Express Diagnostics of Management Systems

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EXPRESS DIAGNOSTICS AIMS TO IDENTIFY THE COMPANY’S POTENTIAL TO MOVE TO
THE NEXT LEVEL OF DEVELOPMENT THROUGH ANALYSING
KEY MANAGEMENT SUBSYSTEMS

EXPRESS DIAGNOSTICS AIMS TO IDENTIFY THE COMPANY’S POTENTIAL TO MOVE TO THE NEXT LEVEL OF DEVELOPMENT THROUGH ANALYSING KEY MANAGEMENT SUBSYSTEMS

Do these challenges sound familiar?

Declining profitability in the face of growing costs and inefficiency

Overwhelming complaints from key staff and high turnover

Non-synchronized work of different departments and teams.

Decreasing sales despite your growing efforts

Plans chronically not executed or underperformed

You are not a start-up anymore but lack the maturity of a corporation.

Management Subsystems

The presence of a strategic approach

Availability of criteria for making strategic decisions (downsizing vs expansion, preservation vs upgrade of business model, diversification vs specialization of activities).

Strategic process

Analysis of strategic decision-making process and the level of engagement of relevant team members into the process.

Strategy documentation and link with operations

Analysis of links between current activities and strategy. Search for the best ways of ensuring that connection.

Strategy communication

The presence of strategy communication in the company, including feedback mechanisms. Identification of main obstacles and ways to overcome them.

Review of the key processes: performance measurement and monitoring, performance dialogue, consequence management

Use of performance indicators

Analysis of the balance of indicators (financial and non-financial, qualitative and quantitative), their time frame (short-term and long-term and link between them), clarity and comparability.

Analysis of efficiency of the goal-setting process in the context of team motivation.

Identification of opportunities to improve the usage of KPIs.

The performance imperative in the company’s life

Analysis of the team’s approach to efficiency, reasons for gaps and lack of focus. Identification of possible ways to improve the process.

The completeness of the planning process

Analysis of planning processes and their adequacy, plans reflecting key business processes, as well as relevance of the existing plans to the company’s realities.

The efficiency of the planning process

Allocation of an appropriate amount of time by the management, use of advanced forecasting tools. Analysis of process coordination among company’s divisions.

Monitoring and control

Assessment of variance analysis, the process of discussing the actual performance. Identification of a formal approach and recommendations for improvement.

The effectiveness of human resource management system

  • effectiveness of the personnel evaluation process; use of tools and methods, integrity of the process
  • practices of personnel development; training needs assessment and development planning
  • approach to evaluate personnel motivation and the effectiveness of policies aimed at increasing motivation
  • wage policy, the use of key performance indicators and link to company’s efficiency

Organizational structure

Identification of symptoms of flaws in organizational structure and inadequacy to company’s actual processes.

The efficiency of the IT infrastructure to support business processes

Identification of adequacy of business process automation considering the degree of maturity of business.

The efficiency of communications

Analysis of the effectiveness of IT in minimization of communication costs. Identification of possible areas to improve IT infrastructure based on the experience of other companies.

The presence of a strategic approach

Availability of criteria for making strategic decisions (downsizing vs expansion, preservation vs upgrade of business model, diversification vs specialization of activities).

Strategic process

Analysis of strategic decision-making process and the level of engagement of relevant team members into the process.

Strategy documentation and link with operations

Analysis of links between current activities and strategy. Search for the best ways of ensuring that connection.

Strategy communication

The presence of strategy communication in the company, including feedback mechanisms. Identification of main obstacles and ways to overcome them.

Review of the key processes: performance measurement and monitoring, performance dialogue, consequence management

Use of performance indicators

Analysis of the balance of indicators (financial and non-financial, qualitative and quantitative), their time frame (short-term and long-term and link between them), clarity and comparability.

Analysis of efficiency of the goal-setting process in the context of team motivation.

Identification of opportunities to improve the usage of KPIs.

The performance imperative in the company’s life

Analysis of the team’s approach to efficiency, reasons for gaps and lack of focus. Identification of possible ways to improve the process.

The completeness of the planning process

Analysis of planning processes and their adequacy, plans reflecting key business processes, as well as relevance of the existing plans to the company’s realities.

The efficiency of the planning process

Allocation of an appropriate amount of time by the management, use of advanced forecasting tools. Analysis of process coordination among company’s divisions.

Monitoring and control

Assessment of variance analysis, the process of discussing the actual performance. Identification of a formal approach and recommendations for improvement.

The effectiveness of human resource management system

  • effectiveness of the personnel evaluation process; use of tools and methods, integrity of the process
  • practices of personnel development; training needs assessment and development planning
  • approach to evaluate personnel motivation and the effectiveness of policies aimed at increasing motivation
  • wage policy, the use of key performance indicators and link to company’s efficiency

Organizational structure

Identification of symptoms of flaws in organizational structure and inadequacy to company’s actual processes.

The efficiency of the IT infrastructure to support business processes

Identification of adequacy of business process automation considering the degree of maturity of business.

