Are You Solving the Right Problem? - Harvard Business Review

Reprint: R1209F The rigor with which a problem is defined is the most important factor in finding a good solution. Many organizations, however, are not ... Youhave1freearticlesleftthismonth. Youarereadingyourlastfreearticleforthismonth. Subscribeforunlimitedaccess. Createanaccounttoread2more. Decisionmakingandproblemsolving AreYouSolvingtheRightProblem? Mostfirmsaren’t,andthatunderminestheirinnovationefforts. by DwayneSpradlin by DwayneSpradlin FromtheMagazine(September2012) Tweet Post Share Save GetPDF BuyCopies Print Summary.    Reprint:R1209F Therigorwithwhichaproblemisdefinedisthemostimportantfactorinfindingagoodsolution.Manyorganizations,however,arenotproficientatarticulatingtheirproblemsandidentifyingwhichonesarecrucialtotheirstrategies. Theymayevenbetryingtosolvethewrongproblems—missingopportunitiesandwastingresourcesintheprocess.Thekeyistoasktherightquestions. Theauthordescribesaprocessthathisfirm,InnoCentive,hasusedtohelpclientsdefineandarticulatebusiness,technical,social,andpolicychallengesandthenpresentthemtoanonlinecommunityofmorethan250,000solvers.Thefour-stepprocessconsistsofaskingaseriesofquestionsandusingtheanswerstocreateaproblemstatementthatwillelicitnovelideasfromanarrayofexperts. Establishtheneedforasolution.Whatisthebasicneed?Whowillbenefitfromasolution? Justifytheneed.Whyshouldyourorganizationattempttosolvethisproblem?Isitalignedwithyourstrategy?Ifasolutionisfound,whowillimplementit? Contextualizetheproblem.Whathaveyouandothersalreadytried?Arethereinternalandexternalconstraintstoimplementingasolution? Writetheproblemstatement.Whatrequirementsmustasolutionmeet?Whatlanguageshouldyouusetodescribetheproblem?Howwillyouevaluatesolutionsandmeasuresuccess? EnterpriseWorks/VITA,anonprofitorganization,usedthisprocesstofindalow-cost,lightweight,andconvenientproductthatexpandsaccesstocleandrinkingwaterinthedevelopingworld. Tweet Post Share Save GetPDF BuyCopies Print Leerenespañol Leremportuguês “IfIweregivenonehourtosavetheplanet,Iwouldspend59minutesdefiningtheproblemandoneminuteresolvingit,”AlbertEinsteinsaid. Thosewerewisewords,butfromwhatIhaveobserved,mostorganizationsdon’theedthemwhentacklinginnovationprojects.Indeed,whendevelopingnewproducts,processes,orevenbusinesses,mostcompaniesaren’tsufficientlyrigorousindefiningtheproblemsthey’reattemptingtosolveandarticulatingwhythoseissuesareimportant.Withoutthatrigor,organizationsmissopportunities,wasteresources,andenduppursuinginnovationinitiativesthataren’talignedwiththeirstrategies.Howmanytimeshaveyouseenaprojectgodownonepathonlytorealizeinhindsightthatitshouldhavegonedownanother?Howmanytimeshaveyouseenaninnovationprogramdeliveraseeminglybreakthroughresultonlytofindthatitcan’tbeimplementedoritaddressesthewrongproblem?Manyorganizationsneedtobecomebetterataskingtherightquestionssothattheytackletherightproblems. Iofferhereaprocessfordefiningproblemsthatanyorganizationcanemployonitsown.Myfirm,InnoCentive,hasusedittohelpmorethan100corporations,governmentagencies,andfoundationsimprovethequalityandefficiencyoftheirinnovationeffortsand,asaresult,theiroverallperformance.Throughthisprocess,whichwecallchallenge-driveninnovation,clientsdefineandarticulatetheirbusiness,technical,social,andpolicyissuesandpresentthemaschallengestoacommunityofmorethan250,000solvers—scientists,engineers,andotherexpertswhohailfrom200countries—onInnoCentive.com,ourinnovationmarketplace.Successfulsolvershaveearnedawardsof$5,000to$1million. Sinceourlaunch,morethan10yearsago,wehavemanagedmorethan2,000problemsandsolvedmorethanhalfofthem—amuchhigherproportionthanmostorganizationsachieveontheirown.Indeed,oursuccessrateshaveimproveddramaticallyovertheyears(34%in2006,39%in2009,and57%in2011),whichisafunctionoftheincreasingqualityofthequestionsweposeandofoursolvercommunity.Interestingly,evenunsolvedproblemshavebeentremendouslyvaluabletomanyclients,allowingthemtocancelill-fatedprogramsmuchearlierthantheyotherwisewouldhaveandthenredeploytheirresources. Inourearlyyears,wefocusedonhighlyspecifictechnicalproblems,butwehavesinceexpanded,takingoneverythingfrombasicR&Dandproductdevelopmenttothehealthandsafetyofastronautstobankingservicesindevelopingcountries.Wenowknowthattherigorwithwhichaproblemisdefinedisthemostimportantfactorinfindingasuitablesolution.Butwe’veseenthatmostorganizationsarenotproficientatarticulatingtheirproblemsclearlyandconcisely.Manyhaveconsiderabledifficultyevenidentifyingwhichproblemsarecrucialtotheirmissionsandstrategies. Infact,manyclientshaverealizedwhileworkingwithusthattheymaynotbetacklingtherightissues.ConsideracompanythatengagesInnoCentivetofindalubricantforitsmanufacturingmachinery.Thisexchangeensues: InnoCentivestaffer:“Whydoyouneedthelubricant?” Client’sengineer:“Becausewe’renowexpectingourmachinerytodothingsitwasnotdesignedtodo,anditneedsaparticularlubricanttooperate.” InnoCentivestaffer:“Whydon’tyoureplacethemachinery?” Client’sengineer:“Becausenoonemakesequipmentthatexactlyfitsourneeds.” Thisraisesadeeperquestion:Doesthecompanyneedthelubricant,ordoesitneedanewwaytomakeitsproduct?Itcouldbethatrethinkingthemanufacturingprocesswouldgivethefirmanewbasisforcompetitiveadvantage.(AskingquestionsuntilyougettotherootcauseofaproblemdrawsfromthefamousFiveWhysproblem-solvingtechniquedevelopedatToyotaandemployedinSixSigma.) TheProblem-DefinitionProcess EstablishtheNeedforaSolution Whatisthe basicneed? Whatisthe desiredoutcome? Whostandsto benefitandwhy? Justifytheneed Istheeffort alignedwithourstrategy? Whatarethe desiredbenefitsforthecompany,andhowwillwemeasurethem? Howwillwe ensurethatasolutionisimplemented? Contextualizetheproblem Whatapproacheshave wetried? Whathaveothers tried? Whatarethe internalandexternalconstraintsonimplementingasolution? Writetheproblemstatement Istheproblem actuallymanyproblems? Whatrequirementsmust asolutionmeet? Whichproblemsolvers shouldweengage? Whatinformationand languageshouldtheproblemstatementinclude? Whatdosolvers needtosubmit? Whatincentivesdo solversneed? Howwillsolutions beevaluatedandsuccessmeasured? Theexampleislikemanywe’veseen:Someoneinthebowelsoftheorganizationisassignedtofixaveryspecific,near-termproblem.Butbecausethefirmdoesn’temployarigorousprocessforunderstandingthedimensionsoftheproblem,leadersmissanopportunitytoaddressunderlyingstrategicissues.ThesituationisexacerbatedbywhatStefanThomkeandDonaldReinertsenhaveidentifiedasthefallacyof“Thesoonertheprojectisstarted,thesooneritwillbefinished.”(See“SixMythsofProductDevelopment,”HBRMay2012.)Organizationalteamsspeedtowardasolution,fearingthatiftheyspendtoomuchtimedefiningtheproblem,theirsuperiorswillpunishthemfortakingsolongtogettothestartingline. Ironically,thatapproachismorelikelytowastetimeandmoneyandreducetheoddsofsuccessthanonethatstrivesattheoutsettoachieveanin-depthunderstandingoftheproblemanditsimportancetothefirm.Withthisinmind,wedevelopedafour-stepprocessfordefiningandarticulatingproblems,whichwehavehonedwithourclients.Itconsistsofaskingaseriesofquestionsandusingtheanswerstocreateathoroughproblemstatement.Thisprocessisimportantfortworeasons.First,itralliestheorganizationaroundasharedunderstandingoftheproblem,whythefirmshouldtackleit,andthelevelofresourcesitshouldreceive.Firmsthatdon’tengageinthisprocessoftenallocatetoofewresourcestosolvingmajorproblemsortoomanytosolvinglow-priorityorwronglydefinedones.It’susefultoassignavaluetothesolution:Anorganizationwillbemorewillingtodevoteconsiderabletimeandresourcestoaneffortthatisshowntorepresenta$100millionmarketopportunitythantoaninitiativewhosevalueismuchlessorisunclear.Second,theprocesshelpsanorganizationcastthewidestpossiblenetforpotentialsolutions,givinginternalandexternalexpertsindisparatefieldstheinformationtheyneedtocracktheproblem. Thisarticlealsoappearsin: