago Press; 2003.

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Montgomery K. How Doctors Think: Clinical Judgment and the Practice of Medicine . New York, NY: Oxford University Press; 2006.

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Pellegrino ED, Thomasma DC. A Philosophical Basis of Medical Practice. New York, NY: Oxford University Press; 1981.

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Vordermark II, J.S. (2019). Problem-Solving and Decision-Making. In: An Introduction to Medical Decision-Making. Springer, Cham. https://doi.org/10.1007/978-3-030-23147-7_3

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How to Make Great Decisions, Quickly

  • Martin G. Moore

what is problem solving & decision making

It’s a skill that will set you apart.

As a new leader, learning to make good decisions without hesitation and procrastination is a capability that can set you apart from your peers. While others vacillate on tricky choices, your team could be hitting deadlines and producing the type of results that deliver true value. That’s something that will get you — and them — noticed. Here are a few of a great decision:

  • Great decisions are shaped by consideration of many different viewpoints. This doesn’t mean you should seek out everyone’s opinion. The right people with the relevant expertise need to clearly articulate their views to help you broaden your perspective and make the best choice.
  • Great decisions are made as close as possible to the action. Remember that the most powerful people at your company are rarely on the ground doing the hands-on work. Seek input and guidance from team members who are closest to the action.
  • Great decisions address the root cause, not just the symptoms. Although you may need to urgently address the symptoms, once this is done you should always develop a plan to fix the root cause, or else the problem is likely to repeat itself.
  • Great decisions balance short-term and long-term value. Finding the right balance between short-term and long-term risks and considerations is key to unlocking true value.
  • Great decisions are timely. If you consider all of the elements listed above, then it’s simply a matter of addressing each one with a heightened sense of urgency.

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Like many young leaders, early in my career, I thought a great decision was one that attracted widespread approval. When my colleagues smiled and nodded their collective heads, it reinforced (in my mind, at least) that I was an excellent decision maker.

what is problem solving & decision making

  • MM Martin G. Moore is the founder of Your CEO Mentor and author of No Bullsh!t Leadership and host of the No Bullsh!t Leadership podcast. His purpose is to improve the quality of leaders globally through practical, real world leadership content. For more information, please visit, www.martingmoore.com.

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Decision-making and Problem-solving

Appreciate the complexities involved in decision-making & problem solving.

Develop evidence to support views

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A 5-Step Problem-Solving Strategy

Specify the problem – a first step to solving a problem is to identify it as specifically as possible.  It involves evaluating the present state and determining how it differs from the goal state.

Analyze the problem – analyzing the problem involves learning as much as you can about it.  It may be necessary to look beyond the obvious, surface situation, to stretch your imagination and reach for more creative options.

seek other perspectives

be flexible in your analysis

consider various strands of impact

brainstorm about all possibilities and implications

research problems for which you lack complete information. Get help.

Formulate possible solutions – identify a wide range of possible solutions.

try to think of all possible solutions

be creative

consider similar problems and how you have solved them

Evaluate possible solutions – weigh the advantages and disadvantages of each solution.  Think through each solution and consider how, when, and where you could accomplish each.  Consider both immediate and long-term results.  Mapping your solutions can be helpful at this stage.

Choose a solution – consider 3 factors:

compatibility with your priorities

amount of risk

practicality

Keys to Problem Solving

Think aloud – problem solving is a cognitive, mental process.  Thinking aloud or talking yourself through the steps of problem solving is useful.  Hearing yourself think can facilitate the process.

Allow time for ideas to "gel" or consolidate.  If time permits, give yourself time for solutions to develop.  Distance from a problem can allow you to clear your mind and get a new perspective.

Talk about the problem – describing the problem to someone else and talking about it can often make a problem become more clear and defined so that a new solution will surface.

Decision Making Strategies

Decision making is a process of identifying and evaluating choices.  We make numerous decisions every day and our decisions may range from routine, every-day types of decisions to those decisions which will have far reaching impacts.  The types of decisions we make are routine, impulsive, and reasoned.  Deciding what to eat for breakfast is a routine decision; deciding to do or buy something at the last minute is considered an impulsive decision; and choosing your college major is, hopefully, a reasoned decision.  College coursework often requires you to make the latter, or reasoned decisions.

Decision making has much in common with problem solving.  In problem solving you identify and evaluate solution paths; in decision making you make a similar discovery and evaluation of alternatives.  The crux of decision making, then, is the careful identification and evaluation of alternatives.  As you weigh alternatives, use the following suggestions:

Consider the outcome each is likely to produce, in both the short term and the long term.

Compare alternatives based on how easily you can accomplish each.

Evaluate possible negative side effects each may produce.

Consider the risk involved in each.

Be creative, original; don't eliminate alternatives because you have not heard or used them before.

An important part of decision making is to predict both short-term and long-term outcomes for each alternative.  You may find that while an alternative seems most desirable at the present, it may pose problems or complications over a longer time period.

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This is how effective teams navigate the decision-making process

Zero Magic 8 Balls required.

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Flipping a coin. Throwing a dart at a board. Pulling a slip of paper out of a hat.

Sure, they’re all ways to make a choice. But they all hinge on random chance rather than analysis, reflection, and strategy — you know, the things you actually need to make the big, meaty decisions that have major impacts.

So, set down that Magic 8 Ball and back away slowly. Let’s walk through the standard framework for decision-making that will help you and your team pinpoint the problem, consider your options, and make your most informed selection. Here’s a closer look at each of the seven steps of the decision-making process, and how to approach each one. 

