Assessing organizations does not have to be time consuming or cost a lot of money, and consists of qualitative and quantitative analysis. It requires a multi-task analyst to get the job done quickly and at no cost. Qualitative assessment begins, as you approach the organization, and before you park your vehicles, evaluate the location of the organization, in terms of target customers, raw materials availability, consumer accessibility, product recourses, and ease of marketing. After parking your vehicle, and as you walk into the building, focus on the customer service relation. Assess the relationship between the employees and the customers, employees and employer, and team work among employees. How are you welcome, do you receive attention, how do they attend to their customers, and do you see any courtesy on the part of the employees and employer?
The next level is to move ahead and ask organization related questions. Interview the employer, employees, and when possible pass out a survey for confidential information. It is important to know whether the organization is family owned or not. It makes a whole lot of difference in the world. If it is, the culture will be different regarding employees' loyalty, rigidity in expansion, afraid of change to new ideas or technology, and organization abuse by family members. Also, which member of the family has ultimate control of the business? Some family members run their business with their hearts rather than their heads. Individuals in this category only care about keeping the business running without consideration of the cost control, account receivables and payables. Most of this information usually comes from employer or one loose employee in an organization, who is willing to give out valuable information that will enhance the value of the organization. Assessing an organization is an indirect investigative job, but in this case is for the benefit of the organization.
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The quantitative assessment involves the evaluation of the financial statement. This includes the balance sheet, income statement (P&L), and cash flow. Evaluation of each document will give a general idea in a nut-shell of how organization is performing and where it stands. A look at the last three or four year financial statement will give an average of an organization's financial standing. Calculating all the key indices will show where the linkages are, and the contributor of the linkages.
By the time the analysis is complete, the following review would have been taken: labor cost, administration, operations, overhead, break-even utilization, sales and marketing, cash flow management, tax planning, web site, material cost, productivity, incentives, cost controls, material flow, organization re-engineering, possibility of expansion and globalization if applicable. These areas will give a snap-shot of how the organization could be improved.
Evaluation will be performed to determine the problems and the cost associated (soft and hard problem costs) with them. Again, these potential problem costing areas will need to be calculated: productivity, pricing, safety, advertising, quality control, communication, meetings, training, employee turnover, compensation, incentives, depreciation, proper financing, purchasing, overtime, margin mix, material wastes, cash management, billing procedures, collection procedure, and sweep account. At the end, focus will include the following: lost profits; lost income; excess inventory; scrap, waste, rework; productivity; debt load; attrition; and hidden cost.
Maximize Profit While Minimize Costs
The expanded version and consulting services may be provided by http://www.iba-pec.com a profit engineering firm. The bottom line is to minimize cost, maximize profit, maximize efficiency, and increase productivity.
Dr. Sidney Okolo is a professor, consultant, strategist, and Africa expert. He is affiliated to several universities, the Managing Director of International Business Associates, a management consulting firm, and the CEO of Global Education Support, an education assistance program.
Among other things, he engages in all aspects of learning, knowledge, organization and human change. His focus is on leadership, management, entrepreneurship, profit engineering, human potential, excellence, achievement, business strategy, research and development. Product management, change management, conflict management, athlete management, marketing, business development and operations. He works with clients to adapt to change due to change in factors of production, technology, goods and services. He engages clients in training, retraining, development, skills enhancement, association, behavior modification, ways of thinking, and attitude adjustment. In addition to his work in the United States, his focus is also on developing countries in the continent of Africa, their leadership, culture, economic and market structure, community planning and development, and his created four letter word, "PIES", which stands for: poverty, instability, ethnicity, and sectarianism.
http://www.iba-pec.com
http://www.globaleducationsupport.org
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