You can’t solve a problem without making decisions. But how long does it take your team to decide on something? According to McKinsey, only 50% of managers say decisions are made in a timely manner at their organization, while 6 in 10 say half the time spent deciding is ineffective.
In the 1960s, vehicle manufacturer Toyota was experiencing something similar. The company pioneered a new approach to problem solving, called A3, which later spread across the globe. But what does A3 problem solving entail? And how can it help your business find solutions? Read on to learn:
- What is A3 problem solving?
- The history and origins of A3 problem solving.
- Why use A3 problem solving?
- What is an A3 report?
- How to create an A3 report in 8 steps.
- Overcoming challenges with your A3 report.
- Useful concepts related to A3 problem solving.
- Case study – how healthcare professionals use A3.
What is A3 problem solving?
A3 problem solving, a component of lean manufacturing, is the process of condensing a problem and potential solutions on a single sheet of A3-sized paper (11" x 17"). This sheet of paper is known as an ‘A3 report’, which is structured around a series of boxes that aim to address your business challenge.
The best way to think of it is that A3 problem solving is the theory, and an A3 report is the actionable output. The two are closely related but shouldn’t be used interchangeably.
The A3 problem solving approach originated at the carmaker Toyota as part of the Toyota Production System (TPS). But over time, it gained global recognition and adoption by various industries.
The history and origins of A3 problem solving.
A3 problem solving came to prominence at Toyota in the post-war period as part of an innovative new manufacturing philosophy called ‘lean’. As part of the TPS in the 1960s, it played a crucial role in the company’s journey toward continuous improvement and fostering a culture of problem solving at all levels of the organization.
Pioneered by Taiichi Ohno.
In the mid-20th century, Toyota wanted to drive efficiencies and reduce waste at its factories. Under the leadership of Taiichi Ohno, the company committed to kaizen (continuous improvement) and a practice called ‘go and see’ (genchi genbutsu) to achieve its goals.
At its core, ‘go and see’ was about getting to the root of a problem, fast. Ohno pushed his managers to make problems easy to summarize and diagnose. This led to a trend of problems and solutions being set out on A3 sheets of paper — and A3 problem solving was born.
Globalized by John Shook.
By the 1980s, A3 problem solving was so embedded at Toyota that every new graduate recruit was trained in it when joining the company. One of these was John Shook, who joined the company in 1983. He learned A3 problem solving from leaders like Isao Yoshino before helping to popularize it beyond Toyota, globally and across various industries. He authored the book ‘Managing to Learn’, which broke down the A3 process for beginners.
“At Toyota, there exists a way to solve problems that generates knowledge and helps people doing the work learn how to learn. Company managers use a tool called the A3 as a key tactic in sharing a deeper method of thinking.”
John Shook
Why use A3 problem solving?
Familiarizing yourself with A3 problem solving methodology and A3 reports can help you to solve problems more efficiently. It can reduce administrative bloat and enable faster decision-making.
According to McKensey, ineffective decision-making leads to 500,000 wasted days every year. Creating an A3 report, observing a problem yourself, and speaking to people can help to reduce those lost days.
Key benefits of A3 problem solving.
By following the A3 problem solving process, teams can unlock the following advantages:
- Faster problem solving. The concise format helps you to solve problems quickly. By condensing the problem, analysis, and proposed solutions on to a single sheet of paper, teams can quickly align on key issues and act fast. This accelerates decision-making, minimizes delays, and enables timely resolution.
- Enhanced communication. A3 reports are visual, making them clear, concise and easy to communicate. Presenting the problem and proposed solutions on a single sheet of paper eliminates ambiguity. Streamlined communication means greater transparency, improved understanding, and better conversations.
- Collaboration. A3 problem solving encourages collaboration, bringing together individuals from diverse backgrounds and expertise. Collaboration promotes knowledge sharing and improves team culture. It also ensures everyone understands the problem.
- Continuous learning and growth. A3 problem solving follows the principles of continuous improvement. It nurtures a learning mindset within the organization. Team members gain valuable insights into the root causes of problems, identify opportunities for improvement, and develop their problem-solving skills.
What is an A3 report?
The A3 report is the key output of the A3 problem solving process. Essentially, it brings the thinking to life in a series of steps — defining the problem and how you will solve it, laid out on a single sheet of A3 paper. The report is presented in a grid, with a series of boxes the author populates with information and actions regarding the challenge.
The report will give you:
- An overview of the problem.
- The background and context.
- Your goal or desired outcome.
- Analysis of what caused the problem.
- Measures to address the problem.
- Plans to implement the measures.
- Follow-ups to monitor progress.
How to create an A3 report in 7 steps.
This table will help you to understand how to create an A3 report. It presents each component with the theory behind it and then a real-world example from an A3 report.
- Improve quality control processes. We will implement a more rigorous quality control process for our new product.
- Provide additional training for our shipping team. This will include training on how to identify and handle fragile items and how to properly package products.
