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© Celerant Consulting
Page 1
© Celerant Consulting
The content of this presentation and/or documentation contains the prop...
© Celerant Consulting
Page 2
Business improvement purchasing – changing the way
services are purchased and performed
Consu...
© Celerant Consulting
Page 3
Challenges of pitching Business Improvement into
Procurement
Risk/Reward, commitment to resul...
© Celerant Consulting
Page 4
The emotional journey of change
Where advice
activity stops
Where Business
Improvement activi...
© Celerant Consulting
Page 5
Business Improvement projects are not always well
defined at the outset
1. Optimism - the
sta...
© Celerant Consulting
Page 6
Where Business Improvement purchasing often focuses
MANAGEMENT
SYSTEMS
PROCESSES
PEOPLE &
ORG...
© Celerant Consulting
Page 7
The critical success criteria for successful Business
improvement engagements lie in...
MANAG...
© Celerant Consulting
Page 8
Discovery Baseline Analysis Design & Deploy Implement
To 1 week 4-6 weeks 8-16 weeks 20-30+ w...
© Celerant Consulting
Page 9
Sustainability – leaving behind an organisation capable of
continuous performance improvement...
© Celerant Consulting
Page 10
Defining and tracking the results to ensure the return on
investment
Area / Process Issue / ...
© Celerant Consulting
Page 11
The underlying journey means measuring progress along
the way is critical to ensuring the re...
© Celerant Consulting
Page 12
So a knowledgeable buyer will need to shift the criteria
and goal posts for comparison and s...
© Celerant Consulting
Page 13
Contact
Cathy Johnson
Vice President
+44 783 627 3799
cathy.johnson@celerantconsulting.com
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Cathy Johnson - CPG Event - 10th November 2010 - The Knowledgeable Buyer

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Transcript of "Cathy Johnson - CPG Event - 10th November 2010 - The Knowledgeable Buyer "

  1. 1. © Celerant Consulting Page 1 © Celerant Consulting The content of this presentation and/or documentation contains the proprietary and confidential information of Celerant Consulting Holdings Limited and/or of its relevant parent(s), subsidiary and/or subsidiaries (as applicable 'Celerant') and, as applicable, the proprietary and confidential information of third parties used by Celerant under an appropriate license therefrom. In consideration of Celerant making this information available to you, you agree to protect the confidentiality of the same as might reasonably be expected by Celerant. Without limitation, the information contained herein is the copyright of Celerant and may not be re-produced in whole or in part without the express prior permission of Celerant. The knowledgeable buyer and the impact on quality of Business Improvement Programmes Cathy Johnson, Celerant Consulting
  2. 2. © Celerant Consulting Page 2 Business improvement purchasing – changing the way services are purchased and performed Consulting Advice “Defining what and how” Business Improvement “Making the change happen”
  3. 3. © Celerant Consulting Page 3 Challenges of pitching Business Improvement into Procurement Risk/Reward, commitment to results, return on investment Daily rates/rate cardsSpend criteria Sustainable Behavioural change Results need measurement & monitoring to ensure they hit the bottom line Advice, expertise Results are the advice and conclusions Benefits/ outcomes Evaluation of consultancies Needs identification /definition Demand management Criteria Selection of the right partner to co- create the solution – confidence in the partner to deliver the required outcomes (more flexibility on the activities) Confidence in the quality of the presentation at the pitch and the individuals present References (evidence of how)Credentials (evidence of what) Dynamic phased process to increase certainty of results Often consultant led, discreet process at single point in time Ongoing contract management, collaboration with Operation Separate roles for operations and procurement Purchasing Business Improvement“Traditional” Purchasing
  4. 4. © Celerant Consulting Page 4 The emotional journey of change Where advice activity stops Where Business Improvement activity starts Results Results
  5. 5. © Celerant Consulting Page 5 Business Improvement projects are not always well defined at the outset 1. Optimism - the start of the journey 3.The defined results 2. The journey of business improvement Simple to define Reasonably simple to define Difficult to define & measure but critical to success
  6. 6. © Celerant Consulting Page 6 Where Business Improvement purchasing often focuses MANAGEMENT SYSTEMS PROCESSES PEOPLE & ORGANISATIONS GetGetGetGet BuyBuyBuyBuy----inininin BEHAVIOURAL CHANGE SUSTAINABLE RESULTS Mapping key processes and applying appropriate “lean” and 6 Sigma type tools to generate improvement # people trained in tools and techniques to which level The Celerant 5 Box Model® GetGetGetGet CommitmentCommitmentCommitmentCommitment Make itMake itMake itMake it HappenHappenHappenHappen Make itMake itMake itMake it StickStickStickStick Financial Operational Cultural
  7. 7. © Celerant Consulting Page 7 The critical success criteria for successful Business improvement engagements lie in... MANAGEMENT SYSTEMS PROCESSES PEOPLE & ORGANISATIONS GetGetGetGet BuyBuyBuyBuy----inininin BEHAVIOURAL CHANGE SUSTAINABLE RESULTS The Celerant 5 Box Model® GetGetGetGet CommitmentCommitmentCommitmentCommitment Make itMake itMake itMake it HappenHappenHappenHappen Make itMake itMake itMake it StickStickStickStick Financial Operational Cultural Installing an effective MCRS®; KPI’s and meeting structures, escalation process and performanc e related behaviours
