Root cause and the 5-Whys along with problem solving using the IDEAL model - through the MVP we create opportunity - by applying detailed analysis to this we improve our learning

2. This book is for:
• Start-ups
• Stale businesses on the cusp of
adopting new ideas
• Existing businesses struggling with
growing pains
• Anyone who wants to learn about how
to develop their business

3. The goals of the
Bootcamp
• At the end of the six months to have
worked through the principles of the
book
• To apply many of them to real world
situations that apply to our own
businesses
• To embed some functions into your
activity that give you a cutting
edge

4. Let’s Refresh ourselves on
some of what we have covered
• Most businesses fail because they build something
that no-one wants
• Failing fast means we preserve more capital and can
pivot more
• The currency of start-up is learning – validated
learning through a Minimum Viable Produce (MVP)
• Vision leads to steering
• Ideas and assumptions are not the same – Ideas have
embedded assumptions that need testing
• Finding the ‘Big Idea’ and testing it
• Pivot or persevere?
• 3 Engines of growth – Sticky, Viral & Paid

5. Problems
Getting to the Root Cause

6. The Goal this Morning
To go away with some new tools and
fresh thinking so that every
decision to pivot or persevere is
seen as an opportunity or problem
solved.

7. What is a ‘problem’?
No more than an
opportunity

8. Today we will cover:
•The 5-Whys
•IDEAL - Model for
problem solving
•The Value of Small
Batches

9. Benefits of effective
problem solving
Saves Time Weak Links
Cause and Effect Stops it recurrence

10. Ever thought you solved something
that didn’t need solving?

11. The 5-Whys
Why?
1
Why?
2
Why?
3
Why?
4
Why?
5
RootCause

12. Created By Toyota in the
1930’s – Still used today
• Better when the process comes from
the grass routes
• Five is not the fixed amount of
Whys – but it is the minimum to get
to the root of a problem
• Look for answers that are grounded
in fact

13. The 5-Whys – an
example
Problem – I got in the car this morning and
it would not start
1. Why did it not start? – Because the
battery was dead
2. Why was the battery dead? – Because it had
been not getting charge as I was driving
3. Why was it not getting the charge? Because
the fan belt was slipping
4. Why was the fan belt slipping? Because I
have not replaced it recently and it was
worn
5. Why have you not replaced it? Because I
missed the service this year as I lost my
phone and diary

14. Counter Measure
Make sure that I diarise important
events multiple ways. Request a call
from the garage.

15. A problem
A ‘fictitious’ doggy day-care
centre is having problem with
a small number of clients
paying late for their
sessions.
Using 5 Why’s lets consider
the problem

16. The 5-Whys
1. Why are clients paying late?
A. They pay via the internet for a set amount of
days and on reconciliation at the end of the
month they are using more days than they paid
for so we have to chase them.
2. Why are they not paying for any excess days when
they drop their dog off?
A. When the dogs arrive there is normally a lot of
activity so, because it’s quick and easy, the
owners hand over the dog (who is known to us)
and they are manually logged in on the daily
sheet
3. Why does the daily sheet not show number of
number of days used and paid for?
A. The daily sheets are manually updated on an ‘as
and when’ basis with sessions loaded onto a
spreadsheet which updates the days

17. The 5-Whys
4. Why are these records not regularly
updated?
A. No set time has been allocated nor
responsibility for updating them been
given to a team member
5. Why has no time been allocated or
responsibility been given?
A. Up until now it has never been seen as
a problem

18. Counter Measure
The daily sheets will be updated at
the close of every day and the duty
to do this will be diarised so the
team member knows.

19. Marketing
Sales
Profit
Marketing
Sales
Profit
What should be happening What is happening

20. IDEAL method for
problem solving
I -
Identify
D -
Define
E -
Explore
A -
Action
L -
Learn

21. Step 1 – Identify the
symptoms?
•Supply chain misaligned
•Blockages & bottlenecks in
processes
•Poor data capture
• Wrong hires
• Disengaged staff
• Mistakes in decisions
• Anxiety and emotional
distress
•Wrong number of clients
•Poor quality products /
services
•Low customer retention
•High bounce rate
•Low profit
•Poor cash flow
•Weak credit
Finance
Marketing
& Sales
OperationsPeople
Symptoms Symptoms
Symptoms Symptoms

22. Don’t mistake
identification with
definition
Step 2 “Define the Problem”
Written Definition
Ownership
Affects Symptoms Systems

23. Take 10 Mins

24. Step 3 – Explore
solutions
•Mindset – need to learn
•Look for patterns
•Avoid confirmation bias
•Be data critical
•Sensitivities
•Cause & Effect
Widen
your
thinking
Explore
Common
themes
Narrow
the focus

25. Mindset
Seven steps to getting
1. Take responsibility for the problem
2. Take ownership of your emotions
3. Be clear about the true nature of
the problem
4. Be dispassionate in the description
– avoid blame
5. Actively listen
6. Be curious
7. Be clear on all the benefits of a
problem is solved well rather than
quickly

26. Step 4 - Actions

27. High
Impact
Low 1 2 3 4 5
Hard
Do-Ability Easy
Act with purpose
Prioritise & Target
Objectives
1. Compare
solutions
2. Shortlist
3. Generate
consensus

28. Step 5
-Learn
• What has changed?
• What problems have
we solved?
• What might be the
problems in the
future?
• Do we need to
innovate?
• Do we need to go
again?
Record your
results

29. Small Batches

30. Small Batches
Some counter-intuitive business
lessons
1. Sleep more and work less
2. Promote your competition
3. When did ‘a billion’ enter the
planning vocabulary – manage
expectations

31. Work in small batches
It improves efficiency and motivates
you

32. To come
13 Dec 2016 – The accelerate
your business – innovation
and people

33. Any Questions?
Back on the 13th of December