- Improve communication between our customer service team and our manufacturing team to ensure that any product defects or shipping issues are identified fast.
To implement these countermeasures, we have developed the following plan:
- Improve quality control processes within the next 30 days.
- Provide additional training within the next 60 days. This will include both classroom and hands-on training.
- Roll out a new communication process between our customer service team and our manufacturing team within the next 30 days.
Write your A3 report in this order.
- Start at the top left of the page. State the problem and then work your way down.
- Devote the left side of the page to the first four steps to thoroughly analyze the problem — it should take half your time as well as half the space.
- Use the right side of the page to work through your solution — your ideas for improvement, your plan of action, and your evaluation and follow-up.
Overcoming challenges with your A3 report.
Unclear definition of your problem.
A clear definition of your problem and goal is the foundation of your A3 report. If there’s any ambiguity, or it is based on inaccurate information, this can compromise the entire report. Try to make it as specific as you can, and avoid vague, abstract language. Keep the message concise. Every word should count and contribute, as any padding can cause confusion.
Countermeasures that fail to land.
Your countermeasures are the steps you’re putting in place to address your problem and implement a solution. If you fail to interrogate and stress-test these, they could be fall short. Ask yourself, will these steps help to bring about the end goal we are targeting? And are they achievable within the deadline we have set and with the resources we have available?
Poor stakeholder engagement.
To implement your A3 report, you’re going to need buy-in from stakeholders. Have you got the right people in the room? Do they agree with the problem your team has identified, and your approach to solving it? Be ready for negotiations with stakeholders — be diplomatic and persuasive while also remaining empathetic to their position. Win hearts and minds.
Failing to get to the root of it.
Defining your problem is one thing, but if you fail to conduct a comprehensive root analysis you could end up in the same place in a year’s time. Understanding why the problem happened in the first place can help you to create more effective and realistic countermeasures.
Not following through on follow-ups.
You’ve addressed your problem with a series of countermeasures. That’s it, right? Wrong. The follow-up stage is a crucial element of your A3 report. Fail to follow up properly and you could see the plan you have implemented fall prey to the same old problems. Set clear actions for monitoring your implementation.
Useful concepts related to A3 problem solving.
Lean methodologies.
Lean management theory originated in the mid-20th century with the aim of improving efficiency and reducing waste in manufacturing. The idea was to continuously iterate workflows to identify and address inefficiencies. Practitioners believe this delivers greater value to the customer. A3 problem solving is a lean management technique that originated at Toyota.
Five whys analysis.
Five whys analysis was first used in business management in the 1930s by Toyota founder Sakichi Toyoda before being popularized across other industries from the 1960s and 70s. It centers on problem solving, specifically on getting to the bottom of any problem by interrogating it — asking five times why it may have happened. People often use the five whys technique when creating an A3 report.
Plan-do-check-act cycle.
A key component of lean management and A3 problem solving, the plan-do-check-act cycle (PDCA) is all about fostering a culture of continuous improvement. The idea is to set an objective, create a plan for achieving it, monitor its progress, and make further actions based on that.
SMART goals.
SMART goals are another framework you can align with your A3 problem solving. SMART is all about setting realistic and achievable goals you can measure and learn from. So, when it comes to implementing the countermeasures in your A3 report, SMART goals can help you set those and stay on track.
Six Sigma.
Six Sigma is another component of lean management methodology. It focuses on driving profitability by minimizing product defects and boosting customers’ trust in the brand. By raising awareness to the costly impact of defects, such as refunds and poor sentiment, it aims to promote continuous improvement.
Case study – how healthcare professionals use A3.
The origins of A3 problem solving may have been in the automotive industry but in the later decades of the 20th century and into the 21st century, the practice spread to other industries and sectors. These include healthcare, as shown in this case study published by the Royal College of Pathologists in the UK. .
Back in February 2014, Guy’s and St Thomas’ NHS Foundation Trust in London used A3 problem solving to deliver the same standard of care to all lung cancer patients, regardless of whether they were referred by their GP or another route.
By creating an A3 report, Dr. Paul Cane identified the root causes leading to differences in care. He put in place countermeasures and an action plan to overcome them — the creation of a ‘single effective cancer pathway’ to ensure ‘all lung cancer patients receive the same standard of care by December 2014’.
Summing up – are you ready for A3?
A3 problem solving has been honed over the past 75 years or so as a key component of lean management principles. It famously transformed automotive manufacturing at Toyota, and it has been used by managers across a diverse range of industries and sectors. When corporate decision-making is moving slowly, it can help you get to the root of problems faster, understand how and why they became problems, and develop effective solutions.
But to get the best from your A3 reports, you may want to consider project management software. This can help you to understand your challenge with reporting tools and insights, plan and implement your countermeasures, and connect the people who need to collaborate to get things done.
Adobe Workfront is a project management system that makes it easy to connect, collaborate, and simplify workflows at scale. Speak to an Adobe expert today to arrange a demo.
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