Starting and running a business is a challenging endeavor. Despite the best efforts of business owners, countless businesses fail each year.
While there are many reasons why businesses fail, one of the most common mistakes made by business owners is failing to conduct a contemporary functional technical business audit.
A traditional financial audit is a necessary tool for ensuring financial compliance, but it fails to address many of the issues that can cause a business to fail.
A contemporary functional technical business audit looks at the deeper functioning of the business to identify and address issues such as inefficient processes, inadequate infrastructure, inadequate training and so on.
When conducting a contemporary functional technical business audit, it is important to look not just at the financial transactions, but also at the overall functioning of the business.
It is important to look at the organization’s internal processes and procedures to identify where improvements can be made. It is also important to look at the infrastructure of the business, including the hardware, software, and other technology the business relies on.
If you can’t measure it, you can’t manage it
Peter Drucker (Management Thinker)
Peter Drucker said that “If you can’t measure it, you can’t manage it.” So measuring improvement with proper KPIs & metrics is essential for today’s contemporary businesses. But most businesses don’t have time in their mechanical routine. Businesses take less time in evaluating their performance in many functional areas. For example, actually, it is important to examine the training and development of the organization’s personnel.
Are the employees able to do their jobs effectively and efficiently?
Is there adequate training to ensure that employees are up to date with the latest trends in the industry?
Are there opportunities for employees to learn new skills and increase their knowledge base?
A contemporary functional technical business audit is also important to ensure that the business is adequately prepared for any unforeseen circumstances.
This may include things such as a lack of understanding of customers and the potential for natural disasters. It is important to ensure that the business is prepared for any and all eventualities.
Some conclusive thoughts…
Finally, a contemporary functional technical business audit should also focus on the customer experience.
Are customers satisfied with the products and services that the business offers? Are customers able to find the information they need easily?
Are customer service representatives knowledgeable and able to provide assistance?
A contemporary functional technical business audit can help business owners identify problems and issues before they become too difficult to resolve. By addressing weaknesses in the business and making improvements, business owners can increase their chances of success and reduce their chances of failure.