How to carry out an Operational Review

A mobile workforce management software is key to managing an efficient field workforce.? Managing a staff of people can be tricky in any industry. Try keeping track of employees on shifting jobsites, many whom are paid hourly or temporary workers. The added pressure of ensuring the right workers get to the right sites at the right times, but they also need to track hours, parts used, vehicles and equipment assets.

In a previous post, we defined what is an operational review and why they play a key process in the continual evolution of successful businesses.?

Operational reviews allow the organization members to evaluate their performance, according to the procedures, resources properly, timescales and budgets.

Denizon – Operational Reviews Defined

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In this post, we’ll take a closer look at how to implement an operational review and the steps typically undertaken to help you and your organisation to implement an operational review.

What the steps in a Operational Review Process

There are typically six steps in an operational review that range from preparatory work conducting interviews and collecting documents to the presentation of the final written report.

An audit should be customized to meet a organisatons specific needs, so standard steps can and should only serve as a guideline.? Management and internal and external auditors should adjust the process to address the company’s particular goals and objectives.

Initial Management Meeting

Understanding the problem is the first crucial step of an operational review. This is one of major areas of discussions when the audit team meets with the management, and department heads will be asked to identify any specific areas of concern. Once the problem is identified, it would be easier to come up with workable solutions.

Conduct Interviews

The next step in the evaluation is carried out with experienced teams doing interviews and keeping close observation. Each team essentially watches how employees carry out their responsibilities. This is considered a key part of the process.

When doing the interview, it is also vital that the observing team gains the employees? trust and confidence. Likewise, the staff must be assured that whatever transpires between the team and the employee will be kept confidential. Management must therefore guarantee anonymity to anyone who offers critical information, lest employees withhold vital information and render the data gathered inaccurate.

Systems Review

Employees and management practices will be reviewed by the assessing team according to the standard policies and guidelines of the company. The effectiveness of the controls in place as well as their appropriateness to the current operating conditions will also be evaluated.

Reporting

A documentation of the data gathered and the assessment of the evaluating team, will be submitted to the management after the review process. Flow charts and written narratives of departmental activities are usually part of this report. This is also where observations and recommendations of the team will be presented to the department heads concerned.

Review Results

While the operational review is being conducted, it is important to take into account the vital factors that affect the company: the people, processes, procedures, and strategies. These four factors can determine the company?s progress in the future.

Key Areas of focus in operation reviews

At a minimum an operational review should include the following key ares of assessment

Management Control

Responsibilities, authority, and the scope in which an employee has the freedom to act must be clearly defined and documented. A complete and specific job description for instance, would give the employee a clear perspective on how he acts and functions within the company.

Boundaries should be set not only to benefit the employer but more so the employee as well.

Moral and Ethical Guidelines

Moral and ethical guidelines are just as important to ensure for a smoother employer?employee relationship. Otherwise, personal issues such as work ethics, work attitude and personal values may post problems in the long run if such guidelines are not drawn properly before relationships are established.

Processes and procedures

Evaluating processes is only beneficial if the company itself updates its processes and procedural manuals regularly, or at least when needed. Such protocols may need revision and some steps may be obsolete already. Improving a company?s processes and procedures doesn’t always entail cost. In fact, improvised procedures may even be cost-effective and could make the processes more manageable.

Communication and reporting standards

Gaps in communication could result in serious lapses in internal controls, putting the company and/or its assets at risk. This is where the importance of timely and clear communication comes in. Likewise, reports must be useful, and the flow of information and how it is processed must keep pace with the company?s growth.

Information technology (IT) and security controls can also be included under the communication clause. Proper IT security policies must be in place, state-of-the-art protection techniques employed, and everything be documented, periodically updated, and continually monitored.

Strategic planning and tactics

No company can ever be complete without its strategies. It would unwise for any organization to proceed without first knowing where it stands and what direction it wants to take. Strategic planning draws such a map. It must be aligned to the mission and vision of the company, and should also coincide with the organizational goals set. Strategic planning deals with these three key questions:

  • What do we do now
  • Whom do we do it for?
  • How can we overcome competition

Without clear strategic direction, expectations would likely differ between ownership and management.

Contingency planning, testing and recovery

Contingency plans must be up-to-date, and are essential to the organization. If one course of action fails, the company should have plan B, C and so on. In addition, an organization should be prepared to respond to interference’s.

