Businesses, whether public or private, use Performance Measurement and Control Systems to gain insight into, and make judgments about the effectiveness and efficiency of their programs. These “Best-in-Class” businesses decide on what indicators they will use to measure their progress in meeting organizational goals and objectives, gather and analyze performance data, and then use this data to drive improvements in their organizations and successfully translate those goals and objectives into action.

The TEAMS Group audits the existing operations, taking into consideration span-of-control, the size, number of staff, number of Clients, demographics, ratios, support staff ratios, supervisor to employee ratios, type, age, condition, density and location of all facilities and equipment to determine key operating ratios and develop an operational baseline model. The Baseline Model of the Client’s business allows them to:

• Develop a detailed knowledge of its fiscal components and their behavior over time;
• Identify the economic and activity forces that affect those fiscal components;
• Identify whether changes in those fiscal components are structural or behavioral;
• Determine whether corrective action is necessary; and,
• Determine whether changes are necessary in the Performance Measurement and Control System, in the measures themselves, or to the business’ goals and objectives.

The steps required to complete the Activity Based Baseline Model include:

• Review the financial reporting and chart-of-account structure for the client.
• Compile and analyze the model’s base year results.
• With the client, identify activity and economic drivers for the model.
• Build, at the detailed account code level, the financial model.
• Test and validate the model utilizing data from years subsequent to the base year.
• Reconcile significant model variances and make any necessary changes to the model.
• Present the model to the client with our findings and recommendations.