#PillolediManagement by Andrea Greco: Corporate Problem Solving and methodologies for analyzing root causes

Problem solving is a structured technique applicable in business and non-business contexts. Problem solving in the corporate context is crucial to ensure efficient and sustainable operation of business. Addressing problems effectively requires the application of targeted methodologies that go beyond the surface of the symptoms, penetrating to the root causes. Defining a problem and formulating it is the key to succeeding in solving it: analyzing processes can highlight where we are today and where we want to be, in quantitative terms.

There are various techniques to deal with the problem, from the “off-the-shelf” one that is applied with the use of a few steps to the more time-consuming ones that are carried out with actual projects: they all have in common the need to address the root causes of the problem itself.

Here are some key methodologies used by companies to analyze and solve problems:

Ishikawa Diagram (or Fishbone Diagram):

This visual tool helps identify the possible causes of a problem by breaking down the decision-making process into categories such as people, processes, equipment, materials and environment. This method facilitates understanding the interconnections between various factors.

5 Whys:

This technique, combined with the Kaizen method, involves continually questioning why a problem exists until the root cause is identified. Through a series of “whys,” one can dig deeper to solve the root problem.

SWOT analysis:

This tool assesses strengths, weaknesses, opportunities and threats. The SWOT analysis provides a comprehensive overview of the company, helping to identify areas where you need to focus to address problems.

Brainstorming:

Bringing a team together to generate ideas in a free and unstructured way can reveal innovative solutions. Brainstorming stimulates creativity and offers different perspectives to solve a problem.

Process Map:

Analyzing business processes in detail through maps can reveal inefficiencies or gaps. This approach helps identify problem areas and improve overall management.

Cause-Effect Analysis (or Ishikawa Head Down Diagram):

This methodology focuses on the desired effect by identifying the causes that may contribute to or hinder the achievement of that outcome.

The combination of these methodologies provides a holistic approach to corporate problem solving, enabling organizations to address challenges strategically by analyzing root causes and implementing effective solutions.

The goal of problem solving is the indefinite removal of the problem, and this undoubtedly results in growth of the business organization and achievement of goals through optimization and continuous improvement.

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