Business analysis isn’t just for technical documentation; it is a powerful strategic lens that should be used at every level of an organization. When applied correctly, it transforms vague desires into actionable work with insightful outcomes.

Today, we’re looking at a fundamental skill: Identifying the actual problem.

Most organizations fall into the trap of mistaking goals for problems. Let’s look at two common examples:

Perceived Problem 1: “We need more customers.”

Perceived Problem 2: “We need to improve our operational efficiency ratio.”

Here’s the hard truth: Neither of these is an actual problem. They are aspirations—perhaps even business objectives—but they aren’t problems.

Let’s dive into “We need more customers.” On the surface, it sounds like a no-brainer. More customers equals more money, right?

Not necessarily. In reality, the cost of acquiring a new customer can often outweigh the revenue they generate. In a retail setting, more foot traffic doesn’t guarantee more sales; it only guarantees you’ll need more resources to manage the crowd.

When colleagues told me, “Jo, we need to do A, B, and C so we can get more customers,” I always asked: “What problem are you trying to solve by doing A, B, or C?” The question often surprised people. A common response was “The problem is we need more money!” In financial services, we are conditioned to equate “customer growth” with “success.” But that’s a surface-level metric.

Digging for the root cause

What happens if we launch a massive campaign and “buy the business” with cash incentives or unsustainable rates?

How do we know those customers will be profitable?

Do we even have the infrastructure to service them properly?

To build a real strategy, we have to ask the uncomfortable questions:

Are deposit volumes low, limiting our ability to lend?

Are we losing existing business through “quiet churn”?

Why are people not investing with us?

There could be 100 reasons why deposits are dropping. Signing up a thousand new customers might make the “New Customer” chart look great, but it won’t fix a leaky bucket or a fundamental lack of trust.

We talk a lot about “data-driven decision-making,” yet we often barely scratch the surface of that data. Instead, we rely on assumptions made during two-day executive retreats. The result? A “strategic plan” that is little more than a collection of fine word salads—spending more time on the phrasing of a BHAG (Big Hairy Audacious Goal) than on actual analysis.

Strategies have become overly complicated, filled with fancy sentences but lacking the “why.” They fail to engage the company because they aren’t addressing the real problems.

The Bottom Line: If you are unable to effectively service your existing clients, how is bringing in more going to solve your problem?