A3 Problem Solving:

Introductory Reference
Pack

Markovitz Consulting
 Six
Key Points | When Writing An A3

1. An A3 is a structured conversation that promotes deep understanding. The magic is in

the process, not the paper size.

2. Goals of the A3 process:

• Teach people how to think by making the problem solving process visible
• Eliminate the waste of half-baked “solutions”

3. When you’re gathering information for the background, current state, and analysis,
approach people with a true spirit of open inquiry. Don’t use these conversations as an
opportunity to justify your preconceived, pre-determined, and preferred solution.

4. Beware of solutions masquerading as problem statements (A good rule of thumb: phrase

a problem in such a way that it leads to more questions):

• Bad: “The problem is that we don't have enough clerical support.”

• Good: “Our sales team spends nearly an hour each day filing their paperwork.”

• Bad: “We could process credit memos more quickly if we had electronic instead
of paper forms.
• Good: “It takes us from 4-8 days to process a credit memo.”

• Bad: “We need a better ad campaign to raise awareness.”

• Good: “Market awareness of our new product line is low.”

5. Things to consider when assessing an A3:

• Does the A3 tell a clear story?
• Do the countermeasures address the problem statement?
• What implementation problems do you anticipate?
• How will you check/assess the effectiveness of the countermeasures?

6. Things to be careful of when making an A3:

• Jumping to conclusions
• Doing it yourself (it takes two to A3)
• Skipping the “check” phase ! what went wrong? Why?

A3 Problem Solving Infopack © 2014 Markovitz Consulting Page 2

 Problem
Statement | What are you talking about?
The purpose of the Problem Statement is to clarify what we’re talking about and what issue
we’re trying to solve.

The problem statement can be difficult, but it’s the most important part. If you get this wrong,
you’ll end up (at best) solving the wrong problem, and (at worst) completely wasting your time.
Even a small difference in the framing of the problem statement makes a huge difference in the
trajectory of your project.

Don’t worry about getting the problem statement “right” the first time. Most of the time, you’ll
end up writing and re-writing the problem statement at least 3-4 times. That’s a good thing,
because it reflects your increasing understanding of the problem you’re trying to solve.

If your statement is some variation of “We don’t have enough time/money/people,” you’re on
the wrong track, because the only way to solve this problem is to add more time, money, or
people.

Key Points
A good problem statement:
• Is a statement of fact, not a judgment (“Finance doesn’t care about our needs”) or
an assumption (“Product Development doesn’t know what we really do”).
• Is specific, not vague (“Customer Service makes a lot of errors in order entry”).
• Is related to the company’s mission, vision, or something important to your
customers.
• Doesn’t jump to solutions (“The problem is that we don’t have electronic forms for
this process”).
• Phrases the problem in such a way that it leads to more questions.
• Is concise.

A3 Problem Solving Infopack © 2014 Markovitz Consulting Page 3

 Background | Why do I care?
The purpose of the Background section is to answer the question, “Why do I care?”

In a world of limited resources, the company can only focus on solving a few problems at a
time. Why is this problem important? Why should the company invest time and money on this
issue?

Key Points
A well-written Background section:
• Explains why this problem is important.
• Shows how this problem affects the company’s mission or its customers.
• Uses pictures and data/graphs/charts to tell the story.

© Copyright 2008, Managing to Learn, Lean Enterprise Institute Inc., Cambridge, MA, lean.org.
All rights reserved. Used with permission.

A3 Problem Solving Infopack © 2014 Markovitz Consulting Page 4

 Current State | What’s going on now?
The Current State section of the A3 is where you show the reader what’s actually happening.

People often have problems differentiating between the Background and the Current State
sections. The Background is where you explain the impact on the company or your customers,
and make the case for improving the situation. The Current State is where you use data, facts,
and pictures to provide details about what the current conditions are. This section paints a
clear picture of the gap in performance.

It’s often helpful to break the problem down into smaller pieces in this section. Pareto charts,
histograms, pie charts, and value stream maps are useful in this section.

Key Points
A solid Current State section:
• Uses pictures and data/graphs/charts/pictures to tell the story.
• Has specific, factual information and data, not hearsay, generalities, or judgments.

© Copyright 2008, Managing to Learn, Lean Enterprise Institute Inc., Cambridge, MA, lean.org.
All rights reserved. Used with permission.

A3 Problem Solving Infopack © 2014 Markovitz Consulting Page 5

 Analysis | What are the root causes?
The Analysis section of the A3 is where you identify the root cause (or causes) of the problem.
This is where you explain why the problem is occurring. Note that there are usually several
root causes for any given problem.

