1. AUDIO LECTURE 4. Assessments3. Data Sheets1A Assess 3 Data Sheets.WMA
Cathedral Career Training
Associate Track 1
Assessment 3
Data Sheets
Topics
1.
2.
3.
4.
5.
Where do the Data Sheets fit in Consulting?
How are the Data Sheets done?
What are the components of the Data Sheets?
What are the differences between the BR and OA Data Sheets?
What is the financial analysis for BR and OA?
Reading (May need to be ‘copied’ to open. Some files show that they
are not available, but when copied to a local folder, they open
easily.):
1. OA Data Sheets Non-Profit (by cglynn@cathedralconsulting.com
- 2), this folder.
2. OA Data Sheets THE UNION 120918, this folder.
3. TEMPLATE Data sheets Professional Service Firm 091107, this
folder.
4. TEMPLATE Data sheets Standard 110609, this folder.
5. Financial Analysis for BR.xls, this folder.
6. FinAnalysisFamUni111201(1), this folder.
7. BR Report E Step Consulting 2010, this folder.
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2. 8. OA Data Sheets THE UNION 120918, this folder.
9. OADataSheetsFamUni121204, this folder.
Lecture
1. Where do the Data Sheets fit in Consulting?
a. Data Sheets are the analysis tool to be used in the Work
Phase of a consulting project.
i. The engagement letter identified and shaped the issues.
ii. The Work Phase started with the planning of the
questionnaire, the interview and the gathering of other
data.
iii. Now the data should be gathered and the analysis part
of the Work Phase begins.
2. What are the components of the Data Sheets?
a. The Data Sheets have the following components:
i. Topic.
1. The flow of the Data sheets should following the
Questionnaire which in turn should allow for a
reasonable flow to evaluate the enterprise.
2. The topic should match the question on the
Questionnaire.
ii. Data
1. The Data is the answers given to the question, plus
all other information gathered.
2. It is important to put all of the answer/information
in this box.
3. While the Data Sheet follows the Questionnaire, it
is to be the gathering place for analysis of all
information on the enterprise.
iii. Best Practices.
1. Best practices are an abbreviated look at the
alternatives for the topic.
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3. 2. When a Questionnaire is prepared, these best
practices should also be prepared.
3. In effect this component is the “Research” in the
Assessment.
4. Therefore, doing adequate preparation of the Data
Sheet in creating the Questionnaire is how
Cathedral efficiently prepares the alternatives for
issues identified.
5. The Best practices will also be the trigger for
identifying issues, weakness or opportunities or
threats that need to be addressed.
iv. Findings and Implications:
1. Findings and implications are developed from the
comparison of the data received to the best
practices.
3. How are the Data Sheets done?
a. Data Sheets should be completed by the Associate who has
answered the questions and done the research.
b. While there is a temptation to put the question answers
directly on the data sheets, this has proven to be a bit risky,
since the data sheets do not have the full information that the
Questionnaire will have.
c. The process is as follows:
i. Taking the answers to the Questionnaire and research
and other information, the Data component is
completed.
ii. After the Data component is completed, the best
practices are compared to the data received.
iii. The comparison should highlight differences. These
differences need to be noted.
iv. The material differences should be highlighted for MD
review.
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4. v. The completed Data sheets are reviewed with the MD to
identify the SWOT components of the Assessment.
d. Let’s consider the Data Sheets for E.Step Consulting.
i. The Data sheets have been completed and included as
an addendum.
1. Many clients find this a useful read.
2. Clients also find that it validates the work done in
the Work phase.
ii. On page 13 of the report, the Data Sheet topic is Market
Positioning:
1. There are several answers given in the Data
component:
According to its website, E-Step Consulting has
been assisting higher educational institutions to
implement various applications within the Oracle
PeopleSoft® line of products since 2000.
New service innovations include strategic
partnerships.
2. The Best practices highlight some principles:
Management should know the market and then position
the company accordingly. Some market segments can be
generally defined as:
a) Pricing
be) Quality
c) Speed of service
d) Strategic relationships form effective market
penetration strategies. These relationships can range
from referrals to full joint ventures.
3. The Findings and implications have some
recommendations:
Knowledge of competition and what is occurring in the
market place is important for success to continue. A
competitor analysis would be helpful to see who else
is competing for this market segment in the area, and
how much room remains for growth of the E-Step
Consulting, Inc. model.
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5. With that being said, the company has done well in
understanding the market and providing services to
meet a need in the market without this official analysis.
The desired strategic partnerships could add a unique
advantage in a competitive market.
4. Some observations on this exercise:
a. The data and findings were completed.
b. But the findings do not connect well with the
data or the best practices. It suggests that
there was other information that was not
entered in the Data section.
c. The engagement was focused on the need for
revenue growth, so more attention here
would have been useful.
d. In a MD review, this should be highlighted
and more development done.
e. Let’s look at Union Data Sheets:
i. Under the first Topic, Mission.
ii. Data contains the following answer:
The mission of the International Union Against Tuberculosis and Lung Disease is to
"bring innovation, expertise, solutions, and support to address health challenges in lwo
and middle income populations around the world."
iii. Best Practices has the following:
A mission statement states your beliefs which lead to a statement of purpose and
function. This statement provides future-oriented thinking and a laser-like focus.
iv. The findings and implications has the following:
[no posting]
v. What do we see?
