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7. Planning your Priorities

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Now that you know what you want to improve, how do you go about it?

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7. Planning your Priorities

  1. 1. Your Priorities
  2. 2. Establish a Vision / Define the Problem 1. Knowing what problem you are trying to solve is key. 2. Quantify the current cost – people and money. 3. Research the savings & benefits of deploying Connections Cloud 4. Paint a before-and-after picture 5. Find references and examples of success 6. Get willing volunteers to try it out.
  3. 3. What makes up a vision? It’s a one-sentence statement, describing the clear and inspirational long-term change, resulting from the work. It needs to be:  Clear and simple  Avoid elaborate language and buzz words  Easily explained by those involved San Diego Zoo: To become a world leader at connecting people to wildlife and conservation. Cleveland Clinic: Striving to be the world’s leader in patient experience, clinical outcomes, research and education. Creative Commons: Nothing less than realizing the full potential of the Internet — universal access to research and education, full participation in culture — to drive a new era of development, growth, and productivity.
  4. 4. Ask the organisation… What needs to be changed? How do we measure success? Why should we fix things? Who does this affect? When does it need to be done? What does success look like?
  5. 5. Example Vision Statement “Finding documents in our company causes lots of extra work, affects everyone, introduces errors and affects our delivery. By implementing a collaborative document sharing facility which is available in the office and on the road in the next three months we will cut duplication, improve quality, reduce re-work and reduce costs.”
  6. 6. Vision Exercise Instructions Keep the exercise slide up and ask the participants to form into groups. Ask them to pick one area of collaboration they would like to fix and to then create definitions for each of these areas. Once they have done this, go back to the example vision statement and ask the teams to create their vision statement. Write the vision statements on a wallchart or flipchart for later referral. Allow 30 minutes for this exercise.
  7. 7. Vision Exercise • Describe the problemWhat • Define why this has arisenWhy • Define who is affectedWho • Define when it needs to be doneWhen • Describe what success looks likeSuccess
  8. 8. Seek Leadership Approval Having a vision is not enough to get leadership onboard… Reference Cases Business Case Defined Leadership Involvement Leadership Approval
  9. 9. Reference Cases Let us help you find relevant examples of other customers doing what you want to do, and with the results to prove it.
  10. 10. Which objectives and financial metrics are most important to you? What are you doing today to improve these metrics and show that you are improving the organization? How does your organization compare to others in the same industry? If you could change one aspect of your work to improve the organization’s performance, what would it be?
  11. 11. Some Example Metrics, by Line of Business
  12. 12. Some examples: Chief Executive Officer Which objectives and financial metrics are most important to you? What are you doing today to improve these metrics and show that you are improving the organization? How does your organization compare to others in the same industry? Financial growth & market expansion Reduce customer churn and improve ARPU Understand and deliver value to customers Revenue Growth Operating Income Margin Fixed Asset Utilization Customer Churn % revenue from cross- sell/up-sell Revenue management % of cost of customer service % sales budget Business Objective Financial Metrics Operational KPIs
  13. 13. Which objectives and financial metrics are most important to you? What are you doing today to improve these metrics and show that you are improving the organization? How does your organization compare to others in the same industry? Forecasting and budgeting accuracy Manage profitability and capital structure Business Insights Revenue growth Operating income margin Cash operating cycle Fixed asset utilization Customer Churn % revenue from cross- sell/up-sell Revenue management % revenue from new customers Customer invoicing cycle time Overdue receivables Business Objective Financial Metrics Operational KPIs Some examples: Chief Financial Officer
  14. 14. Which objectives and financial metrics are most important to you? What are you doing today to improve these metrics and show that you are improving the organization? How does your organization compare to others in the same industry? Develop and leverage technology for insights Manage network and data security Better mobile accessibility Revenue Growth Operating Income Margin Fixed Asset Utilization Customer Churn % IT expenses % revenue from cross- sell / up-sell % revenue from new customers Customer invoicing cycle time Business Objective Financial Metrics Operational KPIs Some examples: Chief Information Officer
  15. 15. Which objectives and financial metrics are most important to you? What are you doing today to improve these metrics and show that you are improving the organization? How does your organization compare to others in the same industry? Reduce customer churn / improve customer loyalty Personalized offers Capture customer insights Revenue Growth Selling, general & administrative expense Customer Churn % revenue from cross- sell / up-sell % revenue from new customers % marketing expense % revenue from marketing campaigns Business Objective Financial Metrics Operational KPIs Some examples: Chief Marketing Officer
  16. 16. Which objectives and financial metrics are most important to you? What are you doing today to improve these metrics and show that you are improving the organization? How does your organization compare to others in the same industry? Reduce customer churn / improve customer loyalty Drive operational improvements Network reliability Revenue Growth Operating Income Margin Fixed asset utilization Customer Churn % revenue from cross- sell / up-sell % overhead costs % labor costs % material costs % logistics costs Business Objective Financial Metrics Operational KPIs Some examples: Chief Operating Officer
