Problem-solving is widely acknowledged as central to achieving positive outcomes in public services, yet it remains an underdeveloped theme within public administration and management (PAM) research. This chapter addresses this gap by advancing a novel perspective that conceptualizes problems as moments of value destruction. We argue that problems arise when public services, whether inadvertently or by design, diminish well-being or fail to deliver the improvements they intend, at the individual, organizational, or societal level. Building on Public Service Logic and the Public Service Ecosystem framework, we identify three key phases of the service process (design and preparation, delivery and encounter, and use and consumption) to account for when problems occur. We also suggest four nested layers (macro, meso, micro, and sub-micro) to explain where problems occur. Together, these dimensions form a processual typology of problems that reveals their functional, institutional, experiential, and relational characteristics. We illustrate this typology through recent PAM research on AI-driven (artificial intelligence) public service transformation, showing how value destruction can emerge in different ways. By foregrounding problem-solving through a value destruction lens, the chapter offers a foundation for further research and provides policymakers with insights into how problems might be anticipated, addressed, or mitigated.