Business Analytics is defined as the tools and strategies that are utilized in order to measure past organizational performance, set future goals and devise action plans to achieve them. The process that uses Business Analytics for organisational goal-setting and achievement is that of Business Diagnostic Review or Organizational Diagnosis. This is an iterative model that relies on statistical analysis of historical data to determine businesses’ future needs, or identifies potential problem areas before they emerge as a point of concern .
While there are several diagnostic approaches that can be used, one of the most comprehensive one is the Force Field Analysis. Originally developed by Kurt Lewin in 1951, the premise of the model is that the difference between current and planned performance outcomes is due to certain ‘counterbalancing’ forces that are in play . These forces that prevent an organisation from maximising its output can be both internal and external.
In an organisational context, the Force Field Analysis is of the most use when a potential problem/issue has already been identified using either a SWOT (Strengths, Weaknesses, Opportunities and Challenges) or PEST (Political, Economic, Social and Technological) Analysis. The preliminary analysis also helps in compiling a list of the two sets of forces that the Force Field Analysis uses: driving forces and restraining forces .
This approach is particularly beneficial for highly complex problem solving in manufacturing companies where even the smallest of errors during the production process can lead to substantial monetary losses. For instance, if an automotive manufacturing company is forced to recall its vehicles from the market due to manufacturing faults, then a force field analysis will prove to be useful in identifying the factors that caused the malfunction. A quality check of the auto parts delivered by suppliers would be a restraining force, while irregularly scheduled safety and pressure tests would be classified as a driving force of the main issue of faulty vehicles.
References
Morrison, M. (2011, July 18). Business Diagnostic Models. Retrieved August 2, 2016, from RAPIDBI:
https://rapidbi.com/business-diagnostic-models/
