What is the real problem?

what is the real problemIt is a common challenge in the business world and in life. Providing a solution without knowing the real problem. That was the topic of conversation yesterday with a colleague. We were discussing some recent challenges and the striking and consistent thing about the conversation was – in each point of discussion, the problem being “solved” was not the real problem.

Let me be more specific by using an example that I often run across. The solution – we need a new ERP system because we don’t understand our financials. Many times the issue isn’t that the system is a problem, the issue is that no one ever spent the time to design reporting that helps people understand what is going on in the company and provides information (not data) for decision making.

When I run across this type of situation, I typically ask a number of questions designed to get at the real problem. In the case above, it may be that the only real solution needed is a reporting tool (generally, a much less expensive and many times a faster and more flexible solution). The key is to understand what the real problem is. How are you getting to the real problems in your world?

Posted in Change Management, Financial Management, Strategy.

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