and innovative problem solving

Five routes to more innovative problem solving

Rob McEwen had a problem. The chairman and chief executive officer of Canadian mining group Goldcorp knew that its Red Lake site could be a money-spinner—a mine nearby was thriving—but no one could figure out where to find high-grade ore. The terrain was inaccessible, operating costs were high, and the unionized staff had already gone on strike. In short, McEwen was lumbered with a gold mine that wasn’t a gold mine .

Then inspiration struck. Attending a conference about recent developments in IT, McEwen was smitten with the open-source revolution. Bucking fierce internal resistance, he created the Goldcorp Challenge: the company put Red Lake’s closely guarded topographic data online and offered $575,000 in prize money to anyone who could identify rich drill sites. To the astonishment of players in the mining sector, upward of 1,400 technical experts based in 50-plus countries took up the problem. The result? Two Australian teams, working together, found locations that have made Red Lake one of the world’s richest gold mines. “From a remote site, the winners were able to analyze a database and generate targets without ever visiting the property,” McEwen said. “It’s clear that this is part of the future.” 1 1. See Linda Tischler, “ He struck gold on the Net (really) ,” fastcompany.com, May 31, 2002.

McEwen intuitively understood the value of taking a number of different approaches simultaneously to solving difficult problems. A decade later, we find that this mind-set is ever more critical: business leaders are operating in an era when forces such as technological change and the historic rebalancing of global economic activity from developed to emerging markets have made the problems increasingly complex, the tempo faster, the markets more volatile, and the stakes higher. The number of variables at play can be enormous, and free-flowing information encourages competition, placing an ever-greater premium on developing innovative, unique solutions.

This article presents an approach for doing just that. How? By using what we call flexible objects for generating novel solutions, or flexons , which provide a way of shaping difficult problems to reveal innovative solutions that would otherwise remain hidden. This approach can be useful in a wide range of situations and at any level of analysis, from individuals to groups to organizations to industries. To be sure, this is not a silver bullet for solving any problem whatever. But it is a fresh mechanism for representing ambiguous, complex problems in a structured way to generate better and more innovative solutions.

The flexons approach

Finding innovative solutions is hard. Precedent and experience push us toward familiar ways of seeing things, which can be inadequate for the truly tough challenges that confront senior leaders. After all, if a problem can be solved before it escalates to the C-suite, it typically is. Yet we know that teams of smart people from different backgrounds are more likely to come up with fresh ideas more quickly than individuals or like-minded groups do. 2 2. Lu Hong and Scott Page, “Groups of diverse problem solvers can outperform groups of high-ability problem solvers,” Proceedings of the National Academy of Sciences of the United States of America , 2004, Volume 101, pp. 16385–89. For more on the benefits of open innovation, see John Seely Brown and John Hagel III, “ Creation nets: Getting the most from open innovation ,” McKinsey Quarterly , May 2006. When a diverse range of experts—game theorists to economists to psychologists—interact, their approach to problems is different from those that individuals use. The solution space becomes broader, increasing the chance that a more innovative answer will be found.

Obviously, people do not always have think tanks of PhDs trained in various approaches at their disposal. Fortunately, generating diverse solutions to a problem does not require a diverse group of problem solvers. This is where flexons come into play. While traditional problem-solving frameworks address particular problems under particular conditions—creating a compensation system, for instance, or undertaking a value-chain analysis for a vertically integrated business—they have limited applicability. They are, if you like, specialized lenses. Flexons offer languages for shaping problems, and these languages can be adapted to a much broader array of challenges. In essence, flexons substitute for the wisdom and experience of a group of diverse, highly educated experts.

To accommodate the world of business problems, we have identified five flexons, or problem-solving languages. Derived from the social and natural sciences, they help users understand the behavior of individuals, teams, groups, firms, markets, institutions, and whole societies. We arrived at these five through a lengthy process of synthesizing both formal literatures and the private knowledge systems of experts, and trial and error on real problems informed our efforts. We don’t suggest that these five flexons are exhaustive—only that we have found them sufficient, in concert, to tackle very difficult problems. While serious mental work is required to tailor the flexons to a given situation, and each retains blind spots arising from its assumptions, multiple flexons can be applied to the same problem to generate richer insights and more innovative solutions.

Networks flexon

Imagine a map of all of the people you know, ranked by their influence over you. It would show close friends and vague acquaintances, colleagues at work and college roommates, people who could affect your career dramatically and people who have no bearing on it. All of them would be connected by relationships of trust, friendship, influence, and the probabilities that they will meet. Such a map is a network that can represent anything from groups of people to interacting product parts to traffic patterns within a city—and therefore can shape a whole range of business problems.

For example, certain physicians are opinion leaders who can influence colleagues about which drugs to prescribe. To reveal relationships among physicians and help identify those best able to influence drug usage, a pharmaceutical company launching a product could create a network map of doctors who have coauthored scientific articles. By targeting clusters of physicians who share the same ideas and (one presumes) have tight interactions, the company may improve its return on investments compared with what traditional mass-marketing approaches would achieve. The network flexon helps decompose a situation into a series of linked problems of prediction (how will ties evolve?) and optimization (how can we maximize the relational advantage of a given agent?) by presenting relationships among entities. These problems are not simple, to be sure. 3 3. For more on network analysis, see Robert L. Cross, Roger D. Martin, and Leigh M. Weiss, “ Mapping the value of employee collaboration ,” McKinsey Quarterly , August 2006. For more on the role of brokers in filling organizational gaps, see Ronald S. Burt, Structural Holes: The Social Structure of Competition , first edition, Cambridge, MA: Harvard University Press, 1992. But they are well-defined and structured—a fundamental requirement of problem solving.

