Strategic Tools - Root Cause Analysis

In this series of posts, I’ll look at strategic tools that I use to develop marketing strategies and business strategies.

The Root Cause Analysis tool has its own routes in manufacturing and, specifically, in the Japanese production lines of car manufacturer, Toyota. Its purpose is to identify, as its name clearly states, the root cause of what went wrong.

It is criticised as being negative and creates a culture of blame. I suggest that this is only true when not used well. In contrast, the root cause analysis model can see through the blame and identify the real challenges an organisation faces.

To illustrate how it is used, I’ll apply it to a fictional company. I have been invited in to develop a strategy. The first thing I need to do is get a feel for what is going on. When I observe something, I apply the model by asking ‘why?’ and this is done five times.

Working example

Observation: “The sales team isn’t making enough sales”

Why #1 “Why isn’t the sales team making enough sales?”

Feedback: “Because they are not making enough calls”

Why #2 “Why isn’t the sales team making enough calls?”

Feedback: “Because they can’t access data on the system”

Why #3 “Why can’t they access data on the system?”

Feedback: “The system is too confusing to use, with duplicates and data missing”

Why #4 “Why is the system too confusing to use and have duplicates and data missing?”

Feedback: “It’s an old system that doesn’t allow us to easily cleanse the data.”

Why #5 “Why is the company using an old system that doesn’t allow staff to easily cleanse the data?”

Feedback: “The management invested a lot of time in the system when they set it up and don’t want to let it go.”

In this scenario it would be easy to blame the sales team for a lack of sales or to jump to blaming the management for a lack of vision. The benefit of the model comes when you apply the process to different observations. Eventually the analysis reveals the core challenges that might be holding the business back. 

To conclude

Headway Marketing uses the Root Cause Analysis model to help small businesses refresh and improve their marketing. By understanding what bits of the marketing haven’t worked in the past, you can create the right tools and practices to develop more effective solutions for the future.