Are you struggling to solve an annoying problem?
Learn how to effectively perform Root Cause Analysis (RCA) as a Business Analyst through this Step-by-step guide, RCA Techniques, Best Practices and a Real-world RCA example to find the root cause of a problem and kill it permanently.
Introduction #
Root Cause Analysis (RCA) is a powerful technique that helps Business Analysts (BAs) identify the underlying causes of problems rather than just addressing symptoms.
In the fast-paced world of Business Analysis, understanding the root cause of process inefficiencies, project failures, software failures or customer complaints can drive sustainable improvements and long-term success.
In this guide, we will break down RCA into actionable steps and provide real-world examples that demonstrate its value for business analysts.
What is Root Cause Analysis? #
Root Cause Analysis (RCA) is the systematic examination of a problem or incident that focuses on the problem’s root cause as the proper point of correction rather than dealing with only its effects.
Root cause analysis looks at the main types of causes such as:
- People (human error, lack of training)
- Physical (equipment failure, poor facility), or
- Organizational (faulty process design, poor structure)
By identifying and addressing the root cause, businesses can prevent recurring problems, reduce risks, and optimize operations.
Why is RCA Crucial for Business Analysts? #
A Business Analyst often deals with analyzing functional issues with software or problems in business processes.
Most organizations have a dedicated support team to address customers’ problems. Whenever a problem recurs and cannot be solved by the support team, the Business Analyst analyses it and suggests a permanent solution.
The RCA process becomes crucial for Business Analysts to address such recurring problems.
A Business Analyst must know the RCA process due to its powerful outcomes such as:
- Improved Decision-Making through Data-Driven Insights
- Enhanced Analysis Efficiency by using proven techniques to find the root cause
- Permanent Solutions by addressing root causes
- Improved Project Success by proactively addressing foundational issues early to reduce delays and failures
The RCA Process: A Step-by-Step Guide #
Step 1: Define Problem Statement #
- Clearly and concisely define the problem statement or issue description that needs further investigation.
- Example Problem: The customers are not able to generate reports from the internet banking system.
- Collaborate with stakeholders to gather details and frame the problem by asking further questions such as:
- Which customers are not able to generate reports?
- Which reports could not be generated?
- How many customers have complained about this issue?
- What is the business impact of this issue?
- Example Problem Statement:
“All personal banking customers are not able to generate the Tax Report from the Internet Banking web application. The Customer’s Tax Reporting process is impacted by this issue.”
Step 2: Collect Data #
- After clearly defining the problem statement, the next step is to collect relevant data from around the problem to understand the full scope of the issue such as nature, magnitude, location and timing of the problem.
- For Example: Analyze server logs, customer complaints, timing and frequency of occurrence, etc. to identify patterns
- Use Surveys, Interviews, and System Data to collect real insights on the problem.
Step 3: Identify Root Cause by Applying RCA Techniques #
- After having a clear problem statement and relevant data about the problem, the next step is to apply the proven techniques to identify the root cause of the problem.
- The following are the main RCA techniques for Business Analysts:
- Fishbone Diagram (Ishikawa) – Categorize potential causes into areas like People, Process, Technology or Tools and Environment or Policies
- 5 Whys Analysis – Ask “Why?” five times or more to drill down to the root cause
Step 4: Develop & Implement Corrective and Preventive Actions (Solutions) #
- Once the root cause of the problem is identified, the next step is to brainstorm and evaluate potential solutions to solve the problem.
- Once a solution is selected, define an action plan with clear responsibilities, Key Performance Indicators (KPIs), Test Scenarios, timeline and resources.
- Coordinate with relevant stakeholders to execute the action plan to implement the solution.
Step 5: Monitor & Validate #
- Once the solution is implemented, monitor the effectiveness of the solution by collecting data as required by the defined KPIs.
- Validate the KPIs to ensure that the solution effectively resolves and problem and prevents recurrence.
- If the solution doesn’t work as expected and the problem is not resolved completely, do the follow-up RCA, identify gaps in the solution, and address those gaps for proper resolution.
The RCA Techniques #
1. Fishobone Diagram (Ishikawa Diagram) #
- A Fishbone Diagram (also known as Ishikawa or Cause-and-Effect Diagram) is used to identify and organize the potential causes of the problem.
- This tool helps to focus on the cause of the problem verses the solution and organizes ideas for further analysis.
- The diagram serves as a map that depicts possible cause-and-effect relationships.
