Fishbone Cause and Effect Analysis and Example - Simplest Explanation Ever

Fishbone Cause and Effect Analysis Tutorial

Introduction to Fishbone Diagram

• The tutorial introduces the concept of Fishbone cause and effect analysis, emphasizing its importance in resolving business problems effectively.

• The Fishbone diagram, also known as the Ishikawa or Herringbone diagram, is a tool that visualizes potential causes of a problem to help identify root causes.

Steps in Creating a Fishbone Diagram

Step 1: Identify the Specific Problem

• Correctly identifying the specific problem is crucial for effective resolution; vague problems hinder solution efforts.

• Example provided: A small company's online sales have fallen, with phone sales dropping by 20%, which becomes the specific issue to address.

Step 2: Determine Categories of Causes

• Management identifies three categories influencing phone sales: people, telephone prompts, and technology.

• It's recommended to limit cause categories to fewer than ten for simplicity; brainstorming with involved personnel can aid this process.

Identifying Actual Causes

Step 3: Analyze Each Cause Category

• Brainstorming helps identify actual causes within each category. Sub-causes may branch from these actual causes.

• For "people," issues include new salespersons not closing deals and difficulties in following up due to leads being documented poorly.

Detailed Causes Under Each Category

• People:

• New salesperson struggles with closing deals.

• Sales team has trouble following up on leads due to documentation issues.

• Leads are recorded on spreadsheets instead of using a lead management system.

• Telephone Prompts:

• Prompts are repetitive and hard to navigate.

• Inefficient prompts with an unwelcoming voice deter customers.

• Technology:

• Website does not display phone numbers on every page.

• Site lacks mobile-friendliness.

Finalizing the Fishbone Diagram

Step 4: Action Planning Based on Analysis

• After mapping out all identified causes onto the diagram, action planning begins to address these issues effectively.

• Action plans should outline who needs to do what by when and how success will be measured (e.g., conversion reports).

Example Action Plan Implementation

• For instance, if a new salesperson isn't closing deals:

• They need to meet with the sales director for training options by February 21st, measured through conversion reports due June 20th.

• This structured approach ensures accountability and clarity in addressing identified problems.

This markdown file summarizes key concepts from Mr Simplify's tutorial on Fishbone cause and effect analysis while providing timestamps for easy reference back to specific parts of the video content.

Sales Management Software and Process Improvements

Exploring Sales Management Solutions

• The IT manager is tasked with exploring sales management software that includes client follow-up features to enhance efficiency in the sales process.

• A deadline has been set for a review meeting in March to ensure the completion of this task.

Telephone Prompt Review

• The current telephone prompt system is described as repetitive and difficult to navigate, prompting a need for structural review by one of the directors.

• There is a specific deadline for reviewing the structure of the telephone prompts, followed by another meeting to assess progress.

Addressing Unpleasant Prompts

• Concerns have been raised about the unpleasant nature of the telephone prompts, necessitating brainstorming sessions for improvement.

• A follow-up email will be sent post-review to ensure all team members are aligned on changes.

Website Functionality Issues

• The website currently lacks phone numbers displayed on each page, which is critical for an online business; thus, urgent action from the marketing associate is required.

• An initial discussion with the website agency has a tight deadline due to its importance, while making the site mobile-friendly will require more time and planning.

Action Plan Development

• An action plan has been established to address these issues systematically and prevent future occurrences.

Creating a Fishbone Diagram

Tools for Diagram Creation

• Various tools can be utilized for drawing a Fishbone diagram, including SmartDraw or basic applications like Word or PowerPoint.

• The focus should remain on brainstorming causes rather than complicating the diagram's design.