From chaos theory to marketing analytics, humans’ innate search for meaning often revolves around cause and effect. For every experience, we seek to know the cause. For every action, we want to foresee the consequences or effects.
This is especially common in the business world, where every job is a series of tasks that come together, meaning that when one goes wrong, the whole thing falls apart like a deck of cards.
To avoid this, business leaders and project managers use a tool called a cause-and-effect diagram, which correlates the triggers and reasons for certain events .
In this blog post, we will explore how you can use these cause and effect diagrams in your organization to solve complex problems.
What is a cause and effect diagram?
A cause-and-effect diagram is a visual representation of the potential causes of a given event. The diagram assumes that each cause (i.e. deviation, imperfection, or error) is a source of variation in the final outcome.
In simpler terms, if you add two cups of sugar to your coffee instead of the owner/ partner/ shareholder email list recommended two tablespoons (a mistake), you'll have a drink that's too sweet! If you add too much milk (a deviation), you'll have a coffee that's too weak.
Devised by renowned organizational theorist Kaoru Ishikawa in the 1920s, cause-and-effect diagrams, also called fishbone diagrams or Ishikawa diagrams, are powerful tools for systems thinking . They help to understand and effectively manage complex industrial processes.
Sample Ishikawa diagram
Ishikawa diagram
Importance of cause and effect diagrams
In essence, a good cause and effect diagram separates the wheat from the chaff. It clearly identifies the contributing factors, leaving everything else out. It can be a great tool for solving problems across all industries.
In business, especially in product development, teams use the fishbone diagram to explore the root causes of an unexpected event.
For example, if an unplanned outage occurs, the IT operations team can use the fishbone diagram to understand all the contributing factors before identifying the actual cause.
In project management, the fishbone diagram is often used in resource planning. Project managers simulate versions of the expected outcome based on a combination of causal factors, such as people, processes, and technology.
In quality control, as Ishikawa intended, teams expose contributing factors, such as measurements, material, people, processes, machines, etc., to identify the cause of the defective result.
In all sectors, the advantages of cause and effect diagrams are indisputable.
Clarity : Understanding the various intersecting factors that cause a defect or event to occur
**Speed Accelerate problem resolution based on a thorough correlation of all related elements in the process
**Effectiveness Ability to simulate the possible results of changes introduced in the process and adapt accordingly
**Effectiveness Delimiting causes and symptoms to understand what is really happening
How to use a cause-effect diagram to solve problems
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