Notes

The Five Whys of Business Analysis and Strategy
"The Five Why's" was a cause and effect questioning methodology developed by Toyota to establish the root issue behind a specific problem. By continuing to ask "why" to each response, you'll be able to peel back the layers to get to the nub of the issue and build an enduring treatment for overcome it. The issue we all face now is how to increase performance when sales are falling and budgets are squeezed.

As the recession takes hold, organisations have responded by tightening their collective belts in a drive to cut their overhead and minimise their contact with the less sympathetic banks. Consequently, there is less overall around and sales have fallen with sectors fighting for what business there is by cutting margins, discounting and doing whatever they are able to to persuade the client to put their hands to their not so deep pockets.

The inevitable result is that organisations reorganise, and spending is scrutinised with budgetary autonomy reduced as FDs exert tighter controls. Easy money saving cuts include experiential marketing, internal communications and team development as discretionary spend is challenged and the enrichment of the message eroded. Additionally, organisations are reconfigured to the changed environment and that means job losses, merged teams and changed teams.

So let's ask "The Five Whys" for this hypothetical statement: "The performance of my team has dropped."

* Why: Our regular customers aren't buying from us like they used to and we're finding it difficult to find new customers.

* Why: Our people aren't engaged, giving it 100%. Individual targets are being missed.

* Why: Morale is low, were not communicating effectively, relationships aren't as strong because they used to be and that is effecting customer interaction and relationships.

* Why: Microsoft Data Analytics Power BI organised, less people, smaller budgets, same work load.

* Why: The focus is on cutting costs instead of optimising sales.

Business leaders are keenly aware of the need in these recessionary times to keep cost low and reduce overheads to match the economic cycle. Indeed, we have reorganised our own business and realigned ourselves towards new opportunities that have now emerged. But to avoid symptoms of PTCD (post traumatic change disorder), there are a few quick wins to obtain the performance curves pointing back an upwards direction:

* Re-engineer your teams addressing team effectiveness and leadership

* Re-engage with the clients with experiential marketing

* Re-incentivise your team with a meaningful reward scheme

Toyota's "Five Whys" is not a panacea nonetheless it will help crystallise a concern and effectively diagnose the issue. By having a clear understanding of what you want to attain (your objective) you can then begin the building of a solution (your plan). Both need contribution and purchase in from your people.
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