What Entrepreneurs Can Learn From Amazon. Part 3 : Find the Root Cause.

The third in my six-part series where I dive into the most valuable things I learned after several years at Amazon, and what this can teach entrepreneurs, CEOs, start-ups and new businesses.

Part 3: Root Cause Analysis.

Whenever there’s a significant error, or an issue recurs multiple times, the relevant teams at Amazon will undertake a Root Cause Analysis (RCA). A Root Cause Analysis does exactly what it says – it allows teams to find the cause of a problem at its root so that they can find solutions which work for the long-term, rather than acting as a band-aid.  The best way to do this is to follow the Five Whys, keep asking ‘Why’ at least five times until you get to the root.

Before you undertake an RCA there are a few things to bear in mind – firstly, it’s about finding a solution, so the focus is on what happened and how to solve it. If you remove any judgement or negativity towards people involved you’ll be able to ensure you have a real problem solving approach. Secondly, you need to make sure someone owns this and is responsible for ensuring a solution is agreed upon and followed through.

Here’s how to conduct your own Root Cause Analysis:

1)      Recap the issue.

Define a problem statement that focuses on what happened and not on the people involved. Be clear and impassioned and avoid bringing emotion in.

2)     Get all the perspectives.

How many teams or people played a part? What is their perspective? Look across all aspects of your business including people, operations, processes, product to make sure you capture everything.

3)     Use data to support your story.

This helps you understand the scale of the problem. With data you can see the impact on your customer or your business, be clear on whether it is a one-off or a recurring issue, how big it is and so on.

 4)     Undertake the Five Whys.

This will take you deep into the issue. Start by asking ‘Why’ and keep asking at least five times until you get to the root cause. Remember there can be more than one cause and you may be looking at a more complex root system rather than a single simple answer.  

5)     Agree on an action plan. 

Once you know the root, you can devise an action that will make sure it doesn’t happen again. Think clearly about how you avoid using human resource to solve the problem – how can you remove the risk of human error in your solution? Implement a process or a system wherever you can. This not only just enables you to mitigate further risk but it also enables you to scale for the long-term.

Ready to get started? Download a free Root Cause Analysis template here.

Strategic thinker. Brand builder. Creator. Collaborator. Working with start-ups and entrepreneurs to build brands, create marketing plans and find their point of difference. Get in touch to find out how I can help your brilliant ideas meet their potential.