As young companies grow, they must make the transition from entrepreneurial start-up to professionally managed businesses. What are the management processes that need to be put into place to take the company to the next level? How should the CEO prioritize these improvements without weighing the company down with unproductive. bureaucratic procedures? We will assess where a client company is in this process, identify the next logical steps in its evolution, provide approaches and formats for needed improvements, and then assist in implementation.
Chandler has developed an approach for implementing these basic controls without over burdening the organization with bureaucratic constraints. He calls it the “90-10 approach:” Designing a process that provides 90% of the benefits with 10% of the bureaucracy. Priorities will be established in collaboration with management, and improvements will be implemented in an orderly sequence over a period of months rather than years.
Some of the processes we have installed at client companies include the following:
- Weekly dashboard of key performance metrics
- Monthly financial/operating statements prepared within 5-10 days of each month end.
- Departmental budgeting and expense control system
- Management by objectives (MBO) system and related incentive bonus plan for management team members
- New product planning and review process
- Management performance evaluation and salary review process
- Comprehensive quality management system
- Productivity metrics and improvement programs
- Identification and monitoring of key cost drivers
- Capital budgeting and cash management system
- Approval authority matrix for expenditure sign-offs and controls
- Field sales performance rankings, compensation programs, quota setting, contests and incentives