Problem-Solution-Context Test
Replace political dogma with practical, testable solutions
- Difficulty
- Moderate
- Time to result
- ~weeks to results
- Steps
- 5
- Confidence
- 92%
Start with the concrete problem rather than a preferred ideology or predetermined policy. Identify what is actually happening, who bears the cost, and why the current arrangement persists. Generate a solution that can operate under present constraints instead of demanding an instantaneous leap to an ideal world. Test whether the intervention has a realistic chance of improving outcomes in its specific context, then measure those outcomes and revise accordingly. Cuban illustrates the model with weight loss: a person must lose the first pound before losing one hundred. The same logic applies to organizations and public policy. The framework favors practical progress, measurable consequences, and contextual judgment over party doctrine or abstract consistency.
Origin
Extracted from Masters in Business during Mark Cuban's discussion of minimum wages, healthcare, education, and his rejection of political dogma.
Core principles
- 01Define the real problem before defending a position
- 02Judge proposals by whether they can work in context
- 03Prefer incremental progress to impossible instant transformation
- 04Accept imperfect interventions when they improve real outcomes
- 05Evaluate results rather than ideological purity
How to run it
- 1
Define the Problem
Describe the undesirable condition in observable terms and separate it from ideological interpretations.
Pro tip Specify who is affected, what it costs, and how often it occurs.
Watch out A vague problem definition invites solutions aimed at the wrong target.
- 2
Trace the Mechanism
Identify the incentives, constraints, and behaviors that produce the current outcome.
Pro tip Follow both direct and indirect costs rather than focusing on a single budget line.
Watch out Do not assume the most visible symptom is the underlying cause.
- 3
Design a Workable Fix
Choose an intervention that can improve the situation under current conditions, even if it is not theoretically perfect.
Pro tip Favor the smallest change capable of producing meaningful progress.
Watch out An ideal solution that cannot be implemented solves nothing.
- 4
Apply the Context Test
Check whether the solution fits the affected market, institution, population, and time horizon.
Pro tip Model how participants are likely to respond to changed incentives.
Watch out A solution that works in one setting may fail in another.
- 5
Measure and Adapt
Define observable outcomes, implement the intervention, and revise it based on evidence.
Pro tip Choose measures connected to the original problem rather than convenient activity metrics.
Watch out Do not defend a failing intervention merely because it matches your beliefs.
In the wild
A city can reject public preschool as an ideological expansion of government or compare its cost with later unemployment, rehabilitation, and social-support expenses. The contextual test asks which practical intervention produces the better long-term result rather than which label sounds preferable.
→ Funding preschool is selected when credible evidence shows it reduces larger downstream costs.
A software company blames customers for failing to understand its product. Instead, the team defines the actual churn point, finds that setup requires too many technical decisions, introduces guided onboarding, and tracks activation and retention.
→ The team replaces a cultural explanation with a measurable intervention and improves retention.
Common mistakes
Starting With Dogma
Beginning from a fixed ideology encourages people to defend preferred tools before establishing the actual problem.
Demanding Instant Perfection
Rejecting incremental improvement because it does not immediately reach the ideal can preserve a worse status quo.
Measuring the Wrong Outcome
Activity counts and enforcement totals can rise without improving the condition the institution exists to address.
Is it for you?
Best for
It is best for leaders, policymakers, and teams resolving contested problems with imperfect options.
Not ideal for
It is not ideal when legal, ethical, or safety constraints create non-negotiable boundaries that outcomes alone cannot override.
From the transcript
“what I do? I say, what's the problem, how to fix it? How do you solve it? That's all I care about, right,”
“You've got to solve the problem, and it's got to be contextual and have a chance of So”
“You need someone who's gonna look at everything individually and say here's the problem, here's the solution, here's how we vetted it.”
From the episode
Masters in Business: Dallas Mavericks Mark Cuban (Audio)
Mark Cuban