12/18/2017
1
Root Cause
Analysis For
Auditors
Elizabeth Frisch, CXO The Thrival Company [email protected]
512.656.7518 cell/ 512.301.1451 office
t. @elizabethfrisch LI. www.linkedin.com/in/elizabeth-frisch
www.elizabethfrisch.com / www.thrivalcompany.com
FB. Elizabeth Frisch Author
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Do you want free access to the online version
of this class?
To receive access to this class online 24/7,
TEXT ‘rootcause’ to 44222
Be sure to use all lower case and no spaces.
Get film of class and access to the LMS online 24/7 of this course in Q1 2018.
Course documents have been shared at:
https://www.dropbox.com/sh/imsn7drbx8880ud/AACxzYLQFtL_9oEa-bfUogc_a?dl=0
If you have any issues, email [email protected] and she can manually set you up in the system.
12/18/2017
2
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
How many of you have been trained previously in root
cause analysis? Which methods?
Introductionss
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Who do we
have in the
room
today?
• How many of you have seen me at
SAO or IIA events?
• Internal vs. External Auditors?
– Financial/Accounting
– Operational
– Environmental
– Compliance
– IT
– Others?
• What organizations are in the room?
12/18/2017
3
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
• 25+ years young ;o)
• Recovering Chemical Engineer cross
trained in OD/CM, business
performance and psychology
• Worked in 50+ industries, all levels of
government as
well as the U.S. Military and
NPOs/NGOs.
• Best Selling Author
• 1st performance and culture auditing
protocol developed in 2001
(before there was such a thing out
there ;o)
• Training auditors and capacity
building auditing firms since 2002
Elizabeth Frisch,
Founder and [email protected],
www.thrivalcompany.com
m. 512.656.7518,
o/f. 512.301.1451
t.@elizabethfrisch,
Linked-In/Facebook
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
How will
your
time be
spent?
• Part 1: Building your Foundation
• Part 2: Method Learning + Method Practice
– Start easy and ramp up as you go…
• Part 3: Review/Wrap-Up
• Participation is essential
– Working individually
– Working in groups
12/18/2017
4
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Action 1
If you could solve one
problem today using root
cause analysis, what would
it be?
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
The Evolution of Auditing
12/18/2017
5
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
What is the value
of auditing?
10Image license. Used with permission.
12/18/2017
6
12/18/2017
7
12/18/2017
8
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Audits
Ensure
Compliance ($)
Control Risk ($$)
Conserve Resources
Reduce Impacts ($$$)
Cost Avoidance
Save Money
Cost Avoidance
Why do Organizations Conduct Audits?
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
How many of you ARE REQUIRED to do
root cause analysis during audits?
12/18/2017
9
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
How many of you find
the same findings every year?
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
How many of you feel like without audits, the system would go to chaos?
12/18/2017
10
Standards
Written Procedures
Audit
Reality
How we actually
do businessAudit Life©2018. All Right Reserved. Thrival School LLC.
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
What is the missing value you could
as an auditor deliver?
12/18/2017
11
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
How many of you have been trained in
lean processes or six sigma methodologies?
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
AUDITORS ARE EXPECTED GIVE VALUE
AND BE PROBLEM SOLVERS…
• The root cause is the ultimate cause
• Ask yourself “Why”
• Short-term vs. long-term solutions
• Prevent recurrence
©2018. All Right Reserved. Thrival School LLC.
12/18/2017
12
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
AUDITING –
No. 1 offense -
Jumping to
conclusions
or leading others
to conclusions
©2018. All Right Reserved. Thrival School LLC.
12/18/2017
13
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
ROOT CAUSE STOPS BIAS
ROOT CAUSE YIELDS 360
ANALYSIS OF CAUSES
0
2
4
6
Category 1 Category 2 Category 3 Category 4
XYZ AUDIT
Series 1 Series 2 Series 3
Root cause
leads to better
and more
actionable
solutions
©2018. All Right Reserved. Thrival School LLC.
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
What really is the finding?
