8 Step Problem Solving

IIBA.org
© International Institute of Business Analysis
Exercise I
• Choose a problem you are facing.
• Document your problem and how you would solve it here.

IIBA.org
2
© International Institute of Business Analysis
Why 8-Step..?
Every employee needs to solve problems every day.
The 8-step Problem-Solving Process is the standard
practice, because:
– It is a foundational skill for Lean
– Brings clarity to what problem is being addressed
– Ensures a thorough analysis of the problem and that root
cause investigation is carried out
– Helps user complete all steps
– The Process is scalable
– Common language
IIBA.org
3
© International Institute of Business Analysis
8-Step – A3

The A3 Report is a Toyota-pioneered practice.

A3 is an international paper size, in the US its equivalent is 11”x17”
IIBA.org
4
© International Institute of Business Analysis
A3 – 8-Step Process Recording
• Communication tool
– Share this regularly with your team and leaders
– Display it…keep it visible!

• Living record
– Use pencil, edit, change as more is learned

• Template helps ensure all steps are

covered
– This guide will get you started.
– Once you are familiar with the technique, any blank 8-step sheet will work

• Scalability
– Dependent on the impact of the problem being solved
• Solving the problem of where to go to lunch – no need for an A3
• Solving a problem that impacts our company financials - Yes
• Accelerating implementation of our enterprise strategy – Yes
IIBA.org
5
© International Institute of Business Analysis
A3 – 8-Step Story Board

• Not a form, not even a standardized format

• Adjusted for the type of story being told (e.g.,
quality problem versus company strategy)
• Always complete the 8-Steps in sequence
• No exact or specific look or format
• The more visual the better (pictures, charts, no small
print)
• Fits on one page, break down if necessary
• Flow as a story (visual story teller)
IIBA.org
6
© International Institute of Business Analysis
8-Step Process Recording

IIBA.org
7
© International Institute of Business Analysis
Step 1 – Define the Problem

IIBA.org
8
© International Institute of Business Analysis
Define the Problem
What is a problem..?
A gap between where you want to be and where you are

Two Kinds of Gaps:

• Sub-standard performance - Correct a variation to
standard
• Raise the Bar – A gap between current performance and
where you want it to be

Note: Select one you own and haven’t delegated

IIBA.org
9
© International Institute of Business Analysis
Writing Problem Statements
 Clear
 Concise
 Measurable (where possible)
 Factual – what is known and how
 Visual
 Impact of doing nothing included

Example format The Software Requirements Memory Jogger

The problem of [Describe the problem]
Affects [The stakeholders affected by the problem]
The impact of which is [What is the impact of the problem]
A successful solution [List the critical benefits or key capabilities that the solution,
would be however implemented, must have to be successful]

Write the problem statement in pencil. Erase and re-write as you learn more.

IIBA.org
10
© International Institute of Business Analysis
Step 2 – Clarify the Problem

IIBA.org
11
© International Institute of Business Analysis
Clarify the Problem
THINK CRIME SCENE INVESTIGATION!

• Go to where the problem is occurring

– Experience the actual process and validate ownership
– Ask questions, “Only the facts.”
– Interview participants
– Collect artifacts, gather data - in relation to the Problem

• Can you isolate or narrow down the leads for future

analysis?
IIBA.org
12
© International Institute of Business Analysis
Step 3 – Define the Goal

IIBA.org
13
© International Institute of Business Analysis
 Define the Goals
• What is the end goal or desired future state?
• What will you accomplish if you fix this problem?
• What is the desired timeline for solving this problem?
• A good goal statement is:
– Specific
– Measurable
– Achievable
– Relevant
– Time based

• Set individual goals for each of the down-selected ideas

from Step 2
IIBA.org
14
© International Institute of Business Analysis
Step 4 – Identify the Root Cause

IIBA.org
15
© International Institute of Business Analysis
The 5 Whys Process
Many tools can be used to drill down to an issue’s root cause. – for
standardization and best practice it is recommended to use The 5 Whys
Process.

• It is a consistent approach
• It can be universally applied to most situations
• It provides a method to identify
– Direct Root Cause
– Detectability - Why the issue was not detected
– Systemic Root Cause.

