diagnostic / needs analysis toolkit

Diagnostic / Needs Analysis Toolkit July 2012

Diagnostic / Needs Analysis Toolkit


Table of Contents Content

Page (s)

Introduction

4

Brainstorming

5

Brainwriting

6

Six Step Problem Solving Model

7-9

Wildest Idea

10-11

Fishbone

12-14

Force Field Analysis

15-17

SWOT Analysis

18-20

Gap Analysis

21-23

Paired Ranking

24-25

PEST analysis

26-28

Diagnostic Paper Example

29-30


Introduction What are Diagnostics? There are various definitions of diagnostics which include the following: Any tool or technique used to find the root of a problem Test or process used to determine the source of a problem, ie, a

diagnosis Diagnosis (Greek: διάγνωση, from δια dia- "apart-split", and γνώση

gnosi "to learn, knowledge") is the identification of the ... The process of determining the state of or capability of a component to

perform its function(s) One of the four stages of the learning cycle is Need Analysis, and therefore we should use an effective diagnostic tool for each and every project in order to identify the root of the problem and to identify potential solutions. This toolkit provides you with a number of diagnostic tools that will assist you in completing an effective Needs Analysis. Dependant on the size of the project you may decide to use one or more of the following tools….the choice is yours!


Brainstorming Overview Brainstorming is defined as a “group problem-solving technique that involves the spontaneous contribution of ideas from all members of the group." (Webster's Ninth New Collegiate Dictionary, 1987) The main principle of brainstorming is that “Criticism hinders creativity.” Method The facilitator needs to be in control throughout the brainstorming session. The method is for the facilitator to ask all participants to provide their thoughts and ideas on the problem / issue together with potential solutions. The rules of brainstorming are: Someone must record all ideas on a flipchart Everyone must participate at least one time No one may criticise Whatever comes to mind is okay A time limit must be established.


Brainwriting Overview Brainwriting is similar to brainstorming; it is a group technique used to gather data for a specific purpose, such as problem solving. The rules of brainwriting are a little different from those of brainstorming. Method Prior to the brainwriting activity, the facilitator must post several flip charts along the wall. The facilitator will write a topic / issue / problem on each flip chart and provide markers for each member of the group. Give the group about 10 minutes to write their comments on the flip charts, and then discuss. This can be repeated in order to identify potential solutions. The rules of brainwriting are: Everyone must participate in reviewing the ideas written on the

flipcharts Anyone may critique the other ideas / comments / solutions written on

the flipcharts. Keep in mind that critiquing is not the same as criticising. Written comments may include ideas such as agree / disagree, why. why not a solution will work and / or questions for the group to consider

Everyone must participate by writing comments Another way to use brainwriting is to write the topic on a board or a flip chart. Ask everyone to write comments on Post-its and place them under the topic. Have the group work together to organise the Post-its on the board, with similar ideas placed together.


Six Step Problem Solving Model Overview This is a framework to use if you are working in a team environment, and trying to complete a diagnostic on a problem that requires solving. This framework will move the group step-by-step through the process of the problem-solving model below. These six steps are a logical way to guide the group and keep them on track until the members of the group reach consensus on a solution. Method

2 Analyze the

Problem

1 Define the Problem

6 Follow Up

5 Develop/Implement

Action Plan

4 Select the

Best Solution

3 Identify/Assess

Solutions

Six Steps


Step 1 - Define the problem This step is often the most difficult because at the start of the meeting each member has his or her own perceptions of the issues. If you take the time to define the problem, however, you will get the group focused and moving in one direction. The rest of the process will be smoother and more successful. Step 2 - Analyse the problem. This step involves researching the problem (when it occurs, how often, what happens at the same time and so on) to find out what the possible causes are, testing all the theories and determining which is the most likely cause. Step 3 – Identify and assess solutions This step guides the group to identify possible solutions and assess each one carefully (cost, end results, feasibility and so on) Step 4 – Select the best solution This step involves getting a consensus on the best of the alternative solutions. It may also involve getting buy in from a final decision maker. Step 5 – Develop and implement an action plan This step requires that the group work out a plan for putting the solution in effect. The plan should designate responsibilities and time lines. Step 6 – Follow up This step ensures the success of the meeting. It requires that the group establish a way of making sure that all the steps in the plan get carried out according to schedule. After completing this diagnostic process, you may want to prioritise / agree solutions on the outputs. A couple of techniques that may assist you are the Criteria Matrix Chart and the Rank Order technique.


