DRIVE VALUE THROUGH OPERATING SYSTEMS!
In addition to a knowledgeable and ambitious management team, developing innovative operating systems and procedures enhance the value of a business. Effective operating systems and procedures must be reliable, updated and maintained regularly, documented systematically, administered consistently, and adequate for growth of the business. Operating systems, or formalized business processes and procedures, are utilized most often to improve the sustainability of a business’ cash flows; therefore, a focus on rapid growth and value maximization requires a business owner to integrate sophisticated operating systems and procedures across multiple business functions. These systems may include:
- Enterprise Resource Planning (ERP) – streamlines back-office; accounting and financial applications, supply chain management, distribution, product/service planning and pricing
- Customer Relationship Management (CRM) – manages/analyzes customer interactions and data; marketing, sales, service
- Human Capital Management (HCM) – employee recruitment, hiring, scheduling, compensation, benefits, development, performance
- Enterprise Content Management (ECM) – organizes/stores documents relating to business processes
The most desirable businesses have the capabilities to maintain their profitability after a sale, and implementing standardized systems and procedures validate continued success to prospective buyers. A qualified investment banking team can provide initial direction for enhancing this value driver.
Leave a Reply
Want to join the discussion?Feel free to contribute!