Evolutionary flexon

Evolutionary algorithms have won games of chess and solved huge optimization problems that overwhelm most computational resources. Their success rests on the power of generating diversity by introducing randomness and parallelization into the search procedure and quickly filtering out suboptimal solutions. Representing entities as populations of parents and offspring subject to variation, selection, and retention is useful in situations where businesses have limited control over a large number of important variables and only a limited ability to calculate the effects of changing them, whether they’re groups of people, products, project ideas, or technologies. Sometimes, you must make educated guesses, test, and learn. But even as you embrace randomness, you can harness it to produce better solutions to complex problems.

That’s because not all “guessing strategies” are created equal. We have crucial choices to make: generating more guesses (prototypes, ideas, or business models) or spending more time developing each guess or deciding which guesses will survive. Consider a consumer-packaged-goods company trying to determine if a new brand of toothpaste will be a hit or an expensive failure. Myriad variables—everything from consumer habits and behavior to income, geography, and the availability of clean water—interact in multiple ways. The evolutionary flexon may suggest a series of low-cost, small-scale experiments involving product variants pitched to a few well-chosen market segments (for instance, a handful of representative customers high in influence and skeptical about new ideas). With every turn of the evolutionary-selection crank, the company’s predictions will improve.

Decision-agent flexon

To the economic theorist, social behavior is the outcome of interactions among individuals, each of whom tries to select the best possible means of achieving his or her ends. The decision-agent flexon takes this basic logic to its limit by providing a way of representing teams, firms, and industries as a series of competitive and cooperative interactions among agents. The basic approach is to determine the right level of analysis—firms, say. Then you ascribe to them beliefs and motives consistent with what you know (and think they know), consider how their payoffs change through the actions of others, determine the combinations of strategies they might collectively use, and seek an equilibrium where no agent can unilaterally deviate from the strategy without becoming worse off.

Game theory is the classic example, but it’s worth noting that a decision-agent flexon can also incorporate systematic departures from rationality: impulsiveness, cognitive shortcuts such as stereotypes, and systematic biases. Taken as a whole, this flexon can describe all kinds of behavior, rational and otherwise, in one self-contained problem-solving language whose most basic variables comprise agents (individuals, groups, organizations) and their beliefs, payoffs, and strategies.

For instance, financial models to optimize the manufacturing footprint of a large industrial company would typically focus on relatively easily quantifiable variables such as plant capacity and input costs. To take a decision-agent approach, you assess the payoffs and likely strategies of multiple stakeholders—including customers, unions, and governments—in the event of plant closures. Adding the incentives, beliefs, and strategies of all stakeholders to the analysis allows the company to balance the trade-offs inherent in a difficult decision more effectively.

System-dynamics flexon

Assessing a decision’s cascading effects on complex businesses is often a challenge. Making the relations between variables of a system, along with the causes and effects of decisions, more explicit allows you to understand their likely impact over time. A system-dynamics lens shows the world in terms of flows and accumulations of money, matter (for example, raw materials and products), energy (electrical current, heat, radio-frequency waves, and so forth), or information. It sheds light on a complex system by helping you develop a map of the causal relationships among key variables, whether they are internal or external to a team, a company, or an industry; subjectively or objectively measurable; or instantaneous or delayed in their effects.

Consider the case of a deep-sea oil spill, for example. A source (the well) emits a large volume of crude oil through a sequence of pipes (which throttle the flow and can be represented as inductors) and intermediate-containment vessels (which accumulate the flow and can be modeled as capacitors). Eventually, the oil flows into a sink (which, in this case, is unfortunately the ocean). A pressure gradient drives the flow rate of oil from the well into the ocean. Even an approximate model immediately identifies ways to mitigate the spill’s effects short of capping the well. These efforts could include reducing the pressure gradient driving the flow of crude, decreasing the loss of oil along the pipe, increasing the capacity of the containment vessels, or increasing or decreasing the inductance of the flow lines. In this case, a loosely defined phenomenon such as an oil spill becomes a set of precisely posed problems addressable sequentially, with cumulative results.

Information-processing flexon

When someone performs long division in her head, a CEO makes a strategic decision by aggregating imperfect information from an executive team, or Google servers crunch Web-site data, information is being transformed intelligently. This final flexon provides a lens for viewing various parts of a business as information-processing tasks, similar to the way such tasks are parceled out among different computers. It focuses attention on what information is used, the cost of computation, and how efficiently the computational device solves certain kinds of problems. In an organization, that device is a collection of people, whose processes for deliberating and deciding are the most important explanatory variable of decision-making’s effectiveness. 4 4. See Dan Lovallo and Olivier Sibony, “ The case for behavioral strategy ,” McKinsey Quarterly , March 2010.

Consider the case of a private-equity firm seeking to manage risk. A retrospective analysis of decisions by its investment committee shows that past bets have been much riskier than its principals assumed. To understand why, the firm examines what information was transmitted to the committee and how decisions by individuals would probably have differed from those of the committee, given its standard operating procedures. Interviews and analysis show that the company has a bias toward riskier investments and that it stems from a near-unanimity rule applied by the committee: two dissenting members are enough to prevent an investment. The insistence on near-unanimity is counterproductive because it stifles debate: the committee’s members (only two of whom could kill any deal) are reluctant to speak first and be perceived as an “enemy” by the deal sponsor. And the more senior the sponsor, the more likely it is that risky deals will be approved. Raising the number of votes required to kill deals, while clearly counterintuitive, would stimulate a richer dialogue.

Putting flexons to work

We routinely use these five problem-solving lenses in workshops with executive teams and colleagues to analyze particularly ambiguous and complex challenges. Participants need only a basic familiarity with the different approaches to reframe problems and generate more innovative solutions. Here are two quite different examples of the kinds of insights that emerge from the use of several flexons, whose real power emerges in combination.

Reorganizing for innovation

A large biofuel manufacturer that wants to improve the productivity of its researchers can use flexons to illuminate the problem from very different angles.