Criteria Matrix Chart For many problems it is necessary to identify and agree upon the criteria - or standards - which the solution must meet. Criteria Matrix Key Points: Provides an organised, visual way to evaluate each alternative solution

against the criteria Provides a quick comparison of alternative solutions by reviewing the

total scores. Note – Keep in mind that sometimes a certain criteria is essential to have, so you cannot always choose the solution based on the highest score.

Rank Order Technique

Rank Order Key Points:

Ask each individual to rank the outputs (First choice = 1, second choice = 2 etc.).

Summarise by adding together the individual rankings, then identifying the total for each output

Review the ranking, the lowest number would be the highest priority.

1

2

3

The ranking technique can be used to assist the group in making a selection.


Wildest Idea Overview This diagnostic encourages a group to consider the wildest ideas to solve a particular problem, and then use them as spring-boards to develop possible solutions. This framework can be used following the completion of a diagnostic tool that has identified the cause of the issue. This activity is particularly useful to break individuals away from considering conventional and obvious solutions to a particular problem. It is also a good warm-up activity to a solution-finding session or other activity where free association or creative thought is required. Objectives • To develop possible solutions for specific problem • To encourage creative thinking. Consultant guidance Often groups and individuals follow conventional and traditional ideas when developing possible solutions to a problem. This diagnostic method helps them break out of this ‘rutted thinking’ and generates an atmosphere of creativity. The ideas initially generated will probably be outrageous and impossible to implement. However, by trying to find acceptable ways of toning down the idea and making it more acceptable, the impossible can quite often be developed into a possible solution. The process of using an extreme impossible idea as a spring-board to generating other ideas is a demonstration of the possibilities of lateral thinking – using stimulus to follow different lines of thought. Method 1. State the problem that needs to be considered 2. Ask the group to think individually, and then share their wildest idea for

solving the problem. The idea should be capable of solving the problem but does not have to be practical, possible or even legal. (By describing it as the idea that would work but guaranteed to get you dismissed or arrested will stimulate most people’s imagination to up with ideas!)

3. Choose one of the wildest ideas to develop further. Use it as an

‘intermediate impossible’ to consider other possibilities. How might the idea be modified to make it more acceptable? Does it suggest a direction that can be followed? Are there any other ideas, which are possibilities?


4. Follow the process in step 3 with as many other wildest ideas as possible 5. Collect and evaluate all of the possibilities generated and use them in

further development of possible solutions to the problem. Debrief The use of the ‘intermediate impossible’ process in this activity is an opportunity to discuss the conventional and lateral thinking process with the group, and examine other areas where a more creative approach might be beneficial.


Fishbone Diagram Overview The ‘Fishbone Diagram’ is also known as on Ishikawa diagram after its inventor, or as a cause/effect diagram, and is a means of separating the many causes from the effects when analysing a situation. It is so called because when drawn the diagram resembles the skeleton of a fish. Situations This activity is suitable for diagnostics where there are likely to be a large number of possible contributing causes. The Fishbone Diagram will ensure that the problem is properly analysed from all perspectives, and is viewed in its totality. Objectives • To view a problem in its totality • To identify the possible causes of a problem • To separate causes from effects • To provide ideas for data collection • To supply ideas for solutions. There are five steps to drawing and using a Fishbone Diagram effectively. The first Fishbone may only begin to analyse a particularly complex problem, and so further Fishbones can be constructed based on the information on main causes identified in the first one. Method 1. Choose the problem and write up on a flipchart. A large sheet of paper will be necessary for the completed Fishbone Diagram so use a flipchart-size (A1) paper in landscape rather than portrait mode and gather the group round a table. Alternatively, use two or three sheets of paper joined together and fixed to the wall, and ask participants to work on these. Write the problem on the right-hand side of the paper in a centred position. It should be stated in precise terms. The more general the problem statement or effect, the more general will be the causes generated. This problem statement is the effect from which the group will determine possible causes. (If a real problem is not to be used by the group, choose an alternative issue that most people can associate with. For example, the causes of high petrol consumption in a car, the causes of traffic congestion at rush hour, the causes of delays in payment of invoices, the causes of absenteeism at the workplace).


