What Is a Business Assessment? Article 1 of 3

This is the first in a three-part series detailing the Value Creation Assessment offered by Wyatt Matas.  Check back for articles describing how a business assessment is performed and what the deliverables are.  Or if you’d like to have the entire white paper emailed to you, just drop a note to info@wyattmatas.com.

 

As healthcare entrepreneurs, we often lose ourselves in the day-to-day grind of operating our companies. To make sure we are climbing the right mountain, it is helpful to use a business assessment tool to evaluate your direction, benchmark your current status and map out a plan for the current environment.  A business assessment tool, which we at Wyatt Matas call our Value Creation Assessment, gives business owners and healthcare executives the confidence to put their heads back down and keep driving forward, knowing they are creating value for their company employees, customers and patients.

What is a Business Assessment?  At its essence, a business assessment is a value creation plan. It is a to-the-point set of action plans that guides the company for the next 18-24 months. Often, entrepreneurs don’t think about creating value until they are ready to exit the business. However, value creation should be one of those critical measurements that executives should think about executing against weekly.  It drives quality of care, employee retention, and, of course, growth and profitability, as described in our article, Why Value Creation Matters.  A business assessment evaluates the current state of the business, takes into account the status of the industry and provides a road map for creating value.

As with a strategic planning process, it is best to have third party to conduct a business assessment.  We see companies over and over again conduct their own evaluations only to reconfirm false assumptions, which leads to faulty action plans. As business owners, we notoriously overstate how good we are.  Occasionally, we need someone to confirm or deny this for us; otherwise, we could be building our castle on shifting sand.  A business assessment can be conducted very inexpensively considering the confidence and direction it can bring to a company.

While a third party may lead the business assessment process, the experience should be collaborative between the company and the evaluator.  Hopefully, the evaluator has the industry experience to bring new insights to the table, but the company’s employees are the ultimate experts.  It may take a third party to unlock the expertise as it relates to this exercise, but an evaluator’s plan develop alone in an office will be useless without real collaboration from the company.

(See our article on how strategic planning in healthcare has change:  Realities in Healthcare.)

To make sure we are climbing the right mountain, it is helpful to use a business assessment tool to evaluate your direction, benchmark your current status and map out a plan for the current environment.  If you think a Value Creation Assessment is right for you, email info@wyattmatas.com for more information.