HBR’s10MustReadsonNonprofitsandtheSocialSectors LeadershipandManagingPeople Book 24.95 AddtoCart Save Share Toillustratehowtheprocessworks,we’lldescribeaninitiativetoexpandaccesstocleandrinkingwaterundertakenbythenonprofitEnterpriseWorks/VITA,adivisionofReliefInternational.EWV’smissionistofostereconomicgrowthandraisethestandardoflivingindevelopingcountriesbyexpandingaccesstotechnologiesandhelpingentrepreneursbuildsustainablebusinesses. TheorganizationchoseJonNaugle,itstechnicaldirector,astheinitiative’s“problemchampion.”Individualsinthisroleshouldhaveadeepunderstandingofthefieldordomainandbecapableprogramadministrators.Becauseproblemchampionsmayalsobechargedwithimplementingsolutions,aprovenleaderwiththeauthority,responsibility,andresourcestoseetheprojectthroughcanbeinvaluableinthisrole,particularlyforalargerandmorestrategicundertaking.Naugle,anengineerwithmorethan25yearsofagriculturalandrural-developmentexperienceinEastandWestAfricaandtheCaribbean,fitthebill.Hewassupportedbyspecialistswhounderstoodlocalmarketconditions,availablematerials,andothercriticalissuesrelatedtothedeliveryofdrinkingwater. Step1:EstablishtheNeedforaSolution Thepurposeofthisstepistoarticulatetheprobleminthesimplesttermspossible:“WearelookingforXinordertoachieveZasmeasuredbyW.”Suchastatement,akintoanelevatorpitch,isacalltoarmsthatclarifiestheimportanceoftheissueandhelpssecureresourcestoaddressit.Thisinitialframinganswersthreequestions: Whatisthebasicneed? Thisistheessentialproblem,statedclearlyandconcisely.Itisimportantatthisstagetofocusontheneedthat’sattheheartoftheprobleminsteadofjumpingtoasolution.Definingthescopeisalsoimportant.Clearly,lookingforlubricantforapieceofmachineryisdifferentfromseekingaradicallynewmanufacturingprocess. ThebasicneedEWVidentifiedwasaccesstocleandrinkingwaterfortheestimated1.1billionpeopleintheworldwholackit.Thisisapressingissueeveninareasthathaveplentyofrainfall,becausethewaterisnoteffectivelycaptured,stored,anddistributed. Whatisthedesiredoutcome? Answeringthisquestionrequiresunderstandingtheperspectivesofcustomersandotherbeneficiaries.(TheFiveWhysapproachcanbeveryhelpful.)Again,avoidthetemptationtofavoraparticularsolutionorapproach.Thisquestionshouldbeaddressedqualitativelyandquantitativelywheneverpossible.Ahigh-levelbutspecificgoal,suchas“improvingfuelefficiencyto100mpgby2020,”canbehelpfulatthisstage. Inansweringthisquestion,Naugleandhisteamrealizedthattheoutcomehadtobemorethanaccesstowater;theaccesshadtobeconvenient.WomenandchildrenincountriessuchasUgandaoftenmustwalklongdistancestofetchwaterfromvalleysandthencarryituphilltotheirvillages.ThedesiredoutcomeEWVdefinedwastoprovidewaterfordailyfamilyneedswithoutrequiringenormousexpendituresoftimeandenergy. Whostandstobenefitandwhy? Answeringthisquestioncompelsanorganizationtoidentifyallpotentialcustomersandbeneficiaries.Itisatthisstagethatyouunderstandwhether,say,youaresolvingalubricantproblemfortheengineerorfortheheadofmanufacturing—whosedefinitionsofsuccessmayvaryconsiderably. Iftheproblemyouwanttosolveisindustrywide,it’scrucialtounderstandwhythemarkethasfailedtoaddressit. Byponderingthisquestion,EWVcametoseethatthebenefitswouldaccruetoindividualsandfamiliesaswellastoregionsandcountries.Womenwouldspendlesstimewalkingtoretrievewater,givingthemmoretimeforworkinginthefieldorinoutsideemploymentthatwouldbringtheirfamiliesneededincome.Childrenwouldbeabletoattendschool.Andoverthelongerterm,regionsandcountrieswouldbenefitfromtheimprovededucationandproductivityofthepopulation. Step2:JustifytheNeed