Organization Diagnostic:

Understanding Your Customers, Aligning Your Organization for Breakthrough Results

Authors: Stanley Labovitz, Dr. Naresh Makhijani, Sherni Makhijani

Organizational Diagnostic

The world is fast changing, and C-levels in organizations are facing many challenges due to climate change, technological disruption, political conflicts, unstable economy, hybrid working, and changing business models. Yet, C-levels are expected to show business growth.

Gartner survey of CEOs in 2022-2023 showed that their top prioritiy was growth.

Also, Citizen’s Bank (2023) showed that many organizations are looking to Mergers & Acquisitions for growth.

During these challenging times, it is very difficult to make decisions in board rooms. Whom do you listen to? The director (who shouts the loudest), or the so-called experts/consultants, or the voice of customers?

Companies spend millions of dollars on consulting, training, and coaching to try and solve this headache. The issue is the inability to effectively deploy and execute business growth strategy. Customers are becoming the most important part of any business, but getting customers is proving to be difficult for many. This is due to ageing population in most developed economies, and charging higher prices is being met with resistance; lowering costs seems to be the viable alternative.

Today, organizations need to align their strategy, people, processes, and their ecosystems behind delivering the customer value. This customer value will be driven by increasing employee engagement.

According to PWC (2018), companies that deliver superior experiences for both consumers and employees are able to charge premium, as much as 16% for their products and services

So the question is: how do we link this employee engagement to better operational performance in order to increase customer satisfaction for higher profitability and growth? Traditional management tools do not provide the solution to this problem. Organizations need to discover the components of these factors which, when aligned, will create breakthrough results. Organization Diagnostic allows us to understand the components of these factors, align them, and prioritize key actions to drive results.

Organization Diagnostic is defined as critical to understanding organizational problems, identifying the underlying causes and selecting appropriate interventions regardless of whether the change process is planned or emergent (Meaney and Pung, 2008).

Organization Diagnostic is not a survey. It uses next generation AI tools to accelerate corporate growth for any business. A good tool for this diagnostic is Predixxa, which is like jet fuel for rapidly accelerating profitability, growth, and valuation of your organization. Intangibles are the velocity of growth.

The Organization Diagnostic process can be implemented in 3 steps:

Step 1: Gap Analysis, understanding the areas of diagnostic and getting input from stakeholders. What are the components of diagnostic?

Collect inputs from various stakeholders, measure the gap between as/is and to be. Collection of inputs from various stakeholders can be done through interviews, online questionnaires, etc. There are benchmark questionnaires for various industries in various countries, but such questionnaires can also be customized for each organizations specific needs.

Step 2: Priority Matrix, after the data is collected, it is analyzed using Artificial Intelligence/Machine Learning (AI/ML) software (Predixxa). The Diagnostic provides a predictive matrix (using various mathematical frameworks). It is a list of high priority areas where performance is low and are prioritized for first action. The analysis of diagnostics provides a snapshot of the current state of organizations. Which areas/geographies/demographics are we doing well at? What are the areas we need to improve upon?

Predictive Matrix

From the list of prioritized important projects, the organizations can start taking action on the key projects to improve performance.

Step 3: Continuous Action, the organizations need to engage their teams down to level of manager/supervisors. Each manager gets a feedback on actions to take, and development priorities based on the AI/ML. 

Managers’ Report: Zoom in on each manager individually, so they can understand their individual performance and how they can improve. This provides situational awareness to managers, if they are misaligned and gives actionable insights on how to develop them into great leaders.

Managers Report

This Diagnostic can be done in 4-5 weeks, and continuous action is an ongoing process. Organization Diagnostic can be used to rapidly grow organizations. It provides an X-ray on your organization intangibles. 

There are many benefits:

1. Focus on key actions based on customer inputs 

2. Align the organization behind the key goals 

3. Engage your managers/supervisors to get breakthrough results by individual action

CEOs, HR Directors, and Managers benefit from Organization Diagnostic in specific ways: 


  • Increase the enlargeable value of company, and hence, valuation 
  • Understand the organization dynamics in detail 
  • Understand the customer expectations and align people process, and products 
  • Get prioritized list of strategic initiatives to get breakthrough results 

HR Directors: 

  • Get inputs to increase employee engagement and productivity
  • Get slice & dice view of organization down to level of managers
  • Input to turn managers into leaders


  • Feedback to think of managerial style 
  • Input to become World Class Leaders

With organization diagnostic, a wireless communications company achieved:

  • New customer gains improvement of 116% 
  • Average cost per gross customer gain has decreased 23% 
  • Customer and employee satisfaction indicators have increased in all markets
    and at corporate headquarters
  • Customer churn has reduced 11%, equaling $35,000,000 gain
  • Overall cash cost per unit has decreased 13%

Today, many organizations are using this framework/tool in North America and it is slowly spreading out to other parts of Europe. A McKinsey study showed that achieving 13.4% profitability growth requires only 1% reduction in fixed costs, 1% increase in volume of sales, and 1% reduction in variable cost.

Interested to grow profitability by 13%? You can watch the video, attend the webinar on June 27th 2024 or contact the experts.

Contact Experts

Stanley Labovitz

Dr. Naresh Makhijani