Step 1: Identify the decision

Most of us are eager to tie on our superhero capes and jump into problem-solving mode — especially if our team is depending on a solution. But you can’t solve a problem until you have a full grasp on what it actually is .

This first step focuses on getting the lay of the land when it comes to your decision. What specific problem are you trying to solve? What goal are you trying to achieve? 

How to do it: 

  • Use the 5 whys analysis to go beyond surface-level symptoms and understand the root cause of a problem.
  • Try problem framing to dig deep on the ins and outs of whatever problem your team is fixing. The point is to define the problem, not solve it. 

⚠️ Watch out for: Decision fatigue , which is the tendency to make worse decisions as a result of needing to make too many of them. Making choices is mentally taxing , which is why it’s helpful to pinpoint one decision at a time. 

2. Gather information

Your team probably has a few hunches and best guesses, but those can lead to knee-jerk reactions. Take care to invest adequate time and research into your decision.

This step is when you build your case, so to speak. Collect relevant information — that could be data, customer stories, information about past projects, feedback, or whatever else seems pertinent. You’ll use that to make decisions that are informed, rather than impulsive.

  • Host a team mindmapping session to freely explore ideas and make connections between them. It can help you identify what information will best support the process.
  • Create a project poster to define your goals and also determine what information you already know and what you still need to find out. 

⚠️ Watch out for: Information bias , or the tendency to seek out information even if it won’t impact your action. We have the tendency to think more information is always better, but pulling together a bunch of facts and insights that aren’t applicable may cloud your judgment rather than offer clarity. 

3. Identify alternatives

Use divergent thinking to generate fresh ideas in your next brainstorm

Use divergent thinking to generate fresh ideas in your next brainstorm

Blame the popularity of the coin toss, but making a decision often feels like choosing between only two options. Do you want heads or tails? Door number one or door number two? In reality, your options aren’t usually so cut and dried. Take advantage of this opportunity to get creative and brainstorm all sorts of routes or solutions. There’s no need to box yourselves in. 

  • Use the Six Thinking Hats technique to explore the problem or goal from all sides: information, emotions and instinct, risks, benefits, and creativity. It can help you and your team break away from your typical roles or mindsets and think more freely.
  • Try brainwriting so team members can write down their ideas independently before sharing with the group. Research shows that this quiet, lone thinking time can boost psychological safety and generate more creative suggestions .

⚠️ Watch out for: Groupthink , which is the tendency of a group to make non-optimal decisions in the interest of conformity. People don’t want to rock the boat, so they don’t speak up. 

4. Consider the evidence

Armed with your list of alternatives, it’s time to take a closer look and determine which ones could be worth pursuing. You and your team should ask questions like “How will this solution address the problem or achieve the goal?” and “What are the pros and cons of this option?” 

Be honest with your answers (and back them up with the information you already collected when you can). Remind the team that this isn’t about advocating for their own suggestions to “win” — it’s about whittling your options down to the best decision. 

How to do it:

  • Use a SWOT analysis to dig into the strengths, weaknesses, opportunities, and threats of the options you’re seriously considering.
  • Run a project trade-off analysis to understand what constraints (such as time, scope, or cost) the team is most willing to compromise on if needed. 

⚠️ Watch out for: Extinction by instinct , which is the urge to make a decision just to get it over with. You didn’t come this far to settle for a “good enough” option! 

5. Choose among the alternatives

This is it — it’s the big moment when you and the team actually make the decision. You’ve identified all possible options, considered the supporting evidence, and are ready to choose how you’ll move forward.

However, bear in mind that there’s still a surprising amount of room for flexibility here. Maybe you’ll modify an alternative or combine a few suggested solutions together to land on the best fit for your problem and your team. 

  • Use the DACI framework (that stands for “driver, approver, contributor, informed”) to understand who ultimately has the final say in decisions. The decision-making process can be collaborative, but eventually someone needs to be empowered to make the final call.
  • Try a simple voting method for decisions that are more democratized. You’ll simply tally your team’s votes and go with the majority. 

⚠️ Watch out for: Analysis paralysis , which is when you overthink something to such a great degree that you feel overwhelmed and freeze when it’s time to actually make a choice. 

6. Take action

Making a big decision takes a hefty amount of work, but it’s only the first part of the process — now you need to actually implement it. 

It’s tempting to think that decisions will work themselves out once they’re made. But particularly in a team setting, it’s crucial to invest just as much thought and planning into communicating the decision and successfully rolling it out. 

  • Create a stakeholder communications plan to determine how you’ll keep various people — direct team members, company leaders, customers, or whoever else has an active interest in your decision — in the loop on your progress.
  • Define the goals, signals, and measures of your decision so you’ll have an easier time aligning the team around the next steps and determining whether or not they’re successful. 

⚠️Watch out for: Self-doubt, or the tendency to question whether or not you’re making the right move. While we’re hardwired for doubt , now isn’t the time to be a skeptic about your decision. You and the team have done the work, so trust the process. 

7. Review your decision

9 retrospective techniques that won’t bore your team to tears

9 retrospective techniques that won’t bore your team to tears

As the decision itself starts to shake out, it’s time to take a look in the rearview mirror and reflect on how things went.

Did your decision work out the way you and the team hoped? What happened? Examine both the good and the bad. What should you keep in mind if and when you need to make this sort of decision again? 

  • Do a 4 L’s retrospective to talk through what you and the team loved, loathed, learned, and longed for as a result of that decision.
  • Celebrate any wins (yes, even the small ones ) related to that decision. It gives morale a good kick in the pants and can also help make future decisions feel a little less intimidating.

⚠️ Watch out for: Hindsight bias , or the tendency to look back on events with the knowledge you have now and beat yourself up for not knowing better at the time. Even with careful thought and planning, some decisions don’t work out — but you can only operate with the information you have at the time. 

Making smart decisions about the decision-making process

You’re probably picking up on the fact that the decision-making process is fairly comprehensive. And the truth is that the model is likely overkill for the small and inconsequential decisions you or your team members need to make.

Deciding whether you should order tacos or sandwiches for your team offsite doesn’t warrant this much discussion and elbow grease. But figuring out which major project to prioritize next? That requires some careful and collaborative thought. 

It all comes back to the concept of satisficing versus maximizing , which are two different perspectives on decision making. Here’s the gist:

  • Maximizers aim to get the very best out of every single decision.
  • Satisficers are willing to settle for “good enough” rather than obsessing over achieving the best outcome.

One of those isn’t necessarily better than the other — and, in fact, they both have their time and place.

A major decision with far-reaching impacts deserves some fixation and perfectionism. However, hemming and hawing over trivial choices ( “Should we start our team meeting with casual small talk or a structured icebreaker?” ) will only cause added stress, frustration, and slowdowns. 

As with anything else, it’s worth thinking about the potential impacts to determine just how much deliberation and precision a decision actually requires. 

Decision-making is one of those things that’s part art and part science. You’ll likely have some gut feelings and instincts that are worth taking into account. But those should also be complemented with plenty of evidence, evaluation, and collaboration.

The decision-making process is a framework that helps you strike that balance. Follow the seven steps and you and your team can feel confident in the decisions you make — while leaving the darts and coins where they belong.

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Problem Solving And Decision Making: 10 Hacks That Managers Love

Understanding problem solving & decision making, why are problem solving and decision making skills essential in the workplace, five techniques for effective problem solving, five techniques for effective decision making, frequently asked questions.

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Steps in problem solving and decision making

  • Improved efficiency and productivity: Employees with strong problem solving and decision making skills are better equipped to identify and solve issues that may arise in their work. This leads to improved efficiency and productivity as they can complete their work more timely and effectively.
  • Improved customer satisfaction: Problem solving and decision making skills also help employees address any concerns or issues customers may have. This leads to enhanced customer satisfaction as customers feel their needs are being addressed and their problems are resolved.
  • Effective teamwork: When working in teams, problem solving and decision making skills are essential for effective collaboration . Groups that can effectively identify and solve problems together are more likely to successfully achieve their goals.
  • Innovation: Effective problem-solving and decision-making skills are also crucial for driving innovation in the workplace. Employees who think creatively and develop new solutions to problems are more likely to develop innovative ideas to move the business forward.
  • Risk management: Problem solving and decision making skills are also crucial for managing risk in the workplace. By identifying potential risks and developing strategies to mitigate them, employees can help minimize the negative impact of risks on the business.

Problem solving techniques

  • Brainstorming: Brainstorming is a technique for generating creative ideas and solutions to problems. In a brainstorming session, a group of people share their thoughts and build on each other’s suggestions. The goal is to generate a large number of ideas in a short amount of time. For example, a team of engineers could use brainstorming to develop new ideas for improving the efficiency of a manufacturing process.
  • Root Cause Analysis: Root cause analysis is a technique for identifying the underlying cause of a problem. It involves asking “why” questions to uncover the root cause of the problem. Once the root cause is identified, steps can be taken to address it. For example, a hospital could use root cause analysis to investigate why patient falls occur and identify the root cause, such as inadequate staffing or poor lighting.
  • SWOT Analysis: SWOT analysis is a technique for evaluating the strengths, weaknesses, opportunities, and threats related to a problem or situation. It involves assessing internal and external factors that could impact the problem and identifying ways to leverage strengths and opportunities while minimizing weaknesses and threats. For example, a small business could use SWOT analysis to evaluate its market position and identify opportunities to expand its product line or improve its marketing.
  • Pareto Analysis: Pareto analysis is a technique for identifying the most critical problems to address. It involves ranking problems by impact and frequency and first focusing on the most significant issues. For example, a software development team could use Pareto analysis to prioritize bugs and issues to fix based on their impact on the user experience.
  • Decision Matrix Analysis: Decision matrix analysis evaluates alternatives and selects the best course of action. It involves creating a matrix to compare options based on criteria and weighting factors and selecting the option with the highest score. For example, a manager could use decision matrix analysis to evaluate different software vendors based on criteria such as price, features, and support and select the vendor with the best overall score.

Decision making techniques

  • Cost-Benefit Analysis: Cost-benefit analysis is a technique for evaluating the costs and benefits of different options. It involves comparing each option’s expected costs and benefits and selecting the one with the highest net benefit. For example, a company could use cost-benefit analysis to evaluate a new product line’s potential return on investment.
  • Decision Trees: Decision trees are a visual representation of the decision-making process. They involve mapping out different options and their potential outcomes and probabilities. This helps to identify the best course of action based on the likelihood of different outcomes. For example, a farmer could use a decision tree to choose crops to plant based on the expected weather patterns.
  • SWOT Analysis: SWOT analysis can also be used for decision making. By identifying the strengths, weaknesses, opportunities, and threats of different options, a decision maker can evaluate each option’s potential risks and benefits. For example, a business owner could use SWOT analysis to assess the potential risks and benefits of expanding into a new market.
  • Pros and Cons Analysis: Pros and cons analysis lists the advantages and disadvantages of different options. It involves weighing the pros and cons of each option to determine the best course of action. For example, an individual could use a pros and cons analysis to decide whether to take a job offer.
  • Six Thinking Hats: The six thinking hats technique is a way to think about a problem from different perspectives. It involves using six different “hats” to consider various aspects of the decision. The hats include white (facts and figures), red (emotions and feelings), black (risks and drawbacks), yellow (benefits and opportunities), green (creativity and new ideas), and blue (overview and control). For example, a team could use the six thinking hats technique to evaluate different options for a marketing campaign.

what is problem solving & decision making

Aastha Bensla

Aastha, a passionate industrial psychologist, writer, and counselor, brings her unique expertise to Risely. With specialized knowledge in industrial psychology, Aastha offers a fresh perspective on personal and professional development. Her broad experience as an industrial psychologist enables her to accurately understand and solve problems for managers and leaders with an empathetic approach.

How strong are your decision making skills?

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Evidence Based Decision Making

Evidence Based Decision Making: 4 Proven Hacks For Managers

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what is problem solving & decision making

More From Forbes

Tips and techniques for problem-solving and decision-making.

Forbes Coaches Council

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Divya Parekh , of The DP Group, covers business growth, storytelling, high-impact performance and authority building.

Are you struggling to find effective solutions to problems you face in your professional or entrepreneurial ventures? Are you often indecisive when faced with complex decisions?

The ability to solve problems and make decisions quickly and effectively can mean the difference between success and failure. There are two main approaches to problem-solving and decision-making: vertical thinking and horizontal thinking. Both approaches have strengths and weaknesses, so understanding the differences between them can help you apply the right method at the right time.

Let's look at a few case studies to understand the very different benefits of these two approaches.

Vertical Thinking For Decision-Making

First, let's take Jane, the CFO of a financial services company. She needs to decide whether to invest in a new company software system.

Jane gathers all the relevant data about the software system and analyzes it thoroughly. She compares the cost of the system to the potential benefits, evaluates the risks involved and consults with subject matter experts. After careful consideration, she decides the benefits outweigh the costs and risks, and the company should invest in the software system.

This is vertical thinking: making a well-informed decision based on a thorough analysis of the data. Vertical thinking is especially useful in situations where there is a clear goal and a need for a precise, data-driven approach. Experts often use it in fields like finance, where decisions depend heavily on facts and figures.

Best Travel Insurance Companies

Best covid-19 travel insurance plans, horizontal thinking for problem-solving.

Let's move on to Sophie, the head of marketing for a fashion company. The company has been struggling to attract new customers.

Sophie sets up a brainstorming meeting with different department heads. They come up with a variety of creative solutions based on their diverse perspectives. One idea that stands out is to partner with a popular social media influencer to promote the company's products. The team works together to develop a plan to reach out to the influencer and negotiate a partnership.

This is horizontal thinking: working with a team to generate a variety of ideas and consider different perspectives to find an innovative solution. Horizontal thinking is a great approach for problem-solving when the problem is complex and there may be multiple solutions or approaches. Creative professionals, especially in marketing, advertising and designing, highly value this approach.

How Emotions Affect These Approaches

Over several years of coaching, I've noticed that emotions can play a significant role in problem-solving and decision-making, regardless of the thinking style used.

For instance, when using vertical thinking, emotions such as frustration and impatience can arise when a person or team has been working on a problem for an extended period with no clear solution. Conversely, when a team lands on a solution, there can be a sense of relief and accomplishment.

Similarly, when using horizontal thinking, emotions such as excitement and optimism can arise during a brainstorming session when new and creative ideas are being generated. However, disappointment or frustration can also arise when an idea fails to work.

It's important to recognize and acknowledge these emotions as they can affect team dynamics and ultimately, the success of the problem-solving process. I encourage leaders to create a safe and supportive environment where team members feel comfortable expressing their emotions and concerns.

Make These Thinking Styles Work For You

In my experience, a personalized approach that balances both vertical and horizontal thinking can help manage emotions and any other issues that arise effectively. By using vertical thinking to identify specific problems and solutions, and horizontal thinking to generate creative ideas, you can create a problem-solving process that encourages collaboration, creativity and innovation while minimizing negative emotions.

Are you ready to take your problem-solving and decision-making skills to the next level?

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Divya Parekh

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Critical Thinking and Decision-Making  - What is Critical Thinking?

Critical thinking and decision-making  -, what is critical thinking, critical thinking and decision-making what is critical thinking.

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Critical Thinking and Decision-Making: What is Critical Thinking?

Lesson 1: what is critical thinking, what is critical thinking.

Critical thinking is a term that gets thrown around a lot. You've probably heard it used often throughout the years whether it was in school, at work, or in everyday conversation. But when you stop to think about it, what exactly is critical thinking and how do you do it ?

Watch the video below to learn more about critical thinking.

Simply put, critical thinking is the act of deliberately analyzing information so that you can make better judgements and decisions . It involves using things like logic, reasoning, and creativity, to draw conclusions and generally understand things better.

illustration of the terms logic, reasoning, and creativity

This may sound like a pretty broad definition, and that's because critical thinking is a broad skill that can be applied to so many different situations. You can use it to prepare for a job interview, manage your time better, make decisions about purchasing things, and so much more.

