The Biggest Mistake in Operational Consulting Is Solving the Wrong Problem

The biggest mistake in operational consulting is arriving with a solution before truly understanding the problem. That’s why, at BAC & Associates, we developed a methodology that starts where every consulting engagement should: by looking at the entire business, without filters.

 

A Wall-to-Wall Assessment

Before recommending any changes, we conduct a comprehensive assessment that covers the entire organization—operations, finance, commercial processes, and working capital management. We don’t enter through one door and stay in a single department. We evaluate the business as a whole.

Imagine a distribution company that has struggled with stagnant margins for years. The owner believes the sales team is the problem. After completing our assessment, we discover that the real issue lies in inventory management—working capital tied up in slow-moving products is what is actually eroding profitability. Without that comprehensive diagnosis, we would have focused on the wrong solution.

 

Every Business Is Different—So Is the Solution

There is no universal formula. What worked for a food manufacturer in Costa Rica may not work for a service company in Peru or a family-owned business in the Dominican Republic. Every organization has its own history, operating culture, and unique bottlenecks.

That’s why we tailor every engagement to the company’s specific context, vision, and strategic objectives. And that customization begins on day one—not after implementation has already started.

 

Financial Evaluation Comes First

Every operational improvement has financial consequences. Before implementing any initiative, we model its impact on the income statement, balance sheet, and cash flow.

Our clients know from the outset what results they can expect, when they can expect them, and which key metrics must be monitored to ensure those results are being achieved. There are no surprises at the end of the project because the financial roadmap is established from the beginning.

 

Closing the Gap Between Perception and Reality

One thing that continues to surprise me after so many years is the gap between what leaders believe is happening in their operations and what is actually happening.

It’s not negligence. Day-to-day demands consume management’s attention, and over time, structural problems become almost invisible.

We use executive interviews, observational studies, and on-site field assessments to understand that gap—and then work systematically to close it.

I remember a project in El Salvador where the Operations Manager was convinced that the team followed the documented standard process exactly as designed. Once we conducted observational studies, we discovered that the actual process was completely different from the documented one. No one had noticed because no one had looked closely—and it had been happening far longer than anyone wanted to admit.

 

Improvement Without Additional Capital Investment

One of the questions I hear most often is, “How much do I need to invest to see results?”

The answer often surprises people: the most significant improvements frequently require no additional investment in assets. They require better work methodologies, stronger management systems, and more effective operational controls.

In most cases, the resources needed to improve performance already exist within the organization—they are simply trapped in inefficient processes, excess inventory, or decisions that no one is actively monitoring.

 

Results Guaranteed—By Contract

This is what truly differentiates our methodology: we contractually guarantee a minimum annualized 2:1 return on the investment in the consulting project.

This isn’t a marketing claim. It’s a commitment we make because our methodology allows us to measure results precisely—variable by variable, month by month.

In our recent engagement with Continental Insurance in Ecuador, the project delivered returns of 5.6:1 and 10.5:1 during the first year following implementation, as documented by the client.

An Operational Efficiency & Productivity consulting firm that cannot stand behind its results with measurable accountability is not delivering the value its clients deserve.

 

Is Your Operation Performing at Its Full Potential?

Humberto González
Managing Partner | Operational Efficiency & Productivity
BAC & Associates