Supply Chain Governance

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“Governance” is the third topic in a supply chain learning series presented by ScottMadden and Shared Services & Outsourcing Network (SSON).

“Governance” is the third topic in a supply chain learning series presented by ScottMadden and Shared Services & Outsourcing Network (SSON).

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  • 1. Copyright © 2011 by ScottMadden. All rights reserved.Supply Chain GovernanceSSON Supply Chain Learning SeriesContact: aeflores@scottmadden.com
  • 2. Copyright © 2011 by ScottMadden. All rights reserved.Table of Contents About ScottMadden Governance Overview Governance Components Supply Chain Topics1
  • 3. About ScottMadden
  • 4. Copyright © 2011 by ScottMadden. All rights reserved.Primary Practice AreasCorporate andSharedServicesEnergyGovernmentClean Tech andInfrastructure Supply Chain Finance and Accounting Human Resources Information Technology Corporate Real EstateCorporate and Shared ServicesFunctional Expertise Strategy and Business Planning Service Delivery Model Design Spend and Market Analysis Sourcing Strategy Development Supplier Performance Management Organization Design Process Improvement and Cost Reduction Technology Support Business Case Development Implementation Planning Implementation Project Management M&A Integration Operational Audits Customer Relationship Management Customer and Employee SurveysCorporate and Shared ServicesManagement Consulting ExpertiseOur Practice Areas3
  • 5. Copyright © 2011 by ScottMadden. All rights reserved.What We Do In Shared ServicesOur Shared Services PracticeDecide Design Build ImproveOur Shared Services PracticeWe are the leading shared services management consulting firm.4
  • 6. Governance Overview
  • 7. Copyright © 2011 by ScottMadden. All rights reserved.Transitioning to a Shared Services Delivery ModelMoving from a “reactionary state” to a “future state” shared services model is a challenging endeavor.The graphic below highlights the key differences between these two states.Characteristic Reactionary State Future StateSupply Chain Focus Transactional Channeled – Strategic &TransactionalRelationship WithBusiness AreasIndependent PartnerSourcing Practices andKnowledgeLocation-Specific,LimitedCentralized, Centers ofExcellence LeveragedRoles & Responsibilitiesbetween Supply Chainand Business AreasUnclear, Flexible Well-Defined, Enforced,Accountability-BasedProcesses andProceduresLocation-Specific,InconsistentIntegrated, Well-Defined6
  • 8. Copyright © 2011 by ScottMadden. All rights reserved.Transitioning to a Shared Services Delivery Model (Cont’d)Creating the type of service delivery model we covered during the previous article in the Supply ChainSSON series necessitates a keen focus on understanding business unit needs, an ability to align thework to be performed with the necessary skills, and managing information flows and issue resolutionin an effective manner.7
  • 9. Copyright © 2011 by ScottMadden. All rights reserved. 8Shared Services Delivery Model Success RequirementsEffective governance is one of the over-arching requirements for shared services success.
  • 10. Copyright © 2011 by ScottMadden. All rights reserved.Governance…..“The process of directing the behaviors and decisions of the people whoare part of an organization. Governance is exercised through three keyprocesses: Legislative – making the rules; Executive – monitoring andenforcing the rules; and Judicial – arbitrating the rules.“Source: Harvard Department/IRU School Press, 2004“Governance” Defined9Firms with superior governance have at least 20% higher profits than firmswith poor governance, given the same strategic objectives.
  • 11. Copyright © 2011 by ScottMadden. All rights reserved.The level of governance required is often basedupon the culture of the organization or the trusttowards the shared service center. From internal customers:— Resistance to let go— Belief that “we are different”— Desire for high customization— Resistance to pay for services From shared services:— Desire to take on too much too fast— Poor perceived service— Allowing no customization for exceptions— Poor reporting practicesThe Case for GovernanceFormalityofGovernancePotential for ConflictLittle formal governance is required when thepotential for conflict is minimal, and thepotential for conflict increases as the numberof customer groups and services increase.“He who governs least, governs best.” - Thomas Jefferson10A governance model is created to ensure that the shared services organization is held accountablefor providing a consistent level of service to its customers (e.g., the business areas or corporatedivisions). The model also provides structure for evaluating requests or arbitrating issues betweenthe shared services organization and its customers.
