What technique categorizes the causes of business issues and identifies potential solutions?

The fishbone diagram, also known as the Ishikawa or cause-and-effect diagram, is a visual tool used to categorize and analyze the potential causes of business issues. By breaking down the various aspects contributing to a specific problem, the fishbone diagram helps stakeholders explore not only the symptoms but also the underlying causes of those issues.

In a fishbone diagram, the main problem is placed at the head of the "fish," and several categories of potential causes branch off like bones. This structure allows for a systematic examination of causes related to different categories, such as people, processes, materials, and environment. Consequently, once the causes are identified and analyzed, potential solutions can be developed and prioritized based on their impact or feasibility to address the core issues.

This technique is particularly valuable in environments where complex problems require a collaborative approach, enabling teams to engage in brainstorming and discussion that can lead to actionable insights. Understanding the relationships between causes and effects facilitates deeper problem-solving and solution identification, making the fishbone diagram an essential tool in business analysis.