4 Types of Problems and How to Solve Them by Peter Drucker

One of the best skills you can master is problem solving. One of the keys to effective problem solving is
knowing what kind of problem you’re dealing with. Knowing the type of problem helps you choose the
most effective strategy. There are four types of problems:

1. Truly Generic Problems: While many symptoms may vary, a lot of problems are actually generic if you
look to the root cause. The truly generic is one which the individual occurrence is only a symptom. Most of
the problems that come up in the course of the executive’s work are of this nature. Inventory decisions in a
business, for instance, are not “decisions.” They are adaptations as the problem is generic.
2. Generic, but Unique for the Individual Institution: Sometimes a problem is generic, but unique in that
you face it only once. The company that receives an offer to merge from another larger one will never
receive such an offer again if it accepts. This is a unique situation as far as the individual company, its board
of directors, and its management is concerned but it’s a generic market situation that occurs all the time.
3. Truly exceptional, Truly Unique: Every now and then, a problem is truly unique and exceptional. It’s
completely new and nonrecurring. The power failure that plunged into darkness the whole of northeastern
North America from the St. Lawrence River to Washington D.C., in 1965, was a truly exceptional situation.
4. Early Manifestation of a New Generic Problem: Sometimes a new problem that at first seems unique is
really just the first instance of a new generic problem. Truly unique events are rare; whenever one appears,
one has to ask, is this a true exception or is this only the first manifestation of a new genus?

Problems Solving Process: The first questions the effective decision-maker asks are: Is this a generic
situation or an exception? Is this something that underlies a great many occurrences? Or is the occurrence a
unique event that needs to be dealt with as such?

Generic Solutions: All events but the truly unique require a generic solution. Treat the root cause, not the
symptoms. To find the cause, you need to ask "Why?" You might need to ask "why?" multiple
times. Leverage the experience of others. How have others solved this problem? Then develop a rule, a
policy, or a principle for the category. Realize that this problem (or its negative effects) will repeat over and
over again until you come up with a rule or principle that you will always follow. The mindset of developing
policies for generic problems does two things:
First, it helps battle procrastination. If the pain lasts “forever” due to constant recurrences of the problem
you’ll be more likely to deal with it sooner. Second, it forces you to think long-term rather than staying in
firefighting mode. Solving a generic problem should involve a real solution, not a Band-Aid. Once the right
policy has been developed, all manifestations of the same generic situation can be handled pragmatically by
adaptation of the rule to the concrete circumstances of each case. For example, one of the underlying
principles for influencing people is that "rapport comes before influence." Knowing this, you adapt that
principle to a variety of scenarios, whether it’s pitching a project or coaching a teammate.

Unique Solutions: Truly unique events must be treated individually. One cannot develop rules for the
exceptional as they occur only once. They need totally new and creative solutions that are applicable only to
the exceptional circumstance. Leaping to a generic solution to a unique problem simply creates new
problems. The government is a great example of this; it frequently overreacts hastily to problems with new
regulations only to create new problems.

In conclusion: Monitor the feedback to test the validity and effectiveness of the solutions against the actual
course of events. See what happens and measure to ensure the solution actually A) fixes the problem, B)
doesn’t create new problems, and C) is cost effective enough to continue in perpetuity.
4 Types of Problems and How to Solve Them

1. Give an example of a generic problem in your department and a policy needed

for solving it.

2. Give an example of a generic problem that was unique to your

department and how it was solved.

3. Give an example of an exceptional unique problem to your department and how

it was or needs to be solved.

4. Are there any early manifestations of a new generic problem in your department
and what new policies can be developed for this new category of problem?