INNOVATION NAVIGATOR

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Structured vs. unstructured problems

Many people have the feeling of being overwhelmed in today’s world. To a large extent, this has to do with the increase in unstructured problems we face in many areas of daily life. These challenges require a different approach than structured problems. Therefore, I would like to show the differences and describe possible solutions.

The differences between structured and unstructured problems

Here you will find three differences between structured and unstructured problems, each described with appropriate examples:

Difference 1: Clarity of the problem

Structured problems are clearly defined and usually well understood. They have a clear problem, known variables, and can usually be well described. Structured problems are often easier to solve because they are based on established rules, processes, or algorithms.

Example: A company wants to calculate the break-even point for a certain product. It knows the variable costs, the fixed costs and the selling price of the product. The problem is clearly defined and the calculation of the break-even point can be performed using a known formula.

Unstructured problems , on the other hand, are often unclear, vague, or poorly defined. They contain many unknown or difficult-to-measure variables and may change over time. Unstructured problems are usually more difficult to solve because they are not based on established rules or processes and often require creative or innovative approaches.

Example: A company notices that employee motivation has dropped recently, but cannot identify the exact reasons. This problem is unclear and requires in-depth study to identify the factors contributing to declining motivation and to develop appropriate measures to improve the situation.

Difference 2: Complexity

Structured problems are usually less complex because they are based on known parameters and a fixed solution path. They can usually be broken down into smaller, more easily detachable parts.

Example: A company has a limited number of advertising spaces in various media and wants to allocate the optimal advertising budget among these media to achieve the highest possible reach. This problem can be solved using linear programming techniques based on known data and goals.

Unstructured problems are often more complex because they are influenced by multiple, interrelated factors and do not have a unique solution. They require a high level of critical thinking, analysis, and creative problem solving to arrive at a solution.

Example: A company wants to develop a completely new business idea in order to survive in a competitive market. This problem is complex because there are many unknown variables and factors that can affect the success of the business idea. It takes creativity, market research and experimentation to develop a promising business idea.

Difference 3: Solution approaches

Structured problems can usually be solved by standardized, linear solution approaches based on established rules or algorithms. These include mathematical models, process diagrams, and other systematic approaches.

Example: A company wants to optimize its inventories to avoid both overstocks and delivery bottlenecks. There are standardized solution approaches that can be applied to optimize inventories.

Unstructured problems, on the other hand, require creative, innovative and often unconventional approaches to solving them. These include brainstorming, design thinking, and other collaborative, experimental methods. Unstructured problems may also require a combination of different approaches and interdisciplinary thinking to find a successful solution.

Example: A company wants to improve its corporate culture in order to increase employee satisfaction and retention. There is no set solution or formula to solve this problem. Instead, different approaches need to be tried, such as improving internal communication, introducing flexible working hours or creating opportunities for professional development.

Reasons for the increase in unstructured problems

There are different reasons for the increase of unstructured problems, especially in the business context. Some of them are:

Growing complexity

The world is becoming increasingly interconnected and complex, and companies must deal with a variety of factors such as global markets, new technologies and changing customer needs. These factors can lead to unstructured problems as it becomes more difficult to find clear solutions to complex challenges.

Faster change

Technological advances and globalization have led to an increased pace of change in many industries. Companies need to adapt quickly to new trends and developments, which can lead to unstructured problems for which there are no defined solutions.

Competitive pressure

Increasing competition in global markets is forcing companies to constantly evolve and find new ways to stand out from the competition. This can lead to companies facing unstructured problems when trying to develop innovative products, services or business models.

Information overload

The abundance of information available in today’s world can make it difficult to distinguish relevant information from unimportant information and make informed decisions based on that information. This can exacerbate unstructured problems, as solving such problems often requires the ability to effectively analyze and use a variety of information.

Increasing customer demands

Customers today are better informed and have higher expectations of products and services. Companies must meet these increasing demands and develop innovative solutions to satisfy their customers. This can create unstructured problems as there are no set solutions to meet the different needs and wants of all customers.

Unstructured problems as a challenge in the daily work routine

Many people have difficulty coping with unstructured problems. Especially when they occur in high-pressure situations, the following behaviors can be observed:

Indecision

Individuals who have difficulty tackling unstructured problems tend to be indecisive. They have a hard time making decisions. This leads them to endlessly collect and analyze information without ever arriving at a solution or decision (also known as “analysis paralysis”).

