Stage 1: Investigate the situation

Includes a search for factors that may have created the problem and an identification of the problem. It has three basic steps:

(a) Define the problem

A problem is a situation that prevents the organization from achieving one or more of its objectives. Managers must not confuse symptoms with problems so problems must be defined in terms of the objectives being blocked.

(b) Identify the decision objectives

This is deciding what would constitute an effective solution. Which parts of the problem must be solved? The solution should enable management to achieve organizational objectives.

(c) Diagnose the causes

Determine the actions that will achieve the solution by first understanding what may have brought the problem in the first place.