What to do when the strategy fails? Root cause analysis can help
Martin Hurych- před 4 dny
- Minut čtení: 5
Do problems that you thought were closed long ago come back to you repeatedly? The business isn't meeting expectations, the strategy is only working well on paper, and even though the team is going all out, you're still not seeing results?
You are probably only dealing with the consequences, while the real root of the problem remains hidden from you. Root cause analysis (RCA) can help you uncover what's really holding your business back and how to get rid of these obstacles once and for all.
Further in the article:
Why isn't business working as planned?
"We have a weak quarter, add more leads."
"The trader doesn't execute the plan? We'll replace him."
"Orders are stretched, add urgency."
Sound familiar? You are not alone. When business starts to grind, most companies react the same way: they put out the fire. Quick action, quick solutions, quick relief. But this reaction often masks the real problem, and it quietly swells.
What is often missing is not motivation or performance. It's the ability to look beneath the surface. To understand what caused the problem. And you can't do that without a more systematic approach, like root cause analysis.
What is root cause analysis and how it helps you grow
Root cause analysis (RCA) is a way to systematically get to the real cause of a problem. It doesn't stop at the first explanation or the loudest hypothesis. It helps to uncover why the problem occurred, what factors caused it and what needs to change to prevent the situation from happening again.
In companies, we often deal with symptoms: low sales, clients leaving, poor team performance. But if we don't find out what caused the symptoms, we risk just changing the scenery while the cause remains.
RCA gives the company a framework for looking at problems without shortcuts. It helps to make decisions that are not just quick, but effective and sustainable.
How to find out what's holding back your company's growth: 4 areas where RCA helps the most
The growth of a company is usually not hampered by one big problem, but by a series of smaller setbacks that gradually build up. RCA helps you find these brakes and determine where it makes sense to start. Most often, the hidden causes are found in these four areas:
Business results
Can't close contracts? Are your conversions dropping? Are you changing one salesperson after another with no improvement? Instead of replacing people, the problem may be in how you conduct meetings, in targeting, or maybe the team isn't clear on how to properly present your value. With RCA, you'll be able to look at the numbers and real situations to see where your business is really breaking down.
Stating went through a similar challenge when it needed to set up a business system that would stop depending only on individuals. See what helped them increase turnover by 18%.
Customer turnover
When a client leaves, it is not enough to know that "he was dissatisfied". You need to understand what specifically - was it the price, the communication, the product, or something else entirely? Without root cause analysis, you risk the story repeating itself over and over again. And that you lose another customer without knowing why. A well-prepared client development plan can help.
Strategies
Companies often change direction based on what is not working. But if you don't know why it's not working, each new strategy is just another attempt. RCA can help you discern why certain steps missed the mark - and what you need to control so that you don't run the business, but rather you run the business effectively.
Processes
Slow reactions, errors, frustration in the team - sometimes the fault lies in the very way the company works. Root cause analysis will reveal weaknesses in your processes that at first glance look like "business as usual" but are actually unnecessarily hindering performance and growth. If you feel like you're extinguishing rather than managing, with RCA you'll gain control your contractsover .
How to do root cause analysis in practice: a simple step-by-step process
Root cause analysis is not rocket science, but it does require discipline. What is the key? Don't give in to the temptation that "you already know this". Instead, dig deep into the problem. Here's a basic framework for how to do it.
Name the problem as specifically as possible
Instead of "business is not going well", try:
"The conversion rate between the first meeting and the signing of the contract has dropped by 30% in the last three months."
The more accurately you describe the problem, the less room there is for impressions and excuses.
Ask "why" - and not once
The 5x why method is simple but effective. It helps reveal connections that would otherwise remain hidden. Example:
Why has conversion dropped? Because clients are more likely to say they don't need our solution.
Why do they say that? They don't understand its benefits.
Why doesn't he understand? Businessmen talk about features, not value.
Why do they do that? They don't have a value argument.
Why don't they have it? Nobody's made one yet.
Suddenly it is clear that the problem is not the people, but the lack of evidence.
Verify hypotheses with data
Once you have a working hypothesis of the cause, look for data to confirm or refute it - sales results, CRM records, client interviews. RCA is not about feelings, it's about verifiable connections.
Involve the team
The cause often does not lie in one department. That's why it makes sense to do the RCA as a joint workshop across teams - sales, marketing, support. The different perspectives will often help pinpoint where the problem is occurring.á.
Don't know where to start? Maybe you're asking the wrong questions
Running a business in turbulent times is not easy. But when you know where the real problems lie, decisions are easier to make - and more importantly, they lead to results. Root cause analysis is not just a method to put out fires, but a way to think strategically and long-term.
If you feel that you are constantly going round in circles in your company or that business is not going the way it should, get in touch. I'd be happy to walk you through where the best place to start is - whether it's with an RCA or another tool to help you grow.
