Rapid Operations Assessment

It’s easy to say that shareholder value is important. It’s not so easy to make it influence the decisions that are made every day: where to spend time and resources, how best to get things done, and ultimately, how to win in the marketplace. But the links between increasing shareholder value and driving those increases through “Operations Excellence” are not always obvious.

Another challenge: It isn’t easy to get support for improving a business, especially one that’s already profitable. Often, the only way to do so is by presenting a compelling business case. For the investor, financial institution, or company itself, the question often becomes ”Where do we start?”

KCB suggests starting with our Rapid Operations Assessment: a high level diagnostic of an organization’s operations and support functions, usually conducted within 2 – 10 days, depending upon scope and geographic footprint.

Our diagnostic involves four steps:

  1. A tour of the facility(s) to understand the effectiveness of both operational and support processes
  2. Interviews with key people across the organization, from the shop floor to senior management
  3. Data analysis: operational and financial
  4. An Executive Summary of our findings and recommendations, including a prioritized list of options and roadmap forward

The value proposition for private equity firms and venture capitalists is understanding what the potential upside (or downside) in shareholder value could be, and the associated investment risks.

For financial institutions such as banks and insurance companies, benefits, in addition to potential shareholder value gains include: a) potential increases in revenue from their existing client base, both internally and through referrals; b) developing a better understanding of their clients’ business; c) enhanced client relationships; d) risk mitigation.

For the investors and financial institutions clients, benefits include: Opportunity identification in areas such as a) cost reduction; b) working capital; c) capacity; d) throughput; e) quality; f) service.