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Success beyond survival is determined by a willingness to embrace change, develop shared goals and manage with both eyes on the future while recognizing past accomplishments.
Demand for operational efficiency increase each year to counter the effects stagnant and delinquent customer accounts and the increasing service demands. Most businesses fail to consider overall value performance as they create new policies and procedures designed to meet the shifting needs of the market, industry or strategy. The result may be non-value added activities that create high operational inefficiencies.
Development for Business Success is a project that incorporates most of our management consulting services. Development for Business Success is a methodology of integrating the disciplines of traditional financial management, operational management, quality, and information systems. In summary it is the process of translating an organization's direction into specific departmental results and resource requirements.
Performance Plans provide the mechanism for integrating an organization's strategic goals with departmental or functional objectives into a financial plan that is based upon operational performance measures. It is an organizational approach to supporting the strategic and tactical objectives of the company. Traditional financial management principles include budgeting and reporting. Operational management techniques include management accounting principles (cost accounting and unit cost) and quality and productivity management tools such as control charts and staff training. Information integration is the effort to effectively and efficiently deploy the technology tools and breaking down the communication and understanding barriers between the technology and business units. The foundation of Performance Management is quality products and services, strong customer focus and extensive employee involvement.
We designed our Development for Business Success as a quality and productivity methodology for both the office-based operations where knowledge and labor rather than material, represent the largest input to production; and manufacturing where labor, material and burden are important. It addresses costs, process control, data, and productivity issues of the hard-to-measure processes found in the office and manufacturing environment.
The foundation of Performance Management is quality products and services, strong customer (both internal and external) focus, and extensive employee involvement. Cost management, data, training and service level performance measures are central to the Development for Business Success. These elements are necessary to maintain process control, sustain productivity improvements, and promptly respond to new customer requirements.
FRS Consultants will do
The implementation of Development for Business Success is a natural process. It begins with an in-depth diagnostic review of a selected process. Although the review is focused on a particular process, rather than departments, the organizational structure and its impact on the process is evaluated. The deliverable from this effort is a report, which documents the current situation from a cost, management control, and service level perspective.
This baseline document presents the processes organizational value, suggests an optimum cost structure, identifies the performance measures should be in place, and describes the desired service level. Finally, the report includes a project plan of activities and proposed timetable that must be accomplished to achieve the desired performance level.
Once the conclusions of the diagnostic review are accepted by the manager(s) responsible for the process, an implementation team of knowledgeable employees is assembled to perform the activities outlined in the project plan. At this point our responsibilities to the implementation team can be a combination of project leader, team facilitator, and/or team member responsible for specific tasks included in the implementation plan.
Performance Management provides direct benefits through cost reduction, cost displacement, and revenue growth. Indirect benefits are also accrued through risk reduction, performance improvement, and significant employee involvement and employee understanding of and focus towards the company's key performance measures.
Our approach to Development for Business Success is conducted in three activities:
- Perform an operational review to determine the cost structure of products and services as well as the drivers of those costs.
- Develop a performance plan to improve and monitor business activities
- Define and implement the steps necessary to integrate the performance reporting methodology. This activity includes implementing cost reduction or quality improvement opportunities identified in the operational review as well as training employees in problem solving techniques, team mechanics, and quality issues
Ten Reasons Why Businesses Fail
- Inadequate accounting records
- Disregarding or misinterpreting financial records
- Not controlling costs
- Inviting fraud through poor internal control
- Failing to aggressively sell or not knowing who your customers are
- Insufficient working capital
- Not carrying adequate and appropriate insurance
- Failing to adequately train and develop employees
- Improper strategic planning
- Not seeking advice or professional help when necessary
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