Lean Best-Practices for Services Operations
 

Lean Best-Practices for Services Operations

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Watch this presentation with audio: http://planview.com/JITRlive ...

Watch this presentation with audio: http://planview.com/JITRlive

Twenty-five years after “lean” manufacturing production practices were deemed a “triumph” in industry-revolutionizing research by Toyota and MIT, there is similar scrutiny facing professional and field services organizations to find ways to increase revenues by improving efficiency.

In this informative and interactive session, Planview guests, RTM Consulting, presents their unique perspective in leveraging lean principles for human capital management for their PS clients called Just-in-Time Resourcing® with the goal that you achieve a clear understanding of the:

• Actionable insights into lean techniques, combining people, process and automation;
• Efficient use of human capital, defining essential building blocks to support resource optimization; and
• Available tools for overcoming the challenges of embracing lean concepts within a professional and field services organization.

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Lean Best-Practices for Services Operations Lean Best-Practices for Services Operations Presentation Transcript

  • RTM Consulting We help consulting, professional, and support services organizations get better at what they do Lean Best-Practices for Services Operations Just-in-Time Resourcing® for Professional Services Randy Mysliviec President and CEO RTM Consulting Steve Beaumont Solution Market Manager Planview
  • Randy Mysliviec  President and CEO • Acknowledged expert in Global Resource Management (GRM) • Author of the Just-in-Time Resourcing® solution  Formerly SVP, Consulting and Professional Services for Convergys  18 years at IBM  Founding member of the Technology Professional Services Association (TPSA – now TSIA) and served as a member of the TPSA Advisory Board Steve Beaumont  25-years Professional Services experience including 12 years as a management consultant with Deloitte, Coopers & Lybrand, and E&Y  Currently owns the client-perspective for the Planview Services Resource Planning (SRP) technology solution Our Presenters RTM Consulting
  • About Planview Optimize the Core of Your Business Operations Strategy Financials Maximize Opportunity with Constrained Resources Improve Agility  and Capacity to Innovate Build an Integrated Strategy and Execution Plan Measure  Results In Real‐Time See Planview Enterprise live. Register for a 30-minute demo at planview.com/srpdemo
  • Integrated Services Resource Planning See Planview Enterprise live. Register for a 30-minute demo at planview.com/srpdemo
  • RTM Consulting “Our mission is to help consulting, professional and support services organizations get better at what they do” Rapid Assess Design Transform RESULTS! Innovative Frameworks and Transformation Processes Since 2007 Two Locations: Cincinnati (HQ) Wash. DC >100 Clients Worldwide on 5 Continents Services Transformation Experts for Tech Companies 100+Years of Strategy and Operational Leadership Experience Management & Operational Consulting #1 in Resource Management: Just-in-Time Resourcing® Consulting Training Mentoring Staffing SoftwareTools © 2007- 2014 RTM Consulting, Inc. All Rights Reserved.
  • Agenda  Resource Management Perspectives  Lessons Learned From Just-in-Time Manufacturing  Just-in-Time Resourcing®  Change Management Implications  Questions • Get the white paper: Just-in-Time Resourcing® - A Blueprint for Putting the ‘Lean’ into Services Operations at planview.com/JITR
  • How many times have you heard (or said)? “I know I have people with the skills I need, I just can’t find them.” “I know my revenue forecast, how do I get a people forecast?” “If everyone is assigned, why am I not making my numbers?” “I have no idea what my resource needs will be 2, 3, 4 months from now.” “Where did that project come from?” 7© 2007- 2014 RTM Consulting, Inc. All Rights Reserved.
