Shortlist: 5 questions that help differentiate problem solving from decision-making

Many people use the terms problem solving and decision-making interchangeably, but they are not the same.  

1. What is the difference between problem solving and 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; 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. We 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.

So, 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. Both are both important skills for leaders to possess and hone. 

2. Problem solving or decision-making – which is most important?

While problem solving and decision-making go hand in hand, success in one doesn’t automatically lead to competence in the other. We need to make ongoing improvements in both skill sets.

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

3. How exactly 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 task for managers and leaders is deciding which problem to treat as a priority.

Decision-making in 3 steps:

Step 1: Use problem solving to identify potential solutions – this, in itself, may involve decision-making, such as deciding to hold meetings with stakeholders or assigning team members to tackle particular areas of the problem.

Step 2: Determine which solution is the best fit for the problem at hand.

Step 3: Make a decision on next steps to action the chosen solution.

4. And how can we use decision-making in problem solving?

When faced with a challenge, we break the problem down into manageable components that require decisions to be made.

5. How to do problem solving and decision-making relate to critical thinking?

Both problem solving and decision-making involve critical thinking.. Critical thinking is a process by which we question our 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.