2. Draw in and name ribs. Draw in the main ribs of the fish, and write in the headings of the main problem areas. The main causes can be summarised under four main headings referred to as the 4 Ms: Manpower, Methods, Machinery and Materials. For problems associated more with administrative areas, the 4 Ps are helpful as main headings: Policies, Procedures, People and Plant. These four main heading are only suggestions – some problems can be analysed with less than four headings. Some other problems may find the addition of other main ribs useful, for example Environment. Diagram 1 shows two possible outcomes for a Fishbone Diagram

3. Brainstorm causes Remind the team of the rules of brainstorming (See chapter on Brainstorming), and then brainstorm causes, writing them down on the appropriate rib of the fishbone. There is a choice of method here: either go round each rib in turn, or allow freedom to brainstorm randomly. The latter method involves more agility by the writer, but is usually the more creative. 4. Break down main causes Break down the causes further by branching out into sub-causes on the skeleton. Examine each main cause in turn and ask: Why does it happen. List the responses as branches off the main. 5. Analyse the diagram Analyse the diagram to isolate the most important causes and the ones that appear most frequently. This analysis will help to identify what data needs to be gathered, or where potential solutions can be developed.

Variations At step 3, instead of brainstorming possible causes, a group could report on data that the group members had collected on possible causes from observation and investigation between meetings. Debrief When discussing the use of the Fishbone Diagram, emphasise that the Fishbone only shows possible causes of problem. Groups should always check their subjective analysis with data.


FISHBONE DIAGRAM

Manpower Method

Material Machinery

Policies Procedures

Environment Plant

People

CAUSES EFFECT


Force Field Analysis Overview ‘Force Field Analysis’ is a change management technique widely used in group problem-solving situations. It can also be used on an individual basis to highlight the processes at work in attempting to make a personal change. Objectives • To identify the forces which are helping to introduce or support a proposed

change • To identify the forces which are hindering the introduction or

implementation of a proposed change • To identify those forces where some degree of control is possible, and to

begin a process of manipulating the forces to facilitate the introduction or implementation of a change.

Trainer guidance When attempting to make a change, despite the fact that the change is designed to improve the current situation and has been well planned, we often find that it is not implemented as planned, or even that no progress at all is made. It seems that however hard we reason that the change is beneficial, an equal number of objections are raised which counteract our attempts to push forward. This is the understanding of a force field – the forces present that are helping drive the change are being met by forces which restrain or act against the change. The process of ‘Force Field Analysis’ is designed to identify, in advance, the forces present in the implementation of a desired change, and then to facilitate positive movement towards that goal by developing a strategy to reduce the restraining forces, add to or strengthen the driving forces, or both. ‘Force Field Analysis’ facilitates change by forcing people to think together about it, and making them committed to this change through involvement. 1. Draw a force field chart by drawing a vertical line down a flipchart, representing the equilibrium point. Directly above the line write up the current situation. Write the desired situation at the top right-hand corner – this indicates the direction you wish the forces to take you. Label the left hand side of the page ‘Driving forces’, and the right side ‘Restraining forces’. 2. List all of the forces working in favour of (driving) the change. Draw an arrow pointing towards the right of the chart to indicate the direction of the force.


3. Follow the same sequence as in step 2 to identify the forces acting against (restraining) the change. 4. Once all of the main forces have been listed, then analyse them by adding some relative strengths to the forces – some will be stronger drivers or restrainers than others. The different strengths can be illustrated by drawing larger and smaller arrows. The force field is now in equilibrium. In order to make it change to progress towards the desired outcome, the restraining forces have to be reduced, the driving forces strengthened, or both. Experience has shown that if the driving forces are increased there is a good chance that an equal and opposite restraining effect will be produced, so the greatest benefit will derive from acting to reduce or eliminate the restraining forces.

First, ask the question: Which forces are open to change? Some will not be within the group members’ control, so ignore these and brainstorm ways of overcoming or reducing the forces in their control.

5. Draw up an action plan to put these ideas into effect.


FORCE FIELD CHART

CURRENT SITUATION

DESIRED SITUATON

DRIVING FORCES

RESTRAINING FORCES

⇒

⇐

⇒

⇐

⇒

⇐


SWOT Analysis Overview The SWOT analysis is an extremely useful tool for understanding and decision-making for all sorts of situations in business and organisations. SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. The SWOT analysis headings provide a good framework for reviewing strategy, position and direction of a company or business proposition, or any other idea. Completing a SWOT analysis is very simple, and is a good subject for workshop sessions. SWOT analysis also works well in brainstorming meetings. Use SWOT analysis for business planning, strategic planning, competitor evaluation, marketing, business and product development and research reports. Method To carry out a SWOT analysis, you need to use one of the below SWOT templates. Then ask the stakeholders to answer the following questions:

Strengths:

• What advantages does your company have? • What do you do better than anyone else? • What unique or lowest-cost resources do you have access to? • What do people in your market see as your strengths? • What factors mean that you "get the sale"?