Networks. It’s possible to view the problem as a need to design a better innovation network by mapping the researchers’ ties to one another through co-citation indices, counting the number of e-mails sent between researchers, and using a network survey to reveal the strength and density of interactions and collaborative ties. If coordinating different knowledge domains is important to a company’s innovation productivity, and the current network isn’t doing so effectively, the company may want to create an internal knowledge market in which financial and status rewards accrue to researchers who communicate their ideas to co-researchers. Or the company could encourage cross-pollination by setting up cross-discipline gatherings, information clearinghouses, or wiki-style problem-solving sites featuring rewards for solutions.

Evolution. By describing each lab as a self-contained population of ideas and techniques, a company can explore how frequently new ideas are generated and filtered and how stringent the selection process is. With this information, it can design interventions to generate more varied ideas and to change the selection mechanism. For instance, if a lot of research activity never seems to lead anywhere, the company might take steps to ensure that new ideas are presented more frequently to the business-development team, which can provide early feedback on their applicability.

Decision agents. We can examine in detail how well the interests of individual researchers and the organization are aligned. What financial and nonfinancial benefits accrue to individuals who initiate or terminate a search or continue a search that is already under way? What are the net benefits to the organization of starting, stopping, or continuing to search along a given trajectory? Search traps or failures may be either Type I (pursuing a development path unlikely to reach a profitable solution) or Type II (not pursuing a path likely to reach a profitable solution). To better understand the economics at play, it may be possible to use industry and internal data to multiply the probabilities of these errors by their costs. That economic understanding, in turn, permits a company to tailor incentives for individuals to minimize Type I errors (by motivating employees to reject apparent losers more quickly) or Type II errors (by motivating them to persist along paths of uncertain value slightly longer than they normally would).

Predicting the future

Now consider the case of a multinational telecommunications service provider that operates several major broadband, wireless, fixed, and mobile networks around the world, using a mix of technologies (such as 2G and 3G). It wants to develop a strategic outlook that takes into consideration shifting demographics, shifting technologies for connecting users with one another and with its core network (4G), and shifting alliances—to say nothing of rapidly evolving players from Apple to Qualcomm. This problem is complicated, with a range of variables and forces at work, and so broad that crafting a strategy with big blind spots is easy. Flexons can help.

Each view of the world described below provides valuable food for thought, including potential strategic scenarios, technology road maps, and possibilities for killer apps. More hard work is needed to synthesize the findings into a coherent worldview, but the different perspectives provided by flexons illuminate potential solutions that might otherwise be missed.

Decision agents. Viewing the problem in this way emphasizes the incentives for different industry players to embrace new technologies and service levels. By enumerating a range of plausible scenarios from the perspective of customers and competitors, the network service provider can establish baseline assessments of future pricing, volume levels, and investment returns.

Networks. This lens allows a company or its managers to look at the industry as a pattern of exchange relationships between paying customers and providers of services, equipment, chips, operating systems, and applications, and then to examine the properties of each exchange network. The analysis may reveal that not all innovations and new end-user technologies are equal: some provide an opportunity for differentiation at critical nodes in the network; others do not.

System dynamics. This flexon focuses attention on data-flow bottlenecks in applications ranging from e-mail and voice calls to video downloads, games, and social-networking interactions. 5 5. The information-processing flexon, which focuses attention on the computational tasks required to give users access to assured data streams, is also relevant for evaluating bottlenecks and facilitating predictions about how networks and operators will fare in the future. The company can build a network-optimization map to predict and optimize capital expenditures for network equipment as a function of expected demand, information usage, and existing constraints. Because cost structures matter deeply to annuity businesses (such as those of service providers) facing demand fluctuations, the resulting analysis may radically affect which services a company believes it can and cannot offer in years to come.

Flexons help turn chaos into order by representing ambiguous situations and predicaments as well-defined, analyzable problems of prediction and optimization. They allow us to move up and down between different levels of detail to consider situations in all their complexity. And, perhaps most important, flexons allow us to bring diversity inside the head of the problem solver, offering more opportunities to discover counterintuitive insights, innovative options, and unexpected sources of competitive advantage.

Olivier Leclerc is a principal in McKinsey’s Southern California office. Mihnea Moldoveanu is associate dean of the full-time MBA program at the University of Toronto’s Rotman School of Management, where he directs the Desautels Centre for Integrative Thinking.

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To Solve a Tough Problem, Reframe It

• Julia Binder
• Michael D. Watkins

Research shows that companies devote too little effort to examining problems before trying to solve them. By jumping immediately into problem-solving, teams limit their ability to design innovative solutions.

The authors recommend that companies spend more time up front on problem-framing, a process for understanding and defining a problem. Exploring different frames is like looking at a scene through various camera lenses while adjusting your angle, aperture, and focus. A wide-angle lens gives you a very different photo from that taken with a telephoto lens, and shifting your angle and depth of focus yields distinct images. Effective problem-framing is similar: Looking at a problem from a variety of perspectives helps you uncover new insights and generate fresh ideas.

This article introduces a five-phase approach to problem-framing: In the expand phase, the team identifies all aspects of a problem; in examine, it dives into root causes; in empathize, it considers key stakeholders’ perspectives; in elevate, it puts the problem into a broader context; and in envision, it creates a road map toward the desired outcome.

Five steps to ensure that you don’t jump to solutions

Idea in Brief

The problem.

Research shows that most companies devote too little effort to examining problems from all angles before trying to solve them. That limits their ability to come up with innovative ways to address them.

The Solution

Companies need a structured approach for understanding and defining complex problems to uncover new insights and generate fresh ideas.

The Approach

This article introduces a five-phase approach to problem-framing: In the expand phase, the team identifies all aspects of a problem; in examine, it dives into root causes; in empathize, it considers key stakeholders’ perspectives; in elevate, it puts the problem into a broader context; and in envision, it creates a road map toward the desired outcome.