This includes establishing a formal process to review transactions processing during both disruption and recovery.

Presentation of Report

Based on your objectives and our findings, we will develop detailed recommendations to improve your company?s performance and productivity. Our written report will include a list of both short-term and long-term projected improvements and courses of action, to be mutually agreed upon by both parties.

To ensure the achievement of the improvements we outlined, our team will also assist in the implementation of these modifications.

The plan has three levels of recommendations: one for executives, another for management, and a third one for staff.

The executive summary concentrates on your company?s strengths, weaknesses, opportunities and threats to its entirety. It includes recommendations for any needed changes in policy or governance.

The management plan is based on employee feedback and includes areas of immediate improvement as well as identification of potential problem areas. Concerns from the bottom level management can now be forwarded to the top level management in formal writing. Better working relationships may evolve from this, thereby setting the work environment for a higher productivity ratio.

Lastly, the staff report deals with topics like charting the hierarchy of the organization, and discussing in detail specific control objectives that are critical to the company?s mission. Part of our goal is to encourage personnel to pay close attentions to such changes, if any, as these efforts are essential if they want to bring about both organizational and personal success.

If you would like to further discuss how our operational review services can benefit your company, please feel free to contact us at your convenience to schedule an initial consultation. We?ll be more than happy to assist you.

More Operational Review Blogs


Carrying out an Operational Review


Operational Reviews


Operational Efficiency Initiatives


Operational Review Defined

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8 Best Practices To Reduce Technical Debt

When past actions in software development return to haunt you…

Is your business being bogged down by technical debt? Let’s look at measures that you can take to reduce it and scale your operations without the weight pulling you back. 

 

Work with a flexible architecture.

Right from the word go, you want to use architecture whose design is malleable, especially with the rapid rate of software evolution witnessed today. Going with an architecture that keeps calling for too much refactoring, or whose design won’t accommodate future changes will leave you with costly technical debt. Use scalable architecture that allows you to modify or add new features in future releases. While on this, complex features required in the final product should be discussed at the planning stage, that way simplified solutions that will be easier to implement can be identified, as this will lead to less technical debt in the long run. 

 

The Deal with Refactoring 

This is basically cleaning up the code structure without changing its behaviour. With the updates, patches, and new functionalities that are added to the systems and applications, each change comes with the threat of more technical debt. Additionally, organisations are increasingly moving their IT infrastructure from on-premises facilities to colocation data centres and deploying them on the cloud. In such scenarios, some workarounds are often needed to enable the systems to function in the new environments, which they hadn’t been initially developed to accommodate. Here, you will need to take some time to refactor the existing system regularly, streamlining the code and optimizing its performance – and this will be key to pay down the tech debt. When working with a flexible architecture from the start, the amount of work that goes into this will be reduced, meaning there’ll be less tech debt involved. 

 

Run discovery tests

Discovery testing essentially takes place even before a line of code is written for the system or application. This takes place at the product definition stage, where human insight software is used to understand the needs of the customer and is particularly helpful in setting priorities for the development work that will be carried out. It gives your business the opportunity to minimize the technical debt by allowing customers to give you a roadmap of the most pertinent features desired from the product. 

 

Routine code review

Getting a fresh look at the product or application from different sets of eyes in the development team will improve the quality of the code, thus reducing technical debt. There’s a catch though – this should be planned in a convenient way that doesn’t end up becoming a burden for the developers. Here are suggestions:

Break down pull requests

Instead of having complex pull requests where numerous changes in the code are introduced at a go, have this broken down into smaller manageable pull requests, each with a brief title and description about it. This will be easier for the code reviewer to analyse. 

● Define preferred coding practices

Documenting the preferred coding style will result in cleaner code, meaning the developers will focus their effort on reviewing the code itself, not losing time on code format debates.

 

Test automation

Relying only on scheduled manual testing opens you up to the risk of technical debt accruing rapidly, and not having sufficient resources to deal with the accumulated problems when they are identified. Automated testing on the other hand enables issues to be uncovered quicker, and with more precision. For instance, you can have automated unit tests that look at the functioning of the individual components of a system, or regression testing where the focus is on whether the code changes that have been implemented have affected related components of the system. However, establishing and maintaining automated testing will require quite some effort – making it more feasible for the long-term projects.

