Tuesday, February 3, 2009

Performing a root-cause analysis

When confronted with a problem, think about how to frame the issue for your team.

To ensure that you get to the core of a problem, perform a root-cause analysis. During this process, you repeatedly make a statement of fact and ask the question why. For example Carla, the general manager of a pizza parlor, noticed that she was losing sales because her home deliveries were slower than her competitor’s. Her friend suggests that they invest in a fleet of delivery vehicles to solve this problem. Instead of jumping to this conclusion, Carla asks, “Our pizza deliveries are slow. Why? Our delivery associates drive old cars that are in poor condition. Why? They can’t afford repairs or newer cars. Shy? They don’t have the money. Why? Their pay is too low.” Through this process, she realized that the older, poorly maintained vehicles are a symptom of lower wages than those competitors paid.

Root-cause analysis can work well for an individual, a small group, or in brainstorming sessions. When confronted with a problem, think about how to frame the issue for your team. Be careful not to assume from the outset that you know what the problem is. Challenge yourself and your team to get at the core of the issue by framing the problem in a variety of different ways and assessing whether the available information supports your theories. Throughout the entire process, ask why and other open-ended questions (those not requiring simply a yes or no response). Such questions encourage exploration more than closed questions based on predefined assumptions about the problem or requiring a yes or not response.

ACTION POINT: Frame your issues with open ended questions.

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