The Fishbone Diagram is a diagram-based technique used in brainstorming to identify potential causes for a problem, thus it is a visual representation of cause and effect. The problem or effect serves as the head of the fish. Possible causes of the problem are listed on the individual “bones” of the fish. This encourages problem-solving teams to consider a wide range of alternatives.
Understanding the Fishbone Diagram
A Fishbone Diagram is simply a visual representation of cause and effect. The problem or effect serves as the head of the fish.
Possible causes of the problem are listed on the individual “bones” of the fish and where possible, are grouped into categories on each bone.
Through the use of categories, Fishbone Diagrams encourage problem-solving teams to consider a wide range of alternative, less-obvious causes.
Cause and effect diagrams can also:
Help businesses understand where or why a process is not working.
Be used in product development where the product concerned is intending to solve a consumer problem.
Identify potential problems before they arise, such as the teething problems associated with new product launches.
For example, Mazda used the Fishbone Diagram to design their now iconic MX-5 sportscar.
Engineers even used the diagram to identify that the current design of the door would not allow the driver to rest their arm on it while driving.
How to use the Fishbone Diagram
Using the Fishbone Diagram in practice is relatively simple, but the technique is nevertheless a powerful way to unearth causes to problems.
Teams of employees should follow this 5-step process:
Define the problem, and then write it at the mouth of the fish
The problem itself should as clear and concise as possible. Make sure there is an agreement between all team members before proceeding.
Define the categories of causes, and then write them along the bones of the skeleton of the fish
Categories will vary from industry to industry, but common categories include the environment, procedure, human resourcing, and equipment.
Brainstorm potential causes
Begin with the question “Why does this happen?” and then write each response as a branch of the relevant category.
Probe further
For the answers gleaned in step 3, ask the same question once more. These “sub-causes” can be written as secondary branches and are particularly important for large or complex causes that need further investigation.
When the group has run out of ideas, it’s time to investigate the causes in more detail.
Look for causes that appear more than once but with slightly different wording.
Employee or consumer surveys can also be used to verify the validity of particular causes.
Fishbone Diagram best practices
Creative a diverse team
Although the temptation may be to create a team who has direct experience with the problem, it’s more beneficial to include other employees too.
Outside employees who do not directly deal with the problem can bring a balanced, unbiased, and objective stance.
Clarify the major cause categories
In business and marketing, the 8 Ps of product marketing is a good place to start. In other words: product, price, place, promotion, personnel, process, physical evidence, and performance.
Keep it (relatively) simple
Fishbone Diagrams with many potential causes quickly become cluttered and confusing. Consider asking each member of the team to vote for their four most probable causes.
From there, choose the four categories that received the most votes and begin the process.
Fishbone diagram examples
Supermarket chain
In the first example, consider a supermarket chain that wants to determine the probable causes of items that are delayed, damaged, or incorrect once delivered to its stores.
On the fishbone diagram, the team describes the main problem at the mouth of the fish.
They write the following: “Items that are incorrectly picked in the warehouse, experience delayed delivery, or are damaged in transit”.
Next, the team defines five problem cause categories and answers the question “Why does this happen?” for each:
Materials – improper packing material, wrong product received from warehouse or from supplier.
Personnel – product mishandling, negligence, human error, a shortage of truck drivers.
Measurements – incorrect delivery time estimate.
Environment – heat, humidity, and rain damage, poor road quality.
Machines – improper delivery vehicle, improper use of a forklift to unload items, faulty or unreliable inventory management system.
As per step three in the process, the team then probes further by asking the question of “Why does this happen?” once more to identify sub-causes.
For example:
Improper packing material – cheaper materials are used to save time and money.
Product mishandling – employees are not trained in the correct way to handle stock and, in any case, are not motivated to protect company property.
Incorrect delivery time estimate – deliveries are sent out during peak hour traffic, which frequently causes delays.
Heat damage – perishable items such as chocolate are not transported in trucks with refrigeration.
Unreliable inventory management system – old, outdated, and not upgraded due to cost constraints.
Software subscription
In the second example, let’s repeat the process with a software company that realized 55% of its users were canceling their subscription after the first month.
With the core problem identified, the team then considered the processes that were likely contributing to the issue.
Four key areas were identified, with some theoretical problem causes listed for each:
Users – a lack of awareness concerning the full benefits of the software, lackluster customer support, user onboarding problems, and a tendency to not use the software consistently.
Software – software is difficult to use, software is buggy or unstable, installation requires several additional plugins, and full functionality requires additional payment.
Subscription system – a lack of payment options, credit card expiry dates voiding automatic renewal, a lack of reminders that payment is imminent, and a payments interface that is not user-friendly.
Marketing – the absence of relationship marketing initiatives, a lack of rewards or incentives for repeat subscribers, and the ability to keep the product or service top-of-mind among consumers.
Now let’s take a look at some potential sub-causes that the team must then evaluate to determine how each affects customer retention:
Lackluster customer support – inadequate training of the customer support team.
Software usability issues – the product was rushed to market before it was ready.
A lack of reminders that payment is imminent – a somewhat outdated belief that businesses should not contact customers unnecessarily.
The absence of relationship marketing initiatives – an inexperienced marketing team that does not realize the power of relationship marketing as a tool to foster customer retention.
Key takeaways
The Fishbone Diagram is a root cause analysis that assists in accurately identifying the causes of an effect, event, or problem.
The Fishbone Diagram is a collaborative and thorough five-step process involving teams of employees.
To be effective, the Fishbone Diagram technique requires a diverse range of perspectives and the ability to correctly identify the most likely causes.
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Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