 

Keep a repository that tracks changes made

Do you have a record of changes made in the software? Keeping one in a repository that is accessible by the development team will make it easy to pin-point problems at their source. For instance, when software is being migrated to a new environment, or legacy software is in the process of being modernised, you will want to have an accurate record of changes that are being introduced, that way if there is an undesired impact on the system this it will be easier to zero-down on the cause.

 

Bring non-technical stakeholders on board

Does this conversation sound familiar?

Development Team: “We need to refactor the messy code quickly”

Product Team: “We have no idea what you are saying”

On one hand, you have the management or product team defining the product requirements, creating a project roadmap, and setting its milestones. On the other hand, there’s the software development/engineering that’s primarily focused on the product functionality, technical operations and clearing the backlog in code fixes. Poor communication between the two teams is actually a leading cause of technical debt.

For you to take concrete steps in managing your technical debt, the decision-makers in the organisation should understand its significance, and the necessity of reducing it. Explain to them how the debt occurred and why steps need to be taken to pay it down – but you can’t just bombard them with tech phrases and expect them to follow your thought process. 

So how do you go about it? Reframe the issues involved with the technical debt and explain the business value or impact of the code changes. Basically, the development team should approach it from a business point of view, and educate the management or production team about the cost of the technical debt. This can include aspects such as expenses in changing the code, salaries for the software engineers especially when the development team will need to be increased due to the workload piling up, as well as the revenue that is lost when the technical debt is allowed to spiral. 

The goal here is to show the management or production team how issues like failing to properly define the product requirements will slow down future software development, or how rushing the code will affect the next releases. That way, there will be better collaboration between the teams involved in the project. 

 

Allocate time and resources specifically for reducing technical debt

With management understanding that working with low-quality code is just like incurring financial debt and it will slow down product development, insist on setting time to deal with the debt. 

For instance, when it comes to the timing of application releases, meetings can be conducted to review short- and longer-term priorities. These meetings – where the development team and product team or management are brought together, the developers point out the software issues that should be resolved as a priority as they may create more technical debt. Management then ensures that budgets and plans are put in place to explicitly deal with those ongoing maintenance costs.

 

Retire old platforms

While most of the resources are going into developing new applications and improving the systems being used, the organisation should also focus on retiring the old applications, libraries, platforms, and the code modules. It’s recommended that you factor this into the application release plans, complete with the dates, processes and costs for the systems involved. 

 

Total overhaul

When the cost and effort of dealing with the technical debt far outweighs the benefits, then you may have to replace the entire system. At this tipping point, you’re not getting value from the technical debt, and it has become a painful issue that’s causing your organisation lots of difficulties. For instance, you may be dealing with legacy software where fixing it to support future developments has simply become too complicated. The patches available may only resolve specific issues with the system, and still leave you with lots of technical debt. Here, the best way out is to replace the system in its entirety. 

 

Final thoughts

Every software company has some level of tech debt. Just like financial debt, it is useful when properly managed, and a problem when ignored or allowed to spiral out of control. It’s a tradeoff between design/development actions and business goals. By taking measures to pay down your organization’s debt and address its interest as it accrues, you will avoid situations where short term solutions undermine your long-term goals. This is also key to enable your business to transition to using complex IT solutions easier, and even make the migration between data centres much smoother. These 8 measures will enable you to manage your technical debt better to prevent it from being the bottleneck that stifles your growth.

Competencies, Roles and Responsibilities of Lead Assessors

Any organisation that opts for energy audits, Display of Energy Certificates and Green Deal Assessments needs a lead assessor to review the chosen ESOS compliance routes. The Derivative provides that energy audits should be carried out independently by qualified and accredited experts. Additionally, these audits should be implemented as well as supervised by independent authorities under the national legislation.

Lead assessors undertake several roles in ESOS assessments. He or she is the one responsible to take the lead of the entire assessment team, prepare the plan, conduct the meetings and submit the formal report to governing authorities. Nevertheless, selecting an appropriate lead assessor is an important element that every organisation should carefully consider.

Competencies Requirements of Lead Assessors

Lead assessors should be knowledgeable enough with in-depth expertise in carrying out energy efficiency assessment. They should also possess foundational, functional and technical competencies to deliver the task effectively. Likewise, consider the assessors? sector experiences, familiarity with your business? technologies and properties, and accreditation with prescribed standards.

