Ever been around that kid (or annoying adult) that asks “why” to everything you say?  I was that kid, and still am today.

There is a great technique used to diagnose problems or investigate issues known as the “5 Whys”.  It’s best explained with an example.

  • The car will not start. (the problem)
  1. Why? – The battery is dead. (first why)
  2. Why? – The alternator is not functioning. (second why)
  3. Why? – The alternator belt has broken. (third why)
  4. Why? – The alternator belt was well beyond its useful service life and has never been replaced. (fourth why)
  5. Why? – I have not been maintaining my car according to the recommended service schedule. (fifth why, a root cause)

It seems silly but actually has a lot of practical applications.  Just pick a random problem and apply the 5 whys.

  • The economy is in shambles
  1. Why? – Because of a real estate bubble that popped.  (first why)
  2. Why? – People couldn’t afford their payments. (second why)
  3. Why? – Interest rates that were fixed became variable. (third why)
  4. Why? – Their mortgages were sold to them that way. (fourth why)
  5. Why? – Mortgage brokers were able to place people into homes they couldn’t normally afford. (fifth why, a root cause)

This illustrates 2 points.  The first is that the 5 whys can be used for a variety of situations.  The second, and most important, is that while the 5 whys can help you come to a root cause, it is just that – ONE root cause.  Not THE root cause, A root cause.

So give it a shot.  Try it with something simple, or something complex.  You may end up with a root cause in just 3, or it might take 6.  Sometimes I end up in an endless loop between 2 whys.  Practice makes perfect.

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  By 		The Weakonomist is the founder of Weakonomics. Clicking the picture of the puppy will tell you more about him. If you like what you're reading consider subscribing to the blog, following him on Twitter, and checking out the related posts below. Please consider a donation if you really enjoy Weakonomics. Also keep in mind that nothing I say can be construed as financial advice.

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