Three Layers of Business Problems

Every business owner and leader encounters various problems in their organizations. But not all issues are created equal, as they can be categorized into three distinct layers, each demanding a different approach to resolution.

Layer 1: Simple Mistakes

The first layer deals with situations where a defined process exists, and the involved individual is aware of their responsibilities, but they simply make a mistake. These are common occurrences, as even the best of us can slip up occasionally.

• Addressing Layer 1 problems involves reminding the individual of the correct process, often requiring a gentle nudge to get things back on track.
• Brief conversations or simple reminders can effectively resolve these issues.
• If these mistakes become recurring, it signals a deeper problem, such as stress, disengagement, or even burnout.
• In such cases, addressing the root cause is paramount, as it can involve providing support like better time management, more frequent breaks, or addressing personal issues affecting work performance.

Layer 2: Lack of Understanding

The second layer tackles situations where a process is established, but the individual lacks complete understanding. This can stem from factors like new hires still learning or inadequate training. The underlying problem is a knowledge gap, not simply a mistake.

• The solution for Layer 2 problems lies in providing training, whether through refresher courses or one-on-one sessions to review the process.
• The goal is to ensure the individual fully understands their responsibilities and has the necessary tools for success.
• Persistent Layer 2 problems indicate a need to revise training materials or methods. Analyzing training content against outcomes can reveal gaps and areas requiring improvement.
• Feedback should be shared within a week, allowing time for reassessment and retraining while keeping the issue fresh in the employee's mind.

Layer 3: Lack of Process

The third layer deals with situations where no process exists at all. Without established procedures, expecting the team to know what to do is unreasonable. Layer 3 problems often emerge when businesses grow or change, facing new challenges that existing processes cannot address. They signal the need to create or revamp new processes.

• Layer 3 problems are the most complex, requiring a fresh start. The initial step involves assessing the situation and defining the necessary actions.
• Once the problem is understood, creating a process that addresses the issue becomes paramount.
• This involves mapping out steps, assigning responsibilities, and ensuring alignment with the organization's overall goals.
• Training the team on the new process is essential for successful implementation, requiring workshops, ongoing support, and availability to answer questions.
• Persistent Layer 3 problems suggest that the created process may not adequately meet the team's needs, necessitating tweaking, updates, or supplementary processes.

Why Understanding the Layers Matters

Recognizing the three layers of business problems is crucial for effective problem solving in any organization. It prevents managers from overthinking or wasting time on Layer 1 problems, which require quick fixes.

• Managers should avoid rushing through Layer 3 problems as they demand careful planning and execution.
• Identifying trends is essential, as numerous Layer 2 problems might indicate a need to improve training methods.
• Similarly, frequent Layer 1 problems could signal the need to review hiring practices or provide more support to the team.
• By recognizing the problem's layer, you can set realistic expectations regarding the time and effort required to find a solution.

Conclusion

By adopting this framework, you can efficiently address business problems, saving time, effort, and potentially headaches. Next time you face a challenge, consider its layer and tailor your approach accordingly. This strategy empowers you to navigate business obstacles effectively and build a thriving organization.