Organizations across every industry tend to have an “if it’s not broken, don’t fix it” attitude towards their business processes and workflows. Successful companies, understandably so, are hesitant to rock the boat in creating new methods both internally and externally. Change is difficult in any department – from marketing to sales to human resources, and everything in between. The truth is, however, that carefully assessing and challenging the status quo is invaluable for business production and efficiency.
In today’s often cutthroat competition, getting ahead of the curve means looking inward to evaluate your company’s operations. That’s where an operational review comes in. Generally speaking, an operational review means taking an in-depth, objective big picture look at an organization as a whole. However, since most C-level executives are too intimately involved to properly assess that big picture, operational reviews are often outsourced.
Hiring an outside company to consult in this regard leads to instrumental revelations for the organization. From analyzing operating procedures to highlighting communications problems to underlining profitability challenges, an operational review serves to present a roadmap to both present and future success.
The Value of an Operational Review
Successful operational reviews arguably impact the performance of an organization more than any other practice. Carrying out an exhaustive review of each segment within a company and then extrapolating that to the organization in its totality unearths tangible results. In doing so, the business can shift departments’ efforts to perform in a more cohesive manner, creating an impressive the end product. The operational review allows for just that.
When conducted correctly, companies use an operational review to achieve:
- Revenue growth
- Market share gain
- Cost reduction
While evaluating efficiencies is critical, it is often the evaluation of incompetence within an organization that highlights the most impactful outcomes. From a financial perspective, these insights save the company money while opening the door to new financial gain opportunities. From an operational perspective, these insights outline the way in which processes should be addressed for continued growth and development.
The benefits of an operational review are vast. A properly managed operational review will achieve the following for an organization of any size:
- An objective and independent evaluation of operations both large and small
- A thorough review of inefficiencies and incompetency by department and as a whole
- A highlight of common challenges and what underlying issues cause them
- An evaluation of how the workforce is currently complying with company procedures, processes, and policies
- A method to quantify achievements
- A blueprint for strategic processes moving forward
- A specific plan to both reduce costs and increase profits
Many business owners hesitate to pull the trigger in conducting an operational review. From the hassle of going through interviews and a deep dive analysis with the consulting firm to the upfront cost of this thorough exercise, it is easy for executives to put it off. However, the following are some of the most common signals that your company is overdue for an operational review:
- You notice an increase in employee turnover
- Your KPIs (key performance indicators) are measured in strategy, not operations
- Communication failures have led to lost business and/or inability to sign new clientele
- The same issues arise in a specific place within the sales process
- Performance has consistently dropped, especially in a specific department
- The executive team cannot agree on a path to success
Taking a step back and admitting that your organization needs help is extremely challenging. In fact, the biggest hurdle is often the ability to recognize that there is an issue at hand. New, growing, and mature businesses face financial and operating challenges daily. At Ellrich, Neal, Smith & Stohlman, P.A., our expertise in this area includes business plan development and operational reviews.
If you believe that your organization could benefit from an objective, expert operational review, we would love to discuss your options. Contact our Miami or Palm Beach Gardens offices at your earliest convenience and we can begin to strategize how to bring revenue growth and enhanced efficiency to your company.