Knowledge

How to solve each kind of case, and what every word means.

Internal / External

Diagnose a performance decline by separating internal and external causes. Compare evidence, rule out weak explanations and focus the next question.

Why did it happen?
  • Internal: in our control
    • Our price and product
    • Our operations and people
  • External: outside it
    • Customers and demand
    • Competitors
    • Regulation and the economy
Top layer: keep it fixed Below: adapt to the case

Watch out: Ask 'only us, or the whole industry?' to know which side to open.

On a case

An airline's on-time rate dropped from 85% to 70%.

On-time rate fell
  • Internal
    • Aircraft turnaround time
    • Crew scheduling
  • External
    • Airport congestion
    • Winter fog in the north

Illustrative case. Figures and conditions below are assumptions for practice, not market data.

Compare the airline's on-time rate with other carriers on the same routes and dates. Assume peers remain at 85 percent while the client falls to 70 percent, including on routes without fog. A market-wide weather explanation alone cannot explain the client-specific gap.

Next compare aircraft turnaround time, crew availability and first-flight versus later-flight delays. If the first departures are on time but later flights deteriorate, investigate how delays accumulate through the operating day.

Do not declare weather irrelevant: the client may have a different airport or route mix. Match the comparison, request ground-handling and scheduling evidence, then test a targeted operational change. An internal/external split narrows questions; it does not establish causation by itself.

Sources and further reading

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