Thepurposeofansweringthequestionsinthisstepistoexplainwhyyourorganizationshouldattempttosolvetheproblem. Istheeffortalignedwithourstrategy? Inotherwords,willsatisfyingtheneedservetheorganization’sstrategicgoals?Itisnotunusualforanorganizationtobeworkingonproblemsthatarenolongerinsyncwithitsstrategyormission.Inthatcase,theeffort(andperhapsthewholeinitiative)shouldbereconsidered. InthecaseofEWV,simplyimprovingaccesstocleandrinkingwaterwouldn’tbeenough;tofittheorganization’smission,thesolutionshouldgenerateeconomicdevelopmentandopportunitiesforlocalbusinesses.Itneededtoinvolvesomethingthatpeoplewouldbuy. Inaddition,youshouldconsiderwhethertheproblemfitswithyourfirm’spriorities.SinceEWV’sotherprojectsincludedprovidingaccesstoaffordableproductssuchascookstovesandtreadlepumps,thedrinkingwaterprojectwasappropriate. Whatarethedesiredbenefitsforthecompany,andhowwillwemeasurethem? Infor-profitcompanies,thedesiredbenefitcouldbetoreacharevenuetarget,attainacertainmarketshare,orachievespecificcycle-timeimprovements.EWVhopedtofurtheritsgoalofbeingarecognizedleaderinhelpingtheworld’spoorbytransferringtechnologythroughtheprivatesector.Thatbenefitwouldbemeasuredbymarketimpact:Howmanyfamiliesarepayingforthesolution?Howisitaffectingtheirlives?Aresalesandinstallationcreatingjobs?Giventhepotentialbenefits,EWVdeemedtheprioritytobehigh. Howwillweensurethatasolutionisimplemented? Assumethatasolutionisfound.Someoneintheorganizationmustberesponsibleforcarryingitout—whetherthatmeansinstallinganewmanufacturingtechnology,launchinganewbusiness,orcommercializingaproductinnovation.Thatpersoncouldbetheproblemchampion,butheorshecouldalsobethemanagerofanexistingdivision,across-functionalteam,oranewdepartment. AtEWV,JonNauglewasalsoputinchargeofcarryingoutthesolution.Inadditiontohistechnicalbackground,Nauglehadatrackrecordofsuccessfullyimplementingsimilarprojects.Forinstance,hehadservedasEWV’scountrydirectorinNiger,whereheoversawacomponentofaWorldBankpilotprojecttopromotesmall-scaleprivateirrigation.Hispartoftheprojectinvolvedgettingtheprivatesectortomanufacturetreadlepumpsandmanuallydrillwells. Itisimportantatthisstagetoinitiateahigh-levelconversationintheorganizationabouttheresourcesasolutionmightrequire.Thiscanseempremature—afterall,you’restilldefiningtheproblem,andthefieldofpossiblesolutionscouldbeverylarge—butit’sactuallynottooearlytobeginexploringwhatresourcesyourorganizationiswillingandabletodevotetoevaluatingsolutionsandthenimplementingthebestone.Evenattheoutset,youmayhaveaninklingthatimplementingasolutionwillbemuchmoreexpensivethanothersintheorganizationrealize.Inthatcase,it’simportanttocommunicatearoughestimateofthemoneyandpeoplethatwillberequiredandtomakesurethattheorganizationiswillingtocontinuedownthispath.Theresultofsuchadiscussionmightbethatsomeconstraintsonresourcingmustbebuiltintotheproblemstatement.Earlyoninitsdrinkingwaterproject,EWVsetacaponhowmuchitwoulddevotetoinitialresearchandthetestingofpossiblesolutions. Nowthatyouhavelaidouttheneedforasolutionanditsimportancetotheorganization,youmustdefinetheproblemindetail.Thisinvolvesapplyingarigorousmethodtoensurethatyouhavecapturedalltheinformationthatsomeone—includingpeopleinfieldsfarremovedfromyourindustry—mightneedtosolvetheproblem. Step3:ContextualizetheProblem Examiningpasteffortstofindasolutioncansavetimeandresourcesandgeneratehighlyinnovativethinking.Iftheproblemisindustrywide,it’scrucialtounderstandwhythemarkethasfailedtoaddressit. HowWell-DefinedProblemsLeadtoBreakthroughSolutions TheSubarcticOilProblem Morethan20yearsafterthe1989ExxonValdezoilspill,cleanupteamsoperatinginsubarcticwatersstillstruggledbecauseoilbecamesoviscousatlowtemperaturesthatitwasdifficulttopumpfrombargestoonshorecollectionstations. HowtheProblemWasDefined Initssearchforasolution,theOilSpillRecoveryInstituteframedtheproblemasoneof“materialsviscosity”ratherthan“oilcleanup”andusedlanguagethatwasnotspecifictothepetroleumindustry.Thegoalwastoattractnovelsuggestionsfrommanyfields. TheWinner Achemistinthecementindustrywasawarded$20,000forproposingamodificationofcommerciallyavailableconstructionequipmentthatwouldvibratethefrozenoil,keepingitfluid. TheALSResearchProblem Bythelate2000s,researcherstryingtodevelopacureortreatmentforamyotrophiclateralsclerosis(ALS,orLouGehrig’sdisease)hadnotmademuchprogress.Onemajorobstaclewastheinabilitytodetectandtracktheprogressionofthediseaseaccuratelyandquickly.BecauseresearcherscouldnotknowpreciselywhatstageALSsufferershadreached,theygreatlyincreasedthepoolofparticipantsinclinicaltrialsandlengthenedtheirstudies,whichdroveupcostssomuchthatfewtreatmentsweredevelopedandevaluated. HowtheProblemWasDefined Insteadofframingitsinitiativeasasearchforacure,Prize4Life,anonprofitorganization,focusedonmakingALSresearchfeasibleandeffective.Thesolutionitsoughtwasabiomarkerthatwouldenablefasterandmore-accuratedetectionandmeasurementoftheprogressionofthedisease. TheWinner In2011,aresearcherfromBethIsraelHospitalinBostonwaspaid$1millionforanoninvasive,painless,andlow-costapproach,whichdetectsALSandassessesitsprogressionbymeasuringchangesinanelectricalcurrenttravelingthroughmuscle.ThisbiomarkerlowersthecostofALSresearchbyprovidingaccurateandtimelydatathatallowresearcherstoconductshorterstudieswithfewerpatients. TheSolarFlareProblem In2009NASAdecideditneededabetterwaytoforecastsolarflaresinordertoprotectastronautsandsatellitesinspaceandpowergridsonEarth.Themodelithadbeenusingforthepast30yearspredictedwhetherradiationfromasolarflarewouldreachEarthwithonlyafour-hourleadtimeandnomorethan50%accuracy. HowtheProblemWasDefined NASAdidnotaskpotentialsolverssimplytofindabetterwaytopredictsolarflares;instead,itpitchedtheproblemasadatachallenge,callingonexpertswithanalyticbackgroundstouseoneoftheagency’sgreatestassets—30yearsofspaceweatherdata—todevelopaforecastingmodel.Thisdata-drivenapproachnotonlyinvitedsolversfromvariousfieldsbutalsoenabledNASAtoprovideinstantfeedback,usingitsarchiveddata,ontheaccuracyofproposedmodels. TheWinner Asemiretiredradio-frequencyengineerlivinginruralNewHampshireuseddataanalysisandoriginalpredictivealgorithmstodevelopaforecastingmodelthatprovidedaneight-hourleadtimeand85%accuracy.Hewasawarded$30,000forthissolution. Whatapproacheshavewetried? Theaimhereistofindsolutionsthatmightalreadyexistinyourorganizationandidentifythosethatithasdisproved.Byansweringthisquestion,youcanavoidreinventingthewheelorgoingdownadeadend. Inpreviouseffortstoexpandaccesstocleanwater,EWVhadofferedproductsandservicesrangingfrommanuallydrilledwellsforirrigationtofiltersforhouseholdwatertreatment.Aswithallitsprojects,EWVidentifiedproductsthatlow-incomeconsumerscouldaffordand,ifpossible,thatlocalentrepreneurscouldmanufactureorservice.AsNaugleandhisteamrevisitedthoseefforts,theyrealizedthatbothsolutionsworkedonlyifawatersource,suchassurfacewaterorashallowaquifer,wasclosetothehousehold.Asaresult,theydecidedtofocusonrainwater—whichfallseverywhereintheworldtoagreaterorlesserextent—asasourcethatcouldreachmanymorepeople.Morespecifically,theteamturneditsattentiontotheconceptofrainwaterharvesting.“Rainwaterisdelivereddirectlytotheenduser,”Nauglesays.“It’sascloseasyoucangettoapipedwatersystemwithouthavingapipedwatersupply.” Whathaveotherstried? EWV’sinvestigationofpreviousattemptsatrainwaterharvestinginvolvedreviewingresearchonthetopic,conductingfivefieldstudies,andsurveying20countriestoaskwhattechnologywasbeingused,whatwasandwasnotworking,whatpreventedorencouragedtheuseofvarioussolutions,howmuchthesolutionscost,andwhatrolegovernmentplayed. “Oneofthekeythingswelearnedfromthesurveys,”Nauglesays,“wasthatonceyouhaveahardroof—whichmanypeopledo—touseasacollectionsurface,themostexpensivethingisstorage.” Herewastheproblemthatneededtobesolved.EWVfoundthatexistingsolutionsforstoringrainwater,suchasconcretetanks,weretooexpensiveforlow-incomefamiliesindevelopingcountries,sohouseholdsweresharingstoragetanks.Butbecausenoonetookownershipofthecommunalfacilities,theyoftenfellintodisrepair.Consequently,Naugleandhisteamhomedinontheconceptofalow-costhouseholdrainwater-storagedevice. Theirresearchintopriorsolutionssurfacedwhatseemedinitiallylikeapromisingapproach:storingrainwaterina525-gallonjarthatwasalmostastallasanadultandthreetimesaswide.InThailand,theylearned,5millionofthosejarshadbeendeployedoverfiveyears.Afterfurtherinvestigation,however,theyfoundthatthejarsweremadeofcement,whichwasavailableinThailandatalowprice.Moreimportant,thecountry’sgoodroadsmadeitpossibletomanufacturethejarsinonelocationandtransportthemintrucksaroundthecountry.Thatsolutionwouldn’tworkinareasthathadneithercementnorhigh-qualityroads.Indeed,throughinterviewswithvillagersinUganda,EWVfoundthatevenemptypolyethylenebarrelslargeenoughtoholdonly50gallonsofwaterweredifficulttocarryalongapath.Itbecameclearthataviablestoragesolutionhadtobelightenoughtobecarriedsomedistanceinareaswithoutroads. Whataretheinternalandexternalconstraintsonimplementingasolution? Nowthatyouhaveabetterideaofwhatyouwanttoaccomplish,it’stimetorevisittheissueofresourcesandorganizationalcommitment:Doyouhavethenecessarysupportforsolicitingandthenevaluatingpossiblesolutions?Areyousurethatyoucanobtainthemoneyandthepeopletoimplementthemostpromisingone? Externalconstraintsarejustasimportanttoevaluate:Arethereissuesconcerningpatentsorintellectual-propertyrights?Aretherelawsandregulationstobeconsidered?Answeringthesequestionsmayrequireconsultationwithvariousstakeholdersandexperts. Doyouhavethenecessarysupportforsolicitingandevaluatingpossiblesolutions?Doyouhavethemoneyandthepeopletoimplementthemostpromisingone? EWV’sexplorationofpossibleexternalconstraintsincludedexamininggovernmentpoliciesregardingrainwaterstorage.NaugleandhisteamfoundthatthegovernmentsofKenya,Tanzania,Uganda,andVietnamsupportedtheidea,butthestrongestproponentwasUganda’sministerofwaterandtheenvironment,MariaMutagamba.Consequently,EWVdecidedtotestthestoragesolutioninUganda. Step4:WritetheProblemStatement Nowit’stimetowriteafulldescriptionoftheproblemyou’reseekingtosolveandtherequirementsthesolutionmustmeet.Theproblemstatement,whichcapturesallthattheorganizationhaslearnedthroughansweringthequestionsintheprevioussteps,helpsestablishaconsensusonwhataviablesolutionwouldbeandwhatresourceswouldberequiredtoachieveit. Afull,cleardescriptionalsohelpspeoplebothinsideandoutsidetheorganizationquicklygrasptheissue.Thisisespeciallyimportantbecausesolutionstocomplexproblemsinanindustryordisciplineoftencomefromexpertsinotherfields(see“GettingUnusualSuspectstoSolveR&DPuzzles,”HBRMay2007).Forexample,themethodformovingviscousoilfromspillsinArcticandsubarcticwatersfromcollectionbargestodisposaltankscamefromachemistinthecementindustry,whorespondedtotheOilSpillRecoveryInstitute’sdescriptionoftheproblemintermsthatwereprecisebutnotspecifictothepetroleumindustry.Thustheinstitutewasabletosolveinamatterofmonthsachallengethathadstumpedpetroleumengineersforyears.(Toreadtheinstitute’sfullproblemstatement,visithbr.org/problem-statement1.) Herearesomequestionsthatcanhelpyoudevelopathoroughproblemstatement: Istheproblemactuallymanyproblems? Theaimhereistodrilldowntorootcauses.Complex,seeminglyinsolubleissuesaremuchmoreapproachablewhenbrokenintodiscreteelements. ForEWV,thismeantmakingitclearthatthesolutionneededtobeastorageproductthatindividualhouseholdscouldafford,thatwaslightenoughtobeeasilytransportedonpoor-qualityroadsorpaths,andthatcouldbeeasilymaintained. Whatrequirementsmustasolutionmeet? EWVconductedextensiveon-the-groundsurveyswithpotentialcustomersinUgandatoidentifythemust-haveversusthenice-to-haveelementsofasolution.