The primary and most critical role of a project manager or a business leader is to eliminate obstacles from the path of their teams and empower them to do good work.
Essentially, a good project manager is a great problem solver. To do this, they need the right tools and frameworks to effectively dissect a problem, explore possible solutions, and pick the most appropriate one.
In this blog post, we explore one such tool, the A3 report.
How to Create Impactful A3 Reports
Summarize this article for me pleaseWhat Is an A3 Report?
Definition: An A3 report is a problem-solving and continuous improvement approach that offers a simple and guided process to address complex business challenges.
If you saw the term ‘A3 report’ and made the connection to the ISO-A3 size paper, you’re on the right track. Pioneered by Toyota and adopted widely in the lean manufacturing world, A3 problem-solving prescribes a method to streamline information and make decisions.
Summarize this article for me pleasePurpose of an A3 Report
Fundamentally, an A3 report is a problem-solving tool. Within that frame of reference, the A3 report serves various purposes.
✅ Structure: An A3 report provides a structured problem-solving approach with clear boundaries. It helps teams explore the problem from every possible angle. In parallel, it also helps eliminate unnecessary information and focus on what matters.
✅ Limitations: In essence, you should be able to summarize the problem within an A3 sheet of paper. This helps prioritize possible causes and allocate resources accordingly.
✅ Actionability: Though called a ‘report,’ the A3 approach draws a clear line of sight between the problem (analysis) and the right solution (action plan).
✅ Repeatability: The A3 report is a tool that can be applied to a wide range of problems. Whether you’re in construction, manufacturing, social media management, or software development, the A3 report can help!
At a high level, an A3 report is a worksheet for problem-solving. At a granular level, it offers more clarity and visibility. Let’s look into those.
Summarize this article for me pleaseUnderstanding the A3 Report Structure
A good A3 process offers a structure to explore the context, identify goals, perform thorough analysis, and make decisions. Here’s what that would look like in practice.
Key components of an A3 report
- The best way to begin an A3 report is to include the basic information, such as:
- Serial number
- Report owner’s name
- Stakeholder names
- Date of report, etc.
With that out of the way, here are the key components.
1. Context/background
This section includes all the essential information you need before getting to the problem itself.
Let’s look at what this would be with an example.
Imagine you are a marketing agency looking into the falling profitability of a particular client engagement. The business context section of the A3 report will contain information such as:
- Historical revenue and profitability trends
- Name and details of the client
- Brief history of the relationship
- Any past contracts, service level agreements (SLAs), or vision statement templates
- People involved in the client engagement
2. Current situation
This is where you break the problem down. In this section, explain the events, changes, and activities of the recent past that may have given rise to the problem.
In this example, the current situation would include information such as:
- External factors like increase in labor costs, inflation, etc.
- Any recent personnel changes in the client account
- Processes followed in service delivery
- The rate of dip in profitability
💡Pro Tip: If you’re new to this, consider using one of our problem statement templates.
3. Goals
Now that you have the complete context, it’s time to set goals. Typically, the goal would reflect the outcome of the ideal solution.
In this example, your goal might be to increase profitability by 10% over the next quarter. However, it doesn’t have to be so straightforward. You can also set goals for reducing labor costs, automating processes, or increasing topline.
4. Root cause analysis (RCA)
Here’s when you finally come to why your problem occurs. For instance, why is the profitability of this client engagement declining?
Some gap analysis templates might give you a detailed view, but at the outset, here are the steps to perform an RCA.
- Brainstorming: Begin by collaboratively putting together all the possible causes
- Evidence gathering: For each of your identified causes, collect evidence to show its relationship to the problem
- Elimination: Remove all the identified causes that don’t significantly impact the problem
- Detailing: For the top 2-3 causes, drill deeper to understand the details
For the above example, your root-cause analysis section might look like the following.
| Brainstorming | Evidence gathering | Elimination | Detailing |
|---|---|---|---|
| All possible causes | Data for analysis | Narrow down root cause | Analyze data to validate causes |
| Increased labor cost Increased technology cost Slower delivery of services Complexity of requirement Inflation Competition | Compensation expense report Process maps for critical workflows Nature of change of requirements Competitor analysis | Inflation, competition, and requirement complexity only have a marginal impact. So, focus on: Labor cost Technology cost Delivery efficiency | Salaries have increased by 30% Y-on-Y, while client retainer only grew by 5% Despite higher salaries, service delivery is delayed by 2 days |
💡Bonus: Learn how to perform a root cause analysis.
