Diagnostic evaluation of a company implies determining of an objective condition of chosen data in the company’s activity and their interpretation for the purpose of forming conclusions and recommendations on the evaluation of a current state of the company. On the base of a diagnostic evaluation, as a rule, the relevant management decisions are taken for realizing subsequent actions at the company.

Diagnostic evaluation of a company allows characterizing problems of an enterprise from the staff’s point of view, and also from the side of equipment, technologies, efficiency of operational activities, sales, management, projecting, and other directions.

There are several main stages in the diagnostic evaluation:

1. Preparatory stage: making the principal decision about conducting the diagnostics, its goals, and necessity of resources for diagnostics.
   
2. Planning: detail planning of conducing the diagnostics – timeline, resources, and budget.
   
3. Forming the work group, which will consist of leading specialists of an enterprise, for conducting the diagnostic appraisal. In case of engagement of outer consultants, they are also included in the work group.
   
4. Gathering materials for the diagnostic evaluation from inner and outer sources of information.
   
5. Conducting analytical processing of the data.
   
6. Comparing received results with basic data for both each parameter individually and overall information content of the diagnostic assessment.
   
7. Deciding on the necessity and priority of probable managerial decisions concerning the whole enterprise and each of the parts of diagnostics.
   
8. Realization of management decisions.