Ambiguity: The Fertile Ground of Problem Solving

Face it. Corporate life isn't very tidy. Relationships get complicated. Delayed decisions turn into dilemmas. Even the most carefully orchestrated plans get detoured or derailed by the unexpected. Executives regularly struggle to get enough information to (they hope) protect themselves from the inherent risks woven into every choice. Welcome to the world of ambiguity - the fertile ground of problem solving.

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A tolerance for ambiguity involves accepting and developing a level of comfort with situations where variables, alternatives, and outcomes are unclear or poorly defined. Leaders with a low tolerance for ambiguity feel threatened by the unknown and often choose courses of action that avoid risk and uncertainty—two frequent companions of opportunity. Neil Postman was right when he said, "People in distress will sometimes prefer a problem that is familiar to a solution that is not." Combine the possibility of failure with a distaste for uncertainty, add the fear of losing a job because of a bad decision, and you create the potential for an immobilized leader.

Every dollar that a company either spends or receives is the result of a decision and decisions naturally grow out of problems or creative opportunities.

Managers without a process for solving problems are rarely able to respond effectively to the rapid changes in a dynamic business environment. Leaders who demonstrate competence in using a defined method for problem solving and decision making can more readily seize strategic opportunities. The difference between these two approaches is measured in profitability.

Many organizations go to great lengths to avoid admitting they have any problems. Individuals who mention potential problems are sidelined as being negative or they are told they aren't team players. (More honestly, they aren't "yes" people.) But a company without problems is a company with a narrowly defined potential. A problem or opportunity exists whenever actual performance and expected performance are not the same and the difference is sufficient enough to be important to you. The presence of a problem is not the issue; not having a process for resolving problems or not knowing how to prevent problems is the challenge.

Knowing what kind of problem you are facing and knowing the appropriate problem solving tool for a given situation are critical abilities for those wanting to lead organizations in the uncharted waters of innovation and growth. A problem resolution process helps an individual or group focus their intelligence, experience, and information toward a common goal. For many organizations their greatest need is not more information or more ideas; their most pressing demand is having the ability to focus in a constructive way the information they already possess.

Entrepreneurs have often been viewed as having a higher tolerance for ambiguity and a much lower aversion to risk than the general population. However, an intriguing study conducted by the Fugua School of Business at Duke University confirmed that owner-managers are no less risk adverse than salaried counterparts. What separates independent business innovators from their corporate peers are exceptionally high levels of self-confidence and deeply held optimism. Entrepreneurs are just as scared as the rest of us when facing ambiguous situations and the unknowns of change. The difference is in the fact that they face challenges with a greater sense of confidence in their ability to work through problems to a satisfying resolution.

Self-confidence and optimism aren't reserved for a chosen few, only to be maintained through regular doses of motivational tapes and large quantities of caffeine. One of the easiest ways to develop self-confidence in solving difficult problems is by learning a process for problem solving that can be followed with consistent, expected results.

The following questions can help you evaluate your organization's ability to identify and solve problems and implement solutions that improve performance:

How many hours per month do you and/or the managers in your company invest in meetings that do not result in measurable, positive changes in performance?
How many hours each week do managers spend in "putting out fires" rather than proactively anticipating and preventing problems before they occur?
How often do people in your company fail to quickly and accurately identify the real cause of problems, resulting in inadequate or ineffective solutions?
Name the most creative breakthrough your company has experienced during the past three months. What measurable outcome did it achieve?
How could your financial results improve if decisions in your company were well thought-out, timely, and communicated effectively throughout your organization?

Does your leadership development curriculum include specific content that teaches people how to:

Identify the core issues behind problems quickly and accurately?
Make better, more timely decisions?
Anticipate and prevent problems before they occur?

M. Scott Peck could have had any corporation in his view when he reminded us that, "Life is a series of problems. Do we want to moan about them, or solve them?" (The Road Less Traveled, page 15). It is dangerous for companies to assume that their future leaders intrinsically know how to solve problems and make fact-based, logic-driven decisions. Critical thinking skills do not come naturally to many people—but these important mental processes can and should be taught.

Some problems are inevitable; many problems can be avoided. Denial won't help you in either scenario. Don't allow the lingering shadows of ambiguity and uncertainty to cloud your ability to see today's defining moments of opportunity.

Action Management Associates, Inc.