One of the first steps in solving a silent problem (a problem that is being avoided, neglected or is going unnoticed) is to make the problem visible. This is what I refer to in the book Without Warning as a component of a CAP Initiative. And part of making the problem visible lies in putting forth a solution, since solutions are the truth serum of any problem. It tells you how important the problem is and puts in motion the resources and timetable to make it happen.
I therefore found this article about the growing concern about bank liquidity over at Bloomberg interesting and telling. Here are a few excerpts worth noting.
China plans to nullify all guarantees local governments have provided for loans taken by their financing vehicles as concerns about credit risks on such debt increases.
“By striking the fear of God into lenders, regulators hope to get them to turn off the tap,” said Patrick Chovanec, a professor at Tsinghua University in Beijing.
“China’s sending a very strong signal that this kind of financing is over,” said Chovanec, an associate professor in the School of Economics and Management at Tsinghua University. “It raises the specter that China’s banking system has a lot more risk in it than people previously thought.”
In effect, the Chinese Ministry of Finance is stating, “We have a problem and we’re concerned.” Second, the Ministry has escalated the problem by putting in place a solution “this kind of financing is over.” Prior to this, rhetoric surrounded the problem, but not a solution. Third, by putting in place a solution, the Ministry has made the problem visible, thereby declaring its importance.
Making the problem visible is a critical step in every problem-solving situation. By making the problem visible, it helps fosters a culture of candor and creates a place where the truth is encouraged to be spoken. And when we make a problem visible, we state “this is really important.”
Bottom Line: Making a problem visible should go hand-in-hand with problem solving. Problems are an integral component to leadership development, critical thinking skills and personal growth.