©2018. All Right Reserved. Thrival School LLC.
12/18/2017
14
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
TRADITIONAL AUDITS
ROOT CAUSE ANALYSIS
©2018. All Right Reserved. Thrival School LLC.
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Case Study 1:
Health and Safety Auditof Oil and GasFacility
©2018. All Right Reserved. Thrival School LLC.
12/18/2017
15
© 2002-2005. All
Rights Reserved.29
CORROSION ISSUES
©2015. All Right Reserved. Thrival School LLC.©2018. All Right Reserved. Thrival School LLC.
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Finding:
CORROSION
EXCEEDS
ACCEPTABLE
LIMIT AS
DEFINED BY
STANDARD.
TRADITIONAL AUDITS CAN
MISS THE REAL FINDING…
• COMPARE AGAINST
STANDARDS
• MOSTLY PAPER AUDITS
• MINIMAL CONVERSATIONS
AND SITE WORK
©2018. All Right Reserved. Thrival School LLC.
12/18/2017
16
©2015. All Right Reserved. The Thrival Company LLC.©2018. All Right Reserved. Thrival School LLC.
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
ROOT CAUSE ANALYSIS YIELDED –
Finding 1: management doesn’t require employees to be trained on the standard
– no awareness
Finding 2: strategic/budget planning does not account for the lifespan of the
fittings – no money to fix the problem
Finding 3: preventative maintenance (PM) system not being used or followed –
valves are exposed to corrosive atmosphere and no PM is being completed.
Finding 4: managers not requiring same inspections at satellite location as main
plant – operational control
Finding 5: contractors are being trained to a different standard of competence
then employees when they took over facility – change management
+7 more findings…..….
©2018. All Right Reserved. Thrival School LLC.
12/18/2017
17
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
WHICH AUDIT FIXED THE PROBLEM?
• AUDIT 1,2,3,4,…..
CORROSION EXCEEDS LIMITS
• AUDIT USING ROOT CAUSE
©2018. All Right Reserved. Thrival School LLC.
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
ROOT CAUSE SOLVES MORE
PROBLEMS THEN JUST THE ORIGINAL
PROBLEM….
©2018. All Right Reserved. Thrival School LLC.
12/18/2017
18
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Case Study 2:
RESOURCE
AUDIT
©2018. All Right Reserved. Thrival School LLC.
This Photo bCC BY-NC
Opportunity to turn off 88 lights during daylight
hours to reduce electrical costs. $109/hour X 8
hrs.=$878/Day X 30 days/year=$26,357/year
Finding: Light are on
during the daytime.
Findings:
1: Only one person know how
to work the lighting system.
2: No PM and sensors that
triggered lights to turn off
were not working.
3: No visibility to utility bill by
managers.
Etc. etc. etc.
©2018. All Right Reserved. Thrival School LLC.
12/18/2017
19
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Case Study 3:
FINANCIAL
AUDIT
©2018. All Right Reserved. Thrival School LLC.
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Audit Finding: Major assets are missing from the
depreciation schedule.
©2018. All Right Reserved. Thrival School LLC.
12/18/2017
20
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Findings from Root Cause Audit
• Leadership - Managers are allowing employees to purchase major equipment (above thresholds) outside of the purchasing process
• Operational Control - Petty cash employees are not enforcing standards on what can/cannot be purchased through that process
• Operational Control - Assets are being purchased through credit cards and not reported to financial department
• Training – No awareness of what level of asset must be reported and tracked
• Operational Control - Employees are permitted to purchase and have major assets shipped to their homes.
©2018. All Right Reserved. Thrival School LLC.
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
No. 1 Rule - Root Cause Analysis
All methods are…
©2018. All Right Reserved. Thrival School LLC.
12/18/2017
21
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Pick the best one for your…
©2018. All Right Reserved. Thrival School LLC.
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Root Cause – 3 Basic Causes
• Physical causes – Tangible, material items failed in some way (for example, a car's brakes stopped working).
• Human causes – People did something wrong, or did not do something that was needed. Human causes typically lead to physical causes (for example, no one filled the brake fluid, which led to the brakes failing).
• Organizational causes – A system, process, or policy that people use to make decisions or do their work is faulty (for example, no one person was responsible for vehicle maintenance, and everyone assumed someone else had filled the brake fluid).
©2018. All Right Reserved. Thrival School LLC.
12/18/2017
22
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Common Methods to RCA
• Appreciation
• The 5 Whys
• Cause and Effect Diagrams
• Drill Down
• Failure Modes and Effects Analysis
• ARCA – Apollo Method (copyrighted)
• TapRoot – (copyrighted)
©2018. All Right Reserved. Thrival School LLC.
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for AuditorsThis Photo by CC BY-SA
12/18/2017
23
Bad Problem Definition =
Bad Root Cause Analysis
©2015. All Right Reserved. Thrival School LLC.©2018. All Right Reserved. Thrival School LLC.
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
What if the problem isn’t the problem?
What if you've focused on the wrong
problem, or you're just looking at a
symptom of a larger problem?
©2018. All Right Reserved. Thrival School LLC.
12/18/2017
24
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Did anyone ever teach you how to
define the problem?
This Photo under CC BY-NC-SA
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Just as important as Root Cause
What are you solving/auditing for?
• Mind
Mapping
• CATWOE
• Others…
12/18/2017
25
WHAT IS THE PROBLEM
YOU NEED TO SOLVE?
Bad Problem Definition = Bad Root Cause Analysis
©2016. All Right Reserved. Thrival School LLC.
Soft Systems Methodology (SSM)
• Grew out of general systems theory, which views everything in the world as part of an open, dynamic, and interconnected system. The various parts of this system interact with one another, often in a nonlinear way, to produce a result.
• A way to explore complex situations with different stakeholders; numerous goals; different viewpoints and assumptions; and complicated interactions and relationships.
– Organizations consist of complex, dynamic, goal-oriented processes – and all of these work together, in a coordinated way, to produce a particular result.
– When something goes wrong within the system, or any of its subsystems, you must analyze the individual parts to discover a solution.
This Photo is licensed under CC BY-SA
12/18/2017
26
Steps to Soft
Systems
Methodology
…
Example provided by MindTools
Steps to Expand Problem
Write the title of the subject you're exploring
in the center of the page, and draw a circle
around it.
Example provided by MindTools.com
12/18/2017
27
Steps to Expand Problem
• As you come across major subdivisions or subheadings of the topic (or important facts that relate to the subject) draw lines out from this circle. Label these lines with these subdivisions or subheadings.
Steps to Expand Problem • As you "burrow"
into the subject and uncover another level of information (further subheadings, or individual facts) belonging to the subheadings, draw these as lines linked to the subheading lines.
12/18/2017
28
Steps to Expand Problem
• Then, for individual facts or ideas, draw lines out from the appropriate heading line and label them.
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
TAKE OUT THE
PROBLEM YOU
WANT TO SOLVE.
CREATE A MIND
MAP OF IT.
Part 1 – Solo Work
12/18/2017
29
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
What will be our unifying
theme/problem
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
BREAK OUT INTO
GROUPS OF 6 USING
TRAFFIC CONGESTION
ISSUES.
Group Work
12/18/2017
30
CATWOE
• A method for expanding your thinking about a problem or situation before you zero in on a specific problem that you want to solve.
• By analyzing the CATWOE factors (Customers, Actors, Transformation process, World view, Owner, Environmental constraints) that are influencing an issue of concern, you keep your perspective broad and are able to see the issue from many angles.
• This is a great tool to keep in mind, especially when you first start thinking about a problem, or try to come up with a solution.
Before you try to root cause an important problem, use the
CATWOE checklist to brainstorm the various people and elements
that are affected.
12/18/2017
31
How to use CATWOE to define the
problem(s) you want to root cause…
Define what you are thinking about. Remember, this is not a problem statement; it is merely a statement describing the situation.
