Management consulting can be divided into to types - Soft and Hard. Soft consulting concentrates on the human side of an organization. Hard consulting concentrates on the processes, business structures, and in the end the "numbers".
The soft consulting is backed by the "hard" side of management consulting. Here Sigma Pi provides custom developed tools to track performance which provides the accountability structures that enables "management by exception".
Through an in depth analysis of the company, Sigma Pi identifies the Key Performance Indicators (KPI) for the company. It determines how to measure each KPI and creates benchmark performance targets. Then the only time that the owner needs to get personally involved is when the performance levels fall below those defined for a task.
While finances represent a major area of concern, they are by no means the most important. KPI's must address every area of a business from sale to production to delivery to customer support.
When all of the KPI's are displayed in a single weekly report to the CEO, you have a
Balanced Scorecard. This report has been jokingly called a Tahiti Report because, properly designed, it permits the owner to run his business from Tahiti.
Depending on the business, there are a number of other tools that Sigma Pi can implement. Each of which provides the controls on the business that gives the employee the ability to do their job within the limits of his responsibility and authority yet still provides the accountability to management and ultimately to the owner.
These include open to buy for a retail operation, "Over-Under" for contractors, menu costing and inventory control in restaurants, and job tracking and shop floor scheduling in a manufacturing environment. In the accounting department, cash flow forecasting provides critical controls to ensure that payroll gets met without excessive strain.
Finally, by creating the structures to capture performance and real costs, Sigma Pi can design incentive plans that rewards staff for superior performance based on increased profit. That is, when the staff's efforts results in profits that exceed the target for a job or task, a part of the increased profit is given to the employees responsible for the increased profit.
Sigma Pi Consulting - Adding to your profit & your life.
(c) 2010 Sigma Pi Consulting, LLC