Ctitical Thinking Techniques of Root Cause Analysis
1142 words 5 pagesCritical Thinking Techniques Used In Root Cause Analysis
Root cause analysis is a common term used by investigators and analysts that means different things to different people. However, in its most literal sense root cause analysis requires the performer to systematically break down a situation into individual components or processes in a search for truth that can be supported by facts (Eckhardt, 2007). This analysis should be conducted in the form of an investigation into both the apparent symptoms of a situation as well as the causes that led up to the situation being analyzed. As an example, if performed correctly, a police investigation will use root cause analysis to first determine what happened, and only after the event is …show more content…
Upon investigating the Quota Retirement Value (QRV) associated with each product code, I noticed that the higher-end products had seen an increase in revenue that rose more sharply than the lower-end products on a per unit basis. While this is normal to an extent due to a delta value (new QRV – old QRV = Delta QRV) being paid for product upgrades, I noticed that there seemed to be sharper inclines than what were typical for each product set. This discovery let me to narrow my focus to products that were sold only as upgrade sales. An example of an upgrade that would pay a delta could be described as follows: A customer who subscribed to a certain product may choose to upgrade to a higher cost product This sale would be credited to the representative at a delta rate as described above. These sales are valuated based on delta tables that are maintained in the compensation system that used to determine sales quota attainment for each compensation plan participant.
As I reviewed the delta tables that were provided to me in Excel format, I noticed that products that had been retired or replaced with new products were listed with a QRV of $0 since these products no longer retired quota. The problem caused by changing the valuation to $0 was that there an overstatement of sales revenue for each upgraded unit when the product being removed was