On many occasions, some organizations lose their north and forget to be aware of what is happening in their companies and the things that can be corrected or improved, so we want to tell you why your business needs a diagnosis, so you don’t hesitate to start doing it constantly.
A business diagnosis is a process or an evaluation tool that analyzes in depth the current situation of the company and if it is operating effectively in order to meet its business objectives. The most appropriate thing to do when making these diagnoses is to evaluate the 5 most important and recognized functional areas of all businesses, which are: direction, human resources, production or operation, finance or accounting and marketing.
Why do I need a business diagnosis?
Diagnostics are one of the first phases that a company must go through to optimize and improve its internal and external processes. For this reason, all problems point to this solution, for example:
Does your company want to sell more? Carrying out a diagnosis, you will find the possibilities that you are not taking advantage of in terms of cross-selling, or perhaps you will be surprised to see that some groups are not giving 100%, due to lack of knowledge of the product/service or lack of supervision, an unattractive commission system, etc.
Do you want to reduce expenses? With a diagnosis you will find the main deviations in the accounts, the reason and even the moments in which there are possibilities of spending more, without any control.
Do you want more committed collaborators? You will be able to detect the main reasons why your workers are not connected with the company: salary, recognition, career line, training, organizational climate, etc.
Do you want productivity to grow? You will be able to show the direct limitations of this low performance: lack of training, working conditions, lack of knowledge of objectives, lack of maximum attention capacity, leadership, poorly planned processes, etc.
Do you want greater profitability? You will be able to show where the loss of profitability is focused and this will allow you to work on your solutions much more efficiently, either by area, by product or service, by work group, etc. Once this is evidenced, you will be able to evaluate if all the resources used are necessary or not.
What are the benefits of making a diagnosis?
If you are wondering about the benefits of making a diagnosis, we can tell you that there are many advantages and even specific ones by area. Here we name some benefits:
- Discover the degree of maturity of your company, this will directly influence strategic decisions.
- Identify areas with potential development.
- Recognize drawbacks and opportunities for improvement to increase the level of efficiency and performance.
- Thanks to identifying and recognizing opportunities, propose a concrete and comprehensive action plan.
- Create analysis elements for the development of future plans.
- Reduce potential problems and be able to maximize the proper utilization of resources.
If we can mention a clear example of the benefit of a business diagnosis, let’s analyze the situation of a sector of the economy such as the insurance sector. Insurance companies are key players in the US economy, covering life and health insurance, property and casualty insurance, business and commercial insurance, and reinsurance. However, they are engaged in fierce competition with each other for market share in the US and abroad, and face competition from foreign insurers looking to expand in their home market. In addition, financial companies, such as banks and financial services companies, also challenge them in their insurance and risk management activities in the financial markets.
This is where a diagnosis plays a very strategic role, since in a field as competitive as insurance, it is important to know what is being done in order to improve and innovate both internal and external processes and offer better solutions and services to all stakeholders in the sector.
It is important that you bear in mind that the most appropriate thing is for the business diagnosis to be carried out by an external consulting company, due to its degree of specialization and objectivity. At Heinsohn we can accompany you in this process and offer you technological solutions that can help you improve some of your company’s processes.