The S-Loop Problem-Solving Framework: A Primer for Business Leaders
Updated: Aug 16
Growing organizations rarely suffer from a shortage of effort. More often, capable people move too quickly from noticing a problem to proposing a solution—before they understand what is actually happening.
The S-Loop, developed by leadership expert Chris Holmberg, gives management teams a disciplined way to slow down at the right moments, examine a problem systemically, and move toward action with greater clarity and confidence.
Based loosely on the hero’s journey, the S-Loop has four stages: Sensing, Seeking, Solving, and Starting.
The "Oh, Sh*t! Moment"
Sensing begins with what Holmberg calls the “Oh, sh*t! moment”—the recognition that there is a problem or a gap you don’t yet know how to cross.
Stage 1: Sensing – Gathering Information Without Judgment
In Sensing, you gather quantitative and qualitative information while guarding against assumptions and biases that could cloud your observations.
Think systemically by examining the problem through three lenses:
The "It" – the structural elements (e.g., processes, tools, systems, roles, goals, the physical environment)
The "We" – the inter-personal elements (e.g., relationships, the degrees of trust and alignment between and among individuals and teams)
The "I" – the intra-personal elements (e.g., individuals and their knowledge, skills, abilities, mental models, biases and beliefs)
[For more on the systems thinking and the It-We-I model, see this post.]
During Sensing, it’s important to avoid asking "Why?" questions, as they can lead to premature judgments. Focus on "What?", "When?", and "Where?" questions to gather factual information. (We’ll ask “Why?” in the next stage.)
The Power of Listening
Effective Sensing depends on deliberate, active listening. Give people your focused attention, ask clarifying questions, and restate your understanding in your own words so they can confirm or correct it. Listening this way brings information to light, communicates respect, and helps build the trust that encourages people to speak candidly.
The Knower Trap
The "Knower Trap" is a pitfall that often shows up in the Sensing stage. Defined as blindness caused by certainty, it can manifest as arrogance (believing your opinion is absolute truth) or deference (blindly accepting others' opinions as truth).
To stay out of the Knower Trap:
Integrate confidence and humility.
Listen deeply and remain open to new information and perspectives.
Speak of your views as opinions rather than facts. Instead of “You’re wrong,” consider “I disagree”.
Stage 2: Seeking – Identifying Root Causes and Determining Your Goal
In Seeking, you shift from data collection to analysis as you ask, “What story is the data telling us?”
Generate multiple hypotheses about the problem's root causes, looking for non-obvious contributing factors. Prioritize potential causes based on their likelihood and potential impact, and develop testable hypotheses. Test your hypotheses by gathering additional data or running small-scale experiments.
Before moving to the next stage, clearly define your goal—the ideal outcome you're striving for.
The Victim Trap
The "Victim Trap" is the trap of blame. And when problem-solving, it’s something we all fall into (strange thing about being human). It tends to pop-up in Seeking, when we're looking for causes.
We get stuck in the victim trap when we begin attributing problems solely to external factors beyond our control. And when we’re blaming others, problem-solving grinds to a halt.
To get out of the victim trap:
Focus on what you can influence, that over which you have some control.
Maintain a proactive mindset of mutual accountability.
Ask yourself, "What's my next move?" or "What can I do to improve this situation?"
Listen for blame-language (in yourself and others), shift to language that emphasizes ability to create change (instead of “They won’t let me,” try “I failed to convince them”; instead of "I'm an idiot," "I haven't yet learned how to...").
Stage 3: Solving – Generating and Selecting Solutions
In Solving, you generate ideas, develop proposals (based on those ideas), and make a decision about how to address the problem. To encourage creative thinking and multiple potential solutions, ask, "What could we do?" (instead of “What should we do?”).
Evaluate each option based on criteria (e.g., speed, quality, price, alignment with goals and values, potential risks), decide on an appropriate decision-making method (e.g., authority, majority, consensus), and then choose the best solution.
The Sucker's Choice
The "Sucker's Choice" is a cognitive trap that often emerges during Solving. It's characterized by the false perception that we must choose between two mutually exclusive options, typically framed as achieving desired outcomes or maintaining our values and integrity.
This binary thinking forces an either/or decision between "winning" (achieving goals) and "success" (staying true to one's values and purpose).