– Need to figure out how to improve employee retention
Class Example provided by MindTools.com
How to use CATWOE to define the problem(s) you want to root cause…
Brainstorm ideas around the various CATWOE elements.
12/18/2017
32
Class Example
provided by MindTools.
com
Class Example provided by MindTools.com
12/18/2017
33
Class Example
provided by MindTools.
com
How to use CATWOE to define the
problem(s) you want to root cause…
Analyze your "answers" to the CATWOE questions. Look for underlying processes that are having the greatest impact on the issue you are investigating. In the example above, the following likely have the greatest impact on the issue:
– Corporate Culture.
– Employee Training.
Class Example provided by MindTools.com
12/18/2017
34
How to use CATWOE to define the
problem(s) you want to root cause…
• From these processes, separate out the problems that you can identify and then begin your process of problem solving. Notice that you will have a larger number of problems, and presumably more root problems, than you would otherwise have started out with. For instance:
– Our company culture isn't people-oriented – new people are left to "sink or swim."
– There's no orientation training.
– The rewards we give aren't motivating and engaging people.
Class Example provided by MindTools.com
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
BREAK OUT INTO
GROUPS OF USING
TRAFFIC CONGESTION
ISSUES.
Group Work
12/18/2017
35
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Appreciation Method
• What it is?
• Pros and Cons
This Photo by Unknown Author is licensed under CC BY-NC-
The Appreciation
Method
• What it is? Appreciation helps us uncover factors that we might have ordinarily missed, and it can be very useful for brainstorming solutions to problems.
• Origins: Originally developed by the military to help commanders gain a comprehensive understanding of any fact, problem or situation that it was faced with in battle.
• Basics: Starting with a fact, you first ask the question "So what?" – in other words, what are the implications of that fact? Why is this fact important? You then continue asking that question until you have drawn all possible conclusions from it.
• Utility: It is often used to get the most information out of a simple fact or statement vs. drilling down to the root of a problem.
12/18/2017
36
Example of Appreciation
We have received 50 customer service complaints in the last month.
• So what?
• This is unacceptable and is causing our organization to have a bad reputation.
• So what?
• If this continues, we will lose our funding.
• So what?
• Then we don’t have money to pay staff or provide required services
• So what?
• We have to fix this by XXX date or lose funding.
• So what?
• We need to analyze the complaints to figure out what they are about.
• So what?
• This will give us the information to figure out what needs to be fixed…
• So what………
Limitations of
Appreciation Method
• Appreciation can restrict you to one line of thinking.
• For instance, once you've answered your first "So what?" question, you might follow a single line of inquiry to its conclusion.
• To avoid this, repeat the Appreciation process several times over to make sure that you've covered all bases.
12/18/2017
37
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
The 5 Why’s
• What it is? A questioning method that allows people to quickly drill down to possible root causes of a problem by asking “Why?”
• Origins: Sakichi Toyoda, one of the fathers of the Japanese industrial revolution, developed the 5 Whys technique in the 1930s. He was an industrialist, inventor and founder of Toyota Industries. His technique became popular in the 1970s and Toyota still uses it to solve problems today.
• The Basics: It is remarkably simple: when a problem occurs, you uncover its nature and source by asking "why" no fewer than five times.
• Utility: You can use the 5 Whys in troubleshooting, quality improvement and problem solving, but it is best for simple or moderately difficult problems.
©2018. All Right Reserved. Thrival School LLC.
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Example of The 5 Why’s
• Problem: Your client is refusing to pay for the leaflets you printed for them.
– Why? The delivery was late, so the leaflets couldn't be used.
– Why? The job took longer than we anticipated.
– Why? We ran out of printer ink.
– Why? The ink was all used up on a big, last-minute order.
– Why? We didn't have enough in stock, and we couldn't order it in quickly enough.
• Counter-measure: We need to find a supplier who can deliver ink at very short notice.
Example provided by MindTools.com©2018. All Right Reserved. Thrival School LLC.
12/18/2017
38
©2018. All Right Reserved. Thrival School LLC.
