There has been a focus on financial structures over the last decade that some of the fundamentals have been forgotten. Business are managing by numbers and KPIs and are missing major inefficiencies. There is some truth to the saying looking after the cents and the dollars will look after themselves. By fixing up the many small issues in the business we can often achieve bigger returns than just focusing on the big items in the organisation. Applying techniques from Organisation Methods Management and Total Quality Management allows us to achieve fundamental changes.
Organisations are similar to icebergs in that the 2/3rds hidden below the surface is the most likely to sink the business. It is the intangible issues that are the biggest cost and the biggest risk. The communication gaps, divisionalisation conflicts, systems failures, fraud, etc are occurring under the covers often not seen by management.
In reviewing risk management, the biggest unknown risk exposure comes from the forgotten parts of the business. Current trends focus on key earners and key costs and there is less focus on the other parts of the business, it is these forgotten areas that have more chances of going wrong.
One of Dacono's focuses is to improve the integrity of strategic information flowing to management. We are seeing too often management making decisions based on flawed information.