Find the Root Cause of Repeat Arrears
Apply Five Whys to identify a process-level cause of repeat arrears in a microfinance center.
Center 14 moved from 2% late to 18% late over three cycles. Most late clients are market sellers who were previously current. Five Whys: symptom -> evidence-based why -> deeper why -> process cause -> countermeasure. Stopping at 'clients are unreliable' creates blame but no fix. A root cause should point to a changeable process, condition, or control. Why 1 Why are payments late? Clients are not bringing cash to the Tuesday meeting. This is the symptom restated with a little more detail; keep going. Why 2 Why no cash on Tuesday? Sellers now travel Tuesday morning to buy stock…
Sign up free — one personalized lesson every day, matched to your role and goals.
Already have an account? Sign in