What parts of the organization can be developed with management consulting services?
- Products and Services
A company can be thought of as a body with separate parts that all work together. These parts ensure the survival and longevity of an organization. All organizations need their employees to do their daily operations. They also need to constantly innovate their products and services in order to perform well financially.
Management consulting in the Philippines, as an industry, realizes that these things concern their clients. Thus, consulting services have offered solutions that improve and develop these organizational parts to make their lives easier. These are the ways consulting helps you develop your organization more:
The employees are the backbone of any company. Therefore, employers should invest in activities and programs that will help them grow in a professional and personal level.
Activities that target professional growth are:
- Job training targeted at improving the skills of each team, department, and individual
- Company-made online courses
- Offering scholarships to employees who want to pursue further education
- Regular presentations of important industry updates
Activities that target personal growth are:
- Leaders discussing business core values regularly with employees
- Offering wellness programs that reduce stress (yoga, meditation)
- Presentations on soft skills
- Managers asking employees quarterly feedback on their view
Employee development is the priority of the Human Resources Department. Management consulting services can give you suggestions in properly implementing these activities. Consultants should then know what can be done and what cannot. At the end of the day, whatever will push through, should match with the workplace culture and business goals.
Products and Service Innovation
Companies are only as successful as the value of the products and service that they offer. These products and services are managed by different departments with each having a role to play:
Research and Development
- Formulates the processes of new products and services
- Ensures every business offering is up to current company standards
- Monitors current processes
- Chooses the pricing
- Writes the description of each product and service
- Plans the promotions
- Makes sure that the manufacturing is cost-efficient
- Applies new technologies to update old manufacturing systems
Therefore, companies have to constantly update them. The needs of their customers are always changing, and they expect brands to adapt with the times through their consumer offerings. Companies update the products and services they offer to their buyers through these different ways:
- Add new products and services to their list of offerings
- Improve the operations of current offerings
- Change their marketing strategies
If your company needs to update their product and services by changing the way they are marketed or made, management consulting in the Philippines can help by giving you additional research helpful for implementing these changes. On the other hand, consulting businesses can help in the planning of new consumer offerings.
Financial performance per year, month and quarter is an assessment of how well a firm uses its assets to accomplish different goals and generate revenues based on historical data. It is a good measurement of any organization’s effectiveness.
Additionally, the financial performance of all businesses become public information since there are regulations that all of them have to adhere to. Companies who performed better will be seen more positively by the public compared to those who performed poorly. Because data can be too difficult and time-consuming for brands to collect and analyze on their own, many choose to outsource management consulting services to do it for them.
Analyzing the performance of a company requires these things:
Revenue growth per period (annually, quarterly, monthly)
- To measure how consistent the company is gaining in terms of revenue from time to time.
Revenue generated from each client and employee
- Clients are the people who pay for your products and services. Here, you can find who are your most loyal ones and who are the least.
- If there is one client who is responsible for more than 10% of your revenues, the company will be in trouble if he/she ever leaves.
- How much revenue each employee made, is also an indication of his or her productivity.
Profit Margin (Gross, operating, net)
- A positive gross margin number shows that the revenue gained by the goods sold is greater than the costs required to make those.
- Operating profit margin shows the organization’s capability of paying ongoing operating expenses such as research and administrative.
- Net profit margin is responsible for showing how much money is left after paying expenses, debt interests, and taxes, for necessary business investments in the future, and cash dividends for investors.
- For short-term obligations and long-term debt interests (loans, bonds, credit) using just cash.
Operational Efficiency for accounts receivable and inventory
- Accounts receivable refer to the credit your customer pays for goods and services used, and an efficient company will manage to gain cash from them afterward on time.
- Inventory is the things you sell, and you need to measure how fast you are able to sell.
- How much money lent from investors and debt is helping your business grow.
A company is an example of an organization with parts that help support it as a whole. These parts need to be maintained, improved, and developed upon to ensure the longevity of every organization. Management consulting services are what companies can ensure to develop the different parts of the organization.