1. This is a case where the data is entered well.
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6. 2. But the findings do not follow the application of
the best practices.
f. The Family Unity Data sheets are an excellent example of fully
completed Data Sheets.
i. Topic: Mission
ii. Data:
“To contribute to the prosperity of the working boys and their families is to contribute to the present and
future welfare of the community.” Members in the meeting were not able to clearly recite the mission
statement.
iii. Best Practices:
A mission statement states your beliefs which lead to a statement of purpose and function. This
statement provides future-oriented thinking and a laser-like focus.
iv. Findings:
It is recommended that board members and staff are able to recite the mission statement.
g. One of the real issues is that Data Sheets take time.
i. The time for entry and review is often pressured to a
minimum.
ii. But the Data sheet is the analysis form that assures a
measure of consistency in quality of thinking.
iii. The Data sheet gives the Associate the ability to see
things they are not as familiar with.
iv. The Data Sheet gives the MD a way to look at the data
gathered to identify concerns and opportunities for the
client.
v. Therefore, it needs to be the engagement team’s
collective responsibility to focus on good completions of
the Data Sheets.
h. Data Sheets need to be saved as part of the work product for
an engagement, even if not included in the report.
4. What are the differences between the BR and OA Data Sheets?
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7. a. The formats are identical.
b. The flow is consistent with the Cathedral Way for Assessment
Tools.
c. However, it is important to be sure that each question or
topic is fully “best practiced.”
d. It is the discipline of doing the Questionnaire with the Best
practice research that gives the depth of analysis that good
consulting looks to generate.
e. Alternatives should be part of the Best practices. This then
allows the Associate and MD to evaluate alternatives to
issues that may be identified.
5. What is the financial analysis for BR and OA?
a. The financial analysis is designed to use the prior years’
information to give normal trend and other information.
i. The financial analysis should be presented in the
Background Section of the Report, since it is based on
historic data.
ii. Good financial analysis will add to the SWOT findings.
b. The template in this folder is a good example of the type of
financial analysis warranted. The components are:
i. Sales trends.
ii. Revenue/customer grouping and trends.
iii. Cost of Sales trends, including components.
iv. Income statement trends, using an abbreviated income
statement.
v. Balance sheet trends.
vi. Basic balance sheet rations, such as working capital and
liquidity.
vii. Equity trends, including amount and returns.
c. The purpose of financial analysis is to highlight the
information that the financials reveal.
i. Simple examples are
1. Profitability –
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8. a. Is it going up or down
i. As a % of sales
ii. In whole dollars.
2. Liquidity –
a. How much working capital is needed?
b. What is the trend of working capital?
c. How much liquidity is available?
d. Is there a seasonality to working capital?
ii. The key is to look at the financials fully as given.
iii. Then to evaluate them according to any issues or
worries that the client may have.
1. For example, if the client has expressed concerns
about cash flow, the working capital analysis is
critical.
2. If the client expressed concerns about profits, the
expense analysis is critical. Product profitability
may be another critical analysis.
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9. 3. If the client has expressed concerns about revenue,
the customer and revenue components is critical.
Fee Income by
Customer for 2007
Caraway
Osprey
Maple
Ivory
Giraffe
Sapphire
Ginger
Other
Egret
Jasmine
Sunflower
Cardinal
Nightingale
Tanager
Total*
Sales
$
92,097
$
42,086
$
36,818
$
26,696
$
25,828
$
17,875
$
15,406
$
7,715
$
5,200
$
4,368
$
2,450
$
2,000
$
1,863
$
1,191
$281,592
% of Total
Sales
33%
15%
13%
9%
9%
6%
5%
3%
2%
2%
1%
1%
1%
0%
100%
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10. d. In this folder is a good financial analysis for Family Unity.
i. Endowments for nonprofits can be a key issue, so here
the analysis shows what is happening.
Endowment by Year
$1,400,000.00
$1,200,000.00
Amount
$1,000,000.00
$800,000.00
$600,000.00
Endowment
$400,000.00
$200,000.00
$0.00
2009
2010
2011
Year
ii. P&L or Activity is always relevant, so the trends of
expenses to revenue is shown:
Income & Expense Comparison by Year
$2,500,000.00
Amount
$2,000,000.00
$1,500,000.00
Income
$1,000,000.00
Expenses
$500,000.00
$0.00
2009
2010
2011
Year
1. Clearly this chart shows the weakening operating
position.
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11. iii. The assets strength can be relevant as shown in this
chart.
Growth of Assets
$4,000,000
$3,624,049
$3,483,438
$3,500,000
$3,611,003
$3,388,368
$3,555,621
$3,258,539
Amount
$3,000,000
$2,500,000
$2,000,000
Total Assets
$1,500,000
Total Liabilities
$1,000,000
Net Assets
$500,000
2008
$297,082
$222,635
$140,611
$-
2009
2010
Year
1. That liabilities are growing and the assets declining
is a problem
2. But liability growth is consistent with the lack of
cash flow from current activities as shown by P&L.
e. Many times the ability to do analysis is limited due to
available financial information.
i. The key is to do the best with what has been given.
ii. The lack of financial information will need to be both a
Weakness and a Threat.
iii. This kind of analysis with what is given can highlight the
importance of financial information.
f. Industry information should be added to the financial
analysis.
i. There are several sources of financial information for
the industry.
ii. Using industry benchmarks is the equivalent to having
best practices in the financial analysis section.
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12. g. Financial analysis can be presented in the form of charts.
i. Under the Modeling course, lecture 5 is on presenting
financial analysis. Only a brief summary is used here.
ii. Charts help get the picture of trends.
Income Trend
$2,500,000
$2,000,000
Dollar Amount
$1,500,000
Revenues
$1,000,000
Cost of Sales
$500,000
Gross Profits
Net Income
$2005
2006
2007
$(500,000)
Year
iii. Charts can help see the rations.
Income Trend Analysis
151%
150%
Percentage
125%
100%
102%
100%
Revenues
75%
65%
50%
50%
27%
25%
27%
Cost of
Sales
Gross
Profits
0%
2005
2006
2007
Year
Review and take the Quiz
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