Consider this from an internal perspective, and from the point of view of your customers and people in your market. Be realistic: It's far too easy to fall prey to "not invented here syndrome". (If you are having any difficulty with this, try writing down a list of your characteristics. Some of these will hopefully be strengths!)

In looking at your strengths, think about them in relation to your competitors - for example, if all your competitors provide high quality products, then a high quality production process is not strength in the market, it is a necessity

Weaknesses:

• What could you improve? • What should you avoid? • What are people in your market likely to see as weaknesses? • What factors lose you sales?

Again, consider this from an internal and external basis: Do other people seem to perceive weaknesses that you do not see? Are your competitors doing any better than you? It is best to be realistic now, and face any unpleasant truths as soon as possible.


Opportunities:

• Where are the good opportunities facing you? • What are the interesting trends you are aware of?

Useful opportunities can come from such things as:

• Changes in technology and markets on both a broad and narrow scale • Changes in government policy related to your field • Changes in social patterns, population profiles, lifestyle changes. • Local events.

A useful approach for looking at opportunities is to look at your strengths and ask yourself whether these open up any opportunities.

Alternatively, look at your weaknesses and ask yourself whether you could create opportunities by eliminating them.

Threats:

• What obstacles do you face? • What is your competition doing that you should be worried about? • Are the required specifications for your job, products or services

changing? • Is changing technology threatening your position? • Could any of your weaknesses seriously threaten your business?

Carrying out this analysis will often be illuminating – both in terms of pointing out what needs to be done, and in putting problems into perspective


Gap Analysis Overview

In business and economics, gap analysis is a tool that helps a company to compare its actual performance with its potential performance. At its core are two questions: "Where are we?" and "Where do we want to be?". If a company or organisation is not making the best use of its current resources or is forgoing investment in capital or technology, then it may be producing or performing at a level below its potential. This concept is similar to the base case of being below one's production possibilities frontier.

The goal of gap analysis is to identify the gap between the optimised allocation and integration of the inputs, and the current level of allocation. This helps provide the company with insight into areas which could be improved. The gap analysis process involves determining, documenting and approving the variance between business requirements and current capabilities. Gap analysis naturally flows from benchmarking and other assessments. Once the general expectation of performance in the industry is understood, it is possible to compare that expectation with the company's current level of performance. This comparison becomes the gap analysis. Such analysis can be performed at the strategic or operational level of an organisation.

Gap analysis is a formal study of what a business is doing currently and where it wants to go in the future. It can be conducted, in different perspectives, as follows:

1. Organisation (e.g., human resources) 2. Business direction 3. Business processes 4. Information technology

Method

Identifying Current Performance

Once a problem has been identified, the current state must be documented. For example, to identify current employee performance, conduct an assessment of the job responsibilities associated with a particular function, listing all the daily, weekly, monthly, annual, and ad hoc tasks that comprise the job description. Identify the associated skills, knowledge, and experience necessary to complete the tasks. Assess employees performing the job and rate their competency. By observing what people can do (their skills) and how they do it (their behaviour), you can determine their competency (overall effect) to ascertain the current state and any impediments. If, for example, Support Call Centre calls are taking longer than expected to resolve, a gap analysis might reveal inadequacies in staff knowledge, software infrastructure, and business process. Careful attention to


understanding how people really do their daily job can help in the definition of interventions that produce positive change management activities to address performance issues.

Identifying Desired Performance and Gap

Identifying the optimal state requires stating the performance in very specific terms so it can be compared against actual operations. For example, if (to maintain a competitive operational advantage), 50 percent of all Support Call Centre calls must be handled within one hour of customer contact, then there must an adequate tracking system in place to measure and report the volume and percentage of calls currently not handled within that time frame before a gap can be verified. You may also conduct surveys with customers and partners to obtain different perspectives on the problem to validate occurrences of the situation. This may reveal conditions that are exacerbating problems without your knowledge.

Addressing the Gap

Gap analysis results typically report both quantitative data as well as qualitative results (anecdotal evidence) that can be used in proposing solutions for closing the gap and improving performance. So, for example, if Support Call Centre calls are not being handled in a timely way, pilot programs to improve call infrastructure handling, staffing levels, employee research strategies, as well as call categorisation and handling strategies may be put in place as a direct result of conducting a gap analysis. By being able to pinpoint the specific areas needing attention, you can enhance operations in existing environments and make progress towards operational goals while improving overall quality essential for success.


