A Business Problem Worth Sharing

In order to solve a business problem, it is firstly important to compile and analyse all of the factors which may be influencing that problem – adversely and positively.

For example, overall performance improvement requires all areas of an organisation to be mapped and evaluated so that processes can be picked apart, studied and challenged. This will then enable you to see which areas of the business are negatively impacting profitability. Whilst analysing a company’s business model and processes, a business should take advantage of the many improvement opportunities which may arise from this process.

Business Opportunities

Business opportunities may be apparent when scanning the external business environment. For example, there may be an opportunity for a business to move into another market or to fill a gap in the market. Of course, these opportunities would have to fit in with the overall company strategy and be financially feasible and beneficial for the business. Many growth strategies can also come from this process.

Risk Management

Any risks to the business will become apparent when analysing all areas of a business. These risks may be influenced by external or internal factors. Key risk indicators must also be put in place to establish procedures for effective risk management.

Adoption of The Balance Scorecard

The adoption of the Balance Scorecard means that a business not only considers financial factors, but also non financial factors too. Non financial indicators should influence financial indicators and this should be taken into consideration when creating and implementing any new KPI’s.

Cost Management

Analysing the financial statements and financial ratios of a business is a good way of accessing the financial performance and stability of a company. Excessive spending in one area of the business can be targeted, rectified and challenged – in line with company strategy.

Business Questions

Questions in relation to business growth, profitability, operations and sales & marketing may spark certain moves towards business efficiency in order to increase market share.   

Strategy Re-alignment

Re-alignment of strategy is needed when a business steers off course from it’s mission statement in why it exists, for whom and for what purpose. First of all, it must be determined whether the corporate strategy is still feasible, if the business is delivering it’s set key deliverables and if the USP is..well still unique to the business. Business goals may have become distorted leading to miscommunications and departmental heads not acting within the company’s best interest in fulfilling the corporate strategy.  

Revaluation of Business Operations

Re-accessing a company’s value chain can be beneficial to a business in both a financial and productive manner. It must be incredibly important to establish the ‘value added’.  If a company’s business operations are not running efficiently, then the impact on resources can be detrimental.  Key business drivers must be fully understood so that they can be managed and monitored by the business in the form of KPI’s and metrics.

Re-evaluation of Marketing Strategy

Analysing all areas of a business will also enable a business to see if they are appealing to the correct target audience. Factors to be considered are whether their audience has changed from what it was and whether they wish to re-target. Defining customer segmentation can also be greatly beneficial to a business as this helps to establish set budgets and resources.

Digitalisation of Business

The opportunity to digitalise a business is a smart one. Internal processes can be evaluated and digitalised – if it brings benefit to the business. Also, it is important for a business to be aware of how their competitors are behaving within the digital world as they will need to compete in order to gain and maintain market share.

Conclusion

By fully analysing a businesses performance and operations from the top down, certain opportunities from growth to risk management will be present. This process should be done regularly to achieve continuous improvement.

Alpha Hale Consulting offers services to businesses who want to achieve their full potential. Get in touch to see how we can work with your business.

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