In Focus: Company Health Check
How do I grow my business? How do I make my operations more efficient? Most of us have pondered over these (and other similar) questions at some stage within the lifecycle of our businesses. In order to grow one’s business and achieve our next set of corporate objectives and goals, an important first step is to gain an unbiased understanding of the current status of the business and its operations. This is where company health checks or operational audits come in.
By evaluating all the different components and departments of an existing entity, a company health check provides an idea of where you are now and what needs to change to get you to where you want to go.
A company health check typically involves evaluation and analysis of key business components such as:
- Organization charts and structure including profiles and background of key management,
- Financials including existing financial statements,
- Policies and procedures,
- Future plans and objectives,
- Sales and marketing strategies,
- Operational plans and processes,
The procedure for a company health check involves gathering of relevant information through workshops with the concerned departments and their management, and through company documents such as financial records. This information is then analysed against industry benchmarks, standards and best practices, and internal controls. Following the analysis, recommendations including road maps designed to achieve strategic objectives are suggested.
While it is possible to conduct a company health check or audit internally, it is generally recommended to mandate an independent firm. Hiring an independent firm that is not invested in the day to day operations helps provide an objective and unbiased viewpoint. Furthermore, an independent firm that is not necessarily innately familiar with the company can assist in providing new strategies that perhaps, might not be obvious to those within the company.
If used correctly, a company health check can serve as a valuable tool to assess your current capabilities and what further steps are necessary to achieve a variety of objectives including more efficient and streamlined operations, growth in terms of sales and revenues, increased productivity and lower costs.