The FCA methodology is very simple. It has been adopted with a lot of frequencies by managers who want to solve strategic problems quickly and efficiently.
In this article, we decided to conceptually explain what FCA is and demonstrate what it’s for.
Continue reading to understand in practice what we are talking about!
What is the FCA methodology?
Acronym of fact, Cause and action, the FCA methodology can be described as a way to accomplish Business Diagnostics. It was created to assist leaders in decision-making and can be applied during any period of the proceedings, acting as a Facilitator in problem solving and generation of improvements.
FCA also serves to prevent risks and generate in-depth knowledge about applied processes. It is used both reactive and preventively, because it consists in analyzing not only the “symptoms of the facts”, but also the root of the problems. From there, you can create alternative actions and formulate solutions that are easy to implement.
In practice, the FCA method can be used in the problems related to the production process, in sales, in the development of projects and even in the engagement of teams.
Its great asset is to help in deepening the causes of problems and facilitating analysis to make decisions more coherent with reality.
How to use FCA methodology in your company?
That said, let’s now go to some indications of how the FCA methodology can be applied in a business.
In practice, it all begins with the identification of the fact to be analyzed. Then, the possible causes that gave rise to this problem are considered and, finally, an action plan is formulated to control and resolve the eventuality.
In even simpler terms:
Dive into the SUIT
The FACT is the problem witnessed (external or internally) by the company. It may be an eventuality that is affecting the operation, performance or results.
For example, managers are noticing a 25 increase in telephony spending over the past few months.
The CAUSE is understood
The CAUSE is the set of reasons that triggered the problem. She is not always visible to the naked eye; It is necessary to study it and, so quickly, formulate ways to control its effects.
Following our example cited in the previous topic, the company begins to develop the FCA analysis and discovers that the telephony expenditure has grown because employees have used this resource for personal purposes — the cause was determined.
And it breaks into ACTION
As the term itself suggests, ACTION is the attitude that the company should develop to solve the problem. It is only well realized after the identification of the fact and its houses — without it, it is possible to act wrongly.
To solve the problem of increasing telephony costs, managers can increase phone usage controls on all lines, work on resource wastage awareness, delimit minimum spending per area (cost center creation) and So on.
Does the FCA methodology make your business more strategic?
Finally, it is interesting to think that the FCA methodology is one of the tools that can help a company to be more strategic.
It can also be used for project tracking through performance targets and indicators. If the targets are in the plan, great. If not, the FCA analysis facilitates the understanding of what is disrupting the progress of the project.
Another point where the FCA methodology can be included is in the systems used to carry out strategic planning.
Using the Scoreplan, for example, you can make analyzing the performance of your business indicators faster and more efficiently based on this method!
Do you already use the FCA methodology in your strategic management? What did you think of this article? Leave your comment!