An Operations Review is frequently conducted before financial exits, fund raising, divestiture, restructuring, product launch; or simply because management desires an outside opinion of the company, or of a specific area.
In essence an operational review helps management be assured that they are walking down the correct path to keep their company near the top of the competitive “heap.”
During fund raising (typically) the lead investor arranges for Due Diligence to be performed. This is similar to an operational review. During the Due Diligence process outsiders typically investors or consultants look at:
- The company
- The business plan
- The requested investment
Determine if the above:
- Combine to create a reasonable chance that if awarded the funds the management team can create the results stated in the business plan
- Entail too much risk
Consider whether more can be created by following a different plan
The exact approach to Due Diligence varies by sector.
A startup or established company that is considering executing a Fund Raising may perform an Operational Review to flag any issues to fix before starting the process.
A Board or a CEO may consider performing an Operational Review just because one has not been performed in a long time; or because he/she wants to flush out some issues.
Similarly a startup or established company that is considering executing a Divestiture may perform an Operational Review to flag any issues to fix before starting the process.
Similarly a startup or established company that is considering executing a Restructuring may perform an Operational Review to flag any issues to fix before starting the process.
Similarly a startup or established company that is considering executing a Product Launch may perform an Operational Review or a partial review to flag any issues to fix before starting the process.
Operations Review Summary
In any of the above; the company is performing an evaluation of the efficiency, effectiveness, and cost effectiveness of its operations. Startups are also interested in whether they are growing as fast as they should.
Results included in the Report may address the following:
- A company’s goal of being better than the competition
- Internal communication issues
- Systemic customer problems
- Operating procedures
- Profitability issues
- How well units are performing
- Resource allocation
- How well the company is prepared to address likely future issues and opportunities
The desired result of an operational review is to increase sales, enhance market share, and decrease cost.
For simple and complex operations the report should describe if the various units supplement each other effectively to form a synergistic whole moving in the correct direction.
With our business partners and associates we can offer a wide range of choices in executing an operational reviews.
Remote and Skype Based Reviews
While our team can come to your site; you may want to consider how a Skype based review can address your needs. This allows us to cost effectively include experts in various parts of the world (Silicon Valley, London, etc.). Let’s talk about it.
Please see the Post Business Process Management From a Managerial Perspective