Governing the Business and Managing Change
When market-imposed limits threaten growth, it’s time to rethink strategy. In general when there is a phase of discontinuity with the past, each business applies its individual management approach, however the COVID-19 crisis has unparalleled characteristics and duration. For this reason, extra care and attention is needed when planning corrective actions.
When there are significant changes in the fundamental parameters of a company, such as demand, cash flow and profitability, the risk relating to not reacting swiftly to the changes is that business continuity becomes vulnerable. This can be avoided if there is appropriate management of a correct action plan to relaunch the company . Download our plan
Delivering products and services that meet the customer’s needs and expectations
Customers do not provide feedback and information spontaneously; companies are not always listening and therefore base decisions on relevant and objective customer insights.
When there is no certainty regarding the external environment, a company tends to proceed at a slower pace, mistakes are made in the preparation of proposals and in the value proposition which may become opportunities for competitors.
To maintain competitive positioning and profitability, the company must create ‘out-in’ information channels, this requires that information be transferred from the outside to the inside. The company becomes the owner of a knowledge base with which to make better decisions in the short and long term. Learn More
Aligning people, processes and technology to increase competitivity
Companies that continuously monitor and analyze current operational processes can initiate process reviews and optimization programs as soon as they see the need, thereby increasing internal productivity and reducing costs.
When productivity is not under control, costs increase, and service levels are reduced with negative consequences on margin and pricing competitivity.
To avoid these risks, the company can act by formulating efficiency and optimization plans. These plans should be based on interventions aimed at maintaining consistency between goals, financial sustainability, human resources, processes, and investments in technology while at the same time increasing the return of internal resources and investments.
Designing a robust and agile organizational structure
A company’s organizational structure is the basis for the functioning of the business. It needs to facilitate internal processes, leadership, decision-making, communication, and information flows. At the same time, it must be capable of evolving in an agile way over time in order to react to changes in the business’s ecosystem.
When the context changes, tensions are created on the internal structure and structures. Not being able to adapt the organization to these changes in a timely manner weakens the ability to respond to the market and the ability to maintain performance over time.
To bring the organization into context, we offer Organizational Review, Change Management, Process Review and Personnel Management Programs. In the case of new companies, spin-offs and innovative start-ups we also offer Organizational Design interventions, Open Innovation Plans and Coordination of activities, PMO, and Interim Project Management.
Ensuring return on investment in innovation
In some cases, the best innovation strategy for a company is to go for state-of-the-art technology and radically new business models. In other cases, it consists of sufficient marginal investments to make the offer, the product, and the service levels better than the competitors. Knowing how to innovate and invest properly is a fundamental requirement for business continuity. Investments can include new technology for manufacturing, investments in platforms and network infrastructure to optimize the use of data and enabling technologies (e.g. Robotics, IoT, AI, Big Data).
To ensure sound and profitable investments, it is imperative to correctly evaluate the operation in advance, where the selected interventions should generate profit in the shortest possible time. These evaluations include Industry Trend Analysis, Benchmarking, Business Planning, Technology Due-Diligence, External and Internal Risk/Impact Analysis and Alternative Investments Guide.
Knowing and governing the parameters that lead the company towards its goals
In practical terms, doing an Audit or Management Control in the company means having control of the numerical parameters that describe the evolution of the activity of the business over time.
Historical data is evaluated, and what the current situation is measured and controlled, and models are developed for the future with the aim of planning actions which will be aimed at creating economic value.
This is the reason why when starting a management control analysis, it’s important to have a solid Budget and Business Plan. This always allows you to verify whether the company is creating the planned value or not, allowing management to intervene on time, realign and continue towards the intended business goals.
Creating a foundation for Business Continuity
In planning the succession of companies, it may happen that family members are unwilling or are not able to continue creating success and profit in the business. In some cases it may seem like the only available ‘exit’ strategy is that of selling to a third party with a definitive transfer of ownership..
The business can however successfully complete the generational transition without resorting to selling the business or operations such as a M&A, as long as a development plan is created taking into consideration the fundamentals of the business: family, management and ownership. To do so, it is also necessary to make available to the company the correct leadership style whether it is exercised by family members or by external top management.