Business Optimisation Overview
A business is built up from many parts and each part operates with its own autonomy. Business Optimisation looks at how the people, processes, and systems of a business work together like a well-oiled machine to generate the business results.
When businesses are set up, they are built and organised in a way that will help them stabilise and grow. Through time, however, the external environment around the business changes, the business state and requirements change, and the business’ objectives could also change. These changes have a great impact on the business and require it to operate or organise in a slightly different way.
Since many business owners are taken up with the actual business operations, some businesses do not manage to re-organise themselves or re-design their processes and structures to align themselves with these new realities. As a result, while the business might still be profitable and it might still deliver results, its structure might not be aligned to its reality and to where it is heading. There is a risk that such working methods cause inefficiencies, that become an invisible cost on the business.
Business Optimisation looks at the business in the light of the current and projected-future realities to design solutions to deal with these matters.
Process of Delivery – Business Optimisation
A Business Optimisation exercise requires:
1. Data Collection
Information about the area being studied is collected from the owners and management. This takes the form of meetings with the key stakeholders in order to collect the information and discuss the reasoning and objectives of the organisation.
All the collected information is analysed, compared to best practices and initial recommendations are shaped
Clarifications are sought from the organisation’s owners and management and the initial recommendations are discussed.
The final report of recommendations in delivered to the owners and management and discussed.
Throughout this process, CMG Consulta work closely with the owners and the client accountant (internal or outsourced) to ensure that the process is based on solid and accurate information coming from the most reliable of sources. A Business Optimisation exercise takes anything from 6 weeks upwards depending on the number of business areas to be studied and the size of organisation. The length and shape of exercise, however, are always discussed and agreed before the process starts.
A Business Optimisation exercise always ends with a short report where the outcomes of the process are documented in the form of focused recommendations that the business can then act on. Each recommendation is backed with the reasoning for the recommendation as well as any relevant data so that the business owner can be further guided in their decision making on carrying out any of the recommended changes.
Business Optimisation - Typical Clients
A Business Optimisation exercise is typically interesting to, small to medium sized businesses who feel that they could be achieving more or operating more efficiently. Most of these businesses would be feeling that the results they are obtaining from the business do not measure up to the amount of effort that they put into the business.
Benefits of a Business Optimisation
Business Process Reviews
In many businesses, processes were never designed and studied but they developed as they evolved from one person carrying a task to two, to three etc… This evolution is natural as a business grows yet inefficiency tends to creep into the processes and there is a tendency that a degree of effort is spent on the process rather than on delivering the result. CMG Consulta work closely with owners and management to identify the business’ objectives following which the individual business processes can be studied to ensure that each unit of effort and cost is directed towards achieving the objective.
Efficiency and Workflow Analysis
Through a business’ evolution, the different departments and organisational units of the business grow and evolve. Since they all work together and depend on each other, this evolution also results in many situations where a department takes on some tasks that are not typically its own or where departments double up on work done by another department. These subtle glitches creep in unnoticed and undetected and they are great contributors to inefficiencies costing a business time and money. CMG Consulta work with owners and managers to ensure that the organisational design, context, and structure reflects the current business reality and supports where the business is going
Digitisation of Processes
In today’s business world, technology can be a determining factor for competitive advantage and even for sheer survival at times. Despite this, there are many businesses that still have processes operating manually. While this is not an issue, in cases where the business can gain an advantage through digitisation, CMG Consulta work with the business to identify the advantages that can be gained, to review different suppliers and identify the best fit for the business then to work with the chosen supplier to review the current processes, re-engineer them and map them on the chosen digital platform.
Business Process Re-Engineering
As a business evolves it tends to take on more work, people, and processes which results in growth. This growth, however, is frequently undertaken without necessarily planning each addition in detail. The main culprit for this approach is that many decisions could be taken during periods of ‘busyness’. Operational inefficiencies tend to be created in the use of resources, deployment of employees and achievement of organisational goals. CMG Consulta can work closely with the business to understand the required state of the business and its structure and to guide the business through a plan of changes that could be made to increase efficiency of resource usage and people deployment while ensuring that organisational objectives are met.
No business exists in a vacuum and the environment in which it operates changes with time. These changes could be due to technological advancements, social changes, changes in customer taste and economic factors amongst others. Changes in the environment usually result in a business’ product/service not remaining as relevant to the customers as it originally was. The main impact of this on the business it that the whole organisation’s business model might not be as aligned to current realities as it used to be. CMG Consulta can work very closely with the owners to identify core strength areas that could be further developed in the business while strengthening weaknesses and, as a result, transform the business model to leverage opportunities that might be present to transform the business for the future.
Organisation Structure Evolution
Many businesses grow organically over time, possibly from a one-man band to a much larger and more complex setup employing multiple employees. This organic growth over time, tends to grow the operation without necessarily evolving the organisation structure to suit the larger operation. The typical result is that the business ends up with a structure that creates much dependence on a core set of owners/managers resulting in operational efficiencies. CMG Consulta can recommend actions on how to transition the organisation structure to create a small management structure that supports the owner rather than depending on him therefore enabling the business to transition into a more autonomous and efficient operating structure.
Retaining employees and having them grow in the business becomes more challenging with time and business growth. As a result, many businesses feel that they end up playing a role of ‘training grounds’ for employees who then move on to other companies to grow. This tends to also result in the daily operations feeling a little disorganised. In reviewing the operations, roles and structure, CMG Consulta can recommend actions that enable more clear role definitions and assumption of responsibilities as well as clear growth paths for employees. This is the very first step to creating a more inclusive workplace where employees feel they could grow in the longer term.