  • Resource Management (RM) Definition 8  What is it? • Staffing? • Human Resources? • Recruiting? • A function?  Who does it? • Practice Leads? • VPs? • Admin? • The ‘RMO’? “Getting the Right Person in the Right Place at the Right Time” OR Just-in-Time Resourcing® © 2007- 2014 RTM Consulting, Inc. All Rights Reserved.
  • Why is This So Important? # of Consultants 1 5 10 15 # of Consultants 1 5 10 15 50 $208,000 $1,040,000 $2,080,000 $3,120,000 50 $104,000 $520,000 $1,040,000 $1,560,000 100 $416,000 $2,080,000 $4,160,000 $6,240,000 100 $208,000 $1,040,000 $2,080,000 $3,120,000 150 $624,000 $3,120,000 $6,240,000 $9,360,000 150 $312,000 $1,560,000 $3,120,000 $4,680,000 200 $832,000 $4,160,000 $8,320,000 $12,480,000 200 $416,000 $2,080,000 $4,160,000 $6,240,000 250 $1,040,000 $5,200,000 $10,400,000 $15,600,000 250 $520,000 $2,600,000 $5,200,000 $7,800,000 325 $1,352,000 $6,760,000 $13,520,000 $20,280,000 325 $676,000 $3,380,000 $6,760,000 $10,140,000 375 $1,560,000 $7,800,000 $15,600,000 $23,400,000 375 $780,000 $3,900,000 $7,800,000 $11,700,000 Assumptions Assumptions Billable Hourly Rate $200 Billable Hourly Rate $200 Loaded Hourly Cost $100 Gross Revenue $200 Gross Margin $100 Increase in Utilization by (pts): Increase in Utilization by (pts): MARGINAL REVENUE IMPROVEMENT MARGINAL OI IMPROVEMENT Annual Increase in Marginal Revenue and OI from Utilization Improvement • Small improvements in utilization can have significant bottom line impact • Analysis does not account for additional benefits from: 1. Reduced hiring / training costs 2. Improved preparedness to start client engagements on time and with appropriate resources 3. Reduced attrition / Improved employee satisfaction © 2007- 2014 RTM Consulting, Inc. All Rights Reserved.
  • Utilization Benchmarks 10 TSIA Datapoint* Comment There is a 6 pt and 9% diff between planned and actual utilization For a $100m PS business with 400 FTEs … the $$ impact of this gap is???? $4,467,840 *Technology Services Industry Association © 2007- 2014 RTM Consulting, Inc. All Rights Reserved.
  • Agenda  Resource Management Perspectives  Lessons Learned From Just-in-Time Manufacturing  Just-in-Time Resourcing®  Change Management Implications  Questions • Get the white paper: Just-in-Time Resourcing® - A Blueprint for Putting the ‘Lean’ into Services Operations at planview.com/JITR
  • In 1970 Manufacturers needed to:  Reduce labor costs • Too much idle time waiting on parts • Inefficient use of human capital, weak automation  Lower inventory carrying costs • Decentralized inventory driving high carrying costs • Lack of information automation  Improve quality and predictability Get the right part in the right place at the right time, and make better use of human capital © 2007- 2014 RTM Consulting, Inc. All Rights Reserved. Learning From the Past: Just-in-Time Manufacturing
  • Human capital intensive High inventory carrying costs Manual project tracking Robotics Near zero inventory carrying cost Production mgmt. automation Reactionary demand mgmt. Sophisticated forecasting/supply chain 1970s 2014 Today Just-in-Time Manufacturing and Supply Chain methods are table stakes Lower Cost Better Quality More Predictable Learning From the Past: Just-in-Time Manufacturing © 2007- 2014 RTM Consulting, Inc. All Rights Reserved.
  • Why Not Just-in-Time Resourcing®? Lots of reasons its not common but does differ in each situation; in general:  More focus on project processes than on the underlying human capital required to implement the processes  Organizational silos in companies – those are ‘my’ resources  ‘Our situation is unique – it can’t be done’  ‘It’s impossible to forecast this stuff’ But it can and is being done! © 2007- 2014 RTM Consulting, Inc. All Rights Reserved.
