What it is
An audit is the investigation and documentation of the current operational conditions. This requires actively producing relevant information, followed by extrapolation and synthesis of that information. All of which is organized and formatted to serve as a reference for the rest of the project.
This step serves the same role as the steps a doctor might take when a patient complains of a symptom: order an MRI, take blood work, review their health records, and research some similar case studies. This information plays a critical role in diagnosis, as well as forming a treatment plan.
Why it’s important
Like an X-ray or MRI, an audit of the current state provides the visibility and knowledge that’s required to:
- Diagnose the problem and understand its scope
- Identify causes and contributing factors
- Determine various ways to address the problem
- Plan and implement a solution
- Determine the success of the solution
Business operations — just like the body, buildings, cars, and cities — are complex systems. Any change has the potential to destabilize the whole system.
Imagine an auto mechanic fixing an unidentified clunking sound without running any diagnostics. It just won’t work.
That’s why it’s critical to start the improvement process by taking a “snapshot” of the current state.
What’s the result
The audit step produces a report, which provides a clear picture of the current state. This snapshot plays a critical role in the success of the project. The strength and accuracy of the audit report determines the quality of the final analysis. In turn, the final analysis determines the strategy and tactics of solving the target problems.
The report itself is designed to receive critical inquiries and validate hypotheses formed during analysis. It will contain:
- Summaries and summations
- Extrapolations and projections
- Key documentation
- Description of methodologies
- Index linking to the full corpus of evidence collected