As you choose your lead assessor, contemplate on the skills and qualifications that would give your organisation benefits.

Roles and Responsibilities of Lead Assessors

The business organisation is responsible for the overall legal ESOS compliance. Moreover, here are some of the roles and responsibilities that lead assessors should assume in ESOS assessments.

The lead assessor agrees on the audit methodologies that the organisation would undergo in new audits. He or she agrees with the ESOS participant regarding the audit timetable, sampling approach and visits required. It is also the lead assessor?s role to identify the opportunities on energy saving and assist in calculating the cost savings from the measures taken. During the ESOS audits, the lead assessor determines the energy use profiles, presents the recommendations and reviews the entire assessment as a whole. Furthermore, he or she should maintain the evidence pack of the ESOS to uphold the audit’s credibility, its findings and recommendations.

Finding Lead Assessors

Energy and environment professionals would only be able to demonstrate their expertise as lead assessors upon registering in a professional body accredited by the Environment Agency. Any business that needs a lead assessor is advised to check on the EA?s website to see the details of approved registers.

Lead assessors can either be in-house experts or external professionals. However, they should be able to provide proof of membership as an approved register to take the role of a lead assessor. If the organisation has an internal lead assessor, the company should then take the final ESOS assessment to two board-level directors that would sign the formal report.

Indeed, the lead assessor is an organisation’s partner when it comes to delivering great results. With good professional conduct and excellent management of an assessment team, the lead assessor can help achieve breakthrough energy efficiency strategies. More than anything else, the organisation will benefit from maximum energy savings opportunities ahead. Thus, every qualified business enterprise should invest in finding the best lead assessor to guide them towards success.

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How an EMS Can Cut Your Carbon Emissions

Your business carbon footprint is directly tied to the efficiency of its energy consumption. From the equipment used in industries, lighting and air conditioning in offices, shopping malls and other commercial buildings, the load used by everyday machines like the coffee makers in the employee breakroom, to hot water boilers in apartment complexes, how much do your processes affect the environment? Standards like the ISO 14001:2015 are being implemented to enable businesses to reduce their impact on the environment, from optimising their energy usage, minimising waste, turning to renewable power sources, all through to preventing pollution and complying with their specific regulatory requirements. How do you handle the volume of data that needs to be obtained and assessed?

Energy management systems come in to enable you to analyse your consumption, identify factors affecting your total energy use – from temperature and humidity conditions, to equipment that is causing spikes, and observe your usage patterns. That way, you can put in measures to minimise wastage while increasing your operational efficiency, reduce your carbon emissions and track your progress all the way. Here, we’ll break down how this is achieved. 

Going Green With An Energy Management System

This is a holistic approach aimed at minimising wastage and optimising energy usage. It includes:

Auditing your energy consumption

The first step is really quantifying how much energy you use, which systems are causing unnecessary load, all through to where there are inefficiencies in the facility. Which equipment has the largest impact on your bill? An energy management system allows you to view it all from one dashboard, such as with the ecoVaro EMS that takes you down to the sub-meter level.

Here, you get real-time data that is collected by the ecoVaro loggers – from electricity use, gas, water, temperature, solar power, humidity, air pressure – the readings can all be monitored. This is done 24/7, and the consumption feeds are recorded. Moreover, ecoVaro pulse data is collected every 15 minutes – which is particularly important when it comes to analysing trends over a time period, be it daily, weekly or monthly. 

Data is only useful if it can be properly analysed, right? So instead of just bombarding you with spreadsheets of numbers, the EMS displays the records into graphs and charts that are easy to comprehend – all from the same interactive interface. So, whether you’re the energy manager in the facility, or you want reports that can be shared with the CFO, owners of the business, or even staff themselves to enable them to understand the energy saving policies that you will put in place – you will be able to carry this out. 

ecoVaro gives you different ways to analyse the data from the readings that have been recommended. For instance, the heat mapping from the interface allows you to see the building’s energy use during different periods at a glance. The site-by-site analysis in particular enables the building or energy manager to assess each individual premises, from checking which block in the school is causing the energy bills to surge, the facility whose performance is falling behind, all through to the office building with the highest carbon footprint. In fact, the carbon and sustainability reports from ecoVaro EMS enables you to see the impact that your operations have. You even get to compare tariffs from the different energy suppliers, that way you can go with the option that is most suited to your situation.