  • Agenda  Resource Management Perspectives  Lessons Learned From Just-in-Time Manufacturing  Just-in-Time Resourcing®  Change Management Implications  Questions • Get the white paper: Just-in-Time Resourcing® - A Blueprint for Putting the ‘Lean’ into Services Operations at planview.com/JITR
  • Quality processes / RM processes? Dept. Led resource deployment Manual or limited human capital automation Add Next Gen RM processes Centralized resource deployment Semi-automated human capital deployment Reactionary demand mgmt Sophisticated forecasting/supply chain Start/stop recruiting and development Fluid recruiting and development Lower Cost Better Quality More Predictable Where are you now? 2014+ Right Person • Right Place • Right Time © 2007- 2014 RTM Consulting, Inc. All Rights Reserved.
  • Just-in-Time Resourcing® (JITR) Bringing Strong Process Discipline to RM Skills Inventory Staffing Forecast- ing Candidate Sourcing & Develop- ment Auto- mation Tools e.g. PSA/PPM Process Govern- ance GRM* Processes Just-in-Time Resourcing® (JITR) is the capability to facilitate getting the Right person in the Right place at the Right time o Characterizing Supply o Resource Skills Inventory o Process Staffing requests o Characterizing Demand o Forecasting future needs o Managing Talent o Candidate Sourcing & Development o Enabling / Automating RM Processes o Automation Infrastructure e.g. PSA/PPM o Ensuring Compliance o Process Governance *Global Resource Management © 2007- 2014 RTM Consulting, Inc. All Rights Reserved.
  • Resource Attributes and Skills See Planview Enterprise live. Register for a 30-minute demo at planview.com/srpdemo
  • Just-in-Time Resourcing® (JITR) Bringing Strong Process Discipline to RM Skills Inventory Staffing Forecast- ing Candidate Sourcing & Develop- ment Auto- mation Tools e.g. PSA/PPM Process Govern- ance GRM* Processes Just-in-Time Resourcing® (JITR) is the capability to facilitate getting the Right person in the Right place at the Right time o Characterizing Supply o Resource Skills Inventory o Process Staffing requests o Characterizing Demand o Forecasting future needs o Managing Talent o Candidate Sourcing & Development o Enabling / Automating RM Processes o Automation Infrastructure e.g. PSA/PPM o Ensuring Compliance o Process Governance *Global Resource Management © 2007- 2014 RTM Consulting, Inc. All Rights Reserved.
  • Unfulfilled Requirements See Planview Enterprise live. Register for a 30-minute demo at planview.com/srpdemo
  • Just-in-Time Resourcing® (JITR) Bringing Strong Process Discipline to RM Skills Inventory Staffing Forecast- ing Candidate Sourcing & Develop- ment Auto- mation Tools e.g. PSA/PPM Process Govern- ance GRM* Processes Just-in-Time Resourcing® (JITR) is the capability to facilitate getting the Right person in the Right place at the Right time o Characterizing Supply o Resource Skills Inventory o Process Staffing requests o Characterizing Demand o Forecasting future needs o Managing Talent o Candidate Sourcing & Development o Enabling / Automating RM Processes o Automation Infrastructure e.g. PSA/PPM o Ensuring Compliance o Process Governance *Global Resource Management © 2007- 2014 RTM Consulting, Inc. All Rights Reserved.
  • Demand and Capacity Planning See Planview Enterprise live. Register for a 30-minute demo at planview.com/srpdemo
  • Just-in-Time Resourcing® (JITR) Bringing Strong Process Discipline to RM Skills Inventory Staffing Forecast- ing Candidate Sourcing & Develop- ment Auto- mation Tools e.g. PSA/PPM Process Govern- ance GRM* Processes Just-in-Time Resourcing® (JITR) is the capability to facilitate getting the Right person in the Right place at the Right time o Characterizing Supply o Resource Skills Inventory o Process Staffing requests o Characterizing Demand o Forecasting future needs o Managing Talent o Candidate Sourcing & Development o Enabling / Automating RM Processes o Automation Infrastructure e.g. PSA/PPM o Ensuring Compliance o Process Governance *Global Resource Management © 2007- 2014 RTM Consulting, Inc. All Rights Reserved.
