Due diligence as a management tool

Due diligence is a powerful  management tool. It is usually applied to senior managers and evaluating their contribution and effectiveness in meeting the organisation’s objectives towards the overall strategy.

It is often applied in times of change within the organisation or when the organisation is considering a process whereby it may join together, either by way of merger, acquisition or formation of strategic alliances or entering into collaboration with strategic partners. It can be a great idea to bring in Management Due Diligence Consultants when facing such business milestones.

As a tool it identifies the roles and responsibilities and ensures that strengths and weaknesses of of the management team are taken into account when recruiting and selecting members of the management team.

The requirements of due diligence require the setting of clear defined objectives, assessment of strengths and commitment by the team to review and adapt their strategy in line with conclusions they reach.

HUMAN Capital planning.

This concept allows senior management teams to consider the contribution made by staff to the strategic success of the organisation

It is broadly based upon eight principles:

  1. Value staff as assets rather than the major cost to an organisation (Wages)
  2. Instill in employees throughout the organisation the culture of the organisation an empathy with the mission statement and vision of the SMT
  3. Allow managers to accept the responsibilities of their role in achieving results and encouraging staff to visualise these results.
  4. Use logical and basic building blocks to form the organizational structure. Ensure this is appropriate to the organisation and its target audience.
  5. The Human Resources function is an integral part of the organisation as opposed to a ‘bolt on’ to satisfy legislation.
  6. Maintain an approach to information management to promote the corporate and business strategy
  7. Training and development of all employees is an essential component of staff development
  8. Whilst stability of leadership is essential the awareness that change is a constant

Once an organisation has set its objectives and goals it must set in place long term plans for the development of the employees to ensure they deliver their best. This increases the likelihood of a successful business.  Managers must regularly interact and consult with employees to gain understanding of their expectations from the organisation and their growth within the company.








Award-winning writer, blogger, social media consultant and charity campaigner. Social Media Manager for BritMums, the UK's largest parent blogging network Freelance clients include Firefly Communications and Save the Children UK. Works with brands on marketing projects. Examples include Visit Orlando, Give As You Live, Coca-Cola and Kodak. Cambridge Law graduate with many years experience working across three sectors in advice, media relations, events, training and project management. Available for hire at affordable rates.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: