As performance audit consultants, Stratsmith helps organizations to identify areas for improvement, optimize their operations, and achieve their goals more effectively and efficiently. We perform a systematic and independent examination of an organization’s processes and activities to assess their efficiency, effectiveness, and economy.
The purpose of a performance audit is to identify areas for improvement, recommend changes, and provide feedback to the organization. The focus of a performance audit is not to judge the individuals involved, but rather to evaluate the organization’s systems, policies, and procedures and suggest ways to improve them.
Stratsmith works with your organization to identify areas for improvement and provide recommendations on how to optimize your processes, systems, and activities to achieve your goals more effectively and efficiently.
Stratsmith’s Performance audit consulting services are based on the following core concepts:
Stratsmith has a data driven approach for performance audit and studies the following aspects of a business:
- Financial Aspect: These may include study of revenue, profit, operating margins, and return on investment (ROI), exposure to currency risk, credit risk, and market risk..
- Operational Aspect: These may include study of production efficiency, cycle time, and capacity utilization, exposure to supply chain risk, production downtime risk, and safety risk.
- Customer Aspect: These may include study of customer satisfaction, loyalty, and retention.
- Employee Aspect: These may include study of employee satisfaction, turnover, and productivity.
- Quality Aspects: These may include study of defect rate, first-time pass rate, and warranty claims.
- Compliance Aspects: These may include studying compliance with regulations, internal policies, industry standards as well as the effectiveness of internal control systems.
- Risk Management Aspects: These may include studying risk exposure, risk mitigation, and compliance with risk management policies and procedures.
- Technological Aspects: These may include studying technology innovation, user satisfaction, data security etc.
Some of the measurement systems Stratsmith uses in performance audits are:
- Balanced Scorecard: This is a strategic management tool that measures an organization’s performance across four perspectives: financial, customer, internal process, and learning and growth.
- Six Sigma: This is a data-driven methodology used to improve processes and eliminate defects, with a focus on reducing variation and improving efficiency.
- Lean Management: This is a continuous improvement methodology used to eliminate waste and improve efficiency, with a focus on reducing cycle time and improving flow.
- Total Quality Management (TQM): This is a customer-focused approach to quality management that seeks to continuously improve processes and products, with a focus on customer satisfaction and continuous improvement.
- Activity-Based Management (ABM): This is a cost management approach that seeks to understand and improve the activities that drive costs, with a focus on reducing waste and improving efficiency.
- Key Performance Indicator (KPI) systems: This is a set of performance metrics used to measure the progress of an organization in achieving its goals and objectives.
The specific measurement system used in a performance audit will depend on the objectives of the audit and the goals of the organization. The goal of using a performance measurement system in a performance audit is to provide an objective and comprehensive assessment of an organization’s performance, identify areas for improvement, and help the organization achieve its goals more effectively.
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