  • 12. Copyright © 2011 by ScottMadden. All rights reserved.Components of an Effective Governance Model1. A formal structure to manage the process2. Clear demarcation of decision roles and responsibilities3. Clear goals and principles— Goals outline the purpose for the shared services organization— The principles establish the ideals or values upon which the organization operates11Organizations, like individuals, may see the same issue fromvery different perspectives, and without effective governance, itcan be extremely difficult to find the right path forward.4. Well-articulated policies,processes, procedures, andstandards— Policies, processes, andprocedures define howdecisions are made, howissues are escalated, andwhat criteria are used togovern the process— Standards determine what isexpected and to what level ofservice the work is performed
  • 13. Governance Components
  • 14. Copyright © 2011 by ScottMadden. All rights reserved.The formality and participating members in a governance structure is influenced by factors such as sizeof the organization, the number and complexity of services, organization culture, and hierarchy. Governance Board is comprised of executives from keybusiness units, the head of shared services, andsupport organization leads (e.g., Supply Chain, IT, etc.) Functional Advisory Panels for each supportorganization are comprised of support organization andkey business unit managers Board has strategic vision, service alignment, and high-level issue resolution responsibilities while the AdvisoryPanels handle tactical performance direction and issueresolution/escalation activitiesSharedServicesLeadCorporateITBusinessUnit ABusinessUnit CCorporateSupplyChainBusinessUnit BGovernance BoardGovernance CharacteristicsKey Benefits Shared services organization obtains representationamong senior management for key business decisions Business unit customers are able to strongly influencethe direction of shared services and ensure that sharedservices are responsive to business unit needs Advisory Panels create a formal process to controlspending, prioritize initiatives, and integrate with otherbusiness initiativesP2P ServiceCenterCenters ofExpertiseSupply ChainSharedServicesFormal Governance Structure13Functional Advisory PanelsSupply ChainAdvisory PanelExecutive-LevelManager-Level
  • 15. Copyright © 2011 by ScottMadden. All rights reserved.Roles and ResponsibilitiesResponsibility DescriptionGovern Approve projects and funding Endorse policies, processes, and practices Define service levels Serve as arbitrator for disputesOversee Monitor, assess, and evaluate performance versus standards Perform independent analysis of performance, trends, forecasts, and variances Review and approve recommendations to ensure policy boundaries aremaintained Review and evaluate action plans to close gaps vs. governance standards andperformance goalsSupport Provide value-added, supplemental resources or services to those performing thework, e.g., technical expertise, guidance, staff support, etc.Execute Develop plans to achieve the results required by governance standards andperformance goals Execute plans and do the work Maintain functional competence and capability that compare favorably to industrystandardsEach governance structure group should have key responsibilities identified within the overall model.14GovernanceBoardAdvisoryPanel(s)SSC/LineManager(s)
