The paper proposes a theoretical framework that integrates the harder aspects of enterprise-wide diagnostic methodology, i.e. tools and techniques, with softer issues to understand and analyse enterprise-wide issues in the UK manufacturing SME. Enterprise-wide diagnostics application that considers hard and soft practices for managing change in a SME context is less evident in the literature and practice. Case study was conducted in the selected SME and data triangulation was achieved through on-site observations, interviews, and company reports. The use of integrated framework, influenced by Watson (1994), led to identification of several gaps between the three levels-enterprise, business, and operations, that were impacting on demand management and capacity planning. The paper demonstrates the benefits of conducting enterprise-wide diagnostic as a first step to enhance better integration between organisational levels and departments when embarking on continuous improvement journey.