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors©2018. All Right Reserved. Thrival School LLC.
How do you complete the 5 whys?
12/18/2017
39
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Take out the problem you want to solve.
Part 1 – Solo Work
©2018. All Right Reserved. Thrival School LLC.
Take a break -
10 minutes
12/18/2017
40
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Break out into groups of 4-6…
Part 2 – Group Work
©2018. All Right Reserved. Thrival School LLC.
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
What is the real reason the problem occurred?
Outbrief
©2018. All Right Reserved. Thrival School LLC.
12/18/2017
41
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Limitations of the ‘5 Whys’ Method
• It is most effective when the answers come from people who have hands-on experience of the process being examined.
• For more complex or critical problems, it can lead you to pursue a single track of inquiry when there could be multiple causes.
• Easy to use in audits and always the 1st try option as it’s quick and easy.
©2018. All Right Reserved. Thrival School LLC.
Cause and effect analysis
12/18/2017
42
Cause and Effect Analysis
aka. Also known as Fishbone Diagrams, Ishikawa Diagrams,
Herringbone Diagrams, and Fishikawa Diagrams
• What it is? Combines brainstorming with a type of mind map.
• Origins: Devised by professor Kaoru Ishikawa, a pioneer of quality management, in the 1960s. The technique was then published in his 1990 book, "Introduction to Quality Control."
• The Basics: The technique uses a diagram-based approach for thinking through all of the possible causes of a problem. This helps you to carry out a thorough analysis of the situation.
• Utility: You'll find that they are particularly useful when you're trying to solve complicated problems.
4 Steps to C&E Analysis
• Identify the problem (Mind-mapping or CATWOE).
• Work out the major factors involved.
• Strategy, Structure, Systems, Shared values, Skills, Style and Staff (McKinsey 7s)
• Product, Place, Price, and Promotion (4Ps of Marketing)
• Methods, Machines (equipment), People (manpower), Materials, Measurement, Environment
• Identify possible causes.
• Analyze your diagram.
12/18/2017
43
12/18/2017
44
EXAMPLE FISHBONE DIAGRAMS
EXAMPLE FISHBONE DIAGRAMS
12/18/2017
45
EXAMPLE FISHBONE DIAGRAMS
EXAMPLE FISHBONE DIAGRAMS
12/18/2017
46
EXAMPLE FISHBONE DIAGRAMS
IT
EXAMPLE FISHBONE
DIAGRAMS
12/18/2017
47
Your Turn
Take out the problem you want to solve. Create a fish bone diagram of it.
Part 1 – Solo Work
12/18/2017
48
Break out into groupsPart 2 – Group Work
What is the real reason the problem occurred?
Outbrief
12/18/2017
49
Take a break
10 minutes
Risk control in audits –
Finding failures before they happen and fixing the root cause
Failure Modes and Effect Analysis
Impact Analysis
Kaizan
12/18/2017
50
Things to discuss…
What can you do to prevent the problem
from happening
again?
How will the solution be
implemented?
Who will be responsible for
it?
What are the risks of
implementing the solution?
Predict the risks of the
solution
Failure Mode and
Effects Analysis(FMEA)
• What it is? Looking at all the things that could possibly go wrong at design stage, you can cheaply solve problems that would otherwise take vast effort and expense to correct, if left until the solution has been deployed in the field
• Origins: FMEA was originally known as Failure Mode, Effects, and Criticality Analysis (FMECA), and was first published in 1949 by the USDOD. FMEA grew out of systems engineering, and is a widely-used tool for quality control. Originally used in product development, it is also effective in improving the design of business processes and systems.
• The Basics: You start by looking in detail at the proposed solution and then you identify systematically all of the points where it could fail. Once these potential failures have been identified, you rate the potential consequences by severity, frequency, and detection (or duration)
• Utility: Failure Modes and Effects Analysis is a useful tool for uncovering possible points of failure that may be lurking within business processes and solutions, whether these are already in place within your company or are proposed for the future.
12/18/2017
51
Steps to FMEA Analysis
Process map the proposed solution.