Setting a baseline for your operations

This is essentially a “before/after checkpoint” that you will use to compare the effectiveness of subsequent measures that you will undertake. After making modifications to the systems in your business, you will want a clear picture of whether the new measures are actually benefiting your operations and optimising your energy efficiency, or whether they are deteriorating the performance further. The energy baseline will be critical in analysing your progress. 

Reports like the CUSUM (cumulative sum) charts on ecoVaro show you the energy performance, be it of a boiler in a factory, office building, or chain of hotels – over a set period of time. You can then compare this to the baseline, which will show you if the changes you will implement will make you savings. The heatmaps also come in handy here, showing you the energy consumption at each meter, whether it is low, medium or high compared to the baseline that has been set. The heatmaps give a quick visual to analyse resource usage.  

Creating energy targets

After understanding your energy consumption and seeing how it impacts your business, next is mapping out short- and long-term goals that you want to attain to optimise your usage and reduce your carbon footprint. 

For instance, short-term targets can include the likes of decreasing the night-time lighting load, and adjusting HVAC uptime depending on the level of activity in your business premises for the different hours of the day. 

For the long-term targets, these include setting a specific percentage average kWh reduction for the different industrial sites or buildings under your management; lowering the demand kW throughout the building by a specific range year-on-year; as well as the percentage with which you want the carbon emissions decreased annually. 

Cost efficiency also factors in. For instance, entering your current tariffs into the conversion factoring dashboard on ecoVaro will show you how your consumption translates to the bills that you receive – and even shows you what you stand to save by negotiating for new energy contracts with your utility firm.

Identifying initiatives and implementing energy saving programs

These are geared towards improving your energy efficiency and reducing your carbon footprint. They vary from one industry to the next. For instance, these can include:

Getting motion/occupancy detectors and automatic dimmers installed in the facility

These are lighting controls that enable you to save money and energy by automatically turning the lights off when they are not required (people have left the room), and reducing the light levels for those cases where full-on brightness is not needed. For instance, the dimmer controls enable variable indoor lighting, reducing the wattage and output when dimming the lightbulbs, saving energy in the process. These can be manual, or operated with sensors or timers. 

Motion sensors on the other hand will automatically turn on the lights after they detect motion, then after a short while turn them off – they are typically used for utility and outdoor security lighting. There are also occupancy sensors used in rooms, which turn on the lights when they detect indoor activity, then turn them off or reduce the light output when the particular space is unoccupied. 

Switching to energy-efficient light fixtures such as CFL or LED bulbs

Lighting costs are a major contributor to the energy bills being footed by the business. What kind of systems do you have set up?

Incandescent bulbs are rapidly being phased out due to their inefficiencies. They work by a wire tungsten filament getting heated until it glows – a process that sees almost 90% of its energy being released as heat, instead of light. In addition, with an average lifespan of just 1,500 hours, there is the need for better alternatives – and they have already been around for over a decade: CFL and LED bulbs, which save on energy and have far less carbon emissions. 

Compact fluorescent light bulbs (CFLs) light up when an electric current going through a tube with argon and trace mercury gases generates ultraviolet light, stimulating the fluorescent coating that’s on the inside of the tube, which in turn produces light. As such, a 15-watt CFL will have about the same light output as a 60-watt incandescent bulb. This makes them approximately 4 times more efficient compared to the incandescent bulbs, with a lifespan of 10,000-15,000 hours. This translates into fewer replacements and greater energy savings. However, there are still concerns about the mercury that is in the CFLs, though it is still in small quantities – basically smaller than the tip of your pencil. In addition, the CFLS aren’t; dimmable. They are usually used as a replacement for incandescent bulbs before completely switching to the more efficient LEDs.

Light-emitting diode bulbs (LEDs) Take things a notch higher. Here, electrons moving through a semiconductor emit the light, and you can get the LEDs for visible light, ultra-violet, and infrared spectrums. Here, the lifespan is 25,000–35,000 hours, which is more than double that of CFLs, and leagues beyond the standard incandescent bulb. Moreover, with a 16.5W LED bulb you’ll be getting the same lighting as a 20W CFL, or a 75W incandescent bulb. 

