C2 Diagnose needs and analyse the business
This is about helping clients to build a clear, evidence-based picture of their business: where it is, where it is heading and what needs to change. It involves gathering and analysing information, using recognised diagnostic tools, separating the symptoms of problems from their causes and agreeing priorities. Wherever possible you should work in a way that helps clients develop these analytical skills for themselves.
What you need to show
- C2.1
Invite the client to share their own view of how the business is performing, where it is heading and what matters to them and its stakeholders
- C2.2
Gather and structure information about the client's business, its market and its operating environment, using appropriate questioning, data and research
- C2.3
Use recognised measures and diagnostic tools with the client to build a shared understanding of where the business stands now
- C2.4
Distinguish between the symptoms and the root causes of business problems
- C2.5
Help the client pinpoint the opportunities open to the business and what is holding its performance back
- C2.6
Help the client weigh up possible changes in terms of their objectives, the risks and benefits, and the resources they can draw on
- C2.7
Encourage the client to set objectives for the short, medium and longer term that are realistic, precise and stretching, for themselves and the business
- C2.8
Develop clear, evidence-based recommendations that support the client's decision making
- C2.9
Agree with the client the priorities and the way forward, and help them record it in a form of plan suited to the business
- C2.10
Help the client involve other stakeholders and build their support for the way forward
- C2.11
Build the client's own ability to analyse their business, so they rely less on outside help over time
What you need to know and understand
- C2.K1
Qualitative and quantitative diagnostic techniques (for example SWOT, PESTLE, five forces, business model and value proposition analysis, benchmarking and maturity assessments)
- C2.K2
Key performance indicators and other measures of business performance, and how to read them
- C2.K3
How to find and use reliable sources of business and market information, including official statistics and online data, and how to judge their quality
- C2.K4
Problem definition and root cause analysis techniques
- C2.K5
Techniques for identifying and assessing business risk
- C2.K6
The typical challenges and opportunities for businesses of different sizes and stages, and in different business models (including social enterprises, family businesses, franchising, licensing and distribution agreements)
- C2.K7
How to spot trends and developments likely to affect the client's business (for example customer demand, new technology including AI, regulation, energy and climate, and international trade)
- C2.K8
How to set objectives, and how to structure a business or growth plan that suits the size and needs of the business
- C2.K9
How to map stakeholders and their influence, and how to win their backing
- C2.K10
How to understand a business's culture and what drives, enables and limits the people in it
- C2.K11
How social, cultural and religious values can shape the way people run their businesses
Evolved from
Business Support 2 (Help the client to analyse the business and decide the way forward); Business Information 1 and 2 (in part); Business and Enterprise Support (2013) units 2, 5 and 8.