Beth Smith: different types of problems require different approaches to decision-making

In today’s episode of the podcast “Leadership is a Competitive Advantage” I am joined by Beth Smith, a senior consultant at The Cynefin Co., to discuss why different types of problems require different approaches to decision-making.

In this episode, we dive into the Cynefin framework, a powerful sense-making tool developed by Dave Snowden that helps leaders and organizations navigate clear, complicated, complex and chaotic environments. The Cynefin framework is a recognition that different types of problems require different approaches to decision-making. As Beth Smith explains, "The Cynefin framework is just the fundamental recognition that in the world there are different types of system. And according to what system a certain problem, issue, opportunity, decision lies in, generally requires different types of actions or different ways of knowing and understanding that system. So we always start off with the clear domain, which is where you have very clear cause-and-effect relationships, where anyone on the street can look at it and understand: if you do X, you're going to get Y. Then there is the complicated domain, where you still have cause and effect, but it takes expert knowledge or analysis to determine the right answer. But then we have the complex domain, where there are patterns, but no clear cause-and-effect relationships because multiple factors are interacting, leading to emergence. And finally, we have the chaotic domain, where there is no order, no cause and effect – you just have to act and try to stabilize the situation before you can make sense of it."

This means that decision-making is not just about applying a static model; it is about recognizing how different environments shape the way we make sense of problems. However, a common mistake in organizations is misclassifying problems and applying the wrong methods to solve them. "The most common pattern is people are operating on a complex problem using the logic and the tools, the methods of the complicated domain, or even the clear domain." This domain dissonance leads to frustration and failure because complexity demands experimentation, adaptability, and emergent solutions—not rigid best practices or expert-driven analysis.

So, if you are looking for practical tools to navigate complexity in your own work, this conversation is for you. Let’s dive in.

PS! This episode was made possible thanks to Mihkel Tammo and Elar Killumets’s Juhtimisklubi, who connected me with Beth during her visit to Tallinn. Thanks, Mihkel!