The detailed diagnosis explores the deeper causes of financial distress. Understanding root causes is needed for creating lasting solutions.
There are two dimensions to consider in the detailed diagnosis*:
Internal vs. external: Does the cause arise from forces inside or outside the organization?
Economic/technical vs. political: Are political or technical issues behind distress?
These two dimensions translate into four categories of potential causes. Examples of deeper causes are available in each category, including symptoms to look out for in your government and key questions to ask. Step 8 of the recovery process suggests possible solutions to causes we discuss here in Step 6.