Identify the solution, system or process you're
looking at and, if
appropriate, the main issue you want to
investigate. List the critical
elements, in a logical (for
example, chronologica
l) order.
Develop a flow chart to
map the solution or
process, and the
interactions between its
various parts.
Use a template to
work through each
element in this process
in turn.
For each element in
the process use
brainstorming to identify all possible
failures. Enter the ways the
solution for process
could fail.
For each potential failure,
identify the consequenc
es of the failure.
For each potential
failure in the system, rank
Severity, Occurrence
and Detection.
Calculate the Risk Priority Number
(RPN) for each of the modes and effects by multiplying
the 3 ratings (Severity x
Occurrence x Detection).
Brainstorm actions and
make recommend
ations to counter the
potential threats you uncovered. This step is
best completed in
phases starting with the modes and effects
that have the highest RPN
(Greatest Threat).
Once you've modified the design for
the proposed solution,
repeat the Failure
Mode and Effects
Analysis process to review the
design, and make sure
that no additional potential
failure points can be
identified.
The objective here is to develop a solution
that has a low overall
RPN.
Example of RPN
Rankings
Severity – how critical is the failure?
5 – Very High (huge losses that threaten company viability)4 – High (large losses, company is still operable)3 – Low (losses exist, can be remedied)2 – Minor (loss is minimal, quite insignificant)1 – Low (no effect)
Occurrence – how likely is the failure to happen?
5 – Very High (must be addressed immediately, will happen very often)4 – High (will cause frequent issues, will happen often)3 – Low (will cause sporadic issues, will happen occasionally)2 – Minor (issue will be few and far between, will happen quite infrequently)1 – Low (issues unlikely, not likely to ever happen)
Detection – how easy will it be to detect the failure?
5 – Very Difficult4 – Difficult3 – Somewhat Easy2 – Easy1 – Very Easy
12/18/2017
52
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Overcoming barriers
What are the barriers to Root Cause
Analysis?
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Barriers to RCA…
• Duration of audit
• Resources (Expertise, People, etc.)
• Lack of knowledge
• Time to complete
• Complexity of problem
• Is it your role?
12/18/2017
53
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
You are Ready to Be My Guinea Pigs!
TEXT ‘rootcause’ to 44222
Get film of class and access to the LMS online 24/7 of this course.
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Testimonials from your fellow auditors on
Leadership in Auditing Course
• “I was surprised at the applicability of the information discussed in the course. Not only is it useful in the audit world, but the
trainer gave examples of how it can be applied in personal situations too. This is a training course that is useful for
practically anybody and the instructor was excellent!”
• “Excellent class, one of the best if not the best class I have attended in a very long time. I think every auditor in our off ice
would benefit and should attend the class. This class impacts all the work we do, whether it is a work paper or an audit
report.”
• “Loved this class. Elizabeth is an engaging instructor with relevant auditing experience.”
• “Ms. Frisch is experienced and knowledgeable of this subject area. She is energetic and covered a lot of material in the
course. The course is full of hands-on exercises with the various tools discussed. The pace of the course allowed the
participants to perform the exercises, ask questions and receive feedback, without feeling rushed.”
• “Elizabeth is one of the best CPE instructors we have had in here [at the State Auditor’s Office (SAO)] for a long time. She
was well-prepared and knowledgeable about her subject matter. She used real-life exercises on a topic of interest to all
participants. She structured the class so that we had hands-on learning that was not odious or contrived.”
12/18/2017
54
©2018. All Right Reserved. Thrival School LLC.
Root Cause Mastery
for Auditors
Stay in touch – don’t disappear!
Elizabeth Frisch
512.656.7518
t. @elizabethfrisch
Join the blog conversation at
www.thrivalcompany.com
for the latest developments in
business performance…
Get our free e-newsletter and
monthly video training series on the
secrets to mastering leadership and
reaching high performance in the
workplace and your life. Just type
you name and email at the top of the
page. WE DO NOT SPAM!
Top Related