- It’s a 7-step process to create a Fishbone Diagram:
- Step 1: Capture the Problem Statement in a box at the beginning
- Step 2: Draw a line from the box forming the spine of the fishbone
- Step 3: Draw diagonal lines from the spine to represent categories of potential causes such as People, Process, Tools/Technology, and Policies/Environment
- Step 4: Draw smaller lines for each category to represent deeper causes
- Step 5: Brainstorm potential causes under each category and mention them under the category
- Step 6: Analyse the results and validate it with actual data to identify the root cause of the problem
- Step 7: Brainstorm potential solutions, select the best solution and get it implemented
2. Five Whys Analysis #
- The Five Whys Analysis is a question-asking process to explore the nature and cause of a problem. It was developed by Sakichi Toyoda (Founder of Toyota Industries) in 1930.
- It repeatedly asks questions in attempt to get to the root cause of the problem.
- It’s the simplest facilitation tool to use when problems have a human interaction component.
- It’s a 3-step process:
- Step 1: Write the problem statement on a Paper or Whiteboard
- Step 2: Ask “Why do you think the problem occurs?” and capture the response below the question
- Step 3: Ask “Why?” again and capture the response below. Repeat this step until the root cause has been identified. It may take more or less than the 5 questions.
- The Five Whys technique can be used alone or as part of the fishbone diagram technique to identify potential causes for each category of the fishbone diagram.
Real-World RCA Example: Problem While Submitting an Application Form #
Scenario #
- Consider a Web Application where a client can apply for a loan by filling out an application form along with the required documents.
- There is an Admin Panel application where the back-office staff can verify the submitted application and process it further.
- This system also sends the uploaded documents to an external system for further verification and processing.
Problem #
- Nothing happens when a client fills out the application form and presses submit button.
RCA Process: #
1. Define Problem Statement #
- Ask the following questions to the customer support team.
- Did it show any error message upon submitting the application form?
- Were there any documents uploaded while submitting the application form?
- Which browser the client was using to submit the application form?
- Is this issue happening to all the clients or a few clients from a particular location or wanting to apply for a specific type of loan?
- Define the problem statement after evaluating answers to the above-mentioned questions.
- Problem Statement: Client is not able to submit a Loan Application
2. Collect Data #
- Reproduce the issue by following the same steps as one of the clients facing the problem and observe the system behaviour while submitting the form
- Collect server logs of the form submissions that were failed to process
- Collect location and/or IP address and browser information of the clients who faced this problem
3. Identify Root Cause by applying the 5-Whys Technique #
- Apply the 5-Whys technique as follows:
- Client is not able to submit a Loan Application.
- Why?
- Answer: The system is not responding. It’s processing forever.
- Why?
- Answer: There is some issue while handling the documents.
- Why?
- Answer: It failed to upload documents to the External System.
- Why?
- Answer: The size of the API request to the external system should not exceed 10 MB
- Why?
- Answer: The client uploaded 2 documents of sizes 4 MB and 9 MB respectively so the total size is 13 MB. The system sent both documents in a single API request so it failed. This is the Root Cause of the problem.
4. Develop & Implement Preventive Solutions #
- Brainstormed possible solutions and the following solution has been selected:
- Make the document upload process offline to avoid the issue on the client side.
- Send each document in a separate API request to the external system so that the size of the request remains within the 10MB limit.
- Defined the following Key Performance Indicator (KPI) and Test scenarios to validate the effectiveness of the solution:
- KPI: On pressing the submit button, the application form should be submitted immediately without any processing delays and the Thank You page should be shown to the client.
- Test Scenarios:
- Submit the application form without uploading any document
- Submit the application form with a document of size 5 MB
- Submit the application form with a document of size 9 MB
- Submit the application form with 3 documents of sizes 4 MB, 2 MB, and 6 MB respectively.
- Get the solution implemented
5. Monitor & Validate #
Monitor the solution by evaluating the defined KPI and test scenarios to ensure that the problem is solved and the clients can always submit the application form.
Best Practices in RCA for Business Analysts #
- Involve Stakeholders: Encourage active participation of all the relevant stakeholders throughout the RCA process and record their inputs and observations about the problem.
- Focus on Data: Gather all necessary data and analyze it objectively and accurately.
- Maintain Open Communication: Foster a culture of open and honest communication among stakeholders.
- Be Patient and Persistent: RCA can be a time-consuming process hence be patient and persistent throughout the process. Jeopardy can lead to the wrong root cause costing time and resources.
- Continuous Improvement: Regularly review and improve the RCA process.
Conclusion #
Root Cause Analysis (RCA) is a must-have skill to succeed as a Business Analyst. It adds real value to your analysis work, improves problem-solving, decision-making, and helps you in elevating the performance of the business applications.
Albert Einstein said:
“If I had an hour to solve a problem, I would spend 55 minutes thinking about the problem and 5 minutes thinking about solutions.”
That’s exactly the purpose of the RCA process hence it’s recommended to follow the RCA process for each problem at hand to solve it permanently.
