The Problem with Problem Solving

Having worked on revenue teams at companies of all shapes and sizes, I’ve noticed one unfortunate tendency that unites them: rushing into solutions without taking the time to define the problems they face properly. This mistake can lead to a host of issues, from wasted resources to unfixed root causes that hinder growth.?

By attacking symptoms rather than root causes, companies create an illusion of progress while real problems remain unresolved. This approach leads to a cycle of ineffective solutions and wasted resources as the company continues to address surface-level issues without tackling the fundamental challenges holding them back. Conversely, defining a problem from the outset lays the foundation for effective solutions and strategies.

In this week’s newsletter, we'll explore why defining problems is harder than solving them, how to properly define a problem, and how to convert your findings into actions. By the end, you'll either have a clearer understanding of how to effectively define challenges and drive sustainable revenue or a severe headache. I hope it’s the former, but you’ve been warned. Let’s jump in.

Defining problems is really important

When companies face challenges–declining pipeline or increased churn, for example–the initial reaction is almost always to jump straight into solutions. The CMO might suggest launching a campaign across email and social channels for customers who haven't converted to paid subscriptions. The head of sales might decide to implement a new ABM strategy to boost pipeline numbers. And while those solutions may seem proactive (and even help on the margins), they fundamentally fail to address the underlying issues that caused problems in the first place.

More than that, attacking symptoms rather than root causes creates the illusion of progress. This happens so often, I think, because the illusion of progress can be intoxicating: it's easier than doing the hard work needed to define problems and address root causes, but still results in praise from those around you, at least initially. Ultimately though, skipping the crucial step of problem definition, we risk wasting time and resources on solutions that fail to address the root causes of their challenges. Sure, we may experience temporary relief from the symptoms, but the underlying issues will at best fester and at worst metastasize.?

GTM initiatives are particularly susceptible to the negative effects of poor problem definition. In fact, I’d venture to say that most are actually built on a foundation of misunderstood problems and are thus destined to underachieve.

When a company fails to understand the problems its target market faces fully, it can’t develop effective strategies to address those issues. This leads to a disconnect between the company's offerings and the actual needs and desires of its customers–and the result is the company investing resources in developing and promoting products or services that just don’t resonate.

Poor problem definition can also lead to misaligned messaging and positioning. If a company doesn't have a clear understanding of the problems its target market faces, it can’t possibly hope to communicate how its offerings solve those problems. This will inevitably result in generic, uninspiring messaging that fails to differentiate the company from its competitors and leaves potential customers uncertain about the value the company provides.

Defining problems is harder than solving them

Thoroughly defining problems is really hard. For one, it requires a deep understanding of the issues at hand. Unlike solving problems, which often involves implementing a set of predefined steps or strategies, defining problems is nuanced and exploratory. To fully grasp a problem, you’ve got to dive into the weeds, examine it from multiple angles, and consider the multiple factors that contribute to its existence all at once.

This process is made even more difficult by the fast-paced modern SaaS business that prizes instant gratification and big wins over slow, methodical progress. With the constant pressure to meet weekly, monthly, quarterly, or annual goals and deliver results quickly, it's easy to succumb to the temptation of taking swift action without fully understanding the problem. I can’t tell you how many times I’ve felt pressured to demonstrate progress and take decisive steps, even if those steps are based on an incomplete or inaccurate understanding of the issues my company faced.

It's important to note that taking the time to define problems doesn't contradict the need for urgency and decisive action. In fact, properly defining problems enables more effective and targeted solutions, which can ultimately lead to faster progress. The issue arises when people hide behind the guise of "doing" and acting with urgency without truly understanding the problem at hand.

Three questions to help define problems (and how to answer them)

Before talking about a solution, here are three questions that I ask myself about the problem:

1. Have we clearly identified our ICP??
2. Do we fully understand the most pressing challenges our ICP faces?
3. Can we articulate how these problems manifest in our ICP's daily lives?

To answer these questions, it's essential to take a data-driven approach. This means proactively gathering data on customer problems, preferences, and behaviors, and using that information to guide your problem-solving efforts.

One of the key benefits of a data-driven approach is that it helps you avoid the pitfall of substituting your own judgment for what your customers actually want. By relying on concrete data rather than assumptions or guesswork, you can gain a more accurate and objective understanding of the challenges your target market faces and the solutions they are seeking.

But gathering data is not enough. To truly leverage the power of data-driven insights, you need to translate that information into actionable steps. This means taking the time to analyze the data, identifying patterns and trends, and using those insights to inform strategy.

Remember that research without action is just a cost. While it's valuable to gather data and gain insights, those efforts are ultimately wasted if they don't lead to concrete changes and improvements in your business. To avoid this pitfall, make sure you have a clear plan for translating your data-driven insights into specific, measurable actions.

The Question-to-Action Framework

Research without action is just a cost. Defining problems is crucial, but it's equally important to translate those insights into measurable actions. I’ve found the following framework helpful in guiding this process:

1. Data (What): Gather relevant data on customer problems, preferences, and behaviors through surveys, interviews, and user behavior tracking.
2. Questions (So What): Analyze the data to identify key insights, patterns, and trends that help you better understand the challenges your target market faces and the solutions they seek. Consider the implications of these insights for your business.
3. Actions (Now What): Translate the insights into concrete actions. Determine specific steps to better address customer needs and solve their problems. Prioritize actions based on their potential impact and feasibility, and establish clear metrics for measuring success.

Conclusion

Jumping into solutions without first understanding problems wastes resources, misaligns strategies, and results in ineffective actions. Taking the time to understand root causes lets us create targeted solutions that genuinely move the needle.

To pinpoint these problems, it's crucial to ask pertinent questions and collect relevant information. The data-to-action framework is a practical guide to turn these insights into actionable steps. Begin by collecting data about customer issues, preferences, and behaviors. Analyze this data to uncover key insights and understand their implications. Then, turn these insights into prioritized actions with well-defined success metrics.

This method helps us steer clear of baseless assumptions and guesswork, ensuring our problem-solving efforts construct a robust (and respected!) GTM team. So when you're next faced with a challenge, take a step back, inquire appropriately, and let the data lead your decisions.?