Once you have identified your objective, you are ready to begin researching the “problem” preventing
you from reaching your objective. Typically, research is the first step to gaining the knowledge
needed to understand the problem. But, more than research alone, you must also diagnose the
situation to get the information you need to solve the problem. Why?
Research is a process of gathering, analyzing, and interpreting information to
gain new knowledge. Its purpose is to contribute to your existing body of knowledge.
Diagnosis is identifying the cause or nature of a specific problem or condition.
It’s about determining what is wrong or why something is not functioning as expected.
A McKinsey study showed that prominent company CEOs made the right decision 52% of the time.
This blog post on why research and diagnosis are crucial to getting the correct information will
help you get the right information to make better decisions more often.
Much of the strategy is asking what is going on here. The fundamental question
is not just deciding what to do but comprehending the situation.
Navigating Business Challenges: Research vs. Diagnosis
In a dynamic business landscape, making informed decisions is paramount. Two essential processes
that drive these decisions are research and diagnosis. While they share commonalities, they serve distinct
purposes when addressing business problems or seizing opportunities.
Much of the strategy is asking what is going on here. The fundamental question
is not just deciding what to do but comprehending the situation.
In this blog post, I explore the differences between conducting research and performing
diagnosis in the context of solving business challenges and capitalizing on opportunities.
The Art of Research
Research is a systematic and comprehensive exploration of subject matter, often involving data
collection, analysis, and interpretation. Business research is used to understand markets, industry
trends, customer behavior, and competition. It’s a tool for acquiring knowledge to shape strategic decisions.
Following is an outline of this discovery process.
Scope: Business research can be extensive, aiming to understand a particular area comprehensively.
For example, a company may conduct market research to assess consumer preferences and industry trends.
Objectives: The primary objective of business research is knowledge acquisition. It seeks to answer
questions and uncover patterns that can inform strategy, product development, marketing campaigns, and more.
Data Collection: Researchers gather data from various sources, such as surveys, interviews,
market analysis, and historical data. This data is analyzed to extract insights.
Outputs: Research outcomes are often reports, market analyses, whitepapers, or data-driven recommendations.
They contribute to the body of knowledge and guide future actions.
Nature: Research is an ongoing process that only sometimes leads to immediate solutions.
It lays the foundation for informed decision-making and can be used in various business contexts.
The Science of Diagnosis
Diagnosis is a focused inquiry to identify the root cause or nature of a specific problem or opportunity.
In a business context, diagnosis is instrumental in pinpointing issues within an organization, product,
or process that help determine the cause of the situation or problem.
All of this enables you to determine how you might solve the problem.
Scope: Diagnosis has a narrow scope, concentrating on a specific issue or opportunity.
For instance, a business might diagnose operational inefficiencies affecting production output.
Objectives: The primary objective of diagnosis is to uncover the cause of a
problem or the nature of an opportunity. It seeks to answer the “why” behind a situation.
Data Collection: The data collected in a diagnosis is tailored to the specific issue or opportunity
under investigation. It may involve examining financial records, conducting performance audits, or assessing workflow.
Outputs: The output of a diagnosis is a precise determination of the problem’s cause or the
nature of an opportunity. It serves as the foundation for implementing targeted solutions.
Nature: Diagnosis is action-oriented, with its findings directly influencing decisions
and solutions. It is typically problem-focused and aims to drive immediate improvements.
Both research and diagnosis are invaluable tools in the business toolkit. Still, they serve distinct roles in problem-solving and opportunity seizing.
Research provides the knowledge and context necessary for informed decision-making, offering a broader perspective.
Diagnosis, conversely, narrows the focus to identify specific issues or opportunities and is instrumental in implementing targeted solutions.
Successful businesses often employ a combination of research and diagnosis, recognizing that a holistic approach
Decision-making involves understanding the broader landscape and addressing specific internal challenges.
By knowing when to research and when to diagnose, organizations can navigate the complex
terrain of business with confidence and agility, turning challenges into opportunities for growth and success
.
What are the benefits of researching and diagnosing when
confronted with a complex problem or risky opportunity?
Combining both research and diagnosis when confronted with a complex problem or a risky opportunity
offers numerous benefits that can significantly enhance decision-making and problem-solving processes:
Comprehensive Understanding: Research provides a foundation of knowledge and data while diagnosis
It adds depth and context. Together, they offer a more comprehensive understanding of the situation, enabling a more accurate assessment.
Enhanced Problem Framing: Research helps identify the core elements of a problem or opportunity,
while diagnosis allows for a deeper exploration of its underlying causes, contributing factors, and implications.
This process leads to a well-framed problem or opportunity statement.
Informed Decision-Making: The combination of research and diagnosis equips decision-makers
with the information to make well-informed choices. It reduces the reliance on guesswork, particularly in complex or risky situations.
Risk Mitigation: Diagnosis helps identify potential risks and challenges that might not be immediately
evident through research alone. This proactive approach allows for risk mitigation strategies to be developed.
Innovative Solutions: Diagnosis provides information that encourages creative thinking by uncovering
hidden connections and perspectives. It can lead to innovative solutions that are not apparent solely through research.
Resource Allocation: Research and diagnosis assist in identifying where resources should be allocated
for the most significant impact. This allocation ensures that efforts focus on the most critical
aspects of the problem or opportunity.
Efficiency: While research provides a wealth of information, diagnosis helps sift through the data to
extract what is most relevant. This efficiency saves time and resources by concentrating efforts on critical areas.
Adaptability: Combining research and diagnosis allows for flexibility in decision-making. New insights
or changes in the situation can be accommodated more readily, ensuring that strategies remain relevant.
Clarity in Communication: A combination of research and diagnosis results in more precise and
compelling communication of findings and recommendations to customers, stakeholders, or team members.
Continuous Improvement: Integrating research and diagnosis fosters a culture of constant improvement.
Organizations and individuals become better equipped to tackle future challenges and opportunities effectively.
Alignment of Objectives: Research and diagnosis help align objectives and strategies with the underlying
issues or goals. This alignment ensures that actions taken are directly relevant to addressing
the problem or seizing the opportunity.
Long-Term Sustainability: Solutions derived from a combination of research and diagnosis are often
more sustainable because they address root causes and consider long-term implications.
Confidence in Decisions: Decision-makers can have greater confidence in their choices
based on a thorough understanding of the situation through research and diagnosis.
Minimized Guesswork: The blend of research and diagnosis reduces guesswork and assumptions,
reducing the likelihood you will make decisions based on incomplete or biased information.
Better Problem-Solving Culture: Organizations prioritizing research and diagnosis foster a culture
of evidence-based decision-making and critical thinking, leading to better problem-solving capabilities.
Example:
According to Edward de Bono, diagnosis can transform one’s view of the situation, bringing a radically
a different perspective to bear—for example, IBM.
IBM was struggling in the computer market in the 1990s. Many products were involved in complete
computer systems, and many companies specialized in selling each. Competition for each of the products
was intense. When Lou Gerstner became CEO in 1993, he examined how IBM struggled against the competition.
His research and diagnosis concluded that IBM was the only company that could deliver large, fully customized
computer systems. He changed the company from focusing on individual products to a company focused on a completely
integrated computer system company. IBM was the only company in the market that could do that.
That insight turned the company around and made it the premier company in the market.
Conclusion
Combining research and diagnosis enhances decision-making, mitigates risks, fosters innovation, and ultimately
leads to more effective solutions for challenging problems or risky opportunities. This holistic approach ensures
that decisions are based on a deep understanding of the situation and its underlying dynamics.
