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Historian A.J.P Taylor called the Diploma a victory for the Old Conservative nobility. The Habsburg government was reorganized on a federal basis, and the provincial diets were given the power to cooperatively pass laws with the Emperor and the Reichstrat. In a concession to the liberals, the membership of the Reichsrat was increased by over a hundred new members. However, the Diploma called for the Reichsrat to meet very infrequently, and its jurisdiction covered only part of the empire. The provincial diets were packed with the landed aristocracy, thus giving them more direct power over their own lands. Hungary was given special status in the Reichsrat through a provision that called for non-Hungarian delegates to meet separately from the whole body to discuss non-Hungarian matters. This, however, fell far short of the Hungarian leaders' desire for greater autonomy and recognition.

Almost immediately after the Diploma was passed, it became clear that it would not last long. The empire's finances continued to fail, further showing the weaknesses of the current administration. Prussia and the German Confederation began to sense a weakness in the monarchy that could be exploited, while Hungarians were furious with the few reforms they had been given. In the end, it was the German liberals who were eventually able to effect change. These liberals made up a substantial number of the most powerful bureaucrats and, while they often opposed the emperor, they were supporters of a strong centralized state instead of a weak, federalized one. Through their influence, the emperor was pressured into appointing the liberal Anton von Schmerling as Secretary of State in December. von Schmerling took to rewriting the October Diploma, and in February 1861, the emperor adopted the February Patent.

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