  • 16. Copyright © 2011 by ScottMadden. All rights reserved.Goals and PrinciplesContinuousImprovementIdentify and deploybest practices quicklyand globallyProcessStandardizationDevelop streamlinedprocess standards thatcan be maintained andimproved quicklyMarketResponsivenessProvide service levelsdesired by theDepartment/IRUBusinessManagementManage the servicelike a business, not afixed costService CultureTreat theDepartment/IRU likecustomers, offeringvalued services andcharging for eachPriceTransparencyEach Department/IRUdetermines how muchservice it wants at thatpriceSource: Shared Services: Management Fad orReal Value? Booz-Allen HamiltonGuiding principles represent the shared vision around which decision rights, policies, and standardswill be established.Shared ServicesGuiding Principles15
  • 17. Copyright © 2011 by ScottMadden. All rights reserved.Policies, Processes, Procedures, and Standards Governance focused organization Performance managementfocused Clear issue escalationsmechanisms Linkages to business unit plans Effective policies and guidelines Communicate benefits Executive sponsorshipRelationshipGovernanceProvideexecutiveleadershipCommercialManagementContract /PricingSLAsDepartmentDevelopmentOperationalPerformanceManagementDay-to-dayoperations andrelationshipmanagementPoliciesProcessesProceduresRoles and responsibilitiesService level agreementsIncentivesPerformance scorecardsGovernance and operational rules should be documented and communicated in some manner.16
  • 18. Copyright © 2011 by ScottMadden. All rights reserved.Effective Governance requires establishing adequate methods for monitoring performance. Shared visibility to both service providers and Business Unit customers Information updated on a real-time or near real-time basisF.G.P. PROJECTS DRIVING BOARDStatusTendency(previous)Tendency(actual)TIME COST (Euro) Open issuesOrder Project DescriptionProjectManagerType Impact 30-Apr-01 31-M ay-01BaselineStartBaselineEndForecastEndBudgetActual Forecast & Critical PointsCMFR0027 PRGT00PB Powerbrain Sorrenti F M 1-Nov-00 31-Aug-01 31-Aug-01 26,550 26,085 26,550CMEV0007 PRGT1572 Impl. Verrone Plant Serafino F M 15-Jan-01 28-Sep-01 28-Sep-01 82,633 0 82,633CMSP0015 PRGT2982 HRMS new. Devel. Pukly F H 1-Jan-01 31-Dec-01 31-Dec-01 108,785 0 108,785CMSP0015 PRGT3044 Web professional Pukly F M 15-Apr-01 31-Dec-01 31-Dec-01 71,975 0 71,975CMSP0039 PRGT0017 Estesa Di Carlo O L 7-May-01 30-Jun-01 30-Jun-01 23,750 0 23,750CMSP0015 PRGT3047 I.I.S. HR FGP Pukly F L 1-Jan-01 31-Jul-01 31-Jul-01 77,468 0 77,468CMSP0028 PRGT0014 Engine Sperim. Appl. Brezigar O M 12-Apr-01 31-Dec-01 31-Dec-01 158,479 0 158,479Total 549,640 26,085 549,640LegendType Compulsory (O) Impact High (H) Status Critical Tendency FlatFirm(F) Medium(M) Medium RaisingOpportunity (O) Low (L) On track FallingCODE NAME TYPEORDER XXX XXX Date 05/17/2001PROJECT PRGTnnnn Implementation Compulsory Firm OpportunityDescription: References ArchitectureClient: Operating System: Windows NTClient Legal Entity/Functions: IT Project Manager: HW Platform: Server Compaq NTIT Client Manager: Data Base: TBDUser Legal Entity/Functions: IT Application Manager:IT Architect:Impact on other Projects/Applications Notes Operating Costs ForecastOperational: TBDMaintenance: TBDMilestones IssuesStart 28-Feb-01 Initial Budget 40,949End (Baseline) 31-Mar-03 Actual 19,208 Open Issues 10End (Estimate to date) 31-Mar-03 Total Cost Forecast 38,489Expected gap 0.00% Expected gap -6.01% Closed Issues 20Total Issues 30% Open Issues/Total Issues 33.33%Overall Project Status