top of page

Defining the Problem: The Path to Effective Solutions

Updated: Jan 29

Avila Consulting - Einstein Important of Defining Problem

As a business owner or leader, take a moment to reflect on the number of solutions or recommendations you’ve shared in the last 24 hours, last week, or last month. If we add to that number the recommendations we offer in our personal lives, I bet you the number is quite significant. Most of us have a natural inclination to solve problems.

However, there are instances where we dive into generating solutions without fully understanding or investing enough time in defining the problem itself. In these cases, it's worth asking ourselves: How much time did we take to truly understand and define the problem we're trying to solve? You're not alone in this. In a fast and competitive environment, it's common to be solution-oriented, focusing on fixes without investing enough time in defining the problem itself. However, here's the secret: successful problem-solving lies in dedicating adequate time and effort to identify the problem.

Einstein is quoted as having said, “If I had an hour to solve a problem, I'd spend 55 minutes thinking about the problem and five minutes thinking about solutions.”

The Importance of Defining the Problem in Business

Investing time in understanding the background and defining the actual problem can result in several benefits:


Let's imagine a scenario where a company is experiencing a decline in customer retention. We can be tempted to rapidly shift into solution mode and start discussing or reviewing the loyalty program or considering launching a new one. However, before brainstorming or acting on a solution, taking the time to define the problem by understanding the background or situation, analysing customer feedback, conducting surveys, and examining the customer journey might reveal that the actual issue is poor product quality or lack of customer support. By identifying the precise issue, the company can develop targeted strategies to address them directly. This precise targeting increases the chances of solving the problem.

Efficient Resource Allocation:

Now imagine a situation where a business is facing declining profit margins. Instead of jumping straight into cost-cutting measures, defining the problem would entail a thorough analysis of the underlying factors. This might reveal issues like inefficient processes, outdated technology, or ineffective pricing strategies. By accurately defining the problem, the business can allocate the right resources to areas that will have the most significant impact.

Stakeholder Alignment:

In any business, the support and alignment of stakeholders are important for any project or initiative's success. When defining a problem, involving key stakeholders, and seeking their perspectives fosters a sense of ownership and collaboration. For instance, if a company aims to improve its internal communication processes, engaging employees from various departments to identify communication gaps and challenges helps build consensus on the problem. This alignment ensures that the subsequent solutions address the specific needs and concerns of the workforce, promoting better communication practices throughout the organisation.


Successful companies often embrace innovation to stay ahead in competitive markets. Defining the problem is the first step in identifying new opportunities for innovation. For example, a business struggling to meet the changing needs of its customers might discover that the problem lies in offering functional benefits not relevant any more. By defining the problem as the need for innovative and customer-centric solutions, the company can focus on developing new products or services that address those needs.

Unlocking Success: Start with Problem Definition!

As business professionals, resisting the temptation of rushing towards solutions is important. Instead, let's embrace the power of problem definition. By dedicating time and effort to understanding the challenges we face, we can pave the way for effective problem-solving, efficient resource allocation, innovation, and stakeholder alignment. Remember, the more precisely we define the problem, the closer we get to unlocking the potential of your business.

Unlock Your Business Potential with our quiz! Discover if you're on track to success in Business Model, Actions, Marketing, and Sales. Take our free quiz now

For more content like this, follow Avila Consulting.

To learn more about how we can support your business in reaching its full potential, visit our website at


bottom of page