Operational Review - Jamesford Management Consultants Ltd
Operational Review
The operational review is designed to answer several key questions, namely:-
- Is the business delivering on the strategic intent?
- Is the business performing in the most effective and efficient manner?
An effective operational review includes the following:-
- Customer review – what does the customer think of the product/service offering?
- Operational review – which processes are effective in delivering the customer proposition and which ones need to change?
- Structural review – does the structure support the business processes? does the culture support the strategy?
- Financial review – what are the profit drivers? what are the cost drivers? trends? benchmarking? forecasting?
And will evidence the effectiveness and efficiency of the business model:-
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We typically find the following business issues are brought into focus during this review process:-
- The product/service offering has become less competitive due to quality or cost of delivery.
- Operating processes are less effective/efficient. Costs have escalated.
- Structural issues around role/responsibilities, team effectiveness, silo mentality, wrong structural form (ie functional vs product), cultural mismatch etc.
- Business management/reporting issues around the efficacy/adequacy/appropriateness/periodicy/timeliness of management information, plus the reporting and managing processes.
The resultant projects are tailored to customer requirements but invariable include one or more of the following programme of activities:-
- Business (hi level) or operational (lower level) process redesign and implementation – to correct quality issues and the effectiveness/efficiency of processes.
- Cost reduction programme. We typically apply one or more of the following business levers to drive the cost reduction programme:-
- Competitor driven i.e. the focus is on benchmarking competitors and setting targets for lower costs.
- Customer value driven i.e. the focus is on re-balancing valuable resources towards driving customer value and away from less valuable back office activities.
- Process driven i.e. the focus is on more effective/efficient processes to drive lower costs.
- Stakeholder driven utilising techniques such as zero based budgeting.
- Restructuring the team, the department or across the business.
- Management reporting, including information and process.
A feature of our performance improvement programmes is that they are designed and closely managed to demonstrate the effectiveness of best in class performance management techniques, including:-
- The programmes are costed to deliver a measureable payback to the client.
- The subject of agreed business logic.
- Measureable, quantifiable and easily understood objectives.
- Detailed plan of action.
- Regular review, measurement and management of delivery.
- Delivery of objective to quality, time and cost.