Part of What Is Wrong With My Business?

Find the cause of a recurring business problem.

Which explanation survives the evidence?

Root cause analysis traces a recurring business problem to the conditions producing it. Describe the failure, compare plausible explanations against operating records, and test whether changing a suspected cause changes the result. Several causes can contribute; a recurring symptom alone does not identify any of them.

Stan helps business owners make clearer choices around management, growth, money, team, and operations.

  • what is wrong
  • the next business move
  • business area
  • wrong commitment
  • owner problem
Find the next business move

Separate the terms

A symptom, a cause, and a constraint answer different questions.

Symptom.

What happened? Quotes reach customers after the promised date. Record the delay before deciding why it happened.

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Possible cause.

Why did it happen? Incomplete job details may prevent pricing. That explanation needs evidence from the delayed quotes.

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Current constraint.

What limits output now? One person's approval capacity may limit completed quotes even after the job details are complete.

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Different remedies.

Better intake addresses missing information. Approval authority addresses waiting. A business can need both; calling them the same problem hides that choice.

Illustrative example

Quotes are late. Where does the time go?

  • For each recent quote, record request time, complete-information time, pricing completion, approval and delivery to the customer.
  • Compare similar jobs. A custom project and a repeat order may legitimately need different work.
  • Include quotes that arrived on time. They help show which conditions differ when the process works.
  • Separate time spent working from time spent waiting for an input or a decision.

Suppose completed prices wait for owner approval while the information-gathering stage stays short. Better intake would leave that approval delay untouched. This is an illustration of the reasoning, not a client result.

Compare explanations

What would support each cause, and what would weaken it?

Missing information.

Support: work repeatedly waits for specifications. Weaker explanation: complete requests are just as late, with most delay after pricing is finished.

Approval delay.

Support: completed quotes accumulate awaiting permission. Weaker explanation: approval is prompt but pricing itself starts late.

Insufficient capacity.

Support: ready-to-start work accumulates while the people doing it are occupied. Check the work mix and rework before concluding that another hire is needed.

Several causes together.

Some quotes may lack specifications while others wait for approval. Separate those groups; an average delay can conceal two different problems.

Run a bounded test

Change the suspected cause and check the whole result.

  • State the prediction: allowing a qualified manager to approve routine quotes within agreed limits should reduce approval waiting.
  • Specify eligible work, authority limits and exceptions before changing the process.
  • Compare similar quotes before and during the test. Record other changes in demand, staffing or job complexity.
  • Check total turnaround and approval waiting, along with errors, rework and commitments the company cannot deliver.
  • If approval waiting falls but total turnaround does not, inspect the next delay. If errors rise, revise the limits or preparation before extending the change.

A record you can use

  • Problem and baseline: what happened, where, and over which work?
  • Explanation: which condition might be producing it?
  • Alternative: what else could explain the same result?
  • Change: what will happen differently, and who owns it?
  • Evidence: what result would support or weaken the explanation?
  • Checkpoint: when will enough comparable work be available to decide?
  • Decision: continue, revise, stop, or collect more evidence?

Method and limits

A small operational test narrows uncertainty; it does not prove one cause explains the whole business. Keep necessary containment in place while investigating. ASQ's problem-solving guidance separates problem definition, cause verification, implementation and sustained results. The quote example and working record here are an owner-focused illustration.

Common questions

Answers for owners.

What is root cause analysis in business?

It is the investigation of the conditions producing a business problem, using operating evidence, alternative explanations and tests of a proposed change.

Is a root cause the same as a business constraint?

No. A root cause explains why a failure occurs. A constraint limits what the business can achieve now. They can coincide, but may require different changes.

Can a business problem have several causes?

Yes. Different jobs, customers or stages can fail for different reasons. Separate the affected groups before assuming one explanation applies to all of them.

What if the test does not improve the result?

Check whether the change was implemented, whether the suspected cause changed, and whether another condition still limits the result. A failed test is a reason to revise the explanation, not automatically to spend more on the same remedy.

Related pages

Next step

Discuss the work your business needs.

Ongoing coaching can support decisions, action and review. A defined investigation or implementation project may call for consulting. The scope of the work determines the fit.