  • Resource Search See Planview Enterprise live. Register for a 30-minute demo at planview.com/srpdemo
  • Just-in-Time Resourcing® (JITR) Bringing Strong Process Discipline to RM Skills Inventory Staffing Forecast- ing Candidate Sourcing & Develop- ment Auto- mation Tools e.g. PSA/PPM Process Govern- ance GRM* Processes Just-in-Time Resourcing® (JITR) is the capability to facilitate getting the Right person in the Right place at the Right time o Characterizing Supply o Resource Skills Inventory o Process Staffing requests o Characterizing Demand o Forecasting future needs o Managing Talent o Candidate Sourcing & Development o Enabling / Automating RM Processes o Automation Infrastructure e.g. PSA/PPM o Ensuring Compliance o Process Governance *Global Resource Management © 2007- 2014 RTM Consulting, Inc. All Rights Reserved.
  • Resource Assignment See Planview Enterprise live. Register for a 30-minute demo at planview.com/srpdemo
  • Just-in-Time Resourcing® (JITR) Bringing Strong Process Discipline to RM Skills Inventory Staffing Forecast- ing Candidate Sourcing & Develop- ment Auto- mation Tools e.g. PSA/PPM Process Govern- ance GRM* Processes Just-in-Time Resourcing® (JITR) is the capability to facilitate getting the Right person in the Right place at the Right time o Characterizing Supply o Resource Skills Inventory o Process Staffing requests o Characterizing Demand o Forecasting future needs o Managing Talent o Candidate Sourcing & Development o Enabling / Automating RM Processes o Automation Infrastructure e.g. PSA/PPM o Ensuring Compliance o Process Governance *Global Resource Management © 2007- 2014 RTM Consulting, Inc. All Rights Reserved.
  • Workflow and Governance See Planview Enterprise live. Register for a 30-minute demo at planview.com/srpdemo
  • Key Benefits Cost Quality Predictability  Improved utilization of on-board human capital  Reduce hiring/related costs  Improved staffing alignment -- best resource(s) for the job -- means: • Less rework • More on-time, on-budget projects  Greater automation and process drive improved consistency … Better Results, Happier Customers © 2007- 2014 RTM Consulting, Inc. All Rights Reserved.
  • Agenda  Resource Management Perspectives  Lessons Learned From Just-in-Time Manufacturing  Just-in-Time Resourcing®  Change Management Implications  Questions • Get the white paper: Just-in-Time Resourcing® - A Blueprint for Putting the ‘Lean’ into Services Operations at planview.com/JITR
  • Change Management (CM) Implications  Don’t underestimate the need for CM  Breaking down the silos is always a challenge  Tops down support/education essential  PSA/PPM implementations and RM process change should be contemplated simultaneously  Build a complete CM plan and communicate expectations  Build and execute good governance processes © 2007- 2014 RTM Consulting, Inc. All Rights Reserved.
  • RTM Consulting Resource Management Solution Center World Leader in Resource Management RMaaS (Resource Management as a Service) Global Resource Management Methodology Resource Manager Sourcing Certification Program - RMCP℠ Resource Management Forum Just-in-Time Resourcing® Solutions Consulting, Transformation Services and Training RMCP℠ Resource Center Resource Management Institute Services and Solutions © 2007- 2014 RTM Consulting, Inc. All Rights Reserved.
  • Agenda  Resource Management Perspectives  Lessons Learned From Just-in-Time Manufacturing  Just-in-Time Resourcing®  Change Management Implications  Questions • Get the white paper: Just-in-Time Resourcing® - A Blueprint for Putting the ‘Lean’ into Services Operations at planview.com/JITR
  • Randy Mysliviec randy@rtmconsulting.net info@rtmconsulting.net www.rtmconsulting.net www.justintimeresourcing.com Steve Beaumont market@planview.com planview.com planview.com/Professional-Services RTM Consulting See Planview Enterprise in action during a 30-minute live online demonstration Learn more and reserve a seat at planview.com/SRPdemo Learn More