Can Finance solve business problems? Yes, by using this process...
In Finance, we get stuck analyzing the numbers.
We need to attach actual business activities to the analysis.
As a result, our analysis needs to be deeper and with real insights.
We need a different approach to break down complex issues.
We shouldn't start by analyzing the numbers.
We should start by understanding the business problem.
We do that by breaking it down into its distinct parts.
A great approach to use is "Root-cause analysis".
Here, you can apply the fishbone diagram analysis.
Break the business problem into six specific areas.
For each, identify the subcauses underlying the problem.
Now, it's time to start analyzing the numbers. Makes sense?
Business problem -> Break it down -> Analyze the numbers
Seek first to understand and then analyze the numbers!
PS. What approach do you use to break down complex business issues?