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Identifying and Resolving Business Issues

This entry discusses the “art” of identifying, addressing, and resolving business issues. Every organization has unforeseen or unexpected issues and challenges. Failure in providing solutions to business issues may adversely impact the organization in terms of employee morale, productivity, and effectiveness.

Identifying Business Issues

I characterize business resolution as an art (as opposed to a science) because the human element is involved. Business issues are typically not a part of the normal daily operations. To resolve them, someone within the organization must initiate a response to curtail, eliminate, or maybe even escalate the issue depending upon a desired or expected outcome.

In today’s business environment, some of the prevalent business issues are:
• A decrease in profitability or stock valuation
• Insufficient communication on a newly-implemented strategy
• Turnover of talented people (yes, talented employees will leave a poorly run company in a bad employment environment)
• Lack of vision from the organization’s leadership
• Employee fear and anxiety as a result of corporate downsizing.

A business issue can be generated from both inside and outside the organization. A business issue may arise from an external variable such as an economic downturn; a natural disaster which may hinder normal operations and business continuity; or even a shift in societal perceptions of the business or the business industry (i.e. banking and lending institutions). Business issues may also arise from internal variables such as union disputes; lack of skilled employees within the workforce; or changes in employee morale.

One basic activity in problem solving is to identify the root cause of the problem. Implementing a business solution without addressing the primary cause will be expensive and potentially result in a re-occurrence of the problem. For example, hiring a new organization manager that is not a fit in terms of culture, values, and attitudes may negatively affect employee productivity and effectiveness. Resolving the issue may be more than replacing the manager who was not a fit. The root cause may be addressing the leader(s) who felt hiring this manager was a good idea.

Another example would be reducing employee accidents in a manufacturing company. Whereas ensuring the equipment and working conditions are safe will help, the main issue may be providing sufficient training on the proper handling and operation of the equipment. Every issue must be thoroughly investigated, along with its risks and opportunities, to accurately address resolution.

Employee Involvement in Problem Solving

Whatever the scenario, research has shown involving employees in the problem solving process has a positive effect on morale and productivity. First and most important, involving employees ensure those closest to the issue can offer resolution ideas from their first-hand experience. Second, involving employees demonstrates leadership confidence in their staff. Third, involving employees ensures that they have “skin in the game”, and a vested interest in an accurate, effective solution.

Failure in Solving Business Issues

Applying the aforementioned strategy will greatly enhance the probability of business resolution. Conversely, neglecting the strategy of involving employees will result in failure. Some other things that will prevent business issue resolution and adversely affect productivity, morale, and effectiveness are:

1. Focusing solely on solving the problem at hand rather than addressing the issue that initially caused the problem. Fixing the immediate issue while allowing the true root cause to remain is expensive. The same problem may occur again.

2. Every organization should instill a discipline of problem resolution which includes a common, systemic approach to problem solving. When a problem arises, all members of the organization should be well-versed in the organization’s process and policy toward resolution. This common approach will facilitate success because employees will have the knowledge and experience on delivering the common organizational procedure.

3. Finally, the organization must accurately assess the risks and benefits of problem solving and business resolution. Will solving one problem result in compounding another problem? Will solving a problem allow the organization to readily return to a state of business as usual? Will issue resolution of a business problem have a positive impact on employee morale and productivity?

More information on leadership and resolving business issues can be reviewed in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing).

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