The nature of the problem will determine what kind of analytical tools you’ll want to use. Some
of the most common are:
• Five whys
• Pareto
• Fishbone and Cause Mapping
• Value stream mapping (high level view of the stages of the whole process)
• Process mapping (detailed view of what each person does in the process)
• “Check sheets” (identifying when the problem occurs and any consistent patterns)

Key Points
A solid Analysis section:
• Uses pictures and data/graphs/charts to tell the story.
• Focuses on identifying the problems, not the symptoms arising from those problems.

© Copyright 2008, Managing to Learn, Lean Enterprise Institute Inc., Cambridge, MA, lean.org.
All rights reserved. Used with permission.

A3 Problem Solving Infopack © 2014 Markovitz Consulting Page 6

 Recommendations | What do you propose
to do — and why?

The Recommendations section of the A3 is where you propose your countermeasures to

improve the situation.

It’s important to present at least 2-3 countermeasures, and preferably more. Identifying multiple
countermeasures gives you the ability to judge the quality of the thinking behind the A3.

Evaluate the relative cost, feasibility, and likely effectiveness of each countermeasure. Not all
options are created equal, and these three factors will help you choose which option to pursue.
Make sure that the proposed countermeasures actually address the root cause(s) of the
problem, and work within any constraints you identified in the Current Situation.

Key Points
A solid Recommendations section:
• Provides multiple options, not just one solution.
• Clearly addresses the root causes of the problem.
• Shows your preferred option.

© Copyright 2008, Managing to Learn, Lean Enterprise Institute Inc., Cambridge, MA, lean.org.
All rights reserved. Used with permission.

A3 Problem Solving Infopack © 2014 Markovitz Consulting Page 7

 Plan | What, who, when, and how will you implement?
The Plan section of the A3 is where you show how you’re going to implement your
recommended countermeasures.

Most companies are familiar with this step. A Gantt chart showing who will do what, and by
when, works well. However, it’s a good idea for the plan to include regular review dates so that
you can ensure the implementation/execution is proceeding as planned—and if not, enable you
to take corrective action.

Key Points
A solid Plan section:
• Uses a Gantt chart or some other timeline to show clearly what the main actions and
deadlines are for the implementation.

© Copyright 2008, Managing to Learn, Lean Enterprise Institute Inc., Cambridge, MA, lean.org.
All rights reserved. Used with permission.

A3 Problem Solving Infopack © 2014 Markovitz Consulting Page 8

 Follow-up | How will check that you succeeded?
The Follow-up section of the A3 is where you show how you will ensure that your
countermeasures are working, and if necessary, how you’re going to roll it out across the
company.

This section will have clear metrics for success so that you can evaluate the effectiveness of
your countermeasures. It will tell you when and how often you’ll need to check on the ongoing
conditions.

Key Points
A solid Follow-up section:
• Ensures that you conduct a post-mortem assessment.
• Provides clear evidence that your countermeasures were (or were not) successful.
• Enables you to capture any important learning.

© Copyright 2008, Managing to Learn, Lean Enterprise Institute Inc., Cambridge, MA, lean.org.
All rights reserved. Used with permission.

A3 Problem Solving Infopack © 2014 Markovitz Consulting Page 9

 Info | Markovitz Consulting
About Markovitz Consulting
Markovitz Consulting helps organizations improve their operational efficiency. Clients come to
us when they need to:
• Improve business execution.
• Elevate service levels.
• Adjust to a new organization with fewer staff.
• Increase the amount of time people have for critical, value-added work.

About the Author

Dan Markovitz is founder of Markovitz Consulting. He is a faculty member at the Lean
Enterprise Institute, and regularly teaches at the Stanford University Continuing Studies
Program. He also runs a problem-solving workshop at the Ohio State University’s Fisher School
of Business.

Dan is a board member of the Association for Manufacturing Excellence, and speaks at national
and regional conferences, including Outdoor Retailer and OIA Rendezvous.

He is a frequent contributor to the Harvard Business Review blog. His book, A Factory of One:
Applying Lean Principles to Banish Waste and Improve Personal Performance, was published by
Productivity Press received the Shingo Research Award in 2013. His new book presents the six
key principles that will enable you to bring your organization to peak fitness and performance.

Dan’s previous work life included nine years in the athletic footwear and outdoor industries,
including three years running his own shoe company.

Dan holds an MBA from the Stanford University Graduate School of Business.

Contact
For more information on how Markovitz Consulting can help improve your performance,
contact us here:
Phone: 917.364.1864
Email: dan@markovitzconsulting.com

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A3 Problem Solving Infopack © 2014 Markovitz Consulting Page 10