Generally, the execution of a consulting assignment proceeds through a number of phases.
Discovery
During the discovery process the consultant analyzes the client's operations and reviews all of the Company's available financial and operational information. This review includes in depth interviews with the client, all executives and other supervisory personnel and key employees. Almost invariably this process leads to the discovery of a variety of problems in the company's organizational structure as well as gaping holes in the company's reporting systems and control procedures. The resulting effect of these deficiencies is reduced corporate profits, profit leaks and missed opportunities.
As part of the discovery process the consultant will also study and analyze the company's capital base and debt level to determine if there is a strategic problem with the underlying financial structure. Where these problems exist, refinancing and/or capital development will be incorporated into the scope of the consulting assignment.
Development & Implementation
Concurrent with the discovery phase, once the analysis has started to pinpoint problems, the consultant will immediately begin to develop operational, organizational and financial procedures and programs. In all instances these programs will be cost justified and supported by a series of written recommendations for the client's review and approval. More importantly, once approved, the consultant will actually implement the recommendations and coordinate their absorption and ongoing usage through all areas of the company's operation.
The development and implementation phase will continue over a several month period as additional problems are detected in the ongoing discovery process and as the consultant fine-tunes the previously implemented systems and procedures. This ongoing process will not only include the daily operational and financial aspects of the business, but will also address fixed expenses relating to leases, unions and other longer term cost factors. The consultant's ultimate goal is to increase the company's operating profit by reducing both variable and fixed costs so that the company is the " lowest cost producer" in the market place.
Business Development & Expansion
As the operational control implementation phase of the project begins to generate increased unit profitability the consultant will turn attention to the process of building sales with enhanced marketing activities. These incremental sales will have a compounded positive effect on profitability as a function of the company's new lower cost basis.
Long Term Planning & Operating Budgets
During this phase of the project the consultant will address the company's long term goals and opportunities. The first step will be the development of a strategic plan that will outline the company's plans and objectives over the next five years. In addition, an annual operating budget will be developed, by profit center, to assure there is a guiding force in place to maintain control of the operation and to assure all employees are aware of their individual responsibilities and goals for the year.
Incentive Compensation System
The final operational phase of the project will be the development and installation of a comprehensive corporate compensation program that will be based on the concept of "pay for performance". This program will encompass wage, salary and benefits packages for both salaried and hourly employees as well as broad based incentive compensation components designed to assure that the company retains an exceptionally motivated work force. The objective of these programs is to assure that each employee is motivated to adopt the company's goals and objectives and to fully support and participate in the actions necessary to achieve those goals.
Monitoring
Once the operational aspects of the assignment are complete the consultant remains available to the client as an ongoing, outside advisor and confidante. Having become extensively experienced with the inner most operations of the company; the consultant can fulfill an invaluable on-going service to the client. Visiting on either a scheduled or on call basis, the consultant can provide not only advice and guidance on continuing operations, but also additional help on extraordinary activities such as acquisitions, refinancing, etc. This service is invaluable in that on going visits will assure there is a minimum of "slippage" back to the old way of doing business.
If you would like to learn more abut the consulting process and how it can increase the profitability of your business contact us for a free consultation.