The process

illustration of "thoughts" inside a human brain, with several being connected and "analyzed"

As humans, we are constantly thinking . It's something we can't turn off. But not all of it is critical thinking. No one thinks critically 100% of the time... that would be pretty exhausting! Instead, it's an intentional process , something that we consciously use when we're presented with difficult problems or important decisions.

Improving your critical thinking

illustration of the questions "What do I currently know?" and "How do I know this?"

In order to become a better critical thinker, it's important to ask questions when you're presented with a problem or decision, before jumping to any conclusions. You can start with simple ones like What do I currently know? and How do I know this? These can help to give you a better idea of what you're working with and, in some cases, simplify more complex issues.  

Real-world applications

illustration of a hand holding a smartphone displaying an article that reads, "Study: Cats are better than dogs"

Let's take a look at how we can use critical thinking to evaluate online information . Say a friend of yours posts a news article on social media and you're drawn to its headline. If you were to use your everyday automatic thinking, you might accept it as fact and move on. But if you were thinking critically, you would first analyze the available information and ask some questions :

  • What's the source of this article?
  • Is the headline potentially misleading?
  • What are my friend's general beliefs?
  • Do their beliefs inform why they might have shared this?

illustration of "Super Cat Blog" and "According to survery of cat owners" being highlighted from an article on a smartphone

After analyzing all of this information, you can draw a conclusion about whether or not you think the article is trustworthy.

Critical thinking has a wide range of real-world applications . It can help you to make better decisions, become more hireable, and generally better understand the world around you.

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Career Sidekick

26 Expert-Backed Problem Solving Examples – Interview Answers

Published: February 13, 2023

Interview Questions and Answers

Actionable advice from real experts:

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Biron Clark

Former Recruiter

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Dr. Kyle Elliott

Career Coach

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Hayley Jukes

Editor-in-Chief

Biron Clark

Biron Clark , Former Recruiter

Kyle Elliott , Career Coach

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Hayley Jukes , Editor

As a recruiter , I know employers like to hire people who can solve problems and work well under pressure.

 A job rarely goes 100% according to plan, so hiring managers are more likely to hire you if you seem like you can handle unexpected challenges while staying calm and logical.

But how do they measure this?

Hiring managers will ask you interview questions about your problem-solving skills, and they might also look for examples of problem-solving on your resume and cover letter. 

In this article, I’m going to share a list of problem-solving examples and sample interview answers to questions like, “Give an example of a time you used logic to solve a problem?” and “Describe a time when you had to solve a problem without managerial input. How did you handle it, and what was the result?”

  • Problem-solving involves identifying, prioritizing, analyzing, and solving problems using a variety of skills like critical thinking, creativity, decision making, and communication.
  • Describe the Situation, Task, Action, and Result ( STAR method ) when discussing your problem-solving experiences.
  • Tailor your interview answer with the specific skills and qualifications outlined in the job description.
  • Provide numerical data or metrics to demonstrate the tangible impact of your problem-solving efforts.

What are Problem Solving Skills? 

Problem-solving is the ability to identify a problem, prioritize based on gravity and urgency, analyze the root cause, gather relevant information, develop and evaluate viable solutions, decide on the most effective and logical solution, and plan and execute implementation. 

Problem-solving encompasses other skills that can be showcased in an interview response and your resume. Problem-solving skills examples include:

  • Critical thinking
  • Analytical skills
  • Decision making
  • Research skills
  • Technical skills
  • Communication skills
  • Adaptability and flexibility

Why is Problem Solving Important in the Workplace?

Problem-solving is essential in the workplace because it directly impacts productivity and efficiency. Whenever you encounter a problem, tackling it head-on prevents minor issues from escalating into bigger ones that could disrupt the entire workflow. 

Beyond maintaining smooth operations, your ability to solve problems fosters innovation. It encourages you to think creatively, finding better ways to achieve goals, which keeps the business competitive and pushes the boundaries of what you can achieve. 

Effective problem-solving also contributes to a healthier work environment; it reduces stress by providing clear strategies for overcoming obstacles and builds confidence within teams. 

Examples of Problem-Solving in the Workplace

  • Correcting a mistake at work, whether it was made by you or someone else
  • Overcoming a delay at work through problem solving and communication
  • Resolving an issue with a difficult or upset customer
  • Overcoming issues related to a limited budget, and still delivering good work through the use of creative problem solving
  • Overcoming a scheduling/staffing shortage in the department to still deliver excellent work
  • Troubleshooting and resolving technical issues
  • Handling and resolving a conflict with a coworker
  • Solving any problems related to money, customer billing, accounting and bookkeeping, etc.
  • Taking initiative when another team member overlooked or missed something important
  • Taking initiative to meet with your superior to discuss a problem before it became potentially worse
  • Solving a safety issue at work or reporting the issue to those who could solve it
  • Using problem solving abilities to reduce/eliminate a company expense
  • Finding a way to make the company more profitable through new service or product offerings, new pricing ideas, promotion and sale ideas, etc.
  • Changing how a process, team, or task is organized to make it more efficient
  • Using creative thinking to come up with a solution that the company hasn’t used before
  • Performing research to collect data and information to find a new solution to a problem
  • Boosting a company or team’s performance by improving some aspect of communication among employees
  • Finding a new piece of data that can guide a company’s decisions or strategy better in a certain area

