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Product Management Root Cause Analysis Question: Investigating sudden drop in financial data reconciliation accuracy
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Nextsprints

Updated Jan 22, 2025

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How can we explain the sudden 25% decrease in data accuracy rates for Ridgeline's automated reconciliation feature over the past two weeks?

Problem Solving Data Analysis Technical Understanding Financial Services Investment Management RegTech
Root Cause Analysis Product Troubleshooting FinTech Data Accuracy Automated Reconciliation

Introduction

The sudden 25% decrease in data accuracy rates for Ridgeline's automated reconciliation feature over the past two weeks is a critical issue that demands immediate attention. This analysis will systematically identify, validate, and address the root cause while considering both short-term fixes and long-term implications for our product strategy.

I'll approach this problem by first clarifying key details, ruling out external factors, and then diving deep into our product ecosystem. We'll break down the metric, gather relevant data, form hypotheses, and conduct a thorough root cause analysis. Finally, we'll develop a comprehensive plan to validate our findings and implement solutions.

Framework overview

This analysis follows a structured approach covering issue identification, hypothesis generation, validation, and solution development.

Step 1

Clarifying Questions (3 minutes)

  • Looking at the timing, I'm thinking there might have been a recent system update. Has there been any significant change to the reconciliation feature or related systems in the past month?

Why it matters: Recent changes often correlate with performance shifts. Expected answer: Yes, there was a minor update two weeks ago. Impact on approach: If confirmed, we'd prioritize investigating that update.

  • Considering user segments, I'm curious about the distribution of this accuracy decrease. Is the 25% drop consistent across all user types, or is it more pronounced in specific segments?

Why it matters: Helps narrow down if it's a universal issue or segment-specific. Expected answer: The decrease is more significant for enterprise users. Impact on approach: We'd focus on enterprise-specific factors if this is the case.

  • Regarding the accuracy metric itself, has there been any change in how we define or measure data accuracy for the reconciliation feature?

Why it matters: Ensures we're comparing apples to apples in our analysis. Expected answer: No changes to the metric definition or measurement. Impact on approach: If changed, we'd need to reassess our historical data comparisons.

  • Thinking about external factors, have we seen any unusual patterns in data sources or integrations that feed into the reconciliation process?

Why it matters: External data quality can significantly impact our accuracy rates. Expected answer: No notable changes in external data sources. Impact on approach: If changes are identified, we'd investigate those specific integrations.

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