Outdated processes and disengaged employees can slow a company down. Doug Hall, founder of Eureka Ranch and Brain Brew Distillery, has spent years helping companies like Nike, Disney, and American Express use structured problem-solving methods. In his new book, Proactive Problem Solving, Hall shares practical strategies to reduce workplace inefficiencies and improve employee engagement. In a recent episode of The Small Business Show, he explains how leaders can fix broken systems, encourage innovation, and create a more motivated workforce.
Doug Hall’s expertise in systems thinking goes back to his early career at Procter & Gamble, where he applied lessons from W. Edwards Deming to drive innovation. One of his key beliefs, inspired by Deming, is:
“94% of the problem is the system; 6% is the worker.”
Hall says today’s post-COVID workforce is struggling with engagement, with many employees feeling disconnected. His research shows that managers spend an average of three and a half hours per day handling employee mistakes or dealing with broken systems—almost half the workday lost to inefficiencies.
His book outlines a step-by-step approach to identifying system issues, motivating employees, and applying low-risk solutions. He emphasizes the idea of “failing fast, failing cheap,” encouraging companies to test small improvements before making big changes. He also stresses the role of psychological motivation in keeping employees involved in problem-solving. Once employees see small successes, they are more likely to stay engaged and contribute to larger improvements.
For startups, Hall sees a unique advantage in adopting systems thinking from the beginning. At Brain Brew Distillery, he only hired employees who embraced structured problem-solving, avoiding the difficulties of changing an existing workplace culture. In contrast, he notes that leaders in larger companies often spend too much time “putting out fires” instead of focusing on growth.
Generational differences also affect engagement. Hall explains that younger employees, especially Gen Z, need to understand the purpose behind their work. He compares this to the military’s “Commander’s Intent” strategy, where leaders clearly explain the bigger goal behind a task. This helps employees feel more connected to their work. He gives an example from Kybeck, a cleaning equipment company that created a no-touch bathroom cleaner. By linking their work to improving sanitation and dignity for frontline workers, they motivated employees to take pride in their roles.
Fear, Hall warns, is one of the biggest obstacles to effective problem-solving. Many employees avoid taking initiative because they fear failure or job security risks. His book promotes an incremental approach, where small, low-risk experiments build confidence and lead to real improvements. He shares a story from his distillery, where an employee solved a major bottling issue by running small daily tests—similar to how athletes improve through regular training.
In the end, Hall believes that companies that focus on systematic problem-solving create workplaces where employees feel valued, leaders can concentrate on strategic goals, and businesses can achieve lasting growth.
“The average manager spends three and a half hours a day dealing with employee mistakes or bad systems. That’s nearly half the workday—this has got to change. Beating the workers isn’t going to fix it. We need a new approach.” – Doug Hall
