Identify the Business Opportunity
Clarify the Situation
External Issues
1. What macro issues are affecting the business?
i) Customer service needs
ii) Demographics
iii) Geographic needs
iv) Strength of demand
2. Increasing competition
i) New competitors
ii) Changes in barriers to entry
iii) Price competition
iv) Service competition
Internal Issues
1. How is the company performing financially?
a) Versus historical performance
b) Versus its competition
2. What strategic or organisational initiatives are planned or underway that affect the
business?
Define the Problem
1. What is the perceived problem?
a) Declining/lower growth revenue stream
b) Reduced profitability (i.e., pricing competition)
c) Higher costs (i.e., cost of operations)
d) Poor quality of service/information
e) Timeliness of data/service
2. Who views this as a problem? Who believes a problem exists?
a) Senior management
b) Stockholders
c) Customers
d) Middle managers
e) Sales/customer service
f) Office support (i.e., accounting)
3. Is there a “burning platform” to resolve this problem?
Qualify the Problem
1. How significant is the problem? What verifiable evidence exists to identify the problem?
a) Significant impact on the business
b) Relatively small issue
i) How can this be a “burning platform” if is small?
c) Unknown
i) Are they willing to investigate via a diagnostic
ii) Can we charge for the diagnostic as a paid-for proposal?
2. Who or what does the problem impact?
a) Customers
b) Other departments
c) Vendors
3. What areas of the business are considered part of the scope of the projects?
4. What might happen if this problem persists?
Complete the Vision – Defines the goals and objectives of the project
1. What would the world look like if the problem was gone?
a) Zero errors
b) Immediate information
c) Lower costs/improved cash flow
d) Improved margins
e) Higher revenue growth
f) Streamlined processes
g) New systems
h) Better cycle times
2. What will increase or decrease as a result of eliminating the problem?
Understand the Reward
1. How would you benefit from the elimination of the problem?
a) Quality
b) Timeliness
c) Cost
2. How do you know you are successful in solving the problem?
3. How does management intend to handle the reward?
a) Reduced payroll through attrition
b) Layoff of personnel
c) Savings with no personnel reductions
Identify the Barriers
1. What has stopped you from solving this problem? What barriers exist which inhibut
your ability to implement the solution?
a) Weak commitment
b) Prior failures
c) Inadequate systems
d) Lack of vision
e) Turf battles
f) Too many initiatives
g) Confusing priorities
h) Lack of money
i) Legal Restrictions
j) Company history
2. How ready is the organization to embrace change?
a) Long-time employees
b) Low-skilled versus highly-skilled employees
c) Employee satisfaction
3. Why has the company contacted consultants to help them with their problem?
Understand Communication
1. Who are the organization’s key decision makers in pursuing this initiative?
2. Has the problem been discussed with the decision makers to obtain their feedback?
a) Impact on the business or its customers
b) Magnitude of effects
c) Vision of change
d) Potential rewards
e) Barriers and other issues
3. What was their reaction? Did they provide direction on how to pursue the opportunity?
Assess the Available Resources
Timing
1. Is there a date or deadline by which results need to be obtained?
2. What is the perceived timing of the project?
Division of Labour
1. Can the company provide resources to assist in the project?
a) Full-time project participants
b) Part-time commitments
i) Leadership
ii) Executive steering committees
2. What constraints exist on resources?
Funding
1. Has a budget been established for this initiative?
a) If so, how much?
b) If not, how will the project be funded? This may require a self-funding project.
Know the Decision Process
1. Will a Request For Proposal letter be issued?
2. What is the sequence of steps that leads to a final decision on the proposals?
2. Who is involved in each step? What is decided?
3. What criteria are used to judge each proposal? What information is needed to make an
informed decision?
4. What objections might you expect?
5. Who has to be convinced this initiative is a good idea?
6. Does anyone have a vested interest in the project not happening?
