Introduction to

Problem Analysis

Dr. Elijah EzenduFIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM,

PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC, CMgr

Learning Objectives

At the end of the course, participants should be able to do the following:

• Identify importance of problem analysis• Identify workable model for problem analysis• Apply multiple techniques of problem analysis in

ascertainment of key causes• Use problem analysis to increase effectiveness of

managerial capacity

Problem Analysis is used to find the cause of a positive or negative deviation. When people, machinery, systems, or processes are not performing as expected, Problem Analysis points to the relevant information and leads the way to the root cause. The process is used to gather and analyze just the information needed to find and correct the true cause of a problem, making it particularly effective in today’s data-rich environment. This promotes rapid and accurate issue resolution.

Source: Kepner-Tregoe

“Problem analysis can be defined as dissecting and thoroughly studying a problem with the objective to understand how the problem emerged and how it grew to its current proportions.”

- Coert Visser

“It is the theory through which we observe a situation that decides what we can observe.”

- Einstein

Importance of Problem Analysis

• Problem Analysis is a prime competence requirement for every worker.

• Problem Analysis Skill is an irreducible Analytical Literacy level for every work position.

• Problem Analysis Mastery is compulsory for Leaders of teams, units and departments.

Types of Organisational Problems• Technical Problem• Process Problem• Policy Problem• Functional Problem• Cultural Problem• Structural Problem• Procedural Problem• Capacity Problem• People Problem• Location Problem• Materials Problem

Approaches in Problem Analysis

Phenomelogical/ Social ConstructivistThis involves shedding light on assumptions and definitions based on value.

Positivist/ FunctionalisticThis is a fact-finding approach that focus on ascertainment of cause and effect.

Model of Problem Analysis

Verifying Subject of Analysis

This should be performed by engaging the stakeholders by means of the following:

• Interview• Meeting• Observation

Identification of Problems Related to Subject

• Brainstorming• Lateral thinking• Mind mapping• Structured inquisition

Major Techniques of Problem Analysis

Force Field AnalysisFishbone AnalysisCause and Effect TrailCritical Incidence AnalysisFive WhysInterrelationship Digraph

Force Field Analysis

Developed by Kurt Lewin.It’s based on the concept of dynamic balance of

helping (driving) and hindering (restraining) forces, emphasizing that problem will only occur when there’s imbalance between them.

Applying Force Field Analysis 1

Structuring the Forces

• Identify a problem• Identify a better situation• Use brainstorming to identify driving and restraining forces • List the driving forces on opposite side of the restraining

forces• Score each force on a scale of 1 to 5 in terms of ease of

change (5 = easiest, 1 = hardest)• Identify aggregate on each side (the highest are easier to deal

with, while the lowest are more difficult to deal with)

Applying Force Field Analysis 2

Strategies for Solution

• Changing strength of a force• Changing direction of a force• Remove some hindering forces• Increase the number of helping forces

Example of Force Field AnalysisThe management of Odegbami Mills observed that there’s a high rate of staff

turnover. Force Field Analysis was used to analyse the problem as follows.

Intensive Poaching

Restraining Forces

Driving Forces

Low industry average salary

Poor employee

morale

No future for employees at the top level

owner is ready to allow employees to ascend to top

Profitability level allows for increase

in salary

New employee

engagement programmes

Career path analysis is

interesting to employees

Ideal SituationStaff turnover is atenth of its current level

Current SituationStaff turnover is dreadfully high

Source: Elijah Ezendu, Benchmarking

Fishbone Analysis

This was developed by Dr. Kaoru Ishikawa.It’s a methodical way of determining the causes

that contribute to an identified effect. It’s also known as cause and effect analysis.

Applying Fishbone Analysis1. Draw the fishbone diagram2. List the problem at the head of that fish3. Label each bone of the fish in one of the following format

- 4 P’s (Place, Procedure, Policies, People)- 4 M’s (Manpower, Materials, Methods, Machines)- 4 S’s (Suppliers, Skills, Surroundings, Systems)- PEMPEM (plant, equipment, materials, people, environment, methods)

4. Use brainstorming to identify factors in each category that are causes of the problem

5. Use brainstorming to identify sub-factors under each factor6. Identify the main causes

Example of Fishbone AnalysisThe Intelligence Unit of Ndubuisi and Sons Limited identified customer dissatisfaction

and linked it to its causes as follows:

Customer Dissatisfaction

Manpower Materials

Machines Methods

Poor customer service skill

Lack of training

Absence of customer-centricityadvocacy team

Low quality

Non-availability of local manufacturer

Frequent corrective maintenance

Non suitability to some products

Defective cross-functional Processes

High level of waste

Non-value adding work-flows

Source: Elijah Ezendu, Benchmarking

Cause and Effect Trail

This is a diagram that shows the interrelated causes of a problem and enables the identification of the key cause.

