Problem management operates through two distinct approaches: reactive management addresses issues after they occur, while active management prevents problems before they emerge. The problem management cycle follows seven sequential steps: acknowledgment, fact-finding, problem definition, solutioning, implementation, re-analysis, and adjustment. Acknowledgment represents the critical foundation because it secures stakeholder buy-in and allocates necessary resources. Small businesses particularly depend on resource-conscious decision-making frameworks. Understanding which management approach aligns with organizational capacity determines long-term operational success and efficiency gains.
- Acknowledgment
- Fact-finding
- Defining the problem
- Solutioning
- Implementation
- Re-analysis
- Adjustment
- Repeating step 6 & 7; if necessary.
Let’s talk about THE most important step: Acknowledgement. Yes, let me explain the “WHY.” Small businesses are by definition “small”; hence the conversation MUST include “resources.” It is not out of line to say that SMBs have more often than not made “resource availability” a major part of any decision-making. As such, it is even harder to get the stakeholders to acknowledge that an actual problem that requires more than just the usual “workaround.” Let’s take a step back and think about our personal lives and decision-making process; does it sound familiar? How often do you avoid a particular topic because of your awareness of associated costs that were NOT planned for? That is no different than the stakeholders’ occasional reluctance. This factor goes beyond the main stakeholders; it can go as deep as frontline team members. But there is more: financial factors are just the beginning. Here are a few of those factors:
- Organizational Type and Size
- It dictates the quantity and depth of different decision hierarchies and organizational politics. Read: how many people are involved?
- Leadership type and style
- It dictates existing processes. Read: is analytic criticism a part of the style?
- Economic output
- It dictates output quantity and quality. Read: can it take president over ROI-producing activities?
Many more factors can have micro and macro impacts on the “acknowledgment” part of the problem-solving cycle. In the coming weeks, we will discuss various solutions that can assist in getting organizational acknowledgment of a problem. Until next time – Visit our Management Consulting Blog or my site
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