22nd January 2025
Exploring ‘Good Practice’ identified in the FCA’s recent thematic review on complaints management and Root Cause Analysis
By Anthony Eghan, Business Development Manager, Civica
Effective complaints management is crucial for any organisation, as it not only helps to resolve customer grievances, but also provides valuable insights into systemic issues that may be affecting the business. A key component of complaints management is Root Cause Analysis (RCA), which is a methodical approach to identifying the underlying causes of problems or complaints. It involves gathering and analysing data, identifying patterns and relationships, and using various tools and techniques to determine the root cause of an issue. The goal of RCA is to identify the underlying causes of a problem, rather than just its symptoms, and to develop effective solutions to prevent similar problems from occurring in the future.
The Financial Conduct Authority (FCA) recently published findings of their targeted thematic review into 40 firms’ approaches to complaints management and RCA.
The findings set out many areas of good practice, along with areas for improvement. One of the specific areas of good practice centred around one firm’s adoption of the ‘Five Whys’ problem-solving technique. The ‘Five Whys’ technique is a simple yet powerful tool for drilling down to the root cause of an issue. In this article, we will explore how a firm can implement a ‘good practice’ RCA process, incorporating the ‘Five Whys’ methodology, to improve complaints management.
The ‘Five Whys’ methodology
The ‘Five Whys’ is a simple yet effective methodology for conducting RCA. It involves asking "why" five times to drill down to the root cause of an issue. The process works as follows:
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Identify the problem or complaint
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Ask "why" the problem occurred
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Analyse the response and ask "why" again
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Continue asking "why" until the root cause is identified (usually within five iterations)
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Develop and implement solutions to address the root cause.
The ‘Five Whys’ methodology is a useful tool for RCA because it encourages a systematic and thorough approach to problem-solving. By asking "why" multiple times, teams can drill down to the underlying causes of a problem, rather than just treating its symptoms.
Exploring what a ‘Good Practice’ RCA process looks like
Organisations looking to implement good practice within their RCA process should start by considering the following steps:
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Establish a robust complaints management process: Develop a clear and transparent process for handling customer/service user complaints, including procedures for logging, investigating, and resolving complaints.
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Define the scope of RCA: Determine which complaints or issues will be subject to RCA. This may include complaints that are repetitive, serious, or have significant business implications.
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Gather data: Collect relevant data and information pertaining to the complaint or issue, including customer feedback, internal records, and external data sources.
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Assemble a cross-functional team: Bring together a team of stakeholders from various departments, including customer service, operations, and quality assurance, to conduct the RCA.
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Fairness: The RCA process should be fair and unbiased, with decisions made in the best interests of the customer.
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Apply the Five Whys methodology: Use the ‘Five Whys’ methodology to drill down to the root cause of the issue. Ask "why" multiple times, analysing each response and asking additional questions until the root cause is identified.
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Analyse and prioritise solutions: Develop and prioritise solutions to address the root cause of the issue. Consider the feasibility, cost, and potential impact of each solution.
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Implement and monitor solutions: Implement the agreed-upon solutions and monitor their effectiveness. Continuously review and refine the RCA process to ensure that it is effective and efficient.
Some ‘Good practice’ tips
To ensure that the RCA process is effective and efficient, organisations should consider the following:
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Involve customers: Engage with customers throughout the RCA process to ensure that their concerns and feedback are heard and addressed.
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Use data analytics: Leverage data analytics tools to identify patterns and trends in complaints data, and to inform the RCA process.
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Foster a culture of transparency: Encourage a culture of transparency and openness, where employees feel empowered to report issues and concerns without fear of reprisal.
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Continuously review and refine: Regularly review and refine the RCA process to ensure that it is effective, efficient, and aligned with business objectives.
Organisations looking to implement good practice into their RCA process have to seriously consider incorporating the ‘Five Whys’ methodology, as well as the other steps outlined in this article. These steps will allow organisations to identify the underlying causes of complaints to a granular level of detail, allowing for corrective actions to be better identified and developed, and improve customer satisfaction and loyalty. Organisations should try to involve customers/service users within the RCA feedback process, use data analytics, foster a culture of transparency and continuously review and refine the RCA process to ensure that it is effective and efficient.
Civica has twenty-five plus years’ experience of implementing digital workplace solutions for organisations of all sizes in both the public and private sectors. The iCasework platform underpinning our complaints and case management solution is mature, secure, scalable and proven in effectively handling regulated and non-regulated processes. Our complaints and feedback management solution (used by over 300 public and private sector organisations) has rich functionality and provides a modern, robust, good practice root cause analysis process, along with insightful MI dashboards and reports.
For further information about how Civica can help your organisation, please contact the team at Case Management software powered by iCasework | Civica