Proactive Problem Solving: Finding The WHAT and WHY

In today’s rapidly changing business environment, organizations that thrive are those that systematically address challenges before they become crises. Implementing a Proactive Problem-Solving culture transforms how your entire organization approaches obstacles — shifting from reactive firefighting to preventative improvement. This fundamental change doesn’t require complex methodologies or expensive consultants. Instead, it begins with teaching everyone to clearly define WHAT problems need solving and WHY they matter.

From Crisis to Transformation 

Several years ago, a state unemployment agency faced tremendous problems in its ability to help people during a time of economic crisis. With call volumes surging, customers were waiting on hold for up to 2.5 hours, and nearly half hung up before speaking with anyone. Employees began each conversation with an apology rather than assistance. Yet the agency was able to transform itself by focusing on the WHAT and the WHY. Here’s what happened.

Don’t Blame the Employees 

When Andy Losasso took over the call center, he didn’t blame the employees or demand they work harder. Instead, he focused on the system itself and engaged the frontline staff in finding solutions. By clearly defining WHAT needed fixing (responsiveness to citizens) and WHY it mattered (providing efficient service during people’s time of need), his team reimagined the entire process.

Their solution was elegantly simple — they created two separate pathways for calls. Basic questions went to junior staff, while complex issues were routed to experienced specialists. The results were extraordinary: hold times dropped from 20 minutes to 5 minutes, and abandoned calls fell from 50% to 15%. Most remarkably, they achieved this transformation without spending a dollar on new technology or adding staff.

This story illustrates what I’ve observed throughout my career: effective problem solving begins not with sophisticated techniques but with purpose. When you hit what I call a “Death Threat” — a seemingly insurmountable barrier to your solution — your logical brain often whispers that you should give up. The difference between surrender and breakthrough lies in two critical elements: confidence in your problem-solving ability and a deep understanding of why solving this problem truly matters.

Transforming Through Purpose 

I’ve seen this pattern repeat across industries. At my own Brain Brew Distillery, we faced persistent profitability challenges due to the complex distribution system. After deeply exploring the history of bourbon, we discovered that in the 1800s, nearly all bourbon was customized to individual preferences. This insight sparked our transformation — returning bourbon to its roots by creating personalized experiences.

The impact was immediate. While we keep only half the revenue when selling a standard bottle (with governments taking the rest), we retain nearly all revenue from our custom bourbon experiences. This led to our WoodCraft Bourbon Blender franchise, now expanding nationwide from its first location in Louisville’s Whiskey Row.

Small Problems, Big Impact 

What surprises many leaders is that even small recurring problems deserve attention. A frustration that wastes just 20 minutes every other day for two employees accumulates to 86 wasted hours annually — more than two full work weeks! These “reliable frustrations” might seem insignificant individually, but their cumulative impact is substantial.

I encourage leaders to look beyond obvious crises and consider three types of challenges: small but frequent issues, rare but potentially devastating problems, and predictable difficulties you can address preemptively. For each, start by crafting a clear Problem Statement that makes it impossible to misunderstand both the situation and its importance.

The Blue Card System 

For complex, I’ve developed what I call the Blue Card system for complex challenges. Unlike a simple Problem Statement, Blue Cards include a narrative explaining the challenge, a tightly focused mission, strategic exclusions (what you’re NOT addressing), tactical constraints (boundaries and requirements), and optional exploration areas to accelerate solution-finding. This final section helps bring the Blue Card to life for the reader. It helps accelerate the start of the project by identifying areas to look for potential solutions and/or people who might be helpful in finding solutions.

Creating Momentum Through Recognition 

Implementation requires that employees feel engaged, committed, and recognized for their efforts. One manufacturing facility created momentum by borrowing from Ohio State’s football tradition of awarding helmet stickers. Employees received stickers for their toolboxes or workstations when they identified and solved problems. As visual symbols accumulated throughout the facility, participation grew organically without creating the winner-loser dynamic that contests often produce.

Leadership’s Role in Proactive Problem-Solving 

As a leader, you can jumpstart this proactive problem-solving mindset with simple questions. Google’s CEO Sundar Pichai created what he called a “Simplicity Sprint” by asking employees three straightforward questions: what would help them work with greater clarity, where should speed bumps be removed, and how could waste be eliminated as the company grew.

Your role as a leader evolves as your team’s capabilities develop. Initially, focus on visible problems to build confidence and deliver immediate impact. As capacity grows, direct attention to systems that aren’t obviously broken. A simple inventory of key processes and how long since each was meaningfully improved often reveals your greatest opportunities.

From Firefighting to Prevention 

This proactive approach represents a fundamental shift from firefighting to prevention. Dr. W. Edwards Deming, the father of quality management, famously noted that “94% of problems are due to the systems.” By addressing the systems rather than blaming individuals, you transform not just processes but culture.

What separates organizations that merely survive from those that thrive is their approach to problems. Reactive companies wait for crises, then scramble for solutions. Proactive organizations systematically identify challenges and address them before they escalate.

The Power of Clarity 

The journey begins with a simple yet profound shift — moving from vague frustrations to precise definitions of WHAT needs solving and WHY it matters. This clarity provides both direction and motivation, enabling your team to overcome obstacles that would derail others. In today’s business environment, this capability isn’t just a competitive advantage – it’s increasingly a requirement for survival.

Written by Doug Hall.
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