Operational Reviews
Proactive, well-managed companies are always looking for a competitive edge, a way to do things more effectively and efficiently. Clients turn to Grassi Consulting for help in this area through our operational review.
During the operational review process, through an independent, objective evaluation, our team takes a holistic look at the operational environment and identifies areas for improvement-with the goal of adding to the bottom line. Using an outsider's perspective and keen management insights we've gained through many years of working with clients, we evaluate performance, identify key operational issues, and make recommendations for improvements. In addition, the process reduces fraud risks, creates efficiencies, establishes and solidifies corporate goals, increases communication and ultimately, increases cash flow and profitability. The output of an operational review is a new and improved roadmap for success.
There are three primary phases in our approach to an operational review:
Information gathering: Our team meets with management across departments and conducts extensive, in-depth interviews to gain insight to a company. We ask questions about how different departments operate and interact; how the company manages operational resources and how it makes management decisions. We also work to identify redundancies and/or deficiencies in policies and procedures.
Systems Overview: In this phase of the process, our team learns how an organization utilizes its accounting and reporting systems, and how they integrate with the company's overall operations. We also look at how things are processed within the organization, from expenses and bill paying to customer billing and collections.
Evaluation & Reporting: The conclusion of the operational review process, we put into writing our assessments and recommendations and present the results to management. We can help develop a plan of action and assist in implementation or leave implementation to the management team.
The operational review delves into all major areas of an organization's operations, and addresses such vital issues as:
Reducing fraud risks:
- Establishing the proper procedures for supervision and reviews.
- Identifying improper segregation of duties where an employee's responsibilities allow him/her to perpetrate or conceal a fraud.
- Educating management teams about the ways fraud can be committed.
- Alerting the staff that management is concerned about the risk of fraud. Employees will think twice if they know management will be reviewing their work and procedures.
- Identifying areas where outside individuals have access to the corporation's assets.
- Identifying the risk of financial statement fraud by top management.
Creating efficiencies:
- Identifying time-consuming procedures that have little or no benefit to the company.
- Identifying unproductive or inefficient staff.
- Implementing procedures that motivate staff and increase profits for the company.
- Recruiting higher caliber staff, which results in lower staff turnover and higher performance rates.
- Improving staff morale through investing in their development.
- Improving performance through monitoring of individuals and teams.
- Identifying or establishing organizational charts which ensure all employees are reporting to the correct individuals.
Establishing, measuring and monitoring goals:
- Review of company's annual budget and goals.
- Encouraging management to revisit and revise existing plans. Even though the company may have a current business plan, the daily activities of the company may not be in accord with these goals and objectives. An operational review can assist in identifying what is not working properly; or, whether the objectives of the business plan need to be modified.
Increasing cash flow:
- Determining the accuracy and timeliness of invoicing and billing.
- Identifying the individuals within the company who should be responsible for tracking collections. Formulating a process for the individual to monitor and contact slow paying or problem customers.
- Establishing customer credit policies and procedures.
- Determining the proper procedures for recording and paying invoices.
- Determining cash requirements on a daily, weekly and monthly basis.
- Verifying the proper use and repayment of outside financing.
Improving communications:
- Identifying breakdowns in communication between management and staff, miscommunications between departments, problems with customer relations, and a variety of other issues of significant concern.
- Improving the ways the company communicates with its staff, management, customers and vendors.
Providing third-party assurance:
- Assuring management, shareholders, and/or lenders that current activities or proposed activities will not expose the company to unwarranted risks. This becomes important during times of expansion, since what may be an insignificant problem at present could become a major problem after expansion takes place.
Related Services:
- Identification of Key Operational Issues
- Benchmarking Studies
- Strategy Development and Implementation
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