First, identify all the supporting functions that are performed at the company and are necessary to ensure its core business. Each company will have its own list. However, most often it includes:
organization of accounting and tax services, control over finances;
conducting procurement and supply;
asset and real estate management;
development and support of IT structures;
personnel management and HR activities;
marketing and advertising strategies;
Providing customer support and service.
It is important to look luxembourg email list closely at the dynamics of the costs of supporting these core functions. Rising costs of supporting the back office may be a signal that a change is needed. If costs are increasing faster than the overall volume of business, then it is time to change.
A situation where revenue is growing but profits are not increasing indicates inefficient use of enterprise resources. This is especially true for companies that are expanding their branch network or launching new business areas.
The next criterion is whether the branches have their own back offices or divisions. This may serve as an incentive to review the overall structure of the company, especially if each back office has unique business processes (e.g. recruiting, IT infrastructure administration) that differ from similar procedures in other parts of the organization.
Analyze the need for change
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One important indicator is an increase in dissatisfaction among key employees with the quality or speed of tasks performed by back office staff. It is necessary to analyze the number of complaints about the work of employees engaged in auxiliary functions, even if they are not always justified. If you notice an increase in this indicator, this indicates the need to make changes. Employees engaged in direct company responsibilities must be confident in the deadlines for completing their tasks and in the quality of the work of back office staff.
In addition, the general business need for increased efficiency in resource use and improved manageability also points to the need for change. If necessary, the company is ready to create a centralized back office, even partially. Perhaps there is no need to allocate it into a separate legal entity if the business is small. In this case, combining support functions in an existing division will be sufficient. The economic logic of these changes will remain.
Analyze the need for change
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