Root-Cause Analysis

The wish for performance improvement usually suggests that there is some type of performance problem. The problem could be serious for company health or it could just be troublesome. Regardless, something needs to change to improve performance.

Usually the symptoms of poor performance are obvious: sales are falling, defect rates are high or increasing. A mistake many companies do is to try to solve the symptom without fully assessing what the root-cause of the symptom might be. For example, if sales are falling the root-cause could be poor product quality, improper pricing or promotion, incorrect staffing and compensation of the sales staff, a competitor that is simply doing better and so forth. Obviously correcting the symptom – falling sales – would be best approached from solving the root-cause only. That is, if the root-cause is improper pricing then make changes only there rather than in the sales staff.

There are over one dozen different ways of determining the root-cause of performance problems. TBSC selects the best method for the particular situation in the company. None of the methods are particularly complex (no rocket science here) but finding the real root-cause usually requires a set of outside experts that can bring a dispassionate view to the situation.

Consultant-supported performance improvement is not widely used in Georgia, but it is very common in the rest of the developed world. TBSC consultants have done this type of work for more than a quarter century. Our experience helps clients get to the real root-cause as quickly as possible and then implement the cures to the root-cause in the easiest way possible.