When business leaders confront complex problems, there’s a powerful impulse to dive right into “solving” mode: You gather a team and then identify potential solutions. That’s fine for challenges you’ve faced before or when proven methods yield good results. But what happens when a new type of problem arises or aspects of a familiar one shift substantially? Or if you’re not exactly sure what the problem is?

Research conducted by us and others shows that leaders and their teams devote too little effort to examining and defining problems before trying to solve them. A study by Paul Nutt of Ohio State University, for example, looked at 350 decision-making processes at medium to large companies and found that more than half failed to achieve desired results, often because perceived time pressure caused people to pay insufficient attention to examining problems from all angles and exploring their complexities. By jumping immediately into problem-solving, teams limit their ability to design innovative and durable solutions.

When we work with organizations and teams, we encourage them to spend more time up front on problem-framing, a process for understanding and defining a problem. Exploring frames is like looking at a scene through various camera lenses while adjusting your angle, aperture, and focus. A wide-angle lens will give you a very different photo from that taken with a telephoto lens, and shifting your angle and depth of focus yields distinct images. Effective problem-framing is similar: Looking at a problem from a variety of perspectives lets you uncover new insights and generate fresh ideas.

As with all essential processes, it helps to have a methodology and a road map. This article introduces the E5 approach to problem-framing—expand, examine, empathize, elevate, and envision—and offers tools that enable leaders to fully explore the problem space.

Phase 1: Expand

In the first phase, set aside preconceptions and open your mind. We recommend using a tool called frame-storming, which encourages a comprehensive exploration of an issue and its nuances. It is a neglected precursor to brainstorming, which typically focuses on generating many different answers for an already framed challenge. Frame-storming helps teams identify assumptions and blind spots, mitigating the risk of pursuing inadequate or biased solutions. The goal is to spark innovation and creativity as people dig into—or as Tina Seelig from Stanford puts it, “fall in love with”—the problem.

Begin by assembling a diverse team, encompassing a variety of types of expertise and perspectives. Involving outsiders can be helpful, since they’re often coming to the issue cold. A good way to prompt the team to consider alternative scenarios is by asking “What if…?” and “How might we…?” questions. For example, ask your team, “What if we had access to unlimited resources to tackle this issue?” or “How might better collaboration between departments or teams help us tackle this issue?” The primary objective is to generate many alternative problem frames, allowing for a more holistic understanding of the issue. Within an open, nonjudgmental atmosphere, you deliberately challenge established thinking—what we call “breaking” the frame.

It may be easy to eliminate some possibilities, and that’s exactly what you should do. Rather than make assumptions, generate alternative hypotheses and then test them.

Consider the problem-framing process at a company we’ll call Omega Soundscapes, a midsize producer of high-end headphones. (Omega is a composite of several firms we’ve worked with.) Omega’s sales had declined substantially over the past two quarters, and the leadership team’s initial diagnosis, or reference frame, was that recent price hikes to its flagship product made it too expensive for its target market. Before acting on this assumption, the team convened knowledgeable representatives from sales, marketing, R&D, customer service, and external consultants to do some frame-storming. Team members were asked:

• What if we lowered the price of our flagship product? How would that impact sales and profitability?
• How might we identify customers in new target markets who could afford our headphones at the current price?
• What if we offered financing or a subscription-based model for our headphones? How would that change perceptions of affordability?
• How might we optimize our supply chain and production processes to reduce manufacturing costs without compromising quality?

In playing out each of those scenarios, the Omega team generated several problem frames:

• The target market’s preferences have evolved.
• New competitors have entered the market.
• Product quality has decreased.
• Something has damaged perceptions of the brand.
• Something has changed in the priorities of our key distributors.

Each of the frames presented a unique angle from which to approach the problem of declining sales, setting the stage for the development of diverse potential solutions. At this stage, it may be relatively easy to eliminate some possibilities, and that’s exactly what you should do. Rather than make assumptions, generate alternative hypotheses and then test them.

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Phase 2: Examine

If the expand phase is about identifying all the facets of a problem, this one is about diving deep to identify root causes. The team investigates the issue thoroughly, peeling back the layers to understand underlying drivers and systemic contributors.

A useful tool for doing this is the iceberg model, which guides the team through layers of causation: surface-level events, the behavioral patterns that drive them, underlying systematic structures, and established mental models. As you probe ever deeper and document your findings, you begin to home in on the problem’s root causes. As is the case in the expand phase, open discussions and collaborative research are crucial for achieving a comprehensive analysis.

Let’s return to our Omega Soundscapes example and use the iceberg model to delve into the issues surrounding the two quarters of declining sales. Starting with the first layer beneath the surface, the behavioral pattern, the team diligently analyzed customer feedback. It discovered a significant drop in brand loyalty. This finding validated the problem frame of a “shifting brand perception,” prompting further investigation into what might have been causing it.

Phase 3: Empathize

In this phase, the focus is on the stakeholders—employees, customers, clients, investors, supply chain partners, and other parties—who are most central to and affected by the problem under investigation. The core objective is to understand how they perceive the issue: what they think and feel, how they’re acting, and what they want.

First list all the people who are directly or indirectly relevant to the problem. It may be helpful to create a visual representation of the network of relationships in the ecosystem. Prioritize the stakeholders according to their level of influence on and interest in the problem, and focus on understanding the roles, demographics, behavior patterns, motivations, and goals of the most important ones.

Now create empathy maps for those critical stakeholders. Make a template divided into four sections: Say, Think, Feel, and Do. Conduct interviews or surveys to gather authentic data. How do various users explain the problem? How do they think about the issue, and how do their beliefs inform that thinking? What emotions are they feeling and expressing? How are they behaving? Populate each section of the map with notes based on your observations and interactions. Finally, analyze the completed empathy maps. Look for pain points, inconsistencies, and patterns in stakeholder perspectives.

