Juan's Problem

Jose:  This reminds me of a problem my dad had when he managed a department store.   This was before he owned his own business.   He told me about it to impress Mom.   She always said what a lunk-head he was, and he always had to prove her wrong!   Let me give you a chance to show you how to identify the true problem.

Jose's father, Juan, is a manager of a small department store.   Juan has a problem.   Recently, sales have dropped off.   What are the first things Juan should do?   Select as many answers as apply then compare what you have selected with the list below.

1. Fire any staff who received a bad job review - they are inefficient.
2. Conduct a customer poll.
3. Decide who this problem affects.
4. Talk to other store owners.
5. Have a sale.
6. Talk to his staff about the problem.
7. Find out what economic influences could be affecting sales.

Compare your list to this one:

1. Fire any staff who received a bad job review - they are inefficient. - Some staff may need to improve in their job, but this is probably only a symptom of the problem, not the problem itself.
2. Conduct a customer poll. - Yes, Juan could do this, but should be careful to separate fact from opinion.
3. Decide who this problem affects. - Yes, Juan should decide who is affected by this problem.
4. Talk to other store owners. - It is good to talk to other key people when determining the true problem.
5. Have a sale. - This is a possible solution to the problem, but Juan should first define the true problem before deciding on solutions.
6. Talk to his staff about the problem. - Correct.   Juan should talk to key people to see how they feel about the problem.
7. Find out what economic influences could be affecting sales. - This is a good idea.   Always try to look beyond the boundaries of a problem for outside influences.

After Juan talked to other employees, other store owners, and reviewed the economic status of his customers, he made a list of reasons why he had this problem.   What should Juan include in his list?   Choose all that apply then read the next section to see if your list agrees with Juan's:

1. What would happen if he solved the problem.
2. Items he could place on sale.
3. Projected sales for this month vs. expected sales for this month.
4. What would happen if he reduced all part-time employee hours.
5. Salary revisions based on projected sales.
6. What the store policy is on monthly sales loss.
7. What would happen if he waited until next month to deal with it.

Here's what Juan should include in his list:

1. What would happen if he solved the problem. - Yes, Juan should list what would happen if he solved the problem to make sure he understands the unintended consequences of any solutions.
2. Items he could place on sale. - Setting a sale is a possible solution to the problem.   Juan is not ready to set solutions so he shouldn't include this.
3. Projected sales for this month vs. expected sales for this month. - Yes, Juan should define the gap between the actual and desired situation.
4. What would happen if he reduced all part-time employee hours. - This is a possible solution to the problem.   Again, Juan is not ready to set solutions so he shouldn't include this.
5. Salary revisions based on projected sales. - This is a consequence of the problem, and shouldn't be listed here.
6. What the store policy is on monthly sales loss. - Correct.   Juan should list what happens when a standard is violated.
7. What would happen if he waited until next month to deal with it. - Right.   Juan should list what would happen if the problem was left along.

Next, Juan decided to list what would happen when the problem was solved.   Here is what Juan wrote.   Select all the correct phrases Juan included in his writing.

1. Sales are down this month.  
2. Everyone is scared.  
3. If this problem is solved, the store's projected sales for this month will meet or exceed the expected sales.
4. My boss will be so happy, I might get a raise for solving the problem!
5. Store employees will not have to worry about a layoff.
6. The store's projected sales will meet the expected sales, which were set by the store's owner.

• Statement 1 is a statement of the problem, not what will happen if the problem is solved.
• Statement 2 is a general comment that really doesn't say what will happen when the problem is solved.
• Including the ideal outcomes is a good idea, so Juan should include Statement 3.
• Statement 4 is an outcome related to satisfaction and should be included.
• Statement 5 is an actual outcome of solving the problem, and should also be included.
• Statement 6 is an actual outcome of solving the problem, and should be included.
  

One thing Juan never thought to question was the expected sales figures for this month.   What if they were set too high?   Then the problem is not that sales were to low, but that expectations were set too high.   If that is true, then everything that Juan does to solve the problem will only address a symptom of the problem, not the solution itself.

Keep in mind that identification of the true problem is the most important step in problem solving.

After careful consideration, Juan decided to look at sales figures for the same month over the past five years. He found that sales were consistently lower for the same time period in the previous years. From this information, he determined that the figures for expected sales were incorrect and needed to be adjusted downward. After meeting with the store owner and presenting all of the relevant information, the owner agreed to adjust the figures.

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