DIAGNOSE

If I had an hour to solve a problem I'd spend 55 minutes thinking about the problem and five minutes thinking about solutions. - Einstein

Diagnosis is:

the identification of the nature of the problem by examination of the symptoms.

Objectives

1. Discover what is going on?

2. Narrate the challenges facing the organization in simple terms.

Approach

1. Analyze stakeholder concerns.

2. Map them to a master list of disruptions

3. Apply strategic lenses

4. Conduct a SWOT, PESTLE analysis.

5. Assess the impact of each disruption on strategy

6. Identify strategic choices and options

7. Summarize the diagnosis of the situation

8. Technique: Diagnosis, Strategic Lenses

Actors

1. Facilitator

2. Subject Matter Expert(s)

Outcome

1. A diagnosis of the situation

2. Strategic Choices and Options by Strategy Lens

Activities

Study Concerns and Disruptions

The best starting point for a situation diagnosis is to examine stakeholder concerns and map them to an overall list of disruptions facing the organization.

Disruption is:

"..a disturbance or problem that interrupts a business activity"

Disruptions are typically described as follows:

Cause, Effect, and Impact, supported by evidence in the description.

Examples:

• Aging legacy applications have higher TCOs, impacting the bottom line.

• We are rapidly losing market share to innovative competing products, which reduces our revenues

• The college faces budget issues that impact campus services spending

• Lack of innovation in college programs discourages students from enrolling

• Increasing cybersecurity threats and lack of adequate safeguards can cause harm

Apply Strategic Lenses

Strategic Lenses is a framework introduced by McKinsey (read more) . Categorize disruptions by strategic lens.

Discover Strategic Choices

Identify if the organization faces more than one choice to respond to a disruption. Document strategic choices. Select the evaluation model for the options.

Create Evaluation Model

If required create a new evaluation model.

Workflow: Manage Evaluation Models

Define Options

Capture different options with their benefits and disadvantages. Score the options using the evaluation model.

Develop Digital Transformation Posture for the organization

A digital transformation posture is a useful tool when an organization has decided to initiate a digital transformation program. It is based on stakeholders' answers to some key questions related to digital transformation.

Key questions are as follows:

1. Digital ambition

2. Technology alignment

3. Timeframe

4. Funding

5. Talent acquisition

6. Business model

7. Ownership of change

8. Vendor strategy

Each question can be assigned a score from 1 to 10. Higher scores are assigned for more aggressive or disruptive approaches, such as acquiring new technology platforms, a short timeframe for achieving many transformation outcomes, or establishing a central transformation office to manage change.

The following outcomes are possible:

1. A score below 4 represents a safe and low-risk transformation approach

2. A score between 4 and 7 represents a medium-risk approach

3. A score above 7 represents an aggressive and high-risk approach

The outcome provide a guideline for planners in future transformation activities such as addressing concerns of stakeholders and providing a yardstick to assess future decisions.

Playback

Reflect diagnosis of the situation in meetings with stakeholders to ensure consensus about the challenges facing the organization and what choices are they facing?