Entropy is the scientific principle that all systems tend to run down: the business response to this is an in-depth analysis, often called an organisational review.
The fact is that businesses benefit from regular checkups including deep analysis of systems, performance, markets, financials, marketing and promotions, strategy – everything.
Successful reviews are usually conducted by outsiders with wide business experience and specific expertise in conducting reviews. Typically they partner with the business accountant and perhaps other experts, depending on the situation.
Edwards Irvine and Facius can help you set up a review that will be effective – and help you choose and act on its recommendations.
Ideally a review should be a maintenance item, like tuning your car. In reality, often it’s like a roadside rescue.
The starting point is usually some objective. “Slash costs” is a typical roadside rescue objective. “Streamline processes” and “expand capabilities” is more like a tune-up before a long trip.
A review should not be idle, or general: it should be purposive and specific.
For example, it may ask, Is the organisation fast-growth ready? (most are not) or Why is the organisation struggling?
It should consider the organisation within its business and social context and it should focus on the achievement of defined objectives. A review is goal oriented.
It should compare the organisation with others that are similar, or that represent its aspirations, so it brings an outside perspective to the vision.
The review should address (or develop) a business plan that details the business model (how the business makes money).
The review examines every aspect of the organisation in relation to the objectives: what it contributes, how it could be improved, if it’s even necessary and what else should be done. So as well as a tune-up, it becomes part of your road map for what’s ahead.