How much analysis, and the quality of that analysis, that goes in to driving the right decisions for a business varies quite massively, not just across sectors, but between businesses in the same sector. There is no standard, no benchmark, and not even any framework for making those decisions.
The quality of decisions often reflects the quality not just of the information but also how it is presented to those making those decisions. So poor productivity is presented as a problem of a commercial portfolio complexity. Poor margin is presented as a problem of resource input costs. Poor efficiency is presented as a problem of equipment. Poor service or excessive waste is presented as a problem of forecasting, or IT systems. Poor sales are presented as a problem of product, or price.
Your decisions are thus manipulated, to slash lines and shorten that product tail, to commission a lean transformation programme, to upgrade to a new IT system, to raise a Capex, or simply cut everyone’s budget by 5%.
Wouldn’t it be better to get a different view of your information, so you can make better, informed decisions? We think so, too. Talk to us today about what your data reveals about you.
Can your analysis be used by investors for due diligence?
The first step for investors when looking at a business is to check that the strategy for the business is right – no point in charging over that hill if it turns out to be a cliff edge. But this check is often done on gut feel rather than science, and unless provoked by poor results and a change in management, a check is something many businesses don’t even do at all.
What can your analysis reveal that ours cannot?
Our analysis not only validates the financial profile of a business, it goes much deeper and wider, supporting the needs of the person or team tasked with delivering a step up in results.
Businesses and investors very often rely on bringing in a trusted Operating Partner with prior experience in a similar industry or business. So far, so good. This individual is then relied upon to ‘repeat success’ perhaps following a familiar formula or pattern. Our analysis reveals what this person cannot know: it reveals the true realisable potential of the business, and identifies all the barriers. It helps provide the detail behind the vision and strategic objectives. It shows those involved exactly what is possible, how it can be done, and how to address the weaknesses and risks with confidence.
When would be the best time to do this analysis?
We would always suggest doing the analysis as soon as possible. There is never a time when any business stands still, but one thing we have learned is that every single person who has used our analysis says that they should have done it sooner!
We also can adapt our analytical approach to the context in which the business operates: be that in emergency turnaround, pre or post merger or when evaluating an potential acquisition, or simply and most commonly when a CEO wants to drive performance upwards, quickly.