DREIESKIVA​|Roald Kvam

In the ever-evolving landscape of business, challenges are inevitable. However, not all problems are created equal. Some are complicated, requiring technical expertise, structured processes, and precise execution. Others are complex, involving uncertainty, unpredictability, and human factors. Distinguishing between these two types of problems is crucial for effective problem-solving and decision-making.

Businesses often struggle not because they lack solutions but because they misdiagnose the nature of the problem. Applying solutions meant for complicated problems to complex issues—and vice versa—can lead to inefficiency, wasted resources, and even greater difficulties.

So, how can leaders differentiate between complicated and complex problems? More importantly, how should they approach each type?

Let’s explore the distinction and actionable strategies for tackling both complicated and complex challenges…

---

Understanding the difference: Complicated vs. Complex problems

The distinction between complicated and complex problems originates from systems thinking, a field that examines how different elements interact within a system.

• Complicated problems are those that can be broken down into parts, analyzed, and solved using expertise, structured processes, and technology.
• Complex problems involve multiple interdependent variables, uncertainty, and human behavior, making them unpredictable and resistant to formulaic solutions.

Characteristics of complicated problems

Complicated problems may be difficult, but they are ultimately solvable with the right expertise and approach. They include:

• Predictability: A well-defined process leads to a clear outcome.
• Technical expertise required: Solutions often involve engineers, analysts, or specialists.
• Repeatability: If solved once, the solution can be replicated consistently.
• Best practices apply: Established guidelines, frameworks, or algorithms can be followed.

Examples of complicated problems

• Building a new factory – Requires technical knowledge, engineering expertise, and project management but follows structured steps.
• Implementing a new IT system – Needs thorough planning but follows a predictable process.
• Optimizing a supply chain – Complex interactions exist, but mathematical models can create solutions.

Complicated problems may involve many moving parts, but they remain solvable through logic, expertise, and structured processes.

Characteristics of complex problems

Complex problems, on the other hand, are unpredictable and often involve human factors such as emotions, behaviors, and organizational culture.

• Uncertainty & unpredictability: No single “right” answer exists; outcomes emerge over time.
• Adaptive & evolving: The situation changes as people react and interact.
• Interdependent factors: Many variables influence one another in unexpected ways.
• No clear cause-effect relationships: Small changes can lead to disproportionate impacts.

Examples of complex problems

• Managing company culture – Requires continuous adaptation and is shaped by leadership, employee engagement, and external factors.
• Responding to market disruption – Cannot be solved with a single strategy; businesses must experiment and adapt.
• Navigating a leadership transition – Involves emotions, politics, and shifting dynamics among stakeholders.

Since complex problems do not have straightforward solutions, they require experimentation, flexibility, and continuous learning.

---

How to solve complicated problems

For complicated problems, the goal is to find the correct solution through structured problem-solving techniques. Leaders should:

1. Use expertise and specialized knowledge

Since complicated problems require technical understanding, organizations must rely on experts in the field. For example, when designing a new manufacturing process, consulting engineers, data analysts, and supply chain specialists ensures efficiency and accuracy.

2. Break the problem into manageable parts

Many complicated challenges can be decomposed into smaller tasks, each with its own solution. For instance, software implementation involves stages like needs assessment, system selection, integration, and testing.

3. Apply established best practices

Frameworks, methodologies, and checklists streamline decision-making. In project management, for instance, using Agile or Six Sigma methodologies can help ensure a smooth rollout.

4. Focus on process optimization

Efficiency is key in solving complicated problems. Businesses should standardize workflows, use automation where possible, and minimize bottlenecks.

5. Leverage data and predictive analytics

Since these problems are predictable, businesses should use data-driven decision-making. For example, optimizing inventory requires demand forecasting and trend analysis.

Outcome: Once solved, the solution can often be repeated in similar situations.

---

How to solve complex problems

Unlike complicated problems, complex issues cannot be solved with a single, predefined solution. Instead, businesses must use adaptive strategies to navigate uncertainty.

1. Experiment, learn, and adapt

Since there’s no single right answer, leaders must test different approaches, gather feedback, and iterate. For instance, when launching a new product in an uncertain market, companies should start with small-scale pilots, measure customer reactions, and refine the offering accordingly.

2. Encourage collaboration and diverse perspectives

Complex problems involve multiple stakeholders, so diverse input is essential. Encouraging cross-functional teams to brainstorm solutions helps surface different perspectives.

3. Build a culture of flexibility and innovation

Since change is constant, organizations must be agile. Creating an environment where employees feel safe to experiment, fail, and learn accelerates problem-solving.

4. Use systems thinking

Rather than isolating individual variables, leaders should analyze how different factors interact. For example, tackling employee dissatisfaction requires looking beyond compensation—considering workplace culture, leadership style, and career growth opportunities.

5. Accept ambiguity and manage Risk

Unlike complicated problems, complex challenges cannot be completely “solved”—they can only be navigated. Leaders must embrace uncertainty, make informed decisions, and adjust as new information emerges.

Outcome: Solutions must be constantly adjusted as new challenges arise.

---

In business, misidentifying a problem’s nature can lead to wasted effort. Leaders must:

• Use structured, expert-driven approaches for complicated problems.
• Embrace flexibility, experimentation, and collaboration for complex challenges.

The best leaders recognize the difference between complicated and complex problems and apply the right mindset to find sustainable solutions. By doing so, businesses can avoid common pitfalls, navigate uncertainty, and drive long-term success.