Why is Problem Solving Important in Management?

Here are our thoughts on why is problem-solving important in management? Often, leadership is about problem-solving, with the ability to meet and tackle difficult challenges. And a knack of making the right decisions under pressure. No one can see into the future and be exactly right when envisaging what’s to come. However, this is precisely what’s expected of senior management teams and their leaders to do.

They are the ones asked to identify opportunities, risks, anticipate the future, read the trends and then provide strategic direction to the rest of us in the business. If they succeed they will be rewarded and applauded, and if they fail to read the future and solve the problems that get in the way, it’s their responsibility and asked if they would consider another role outside the company. 

Make the right decisions

When it comes to problem-solving, a good leader thinks in terms of barriers and goals. What are the short and long-term targets? And what obstacles are going to get in the way of them? As a leader, you need the vision and clarity of mind to isolate these challenges and select the actions that will deliver the best outcome. Usually, a business aims to maximise profits and of course, create a return for shareholders. But to achieve this significant objective, it’s wise to set and accomplish a series of mini-targets. Raising profits is easier said than done, and problems like the need to improve service quality, customer loyalty, productivity, employee retention and the identification of new efficiencies to reduce costs will influence whether you are going to win.

Your job to identify the best approach

There will be many ways to get to the same results, and as a leader and problem solving, it’s your job to identify the best approach open to you. Taking in all the aspects that can get in the way. You should be able to foresee obstacles that may get in the form of success, and then think creatively to get them out of your way. If this is not possible, then you need to design new ways of smashing through the problems. 


Leaders need to be able to solve problems quickly. Possibly coming to the same conclusions others will also come up with. But you have had done it in the fraction of the time and given your business a competitive edge. While your competitors are still wondering what to do, you have used problem-solving skills to be more responsive and agile to the situation. It’s not just solving problems that excellent leader need to be good at, but also detecting potential problems, finding the insight and research and then come to well thought out decisions. However, the leader has to make the final decision on what to do. They take the responsibility, so they use their business savvy, problem-solving techniques and analysis tools to reduce uncertainty before making the final decision. 

So finally, why is problem-solving important in management?

So top business leaders need to be able to quickly:

  • Detect potential problems
  • Carry out the necessary research and analysis
  • Come to a decision
  • Use excellent business instincts, have courage in their convictions,
  • Understand that they will not always shave all the answers
  • Bring relevant people into the decision making process. Those in the business or those better placed external authorities who would help make the decision.

Decisions taken by senior leaders will have a significant bearing on all the people within the organisation. Not only the directors and shareholders. But also the employees, suppliers and customers. They need to develop excellent problem-solving techniques, isolate and analyse the data available to them and take counsel of other people who may have a better view on the subject. Leaders will be judged on the outcomes of their actions and indeed, any lack of effort.

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