When Is the Last Time Your Business Had a Performance Audit?

So, What Is an Agency Performance Audit?

An agency performance audit is an independent examination of a business, program, function, operation or the management systems and procedures of an entity to assess whether the entity is achieving economy, efficiency and effectiveness in the employment of available resources as well as its procedures and processes.

When Is the Last Time Your Business Had a Performance Audit?

Successful businesses are responsive, meaning they are able to recognize changing customer demands and preferences and react quickly. If a company cannot lead or be in a constant state of innovation and development, it will not be able to keep up with its competitors. The company will find itself quickly brushed aside and that can lead to a downfall or even worse… failure!

According to smallbiztrends.com, the Top 10 causes of small business failure are as follows:

  1. No market need: 42 percent;

  2. Ran out of cash: 29 percent;

  3. Not the right team: 23 percent;

  4. Got out-competed: 19 percent;

  5. Pricing / Cost issues: 18 percent;

  6. User unfriendly product: 17 percent;

  7. Product without a business model: 17 percent;

  8. Poor marketing: 14 percent;

  9. Ignore customers: 14 percent; and

  10. Product mistimed: 13 percent.

Guess what… every one of the top 10 causes of small business failure could have been identified as a result of an agency performance audit. If you fail to act at the right time, it’s almost guaranteed that your competitors are going to surpass you. Weaknesses must be identified so that changes can be made to ensure that the business has the capabilities it needs moving forward.

 An Agency Performance Audit:

  • helps a business reduce costs (#’s: 2, 3, 4)

    • Highlighting excessive materials and labor costs

  • helps a business recognize and respond to new customer demands (#’s: 5, 6, 9)

    • Identifying quality control issues, staffing inefficiencies, and opportunities to outsource

  • helps a business identify which processes & business models are no longer effective (#’s: 1, 7, 8, 10)

    • Eliminating redundancies and processes that are not worth the time and investment

The Bottom Line: Streamlining and standardizing your business processes, reduces waste and allows the company to shift its daily focus from operations to innovation/research and development which ultimately makes your company better able to stave off the competition. When business processes are reliable and efficient, your business will have more resources to dedicate to growth and development.

Are you interested in having an agency performance audit done to assess your businesses strengths, weaknesses, opportunities, and deficiencies? Schedule your free discovery call here.

Tyrone RobinsonComment