Problem-Solving Examples for Recent Grads/Entry-Level Job Seekers

  • Coordinating work between team members in a class project
  • Reassigning a missing team member’s work to other group members in a class project
  • Adjusting your workflow on a project to accommodate a tight deadline
  • Speaking to your professor to get help when you were struggling or unsure about a project
  • Asking classmates, peers, or professors for help in an area of struggle
  • Talking to your academic advisor to brainstorm solutions to a problem you were facing
  • Researching solutions to an academic problem online, via Google or other methods
  • Using problem solving and creative thinking to obtain an internship or other work opportunity during school after struggling at first

How To Answer “Tell Us About a Problem You Solved”

When you answer interview questions about problem-solving scenarios, or if you decide to demonstrate your problem-solving skills in a cover letter (which is a good idea any time the job description mentions problem-solving as a necessary skill), I recommend using the STAR method.

STAR stands for:

It’s a simple way of walking the listener or reader through the story in a way that will make sense to them. 

Start by briefly describing the general situation and the task at hand. After this, describe the course of action you chose and why. Ideally, show that you evaluated all the information you could given the time you had, and made a decision based on logic and fact. Finally, describe the positive result you achieved.

Note: Our sample answers below are structured following the STAR formula. Be sure to check them out!

EXPERT ADVICE

what is problem solving & decision making

Dr. Kyle Elliott , MPA, CHES Tech & Interview Career Coach caffeinatedkyle.com

How can I communicate complex problem-solving experiences clearly and succinctly?

Before answering any interview question, it’s important to understand why the interviewer is asking the question in the first place.

When it comes to questions about your complex problem-solving experiences, for example, the interviewer likely wants to know about your leadership acumen, collaboration abilities, and communication skills, not the problem itself.

Therefore, your answer should be focused on highlighting how you excelled in each of these areas, not diving into the weeds of the problem itself, which is a common mistake less-experienced interviewees often make.

Tailoring Your Answer Based on the Skills Mentioned in the Job Description

As a recruiter, one of the top tips I can give you when responding to the prompt “Tell us about a problem you solved,” is to tailor your answer to the specific skills and qualifications outlined in the job description. 

Once you’ve pinpointed the skills and key competencies the employer is seeking, craft your response to highlight experiences where you successfully utilized or developed those particular abilities. 

For instance, if the job requires strong leadership skills, focus on a problem-solving scenario where you took charge and effectively guided a team toward resolution. 

By aligning your answer with the desired skills outlined in the job description, you demonstrate your suitability for the role and show the employer that you understand their needs.

Amanda Augustine expands on this by saying:

“Showcase the specific skills you used to solve the problem. Did it require critical thinking, analytical abilities, or strong collaboration? Highlight the relevant skills the employer is seeking.”  

Interview Answers to “Tell Me About a Time You Solved a Problem”

Now, let’s look at some sample interview answers to, “Give me an example of a time you used logic to solve a problem,” or “Tell me about a time you solved a problem,” since you’re likely to hear different versions of this interview question in all sorts of industries.

The example interview responses are structured using the STAR method and are categorized into the top 5 key problem-solving skills recruiters look for in a candidate.

1. Analytical Thinking

what is problem solving & decision making

Situation: In my previous role as a data analyst , our team encountered a significant drop in website traffic.

Task: I was tasked with identifying the root cause of the decrease.

Action: I conducted a thorough analysis of website metrics, including traffic sources, user demographics, and page performance. Through my analysis, I discovered a technical issue with our website’s loading speed, causing users to bounce. 

Result: By optimizing server response time, compressing images, and minimizing redirects, we saw a 20% increase in traffic within two weeks.

2. Critical Thinking

what is problem solving & decision making

Situation: During a project deadline crunch, our team encountered a major technical issue that threatened to derail our progress.

Task: My task was to assess the situation and devise a solution quickly.

Action: I immediately convened a meeting with the team to brainstorm potential solutions. Instead of panicking, I encouraged everyone to think outside the box and consider unconventional approaches. We analyzed the problem from different angles and weighed the pros and cons of each solution.

Result: By devising a workaround solution, we were able to meet the project deadline, avoiding potential delays that could have cost the company $100,000 in penalties for missing contractual obligations.

3. Decision Making

what is problem solving & decision making

Situation: As a project manager , I was faced with a dilemma when two key team members had conflicting opinions on the project direction.

Task: My task was to make a decisive choice that would align with the project goals and maintain team cohesion.

Action: I scheduled a meeting with both team members to understand their perspectives in detail. I listened actively, asked probing questions, and encouraged open dialogue. After carefully weighing the pros and cons of each approach, I made a decision that incorporated elements from both viewpoints.

Result: The decision I made not only resolved the immediate conflict but also led to a stronger sense of collaboration within the team. By valuing input from all team members and making a well-informed decision, we were able to achieve our project objectives efficiently.

4. Communication (Teamwork)

what is problem solving & decision making

Situation: During a cross-functional project, miscommunication between departments was causing delays and misunderstandings.

Task: My task was to improve communication channels and foster better teamwork among team members.

Action: I initiated regular cross-departmental meetings to ensure that everyone was on the same page regarding project goals and timelines. I also implemented a centralized communication platform where team members could share updates, ask questions, and collaborate more effectively.

Result: Streamlining workflows and improving communication channels led to a 30% reduction in project completion time, saving the company $25,000 in operational costs.