(Seethesidebar“ElementsofaSuccessfulSolution.”)Itdidn’tmattertoEWVwhetherthesolutionwasanewdeviceoranadaptationofanexistingone.Likewise,thesolutiondidn’tneedtobeonethatcouldbemass-produced.Thatis,itcouldbesomethingthatlocalsmall-scaleentrepreneurscouldmanufacture. ElementsofaSuccessfulSolution EnterpriseWorks/VITAsurveyedpotentialcustomersinUgandatodevelopalistofmust-haveandnice-to-haveelementsforaproductthatwouldprovideaccesstocleandrinkingwater.Thewinningsolution,shownhereinaUgandanvillage,metallthecriteria. Must-Have 1.Aprice,includinginstallation,ofnomorethan$20 2.Storagecapacityofatleast125gallons 3.Aweightlightenoughforoneadulttocarryahalfmileonroughpaths 4.Materialthatwouldpreventdeteriorationofwaterquality 5.Anestimateofthecostofoperatingandmaintainingthedeviceoverthreeyearsandaclearexplanationofhowtorepairandreplacecomponents 6.Ameans,suchasafilter,ofremovinggrossorganicmatterfromtheincomingrainstream 7.Ameans,suchasataporapump,ofextractingwaterwithoutcontaminatingthecontentsoftheunit 8.Amethodforcompletelydrainingthewaterandcleaningthesystem Nice-to-Have 1.Anaestheticallypleasingdesign 2.Additionalfunctionalitysothattheunitcouldbeusedformultiplepurposes 3.Featuressuchasamodulardesignorsalvageablepartsthatwouldaddvaluetothedeviceafteritslifetime ExpertsinrainwaterharvestingtoldNaugleandhisteamthattheirtargetpriceof$20wasunachievable,whichmeantthatsubsidieswouldberequired.ButasubsidizedproductwasagainstEWV’sstrategyandphilosophy. Whichproblemsolversshouldweengage? ThedeadendEWVhitinseekinga$20solutionfromthoseexpertsledtheorganizationtoconcludethatitneededtoenlistasmanyexpertsoutsidethefieldaspossible.ThatiswhenEWVdecidedtoengageInnoCentiveanditsnetworkof250,000solvers. Whatinformationandlanguageshouldtheproblemstatementinclude? Toengagethelargestnumberofsolversfromthewidestvarietyoffields,aproblemstatementmustmeetthetwingoalsofbeingextremelyspecificbutnotunnecessarilytechnical.Itshouldn’tcontainindustryordisciplinejargonorpresupposeknowledgeofaparticularfield.Itmay(andprobablyshould)includeasummaryofprevioussolutionattemptsanddetailedrequirements. Withthosecriteriainmind,Naugleandhisteamcraftedaproblemstatement.(Thefollowingistheabstract;forthefullproblemstatement,visithbr.org/problem-statement2.)“EnterpriseWorksisseekingdesignideasforalow-costrainwaterstoragesystemthatcanbeinstalledinhouseholdsindevelopingcountries.Thesolutionisexpectedtofacilitateaccesstocleanwateratahouseholdlevel,addressingaproblemthataffectsmillionsofpeopleworldwidewhoarelivinginimpoverishedcommunitiesorruralareaswhereaccesstocleanwaterislimited.Domesticrainwaterharvestingisaproventechnologythatcanbeavaluableoptionforaccessingandstoringwateryearround.However,thehighcostofavailablerainwaterstoragesystemsmakesthemwellbeyondthereachoflow-incomefamiliestoinstallintheirhomes.Asolutiontothisproblemwouldnotonlyprovideconvenientandaffordableaccesstoscarcewaterresourcesbutwouldalsoallowfamilies,particularlythewomenandchildrenwhoareusuallytaskedwithwatercollection,tospendlesstimewalkingdistancestocollectwaterandmoretimeonactivitiesthatcanbringinincomeandimprovethequalityoflife.” Toengagethelargestnumberofsolversfromthewidestvarietyoffields,aproblemstatementmustmeetthetwingoalsofbeingextremelyspecificbutnotunnecessarilytechnical. Whatdosolversneedtosubmit? Whatinformationabouttheproposedsolutiondoesyourorganizationneedinordertoinvestinit?Forexample,wouldawell-foundedhypotheticalapproachbesufficient,orisafull-blownprototypeneeded?EWVdecidedthatasolverhadtosubmitawrittenexplanationofthesolutionanddetaileddrawings. Whatincentivesdosolversneed? Thepointofaskingthisquestionistoensurethattherightpeoplearemotivatedtoaddresstheproblem.Forinternalsolvers,incentivescanbewrittenintojobdescriptionsorofferedaspromotionsandbonuses.Forexternalsolvers,theincentivemightbeacashaward.EWVofferedtopay$15,000tothesolverwhoprovidedthebestsolutionthroughtheInnoCentivenetwork. Howwillsolutionsbeevaluatedandsuccessmeasured? Addressingthisquestionforcesacompanytobeexplicitabouthowitwillevaluatethesolutionsitreceives.Clarityandtransparencyarecrucialtoarrivingatviablesolutionsandtoensuringthattheevaluationprocessisfairandrigorous.Insomecasesa“we’llknowitwhenweseeit”approachisreasonable—forexample,whenacompanyislookingforanewbrandingstrategy.Mostofthetime,however,itisasignthatearlierstepsintheprocesshavenotbeenapproachedwithsufficientrigor. EWVstipulatedthatitwouldevaluatesolutionsontheirabilitytomeetthecriteriaoflowcost,highstoragecapacity,lowweight,andeasymaintenance.Itaddedthatitwouldpreferdesignsthatweremodular(sothattheunitwouldbeeasiertotransport)andadaptableorsalvageableorhadmultiplefunctions(sothatownerscouldreusethematerialsaftertheproduct’slifetimeorsellthemtoothersforvariousapplications).Theoverarchinggoalwastokeepcostslowandtohelppoorfamiliesjustifythepurchase. TheWinner