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Problem-solving strategies

Problem solving is the ability to understand a difficult situation and find viable ways to improve or transform it.

Every day we face problems, but we rarely analyze them in a structured way. In fact, it’s common to improvise, react in a rush, or even avoid the situation. However, the ideal approach is to face them with an organized, reasoning-based method—especially in professional settings.

When you understand what problem solving is and how to apply it in a structured way, your productivity improves. At the same time, you strengthen your leadership and decision-making.

Many innovative companies use this approach, including DolarApp, as it helps us optimize processes and improve products.

That’s why the problem-solving strategies we’re sharing today will be valuable—whether you run a business, work as a freelancer, or are part of a team.

Problem-solving strategies: Definition, steps, and tips to improve

What is problem solving?

It’s the ability to identify an obstacle, analyze its causes, and apply effective solutions to achieve a specific objective. It relies on two key skills:

1. Critical thinking, which provides structure and logic.

2. Creativity, which introduces flexibility and fresh ideas.

Together, they enable deep and effective problem resolution, both in personal life and in professional environments.

On a personal level, it lets us handle difficult situations with greater clarity and find alternatives when things don’t go as expected.

At the business level, it’s vital to sustain performance over the long term—especially when solving problems at every stage of a product’s life cycle.

That’s why problem solving and critical thinking are among the most valued skills for staying competitive in a changing environment.

Steps for effective problem solving

How do you solve problems?

The key is to understand the problem and move toward the most effective solution.

These are the six steps you can apply to any type of problem, from personal to business:

  1. Identify the problem. The first step to effective problem solving is knowing what’s happening and what the real impact is. The more specific the definition, the easier it will be to find a useful solution.

  2. Analyze the causes. Next, investigate what’s causing it. Here is where data, context, and key questions (what, how, when, why) come into play to reach the root.

  3. Generate alternatives. With the problem and its causes clear, it’s time to propose options. In this phase, encourage creativity, brainstorm, and avoid dismissing any idea too quickly to widen the range of solutions.

  4. Evaluate options. Analyze each alternative calmly: required resources, risks, benefits, and short- and long-term impact. The goal is to filter and keep the option that best aligns with your objectives and constraints.

  5. Apply the best option. After choosing a solution, put it into practice with a concrete plan: who will do what, when, and how. During implementation, follow up and adjust if something isn’t working as expected.

  6. Evaluate the result. Review whether the solution actually solved the problem and what you learned.

Reflecting will help you improve your problem-solving approach in the future and respond better to similar situations.

Effective strategies for solving problems

Effective problem solving also depends on choosing the right strategy for each situation.

Fortunately, there are several methods and/or strategies for problem solving; here are the most useful:

  • Brainstorming.

  • Cause-and-effect diagram.

  • The 5 Whys method.

  • Lateral thinking.

  • SWOT analysis.

Structured brainstorming

Brainstorming is one of the most effective problem-solving methods—especially when you feel blocked and need to see alternatives you haven’t considered.

First you open up the range of options and then you group, filter, and select the most viable proposals.

You can use this strategy alone or with others:

  • If you work as a freelancer: spend a few minutes jotting down any idea that comes to mind without judging it—the key is to open possibilities.

  • If you’re on a team: share the problem in advance so each person arrives with their own proposals.

Collaboration helps you see angles that might go unnoticed and find more complete solutions to complex problems.

Cause-and-effect diagram (Ishikawa)

The Ishikawa diagram is very useful for analyzing the origin of a problem, as it allows you to organize its possible causes in an orderly way.

You can group them into categories (people, processes, resources, or environment). By visualizing all causes together, it’s easier to detect patterns and decide where to intervene first.

Lateral thinking

Lateral thinking invites you to break habitual frameworks and question assumptions you take for granted.

The goal is to seek alternative paths, use analogies, pose “what if…” scenarios, or combine ideas that at first don’t seem related. As a result, more creative and less obvious solutions can emerge.

The 5 Whys method

Like the cause-and-effect diagram, the 5 Whys technique helps you reach the root cause.

It involves asking “why?” consecutively (about five times—or as many as needed). It’s a simple but powerful tool to avoid superficial fixes.

Personal or business SWOT analysis

A SWOT analysis lets you assess the internal and external factors influencing the problem.

By putting strengths, opportunities, weaknesses, and threats on the table, you can clearly see two things: the resources you have and the risks you face—and the potential paths you could leverage.

Practical problem-solving examples

The following examples show how analysis, creativity, and focus can turn a problem into an improvement.

Example 1: A remote team improves communication

  • Problem: scattered messages and lack of follow-up.

  • Causes: each person uses different channels.

  • Alternatives generated: daily meetings, a single channel, and written summaries.

  • Options evaluated: time, workload, and impact on coordination.

  • Best option: daily 10–15 minute stand-ups and one main channel for agreements.

  • Result: fewer reworks and better-defined tasks.

Example 2: A fintech reduces errors with automation

  • Problem: frequent errors in manual data entry and validation.

  • Causes: repetitive tasks and lack of automatic controls.

  • Alternatives generated: automate critical steps, create checklists, and add pre-validations.

  • Options evaluated: cost, implementation time, expected error reduction, and impact on customer experience.

  • Best option: automate data validation and use checklists for the rest of the process.

  • Result: fewer errors, faster response times, and a team focused on higher-value tasks.

Example 3: A freelancer organizes tasks better with digital tools

  • Problem: last-minute deliveries and a constant sense of disorder.

  • Causes: lack of daily planning and unclear priorities.

  • Alternatives generated: use a task app, batch activities, and schedule Deep Work blocks.

  • Options evaluated: ease of use and fit with their routine.

  • Best option: a management app with calendar plus focused work blocks.

  • Result: more control over deadlines, less stress, and higher-quality deliveries.

Tips to improve your problem-solving ability

In addition to applying problem-solving strategies, it is important to develop habits to hone this skill.

Therefore, we suggest some tips that may be useful for improving your problem-solving ability:

  • Control your emotions so you can decide calmly instead of reacting impulsively.

  • Practice critical thinking to analyze information clearly and make more objective decisions.

  • Learn to listen better, express your ideas clearly, and collaborate without misunderstandings to achieve effective communication.

  • Evaluate your results to learn from each experience and strengthen your problem-solving methods.

These recommendations can help you personally, at work, or as a foundation for facing challenges with more confidence and perspective.

Conclusion

We all have the ability to solve simple situations—we do it every day. But when it comes to complex problems, you need a methodical approach. That’s the key to turning each challenge into a chance to improve how you think and how you work.

By applying clear steps and problem-solving strategies, you’ll analyze each situation more precisely, reduce errors, and make better decisions.

When you better understand the causes and available options, new possibilities open up. That’s how innovation accelerates to optimize products and processes.

Beyond the methods, DolarApp is a useful, effective option for financial management. Use it to send/receive digital dollars and euros and to exchange currencies at a competitive rate.

Frequently asked questions

What is problem solving and what is it for?

It’s the ability to understand a difficult situation, analyze its causes, and find effective solutions. It helps you act with greater precision, reduce failures along the way, and move forward more clearly in any field.

What are the steps to solve a problem effectively?

First identify the problem and what’s causing it to outline possible solutions. Then compare them and choose the most suitable option to put into practice. Lastly, review the outcome to learn and improve.

What techniques are used to solve problems?

There are several approaches, including brainstorming, the 5 Whys, and SWOT analysis. Each technique helps you view the problem from different angles and find more complete solutions.

What skills are developed by solving problems?

Critical thinking, creativity, effective communication, analytical ability, and decision-making are strengthened. It also improves emotional management and the ability to work in teams and adapt to complex situations.

Sources:

Most valued skills

The 5 Whys technique

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