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Problem Continuum

Systems and Competitive Advantage

Business problemsfall along a continuum from broad and strategic, to narrow and tactical in nature. To solve any problem along the continuum, it must be broken down into understandable and manageable initiatives, which can be prioritized and implemented to make meaningful progress over time.

The most critical problems which have the greatest impact on the long-term success of the organization tend to be problems of vision, mission, or strategy. They are also the most difficult to solve because they are complex, far-reaching, and not actionable in and of themselves. Solving these types of problems generally requires answering questions like: Why do we exist? What do we care about? Who are our customers and how do we improve their lives?

The next category of problems arises from the struggle to define and build the company so that it can fulfill its purpose. These problems are about how the company actually manifests itself in the world. For example, if you say you are going to be the innovation leader in Market X, you have to build the company to actually be the innovation leader in Market X. It's about being what you say you are. Solving these types of problems is usually characterized by answering the broad operational questions that will result in the combination of capabilities required to fulfill the company's purpose: What is core versus context? What should be outsourced versus performed in-house? What should be done on-shore versus off-shore?

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