Business owners too often confuse cause and effect and expend significant effort solving the wrong problems. Therefore being able to identify the real problems that the business faces vs false problems are paramount for every business to clearly understand.
As I write this blog post I can observe a windmill turning outside my office window. We all know that when the wind blows (cause), the windmill turns (effect). However, without going to a place where there are no windmills and observing that the wind still blows, one might assume the turning of the windmill causes the wind to blow, in the same way, that a fan creates wind.
In another example, many people, including my wife who grew up in a farming community in Nebraska, still believe that because their joints ache when it rains, that rain causes their aches and pains. Scientists believe the truth behind this old wives’ tale lies not in the rain but in barometric pressure. Barometric pressure falls when the air rises. Moisture in the air gets cooler as it rises. The moisture then condenses into clouds that may cause rain.
Therefore, clouds and rain are the effects of falling barometer pressure. Falling barometric pressure also reduces the air pressure around joints, allowing joints to swell. Some believe this increases joint pain. The falling barometric pressure creates clouds and rain AND is most likely the cause of joint pain. It is not the rain that causes joint pain; rain and increased joint pain are both effects of falling pressure.
Experiments and observations must be made to accurately determine cause and effect relationships. A simple correlation does not imply causation. Business owners often focus on the symptom of the problem and not the root cause.
A tool that can help business owners to separate cause from effect is known as a fishbone diagram.
There are six steps to using a fishbone diagram to clarify cause and effect.
Problem identification and description – Include in your description of the problem its magnitude, the business areas affected and list some reasons why.
Brainstorm the main cause of the problem – The goal is to try to identify the root cause of the problem. Analyze the obstacles in terms of equipment, procedures, people, and/or materials.
Breakdown each main cause into sub-causes – For each cause add some details (the whys) that contribute to the cause. IE high bounce rates may be a result of slow load times.
Analyze the diagram – Look for the most critical items and list them the order of most urgent to least urgent.
Develop an action plan – Define the necessary remedies to resolve the problem and take action.
Are you guilty of assuming false cause and effect relationships in your business?