Applying Cause and Effect Trail

1. List the Effect or Problem at the centre2. Identify and list the causes of that problem

around it3. Use a line from a cause to its effect, placing

arrow towards the effect4. Trace out intervening steps, wherein cause

leads to another.

Example of Cause and Effect TrailThe Performance Manager of Olutayo Industries conducted enterprise-wide analysis

and found out the causes of low employee performance which he depicted using the cause and effect trail as shown below:

Low Employee

Performance

Uncompetitive Pay

Lack of Performance Incentives

Absence of Flexible Work System

Poor Team Work

Problematic Software

Skill Shortage

Poor Communication

Non Alignment of Employee & Organisational Objectives

Improper Job Design

Poor Learning StandardLack of Clear Career Progression

Delayed Promotion

Environmental Factors

Dismal Diversity

Leadership Style

Poor Work-Life Balance

Low Professionalism

Low Value for Employees

Poor Intrapreneurship

Troublesome Organisational Structure

Poor motivation

Improper empowerment

Segregation Between Top Management and Other Employees

Obsolete equipments

Source: Elijah Ezendu, Problem Analysis

Critical Incidence Analysis

This is a method of problem analysis through identification of the total activities of a problem by engagement of people from various parts of a firm’s value chain.

Applying Critical Incidence Analysis• Identify complete activity of a problem • Appoint participants from various areas of the firm’s value

chain• Place them in three or four groups• Let each group state the key points about each process step,

noting the good and bad occurrences• Then transfer the statement of each group to another, for

identification of log jams• Collect the remarks of each group and compile to obtain the

final report of log jams.• Identified log jams can be subjected to further analysis using

Five whys, Fishbone Analysis or Cause and Effect Trail

Five Whys

This problem analysis technique was developed by Sakichi Toyoda for probing further and further into an identified problem, so as to trace the line of causality through diverse levels of effects to the key cause.

Applying Five Whys

• Identify the problem• Tender the first why• Tender the second why, probing into the first why• Tender the third why, probing into the second why• Tender the fourth why, probing into the third why• Tender the fifth why, probing into the fourth why• Ascertain the key cause

Interrelationship Digraph

This technique is used for tracing the interrelated factors in complex problems, with the aim of proving the relationships between those factors.

Applying Interrelationship Digraph

• Identify the problem• Place the problem at the centre• Identify and list the causes of that problem around it• Use a line from a cause to its effect, placing arrow towards

the effect• Count the number of arrows heading into and out of each

factor• Score each factor based on number of arrows heading

out/number of arrows heading into it• The factor with the highest number of arrows heading out is

the key cause factor

Uses of Problem Analysis

Performance Reengineering & OptimizationDecision-MakingOperational ExcellenceService ExcellenceBenchmarkingValue Based ManagementEffective Leadership ResolutionCompetitive Intelligence

Case Study

The management of John Codeliza International observed discrepancies in employee morale within the past 3 years. Due to its knack to remain at the top of competitive web in Nigeria, it demanded a repositioning of employee morale to be in convergence with the corporate brand profile. As a result, you were required to conduct a wide spectrum problem analysis in order to identify all the key causes of the dip in employee morale.

Dr Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise in Interim Management, Strategy, Competitive Intelligence, Transformation, Restructuring, Business Development, Marketing, Project Management, Cost Management, Leadership, HR, CSR, eBusiness and Software Architecture. He is currently CEO, Rubiini (UAE); Hon. President, Worldwide Independent Inventors Association; Special Advisor, RTEAN; Director, MMNA Investments Limited. He had functioned as Chair, Int’l Board of GCC Business Council (UAE); Senior Partner, Shevach Consulting; Chairman (Certification & Training), Coordinator (Board of Fellows), Lead Assessor & Governing Council Member, Institute of Management Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Lead Consultant/ Partner, JK Michaels; Turnaround Project Director, Consolidated Business Holdings Limited; Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Executive Director (Various Roles), Fortuna, Gambia & Malta; Director, The Greens; Chief Advisor/ Partner, D & E; Vice Chairman of Board, Refined Shipping; Director of Programmes & Governing Council Member, Institute of Business Development, Nigeria; Member of TDD Committee, International Association of Software Architects, USA; Member of Strategic Planning and Implementation Committee, Chartered Institute of Personnel Management of Nigeria; Country Manager (Nigeria) & Adjunct Faculty, Regent Business School, South Africa; Adjunct Faculty, Ladoke Akintola University of Technology; Editor-in-Chief & Chairman of Editorial Board, Cost Management Journal; Council Member, Institute of Internal Auditors of Nigeria; Member, Board of Directors (Several Organizations). He holds Doctoral Degree in Management, Master of Business Administration and Fellow of Professional Institutes in North America, UK & Nigeria. He's an author and widely featured speaker, who has been involved in developing Executive Programme Content for Universities. He also serves on Boards of Companies as Non-Executive Director.

Thank You