Keep in mind:
• More than 5 questions can be used when necessary.
• People do not fail, processes do
IIBA.org
16
© International Institute of Business Analysis
Effects and Causes
Effects Causes
Injury Caused By Fall
Fall Caused By Slipped
Slipped Caused By Wet Surface
Wet Surface Caused By Leaky Valve
Leaky Valve Caused By Seal Failure
Seal Failure Caused By Not Maintained

Source: Apollo Root Cause Analysis, 3rd Ed,

Dean L. Gano, 2007

IIBA.org
17
© International Institute of Business Analysis
Step 5 – Develop Action Plan

IIBA.org
18
© International Institute of Business Analysis
Develop an Action Plan
For the selected Root Causes to be addressed

• Generate a list of actions required to solve the problem (solution)

• Assign an owner to each action

• Assign completion date

–“Lock-in” the due date – hold the team accountable for giving a
reasonable date to start with and then for delivering by that
date.

• Identify intended benefit

IIBA.org
19
© International Institute of Business Analysis
Step 6 – Execute Action Plan

IIBA.org
20
© International Institute of Business Analysis
Execute Action Plan
• Up until now, no changes have been made, solutions
have only been offered and plans made to implement
them
• Implement action plan to address the root cause
• Consider piloting improvements on small scale to
reduce risk
• Be cautious of over-analyzing
• Don’t wait for the perfect solution
• Verify actions are completed
• Document the process
IIBA.org
21
© International Institute of Business Analysis
Step 7 – Evaluate the Results

IIBA.org
22
© International Institute of Business Analysis
Evaluate the Results
• Monitor progress
• Are you on target to meet your goals?
– If not, reassess the 8-Step Problem-Solving
Process
• Were there any unforeseen consequences?
• Did you experience ah-ha moments?

IIBA.org
23
© International Institute of Business Analysis
Step 8 – Continuously Improve

IIBA.org
24
© International Institute of Business Analysis
Continuously Improve
• Look for additional opportunities to implement the same solution
– Another product line with same design?
– Where can we standardize Processes?
• Communicate lessons learned
– Share your problem and solution with other teams – you
never know who may be trying to solve the same or similar
problem
• Ensure problem will not come back
– Implement controls and metrics
• Repeat the process to drive further improvements
• Celebrate your successes

IIBA.org
25
© International Institute of Business Analysis
 Iterative Process

Step 1

Step 2

Step 4

Step 5

IIBA.org
26
© International Institute of Business Analysis
Common pitfalls
• Someone else owns the process
• Trying to tackle everything… choose your battles!!!
• Sizing the problems: break them down into smaller
problems
• Not understanding the actual problem
• Problem is not measurable…if you don’t know where
you started, you won’t know whether you improved
• No or unreliable data
• Use of junk words or data
• Jumping to conclusions and solutions…
Problem Statement (with pitfalls):
We have too many customer complaints about various things that are caused by some of
our own plants. We need to reduce the number of complaints by paying more attention
when we get the orders, quote and invoice them.

IIBA.org
27
© International Institute of Business Analysis
Common pitfalls…continued
• Going fast, but getting no where…how long does it take to
solve a problem? …it is not about Speed, it is about moving
Correctly at the Right speed.
• Earn the right…study examples to understand the concepts,
don’t just copy.
• Lessons Learned is missed…what have we learned and how
can we get better
• Sustainment through standardization is missed…how do you
make sure we don’t fall back?

IIBA.org
28
© International Institute of Business Analysis
Exercise II
• Think about the same problem from earlier
exercise.
• Utilize the 8-Step Problem Solving Process to
address the same problem.

IIBA.org
29
© International Institute of Business Analysis
 TITLE:
Define The Problem
PLAN

Clarify the Problem   PLAN

Define the Goal   PLAN

Root Cause Analysis   PLAN

 

IIBA.org
30
© International Institute of Business Analysis
 MENTOR: DATE:

Develop Action Plan

PLAN

Execute Action Plan

DO

Evaluate the Results

CHECK

Continuously Improve – Next Steps ACT

IIBA.org
31
© International Institute of Business Analysis
Recommended Skills for more Effective Problem Solving

Critical Thinking
(CBT)

8-Step Problem
Overcoming Biases Better Solutions
+ Solving =

Crucial
Conversations
(ILT)
We cannot solve our problems with
the same thinking we used when we
created them.
Albert Einstein

IIBA.org
32
© International Institute of Business Analysis
References
http://www.lean.org/

A Guide to the Business Analysis Body of Knowledge®

Section 8.1.4

IIBA.org
© International Institute of Business Analysis
33
Questions

IIBA.org
© International Institute of Business Analysis
34