For instance, a startup CEO might believe they must choose between rushing an imperfect product to market to beat competitors (winning) or delaying launch to ensure high quality standards (success/values). This narrow framing overlooks potential integrative solutions, such as a phased rollout or strategic partnerships that could accelerate development while maintaining quality.
To avoid the Sucker's Choice:
Get clear, really clear, on your values—both shadow values and aspirational values—for yourself and your organization or team.
Seek solutions that address multiple aspects of the problem.
Listen for hidden assumptions in your team's proposals that might be creating false dichotomies.
Challenge your team to find ways to achieve your goals while honoring your values.
Reframe the problem as a "both/and" opportunity rather than an "either/or" dilemma.
Recognizing and overcoming the Sucker's Choice can lead to improved performance, increased motivation, and more sustainable results.
Stage 4: Starting – Implementing the Solution
In Starting, you put your chosen solution into action by answering the question Who's going to do what by when?
Develop a clear plan with specific steps, assign responsibilities, secure commitments, and follow up. Monitor progress and make adjustments as needed. Regularly check in with team members to track milestones, identify roadblocks, and celebrate successes.
Applying the S-Loop: A Composite Example
The following composite draws on patterns I have observed in growing companies; the organization and particulars are fictional.
Meerkat Sentinel Systems, a rapidly growing software startup, was struggling with low employee morale and high turnover. Its management team recognized that unless it understood what was contributing to the problem, the company’s growth could be affected.
Sensing
The management team started by gathering data on employee satisfaction scores, exit interview trends, and industry benchmarks.
They also conducted focus groups with current employees to understand their perspectives and experiences. The team prioritized active listening during these sessions, creating a space where employees could speak candidly about their concerns. By focusing on listening rather than defending or explaining, they uncovered frustrations that hadn't surfaced in formal surveys.
During this stage, they were careful to avoid the Knower Trap and approached data gathering with curiosity and humility.
Seeking
Through an analysis of possible root causes, the team generated several hypotheses: a lack of clear career growth paths, inconsistent management practices, limited recognition for high performers, inadequate communication about company direction, and misalignment between individual and organizational values.
To test these hypotheses, they conducted additional surveys and interviews to gather targeted data.
They also defined their ideal outcome: Increase employee satisfaction scores from 61% to 80% and reduce annual turnover from 24% to 10% within 12 months.
During Seeking, the management team caught themselves falling into the Victim Trap, blaming external factors like the competitive job market and generational differences for the turnover problem. By asking, "What's our next move?" they shifted back to a mindset of mutual accountability. They recognized environmental influences at play, but focused on the factors within their control.
Solving
The team brainstormed a wide range of potential solutions. These included implementing a formal career development program, providing management training, launching an employee recognition program, establishing regular town hall meetings, and involving employees in re-defining and promoting the company's mission and values.
They evaluated each solution based on its potential impact, feasibility, and alignment with their goals. And through a consensus-based decision-making process, they selected the most promising initiatives to implement.
During Solving, the team faced a Sucker's Choice of investing in long-term employee development versus maintaining short-term productivity. They re-framed this as a "both/and" opportunity and looked for ways to phase in the new programs while minimizing disruption to ongoing work.
Starting
Meerkat assigned ownership for each initiative, set milestones and success metrics, and began rolling out the changes. They communicated the plan to employees and gathered feedback to refine the implementation.
Over the next year, the team monitored employee satisfaction and turnover, adjusting the initiatives as they learned what was—and was not—working. The S-Loop did not guarantee a particular result, but it gave the team a disciplined way to move from a broad, emotionally charged problem to targeted action and follow-through.
Try the S-Loop on a Current Problem
Choose one problem your management team has discussed more than once without resolving. Then work through four questions:
Sensing: What do we actually know?
Seeking: What might explain what we’re seeing, and what outcome do we want?
Solving: What could we do, and what criteria will we use to choose?
Starting: Who will do what by when?
The framework is simple to understand. Using it skillfully—especially when the stakes are high—takes practice.
To learn the S-loop problem-solving framework in depth—including opportunities for discussion and practice—come join us for, and bring some of your managers to, our next Leadership and the Middle Path workshop.
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