  8. 8. © Celerant Consulting Page 8 Discovery Baseline Analysis Design & Deploy Implement To 1 week 4-6 weeks 8-16 weeks 20-30+ weeks High level opportunity assessment, prioritisation and approach Validate business case, primary drivers and implementation plan Implementation Solution Design and Mobilisation Install new ways of working and ensure sustainability Divide the decision process into more manageable chunks An example phased approach to defining BI outcomes
  9. 9. © Celerant Consulting Page 9 Sustainability – leaving behind an organisation capable of continuous performance improvement Engage Training Guidance coaching Coaching coaches Coaching sustainability CONSULTANT TEAM: PROJECT FOCUS CONTINUOUS IMPROVEMENT: EMBEDDED IN ORGANISATION DESIGN IMPLEMENTANALYSIS SUSTAIN Competence Development in Client organisation
  10. 10. © Celerant Consulting Page 10 Defining and tracking the results to ensure the return on investment Area / Process Issue / Problem Statement Baseline (Financial workwith) Machine Availability: Excess time beyond required is required to complete mandatory washing / cleaning of machines £131,363 4% 5% £4,926 £6,897 Management skills: Lack of tools on how to solve and find root cause on daily/weekly issues. £131,363 4% 5% £4,926 £6,897 Machine Availability: Excess time beyond required is required to complete routine changeovers £131,363 5% 7% £6,568 £9,195 Machine Availability: Excess time beyond required is required for machine shiftchanges £131,363 3% 4% £3,284 £4,598 Machine Availability: Excess time beyond what is required to do first line maintenance £131,363 3% 4% £3,284 £4,598 Machine Availability: High volume of unplanned machine downtime due to lack of input material and machine breakdown £131,363 3% 4% £3,284 £4,598 Machine Rate :Losses due to inadequate standards on how to utilize machine capacity £131,363 5% 7% £6,568 £9,195 Area % Impactability Min / Max Identified Financial Benefits Min / Max Production Effectiveness Sum 32,841 45,977 Evaluation Financial Benefits are tracked weekly in an evaluation tool agreed with the business case The Overtime budget was recently approved and can begin measuring Overtime against target. Results Planning: Where will the financial and operational improvement come from Evaluation Methodology: How we know the financial and operational improvements are actually hitting the bottom line Area / Process Issue / Problem Statement Baseline (Financial workwith) Machine Availability: Excess time beyond required is required to complete mandatory washing / cleaning of machines £131,363 4% 5% £4,926 £6,897 Management skills: Lack of tools on how to solve and find root cause on daily/weekly issues. £131,363 4% 5% £4,926 £6,897 Machine Availability: Excess time beyond required is required to complete routine changeovers £131,363 5% 7% £6,568 £9,195 Machine Availability: Excess time beyond required is required for machine shiftchanges £131,363 3% 4% £3,284 £4,598 Machine Availability: Excess time beyond what is required to do first line maintenance £131,363 3% 4% £3,284 £4,598 Machine Availability: High volume of unplanned machine downtime due to lack of input material and machine breakdown £131,363 3% 4% £3,284 £4,598 Machine Rate :Losses due to inadequate standards on how to utilize machine capacity £131,363 5% 7% £6,568 £9,195 Area % Impactability Min / Max Identified Financial Benefits Min / Max Production Effectiveness Sum 32,841 45,977
  11. 11. © Celerant Consulting Page 11 The underlying journey means measuring progress along the way is critical to ensuring the results are delivered LEARNING/ EXPERIENCE DEVELOPING PRACTICE AND LEARNING PERFORMING MISTRUST Watching DISBELIEF Protecting HOPEFUL Contributing ANGRY Withdrawing UNCERTAINTY Co-operating CAUTIOUSLY POSITIVE Engaging SELF-CONFIDENT Giving PRIDE Take-over ACCEPTANCE 20% COMPLIANCE 60% OWNERSHIP 100% USE 40% UNDERSTANDING 80%
  12. 12. © Celerant Consulting Page 12 So a knowledgeable buyer will need to shift the criteria and goal posts for comparison and selection Risk/Reward, commitment to results, return on investment Daily rates/rate cardsSpend criteria Sustainable Behavioural change Results need measurement & monitoring to ensure they hit the bottom line Advice, expertise Results are the advice and conclusions Benefits/ outcomes Evaluation of consultancies Needs identification /definition Demand management Criteria Selection of the right partner to co- create the solution – confidence in the partner to deliver the required outcomes (more flexibility on the activities) Confidence in the quality of the presentation at the pitch and the individuals present References (evidence of how)Credentials (evidence of what) Dynamic phased process to increase certainty of results Often consultant led, discreet process at single point in time Ongoing contract management, collaboration with Operation Separate roles in the operation and procurement Purchasing Business Improvement Purchasing Advice
  13. 13. © Celerant Consulting Page 13 Contact Cathy Johnson Vice President +44 783 627 3799 cathy.johnson@celerantconsulting.com
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