Top 10 Barriers to B2B Transactions

Our Methodology Determines the ROI of Process Improvements Example ROI Calculation

Problem Solving And Performance Management

A business control system has two major components. They are a measurement system and a management system. A measurement system is a comprehensive set of measures which capture the performance of the system against its transaction demands (volume and defects) as well as the cycle times associated with normal operations and improvement projects. A management system is a set of behaviors associated with the capture, reporting and development of corrective action planning associated with management’s reaction to the measurements.

Our approach is to establish an internal team of people who will serve as business controls analysts who will be trained in assessment and reporting processes. We will refine and use the identified performance measures associated with the transactions of the departments they are assigned to review. We will work with them to prepare reports on a regular basis – once or twice a month. These reports will summarize defects/complaints, corrective actions and the status of ongoing projects associated with the leadership priorities.

With this information and associated trends, the CFO will be able to quickly pinpoint areas that are having difficulty prior to the situation getting out of hand.

Every management team is authorized to handle a certain set of transactions. The Team is authorized resources and decision authority in amounts required to successfully carry out this mission.

The management team will usually submit a management plan or strategy, which is plans to use over time and along with the plan, is a budget, which outlines the resource requirements.

Problems occur when the specific configuration of resources (manpower, machinery, materials, and methods), which is put in place and financed via the budget is not adequate to handle the demands as represented by the actual transactions.

The actual transactions have attributes like quantity, complexity, frequency, etc., which are somewhat anticipated by the management plan, if however the environment changes (which it always does) or there are unanticipated factors (which there always are) the plan may not anticipated the correct specific configuration of resources need to avoid problems.

When breakdowns occur they can be addressed by first making an assessment of the transactions with respect to the demands it places on the inputs in place. Is the manpower (people with appropriate skills) consistent with demand, is the appropriate machinery (equipment, space, etc.) being deployed in sufficient quantity to meet demand; are the required consumable materials (supplies, books, gas, etc.) being provided; and are the best methods (processes) used? Additionally an assessment of the management’s knowledge of the transactions (current and anticipated) may reveal that there is insufficient environmental understanding to properly plan for the correct resources – do they really understand the demands placed on them by their mission?

Proven assessment methods exit to assist in answering these questions and the consistent use of a problem solving system will easily facilitate the correction of problems as they are discovered.

A systematic approach to both problem identification and problem solving at the transaction level should lead to quick solutions to immediate problems and the understand of the connection between the demands of the transactions and the capabilities of the organization will ultimately lead to prevention of problems.

The establishment of a Business Controls system is the first key step in this overall process.

Our short-term objective is to enable the staff to provide the CFO with the ability to quickly respond to problems using a simple, yet effective problem solving method that will be used by all staff members (for consistency). The corrective actions identified during problem solving will be summarized by department, and tracked to conclusion. Ultimately at the end of the project, the CFO staff should be able to conduct reviews of each department and its budget based on transaction driven requirements, provide comprehensive performance reports, describe corrective action plans, and make recommendations to the CFO for major projects required to improve operations.

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