Often
we look back and wish that we had “done something”
earlier or even taken up the expensive option of a Health
Check every couple of years. Recognise this either in your
own life or that of people close to you?
Well,
I can confirm that your business suffers in exactly the
same way. Businesses catch “colds” which often
costs hard earned margin but you accept these as a part
of your business and move onwards and upwards.
Can
you be sure however that these “colds” are not
indicative of a more serious illness / problem lurking in
the background and gaining strength. If this is the case
then when it finally reveals itself it can be too late for
a quick fix but requires major surgery to avert failure.
This
is a somewhat interesting parallel between human ailments
and business problems which is often missed by company directors.
If the body deserves a Health Check, then why not the business?
Multinationals
are large enough to have internal and independent business
auditors who rove through the different areas of the business
to identify weaknesses or susceptibility, and report these
to the business operating boards. It is a proven fact that
when business audits are repeated on a regular cycle major
benefits can be achieved.
However
this fixed asset is not practical for SME’s I hear
you say and I agree. But you still however have responsibilities
as directors for the health of your business. If you do
not have the skills yourself to do the job then you must
find them. One solution is to bring them in on a short term
short term flexible basis.
Don’t
look at this exercise as a costly audit or another accountancy
exercise but as a development that will bring advantages
to your business. Your expectations should include:
• Is the way we do things the correct and most cost
effective way?
• Are there any inherent problems in the way we do
it?
• Is there a better way of doing what we do?
• What are the issues that could cause us problems?
You
need to get value for your money so a business Health Check
must be more than a diagnostic. You should look to receive
the following:
• A detailed report showing the opportunities and
threats within each area
• Feed back on potential problems and their cause
• Feed back on how other businesses achieve the same
results
• An understanding of best practice
• Is the existing procedure cost effective and viable
• How does our operation compare with other similar
businesses?
You
should then work with the interim resource to plan for recovery
and agree what internal or external resource is to be utilised
for the recovery.
If there
is no internal resource available then bring in an external
resource for a fixed period at an agreed rate. Define the
parameters and the output from the external resource. Clearly
define the areas to be actioned and be honest in your own
evaluation of any issues.
Define
the work to be undertaken:
• Areas to be covered
• Timeframe for both the Health Check and presentation
of the findings
• Costs in stages, so you can terminate the project
at any stage.
• Agree the output and format
Most
skills can be found cost effectively through the use of
Interim Managers. The additional benefit is that Interim
Managers work across industry sectors and can therefore
bring new ideas to your business.
Why
use Interim Resources?:
• Readily available
• Extensive experience across business sectors
• Detached and neutral overview of company and systems
• Easy to replace if not suitable
• Ultimate flexibility
• No threat to existing management team
• Payment by results
• Not on company payroll
Interim
Resource Capabilities:
• Does the interim manager have liability insurance?
• Does the interim resource have a minimum of three
years experience as an interim manager?
• Has the interim resource relative experience in
your business sector?
• Is he / she based locally?
• Ask for references and take them up.
A word
of caution:
Sourcing Interim Resources from larger organisations is
not necessarily the most cost effective route. Consider
your local independent resource first.
A thought
for the future:
Find a local Interim Manager and stick with him / her. They
will get to know your business and it will cost you less
in the long term.
It costs
nothing for the initial discussion with the Interim resource.
Give them a call.
About
the Author
Mike Forryan has some 30 years experience in business processes
and has worked for UK, European and US multinationals in
various rolls including business development and troubleshooter.
He
now runs his own Supply Chain Resources business which includes
interim management, consultancy, recruitment and business
health checks.
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