This study set out to clarify creativity, systems theory of creativity, hindrance to creativity as well as defining problems definition and seven errors that can occur due to incorrectly defined problems. Existing idea generating methods such as brain-storming, brain-writing, mind mapping, 5 whys and Mandel-art and existing problem solving techniques such as Six Sigma and TRIZ were analyzed to find out merits and demerits of each. Based on the analyses, this paper suggests an effective & creative seven-step problem solving process that anyone can easily use.