5. Persistence 

Situation: During a challenging sales quarter, I encountered numerous rejections and setbacks while trying to close a major client deal.

Task: My task was to persistently pursue the client and overcome obstacles to secure the deal.

Action: I maintained regular communication with the client, addressing their concerns and demonstrating the value proposition of our product. Despite facing multiple rejections, I remained persistent and resilient, adjusting my approach based on feedback and market dynamics.

Result: After months of perseverance, I successfully closed the deal with the client. By closing the major client deal, I exceeded quarterly sales targets by 25%, resulting in a revenue increase of $250,000 for the company.

Tips to Improve Your Problem-Solving Skills

Throughout your career, being able to showcase and effectively communicate your problem-solving skills gives you more leverage in achieving better jobs and earning more money .

So to improve your problem-solving skills, I recommend always analyzing a problem and situation before acting.

 When discussing problem-solving with employers, you never want to sound like you rush or make impulsive decisions. They want to see fact-based or data-based decisions when you solve problems.

Don’t just say you’re good at solving problems. Show it with specifics. How much did you boost efficiency? Did you save the company money? Adding numbers can really make your achievements stand out.

To get better at solving problems, analyze the outcomes of past solutions you came up with. You can recognize what works and what doesn’t.

Think about how you can improve researching and analyzing a situation, how you can get better at communicating, and deciding on the right people in the organization to talk to and “pull in” to help you if needed, etc.

Finally, practice staying calm even in stressful situations. Take a few minutes to walk outside if needed. Step away from your phone and computer to clear your head. A work problem is rarely so urgent that you cannot take five minutes to think (with the possible exception of safety problems), and you’ll get better outcomes if you solve problems by acting logically instead of rushing to react in a panic.

You can use all of the ideas above to describe your problem-solving skills when asked interview questions about the topic. If you say that you do the things above, employers will be impressed when they assess your problem-solving ability.

More Interview Resources

  • 3 Answers to “How Do You Handle Stress?”
  • How to Answer “How Do You Handle Conflict?” (Interview Question)
  • Sample Answers to “Tell Me About a Time You Failed”

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About the Author

Biron Clark is a former executive recruiter who has worked individually with hundreds of job seekers, reviewed thousands of resumes and LinkedIn profiles, and recruited for top venture-backed startups and Fortune 500 companies. He has been advising job seekers since 2012 to think differently in their job search and land high-paying, competitive positions. Follow on Twitter and LinkedIn .

Read more articles by Biron Clark

About the Contributor

Kyle Elliott , career coach and mental health advocate, transforms his side hustle into a notable practice, aiding Silicon Valley professionals in maximizing potential. Follow Kyle on LinkedIn .

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About the Editor

Hayley Jukes is the Editor-in-Chief at CareerSidekick with five years of experience creating engaging articles, books, and transcripts for diverse platforms and audiences.

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COMMENTS

  1. Decision-Making and Problem-Solving

    Decision-making is perhaps best thought of as a key part of problem-solving: one part of the overall process. Our approach at Skills You Need is to set out a framework to help guide you through the decision-making process. You won't always need to use the whole framework, or even use it at all, but you may find it useful if you are a bit ...

  2. Decision-Making and Problem-Solving: What's the Difference?

    Decision-making is the process of choosing a solution based on your judgment, situation, facts, knowledge or a combination of available data. The goal is to avoid potential difficulties. Identifying opportunity is an important part of the decision-making process. Making decisions is often a part of problem-solving.

  3. The Problem-Solving Process

    Problem-solving is a mental process that involves discovering, analyzing, and solving problems. The ultimate goal of problem-solving is to overcome obstacles and find a solution that best resolves the issue. The best strategy for solving a problem depends largely on the unique situation. In some cases, people are better off learning everything ...

  4. Decision Making vs. Problem Solving

    It is a cognitive process that individuals use to make choices and reach conclusions. On the other hand, problem solving refers to the process of finding solutions to specific issues or challenges. It involves identifying, analyzing, and resolving problems to achieve desired outcomes. Both decision making and problem solving share the purpose ...

  5. Making the Difference: Problem Solving vs Decision Making

    Problem-solving and decision making involve a series of steps that can help ensure the best possible outcome. The first step is to identify the problem or opportunity, then analyze it by gathering relevant information and evaluating potential solutions. After considering all options, select an appropriate solution and develop an action plan for ...

  6. What is the Decision-Making Process? Definition, Steps, Examples, and

    Effective decision-making often requires critical thinking, problem-solving skills, creativity, and good judgment. What is the First Step of Decision Making Process. The first step of the decision-making process is the identification of the decision that needs to be made. This involves recognizing a situation that requires a choice or action.

  7. What Is Problem Solving?

    The first step in solving a problem is understanding what that problem actually is. You need to be sure that you're dealing with the real problem - not its symptoms. For example, if performance in your department is substandard, you might think that the problem lies with the individuals submitting work. However, if you look a bit deeper, the ...

  8. Effective Problem-Solving and Decision-Making

    There are 4 modules in this course. Problem-solving and effective decision-making are essential skills in today's fast-paced and ever-changing workplace. Both require a systematic yet creative approach to address today's business concerns. This course will teach an overarching process of how to identify problems to generate potential ...

  9. Problem Solving and Decision Making

    Decision making is the process of selecting and choosing one action or behavior out of several alternatives. Like problem solving, decision making involves the coordination of memories and executive resources. Research on decision making has paid particular attention to the cognitive biases that account for suboptimal decisions and decisions ...

