Phase 2: Diagnosis

Now that you have segmented your product and/or services and identified the key one(s), you must select one or more for detailed study.

In this phase, you will be diagnosing the key products and services and organization's internal and external environments using the Six Systems Diagnostic Model

Begin your diagnosis by applying this model. This model will help you identify the key internal and external systems or factors directly impacting the overall organization and key products and services you selected for study. It will also aid in determining the strengths and weakness, threats and opportunities (SWOTs) each face. The SWOTs analysis will lay the groundwork for the development of appropriate strategies. The analysis is important to the planning cycle. If the team gets it wrong, or doesn't complete the analysis, the strategic plan won't lead you to where you want to go. 

The Six Systems Diagnostic Model

This diagnostic model will help you identify and assess the impact that six internal and external factors have on the overall organization and its key products and services.

Appropriate generic checklists are provided below to assist you in identifying factors that give rise to the the external opportunities and threats and internal strengths and weaknesses facing your key product and service groupings and the overall organization. There may be certain factors which are common to your specific industry sector and not mentioned on our generic forms. Simply identify them and list them in the space provided on the checklist. Copies of these checklists are available for download.

Threats and opportunities to products and service groupings will emerge from external systems such as:

1. the business Environment in which it operates, 
2. the Markets and Clients it serves, and 
3. its Industry structure and Competitive position. 

Strengths and weaknesses to product and service groupings will emerge from internal systems such as:

1. the Marketing mix of the business (price, promotion, product and place - the 4Ps), 
2. the Internal resources of the business (human resources. culture, systems, processes and management skills), and 
3. the Inputs of the business (money, man-power, material and machines - the 4 Ms) 

In addition to the above mentioned checklists, more detailed external and internal system forms are available to assist you with your analysis and are available for download. However, the checklists should be completed before entering information on the more detailed forms. Only the more important factors should be transcribed onto the various forms and then rated and discussed with the planning team members.

Key Issues and Challenges

Using all the information developed during its SWOT analysis, the team can now move on to summarizing the most important internal and external challenges facing the organization and its key products and services. The Diagnosis Summary Form is a useful tool for this purpose. Once these major challenges have been identified, recorded and their importance rated, the team will be in a position to define the key issues facing the organization.

This will complete the diagnosis element of Phase II. The team can now continue on to Phase III to develop the appropriate strategies to address these issues.

System I - Environment

The environment in which an organization operates is impacted and influenced by Government, the Economy as well as Socio-Demographic and Technology factors (GEST). Review these factors, ascertain their relevancy and determine their impact on your markets. While not all of these generic factors will necessarily apply to your situation, the System I Form - Environment will help you record the ones which have a bearing on your company. Feel free to record additional factors which do not necessarily fit under these headings but yet mpact on access to your markets.

System 1 Checklist- Environment System Factors

Diagnosis Summary Form

Now that you have completed the diagnosis of the internal and external systems, the team's findings should be summarized. Use the Diagnosis Summary Form available for this purpose.

After completing the form, you should summarize the key issues in a few sentences, explaining if they are patterns, trends, or problem areas. See if they are opportunities which can be exploited.

Remember that key issues and or challenges can include positive and negative statements. They should not simply be viewed as problems. Now that your diagnosis is complete, you may now continue the process with the development of strategies and tactics in Phase III.