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In large organizations recognition of a business problem typically relies on measures and management reporting of measures against expectations. Usually each performance area measures quality, cost, and speed of service - plus possibly customer satisfaction. If one of these measures starts to vary from expectations then management should investigate the reason and determine if it represents a business problem or possibly the result of some one-time event or temporary glitch.

In a small company, it is more likely that the owners will personally observe the problem or its symptoms. They are more likely to hear directly from customers signs of service or product problems.

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Q: How do you recognize when a business problem exists?
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