Leading An Accounting Firm

Appendix B:Four Whys

The four whys tool is helpful to identify root causes of recurring problems, so they may be addressed and the problem finally eliminated. Often, the tendency exists to address the symptoms of the problem or apply a “bandage” solution, only to find that the problem still exists. Applying the four whys tool to a problem ensures the desired long-term results.

Steps to Four Whys

1. Select a recurring problem.

2. Ask, “Why did the problem occur?”

3. Take the answers identified in step 2 and ask, “Why did they occur?”

4. Continue delving into the problem by asking why until you’ve identified multiple root causes to the originally identified problem.

5. Brainstorm and implement solutions to a subset of the root causes. Select the root causes that

a. most likely contribute to the problem.

b. most often contribute to the problem.

c. are within your span of control to correct.

6. Monitor the situation to determine whether the problem has subsided and to what extent.

Examples of Four Whys

Problem: Work is repeatedly completed over budget.Why? (root causes in bold)

Employees are doing more work than they should. Why?Processes are inefficient.

Employees do not understand the scope of the engagements. Why?Engagement letters are vaguely worded.Engagement budgets are not set.Engagements are rotated among employees.Engagements are rarely discussed with employees at the outset.

Employees do not see the engagement letters. Why?Engagement letters are not kept with the work.Clients ...