Initial screening and identification of problem areas

The first stage is a practical audit of how the business system actually operates.
Its purpose is to identify quickly where the principal sources of inefficiency, functional failures, internal misalignments and bottlenecks may lie and which of them require in-depth analysis.
At this stage, the key interdependencies between management, technological processes, procurement, logistics, information flows and the allocation of responsibilities are analysed.

Areas of focus may include:

• areas where costs are opaque or excessive;
• inefficient elements or configurations of production processes;
• breaks in logistics flows and unnecessary operations;
• procuremet and supply issues;
• duplication of functions;
• areas of unclear responsibility;
• dependence of processes on specific individuals;
• distortions in information passed between the operational level and management;
• areas where the system functions on paper but creates losses in practice;
• bottlenecks affecting lead times, quality, resilience or management control.
   

What you receive from the audit
You receive an initial map of weaknesses in the business system:

• a list of the main problem areas;
• a preliminary assessment of their impact on the system’s operations;
• an understanding of where losses may arise;
• identification of the areas requiring deeper diagnostic analysis;
• a basis for deciding on further analysis.
   

The audit answers the first practical question:
Where exactly is the business system losing efficiency, functionality and control?

In-depth analysis of causes and development of potential solutions

While the audit shows where the weaknesses lie, the diagnostic phase explains why they have arisen.
At this stage, the identified problem areas are analysed in depth. The purpose of the diagnostic assessment is to distinguish symptoms from underlying causes and determine which elements of the system are producing the undesirable outcome.
In a complex business system, the source of a visible problem often lies elsewhere.
The source may lie not only in the management system, procurement or logistics, but also in the way the production technology itself is configured. Existing technological solutions may no longer be compatible with current market requirements, acceptable cost levels, energy-efficiency objectives or future development needs. Individual production areas may not be sufficiently integrated with one another, while outdated technological solutions may constrain productivity, resilience and financial performance.
For example:

• rising costs may be linked not only to raw material or energy prices, but also to process losses, an inefficient configuration of production processes, outdated technological solutions, ineffective procurement, unnecessary logistics operations or weak coordination between functions;
• declining margins may result from internal dysfunctions that are not visible in aggregated reporting;
• missed deadlines may stem not only from logistics, but also from poor coordination between procurement, production, warehousing, transport and sales;
• problems with management control may be caused not by particular individuals, but by unclear authority, competing decision-making centres or distorted information flows. 

The diagnostic process determines:

• which problems are symptoms and which are root causes;
• how individual failures are interconnected;
• which technological, managerial, logistics or procurement factors generate losses;
• the extent to which existing technological processes meet current market requirements and acceptable cost and energy-consumption levels;
• whether individual production areas are sufficiently aligned with one another;
• which technological solutions are outdated or constrain the efficiency of the system;
• where technological modernisation or the reconfiguration of production processes may be required;
• which processes reduce the resilience of the system;
• where information becomes distorted;
• which areas require priority attention;
• which changes can deliver tangible financial or managerial benefits;
• which solutions would be purely cosmetic. 

What you receive from the diagnostics

You receive a structured map of causes, consequences and potential solutions:

• a realistic picture of how the business system actually operates;
• identification of the principal causes of the problems found;
• an understanding of the links between individual failures;
• an assessment of their impact on costs, resilience and management control;
• an understanding of whether specific technological processes require modernisation, reconfiguration or further specialist assessment;
• identification of priority areas for change;
• proposals for potential solutions;
• a basis for developing a plan for further transformation. 

The diagnostic phase answers the second practical question:
Why have the identified problems arisen, and what is genuinely worth changing?
 

Design and implementation support for the required changes

Transformation does not begin with a desire to change the business. It begins with an understanding of which elements of the system need to be reconfigured and what outcome must be achieved.
Following the audit and diagnostics, the objectives, priorities and potential areas for change are agreed with the client.

Transformation may include:

• developing a change roadmap;
• determining the sequence and priority of actions;
• reviewing selected management processes;
• clarifying areas of responsibility;
• adjusting the logistics or procurement model;
• analysing opportunities to reduce costs;
• identifying areas for technological modernisation or the reconfiguration of production processes where the diagnostic findings indicate that this is required;
• strengthening supply chain resilience;
• eliminating internal distortions in information flows;
• preparing the company to raise finance, enter into a partnership, restructure, sell an asset or acquire one;
• preparing the business system to work with European partners, investors or international programmes.
   

The scope of our involvement is tailored to each engagement.
The work may be limited to developing a transformation roadmap and recommendations. Further implementation support can be agreed where required.

Independent oversight of the transformation process
Any effort to change a complex business system encounters internal resistance.
The reasons may vary: established practices, informal centres of influence, conflicts of interest, insufficient coordination between functions, distortion of information, or the formal implementation of decisions without actual changes to processes.
The client may therefore need an independent assessment of:

• how the changes are progressing in practice;
• where delays or resistance arise;
• why certain decisions do not produce the expected results;
• which parts of the system are merely creating the appearance of implementation;
• where the plan needs to be adjusted;
• which new problems emerge during the transformation.

In this role, we can support the transformation as an independent adviser, providing oversight of the process and giving the client an objective picture of the changes actually taking place.

What you receive from the transformation
Depending on the agreed format, you receive:

• a roadmap of the required changes;
• defined priorities and a sequence of actions;
• practical recommendations for reconfiguring individual elements of the system;
• support in implementing the agreed changes;
• an independent assessment of the progress of the transformation;
• information on the causes of delays, resistance or deviations;
• the ability to adjust the process in a timely manner.

The transformation answers the third practical question:
How can the elements of the business system that genuinely affect its efficiency, resilience and management control be changed?