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Business Optimization - Business Improvement to the EXTREME

Business optimization isn't about making a sporadic improvement here, and a arbitrary improvement there.  It isn't using less toilet paper, or even a $20,000 Six-Sigma or Lean project that saves $500 in laser paper.  It isn't about small improvements at all.  Business Optimization is about:

  • Finding THE business levers/drivers that return the biggest profit impact.
  • Evaluate the millions of possibilities to get the near perfect answer.
  • Finding the best ways to drive those levers/drivers it to your new goal - and KEEP them there.
It isn't easy - and that is why it is talked about more than it is done.  It isn't something that is going to STAND OUT in a financial statement, or operation.  It takes tools that allow you to see and prioritize the unseen relationships (financial, market, client, product, etc). It takes tools that allow you to test the millions of possibilities to find the BEST ones.  It is about pulling all those tools together to optimize the profitability of a company.

Are sales the true driver of your profit as a well run organization should be?
  • If so, what are the connections within and across your products, clients, seasons, and such that you can exploit to optimize sales?
     
  • If not, what are the expense categories that are robbing your profitabiloity?  How do you find them?  Is it Labor, improper costing, high-cost clients, interest,etc?  How do you optimize them once you find them?  There are ways to measure.

Are you sure?  Just as the scientist need microscopes, and doctors need MRIs to solve complex issues, it takes specialized tools to uncover these business relationships also - and to derive how they affect profitability.  This special combination of data, finance, statistics, and business skills is what allowed us to find the $10 million process manufacturing problem that had eluded a fortune 500 engineering team for over a year.

OPTIMIZING is not solely optimizing from within.  It is also about OPTIMIZING from the outside with mergers and acquisitions!  It is all about the return - and optimizing it.   What are the right acquisitions to propel company the farthest?  How do we optimize the merger itself to optimize return?

How Do You Go About Optimizing A Business?

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