“Organizational Diagnostics as a method of healing the company “…
Often the work of consultants in the organization of the customer resembles the notorious doctor’s appointment, when a patient “diagnosed with medical issues” who has made his own diagnosis, requires an immediate effective treatment from the doctor. So the owner believes that he himself knows the weaknesses of his company and he needs only immediate effective action to address them. And the help of employees to specialists of a consulting company consists mainly in getting into a debate about how the word marketing should be pronounced, which does not play any role for their daily practice, but they restrict its functions to studying competitors’ prices in order to offer lower, than market ones, believing that they will thereby ensure the competitiveness of their product. However, the task of organizational diagnostics does not come down to pulling the competencies of the customer’s personnel to the required level, but consists in deeply “immersing” the consultants in the customer’s organization, their painstaking detailed work lasts from three months to six months, which makes it possible to become related to it and reach the level of all performers, review the workflow, conduct an audit of the staff, study the ongoing processes, in order to develop standard techniques for their improvement and give comprehensive advice to eliminate the shortcomings. The recommendations proposed by business consultants are not an imposition of their views on the leader, but are the result of a review of the organization’s comprehensive activities.
The absence of a certain sequence in conducting organizational diagnostics does not mean the superficiality of the process; rather, it resembles the children’s game “Mosaic”, when an integral, conceived picture is built from the total mass of scattered parts into separate puzzles. Now let’s take a detailed look at the components of organizational diagnostics and indicate what consultants pay attention to:
1. Marketing activity – the construction of a sales system is considered and advertising activities are analyzed.
2. Construction of production processes – the effectiveness of all processes is studied and the possibility of their improvement is established.
3. Logistics – it is determined how correctly the records and movement of goods are kept.
4. Financial activities – if we are talking about a small company, we can limit ourselves to studying the accounting functions of accounting. Moreover, if planning and financial analysis is carried out by management, you should understand how it is built and offer better ways. It should be noted right away that the functions of business consultants do not include financial audit and assessment of financial indicators, only ongoing processes are studied. For most companies, managing the budget in the “manual mode” is difficult, because endless morning meetings of top managers on the distribution of cash flows turn into a heavy duty. To translate this work into automatic mode is the task of organizational diagnostics.
5. Management staff – here you need to understand how the organizational structure is built in relation to staff: either the staff is selected for the organizational structure, or the organizational structure is formed for specific people. The latter is often observed in Ukrainian companies, where the owners act on the principle: “how can you not please your own little man,” which entails the lack of necessary competencies for employees in senior positions. Therefore, you should understand what prevails in this organization: custom-made “for yourself” personnel, or, nevertheless, the selection was made for the organizational structure. Such a process is partially reminiscent of a personnel audit, i.e., the identification of employees who do not correspond to organizational processes in their competencies. As a rule, there are two ways out of this situation: to train the missing knowledge of employees or replace them. Here, again, the owner decides for himself what is more important for him as “godfather” or an organization where the competencies of the personnel must meet the goals and objectives of the company.
The listed components are technical, therefore, they can simply be well developed, like all the chassis of a car. But in the process of movement, the driver plays an important role – the one who controls the machine and his vision of the road along which the movement will take place. Therefore, a more responsible part of the work of consultants will be devoted to identifying the strategic objectives of the company and regular management to ensure their implementation.
6. Strategy – first of all, it is necessary to determine where the company is going and where it wants to be, only then to optimize the processes and decide whether the organizational and functional structure corresponds to the chosen strategy.