The American President – John F Kennedy once famously said; “The time to repair the roof is when the sun is shining”. This phrase so accurately suggests that you should act on identifying and fixing your problems when the things are going relatively smooth rather than waiting for the bad times to come and be left with no other options.
The concept of “Operational Audit” follows the same principle as it is basically a forward looking process where you evaluate your current performances and procedures to identify any areas of improvement for better results in the days to come.
At times, an organization might seem to be running perfectly and yielding good returns for the stockholders and everyone looks happy. However, a closer look at the performance of the organization can rather reflect a telltale sign that it is actually underperforming when it should be yielding much higher rate of returns. Other times, organizational slackness can be seen much more explicitly by factors such as low sales, high employee turnover, decreasing rate of retained customers, increased expenses, and much more.
It is in such situations, organizations fallback to the trusted toolkit called “Operational Audit”. The term audit is more commonly associated with financial matters of an organization. But Operational Audit – though it includes financial reporting as well – goes further beyond the financial scrutiny and covers every aspect of the organization management.