The most useful management book I’ve read this year is Problem Solving 101 – A Simple Book for Smart People

The author, Ken Watanabe, a former McKinsey & Company consultant, studied at both Yale and Harvard Business School and is now the CEO of his own media company, Delta Studio. Spurred on by discussion among Japanese business leaders, educators, and politicians on the need for Japan’s educational system to become more innovative and shift from rote-memorization to problem-solving-focused education he wrote Problem Solving 101. It began as a simple guide to teach Japanese schoolchildren critical thinking and problem solving skills. It soon became an international business bestseller due to the powerful effectiveness of Watanabe’s problem solving methods.

What is it about this short book (only 110 pages) that makes it so useful? The author distils problem solving techniques and methodologies, honed from his days as a McKinsey consultant, into a very accessible format that’s straightforward to implement in the workplace. And as organisations increasingly strive to become more innovative and do more with fewer resources, problem solving skills are more important than ever.

In my opinion, the fact that the book was initially written for children makes it very easy for an adult reader to grasp the concepts and tools used. Unlike many management/business books, written in technical language and sometimes quite complex to read, this book has a liberal use of pictures, charts, and graphs which make it very easy to follow. The language employed throughout, is very straightforward and clear (which of course, is exactly how a problem solving process should be).

And most importantly, the content is sophisticated enough for adults to use. The author introduces a step-by-step process designed to identify the root of a problem and explore all options before taking appropriate actions to solve it.

There are four steps used in successfully solving a problem. Step one involves understanding the current situation. What specifically is the problem? Step two is identifying the root cause of the problem. What are the actual factors that are causing this problem? Step three is developing an effective plan of action. Finally, step four involves implementing the plan of action, while monitoring your progress making appropriate modification, until the problem is solved. The steps are implemented through a process of hypothesis and analysis.

Watanabe explains this process very clearly and concisely in a style that’s accessible to readers of any age. He uses simple stories that both children and adults can identify with to further explain the concepts used. For example, school rock band ‘The Mushroom Lovers’ need to find a way to improve their concert attendance. They work through the problem solving process to increase the awareness of their concerts and optimize their popularity. Or which school should Kiwi, a talented soccer player, choose to refine her skills. Her story teaches the reader the importance of exploring different options and how to calibrate the pros and cons of a decision.

Several McKinseyesque techniques are explored in the book: Logic Tree, Yes/No Tree, Problem-Solving Design Plan, Hypothesis Pyramid, Pros and Cons/Criteria, and Evaluation. Each technique is gone through very precisely and it’s very clear where each one fits into the overall problem solving process. An important point I took from the book was that problem solving isn’t a talent only available to some; rather it is a habit that can be developed by all. In summary, if you’re interested in expanding and organising your approach to a problem to ensure you have the most possible solutions, I’d highly recommend this book.

And the final word goes to Ken Watanabe: Problem solving is easy when you know how to set a clear goal, figure out how to reach it, and follow through while reviewing your progress and making changes to your plan as necessary.

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