Executive Pay: The Curious Case of Carlos Ghosn’s Arrest
February 12, 2025
The successive waves of Entrepreneurship that began with the initial capitalists when countries were industrializing, and then continued with the advent of the Digital Age, has now reached a stage where eCommerce companies and Smartphone App based aggregators and businesses are the leading forms of entrepreneurship. In this context, it is worthwhile to note that […]
The rise of behavioral finance has led to several new strategies being floated in the financial world. Contrarian investing is one such strategy. This strategy did not exist till most of the world followed the traditional cash flow based financial models. However, ever since behavioral finance has come to the fore, so has contrarian investing. […]
In the previous article, we have already understood what Jock Taxes are. We also had a closer look at the reason why states levy jock taxes. However, there are many experts who believe that levying jock taxes is counterproductive. This is because of the fact that there are more disadvantages associated with jock taxes as […]
In the previous article, we have already seen that accounting for sporting franchises involves certain scenarios that are specific only to the sporting industry. We saw how the accounting for player contracts was unique and why it was important to understand the accounting implications. In this article, we will continue to have a look at […]
Credit derivatives are the most important financial innovation in the field of credit risk management. These derivative instruments have been created quite recently. They have only been traded for a couple of decades as compared to other instruments like stocks and bonds which have been around for centuries. Within this short period of time, credit […]
The 5 why method or the Root Cause analysis method that has been described in the Tools section plays an important role in determining that the X’s are recorded at actionable level. In this implementation of the 5 why tool, there is a slight variation from the standard methodology and hence it has been explained in the context of Actionable X’s below:
The 5 why method is a non-statistical method to convert vital few inputs to their actionable level. It does not require any elaborate mathematical testing but rather simply relies on brainstorming the reasons and digging deeper and deeper in the process.
The 5 in the 5 why’s is a mere abstraction. The actual number of iterations required to come up with an actionable X will be less or more. However in almost all cases, actionable levels are reached within 5 iterations.
The 5 whys analysis for finding actionable X’s is therefore a combination of the regular root cause analysis and brainstorming. Instead of relying on expert knowledge, the collective knowledge of the Six Sigma project team is used here.
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