Management Audits are essential part of running a business. When was the last time you did a management audit? Most small companies never do one unless it is required by lenders, government agencies, or shareholders. A third party review will help you take a closer look into areas that may need improvement and determine where your company is running at maximum efficiency.
The fact is that It’s a healthy practice to audit some or all aspects of your business periodically to ensure you have sound business practices in place. Here are the main areas that a management audit may cover and why it is important to review them:
- Operations and Production – Audit your internal processes to ensure efficiency in work flows, quality control, inventory control, purchasing process, risk/insurance coverage, and optimal conditions of facilities, equipment,machinery, and tools.
- Marketing and Public Relations – Audit your marketing plans and its implementation; review your marketing strategy and determine if your price, product, place, and promotion meet current market conditions; ensure that your customer is satisfied; decide if you need to engage in an advertising or public relations campaign; answer the key question: Are your marketing and sales strategies producing measurable results?
- Research and Development – Audit your current R&D to ensure your
- company keeps its competitive edge; determine if your technology is at the appropriate levels; is your product development and timelines adequate; answer the million dollar question: Is your innovative process up to the task to move your company forward?
- Financial and Accounting – Audit your financial procedures; review your records and profit and loss statements; decide if your financial goals are met, if your budget is adequate, and if you have any capital expenditures that will need financing; ensure your credit and collection procedures are successful; find answers to the bottom line question: Is your company in sound financial status?
- Management – Audit your managerial processes, this is probably a difficultaudit area as it involves upper level management; Determine if you have a clear strategy and if your decision making and problem solving processes are being followed at all levels; define your structure and its leadership; review that contractual obligations and government regulations are being met. Know where the buck stops!
- Human Resources – Audit your workforce management; review your hiring, training, capacity building and incentive programs; pay special attention at your communication processes and internal policies.
Information Systems and Technology – Audit how information is gathered, stored, analyzed and utilized. Make sure you have developed competencies to maintain your competitive edge; that systems are up to par, secure, and scalable to accommodate your growth. Contact Starfish*Global if you need help, we’ll be glad to help out.