Extract
When facing the receipt of negative comments from a client or collaborator, the sanction by a regulatory body (government), the observations of an internal audit exercise, the failure to meet objectives and goals, among other business problems, we must Have a systematic approach to go deeper and resolve root problems.
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Solving Business Problems
In today's dynamic business world, undesirable situations arise that restrict and hinder the achievement of High Performance in the organization, which has an impact on the results we expect in our businesses. That is why the ability to analyze and solve problems in an efficient, effective and timely manner is crucial for the sustainability of companies.
In this sense, Continuous Improvement (Kaizen, in Japanese) based on Lean thinking emerges as a method to solve a problem, analyze its causes and generate actions that prevent it from happening again. In this systematic approach, all members of the organization participate as a multidisciplinary team in problem solving, constantly looking for ways to eliminate waste, reduce variation and improve workflow; as well as avoid:
Accidents that put the safety of collaborators at risk.
Defects in quality and the application of guarantees.
Cost overruns due to lack of good management.
Differences in production times.
1. Identify the Problem: “Houston, We Have a Problem”
When any unfavorable situation arises, such as power conflicts (specially in family businesses), containment actions focused on preventing this from continuing must be devised, implemented and consulted. If there is a high probability that it will occur again and/or become greater, it should be clearly defined what the problem is and its effects and impacts to have a notion of its scope and implications. To do this you must:
Pose the problem in terms of a “Current State”. What's going on?
Define the “Desired state.” What would we like?
Identify the “Difference” between these states. How much do we need?
This works so that all people involved in the problem have the same vision about (1) what the specific problem is, (2) how and when it manifested, (3) who is involved or affected, and (4) what impact it has on the business. Subsequently, it must gather quantitative, qualitative and relevant testimonial information to determine whether the problem is under our control/influence or not, and establish, if they exist, the benefits of solving it as a team.
2. Analyze the Problem: Identify the Root Cause
Once you have a complete and shared description of the problem, you can use a cause-effect diagram (Ishikawa) to achieve an expansion/divergence and identify, explore and graphically represent all possible causes of a specific problem. The structure of this diagram helps organize the possible causes of a problem into categories.
Example of Categories in an Ishikawa Diagram
People: Human factors, skills, training and motivation. For example:
Lack of adequate training.
Lack of experience of the team.
Lack of human resources.
Lack of supervision.
Bad communication.
Human errors.
Methods: Procedures, processes and policies. For example:
Lack of process documentation.
Slow approval processes.
Lack of milestone tracking.
Inadequate instructions.
Obsolete procedures.
Inadequate planning.
Machines: Tools, equipment and technology. For example:
Inadequate maintenance.
Problems with the software.
Incorrect configuration.
Lack of hardware.
Obsolete equipment.
Slow teams.
Materials: Raw materials and supplies. For example:
Inputs not delivered on time.
Poor quality of materials.
Low quality raw materials.
Lack of inventory control.
Unreliable suppliers.
Lack of stock.
Environment: Environmental conditions and the organizational culture itself. For example:
Frequent changes in project priorities.
Unfavorable working conditions.
Unstable working conditions.
Tense organizational climate.
Lighting problems.
Noises or distractions.
Measurement: Data, analysis and inspections. For example:
Lack of adequate measurement tools.
Inadequate inspection procedures.
Poorly defined performance indicators.
Errors in data collection.
Inaccurate progress reports.
Lack of constant monitoring.
Subsequently, the individual causes are selected and the “5 whys” technique is used to achieve contraction/convergence and identify the root causes of the problem. The technique is to ask "Why?" repeatedly (usually five times) to go beyond the surface symptoms of the problem and get to the underlying cause.
Example of Application of the 5 Whys
One of the most common problems in organizations is that “The project was not delivered on time.” This problem, generally attributed to poor project closure management, must be analyzed to determine its root cause:
Why was the project not delivered on time?
Because the final tasks were not completed on time.
Why were the final tasks not completed on time?
Because there were delays in the previous stages of the project.
Why were there delays in earlier stages of the project?
Because the project requirements were not correctly identified at the beginning.
Why were the project requirements not correctly identified at the beginning?
Because there was no proper initial meeting with the client.
Why wasn't there a proper initial meeting with the client?
Because there was no established process for organizing initial meetings with clients.
Thus, the lack of an established process to organize initial meetings with clients results in late delivery and that at the same time establish a clear process and mandatory to organize detailed initial meetings with clients at the beginning of each project can solve the root of the problem.
3. Generate Potential Solutions: See the “How to do”
To generate potential solutions, a “brainstorming” exercise must be carried out where those involved in the problem are brought together and allowed to share your ideas freely, without judging or discarding any proposal. Having several possible preventive and corrective solutions on the table, these must be evaluated and classified according to their Implementation Feasibility (Easy or Difficult) and Impact (High or Low) in times and costs to determine:
Strategic Actions (easy implementation and high impact) that must be executed in less than 1 week.
Transformation Actions (difficult implementation and high impact) that must be executed in less than 1 month.
Optimization Actions (easy implementation and low impact) that must be executed in less than 1 month.
Challenge Actions (difficult implementation and low impact) that must be executed in less than 2 months.
4. Implement Potential Solutions: Let's Take Action
Based on the list of actions devised, must develop a detailed action plan to implement the chosen solution. This plan must include:
Clear and specific objectives.
Detailed steps for implementation.
Assignment of responsibilities.
Schedule with deadlines.
Necessary resources.
And must be accompanied by a backlog to closely monitor the execution of solutions, generate responsibility, give sense of urgency and monitor the effectiveness of the solution. It is important to have meetings regularly, at least once a week, to check the progress of activities, notify changes, update the work plan and maintain team alignment.
5. Evaluate the Problem Solution: Measure the Change
During implementation, the effectiveness of the proposed solution must be constantly evaluated, at least once a month, in terms of:
Less exposure, probability and severity of accidents.
Customer satisfaction with the product or service.
Savings generated.
Recovery or optimization of times.
And with this answer the questions:
Has the problem been resolved?
What has worked well and what hasn't?
What learnings can be extracted?
With this, we can conclude the improvement action, share lessons learned and prepare a closing report that allows us to communicate to the rest of the organization the benefits and contributions of the Problem Analysis and Solution process.
Conclusion: Fostering Continuous Improvement
Problem Analysis and Solution is an iterative process. Even after solving a problem, there are always new opportunities to improve. By fostering a culture of continuous improvement based on Lean thinking, where constant feedback and the search for new ways to optimize processes and solve problems more efficiently are promoted, Companies can turn even the biggest obstacles into stepping stones to business success.
We hope this guide provides you with a helpful framework for addressing the issues you face on your path. Do you have any techniques or personal experiences that have helped you solve problems? Share your stories and tips in the comments!
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About Pablo Tellaeche (Author):
Owner and main consultant of TACs Consultores, Lecturer and University Professor; seeks to bring a true and positive Culture Lean and Digital Transformation to any company with which you have the pleasure of collaborating.