Best Practice AdherenceImpact:Supplier:Costs (Euro)Project Characteristics50% 100% 150% 200%total cost forecast50% 100% 150% 200%total duration forecastactualtodayCRITICAL MEDIUM GOOD HIGH MEDIUM LOW 0 1 2 3 4CODE NAME TYPEORDER XXX XXX Date 05/17/2001PROJECT PRGTnnnn Implementation Compulsory Firm OpportunityDescription: References ArchitectureClient: Operating System: Windows NTClient Legal Entity/Functions: IT Project Manager: HW Platform: Server Compaq NTIT Client Manager: Data Base: TBDUser Legal Entity/Functions: IT Application Manager:IT Architect:Impact on other Projects/Applications Notes Operating Costs ForecastOperational: TBDMaintenance: TBDMilestones IssuesStart 28-Feb-01 Initial Budget 40,949End (Baseline) 31-Mar-03 Actual 19,208 Open Issues 10End (Estimate to date) 31-Mar-03 Total Cost Forecast 38,489Expected gap 0.00% Expected gap -6.01% Closed Issues 20Total Issues 30% Open Issues/Total Issues 33.33%Overall Project Status Best Practice AdherenceImpact:Supplier:Costs (Euro)Project Characteristics50% 100% 150% 200%total cost forecast50% 100% 150% 200%total duration forecastactualtodayCRITICAL MEDIUM GOOD HIGH MEDIUM LOW 0 1 2 3 4CODE NAME TYPEORDER XXX XXX Date 05/17/2001PROJECT PRGTnnnn Implementation Compulsory Firm OpportunityDescription: References ArchitectureClient: Operating System: Windows NTClient Legal Entity/Functions: IT Project Manager: HW Platform: Server Compaq NTIT Client Manager: Data Base: TBDUser Legal Entity/Functions: IT Application Manager:IT Architect:Impact on other Projects/Applications Notes Operating Costs ForecastOperational: TBDMaintenance: TBDMilestones IssuesStart 28-Feb-01 Initial Budget 40,949End (Baseline) 31-Mar-03 Actual 19,208 Open Issues 10End (Estimate to date) 31-Mar-03 Total Cost Forecast 38,489Expected gap 0.00% Expected gap -6.01% Closed Issues 20Total Issues 30% Open Issues/Total Issues 33.33%Overall Project Status Best Practice AdherenceImpact:Supplier:Costs (Euro)Project Characteristics50% 100% 150% 200%total cost forecast50% 100% 150% 200%total duration forecastactualtodayCRITICAL MEDIUM GOOD HIGH MEDIUM LOW 0 1 2 3 4CODE NAME TYPEORDER XXX XXX Date 05/17/2001PROJECT PRGTnnnn Implementation Compulsory Firm OpportunityDescription: References ArchitectureClient: Operating System: Windows NTClient Legal Entity/Functions: IT Project Manager: HW Platform: Server Compaq NTIT Client Manager: Data Base: TBDUser Legal Entity/Functions: IT Application Manager:IT Architect:Impact on other Projects/Applications Notes Operating Costs ForecastOperational: TBDMaintenance: TBDMilestones IssuesStart 28-Feb-01 Initial Budget 40,949End (Baseline) 31-Mar-03 Actual 19,208 Open Issues 10End (Estimate to date) 31-Mar-03 Total Cost Forecast 38,489Expected gap 0.00% Expected gap -6.01% Closed Issues 20Total Issues 30% Open Issues/Total Issues 33.33%Overall Project Status Best Practice AdherenceImpact:Supplier:Costs (Euro)Project Characteristics50% 100% 150% 200%total cost forecast50% 100% 150% 200%total duration forecastactualtodayCRITICAL MEDIUM GOOD HIGH MEDIUM LOW 0 1 2 3 4CODE NAME TYPEORDER XXX XXX Date 05/17/2001PROJECT PRGTnnnn Implementation Compulsory Firm OpportunityDescription: References ArchitectureClient: Operating System: Windows NTClient Legal Entity/Functions: IT Project Manager: HW Platform: Server Compaq NTIT Client Manager: Data Base: TBDUser Legal Entity/Functions: IT Application Manager:IT Architect:Impact on other Projects/Applications Notes Operating Costs ForecastOperational: TBDMaintenance: TBDMilestones IssuesStart 28-Feb-01 Initial Budget 40,949End (Baseline) 31-Mar-03 Actual 19,208 Open Issues 10End (Estimate to date) 31-Mar-03 Total Cost Forecast 38,489Expected gap 0.00% Expected gap -6.01% Closed Issues 20Total Issues 30% Open Issues/Total Issues 33.33%Overall Project Status Best Practice AdherenceImpact:Supplier:Costs (Euro)Project Characteristics50% 100% 150% 200%total cost forecast50% 100% 150% 200%total duration forecastactualtodayCRITICAL MEDIUM GOOD HIGH MEDIUM LOW 0 1 2 3 4CODE NAME TYPEORDER XXX XXX Date 05/17/2001PROJECT PRGTnnnn Implementation Compulsory Firm OpportunityDescription: References ArchitectureClient: Operating System: Windows NTClient Legal Entity/Functions: IT Project Manager: HW Platform: Server Compaq NTIT Client Manager: Data Base: TBDUser Legal Entity/Functions: IT Application Manager:IT Architect:Impact on other Projects/Applications Notes Operating Costs ForecastOperational: TBDMaintenance: TBDMilestones IssuesStart 28-Feb-01 Initial Budget 40,949End (Baseline) 31-Mar-03 Actual 19,208 Open Issues 10End (Estimate to date) 31-Mar-03 Total Cost Forecast 38,489Expected gap 0.00% Expected gap -6.01% Closed Issues 20Total Issues 30% Open Issues/Total Issues 33.33%Overall Project Status Best Practice AdherenceImpact:Supplier:Costs (Euro)Project Characteristics50% 100% 150% 200%total cost forecast50% 100% 150% 200%total duration forecastactualtodayCRITICAL MEDIUM GOOD HIGH MEDIUM LOW 0 1 2 3 4CODE NAME TYPEORDER XXX XXX Date 05/17/2001PROJECT PRGTnnnn Implementation Compulsory Firm OpportunityDescription: References ArchitectureClient: Operating System: Windows NTClient Legal Entity/Functions: IT Project Manager: HW Platform: Server Compaq NTIT Client Manager: Data Base: TBDUser Legal Entity/Functions: IT Application Manager:IT Architect:Impact on other Projects/Applications Notes Operating Costs ForecastOperational: TBDMaintenance: TBDMilestones IssuesStart 28-Feb-01 Initial Budget 40,949End (Baseline) 31-Mar-03 Actual 19,208 Open Issues 10End (Estimate to date) 31-Mar-03 Total Cost Forecast 38,489Expected gap 0.00% Expected gap -6.01% Closed Issues 20Total Issues 30% Open Issues/Total Issues 33.33%Overall Project Status Best Practice AdherenceImpact:Supplier:Costs (Euro)Project Characteristics50% 100% 150% 200%total cost forecast50% 100% 150% 200%total duration forecastactualtodayCRITICAL MEDIUM GOOD HIGH MEDIUM LOW 0 1 2 3 4CODE NAME TYPEORDER XXX XXX Date 05/17/2001PROJECT PRGTnnnn Implementation Compulsory Firm OpportunityDescription: References ArchitectureClient: Operating System: Windows NTClient Legal Entity/Functions: IT Project Manager: HW Platform: Server Compaq NTIT Client Manager: Data Base: TBDUser Legal Entity/Functions: IT Application Manager:IT Architect:Impact on other Projects/Applications Notes Operating Costs ForecastOperational: TBDMaintenance: TBDMilestones IssuesStart 28-Feb-01 Initial Budget 40,949End (Baseline) 31-Mar-03 Actual 19,208 Open Issues 10End (Estimate to date) 31-Mar-03 Total Cost Forecast 38,489Expected gap 0.00% Expected gap -6.01% Closed Issues 20Total Issues 30% Open Issues/Total Issues 33.33%Overall Project Status Best Practice AdherenceImpact:Supplier:Costs (Euro)Project Characteristics50% 100% 150% 200%total cost forecast50% 100% 150% 200%total duration forecastactualtodayCRITICAL MEDIUM GOOD HIGH MEDIUM LOW 0 1 2 3 4CODE NAME TYPEORDER XXX XXX Date 05/17/2001PROJECT PRGTnnnn Implementation Compulsory Firm OpportunityDescription: References ArchitectureClient: Operating System: Windows NTClient Legal Entity/Functions: IT Project Manager: HW Platform: Server Compaq NTIT Client Manager: Data Base: TBDUser Legal Entity/Functions: IT Application Manager:IT Architect:Impact on other Projects/Applications Notes Operating Costs ForecastOperational: TBDMaintenance: TBDMilestones IssuesStart 28-Feb-01 Initial Budget 40,949End (Baseline) 31-Mar-03 Actual 19,208 Open Issues 10End (Estimate to date) 31-Mar-03 Total Cost Forecast 38,489Expected gap 0.00% Expected gap -6.01% Closed Issues 20Total Issues 30% Open Issues/Total Issues 33.33%Overall Project Status Best Practice AdherenceImpact:Supplier:Costs (Euro)Project Characteristics50% 100% 150% 200%total cost forecast50% 100% 150% 200%total duration forecastactualtodayCRITICAL MEDIUM GOOD HIGH MEDIUM LOW 0 1 2 3 4CODE NAME TYPEORDER XXX XXX Date 05/17/2001PROJECT PRGTnnnn Implementation Compulsory Firm OpportunityDescription: References ArchitectureClient: Operating System: Windows NTClient Legal Entity/Functions: IT Project Manager: HW Platform: Server Compaq NTIT Client Manager: Data Base: TBDUser Legal Entity/Functions: IT Application Manager:IT Architect:Impact on other Projects/Applications Notes Operating Costs ForecastOperational: TBDMaintenance: TBDMilestones IssuesStart 28-Feb-01 Initial Budget 40,949End (Baseline) 31-Mar-03 Actual 19,208 Open Issues 10End (Estimate to date) 31-Mar-03 Total Cost Forecast 38,489Expected gap 0.00% Expected gap -6.01% Closed Issues 20Total Issues 30% Open Issues/Total Issues 33.33%Overall Project Status Best Practice AdherenceImpact:Supplier:Costs (Euro)Project Characteristics50% 100% 150% 200%total cost forecast50% 100% 150% 200%total duration forecastactualtodayCRITICAL MEDIUM GOOD HIGH MEDIUM LOW 0 1 2 3 4PROJECT PRGTnnnn Implementation MONTHLY STATUS REPORTREF. 1 / 24MONTH MARZO 2001PHASE PROTOTIPAZIONEPROJECT STATUSE’ stato definito il System Integrator. E stato definito il Piano di progetto.E stata impostata la proposta di Struttura Organizzativa di Progetto. E stata impostata la baseline per i costi di ProgettoSono state attivate le Procedure di Gestione Scope Change Request, di Gestione Issue List e di Gestione della Documentazione.E stato Definito il tool di gestione della documentazione di Progetto. E stata impostata lAnalisi del Rischio.OPEN ISSUES ACTIONS RESPONSILE DUE DATE1 - LAmbiente di Prototipazione non è disponibile. Predisporre ambiente prototipazione IT Project Manager 06/04/01NEXT STEPSUfficializzazione Struttura Organizzativa di progetto. Definizione dei componenti dei team da parte dei Responsabili/Referenti.Verifica profilo di spesa e budget Architettura Tecnologica. Impostazione attività di Quality Assurance.APPROVED CHANGE REQUESTSNr. Description Approval AllocatedDate Contingency150001910821356251302873333000381143430336545409491502019208215312535529058333753467836920 38489050001000015000200002500030000350004000045000Gen01Feb01Mar01Apr01Mag01Giu01Lug01Ago01Set01Ott01Nov01Dic01Gen02Feb02Mar02Apr02Mag02Giu02Lug02Ago02Set02Ott02Nov02Dic02Gen03Feb03Mar03Baseline (Core) Baseline (Contingency)Actual ForecastORDER COMM NameComm BASELINE VS ACTUAL VS FORECAST F.G.P.PROJECT PRGTnnnn ImplementationCOST (Euro)Cost Type Cost Element Baseline Actual Forecast NotesDevelopment & Implementation 18,550 2,434 18,550External Resources 0 0 0Operational/Applicational Mngt 3,783 3,783 3,783Total System Development 22,333 6,217 22,333HW/SW Design & Consultancy 1,572 1,572 