Part 25: Get Your Facts Straight

When it comes to strategically growing an organization or an idea, many times we feel like we have a good, general idea of where things are out – how productive we are, or how profitable, or how successful. But to develop an effective strategic plan, you need more specific data. You need to know where your strengths are, where your opportunities are, and where your weaknesses and threats are.

The Value of a Needs Assessment
We’ve talked before about the difference between wants and needs in a business setting, but just to reiterate, a need is a gap in results. A problem is a gap in results that you’ve decided to fix.

Many times, we confuse wants and needs with generalized statements like, “We need a goal benchmarking system,” or, “We need another designer to help us handle the work load.” In reality, these are wants until they are matched up with specific gaps in results. So, for example, if you’ve determined that you’re behind on X number of projects and won’t be able to take on any new work until X date, you are one step closer to identifying a real need for another person on your staff.

Needs assessments can help you identify these kinds of areas where you have a gap in results between what is and what should be. There are many models for needs assessments, some you can buy online and some you can just follow yourself. The model I am most familiar with is the SOCER model:

1. Scope and Plan. Identify the person spearheading the needs assessment, who is participating, and what seemingly apparent problems you are addressing. Also identify if there is any data currently available to help guide you in Step 3 – Collecting Data.
2. Obtain Participation. It is very important to involve the team in the needs assessment process. If you are addressing customer service or client satisfaction issues, you may even want to involve your external clients.
3. Collect Data. This is the most time-consuming part of the process because the goal of this step is to understand the problem area as fully as you can. If you want to improve your benchmarking, you need to collect data on past projects. If you are trying to improve financial performance, you need to understand your current accounting methods and gather all the financial data that you can. If you want to improve processes, you need to learn everything you can about your current processes.
4. Evaluate Data. To me, this is the most crucial step because what you learn from the data will drive the rest of your strategic planning. If you feel overwhelmed by the data you have collected, you might consider bringing in an outside perspective to help you see things more clearly or to highlight areas you overlooked.
5. Report Findings. This is the step where you identify possible solutions and develop ways to implement them. If you’re a small business owner, you may just be reporting to yourself and your team. Use the opportunity to solicit feedback, identify top priorities, and establish your core objectives.

Needs assessments are time consuming, and many times we put them off simply because we feel we don’t have the time, energy, or resources to devote to them. However, we can’t afford to overlook their importance because they give us the facts we need to develop stronger business plans. Today is the first day of October and the beginning of the fall quarter. Make time to look at your business objectively, do a needs assessment, and begin developing your objectives for the new year.