Capabilities

Operational Diagnostic

Root cause analysis of why each KPI is off.

Designed for

Operating partners, portfolio company COOs and CFOs, and performance improvement consultants.

What it is

A rapid diagnostic of how the company actually runs

When a KPI is off and the reports do not say why, Cerenovus reads the company's email, documents, and system data, traces each problem to its root cause, and recommends the fix. Every fix is ranked by what it is worth, so your team knows what to do first. The diagnostic can cover the whole company or a single process, and it starts from the KPIs your team already reports. Every finding links to the records behind it, so the cause can be checked before anyone acts on it.

How it works

From records to recommended fixes

Each recommendation follows from the records. Cerenovus traces the cause, sizes the ways to fix it, and recommends the one that returns the most for the effort. Every recommendation states its evidence and assumptions, and where the records cannot support a number, the estimate stays a range.

  1. 01

    Read

    Read-only access to email, documents, and ERP and CRM data. No one cleans up the files first.

  2. 02

    Trace

    Each process is rebuilt as it actually runs, and each problem is followed upstream to its root cause.

  3. 03

    Size

    Each problem is sized in hours and cost, and in EBITDA or cash where the records support it.

  4. 04

    Recommend

    Cerenovus names the fix, the owner role, and the order of work, and ranks every fix by value.

What the diagnostic covers

Where the diagnostic looks for value

Diagnosis

KPI root causes

Why a margin, delivery date, or cost line is off, traced through the processes behind it to the cause.

SG&A

Labor productivity

Manual work, re-keying, extra approvals, and duplicated work, sized in hours and cost.

COGS

Procurement savings

Payments above contract rates, off-contract spend, and rework.

Revenue

Margin leakage

Discounts outside policy, prices not checked against contracts, and contract terms that are not enforced.

Working capital

Cash conversion

Invoices held up by disputes or missed steps, measured in DSO. This is cash, so it sits outside EBITDA.

Throughput

Bottlenecks

Work that waits on approvals, handoffs, or batch runs, such as orders that wait overnight for a batch run.

Operational risks

Operational risks Cerenovus flags

Each one goes into the operational risk register with an owner role and a recommended mitigation.

  • Manual stepsSteps typed, checked, or chased by hand, with the hours each one takes.
  • Duplicated work and systemsReports, trackers, and systems kept twice for one purpose.
  • Conflicting incentivesTargets that reward one team for work another team has to undo.
  • Key-person riskProcesses, customers, or systems that only one person knows how to run.
  • Single points of failureA step, system, or supplier with no backup, where one failure stops the work.
  • Decisions with no ownerRecurring calls, such as pricing exceptions, that wait until someone senior steps in.
Deliverables

What your team receives

Every engagement delivers the same core documents, led by a value creation plan that sets out the ways to improve EBITDA. The documents below them are specific to this review. Each links to its sources.

Core documents

01

Value creation plan

The ways to improve EBITDA, set out as operational levers. Each lever states the problem, its root cause, the recommended action, the estimated EBITDA or cash impact, an owner role, and the records behind it.

02

Findings report

Every finding with its root cause, the teams involved, and links to the emails, records, and files behind it.

03

Operational risk register

Key-person risk, single points of failure, weak controls, and other operational risks, each with what it puts at risk, an owner role, and the recommended mitigation.

Specific to this review

04

KPI root-cause analysis

Each off-track KPI traced through the processes that drive it to its cause, with the evidence for each link.

05

Workflow maps

Each process drawn as it runs today beside the recommended version, with manual steps and waiting time marked.

06

Organization map

Who the work actually routes through, beside the official chart, with the roles that carry the most handoffs.

Client decisions

Cerenovus recommends a fix for every finding and ranks them by value. Management decides which to fund and leads the change.

Operating analysis on demand

Map the work between your teams

Cerenovus reads approved company data through read-only access and ranks what it finds by value.