When you hang around long enough in my game, you get exposed to all sorts of theories and techniques. Over time, you work out that some are more useful than others, in the context of what you do.
A lot of what we do is problem-solving. The commercial equivalent of “Doc, I’d like you to take a look at my bum”.
Just as that patient has a symptom, but no idea / a Dr Google idea of the cause, the same applies in business. That is, clients generally report a symptom, not a cause.
Now, we get asked for help because we have a decent track record of identifying the root cause and applying the right fix. The sort of fix that lasts.
And the technique that never seems to fail, that always seems to peel back the onion until we find the root cause is ‘5 Whys’. And the good news is that once you find the root cause of an issue, you can generally find the right fix.
What is the 5 Whys?
It is a simple problem-solving technique. The premise is that the root cause of an issue is often 5 times removed from the symptom that brings the issue to our attention. Hence, asking ‘why’ five times, should unpack the issue and reveal the root cause. Knowing the root cause makes it relatively straightforward to identify the fix.
Whose idea is it?
Most sources attribute the technique to Sakichi Toyoda. Mr Toyoda was a noted Japanese inventor and the founder of Toyota Industries. Of course, ‘The Toyota Way’ is well documented in the book of the same name, writing by Jeffrey K. Liker. Lots of thought-provoking ideas to contemplate here – whether they translate well to your operation or not they will make you think.
How can I use it?
I think some quiet practice is a good way to start. Pick two or three ‘issues’ in your business, write them down and start asking yourself ‘why’, 5 times over. See where you get to. You will quickly realise the potential of the technique to help overcome these issues.
You will also realise that you need input from others that are closer to the issue, to improve the quality of response. Because if you keep it to yourself, you will be guessing at the answers. But tell them what you are doing. “I am trying a problem-solving technique that involves asking ‘why’ 5 times.” Otherwise, you will remind them of a 5-year-old child and lose them along the way.
Give me an example?
Issue – production is down on Line 5.
- Why? We couldn’t make orange juice this week.
- Why? We didn’t have any oranges.
- Why? We are on ‘stop’ with the supplier.
- Why? We didn’t pay their invoice.
- Why? We are short of cash.
So, the real issue here is cash. There’s not enough of it. There is a reason for that. That’s where the attention needs to be. The good news is that we can apply the same technique to this primary issue.
Issue – we don’t have enough cash.
- Why? Our customers haven’t paid us.
- Why? We were late sending out invoices last month.
- Why? Our billing clerk was away and nobody took over his role.
- Why? We don’t have anyone else that knows the system.
- Why? We haven’t cross-trained anyone.
Now, we’re a long way away from the symptom – production is down on Line 5, but we’re getting to the point where we know what the long-term fix should be, to prevent that particular issue from recurring.
An aside
You’re probably screaming ‘but that doesn’t fix the issue’. And if you are, you’re probably screaming for a cure and you’re absolutely right. We’re bleeding and we need to put a band-aid on. That lack of cash needs to be addressed in the short-term. We’ve written plenty about that and you can read about cash like this one here What’s Your Balance Sheet Hiding About Cash Flow? or this one here How to Fix Cash Flow Challenges Before Your Business Starts Stinking
You can find many more articles about cash flow here.
And you’re seeing that the 5 Whys technique is part of an incremental improvement mentality that will ultimately add up to a better business, even if it takes time to feel it.
Seek Professional Advice
We strongly encourage you to seek expert advice. Trying to run a Root Cause Analysis yourself will likely add more tasks to your busy day – leading to frustration, stress, and, worst of all, failing to uncover the real causes of your business challenges.
On the other hand, having a professional properly conduct a Root Cause Analysis is a pathway to business excellence. With effective implementation, you can clear the way for improvement and growth. Talk to one of BridgePoint Group’s experts – we’ll be happy to help your business thrive.