Returning to the Omega case study, the team identified its ecosystem of stakeholders: customers (both current and potential); retail partners and distributors; the R&D, marketing, and sales teams; suppliers of headphone components; investors and shareholders; and new and existing competitors. They narrowed the list to a few key stakeholders related to the declining-sales problem: customers, retail partners, and investors/shareholders; Omega created empathy maps for representatives from each.

Here’s what the empathy maps showed about what the stakeholders were saying, thinking, feeling, and doing:

Sarah, the customer, complained on social media about the high price of her favorite headphones. Dave, the retailer, expressed concerns about unsold inventory and the challenge of convincing customers to buy the expensive headphones. Alex, the shareholder, brought up Omega’s declining financial performance during its annual investor day.

Sarah thought that Omega was losing touch with its loyal customer base. Dave was considering whether to continue carrying Omega’s products in his store or explore other brands. Alex was contemplating diversifying his portfolio into other consumer-tech companies.

As a longtime supporter of the brand, Sarah felt frustrated and slightly betrayed. Dave was feeling anxious about the drop in sales and the impact on his store’s profitability. Alex was unhappy with the declining stock value.

Sarah was looking for alternatives to the headphones, even though she loves the product’s quality. Dave was scheduling a call with Omega to negotiate pricing and terms. Alex was planning to attend Omega’s next shareholder meeting to find out more information from the leadership team.

When Omega leaders analyzed the data in the maps, they realized that pricing wasn’t the only reason for declining sales. A more profound issue was customers’ dissatisfaction with the perceived price-to-quality ratio, especially when compared with competitors’ offerings. That insight prompted the team to consider enhancing the headphones with additional features, offering more-affordable alternatives, and possibly switching to a service model.

Phase 4: Elevate

This phase involves exploring how the problem connects to broader organizational issues. It’s like zooming out on a map to understand where a city lies in relation to the whole country or continent. This bird’s-eye view reveals interconnected issues and their implications.

For this analysis, we recommend the four-frame model developed by Lee Bolman and Terrence Deal, which offers distinct lenses through which to view the problem at a higher level. The structural frame helps you explore formal structures (such as hierarchy and reporting relationships); processes (such as workflow); and systems, rules, and policies. This frame examines efficiency, coordination, and alignment of activities.

The human resources frame focuses on people, relationships, and social dynamics. This includes teamwork, leadership, employee motivation, engagement, professional development, and personal growth. In this frame, the organization is seen as a community or a family that recognizes that talent is its most valuable asset. The political frame delves into power dynamics, competing interests, conflicts, coalitions, and negotiations. From this perspective, organizations are arenas where various stakeholders vie for resources and engage in political struggles to influence decisions. It helps you see how power is distributed, used, and contested.

The symbolic frame highlights the importance of symbols, rituals, stories, and shared values in shaping group identity and culture. In it, organizations are depicted as theaters through which its members make meaning.

Using this model, the Omega team generated the following insights in the four frames:

Structural.

A deeper look into the company’s structure revealed siloing and a lack of coordination between the R&D and marketing departments, which had led to misaligned messaging to customers. It also highlighted a lack of collaboration between the two functions and pointed to the need to communicate with the target market about the product’s features and benefits in a coherent and compelling way.

Human resources.

This frame revealed that the declining sales and price hikes had ramped up pressure on the sales team, damaging morale. The demotivated team was struggling to effectively promote the product, making it harder to recover from declining sales. Omega realized it was lacking adequate support, training, and incentives for the team.

The key insight from this frame was that the finance team’s reluctance to approve promotions in the sales group to maintain margins was exacerbating the morale problem. Omega understood that investing in sales leadership development while still generating profits was crucial for long-term success and that frank discussions about the issue were needed.

This frame highlighted an important misalignment in perception: The company believed that its headphones were of “top quality,” while customers reported in surveys that they were “overpriced.” This divergence raised alarm that branding, marketing, and pricing strategies, which were all predicated on the central corporate value of superior quality, were no longer resonating with customers. Omega realized that it had been paying too little attention to quality assurance and functionality.

Phase 5: Envision

In this phase, you transition from framing the problem to actively imagining and designing solutions. This involves synthesizing the insights gained from earlier phases and crafting a shared vision of the desired future state.

Here we recommend using a technique known as backcasting. First, clearly define your desired goal. For example, a team struggling with missed deadlines and declining productivity might aim to achieve on-time completion rates of 98% for its projects and increase its volume of projects by 5% over the next year. Next, reverse engineer the path to achieving your goal. Outline key milestones required over both the short term and the long term. For each one, pinpoint specific interventions, strategies, and initiatives that will propel you closer to your goal. These may encompass changes in processes, policies, technologies, and behaviors. Synthesize the activities into a sequenced, chronological, prioritized road map or action plan, and allocate the resources, including time, budget, and personnel, necessary to implement your plan. Finally, monitor progress toward your goal and be prepared to adjust the plan in response to outcomes, feedback, or changing circumstances. This approach ensures that the team’s efforts in implementing the insights from the previous phases are strategically and purposefully directed toward a concrete destination.

Applying the Approach

Albert Einstein once said, “If I had one hour to solve a problem, I would spend 55 minutes thinking about the problem and five minutes thinking about the solution.” That philosophy underpins our E5 framework, which provides a structured approach for conscientiously engaging with complex problems before leaping to solutions.

As teams use the methodology, they must understand that problem-framing in today’s intricate business landscape is rarely a linear process. While we’re attempting to provide a structured path, we also recognize the dynamic nature of problems and the need for adaptability. Invariably, as teams begin to implement solutions, new facets of a problem may come to light, unforeseen challenges may arise, or external circumstances may evolve. Your team should be ready to loop back to previous phases—for instance, revisiting the expand phase to reassess the problem’s frame, delving deeper into an overlooked root cause in another examine phase, or gathering fresh insights from stakeholders in a new empathize phase. Ultimately, the E5 framework is intended to foster a culture of continuous improvement and innovation.

