What are problem-solving skills?

We use problem-solving skills all the time both in our personal and professional life. But what is problem-solving and how do you build this skill? You need to have the abililty to find unique solutions to problems through the process of identifying the problem and coming up with a best solution. In order to do that you need constant improvement to already set solutions. In other words, how can we make something better! Improve in the following areas:

Identify the problem - What is the root of the problem. Look at it from all perspectives.
Collect Information - Get as many facts as you can about the problem. Ask questions to all who are involved.
Analyze the problem with the help of the collected information - Organize all the collected information and analyze it by breaking it into smaller pieces.
Figure out different possible solutions - Note down all the different possible solutions to the problem. Perhaps create a pros and cons list.
Select the best solution - Make sure your ideas to solve the problem are actually implemented for the best solution. If at first you don't succeed, try and try again!