Root-Cause Analysis

A root-cause analysis is used to identify the initiating, or root, of a causal chain that leads to an observed undesirable outcome. It is useful in helping managers to focus their problem-solving efforts on providing remedies to issues that actually prevent the undesirable outcome from recurring. Failure to identify the root cause of a problem often leads to time spent on removing causal factors, which can alleviate the symptoms of a problem yet may not prevent recurrence with full certainty. This chapter discusses the underlying theory, core idea, depiction, process, insight or value created, and risks and limitations of root-cause analysis. The chapter also discusses the illustration of the DISH Network and applies the steps of root-cause analysis to this case.