It is a sorry sight to see simple problems addressed by irrational and complex solutions that take an inordinate amount of time to fix, cost a tremendous sum, and still fail to function as intended. Consider a beautiful, single-level light structure with a floor area of roughly 300 square meters.
A crack appeared in one corner, likely due to a poor foundation or soil erosion, affecting a small area of less than 30 square meters. The people in charge decided to tear down the entire structure and rebuild it. What could have been a low-cost, non-disruptive solution turned into a multi-year closure of the facility at an astronomical cost.
Basic problem solving is about finding the optimal solution for the situation at hand. Possible courses of action are to ignore the problem, find a short-term remedy, apply a permanent fix, or replace the entire thing. For example, if you find a pool of water in your bedroom, what do you do? If you were in a hotel room, you would probably just check that you didn’t leave the faucet on and then call the front desk to report the problem and ask to be moved to a different room. You wouldn’t bother looking for the source of the leak.
If that same leak were in a bedroom in your own home, you would most likely check where the water is coming from. If it’s dripping from the ceiling during a rainstorm, you might assume you have a roof leak and temporarily place a bucket to catch the water. Once the weather clears, you or someone you hire would put a sealant or similar material on the hole or gap to repair the leak. If your roof has been giving you more and more problems and is already old and beyond its service life, you might replace all or part of it. Replacing the entire house because of a leak is not within the realm of basic problem solving.
However, illogical or irrational decisions are possible—and even likely—when the person making the decision isn’t using their own money or money they didn’t work hard for. It’s easy to spend someone else’s money, or money acquired easily, such as from winning the lottery, theft, corruption, or other criminal activity. This is where good corporate governance and transparency come into play. When there is no transparency, you can be sure the transaction is not above board, and someone has made money from the deal or granted an accommodation to benefit a friend or relative.
Basic problem solving is nothing more than finding an optimal solution—one that gets rid of the problem at the least cost and time while providing the longest-lasting fix. While incompetence could be a reason for failing to find the best solution, it is more likely that the problem is being used as an excuse to take an action that maximizes the benefit of the person approving the decision. These benefits to the corrupted approving authority include financial gain, rewarding friends and relatives, reciprocating a favor, and power-tripping. It is about time the silent majority becomes aware of the truth.
The views and comments of the author are his own and do not reflect those of the newspaper or FINEX. Dr. George S. Chua was 2016 FINEX President, 2010 to 2020 FPI President, an active entrepreneur and a Professorial Lecturer 2 at the University of the Philippines Diliman and BGC. He is a Fellow at the Institute of Corporate Directors, Vice Chairman of the Market Governance Board of the Philippine Dealing & Exchange Corp. and loves playing golf. Comments may be sent to [email protected] or [email protected].