Ultimately,thesolutiontoEWV’srainwater-storageproblemcamefromsomeoneoutsidethefield:aGermaninventorwhosecompanyspecializedinthedesignoftouristsubmarines.Thesolutionheproposedrequirednoelaboratemachinery;infact,ithadnopumpsormovingparts.Itwasanestablishedindustrialtechnologythathadnotbeenappliedtowaterstorage:aplasticbagwithinaplasticbagwithatubeatthetop.Theouterbag(madeofless-expensive,wovenpolypropylene)providedthestructure’sstrength,whiletheinnerbag(madeofmore-expensive,linearlow-densitypolyethylene)wasimpermeableandcouldhold125gallonsofwater.Thetwo-bagapproachallowedtheinnerbagtobethinner,reducingthepriceoftheproduct,whiletheouterbagwasstrongenoughtocontainatonandahalfofwater. Thestructurefoldedintoapacketthesizeofabriefcaseandweighedabouteightpounds.Inshort,thesolutionwasaffordable,commerciallyviable,couldbeeasilytransportedtoremoteareas,andcouldbesoldandinstalledbylocalentrepreneurs.(Retailersmakefrom$4to$8perunit,dependingonthevolumetheypurchase.Installersofthegutters,downspout,andbaseearnabout$6.) EWVdevelopedaninitialversionandtesteditinUganda,wheretheorganizationaskedenduserssuchquestionsasWhatdoyouthinkofitsweight?Doesitmeetyourneeds?Evenmundaneissueslikecolorcameintoplay:Thewovenouterbagswerewhite,whichwomenpointedoutwouldimmediatelylookdirty.EWVmodifiedthedesignonthebasisofthisinput:Forexample,itchangedthecolorofthedevicetobrown,expandeditssizeto350gallons(whilekeepingthetargetpriceofnomorethan$20per125gallonsofwaterstorage),altereditsshapetomakeitmorestable,andreplacedtheoriginalsiphonwithanoutlettap. After14monthsoffieldtesting,EWVrolledoutthecommercialproductinUgandainMarch2011.BytheendofMay2012,50to60shops,villagesalesagents,andcooperativesweresellingtheproduct;morethan80entrepreneurshadbeentrainedtoinstallit;and1,418unitshadbeendeployedineightdistrictsinsouthwesternUganda. EWVdeemsthisasuccessatthisstageintherollout.Ithopestomaketheunitsavailablein10countries—andhavetensorhundredsofthousandsofunitsinstalled—withinfiveyears.Ultimately,itbelieves,millionsofunitswillbeinuseforavarietyofapplications,includinghouseholddrinkingwater,irrigation,andconstruction.Interestingly,themainobstacletogettingpeopletobuythedevicehasbeenskepticismthatsomethingthatcomesinsuchasmallpackage(thesizeofatypicalfive-gallonjerrican)canholdtheequivalentof70jerricans.Believingthattheremedyistoshowvillagerstheinstalledproduct,EWViscurrentlytestingvariouspromotionandmarketingprograms.AstheEWVstoryillustrates,criticallyanalyzingandclearlyarticulatingaproblemcanyieldhighlyinnovativesolutions.Organizationsthatapplythesesimpleconceptsanddeveloptheskillsanddisciplinetoaskbetterquestionsanddefinetheirproblemswithmorerigorcancreatestrategicadvantage,unlocktrulygroundbreakinginnovation,anddrivebetterbusinessperformance.Askingbetterquestionsdeliversbetterresults. AversionofthisarticleappearedintheSeptember2012issueofHarvardBusinessReview. ReadmoreonDecisionmakingandproblemsolving orrelatedtopic Strategicanalysis DS DwayneSpradlinisthepresidentandCEOofInnoCentive,anonlinemarketplacethatconnectsorganizationswithfreelanceproblemsolversinamultitudeoffields.Heisacoauthor,withAlpheusBingham,ofTheOpenInnovationMarketplace:CreatingValueintheChallengeDrivenEnterprise(FTPress,2011). Tweet Post Share Save GetPDF BuyCopies Print ReadmoreonDecisionmakingandproblemsolving orrelatedtopic Strategicanalysis PartnerCenter Diversity Latest Magazine Ascend Topics Podcasts Video Store TheBigIdea Data&Visuals CaseSelections