Death and taxes may be life’s certainties, but you can be pretty sure to face a few other problems along the way — especially if you run your own small business. Thankfully, unlike death and taxes, there are ways around most business problems if you have the ingenuity to figure them out.
In fact, there’s a pretty good chance that problem-solving is one of the reasons you got into business in the first place. Entrepreneurs, just like engineers, are problem-solvers at heart: they have a passion for an elegant solution and they chomp at the bit for a puzzle to work on. However, enthusiasm and passion will only get you so far when you’re problem-solving. You also need techniques if you’re to keep things running smoothly and negotiate those little everyday challenges your business throws at you. The bigger challenges ones, too.
A good place to start with such techniques? Know thyself. There are three types of problem-solver, and knowing which one you are can help you figure out the most effective way to improve your game.
The first type of problem-solver is the ‘intuitive’ type. While there are some advantages to being the intuitive type of problem-solver (particularly if you have great intuition!), if this is you then you still have a long way to go to become excellent at figuring out daily challenges. The problem is that often, what feels like intuition is in fact dependent on a great deal of assumption. Using your instinct to guide your way through problems is far from a failsafe way of ensuring you’ll be successful. In fact, it is a pretty unprofessional way to go about conducting your business.
Sure, an entrepreneur needs to trust their instincts. And good instincts can make the difference between an average entrepreneur and a great one. But approaching problems systematically when possible will help you to hone that intuition. Start by setting yourself a minimum timescale and a deadline to solve the problem. The minimum timescale prevents you jumping into a poor solution by reacting instinctively. The deadline trains you to get on with solving the problem instead of procrastinating or over-thinking it.
Use that timeframe to ask yourself four questions: What is the problem? What are the variables? What are the consequences? And what are your instincts? That way, you get to use your intuition — but only within a systematic structure that makes sure you make it work for you.
The second type is the ‘inconsistent’ problem-solver. If the intuitive type is over-confident in their instinct, the inconsistent type lacks confidence overall. By failing to commit to a methodology of problem-solving, the inconsistent type can flounder. A system only works with a degree of rigidity. In short, the inconsistent problem-solver will benefit from figuring out what are their strengths and where they need work, and sticking at their attempts until a learning breakthrough is made.
Along with the third type — the ‘systematic’ problem solver — both of the above kinds will benefit from learning different ways to approach, analyse, and solve problems. This type of problem solver is methodical but driven. They research, analyze, and use tools to find alternative solutions to a problem, and when it is all over they think about how to prevent similar problems from arising again in the future. They develop their own tried-and-tested tools for problem-solving, and they learn existing methods inside out so that they become second nature.
CATWOE analysis is one such method. CATWOE stands for Clients, Actors, Transformation, Worldview, Owner, Environment. It is a six-step way to work your way through a challenge, almost like a map. Figure out who the problem effects, and who will deliver the solution. Figure out what needs to change — and the results of these changes. And identify who us ultimately responsible for the problem, and what other complications require your consideration.
CATWOE is just one problem-solving method. It won’t work in every situation or for every business owner, but it is an important tool to have in your belt. For a few more approaches — and to figure out which type of problem-solver you are — check out this new guide to problem-solving from CashNetUSA.