  17. 17. Which objectives and financial metrics are most important to you? What are you doing today to improve these metrics and show that you are improving the organization? How does your organization compare to others in the same industry? Ensure secure access to mobile and web applications Ensure system availability and data confidentiality Protect network and the assets they support Revenue Growth Operating Income Margin Fixed asset utilization Customer Churn % revenue from new customers % labor cost % overhead cost % new product development expense % IT expense Business Objective Financial Metrics Operational KPIs Some examples: Chief Security Officer
  18. 18. Which objectives and financial metrics are most important to you? What are you doing today to improve these metrics and show that you are improving the organization? How does your organization compare to others in the same industry? Spend analysis Vendor management Reduce maverick buying Gross profit margin Days in inventory Days purchases outstanding % total cost of procurement cycle % value of materials and services % value of maverick buying Supplier lead time % supplier discounts Direct procurement Indirect procurement Business Objective Financial Metrics Operational KPIs Some examples: Chief Procurement Officer
  19. 19. Which objectives and financial metrics are most important to you? What are you doing today to improve these metrics and show that you are improving the organization? How does your organization compare to others in the same industry? Cost containment Drive operational improvements Inventory visibility Revenue growth Gross profit margin Days in inventory Fixed asset utilization % stockout losses % logistics cost % warehousing cost % outbound transportation cost % shrinkage Supplier lead time Business Objective Financial Metrics Operational KPIs Some examples: Chief Supply Chain Officer
  20. 20. Which objectives and financial metrics are most important to you? What are you doing today to improve these metrics and show that you are improving the organization? How does your organization compare to others in the same industry? Reduce customer churn and improve ARPU Channel growth Cross-sell / Up-sell Revenue growth Selling, general and administrative expense Days sales outstanding Customer churn % revenue from cross- sell / up-sell % revenue from new customers Qualified lead closure Revenue management % sales budget Overdue receivables % cost of customer service % cost of orders Business Objective Financial Metrics Operational KPIs Some examples: Head of Sales
  21. 21. Which objectives and financial metrics are most important to you? What are you doing today to improve these metrics and show that you are improving the organization? How does your organization compare to others in the same industry? Attract talent Retain talent / manage attrition Right-size the labor force Revenue growth Selling, general and administrative expense % human resources expense Labor turnover Business Objective Financial Metrics Operational KPIs Some examples: Head of Human Resources
  22. 22. Building a Business Case Try to quantify the time spent by individuals with the current way of working. Establish the internal cost rate for an hour of someone’s time: –Gross Annual Salary / Annual Hours Worked = Rate per Hour Establish the cost of the current way of working: –Time spent x Rate per Hour = Cost of Process Per Person –Multiply the Cost of Process Per Person by the number of people.
  23. 23. Building a Business Case, Example Average annual salary of employee in department $50,000 Hours worked per year (8 x 5 x 52) = 2080 Rate per hour $50,000 / 2080 $24 Non-productive time per day 0.5 hrs $12 Non-productive time for the year per person (5 x 52) x $12 $3,120 Non-productive time cost for the department $3,120 x 20 people $62,400 Example: Everyone in 20-person department spends about 30 mins each day trying to locate information to let them do their job.
  24. 24. Building a Business Case, Example If we can save each user 15 minutes per day by simplifying file sharing, search and discovery… Average annual salary of employee in department $50,000 Hours worked per year (8 x 5 x 52) = 2080 Rate per hour $50,000 / 2080 $24 Non-productive time per day 0.25 hrs $6 Non-productive time for the year per person (5 x 52) x $6 $1,560 Non-productive time cost for the department $1,560 x 20 people $31,200
  25. 25. Building a Business Case Before solution, departmental costs approx. $60k per annum for one process. After solution, departmental costs approx. $30k per annum for one process. Or, put another way, potential savings per user of $1,500 per annum by implementing the system for one process.
  26. 26. Building a Business Case Task Duration Qty Price $ Initial briefing for users (2 groups of 10) Half days 2 650 Test Migration for one user, checking, training & completion Days 0.5 325 Full migration of remaining users Days 2 1300 Briefing, mentoring and assistance in first day post-migration Days 1 650 IBM Connections Cloud S1 for 20 users ($10/month) Example 2,400 Total services & software $5,325 Per user cost per annum $267 Business Case, part 1
  27. 27. Building a Business Case, Summary Per user cost per annum ($267) Per user time saved per annum (approx) $1500 Return on Investment per user per annum $1233 Business Case Part 2
  28. 28. Worksheet: Our Use Cases Priority Description Business Area Owner If we improved this we could…
  29. 29. Which Use Cases Can you work on today? Pick 2 -3 high priority cases and match them to the objective, metrics and KPIs Priority Description Business Area Objective Metrics Key Performance Indicator NOW BUILD A BUSINESS CASEAROUNDTHESE USE CASES
  30. 30. Reference Cases Business Case Defined Leadership Involvement Leadership Approval Seek Leadership Approval Having a vision is not enough to get leadership on board… Not even is a business case enough sometimes!
  31. 31. Just spend a little time looking at what people are adding. Spend a little time “liking”, commenting if appropriate. Follow people, build a network Call out good work, post a status update about your work yesterday Status updates with call to action – drive engagement Short blog about your views and posing questions of employees Example Leadership Invovement Employee Engagement Peer Engagement
  32. 32. Defined Leadership Involvement • Remember in most organisations, everyone is interested in what the leadership says. It might affect their job. • If one leader is being successful with something, their peers will want to be seen as being successful too. • Employee engagement rises when they see their leaders using the system. • Employee engagement rises when they are given a call to action – question to answer, opinion etc. • Advocate 10 – 15 mins per day / every other day. • Don’t encourage secretary to post on their behalf – authenticity very important!
  33. 33. Summary

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