15 Jul Business Analysis – Get A Handle On Your Business
Business Analysis - Get A Handle On Your Business.
Instinctively, we know what we know about our businesses. But what about the things we don’t know and perhaps should know? This gap in our knowledge can have serious consequences for the business. How often do you do a root and branch review of your business or do you ever take a look under the hood? If you do it at all, is it all encompassing or do you just look at the numbers? Does the feedback become a prompt for action?
Let’s face it, most business owners keep any eye on the key performance indicators (KPI’s) and ignore everything else. They don’t see the need to look any deeper. They certainly don’t go to the expense of getting an external business analyst or consultant to look at the business, and they just keep on moving forward once there are no alarm bells ringing.
The problem with this strategy is that the business owner may be leaving lots of opportunities to do better on the table. They may ignore the opportunity to be more efficient. They may achieve a reasonable return on investment instead of a spectacular return on investment. They may be operating on the basis of one day at a time instead of having a focused long term plan and end game.
The real question here is why business owners don’t periodically take time out to re-examine the fundamentals of their business. Okay, not everyone has a budget for getting in a business consultant or analyst. I get it. But if they can just systematically and periodically ask themselves the right questions, spend some time thinking about their answers (either alone or with their top team) and then write down their answers or conclusions, then they are in a far better position to make coherent judgments about the future and how they may influence that future.
As a former lending banker, I have watched many business customers react to questions about their business with blank stares. They have simply not taken the time out to work on their business instead of working in their business and they have a lot of unasked questions to deal with, before they can even begin to think about answering them.
If you have a framework that you can use to develop the right questions, this can be a terrific help. It can provide the illusive place to start and a mechanism to move through the analysis process. For this reason, I developed a business analysis framework which I call the “28 Point Business Analysis Framework”. It looks at a business from the point of view of 28 different functions and it poses questions in each of these functions, which the CEO should be able to answer.
In larger organizations, the CEO’s direct reports or department heads can contribute to the business review process. It is inexpensive to use and the results make it extremely worthwhile.
Click on the link below right now to view the full version of this article and to discover how you can use the 28 Point Business Analysis Framework to get a clear understanding about how your business is really performing…