Exists when there is a difference between an actual situation and a desired situation.

The key difference between problem solving and decision making is that solving problems is a process, whereas making decisions is an action based on insights derived during the problem-solving process. Many people use the terms problem solving and decision making interchangeably, but they are not the same.

Problem solving vs decision making

Problem solving is an analytical process used to identify the possible solutions to the situation at hand. Making decisions is a part of problem solving. Problem solving is a complex process, and judgement calls – or decisions – will have to be made on the way.

Decision making is a choice made by using one’s judgement. The art of making sound decisions is a particularly important skill for leaders and managers. You may need to make numerous decisions as part of the problem-solving process. And, of course, leaders and managers will need to use their decision-making skills to determine which solution to pursue. They will also typically need to confirm and set into motion next steps to fix the problem.

Problem solving or decision making – which is most important?

Both problem solving and decision making go hand in hand, but success in one doesn’t automatically lead to the other. Those in leadership and management roles need to understand the difference between the two and aim to make lifelong improvements in both skillsets.

Decisions are made when multiple opportunities for action present themselves. You can make decisions, yet never solve the problem.

You can be adept at problem solving, or finding the root of an issue, and still lack the decision making skills to choose and action viable next steps to bring about a successful outcome.

Quick decisions don’t always lead to best-case solutions. A purist approach to problem solving doesn’t take into account that sometimes a business needs to make the best decision under the existing circumstances (where budget, time and resource constraints might play a factor).

How does problem solving involve decision making?

Decision-making is part of the problem-solving process. A business may have multiple problems that all demand time and resource. A key role in management and leadership positions is deciding which problem to treat as a priority.

Decision making in 3 steps:

1. Use problem solving to identify potential solutions – this may involve decision making, such as deciding to hold meetings with stakeholders or assigning team members to tackle particular areas of the problem
2. Determine which solution is the best fit for the problem at hand
3. Make a decision on next steps to action the chosen solution

The similarities between problem solving and decision making

Problem solving and decision making are not synonymous with each other, but they are both important skills for leaders to have. People often use the terms problem solving and decision making interchangeably specifically because they have elements in common.

Both problem solving and decision making involve critical thinking.

Critical thinking is a process by which you question your own assumptions – as well as those of others - in order to decide on next steps to solve a problem. Critical thinking often results in using a mix of research, analysis, questioning and exploration of new ideas in order to gain rich insight into a situation, becoming informed in a way that isn’t restricted by the subjective perspectives of peers or the status quo.

See our critical thinking tips for HR managers and leaders for a deep dive into critical thinking, or take an eagle’s eye view with our 3 golden tips on how to improve your critical thinking.

How to use decision making in solving problems

It all boils down to one thing: When faced with a challenge, break the problem down into manageable components that require decisions to be made.

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For over 60 years, Kepner-Tregoe has been helping companies across industries and geographies to develop and mature their problem-solving capabilities through KT’s industry leading approach to training and the implementation of best practice processes. Considering that problem solving is a part of almost every person’s daily life (both at home and in the workplace), it is surprising how often we are asked to explain what problem solving is and why it is important.

Problem solving is at the core of human evolution. It is the methods we use to understand what is happening in our environment, identify things we want to change and then figure out the things that need to be done to create the desired outcome. Problem solving is the source of all new inventions, social and cultural evolution, and the basis for market based economies. It is the basis for continuous improvement, communication and learning.

If this problem-solving thing is so important to daily life, what is it?

Problem-solving is the process of observing what is going on in your environment; identifying things that could be changed or improved; diagnosing why the current state is the way it is and the factors and forces that influence it; developing approaches and alternatives to influence change; making decisions about which alternative to select; taking action to implement the changes; and observing impact of those actions in the environment.

Each step in the problem-solving process employs skills and methods that contribute to the overall effectiveness of influencing change and determine the level of problem complexity that can be addressed. Humans learn how to solve simple problems from a very early age (learning to eat, make coordinated movements and communicate) – and as a person goes through life problem-solving skills are refined, matured and become more sophisticated (enabling them to solve more difficult problems).

Problem-solving is important both to individuals and organizations because it enables us to exert control over our environment.

Fixing things that are broken

Some things wear out and break over time, others are flawed from day-1. Personal and business environments are full of things, activities, interactions and processes that are broken or not operating in the way they are desired to work. Problem-solving gives us a mechanism for identifying these things, figuring out why they are broken and determining a course of action to fix them.

Addressing risk

Humans have learned to identify trends and developed an awareness of cause-and-effect relationships in their environment. These skills not only enable us to fix things when they break but also anticipate what may happen in the future (based on past-experience and current events). Problem-solving can be applied to the anticipated future events and used to enable action in the present to influence the likelihood of the event occurring and/or alter the impact if the event does occur.

Improving performance

Individuals and organizations do not exist in isolation in the environment. There is a complex and ever-changing web of relationships that exist and as a result, the actions of one person will often have either a direct impact on others or an indirect impact by changing the environment dynamics. These interdependencies enable humans to work together to solve more complex problems but they also create a force that requires everyone to continuously improve performance to adapt to improvements by others. Problem-solving helps us understand relationships and implement the changes and improvements needed to compete and survive in a continually changing environment.

Seizing opportunity

Problem solving isn’t just about responding to (and fixing) the environment that exists today. It is also about innovating, creating new things and changing the environment to be more desirable. Problem-solving enables us to identify and exploit opportunities in the environment and exert (some level of) control over the future.

Problem solving skills and the problem-solving process are a critical part of daily life both as individuals and organizations. Developing and refining these skills through training, practice and learning can provide the ability to solve problems more effectively and over time address problems with a greater degree of complexity and difficulty. View KT’s Problem Solving workshop known to be the gold standard for over 60 years.

What is the exists when there is a difference between the actual situation and the desired situation?

What is the difference between a problem and situation?

Can be defined as the process of identifying a difference between the actual and the desired state of affairs and then taking action to resolve the difference?

What makes a situation a problem?