You will notice that when you touch LEDs, they feel cool, and this is because less energy is getting converted into heat. With the energy efficient bulbs, you won’t have to run your AC harder during those hot months, further adding to your cost savings. You can be able to see such consumption trends over the months through the energy management system, getting to the root cause of the problem. For instance, seeing the changing trends in the AC energy consumption over different weeks will enable you to assess what is causing it to be pushed harder, and address the root cause of the problem. 

Acquiring energy-efficient office equipment

This is broad, with the changes being made here depending on your particular niche. Take printers for instance. Simply going for printers with sleep and automatic shut-off modes will ensure that the units are not consuming energy when they are not in use. The same case applies to copier machines. Energy saving surge protectors on the other hand are beneficial for allowing you to “unplug” multiple devices that use standby power even when switched off – what’s usually called “vampire power” or “phantom energy“. 

The need for energy savings cuts across the board, from the computers and monitors used, to the coffee makers and kettles. For instance, working with an electric kettle to heat water for tea beats using a microwave or stove. Go further by opting for a kettle that allows you to set the particular temperature you want for the water – since you don’t really need the water for tea to be boiling hot for the tea to properly steep. Taking such steps further contributes to your business’ efforts to go green and reduce your carbon footprint. 

Turning to renewable energy sources

Switching to renewable sources to power your operations will simultaneously reduce your energy bills and cut your carbon emissions. From solar panels to wind turbines and the like, they are cleaner sources of energy, and the installations that you go with will depend on your kind of business. Moreover, this will protect you from the fluctuations in energy prices, since the bills are affected by the availability of fuel, electricity demand, costs that go into generating and distributing it – all of which end up hitting your business in the long run. On the other hand, going off the grid with your own supply of power protects you from this. In fact, if you end up producing surplus energy, you can sell it back to the grid, earning your business extra revenue. 

Sure, the upfront costs of setting up the systems will take a sizable chunk out of your budget, but the savings allow you to recoup the costs over time. In addition, there will be savings from the incentives being provided by the government, such as tax rebates and grants. These are the likes of the Solar PV Grant from SEAI (Sustainable Energy Authority of Ireland) which is at €900 per kWp, capped at €2400 for each business. Funding is available for homes, community programs and commercial buildings such as  Collinstown Park School that was able to slash their lighting costs by a whopping 90% after securing 50% of the funding for their energy upgrade project from SEAI. The ecoVaro EMS comes with support for solar power installations in its firmware, that way you can continue assessing the changes that your solar power system will bring to your overall energy usage.

Spread awareness

You should also carry out energy conservation training for your staff. The reports generated by the EMS will make it easy for them to get a picture of their energy consumption trends, and the effects that it has on both the performance of the company, and the carbon footprint as a whole. It also gives them more awareness of the impact that they each have at an individual level. 

Assessing Key Performance Indicators

The energy analytics tools from the EMS will show you whether you are actually meeting your goals. Since it works with the different metered connections, from getting electricity and temperature readings, checking radiation levels, humidity data all through to gas meters, you will be able to assess the progress that your business is making across the board. 

For ecoVaro in particular, the performance of your systems can be seen through reports like Consumption Charts – from the different offices, tenants and equipment energy usage, peak -and off-peak data, as well as Regression Charts that allow you to compare building’s actual energy consumption to its expected performance, and how they are affected by variables such as temperature. 

With the site-by-site data and the monitoring being down to the sub-meter level, you will be able to identify an issue when it crops up and narrow it down to the specific instant and location where it occurred. This enables you to address the problem quicker.   

Conducting a compliance audit

A comprehensive audit can then be undertaken to ensure that your company meets internationally-recognized standards that have been stipulated regarding implementing energy management systems and enhancing the energy efficiency of your operations. The compliance audits are carried out by certified auditors.

Through the EMS, you are able to position your business appropriately to meet the standards for your particular niche, measuring and observing the performance of energy-saving projects that have been implemented. This extends to acquiring and presenting data that will be used to show the business’s compliance to industry regulations and obtain the relevant certification. You are able to report on your carbon footprint, and verify it. This information can also be disseminated amongst your employees and customers, raising awareness about your business green initiatives, boosting your brand in the process.

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