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Small Business Tips For Business Owners About Cause And Effect Analysis

by Guest Author 22 May 2019 09:50

Operational problems of any kind can be a plague on a growing business, especially when you cannot get to the root of those problems. Sometimes, the only way to identify and address problems that could cripple your business is through a comprehensive cause and effect analysis. If you are new to this form of business analysis, here are some things that you should know.

Detail The Problem

An adequate cause and effect analysis starts with a detailed examination of the problem itself. The problem itself is the head of the analysis chart. This should include the nature of the problem and how extensive it is. It should also detail which aspects of the business are affected and some general beliefs of the reasons why.

Identify The Causes

Gather a team of staff from the areas of the business affected, as well as some of your operational specialists. Host a brainstorming session to identify the possible causes for the problem in question. During this session, the goal is to list as many potential causes as possible, because this could help you to narrow down the actual source of the issue.

For each of these potential causes, you should also identify any of the contributing factors to each of those causes. As an example, if one of your potential causes is slow production, staffing issues, supply problems, and quality control issues can all contribute to this.

Evaluate Each Cause

Once the brainstorming session is complete, it's time to start assessing each of the potential causes. Assess each potential cause for its own severity. Rank the causes starting with most severe of the potential causes, and work your way to the least. This allows you to determine an action plan that will resolve your problems.

Create A Plan

Addressing each of these causes and eliminating them will help you to resolve the problems that are plaguing your business, and having them in writing gives you something measurable and clear to work from. Once you have prioritized the causes, it's time to develop a clear plan to resolve those issues. The completed action plan should allow you to solve the problem that is plaguing your business through each detailed step.

For more information about cause and effect analysis as well as other forms of business analysis, contact us today.

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