Case Study 2. Direct-Effect

Case Study 2

The company provided consultancy in the field of TPM. Before Diana’s appointment, the company had been going through a decline. After a period of rapid growth and high profits, complacency had set in with regard to record keeping, with the result that when things started to take a turn for the worse, nobody really noticed the effect on the accounts. Another company was interested in acquiring the business, however the due diligence put them off, as they could not be sure of the true state of affairs thanks to the poor record keeping.

When Diana was appointed, there was already a rudimentary computerised accounting system in place, however records were very incomplete, with errors of £500k in the bank control account and no true debtors ledger. Within two months, all accounts were up to date on Quickbooks and systems in place to ensure that all financial transactions were recorded properly. It soon became apparent what the true financial situation was, and the directors could take appropriate action. The accountants were also pleased with the improvements to the accounts and the year end preparation, which made their job much easier.

Diana also maintained and monitored utilisation statistics for the consultants. She developed a system for prioritising staff training, based on a gap analysis built up from an assessment of staff skills and the needs of the organisation.