The right answer to the wrong problem is very difficult to fix.

Defining the problem may be the most important element in making effective decisions—and the one executives pay the least attention to. A wrong answer to the right problem can, as a rule, be repaired and salvaged. But the right answer to the wrong problem, that’s very difficult to fix, if only because it’s so difficult to diagnose.

The management of one of America’s largest manufacturing companies prided itself on its safety record. The company had the lowest number of accidents per one thousand employees of any company in its industry and one of the very lowest of any manufacturing place in the world. Yet its labor union constantly ...

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