The Five Whys

As a leader, you have likely encountered problems that won’t go away no matter how you try to fix them. You may have tried different solutions, but they all seem inadequate. Systems thinking is the ideal approach to problem-solving that looks at the big picture and the interconnectedness of various elements within the system. One of the core techniques of systems thinking is the Five Whys, a simple but powerful tool that gets to the root cause of a problem.

The Five Whys technique was developed by Sakichi Toyoda, the founder of Toyota Industries, and was later incorporated into the Toyota Production System. The method became famous for its effectiveness in identifying the root causes of manufacturing issues, leading to more efficient and reliable production processes. Over time, the technique's simplicity and power made it popular beyond the manufacturing sector.

Steps to Implement the Five Whys

1. Identify the Problem: Clearly define the problem you want to solve.
2. Ask the First Why: Ask why the problem occurred.
3. Ask Four More Whys: Continue to ask why until you reach the root cause.
4. Take Action: Develop and implement solutions to address the root cause.
5. Review: Monitor the solutions' effectiveness and make necessary adjustments.

Pitfalls and How to Avoid Them

Superficial answers disrupt the effectiveness of the Five Whys technique. When asking "why," it is easy to stop at the first or second layer of questioning, which yields only surface-level insights. To avoid this, commit to digging deeper with each "why" to reach the true root cause of the problem. For example, if a manufacturing defect occurs, do not stop at the first explanation, such as "the machine malfunctioned." Continue to ask why the machine malfunctioned, why it was not maintained, and so on, until the fundamental issue is revealed, such as inadequate maintenance protocols or insufficient training for the operators.

Blame culture derails the Five Whys process. In environments where employees fear repercussions, they won’t provide honest answers, instead blaming colleagues or external factors. To counter this, transparency and accountability within the leadership team must be demanded. Encourage everyone to focus on identifying and solving systemic issues rather than assigning blame. For instance, examine the processes and support structures when a project fails rather than replace the project manager. Was the timeline realistic? Were the resources adequate? Addressing the root causes creates a more constructive and solution-oriented environment.

Incomplete implementation of the identified actions will lead to continued problems. Once the root cause is identified, developing a comprehensive action plan and following through with it is non-negotiable. Set clear objectives, assign responsibilities, and monitor progress. For example, if the root cause of customer dissatisfaction is slow response times, an action plan might include hiring additional support staff, introducing response time metrics, and regularly reviewing performance. The effectiveness of these measures must be monitored, and adjustments made as necessary.

Consider these scenarios to illustrate further the importance of addressing these pitfalls. The team investigates the cause of recurring bugs in a software development company. The team identified that the bugs were due to insufficient testing, so the company hired additional quality assurance engineers. However, the implementation is incomplete because the developers continue to work without structured testing procedures. The initial step of hiring more staff is a positive move, but without complete implementation, such as establishing standardized testing protocols and providing training, the problem persists.

Similarly, in a customer service setting, an organization finds that customer complaints are frequently related to the late delivery of products. The first "why" reveals that the delivery update software is slow, so drivers aren’t receiving prompt notifications of route changes. Asking another “why” shows that the company hasn’t upgraded its network speeds and is operating below industry-standard bandwidth speeds.? Asking further "whys" uncovers that a single person manually updates the platform leading to inefficiencies. If the company decides to invest in increased network speeds but does not follow through with automation upgrades or additional staff, the delivery issues will continue.

Circling back to the original problem is a red flag in the Five Whys process. If an answer to one of your "whys" leads back to the initial problem, it indicates that the questioning path is incorrect or an answer along the way was inaccurate.

Why are we not completing our studies as quickly as other companies? Because we only have one person working on them and they have other responsibilities. Why is there only one person working on them who is overburdened? Because we don't have enough people. Why don't we have enough people? Because we don't have enough capital to hire more. Why don't we have enough capital? Because investors aren't interested in funding us. Why aren't investors interested? Because we haven't completed any studies.

This loop returns you to the original problem without finding a root cause. Instead, try a different path.