The efficiency of communications

Analysis of the effectiveness of IT in minimization of communication costs. Identification of possible areas to improve IT infrastructure based on the experience of other companies.

Approach

Size: Product:
  • BEST PRACTICES

  • YOUR CURRENT LEVEL

    YOUR NEXT LEVEL

BEST PRACTICES

YOUR CURRENT LEVEL

YOUR NEXT LEVEL

Problems in a broad context

Companies have their own inertia, values and well-established corporate culture, nevertheless their development has common features and patterns. The essence of our work is to review the existing development problems of your company in a wider context.

 

The goal is the next level

Comparative analysis with best practices is applied in the context of systems analysis to identify the next level of development attainable by your company.

 

Solutions that work

Recommendations are maximally customized to deliver solutions which can realistically be implemented in a particular company. Those are based on our successful work experience with numerous companies.

  • Benchmark analysis of management practices of your company with global and local best practices.
  • System-wide understanding of the development level of functional areas rather than mechanical identification of the gaps compared to the best practice.
  • Consideration of the realities and peculiarities of CIS countries.

Process

Express diagnostics is an intense process, which includes:

  • in-depth interviews with management,
  • staff surveys,
  • review of key documents regulating the operations of the company,
  • evaluation of key aspects of the company’s activities,
  • express analysis of financial situation.

Duration

The process will take only up to 5-7 days.
  • Interview: key employees

  • Interview: management

  • Review of documentation

Presentation of results

Results

  • Assessment of
    management practices

  • Comparison with
    best practices

  • Identification of the next level of the management system

The agenda to improve management practices

An updated look at the current situation

In order to notice the obvious or to challenge established practices, companies need a fresh perspective from outside. Express diagnostics allows the company to bring in our extensive experience in many industries to identify problems and propose optimal solutions.

Priorities for improving the management system

Ability to focus on the priorities is key to achieving success. Express diagnostics gives the opportunity to review the priorities with consideration of maturity level of management subsystems in your company.

Presentation of the required improvements to company's management team

The team of consultants will organize a workshop to present the results of express diagnostics to a broader management team of the company.

An updated look at the current situation

In order to notice the obvious or to challenge established practices, companies need a fresh perspective from outside. Express diagnostics allows the company to bring in our extensive experience in many industries to identify problems and propose optimal solutions.

Priorities for improving the management system

Ability to focus on the priorities is key to achieving success. Express diagnostics gives the opportunity to review the priorities with consideration of maturity level of management subsystems in your company.

Presentation of the required improvements to company's management team

The team of consultants will organize a workshop to present the results of express diagnostics to a broader management team of the company.

  • Assessment of
    management practices

  • Comparison with
    best practices

  • Identification of the next level of the management system

The agenda to improve management practices

Cases

Diagnostics findings

  • The company has set broad goals of growth, whereas the directions of the company’s further development were not clearly defined.
  • The company had an issue of micromanagement and lack of clear responsibility spread among its branches and down the organizational hierarchy.
  • Lack of structured compensation and promotion systems resulted in fragmented motivation and high turnover of mid-level management.

 

Key recommendations

  • Proposed a number of strategic options to set a development vision plan in a 2-3 years perspective synchronized with market developments.
  • Set up cascaded measurable responsibility sharing system through project management levels.
  • Reform the organizational structure and responsibility sharing system. Improve the communication among the numerous organizational units.
  • Introduce performance evaluation system, grading and skills assessment processes.

Diagnostics findings

  • The management of the business unit had an operational planning of only one year, mainly focused on only one of the business directions.
  • The business unit managers used numerous resource planning software programs, not integrated to each other, which caused major inefficiencies.
  • The bureaucratic hassle and complex paperwork requirements were found to be a bottleneck to efficient business processes.
  • The KPI system was in place only on corporate level, and not cascaded down to management.

Key recommendations

  • Extend the operational planning time horizon to 3-5 years, which would efficiently link the operational planning to company strategy.
  • Transform the organizational structure to product based format, centering the product based responsibilities and processes in one place.
  • Install an integrated ERP system connecting all the small software pieces used by the different departments of the company.
  • Introduce cascaded KPI system linking with the bonus and motivation system for the managers.

Diagnostics findings

  • The company suffered from classic syndrome of owner’s “withdrawal” from day-to-day management. The shareholder engagement was sporadic and disordered, leading to suboptimal decisions.
  • Strong internal control department ("eye of the owner") often interfered in the affairs of executive departments.
  • The company had a significant efficiency problem, with decreasing margins due to overstaffed departments and low level of automation in reporting systems.
  • The staff motivation was low, employee turnover high for some units due to unclear responsibility sharing.

Our work results

After diagnostics we received a large performance improvement mandate. We helped them to:

  • Introduce a modern system of corporate governance
  • Redesign and optimize the organizational structure
  • Cut the total headcount by 10%
  • Develop and execute KPI system on corporate and departmental levels
  • Launch the process of establishing a modern ERP system

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