Snap Shot Assessment
When a business is in trouble, or the warning signs appear, a Snap Shot Assessment will quickly determine whether the operating plan assumptions and sales data support the financial projections. When things start to go wrong, management may be navigating in uncharted waters and not sure which path to take. Too often this results in a "wait-and-see" approach, hoping an increase in sales will solve the problems. Unfortunately, many times it never materializes, due to internal operating problems or unverified customer demand.
The Snap Shot Assessment will help determine whether a change in short term tactics will put the business back on course, or a strategic repositioning is needed for long term viability.
Approach
- KH Advisors works with management and key employees in each functional area to understand the operating constraints, the commercial environment, and the critical issues facing the business in the next 60 to 90 days.
- Using a combination of top-down and bottoms-up analysis, we identify key disconnects with the assumptions used for financial projections and the realities of the commercial and operating situation.
- While the challenges facing the business may be formidable, the problems can be isolated in a relatively short period, and the proper focus of attention can then be applied.
Areas of Focus
- Commercial (read more)
- How solid is the order pipeline and how realistic are the sales projections?
- Are purchase orders in-house and have customers confirmed release dates?
- Is an on-site meeting with the customer needed to flush out the real story on near term demand?
- What is the stability of the customers end market and the implications on near term business?
- Will the competitive landscape negatively impact the current plan?
- Operations (read more)
- Is Operations prepared to execute the sales plan?
- What is the impact of on-going process problems?
- Are there adequate metrics to provide early warning of problems?
- Is the supply chain environment stable or in flux?
- Has the business been priced profitably?
- Buy-In (read more)
- Are customers, key suppliers and employees on-board?
- Are other outside influences preventing near term success?
- Finance (read more)
- Determine if the business has adequate financing to execute the plan.
- Determine if cash flow projections are realistic.
Next Steps
- Prioritize the issues that are putting near-term financial projections at risk.
- Develop short-term tactics to get the business back on track, and if necessary, begin the process to strategically reposition the company.
The first step in getting a business back on track is to establish a crystal clear picture of the current situation, how you got there, and determine what’s working and what’s not.
Executive Coaching can guide you through sensitive situations & help you stay on point.
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