  10. Decision making

    decision making, process and logic through which individuals arrive at a decision. Different models of decision making lead to dramatically different analyses and predictions. Decision-making theories range from objective rational decision making, which assumes that individuals will make the same decisions given the same information and ...

  11. 8 Steps in the Decision-Making Process

    1. Frame the Decision. Pinpointing the issue is the first step to initiating the decision-making process. Ensure the problem is carefully analyzed, clearly defined, and everyone involved in the outcome agrees on what needs to be solved. This process will give your team peace of mind that each key decision is based on extensive research and ...

  12. What is Problem Solving? Steps, Process & Techniques

    Finding a suitable solution for issues can be accomplished by following the basic four-step problem-solving process and methodology outlined below. Step. Characteristics. 1. Define the problem. Differentiate fact from opinion. Specify underlying causes. Consult each faction involved for information. State the problem specifically.

  13. Decision-making

    Problem solving is the process of investigating the given information and finding all possible solutions through invention or discovery. Traditionally, it is argued that problem solving is a step towards decision making, so that the information gathered in that process may be used towards decision-making. [page needed]

  14. 7 important steps in the decision making process

    Step 3: Identify alternative solutions. This step requires you to look for many different solutions for the problem at hand. Finding more than one possible alternative is important when it comes to business decision-making, because different stakeholders may have different needs depending on their role.

  15. The 7 steps of Effective Problem Solving and Decision Making

    Here we see the two skills of problem solving and decision making coming together. The two skills are vital to managing business risks as well as solving the problem. 6. Monitor and measure the plan. Having evolved through the five steps to this stage, you mustn't take your eye off the ball as it were.

  16. Problem-Solving and Decision-Making

    Problem-solving is a more analytical process than decision-making. Problem-solving is more process-related, while decision-making is more contextual. Problem-solving is directed at a specific goal or discrete answer. Problem-solving and decision-making may have consequences that are not always predictable or sequential.

  17. How to Make Great Decisions, Quickly

    Great decisions are shaped by consideration of many different viewpoints. This doesn't mean you should seek out everyone's opinion. The right people with the relevant expertise need to clearly ...

  18. Decision-making and Problem-solving

    Decision making has much in common with problem solving. In problem solving you identify and evaluate solution paths; in decision making you make a similar discovery and evaluation of alternatives. The crux of decision making, then, is the careful identification and evaluation of alternatives.

  19. Decision-Making Process: Steps, Tips, and Strategies

    Step 1: Identify the decision. Most of us are eager to tie on our superhero capes and jump into problem-solving mode — especially if our team is depending on a solution. But you can't solve a problem until you have a full grasp on what it actually is.

  20. What Are Critical Thinking Skills and Why Are They Important?

    Problem-solving: Problem-solving is perhaps the most important skill that critical thinkers can possess. The ability to solve issues and bounce back from conflict is what helps you succeed, be a leader, and effect change. One way to properly solve problems is to first recognize there's a problem that needs solving.

  21. Problem Solving And Decision Making: 10 Hacks That Managers Love

    Here is a brief explanation of the difference between problem solving and decision making: Problem solving: Problem solving is identifying, analyzing, and resolving problems or issues. It involves specifying the root cause of a problem and finding solutions to overcome it. Problem solving requires critical thinking, creativity, and analytical ...

  22. Tips And Techniques For Problem-Solving And Decision-Making

    The ability to solve problems and make decisions quickly and effectively can mean the difference between success and failure. There are two main approaches to problem-solving and decision-making ...

  23. Critical Thinking and Decision-Making: What is Critical Thinking?

    Simply put, critical thinking is the act of deliberately analyzing information so that you can make better judgements and decisions. It involves using things like logic, reasoning, and creativity, to draw conclusions and generally understand things better. This may sound like a pretty broad definition, and that's because critical thinking is a ...

  24. Problem Solving

    Problem Solving. 56 Resources. Problems can occur at any time, and solutions often need to be found quickly. Delve into this wide variety of tools that will help you to identify the source of a problem, brainstorm solutions and select the best option.

  25. Boost Leadership Problem-Solving with Decision-Making Skills

    Problem-solving is an indispensable skill in leadership, directly tied to decision-making abilities. Enhancing your decision-making skills can significantly improve your capacity to tackle complex ...

  26. WHAT ARE PROBLEM SOLVING AND DECISION MAKING SKILLS?

    Problem-solving and decision-making are two aspects of critical thinking. They go hand in hand because without solving a problem, it becomes difficult to make a decision.

  27. 26 Expert-Backed Problem Solving Examples

    Problem-solving involves identifying, prioritizing, analyzing, and solving problems using a variety of skills like critical thinking, creativity, decision making, and communication. Describe the Situation, Task, Action, and Result ( STAR method ) when discussing your problem-solving experiences.

  28. Problem-Solving Model for Decision Making with High-Incidence

    The problem-solving model (PSM) is used in the Minneapolis Public Schools to guide decisions regarding: (1) interventions in general education, (2) referral to special education, and (3) evaluation for special education eligibility for high-incidence disability areas.

  29. Online Decision Making Courses

    Develop your problem-solving and decision-making. The process of making decisions is often related to solving problems. As such, both skills are highly valued by employers across all industries, as well as being useful in your day-to-day life. An online decision-making course can help you identify the right problem to solve, as well as how to ...