Business Management and Operations Analysis

The Business Management and Operations Analysis (BMOA) is a comprehensive study of a business’ operations. The objective of the analysis is to provide management and the board of directors with information and materials that will help in planning and decision-making. Strengths, weaknesses, opportunities, and threats for the business will be identified with alternative courses of action. This study also provides the business with benchmark materials from which to measure progress and growth during the next few years. The BMOA service is becoming nationally recognized as a valuable tool to assist agribusinesses and cooperatives.

Before the BMOA will begin, the organization’s directors must request the audit and complete the KCARD’s Technical Assistance Packet. Furthermore, the board should have a strong commitment to increasing the efficiency of their organization, i.e. reducing operating and overhead costs and increasing marketing efficiency.

The BMOA program is an intense week long study of a business’ operations. During the BMOA, KCARD will interview key business personnel (board members, manager, and key staff), members/owners, buyers, suppliers, and community leaders to identify common themes in the business operations. KCARD also conducts detailed investigation into the financial condition, record keeping, and legal documents of the business. A verbal report is given to the business immediately after the completion of the BMOA, and a written report is submitted to the business with ten (10) working days. The BMOA program is designed to assist the businesses, but it also provided in-depth details for KCARD staff to identify and develop business service opportunities.

The procedure for the BMOA is as follows:

KCARD will:

1. Collect relevant operating and marketing data and industry standards prior to the audit.
2. Review business plans, policies, financial statements, and other relevant business documents preferably prior to on-site analysis.
3. Observe and analyze all physical operations and conduct a time and motion study if applicable.
4. Interview board, manager(s), employees, selected members and key community agriculture leaders to ascertain and evaluate goals, plans, organizational structure, guidance and direction in communications within the organization.
5. Analyze financial data and the control systems within the organization.
6. Process data from the interviews, financial statements, and relevant documents.
7. Compare the organization’s performance with industry standards (if available).
8. Identify strengths, weaknesses, opportunities, and threats, and make specific recommendations for acting upon identified opportunities and improving or solving each concern.
9. Make a preliminary oral report to the board immediately after the audit.
10. Prepare final report for the board and manager.
11. Meet with participants and review the report and discuss needed follow- up with the organization.
12. KCARD will be available for future questions pertaining to the completed Business Management and Operations Analysis, the implementation of its recommendations and the management analysis process.

Time Frame of Audit:

• Begin on a Monday and conclude Thursday evening (4 days total).
• Oral report will be delivered to the board of directors within 3 to 7 days of beginning of analysis.
• Final confidential written report will be finalized within 3 weeks of the beginning of the BMOA.

Cost: TBD

Advantages:

• Provides managers and board of directors a detailed outline of strengths, weaknesses, opportunities, and threats.
• A comprehensive written plan to assist the business with planning and decision-making.
• Gives the audited business a more comprehensive understanding of the organization. This gives everyone a clearer understanding of assistance it needs to strengthen its business.
• The Business Management Operations and Analysis will be a way to document the audited business’ efforts to improve its business operations.