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Pricing a Consulting Project

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This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go …

This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:
http://flevy.com/browse/business-document/Pricing-a-Consulting-Project-94

This presentation discusses the basic principles behind designing and pricing a management consulting type project.

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  • 1. Cost Reduction Presentation This document discusses various cost reduction methodologies and concepts, including the following: Process Optimization, Strategic Sourcing, Shared Services, Business Process Outsourcing
  • 2. 4 Use a Savings Prioritization Matrix to identify the most viable opportunities and define priorities for analysis Potential Savings Sources Process Optimization – Resource and Technology Analysis Strategic Sourcing – Vendor Analysis – Supply Chain Optimization – Supplier Relationship Management Shared Services – Consolidation and Streamlining BPO • High Technical Complexity • Multiple Interdependencies • Political issues • “Emotional” Content • Standard Specifications • Simple connections • IT centric • “Analytical” Content HighLow CostReduction Opportunity/Benefit Hard EasyEase of Implementation Strategic Sourcing Project Portfolio Rationalization Operational Automation Application Portfolio Rationalization Head Count Infratructure Consolidation Compensation Cash Management Application Maintenance Outsourcing Consolidate Help Desks Procurement Management including Contractor Management Shared Services Consolidate Market Data Offshore Development Data Center Consolidation IT Funding Model/Charge Back Prioritization Matrix EXAMPLE This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/cost-reduction-93
  • 3. 7 Agenda Business Process Outsourcing Shared Services Strategic Sourcing Process Optimization Overview of Cost Reduction This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/cost-reduction-93
  • 4. 10 Here is leading approach used for a typical Activity Based Assessment 65 9 Step 1 Step 2 Step 3 1 Pre-project Planning and Set-up Initial Diagnostics, Interviews and Hypothesis Data Gathering Leadership Performance Quantification and Validation of Opportunities Path Forward/ Transformation Map Quick Wins for productivity enhancement Initiation of Change Operating Model Analysis • Cost Analysis • Benchmarking Organizational Model Assessment 2 3 4 7 8 Planning/ Alignment Analysis of the “As Is” and Potential of the “To Be” Transformation Map 11 Business Analysis through Process Mapping Opportunity Selection Step 4 Planning Discovery Consensus Mobilization 10 EXAM PLE Long Term change requirements This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/cost-reduction-93
  • 5. 13 SKU Management Sales Creative Services Consumer Research Marketing Planning Asset Management Acquisition Acquisitions, Marketing & Sales Promotions Pre- Production Management Product Planning “Prod. Config” Inventory Planning Pre release Sourcing Procurement Bus. Decision Framework Collaborative Forecasting Data Integrity Post Event Analysis Knowledge Management Budget / Planning Category Management Manufacturing Assembly & Distribution Planning WIP Inventory Visibility Demand & Supply Matching FG Inventory Visibility Manufacturing Assembly & Distribution Pick, Pack & Ship Planning Planning “Outbound” Transformation “Inbound” Order Management Replenishment VMI Deliveries Non VMI Deliveries Customer Service Invoicing VMI Retail Merchandising Returns Management Credit & Deductions Mnmt Manufacturing Distribution Merchandiser Business Intelligence Supply Chain Illustrative Macro Process Overview Media Advertising & Publicity Planning = Indicative Pain Points Interviewing, benchmarking, and other techniques are used to identify bottom up savings opportunities measured against your current state processes This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/cost-reduction-93
  • 6. 16 Agenda Business Process Outsourcing Shared Services Strategic Sourcing Process Optimization Overview of Cost Reduction This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/cost-reduction-93
  • 7. 19 Below is a high level end-to-end sourcing methodology leveraging procurement organization design and alignment 4 Phase Sourcing Methodology Phase 1 Phase 4Phase 3Phase 2 Assessment Snapshot Spend Analysis Category Sourcing - Repeatable - Specialty Implementation Organization Data Analysis Organization Assessment Organization Evaluation and Recommendations Implementation 4 Step Procurement Organization Design & Alignment Methodology This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/cost-reduction-93
  • 8. 22 Agenda Business Process Outsourcing Shared Services Strategic Sourcing Process Optimization Overview of Cost Reduction This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/cost-reduction-93
  • 9. 25 There are 3 key horizons of Shared Services development Our blueprint begins with the engagement of leadership and key stakeholders to establish key decisions and solution parameters Breadth of Organization Involvement Level of Detail Executive Alignment Validation & Buy In Detail Design & Implementation Blueprint Blueprint: Executive Alignment Blueprint: Validation & Buy-In Detail Design & Implementation Key Executive Finance leadership evaluate solution and implementation options in the context of strategic objectives, resulting in key decisions and parameters. Includes high level financial model, and organization alignment plans. Extended team (including Division/Business Unit stakeholders) develops additional detail in the Service Model, Organization Alignment, Business Case and Implementation options, resulting in scenario selection and validation. Includes alignment with other initiatives. Design & Implementation team develops detailed design for pilot business domains and processes, and manages migration to the new Intelligent Leveraging service model Decisions and parameters are used by a broader team to develop additional detail, validate the way forward, and achieve buy-in from key stakeholders This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/cost-reduction-93
  • 10. 28 Vision & Feasibility Study ProjectStart-up Location Study Organisation Review Process Review System & Technology Review Vision Development & Business Case Project Management Future State Design Organization Design & HR Strategy Site Location Visit & Negotiation Service Definition Process Design Technology Design & Acquisition Project Management Implementation Implementation Performance Management Program Management SSC Build Out Baselining & SLA Resourcing & Redundancy Knowledge Transfer Site Migration Planning & Roll-out SSC Service Management Role Definition & Headcount Plan Process Re- engineering System Testing Technical Implemen- tation Process Stream Location Stream PM Stream Technical Stream Performance Management Stream Organization & People Stream Based on a Phase 1 specific to Shared Services, we can make informed decisions around future state design and implementation PHASE I PHASE II PHASE III This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/cost-reduction-93
  • 11. 31 Providers will understand how to more efficiently and effectively contract for deals that are sustainable, evolve over time, and cost effective Dramatic Cost Reduction • Deploy technology enablers (Work Management, Scanning) • Standardization • Offshore/distributed delivery • Implement best practice process methodologies Business Flexibility • Rapid ability to scale business model up or down • Deploy mature Change Management process • Access network of global BPO service delivery centers • Multi-platform, multi-client capabilities Managed Risk Exposure • Achieve SAS70 controls audit and report • Provide Sarbanes-Oxley compliance support • Implement Key Performance Metrics • Multiple BPO centers in diverse geographic regions Operational Excellence • Implement best practice process methodologies • Technology enhancement and enablement • High quality staff focused on continuous improvement • Deploy transition and transformation methodologies VALUE ACHIEVED The result is greater business optimization and flexibility through coherent control of activities that have previously been loosely linked. This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/cost-reduction-93
  • 12. 1 Flevy (www.flevy.com) is the marketplace for premium documents. These documents can range from Business Frameworks to Financial Models to PowerPoint Templates. Flevy was founded under the principle that companies waste a lot of time and money recreating the same foundational business documents. Our vision is for Flevy to become a comprehensive knowledge base of business documents. All organizations, from startups to large enterprises, can use Flevy— whether it's to jumpstart projects, to find reference or comparison materials, or just to learn. Contact Us Please contact us with any questions you may have about our company. • General Inquiries support@flevy.com • Media/PR press@flevy.com • Billing billing@flevy.com

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