Think of it as a comprehensive medical check-up for your company. Much as heart, lung, and renal functions are tested during a personal medial check-up, vital corporate systems are examined.
Unlike a medical exam, however, which specific practices are appraised depend upon the type of business and its managers’ presentment.
Candidates for a packaged goods
Once a list of practices to be reviewed is agreed upon, your current practices are analyzed. There is no need to conduct industry surveys because Teton Sands engagement principals are familiar with industry best practices. Current practice and gap analysis, gap closure cost estimates, and presentation to management can therefore usually be completed in 90-120 days
Why conduct a Best Practice Review?
A clean bill of health enables a business’s management team to focus on honing existing operations with confidence that core practices are healthy. More often than not, however, reviews identify practice improvement opportunities with potential to significantly increase efficiency and value. Gaps between current practice and best practice are measured in terms of potential additional cash flow and valuation. Costs of bringing current practice up to best practice are also estimated.
Rank ordering of potential opportunities, as shown in the example pro-forma summary, is a valuable planning tool that managers use to target business improvements for maximum ROI.
And, many clients find the experience a valuable opportunity to informally and confidentially query peers with wide industry perspective.