5. Proposed counter measures
This is exactly what the name says. You know what the problem is, what the cause is, and to what extent it impacts the problem. Now, it’s time to design solutions. The below structure is helpful.
| Cause | Countermeasure | Outcomes | Responsibility |
|---|---|---|---|
| State the cause clearly | Explain what you believe will address this cause | List what goals this would help achieve | Name the people who will take responsibility for actions and outcomes |
6. Execution plan
At this stage, outline how you will execute the countermeasures you’ve identified. For instance, if you are planning to reduce team size to address the cause of labor costs, your execution plan will explore what that would look like.
Deliverables: Everything that needs to be done to execute the plan. This would be:
- Downsize team
- Reallocate team members to additional tasks
- Increase resource utilization to 100%
Timeline: Schedule the deliverables over the time period you’ve set goals for. To effectively manage overlapping deliverables, use a Gantt chart.
RACI: Make sure you have a clear idea of who is responsible, accountable, consulted, and informed (RACI). If you’re using a tool like ClickUp, assign doers and watchers for each task. Perhaps even schedule automated progress reports periodically.
Reviews: Schedule periodic review meetings to ensure the completion of countermeasures. Use the post-mortem templates or after action report templates to document the proceedings.
7. Follow up
If you review examples of continuous improvement, you’ll notice most, if not all, have a follow up or a retrospective to ensure that the growth is incremental. The A3 report is no different. In this section, list the follow-up actions for each stakeholder. Also, include when the next progress tracking report is due.
The above structure, cleanly broken down into seven sections, might make it appear like a clinical process. Most often, it is not so cut and dry.
The role of storytelling in A3 reports
A good A3 report also serves as a way to present to all relevant stakeholders, whether it’s team members, business leaders, or clients, the nature of the problem and the robustness of proposed solutions.
To make this presentation compelling, storytelling is vital. Here are a few things to remember while telling a story within the constraints of an A3 report.
- Prioritize clarity over creative flourish
- Highlight the connections between context and problem, problem and solution, or solution and outcomes
- Tie every piece of information back to the goals you’ve set
- Provide numbers where applicable
💡Bonus: Start with the basics of how to write a report
Summarize this article for me pleaseThe Many Facets of A3
The A3 report was primarily designed as a way to solve problems. However, that is not the only way it is used.
A3 as a tool for organizational learning
A3 reports serve as a document of record for teams of the future to learn from. In the example of a creative agency’s client engagement with declining profitability, the A3 report can serve as a knowledge base for:
- Future teams to build on and increase outcomes
- Other client teams to replicate for their accounts
- New employees to understand the background and context of the client engagement
In a way, a good A3 report not only solves the current problem but also several future ones. Moreover, the use of the A3 report framework itself is an organizational practice that can help standardize, expedite, and improve the effectiveness of everyday operations.
A3 as a framework for process improvement
Every A3 report includes follow up actions that are designed to incrementally improve outcomes over time. These follow-up actions then become somewhat of a feedback loop for the next iteration.
In the agency example, let’s say you’ve increased profitability by 10% by reducing labor costs. It still leaves opportunities for you to reduce technology costs and increase efficiencies. An A3 report will highlight this and encourage teams to keep their foot on the pedal in the long term.
A3 in the context of Lean and Six Sigma
The A3 report originated in the world of lean manufacturing in Japan. By virtue of that background, A3 reports help develop lean thinking, such as eliminating waste, increasing value, and continuous improvement.
Enough theory, let’s see how you can create your own A3 report.
Summarize this article for me pleaseCreating Your A3 Report
The great thing about the A3 report is that you don’t need fancy software or stationery. A simple blank page would do the trick. Use a project management tool like ClickUp, leverage existing data, and create your report in a jiffy!
1. Set up your A3 report
Fire up a blank page (in A3 size if you have it handy, but that’s not a dealbreaker) or open ClickUp Docs and start a new doc.
Set up the process by adding the seven sections, one each for context, current situation, goals, root-cause analysis, proposed countermeasures, execution plan, and follow up. Use formatting elements like banners to separate the sections and make it easier to skim.
If that seems like too much, try ClickUp’s Daily Action Plan Template. Use the pre-designed elements of this fully customizable template to quickly set up the sections of your A3 report.
2. Add the relevant information
Populate data under each section. Tag people within the platform and invite them to add their inputs for causes, evidence, etc. You can also share the document securely to external stakeholders who need to be consulted.
3. Link corresponding data sources
When you manage projects with ClickUp, you already have a treasure trove of data you can use. For example, if you believe that resource utilization is low on your project, you can easily validate that theory by looking at the workload reports.
While creating your A3 report, link these customizable dashboards to your document. Add screenshots, link other ClickUp Docs, or embed external files into your report. Enable people to click through and understand trends, if they so wish.
4. Create action items
Once the A3 report is submitted, reviewed, and agreed upon, create tasks for each countermeasure right from within your report. Assign people, set deadlines, add checklists, and more!
5. Circle back with reviews
Once you’ve executed your countermeasures, bring all stakeholders back to this document for review. Note down the feedback and other pointers for the next iteration. You can just add sections within the same doc or open up a sub doc for retrospectives.
We’ve so far seen what to do while creating A3 reports. Now, let’s see what not to do.
Common mistakes to avoid in A3 reports
🚫 Vague definitions: Key to solving any problem is to define it clearly. However, teams often document problems in a vague and ambiguous way, which hinders solutioning.
Instead, define the problem clearly. It also helps if you can quantify the problem in some way.
🚫 Too many causes: It is tempting to include every possible cause into your report. However, not all of them have equal impact on the problem. So, not being able to prioritize or streamline thinking is a big mistake.
Instead, focus on 2-3 root causes, no more. Make sure these have the most impact on the problem.
🚫 Improper planning: The execution plan needs to be thorough as well as reasonable. Don’t set lofty goals to change everything overnight. This can be disruptive and counterproductive.
Instead, create action plans that can seamlessly integrate into existing workloads and continuous improvement efforts.
🚫 Lack of alignment: However democratic you make this process, there will always be those who disagree with your A3 report. This disagreement leads to disengagement, eventually derailing countermeasures.
Instead, create a culture where even when people disagree, they commit.
Summarize this article for me pleaseImplementing A3 Problem Solving
An A3 report is a document that records the process. However, A3 problem solving is an organizational practice that creates a common context and guides decisions. Implementing the A3 problem solving involves some level of change in the thinking process. Here are some tips to enable that.
Streamline problem solving processes
It is always easier to build on something than start on a clean slate. So, as part of your lean project management, set up systems. For instance, with ClickUp, you can manage tasks, projects, workloads, sales, finances, and more. Over time, this surfaces valuable insights that can make problem-solving easier and quicker.
Steps to integrate A3 report practices in your organization
Once you’ve chosen A3 problem solving as one of your models, integrate it thoroughly into the organization.
Evangelize: Ensure everybody in the organization is acquainted with the A3 problem solving process. Offer trainings on A3 problem solving approaches. Include them in employee onboarding. Even add it to your management discipline to bring it into practice.
Enable: Create resources that everyone can use. Write best practices or statement of procedures (SOPs) for using the A3 reports and share it widely. Integrate it into your six sigma templates for easy access.
Encourage: Nudge department heads or project managers to share their learnings with their peers. Set up a problem solving software that everyone can access and learn from. Publish A3 reports for other teams to access and be inspired by.
Summarize this article for me pleaseOvercoming Challenges with A3 Reports
Let’s face it, creating an effective A3 report is a lot of work. Especially so in places where the instincts of the senior management or most vocal team members are often accepted unquestioningly.
📌 For instance, if you simply went to your CEO and said, “my client profitability is declining,” they might want to jump to the solution of downsizing staff or increasing prices.
However, the real problem might lie elsewhere. A good A3 report can prevent you from making bad decisions based on incomplete data.
Strategies to convince stakeholders of A3’s value
A well-written A3 report is, in itself, a powerful way to persuade stakeholders of its value. In one view, it maps the problem to its solution accurately. If that isn’t working, here are some additional strategies.
Make it visual: Add tables, diagrams, highlights, and even pictures to make the document visual for the stakeholders to grasp without much effort.
Back it up: Use real data and insights to support your points. Use dashboards and graphs to make them impactful. Keep it within the context of your management systems.
Enable access: Make it easy for stakeholders to review or contribute. It also helps if the document can be accessed on the go on mobile devices.
💡Pro Tip: ClickUp Dashboards are a great way to create reports that are data-driven, visually impactful, and that can be accessed and customized by team members.
Summarize this article for me pleaseSolve Problems and Maximize Productivity with ClickUp
Irrespective of the industry, geography, nature of work, or specific role, all of us need to be problem solvers.
At an individual level, you need to find ways to automate and optimize as much as possible to free up time for other human pursuits. At the organizational level, you need to minimize wastage, increase efficiency, and create higher value.
As lofty as that sounds, solving problems isn’t a one-swoop miracle. It is a collection of small steps taken over an extended period of time. Taking these small steps strategically and systematically—using a tool called the A3 report—is what differentiates a successful business from the rest.
Integrate problem-solving frameworks and techniques into your organizational workflows with ClickUp. Connect problems to data using customizable dashboards and design the right solutions. Implement them effectively with task management. Share securely and collaborate meaningfully with ClickUp.
Everything you need to stay organized and get work done.
