Determining the Problem

Determining the precise problem to be solved is the first and possibly most important step can be seen in the fact that problems are subjective and relative to the decision maker. For example, managers may view differently the problem (gap) between the goal to be attained (terminal state) and the current situation (existing state). One manager may be aware that a gap or problem exists, while another manager may feel that current activities are right on target.

* Different alternatives will lead to different possible outcomes or consequences. This can be expressed symbolically as Y₁ A₁

 : thus, the outcome,  Y₁ if alternative A₁ is followed

At this stage, time and effort should be expended only in gathering data and information that are relevant to identification of the real problem. The problem should be defined precisely and its magnitude understood. Otherwise, managers may concentrate on symptoms related to the problem rather than on the actual problem itself.

Of course, if only symptoms are considered, the basic problem will continue to come up over and over again. One way of zeroing in on the correct problem is to ask, "What is to be achieved?" For example, analyzing the gap between the objective of achieving $5 million sales this year while current sales are only $1 million is a good way of determining the true problem to be solved.