• JB Julia Binder is the director of the Center for Sustainable and Inclusive Business and a professor of sustainable innovation at IMD.
• Michael D. Watkins is a professor of leadership and organizational change at IMD , a cofounder of Genesis Advisers , and the author of The Six Disciplines of Strategic Thinking .

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How to Be a More Creative Problem-Solver at Work: 8 Tips

• 01 Mar 2022

The importance of creativity in the workplace—particularly when problem-solving—is undeniable. Business leaders can’t approach new problems with old solutions and expect the same result.

This is where innovation-based processes need to guide problem-solving. Here’s an overview of what creative problem-solving is, along with tips on how to use it in conjunction with design thinking.

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What Is Creative Problem-Solving?

Encountering problems with no clear cause can be frustrating. This occurs when there’s disagreement around a defined problem or research yields unclear results. In such situations, creative problem-solving helps develop solutions, despite a lack of clarity.

While creative problem-solving is less structured than other forms of innovation, it encourages exploring open-ended ideas and shifting perspectives—thereby fostering innovation and easier adaptation in the workplace. It also works best when paired with other innovation-based processes, such as design thinking .

Creative Problem-Solving and Design Thinking

Design thinking is a solutions-based mentality that encourages innovation and problem-solving. It’s guided by an iterative process that Harvard Business School Dean Srikant Datar outlines in four stages in the online course Design Thinking and Innovation :

• Clarify: This stage involves researching a problem through empathic observation and insights.
• Ideate: This stage focuses on generating ideas and asking open-ended questions based on observations made during the clarification stage.
• Develop: The development stage involves exploring possible solutions based on the ideas you generate. Experimentation and prototyping are both encouraged.
• Implement: The final stage is a culmination of the previous three. It involves finalizing a solution’s development and communicating its value to stakeholders.

Although user research is an essential first step in the design thinking process, there are times when it can’t identify a problem’s root cause. Creative problem-solving addresses this challenge by promoting the development of new perspectives.

Leveraging tools like design thinking and creativity at work can further your problem-solving abilities. Here are eight tips for doing so.

8 Creative Problem-Solving Tips

1. empathize with your audience.

A fundamental practice of design thinking’s clarify stage is empathy. Understanding your target audience can help you find creative and relevant solutions for their pain points through observing them and asking questions.

Practice empathy by paying attention to others’ needs and avoiding personal comparisons. The more you understand your audience, the more effective your solutions will be.

2. Reframe Problems as Questions

If a problem is difficult to define, reframe it as a question rather than a statement. For example, instead of saying, "The problem is," try framing around a question like, "How might we?" Think creatively by shifting your focus from the problem to potential solutions.

Consider this hypothetical case study: You’re the owner of a local coffee shop trying to fill your tip jar. Approaching the situation with a problem-focused mindset frames this as: "We need to find a way to get customers to tip more." If you reframe this as a question, however, you can explore: "How might we make it easier for customers to tip?" When you shift your focus from the shop to the customer, you empathize with your audience. You can take this train of thought one step further and consider questions such as: "How might we provide a tipping method for customers who don't carry cash?"

Whether you work at a coffee shop, a startup, or a Fortune 500 company, reframing can help surface creative solutions to problems that are difficult to define.

3. Defer Judgment of Ideas

If you encounter an idea that seems outlandish or unreasonable, a natural response would be to reject it. This instant judgment impedes creativity. Even if ideas seem implausible, they can play a huge part in ideation. It's important to permit the exploration of original ideas.

While judgment can be perceived as negative, it’s crucial to avoid accepting ideas too quickly. If you love an idea, don’t immediately pursue it. Give equal consideration to each proposal and build on different concepts instead of acting on them immediately.

4. Overcome Cognitive Fixedness

Cognitive fixedness is a state of mind that prevents you from recognizing a situation’s alternative solutions or interpretations instead of considering every situation through the lens of past experiences.

Although it's efficient in the short-term, cognitive fixedness interferes with creative thinking because it prevents you from approaching situations unbiased. It's important to be aware of this tendency so you can avoid it.

5. Balance Divergent and Convergent Thinking

One of the key principles of creative problem-solving is the balance of divergent and convergent thinking. Divergent thinking is the process of brainstorming multiple ideas without limitation; open-ended creativity is encouraged. It’s an effective tool for generating ideas, but not every idea can be explored. Divergent thinking eventually needs to be grounded in reality.

Convergent thinking, on the other hand, is the process of narrowing ideas down into a few options. While converging ideas too quickly stifles creativity, it’s an important step that bridges the gap between ideation and development. It's important to strike a healthy balance between both to allow for the ideation and exploration of creative ideas.

6. Use Creative Tools

Using creative tools is another way to foster innovation. Without a clear cause for a problem, such tools can help you avoid cognitive fixedness and abrupt decision-making. Here are several examples:

Problem Stories

Creating a problem story requires identifying undesired phenomena (UDP) and taking note of events that precede and result from them. The goal is to reframe the situations to visualize their cause and effect.

To start, identify a UDP. Then, discover what events led to it. Observe and ask questions of your consumer base to determine the UDP’s cause.

Next, identify why the UDP is a problem. What effect does the UDP have that necessitates changing the status quo? It's helpful to visualize each event in boxes adjacent to one another when answering such questions.

The problem story can be extended in either direction, as long as there are additional cause-and-effect relationships. Once complete, focus on breaking the chains connecting two subsequent events by disrupting the cause-and-effect relationship between them.

Alternate Worlds

The alternate worlds tool encourages you to consider how people from different backgrounds would approach similar situations. For instance, how would someone in hospitality versus manufacturing approach the same problem? This tool isn't intended to instantly solve problems but, rather, to encourage idea generation and creativity.

7. Use Positive Language

It's vital to maintain a positive mindset when problem-solving and avoid negative words that interfere with creativity. Positive language prevents quick judgments and overcomes cognitive fixedness. Instead of "no, but," use words like "yes, and."

Positive language makes others feel heard and valued rather than shut down. This practice doesn’t necessitate agreeing with every idea but instead approaching each from a positive perspective.

Using “yes, and” as a tool for further idea exploration is also effective. If someone presents an idea, build upon it using “yes, and.” What additional features could improve it? How could it benefit consumers beyond its intended purpose?

While it may not seem essential, this small adjustment can make a big difference in encouraging creativity.

8. Practice Design Thinking

Practicing design thinking can make you a more creative problem-solver. While commonly associated with the workplace, adopting a design thinking mentality can also improve your everyday life. Here are several ways you can practice design thinking:

• Learn from others: There are many examples of design thinking in business . Review case studies to learn from others’ successes, research problems companies haven't addressed, and consider alternative solutions using the design thinking process.
• Approach everyday problems with a design thinking mentality: One of the best ways to practice design thinking is to apply it to your daily life. Approach everyday problems using design thinking’s four-stage framework to uncover what solutions it yields.
• Study design thinking: While learning design thinking independently is a great place to start, taking an online course can offer more insight and practical experience. The right course can teach you important skills , increase your marketability, and provide valuable networking opportunities.

Ready to Become a Creative Problem-Solver?

Though creativity comes naturally to some, it's an acquired skill for many. Regardless of which category you're in, improving your ability to innovate is a valuable endeavor. Whether you want to bolster your creativity or expand your professional skill set, taking an innovation-based course can enhance your problem-solving.

If you're ready to become a more creative problem-solver, explore Design Thinking and Innovation , one of our online entrepreneurship and innovation courses . If you aren't sure which course is the right fit, download our free course flowchart to determine which best aligns with your goals.

About the Author

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Creative Thinking: Innovative Solutions to Complex Challenges

Learn how to grow a culture of creativity to innovate competitive solutions.

All Start Dates

8:30 AM – 4:30 PM ET

2 consecutive days

$3,100 Programs fill quickly — free cancellation up to 14 days prior

Registration Deadline

April 22, 2025

July 8, 2025

Overview: Creative Thinking Skills Course

The tech breakthrough that makes smartphones irrelevant, a new viral ad campaign, your company’s next big revenue generator — ideas like these could be sitting in your brain; all you need are the creative thinking skills and strategies to pull them out.

This interactive program focuses explicitly on the creative thinking skills you need to solve complex problems and design innovative solutions. Learn how to transform your thinking from the standard “why can’t we” to the powerful “how might we.” Crack the code on how to consistently leverage your team’s creative potential in order to drive innovation within your organization. Explore how to build a climate for innovation, remove barriers to creativity, cultivate courage, and create more agile, proactive, and inspired teams.

You will leave this program with new ideas about how to think more productively and how to introduce creative thinking skills into your organization. You can apply key takeaways immediately to implement a new leadership vision, inspire renewed enthusiasm, and enjoy the skills and tools to tackle challenges and seize opportunities.

Innovation experts Anne Manning and Susan Robertson bring to this highly-interactive and powerful program their decades of experience promoting corporate innovation, teaching the art of creative problem solving, and applying the principles of brain science to solve complex challenges.

Who Should Take Creative Thinking Skills Training?

This program is ideal for leaders with at least 3 years of management experience. It is designed for leaders who want to develop new strategies, frameworks, and tools for creative problem solving. Whether you are a team lead, project manager, sales director, or executive, you’ll learn powerful tools to lead your team and your organization to create innovative solutions to complex challenges.

Benefits of Creative Thinking Skills Training

The goal of this creative thinking program is to help you develop the strategic concepts and tactical skills to lead creative problem solving for your team and your organization. You will learn to:

• Retrain your brain to avoid negative cognitive biases and long-held beliefs and myths that sabotage creative problem solving and innovation
• Become a more nimble, proactive, and inspired thinker and leader
• Create the type of organizational culture that supports collaboration and nurtures rather than kills ideas
• Gain a practical toolkit for solving the “unsolvable” by incorporating creative thinking into day-to-day processes
• Understand cognitive preferences (yours and others’) to adapt the creative thinking process and drive your team’s success
• Develop techniques that promote effective brainstorming and enable you to reframe problems in a way that inspires innovative solutions

All participants will earn a Certificate of Completion from the Harvard Division of Continuing Education.

The curriculum in this highly interactive program utilizes research-based methodologies and techniques to build creative thinking skills and stimulate creative problem solving.

Through intensive group discussions and small-group exercises, you will focus on topics such as:

• The Creative Problem Solving process: a researched, learnable, repeatable process for uncovering new and useful ideas. This process includes a “how to” on clarifying, ideating, developing, and implementing new solutions to intractable problems
• The cognitive preferences that drive how we approach problems, and how to leverage those cognitive preferences for individual and team success
• How to develop—and implement— a methodology that overcomes barriers to innovative thinking and fosters the generation of new ideas, strategies, and techniques
• The role of language, including asking the right questions, in reframing problems, challenging assumptions, and driving successful creative problem solving
• Fostering a culture that values, nurtures, and rewards creative solutions

Considering this program?

Send yourself the details.

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April Schedule

• Creative Challenges: A Team Sport
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Instructors, anne manning, susan robertson.

I really enjoyed the way the instructors facilitated the program. The combination of theory and practical exercises was powerful and effectively reinforced the concepts.

Innovation and Educational Research, Director, Vertex Pharmaceuticals, Inc.

Certificates of Leadership Excellence

The Certificates of Leadership Excellence (CLE) are designed for leaders with the desire to enhance their business acumen, challenge current thinking, and expand their leadership skills.

This program is one of several CLE qualifying programs. Register today and get started earning your certificate.

