Business improvement is the ability to extract the optimal potential of an active business and to bring it to peak profitability and effectiveness. Business improvement enables to manage the business in its new state continually, without external assistant, over a long period of time.
KCR’s concept of business improvement is based on three main aspects: business and economy, structure and operation, and financing and funding. Our improvement squad performs in-depth analysis and closely tracks these three aspects using three main stages: business and economy diagnosis, formulating an improvement and streamlining plan, and finally – ongoing business support to implement the improvement plan. At the end of the support process the company managers are handed back control.
The business economy aspect refers to all economic data of the company, including: the asset composition, the economic value and accounting value, the state of liquidity, the budget, cash flow management, locating and minimizing actions resulting in loss, locating unrealized potential actions and improving them, analyzing activities according to varied business dimensions, up to the individual product or service (activity sectors, market segments, geographic distribution etc.), analyzing debts and liabilities as well as diagnosing the financial needs.
The structure operational aspect includes the company’s legal structure – the holdings structure, transactions with related parties, and prices of transfer; the ownership and management structure – transactions of interested parties, dividend policy, quality of management and the nature of relations between the owners; the company’s structured organization, its information systems and reliability of reports, process of inter-organization improvement and streamlining processes, conduct with suppliers and clients, inventory management method, manpower structure and from a wider point of view – analysis of needs and understanding the market in which the company operates.
The financial and funding aspect includes the following data: debt and capital structure, repayment power and meeting financial stipulations, streamlining and reducing financing and credit expenses for the company, as well as negotiating with the banking system, clients and suppliers, creating trust with financial institutions, credit management and fundraising.
Business improvement is a long process which involves business focus, continuous measuring and determining KPIs, changing habits, creating appropriate organizational culture and changing and improving work process is in all organizational department and layers. Business improvement can be done by changing the structure of activity, changing the business mix, changing the product mix, developing products or developing a market, merging and acquiring and creating strategic partnerships. In each improvement project we ensure to examine each company individually and to adapt the improvement process for it according to its state and to the goals defined by the management and the board of directors. Despite this, it is possible to state a number of stages which constitute a theoretical basis for the required method of action for an effective improvement process.
First stage: business diagnosis and extended financial review
At this stage, the KCR improvement team prepares an extended financial review which includes one or more of the sections described here. The review is meant to clarify the company’s existing state precisely in order to locate the improvement drivers:
Second stage: formulating the improvement plan
Based on the comprehensive situation report, the KCR improvement team formulates an improvement and streamlining plan for the current and subsequent work years. The improvement plan handles all company’s activity interfaces:
Third stage: ongoing business support
At this stage, the KCR improvement team accompanies the actual realization of the submitted improvement plan, in complete and tight cooperation with the companies management:
If you are interested in changing the state of the business, to grow and to change the rate of growth, or if you feel a sort of “business stagnation”, random or permanent difficulties, “trudging” in place – business improvement unequivocally results in a turnover of business results.
For this purpose, it is required to perform wide and in depth work and research by a team of experts – which we provide.
Following are several reasons why you should hire KCR’s improvement team: