10 Reasons Why Business Diagnostics Are Important

Diagnosis is defined as the identification of a disorder, condition, disease or problem by systematically analysing the history or background, examining the symptoms and signs, evaluating the test or research results, and then investigating the probable or assumed causes. (http://www.businessdictionary.com/definition/diagnosis.html)

Business diagnosis works a bit like the medical diagnosis of human beings: it can be undertaken after symptoms have emerged or as a routine check up to identify problems before they get out of hand. As in medicine, early detection of problems helps make “treatment” easier and less expensive.

Business diagnostics can be used for:

  1. Checking the effectiveness of strategies and processes. Every organisation has (or should have) a series of strategies and processes to guide activities. The only way to evaluate the effectiveness of these is through business diagnostics. This allows executives to find out what is working and what needs to be tweaked or removed completely from the system.
  2. Understanding your business performance better. Business diagnostics helps executives and business owners get a better understanding of the operation and performance of their organisation. Before you can design a more effective organisation, you have to understand the status of the current one.
  3. Identification of weaknesses and strengths. Business diagnostics will identify both your weaknesses and strengths, and will help you to determine possible courses of action to follow.
  4. Identifying threats. Every business is faced with threats; they can either be external or internal. Whichever the case, identifying them before they develop into serious problems is necessary to keep your business performing optimally.
  5. Identifying and taking advantage of opportunities. Business diagnosis will help your business identify new opportunities and the best way to capitalise on these.
  6. Developing business goals. After assessing your current situation, you will be able to create goals that will help your organisation grow. Goals set after diagnoses are more achievable as they are formulated with the knowledge of the prevailing conditions.
  7. Identifying skill gaps in your workforce. Business diagnostics can be used to assess the potential of your employees along with the needs of the business, in order to help you plan training and career management activities.
  8. Identification of individuals’ strengths and weaknesses. Identification of your workforce’s strengths and weaknesses is important if you wish to create robust teams that can steer your company to success. From the information gathered from diagnosis, you can create teams with members who complement each other.
  9. Helping to improve staff motivation. Diagnostics will help you identify what motivates your employees and how to best improve employee engagement within your organisation, for optimum performance.
  10.  Improving employee engagement. Diagnostics gives you a clear idea of how much your employees are engaged. Employees who are not fully engaged are less productive and more likely to leave your organisation for “greener pastures”.

CDL insight has the tools and expertise to help you diagnose the current status of all aspects of your business.  Read more: https://www.cdlinsight.com.au/solutions/leadership-development/online-tools

Sources:

http://www.tchc.net/blog/item/business-diagnostic

http://www.businessdictionary.com/definition/diagnosis.html

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