Appendix B:
Four Whys

The four whys tool is helpful to identify root causes of recurring problems, so they may be addressed and the problem finally eliminated. Often, the tendency exists to address the symptoms of the problem or apply a “bandage” solution, only to find that the problem still exists. Applying the four whys tool to a problem ensures the desired long-term results.

Steps to Four Whys

1. Select a recurring problem.

2. Ask, “Why did the problem occur?”

3. Take the answers identified in step 2 and ask, “Why did they occur?”

4. Continue delving into the problem by asking why until you’ve identified multiple root causes to the originally identified problem.

5. Brainstorm and implement solutions to a subset of the root causes. Select the root causes that

a. most likely contribute to the problem.

b. most often contribute to the problem.

c. are within your span of control to correct.

6. Monitor the situation to determine whether the problem has subsided and to what extent.

Examples of Four Whys

Problem: Work is repeatedly completed over budget.
Why? (root causes in bold)

Employees are doing more work than they should. Why?
Processes are inefficient.

Employees do not understand the scope of the engagements. Why?
Engagement letters are vaguely worded.
Engagement budgets are not set.
Engagements are rotated among employees.
Engagements are rarely discussed with employees at the outset.

Employees do not see the engagement letters. Why?
Engagement letters are not kept with the work.
Clients are not completing their work. Why? Clients do not understand our expectations. Why?
Engagement letters are vaguely worded.

Employees have not clarified expectations when the situation occurs. Why?
Employees are not allowed to call clients.
Partners have asked employees to complete work and get it out the door.

Clients do not know how to properly complete their work. Why?
Clients do not have trained staff members. Why?
Clients cannot afford a full time-staff member.
Information is not provided to clients.

Clients do not have time to complete their work. Why?
Clients do not have staff members to complete the work. Why?
Clients cannot afford full time-staff members.
The deadlines for information do not work well with the clients’ peak business periods.

Clients do not want to complete the work. Why?
Clients have better things to do with their time.

Clients have no interest in the work they are being asked to perform. Why?
Clients feel that the work is “accountants work.”

Clients are submitting work in a sloppy form. Why?
Clients do not know how to organize the work. Why?
Clients have not been provided a list, format, or instructions for compiling work.
Clients are not organized, by nature.

Employees are taking too long to complete the work. Why?
Employees are not adequately trained in the accounting principles or on the computer system. Why?
Training is not provided to new employees.
Employees are not mentored.

Staffing selections have been poor. Why?
Limited pool of candidates. Why?
Benefits and wages are substandard.
Low unemployment rate.
Lack of structured interview and reference-checking process.

From the bold list, the most likely root causes are selected and solutions brainstormed and implemented.

It is apparent that this approach is more likely to yield lasting results than the typical solution for remedying engagements that are completed with many hours over budget—applying pressure to everyone to be more efficient.