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When everything is rosie and going well in a business that’s fantastic. But at some point as companies scale up, there will be problems. and fixing them matters and is important which is where a root cause problem-solving comes in. Fixing the wrong problem isn’t going to help us in the long-term.
As someone who has worked with numerous companies across industries, I’ve seen how easy it is to miss the warning signs of deeper problems while caught up in daily operations. On Episode 694 of “The Business Storytelling Podcast,” I spoke with business consultant Chris Davenport about how leaders can identify and address what’s really breaking their business.
The iceberg effect
Chris compared business problems to an iceberg.
“There’s two-thirds of it underwater, and you’re only seeing a portion of that iceberg,” he explained. This visualization perfectly captures why so many leaders struggle to identify root causes.
When you’re operating inside the business, it’s natural to focus on the visible problems – the tip of the iceberg.
“It really takes being outside of the business, or hovering above the business to being good at identifying what the root cause or the root issue is that’s causing the pain on the surface.”
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Timing and tough decisions
One of the critical aspects of root cause problem solving is knowing when to fix something versus when to walk away. During our conversation, I asked Chris about this challenging decision point, specifically about timing and investment.
“First and foremost, you have to make sure that you have a viable service or product that the market wants,” he explained. “That is really the only major thing that cannot be fixed in a business. Because if your product is not desired, or your service is not going well, then nothing is going to work past that.”
He shared an interesting analogy about persistence.
“I’ve seen some graphics where there’s a gentleman mining, and he quits right before he hits the gold, and somebody comes in after him, and three hits of the hammer, and they’re in.” This illustrates the delicate balance between persistence and knowing when to pivot.
Timing can be a huge issue. I shared an example from my own experience.
“Fifteen years ago, I was helping a newspaper, and I said, ‘You should put the audio of the articles on top of the articles.’ And they all thought I was crazy. They looked at me like I’m nuts.”
Fast forward to today, and there’s an entire industry built around audio versions of written content. This example highlights how timing and market readiness play crucial roles in business success.
The human element
One often overlooked aspect of root cause problem solving is the human connection in business.
“It’s not about what people say to us, it’s about how it makes us feel,” Chris noted. This insight is particularly relevant when examining customer relationships and marketing strategies.
The conversation turned to leadership’s role in problem solving, particularly regarding company culture and values.
“You take your best team members, leadership or not, and you think of the qualities that stand out about those individuals,” Chris said. and that’s where we dig to get the core values and the culture road map of an organization.”
This approach to leadership involves more than just top-down decision making.
“It is about the leaders setting the tone of the culture and the values, and holding that line, holding everyone accountable and themselves accountable to that line, to maintain that culture,” he explained.
Communication challenges
Clear communication plays a vital role in effective root cause problem solving. He emphasized the importance of consistent messaging.
“What I recommend to leaders is to do what you say you’re going to do,” Chris said.
He provided a practical example of how leaders should handle difficult situations:
“Instead of having mass layoffs… there would have been some warning or runway on, ‘Hey, our numbers last quarter weren’t what we expected. We may have to make some adjustments. No changes for now, but there may be changes coming next quarter if things don’t turn around.'”
The path forward
Understanding and addressing root causes isn’t a one-time exercise – it’s an ongoing process that requires dedication and practice. As leaders, we need to create space for this kind of strategic thinking, even when the daily demands of business feel overwhelming.
As Chris reminded us during our conversation, the cost of not addressing root causes can be far greater than the time invested in solving them. Whether it’s revenue loss, customer churn, or talent departure, the signs of deeper problems will eventually surface in ways that can’t be ignored.
The key is learning to spot these indicators before they become crises, and having the courage to look beyond surface-level solutions. Only by understanding and addressing the full “iceberg” can leaders create sustainable solutions for their businesses’ challenges.