Harvard Division of Continuing Education

The Division of Continuing Education (DCE) at Harvard University is dedicated to bringing rigorous academics and innovative teaching capabilities to those seeking to improve their lives through education. We make Harvard education accessible to lifelong learners from high school to retirement.

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Creative Problem-Solving Approach: Skills, Framework, 3 Real-life Examples

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• Generating new marketing ideas for an upcoming product launch
• Coming up with unique ways to engage employees during meetings 

• Identifying the Real Problem : Imagine you wake up to a cold shower. The obvious problem? No hot water! But before you start dismantling the showerhead, take a step back. Is it a faulty heating element, a low thermostat setting, or a bigger issue with the building’s plumbing? This initial step is crucial. Ask yourself questions like “What are the symptoms?” and “When did this problem start?”. In our shower scenario, identifying the root cause (a faulty heating element) saves you time and unnecessary tinkering.
• Generating Wild Ideas : Now, it’s time to unleash your creativity! Remember that brainstorming session in school where every idea, no matter how wacky, was welcome? That’s the spirit! Back to our chilly shower situation, ideas might include: boiling water on the stove for a makeshift bath (not ideal!), calling the landlord for repairs (the most likely solution!), or – if you’re feeling adventurous – installing a solar water heater (hey, it could work!).
• Evaluating Ideas: Okay, so you have a list of ideas, from the practical to the downright peculiar. Here comes the filter. Evaluate each idea based on realistic criteria. For the shower scenario, fixing the heating element is likely the most feasible and impactful solution. While a solar water heater might be innovative, the cost and practicality might not make it the best choice at this moment.
• From Idea to Action Plan: We’ve identified the best course of action (fixing the heating element). Now, it’s time to develop a concrete solution. This might involve calling a plumber, gathering the necessary tools, or researching DIY repair tutorials (if you’re handy!). The key is to create a clear plan that addresses the problem directly.
• Putting Your Solution to the Test : The plan is in place, it’s time to implement! In our case, this means calling the plumber and getting that heating element fixed. Once the repair is done, take a celebratory hot shower! But remember, even the best plans can have hiccups. If the hot water issue persists, you might need to re-evaluate your initial diagnosis or call the plumber back for further troubleshooting.
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• Netflix:  The company revolutionized how we watch TV shows and movies. However, when the company started, it faced a big challenge – getting people to watch their content when they were not a well-known brand. Instead of relying on traditional advertising, Netflix used creative problem-solving to develop a unique solution. They created an algorithm recommending TV shows and movies based on a user’s viewing history, leading to a highly personalized viewing experience. This recommendation engine became a critical factor in the company’s success, helping them attract and retain customers.
• NASA:  NASA had to devise an instant solution to save the Apollo 13 mission and their team. Their spacecraft was damaged, and they needed a solution to bring their astronauts safely back to Earth. The team fitted a square CO2 filter into a round hole using available materials on the spacecraft; the team used creative problem-solving to develop this approach. This innovative solution allowed the astronauts to return safely to Earth and set this incident as a classic creative solving example.
• IKEA:  IKEA makes stylish and affordable furniture and is a well-versed company. However, they faced significant challenges entering the Japanese market. Japanese apartments are comparatively smaller than the rest of the world, so the regular product range was irrelevant to Japanese customers. So, IKEA used creative problem-solving to develop a solution appealing to the Japanese market. They launched a variety of products specially created for smaller spaces that are easy to assemble and disassemble—they also introduced a range of futons designed to look like beds, appealing to Japanese customers who prefer sleeping on the floor. This innovative and creative approach helped IKEA successfully enter the Japanese market.

• Flexibility:  Being able to adapt to changing circumstances and consider multiple perspectives.
• Open-mindedness:  Being open to new ideas and willing to challenge assumptions.
• Curiosity:  Seek more information by questioning and better understanding the problem.
• Persistence:  If a solution does not work, apply another solution, but continue until the problem is solved.
• Divergent thinking:  Generating multiple ideas and exploring different possibilities.
• Convergent thinking:  Evaluating and selecting the best ideas based on specific criteria.
• Visualization:  Using mental imagery to explore solutions and ideas.
• Collaboration:  Working with others to combine different perspectives and knowledge.
• Risk-taking:  Being willing to take calculated risks and try new approaches.
• Innovation:  Combining ideas and approaches in novel ways to create new solutions.

Evaluate your problem-solving skills for free now

Take the free problem-solving assessment by Risely to get started on your journey.

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Design Thinking and Innovation

Design Thinking and Innovation from Harvard Business School (HBS) Online will teach you how to leverage fundamental design thinking principles and innovative problem-solving tools to address business challenges.

• Introductory
• Intermediate

Associated Schools

Harvard Business School

What you'll learn.

Break cognitive fixedness and approach problems with a new mindset that integrates creative problem-solving and management

Develop an innovation toolkit, and determine when to apply design thinking frameworks, tools, and exercises to your own strategic initiatives

Practice empathy and apply human-centered design through techniques such as ideation, prototyping, user journey mapping, and analyzing mental models

Assess group dynamics and maximize your team’s potential for developing and iterating prototypes and managing the implementation of new designs

Understand how leaders can create the optimal environment and team dynamics to guide innovation and collaboration

Put design thinking into action by collaborating with peers from a wide range of professional experiences and backgrounds

Course description

Design Thinking and Innovation, through Harvard Business School (HBS) Online, equips current and aspiring innovation managers with the design thinking principles and innovative problem-solving tools to solve business challenges and guide their organization’s strategy. The course features five weeks of course content and two weeks of cohort project work, enabling the opportunity to put learning into practice. Leaders interviewed include Moderna CEO Stéphane Bancel, Royal Philips CEO Frans van Houten, and T-Mobile CEO Mike Sievert, among others. Participants will walk away with an innovation toolkit of frameworks and exercises for identifying business opportunities and generating possible solutions for their organization’s initiatives.

Instructors

Srikant Datar

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