Inflexibility

Some people are less open to change and new ideas and have difficulty adapting their thinking and approaches in complex situations. This inflexibility can make it difficult to effectively manage unstructured problems, as such problems often require creative and unconventional solutions. Here, brainstorming methods often help to expand the corridor of thought.

Frustration and stress

Unstructured problems can be overwhelming for some people because they bring uncertainty and complexity. This often leads to stress and frustration when confronted with such problems, which in turn can further impair their problem-solving abilities. A spiral of frustration can develop.

Quick judgment

Some people are quick to jump to conclusions and commit to a particular solution without thoroughly analyzing the problem and considering different approaches. This behavior can lead them to find less effective solutions to unstructured problems.

Isolation

Some people prefer to work on problems alone rather than seek collaboration and exchange with others. However, this can be less effective for unstructured problems, as sharing knowledge and experience often helps to find better solutions. While there are ideation methods like the Lateral Map that produce good results on their own, the quality of the solutions is always improved by the different perspectives in a multidisciplinary team.

Focus on details

Some people tend to focus on details and particulars instead of seeing the big picture. For unstructured problems, this focus on detail can cause them to lose track of the underlying problem and have difficulty prioritizing. Helpful here is often a method such as the well-known mind mapping, which brings information coherently into an overview.

Risk aversion

Some people shy away from experimentation and unconventional approaches that can be helpful in dealing with unstructured problems. This risk aversion can lead them to focus on proven and known solutions that may be less effective at solving complex and unstructured problems.

Thinking and behavioral approaches to solving unstructured problems.

Problem analysis: At the beginning, try to analyze the problem in detail and identify all relevant factors and variables. Use methods like the mind map to make all information visible. Write down questions, gather information, and look for connections to better understand the problem. The Ishikawa diagram can help to understand causes and effects. If you don’t like the problem, use the Problem Tackler, which turns difficult problems into exciting challenges.

Creative thinking: When working with unstructured problems, it helps to think creatively and innovatively to find new solutions. Unstructured problems require a great openness to unconventional ideas and approaches that go beyond the traditional framework. Exciting methods for your team here are the stimulus image method, SCAMPER or even the Force Fit Game. Often referred to in this context is lateral thinking, an approach that aims to find unusual or unconventional solutions to problems by exploring new perspectives and ways of thinking. Lateral thinking encourages thinking outside the box and discovering unexpected connections or ideas that can lead to innovative solutions.

Critical Thinking: Critical thinking helps to think logically and in a structured way about a problem, questioning hypotheses, assumptions, and conclusions. This approach encourages a thorough analysis of the problem and evaluation of alternative solutions based on facts and evidence.

Hypothesis-based thinking: This approach involves making hypotheses or assumptions about the problem and then systematically testing them to determine their validity. This can help reduce uncertainty in unstructured problems and speed up problem solving.

Adaptability: In the face of unstructured problems, flexibility and adaptability is an important personality trait. Your willingness is needed to change strategies and approaches as new information or circumstances arise. Be open to learning from mistakes and setbacks, thinking approaches like the Lean Startup Method can help.

Collaboration: When faced with unstructured problems, many people seek collaboration and exchange with others. Working together and sharing knowledge and experience can lead to better solutions in many cases. Methods such as the team thermometer help to understand team dynamics and make them visible.

Perseverance: Unstructured problems can be frustrating and difficult. A high level of perseverance and persistence is necessary for the solution. You must be willing to continue to deal with the problem even if you encounter difficulties or do not find an immediate solution.

Experimenting and testing: When tackling unstructured problems, experimenting and testing different approaches and solutions is an important activity. To do this, it is important to be willing to take risks and analyze the results of experiments in order to continuously learn and adapt your strategies. Retrospectives or techniques like the AAR review are helpful here.

Focus on the big picture: try to see the big picture and look at the problem in the context of its environment and its long-term impact. Prioritize and focus on the most important aspects of the problem without getting lost in details.

Design Thinking: Design thinking is a user-centered approach that aims to solve problems by understanding the needs and wants of users or customers. This approach includes various phases such as empathy, problem definition, ideation, prototyping, and testing to iteratively arrive at solutions that meet user needs.

Handwritten by Christian Buchholz