Today, it is time for ever faster changes and ever greater pressure. The expectations are always higher. Customers expect companies to have a tailor-made, more relevant, state-of-the-art offer that is always easier to use. They are therefore obliged to optimize their performance by identifying in particular their growth opportunities and determining the best way to ensure their future.
Many entrepreneurs often act very punctually by solving their problems one after the other, without taking height. They then have the feeling since the problems are solved that all is well. But over time, the list of problems grows. It is quite simply because the company made the economy of a diagnosis. However, this would help the leaders to know where they are going before they go!
What is a business diagnosis?
Business diagnostics is a method of valuing companies that provides in-depth analysis of key areas of management. With a deeper understanding of the organization, it is possible to solve problems in a practical and focused way, getting to the point, without wasting time on minor things. This diagnosis generally concerns the following points which are strategy, finances, marketing, human resources and all that relates to commercial operations. A business diagnosis helps to understand what are your most important areas. He’s there to prioritize: which topic needs the most attention and which can wait a little longer. It allows you to judge your level of maturity. Are you a novice or mature enough to pursue new goals? The diagnosis is there to point the finger at what needs to be done and where. It gives you the opportunity to know your mistakes and shortcomings so that you can correct them.
When do you choose to do a business diagnosis?
There has never been a perfect time to make sure your business is on the right track. The moment of a diagnosis is when you want to assess the relevance of your company’s vision and strategy in the current context; it’s when you want to analyze information to identify the root cause of problems and the most critical areas for improvement; or it is when you have to target either a problem or on the contrary a sector with high potential. In short, if you want to: prepare the future of your company or simply assess it, identify possible growth sectors, increase its profitability or improve its processes or its governance or to cut costs and save money, then now is a good time to do a business diagnosis.
What is the method for carrying out a business diagnosis?
It all depends on what is being analyzed in your business. But in general as specified above, the essential elements are. That is to say the short, medium and long term strategy. Finances, their planning, profitability, financial indicators. Marketing, how it’s programmed, online and offline marketing, customer relationships. Human resources, everything relating to recruitment but also training and the way in which we retain our employees. And then the commercial operations, in particular their process and their quality. It is then a question of asking questions.
What steps to carry out a business diagnosis?
The first step in the diagnosis is therefore to ask the right questions. The second step is to answer, in the most honest way. The more realistic the company is in its responses, the better the analysis and the resulting action plans will be. Then analyze these answers. Compare them. Are they below or above the standards? Are they acceptable for the most essential areas of the business? Finally, develop a strategy and action plan (s) to optimize places that require more work or attention and where performance is worth improving.