MEC

Empowerment

Assessment

The Initial Assessment

6. Operations & Profitability

The next primary area that MEC studies is the overall operations of the company with regard to profitability. It is here that most improvements can usually be made with the aid of an objective outside observer. Operations extend from particular corporate management styles and methods, through department management all the way down to customer service and delivery of the product, including after-sale services, training and continued support. Often referred to as "business process," the operations and internal procedures a company utilizes in creating a product or service is constantly re-engineered as new technologies and services become available which may streamline certain processes, automate tasks, or replace entire procedures with new cost-saving tools, integrated systems, outsourced services or alliances. In the competitive race for market share and profits, many areas can be considered which might improve profitability, and MEC looks generally at the following areas in an organization:

  • Fundamental business model
  • Gross Profit Margins and Earned Net Profit Ratios
  • Overhead and infrastructure requirements
  • Overhead-to-profit ratios
  • Profit models
  • Reasons company is making money or not
  • Operational flow / business process
  • Project schedules and management controls for services
  • Manufacturing processes and quality controls for products
  • Supply chain processes and management
  • Personnel
    • How obtained and why
    • Compensation & benefits
    • How oriented & trained
    • Individual strengths and weaknesses
    • Employee communications
    • Management strategies
    • Motivation and reward systems
    • Additional personnel needed
    • Extraneous personnel
    • Employee improvement through continued education
    • Key personnel ideas for profitability improvement
  • Time and motion observation
  • Problems already recognized
  • Management ideas for profitability improvement

Assessment - Overview

The Initial Assessment

1. The Client Dialogue
2. The Management Dialogue
3. Technology Evaluation
4. The Financials
5. Contracts Review
6. Operations & Profitability
7. Marketing
8. Industry Relations
9. Investment Strategies
10. The Report

Optimization

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