1,572HW/SW Acquisition 6,500 6,500 6,500 I costi relativi allarchitettura tecnologica saranno dettagliati al termineSW Licences 3,145 3,145 3,145 della fase di definizione dei requisitiTotal HW/SW Mgnt 11,217 11,217 11,217Total External Costs 33,550 17,434 33,550Total Internal Resources 4,564 1,674 4,564Partial Project Total 38,114 19,108 38,114Contingency 2,835 100 375 Sono state attivate 3 Scope Change RequestOverall Project Total 40,949 19,208 38,489HW/SWManagementSystemDevelopmentBack to indexDashboardSLA TrackingService Delivery ScorecardRisk MapPerformance ReportsCosts DetailData Migration and Go-LiveResourcesChange ManagementProject GovernanceLowHighLow HighValueManageabilityData Migration and Go-LiveProject DocumentationResourcesChange ManagementProject GovernanceProject ManagementTechnological ArchitectureApplicationLegacy SystemsInterfacesProject ManagementTechnological ArchitectureApplicationLegacy SystemsInterfacesProject Documentation17Policies, Processes, Procedures, and Standards (Cont’d)
  • 19. Copyright © 2011 by ScottMadden. All rights reserved.Governance Lessons Learned Mandates do not typically work well— Must find effective ways to make decisions as a team and move forward— Best to build and prove shared services from the bottom up— Must include all the stakeholders in the P2P process Executive sponsorship and commitment reinforce the importance of process alignment— If not structured properly, governance models can conflict with existing budget structures Communicate results and celebrate successes Multiple governance models can be used for different types of decisions – the key is to develop an effectivemethod to set strategic direction, monitor performance, and arbitrate issues that Advisory Panels or projectteams cannot resolve18The key is to develop an effective method to set strategic direction, monitorperformance, and arbitrate issues
  • 20. Supply Chain Topics
  • 21. Copyright © 2011 by ScottMadden. All rights reserved.Supply Chain TopicsThe ScottMadden and SSON Supply Chain Series includes the topics listed below20 Topic 3: Supply Chain GovernanceThis topic will explore the key building blocks of effective supply chain governance models includingdecision rights, performance metrics, service level agreements, and issue escalation/resolution. Wewill also present methods to create alignment across an enterprise for a consistent supply chainstrategy that clearly differentiates transactional efficiency from higher-value, strategic activities Topic 2: How Purchase-to-Pay Fits Within an Enterprise Supply ChainThis topic will focus on the key attributes of a successful P2P transformation and the roletechnology plays in enabling the capture of the synergies and savings associated with P2P in ashared services delivery model Topic 1: The Enterprise Supply ChainThe key characteristics of the enterprise supply chain will be the focus for this topic. A discussionof each area (i.e., planning and forecasting, strategic sourcing, procurement, logistics, materialsmanagement, and accounts payable) will include notable characteristics of leading practice supplychains as well as key “pain points” ScottMadden has observed that keep companies from achievingan optimized supply chain
  • 22. Copyright © 2011 by ScottMadden. All rights reserved.For more information, please contact usContact UsAndy FloresPartnerScottMadden, Inc.3495 Piedmont Rd, Bldg 10Suite 805Atlanta, GA 30305Phone: 404-814-0020aeflores@scottmadden.com21