Where are you now?

Where do you want to be?

Actions

The gap to be closed


Paired Ranking Overview ‘Paired Ranking’ is a decision-making method which consists of comparing each alternative with each other one on a win or loose basis. Each alternative ends up with a total of points which places it in the final rank order. This activity is particularly useful for measuring personal preferences from a number of choices (solutions, problems, criteria, objects, etc.), and measuring the amount of consensus within a group. It is often used in conjunction with a selection grid or brainstorming list to narrow down options and identify differences in values between group members. Objectives • To identify the most preferred option from a number of alternatives • To reduce the number of options or items being considered • To identify preference difference between group members.

Method

1. Decide on the list of alternatives to be compared 2. Draw up a paired ranking matrix, with each alternative chosen at step 1

replacing the letters A, B, C, etc 3. Vote on each comparison on a win/lose basis – the winning alternative

gets one point, the losing alternative gets nil points 4. Total the scores for each item and place in a final rank order 5. Compare individual ranking and remove least preferred alternatives from

the list 6. Repeat the activity until a clear winner emerges. Variations Conduct the activity as a group discussion in order to get an agreed ranking. This can be done either after an individual round has reduced the number of the options, or from the beginning.


PAIRED RANKING MATRIX EXAMPLE

ITEM

A

B

C

D

E

TOTAL

A

X

B

X

C

X

D

X

E

X


PEST Analysis Overview

PEST analysis stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. Some analysts added Legal and rearranged the mnemonic to SLEPT. Inserting Environmental factors expanded it to PESTEL or PESTLE, which is popular in the UK. The model has recently been further extended to STEEPLE and STEEPLED, adding education and demographic factors. The PEST analysis is a useful tool for understanding market growth or decline, and as such the position, potential and direction for a business. A PEST analysis is a business measurement tool. The PEST analysis headings are a framework for reviewing a situation and can also, like SWOT analysis, and can be used to review a strategy or position, direction of a company, a marketing proposition, or idea.

Method

Completing a PEST analysis is very simple, and is a good subject for workshop sessions. PEST analysis also works well in brainstorming meetings. Use PEST analysis for business and strategic planning, marketing planning, business and product development and research reports. You can also use PEST analysis exercises for team building games. PEST analysis is similar to SWOT analysis - it's simple, quick, and uses four key perspectives. As PEST factors are essentially external, completing a PEST analysis is helpful prior to completing a SWOT analysis.

The model’s factors

• Political factors are how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide or be provided (merit goods) and those that the government does not want to be provided (demerit goods or merit bads). Furthermore, governments have great influence on the health, education, and infrastructure of a nation.

• Economic factors include economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firm's cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy


• Social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. For example, an aging population may imply a smaller and less-willing workforce (thus increasing the cost of labor). Furthermore, companies may change various management strategies to adapt to these social trends (such as recruiting older workers).

• Technological factors include ecological and environmental aspects, such as R&D activity, automation, technology incentives and the rate of technological change. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation.

• Environmental factors include weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance. Furthermore, growing awareness to climate change is affecting how companies operate and the products they offer--it is both creating new markets and diminishing or destroying existing ones.

• Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products.


PEST Analysis Template

Situation being analysed: ______________________________________________________________ PEST analysis (political, economical, social, and technological) assesses a market, including competitors, from the standpoint of a particular proposition or a business. criteria examples ecological/environmental current legislation future legislation international legislation regulatory bodies and processes government policies government term and change trading policies funding, grants and initiatives home market pressure- groups international pressure- groups wars and conflicts

political economical criteria examples home economy economy trends overseas economies general taxation taxation specific to product/services seasonality issues market/trade cycles specific industry factors market routes trends distribution trends customer/end-user drivers interest/ exchange rates international trade and monetary issues

criteria examples lifestyle trends demographics consumer attitudes and opinions media views law changes affecting social factors brand, company, technology image consumer buying patterns fashion and role models major events and influences buying access and trends ethnic/religious factors advertising and publicity ethical issues

social technological criteria examples competing technology development research funding associated/dependent technologies replacement technology/solutions maturity of technology manufacturing maturity and capacity information and communications consumer buying mechanisms/technology technology legislation innovation potential technology access, licencing, patents intellectual property issues global communications

diagnostic / needs analysis toolkit

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