21 Things You Need to Know About Wicked Problems
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21 Things You Need to Know About Wicked Problems

So, You Think Wicked Problems Don't Happen in Business?

People may think that businesses don't suffer from wicked problems because they believe that businesses are profit-driven entities that only focus on efficiency and maximising profits. The view is that wicked problems are typically social or political, and businesses are not concerned with such issues. However, in reality, many businesses face complex, interrelated problems. They are challenging to solve, similar to wicked problems, such as supply chain disruptions, sustainability challenges, and shifting market dynamics. These challenges require a holistic, collaborative approach to finding solutions, like addressing wicked problems.

Things You Need to Know About Wicked Business Problems

Here are 21 things you should know:

  1. Wicked business problems are complex and interrelated challenges that are difficult to solve.
  2. They often involve multiple stakeholders with differing interests and perspectives.
  3. They are characterised by uncertainty, ambiguity, and changing circumstances.
  4. Solutions to wicked business problems are often elusive and may involve trade-offs.
  5. They require a systemic, holistic approach to problem-solving.
  6. Collaboration and stakeholder engagement is critical to addressing wicked business problems.
  7. Wicked business problems often involve social, economic, and political factors.
  8. They may arise from supply chain disruptions, sustainability challenges, shifting market dynamics, etc.
  9. They often involve ethical and moral considerations.
  10. Wicked business problems can result in long-term consequences for the business and society.
  11. They require a willingness to adapt and change, as solutions may not be clear.
  12. Effective communication is crucial in addressing wicked business problems.
  13. Creative thinking and innovation can play a role in finding solutions.
  14. Wicked business problems can present opportunities for businesses to differentiate themselves and achieve a competitive advantage.
  15. They may require significant investment in research and development to find solutions.
  16. Wicked business problems can have positive impacts on the community and the environment.
  17. They need a long-term commitment to finding solutions and implementing changes.
  18. Businesses must be prepared to navigate complex regulations and standards related to wicked business problems.
  19. They may involve cultural and linguistic barriers that must be addressed.
  20. Solving wicked business problems can help build a more sustainable and resilient future.
  21. Wicked business problems are not unique to any industry or sector and can affect businesses of all sizes and types.

What Should You Do?

I equip leaders to tame wicked individual and organisational problems, building trusted personal and professional relationships through six principles:

  1. Situation - Identify your wicked problem (or opportunity)
  2. Objective - Identify the outcomes you want
  3. Reality - Where are you now? Really?
  4. Template - Sketch possible solutions
  5. Execution- Pick the most promising solution and put it into play
  6. Development- Progressively improve the solution and your wicked problem-solving knowledge and skills.

Why not sit down for a couple of moments and think about a complex problem you had yourself or at work. Then, how might you apply these principles?

But Seriously, Businesses Don't Have Wicked Problems, Do They?

People may resist the idea that businesses have wicked problems because they have a limited perception of the role of companies. They may see businesses as primarily focused on generating profits and may not understand the broader impact that companies can have on society and the environment. Additionally, people may view wicked problems as solely the responsibility of government and civil society. Therefore, they may not consider businesses' role in addressing these challenges. Furthermore, people may believe companies are not equipped or motivated to tackle complex and interrelated challenges based on the common assumption that business solely focuses on short-term gains. These perceptions and beliefs can lead to resistance to the idea that companies have wicked problems.

It is not necessarily "wrong" to think that businesses don't have wicked problems. Still, it is an incomplete view of the reality of the business landscape. Enterprises face complex, interrelated challenges that are difficult to solve. For example, supply chain disruptions, sustainability challenges, shifting market dynamics, and more. These challenges require a systemic, holistic approach to problem-solving and may involve multiple stakeholders with differing interests and perspectives. By ignoring or downplaying the existence of wicked problems in business, it becomes difficult to find effective and sustainable solutions. Conversely, recognising wicked problems in business and actively working to address them can help companies to become more resilient, competitive, and responsible corporate citizens.

Here are a few examples of companies that faced significant challenges as a result of wicked problems, and their experiences serve as cautionary tales for other businesses:

  1. Enron: The energy company's collapse in 2001 was caused by a combination of accounting fraud and poor corporate governance practices.
  2. Volkswagen: The German automaker's emissions scandal in 2015 revealed that the company had installed software in its diesel vehicles to cheat emissions tests.
  3. BP: The oil company faced significant financial and reputational challenges following the Deepwater Horizon oil spill in the Gulf of Mexico in 2010.
  4. Monsanto: The agriculture company faced criticism and controversy over its use of genetically modified crops and herbicides, leading to legal and public relations challenges.
  5. Sears Holding Corporation: The retail giant faced significant challenges, including declining sales and increased competition, leading to its eventual bankruptcy in 2018.

Things You Really Need to Know About Wicked Business Problems

People may think businesses don't suffer from wicked problems because wicked problems are typically social or political, and enterprises are not concerned with such issues. However, in reality, many businesses face complex, interrelated problems that are difficult to solve, similar to wicked problems.

There are many things we don't know about wicked business problems. However, we know they're a complex and challenging issue that resists straightforward solutions. They require a more holistic and interdisciplinary approach than is the case with traditional problem-solving methods.

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