Why are we not completing our studies as quickly as other companies? Because we only have one person working on them and they have additional responsibilities. Why is there only one person working on them who is overburdened? Because they won't let other people help. Why won't they let other people help? Because they believe they are the only person who can do it. Why do they think this? Because they have trust and control issues.

This path leads to a root cause that can be addressed with actionable steps, such as reassigning workload to other stakeholders. It avoids endless loops and provides practical solutions to underlying issues.

Ask Why Scenarios

Your sales have declined over the past few months.

Why 1: Why have our sales been declining?

Answer: Our products are no longer popular with customers.

Why 2: Why are our products no longer popular with customers?

Answer: Our competitors are offering more innovative and lower-priced products.

Why 3: Why can't we offer more innovative and lower-priced products?

Answer: Our manufacturing costs are too high.

Why 4: Why are our manufacturing costs too high?

Answer: We have yet to invest in new technology to improve automation and reduce costs.

Why 5: Why have we yet to invest in new technology?

Answer: We've been focused on short-term profits and have yet to make a case for long-term investment.

A hospital is experiencing a high rate of patient readmissions.

Why 1: Why are we experiencing a high rate of patient readmissions?

Answer: Patients are not following their treatment plans.

Why 2: Why are patients not following their treatment plans?

Answer: They are confused about their medications.

Why 3: Why are they confused about their medications?

Answer: They are receiving conflicting information from multiple healthcare providers.

Why 4: Why are they receiving conflicting information?

Answer: Our healthcare providers are not communicating effectively with each other.

Why 5: Why are our healthcare providers not communicating effectively?

Answer: There is no standardized process for sharing patient information between providers.

Quality Control

When a product fails to meet quality standards, asking why five times reveals the root cause.

• Why did the product fail? Because the component broke.
• Why did the component break? Because it was not manufactured to the required specifications.
• Why were the specifications not met? Because there was a flaw in the manufacturing process.
• Why was there a flaw in the process? Because the equipment was not calibrated properly.
• Why was the equipment not calibrated properly? Because there was a lack of maintenance and monitoring protocols.

Workplace Safety

Investigate an accident or near-miss incident by asking why five times to prevent future occurrences.

• Why did the worker fall from the ladder? Because they lost their balance.
• Why did they lose their balance? Because the ladder was unstable.
• Why was the ladder unstable? Because it was missing rubber grips on the feet.
• Why were the grips missing? Because the maintenance checklist did not include inspecting or replacing them.
• Why was the checklist inadequate? Because it hadn't been updated to include essential safety checks.

Project Delays

When a project falls behind schedule, using the "ask why five times" technique uncovers the underlying causes

• Why is the project delayed? Because the critical task wasn't completed on time.
• Why wasn't the task completed on time? Because the team lacked the necessary resources.
• Why did the team lack resources? Because the budget allocation was insufficient.
• Why was the budget allocation insufficient? Because the project scope was underestimated.
• Why was the project scope underestimated? Because there was a lack of detailed requirements for gathering.

Customer Complaints

Resolving recurring customer complaints is achieved by asking why five times to identify the root cause.

• Why are customers experiencing frequent billing errors? Because the billing system is generating incorrect invoices.
• Why is the billing system generating incorrect invoices? Because the software update introduced a bug.
• Why did the software update introduce a bug? Because it wasn't adequately tested before deployment.
• Why wasn't it adequately tested? Because the testing team had limited time and resources.
• Why were time and resources limited? Because the project schedule was overly ambitious.

Employee Turnover

Addressing high employee turnover requires understanding the underlying reasons.

• Why are employees leaving the company? Because they feel undervalued and unappreciated.
• Why do they feel undervalued and unappreciated? Because there is a lack of recognition and career growth opportunities.
• Why is there a lack of recognition and career growth opportunities? Because the performance evaluation system is not transparent or aligned with employee development.
• Why is the performance evaluation system flawed? Because managers have inadequate training in providing feedback and supporting employee growth.
• Why do managers lack training? Because the organization has not prioritized investing in managerial development programs.

Decreased Sales Performance

• Why are sales declining? Because the number of leads generated has decreased.
• Why has the number of leads decreased? Because the marketing campaigns are not effectively targeting the right audience.
• Why are the marketing campaigns not effectively targeting the right audience? Because the customer personas and market research are outdated.
• Why are the customer personas and market research outdated? Because customer preferences and market trends have not been comprehensively analyzed and updated.
• Why hasn't there been a comprehensive analysis and update? Because there is a lack of dedicated resources and expertise in market research.

Low Conversion Rates

• Why are the conversion rates low? Because the sales team is struggling to communicate the value proposition effectively.
• The sales team is struggling with value proposition communication because they haven't received proper training on product knowledge and sales techniques.
• Why haven't they received proper training? Because there is no formal sales training program in place.
• Why is there no formal sales training program? The organization has not recognized the need for ongoing skill development and training for the sales team.
• Why hasn't the organization recognized the need for ongoing skill development? Because there is a lack of awareness about the impact of training on sales performance.

Customer Churn

• Why are customers leaving? Because they are not receiving adequate post-sales support.
• Why is the post-sales support inadequate? Because there is a lack of a structured customer success program.
• Why is there no customer success program? The organization has not invested in building a dedicated team to focus on customer satisfaction and retention.
• Why hasn't the organization invested in a dedicated team? The short-term focus is on acquiring new customers rather than nurturing existing ones.
• Why is there a short-term focus on acquiring new customers? Because the sales compensation structure is based on new customer acquisition rather than customer retention.

Pricing Complaints

• Why are customers complaining about pricing? Because they perceive the product as overpriced.
• Why do they perceive the product as overpriced? Because they don't see the value it provides compared to competitors.
• Why don't they see the value compared to competitors? Because the sales team is not effectively communicating the unique selling points and competitive advantages.
• Why is the sales team not effectively communicating? Because they lack in-depth knowledge about the product's features and benefits.
• They lack in-depth knowledge because there is no formal training and knowledge-sharing mechanism within the organization.

Declining Market Share

• Why is our market share declining? Our competitors have introduced innovative features to their products.
• Why haven't we introduced innovative features? Because our R&D budget has been consistently reduced over the years.
• Why has the R&D budget been reduced? Because senior management prioritizes short-term cost-cutting over long-term innovation.
• Senior management prioritizes cost-cutting because they are under pressure to meet quarterly financial targets set by investors.
• Why are investors focused on short-term financial results? Because we haven't effectively communicated the long-term growth potential of our innovative products.

New Product Launch Failure

• Why did our new product launch fail? Because we didn't adequately assess the market demand and customer needs.
• We didn't assess market demand and customer needs because we relied on internal assumptions rather than conducting thorough market research.
• We rely on internal assumptions because we lack a structured process for gathering and analyzing external market data.
• Why didn't we have a structured process for market data analysis? There was a lack of dedicated resources and expertise in market research.
• Why was there a lack of resources and expertise? Because we didn't prioritize building a market research function within the organization.

Ineffective Strategic Partnerships

• Why are our strategic partnerships not generating the expected benefits? Because there is a lack of alignment in goals and mutual value creation.
• Why is there a lack of alignment in goals and value creation? We haven't conducted comprehensive due diligence and negotiation during the partnership selection.
• Why haven't we conducted comprehensive due diligence and negotiation? Because we lack a standardized process and criteria for evaluating potential partners.
• Why don't we have a standardized process for partner evaluation? Because there is a lack of awareness about the strategic importance of well-aligned partnerships.
• Why is there a lack of awareness about strategic partnerships? We haven't effectively communicated the long-term benefits and success stories.

Competitive Disruption

• Why are our competitors disrupting our market position? Because they have adopted new technologies and agile business models.
• Why haven't we adopted new technologies and agile models? Because there is resistance to change and a lack of investment in innovation.
• Why is there resistance to change and a lack of investment? Because the organizational culture doesn't foster a culture of experimentation and continuous improvement.
• Why doesn't the organizational culture support experimentation and improvement? Leadership has not actively promoted a culture of innovation and learning.
• Why hasn't leadership promoted a culture of innovation? Because they haven't recognized the importance of adapting to rapidly evolving market dynamics.