Organizations do not exist by themselves in a vacuum; they are a part of an interactive and dynamic environment (Hassin, 2010).

Modern organizations are faced with declining budgets, growing competition, change of laws, globalization and changing organizational alliances and missions with considerable pressure to meet or exceed stakeholder satisfaction. No organization is in a particularly stable environment; even traditionally stable organizations have witnessed and will continue to experience turbulent change. The dynamic and changing environments that organizations face today require adaptation, calling for deep and rapid responses (Robins and Judge, 2009).

To respond effectively and avoid wasting resources, decision makers need to diagnose organizational conditions, plan changes carefully, and apply appropriate technologies and management techniques. By effectively doing this, organizations will gain the ability to compete on several dimensions in order to meet stakeholder satisfaction. The purpose of organizational diagnosis is to establish the widely shared understanding of a system and, based on that understanding, determine whether change is desirable.