HOW TO SELECT INNOVATIVE SUPPLIER
 PARTNERS USING A 5-STEP PROJECT
     MANAGEMENT APPROACH


                            ...
Contents
           Introduction
                 The need for innovative suppliers
                 The need for a projec...
Introduction

           The need for innovative suppliers
                 Need to reduce cost and advance innovation
   ...
Innovative Suppliers Dramatically Influence
            Progress Toward Strategic Goals



                               ...
Introduction

           The need for innovative suppliers
                 Strategic partners are truly innovative
      ...
Introduction
           The need for a project management
           approach
                 Organizations have business...
Introduction

           The need for a project management
           approach
                 Pressure to find a supplie...
Use PMI® Process Groups as a Framework
     for Structuring the Selection Process
      Initiating                        ...
Initiating




©2009 Clarity Management Consulting Inc.
Initiating
           Identify core team, sponsor, and
           champion
                 Sponsor is executive-level sta...
Initiating
           Identify and engage stakeholders
                 Review contracts with existing supplier
          ...
Initiating
           Identify and engage stakeholders
                 Engage business units using the protocol
         ...
Planning




©2009 Clarity Management Consulting Inc.
Planning
           Define scope
                 Business units, customers, other affected groups
                 Phased...
Planning
           Communicate scope and timeline to
           stakeholders
                 Create opportunities to get...
Planning

           Brainstorm about desired state and goals
           for new supplier
                 Get a picture o...
Planning
           Define business goals and requirements
                 Gather information
                 Conduct ‘d...
Planning

           Define cost parameters
                 Current cost
                 Potential efficiencies
        ...
Planning
           Use requirements to create templates for
           identifying potential partners/bidders
           ...
Sample Interview Template




©2009 Clarity Management Consulting Inc.          20
Planning

           Define risk management strategies
                 Identify risks
                      Changes to sc...
Planning
           Caution
                 Allow adequate time for planning
                 Don’t underestimate time ne...
Executing




©2009 Clarity Management Consulting Inc.
Executing
           Construct RFP based on stakeholder
           requirements
                 Goals and objectives
    ...
Executing
           Review, finalize, distribute RFP
           Provide additional information and
           clarificati...
Executing

           Create tool for evaluating RFP responses
                 Develop weighting and rating template
    ...
Sample RFP Response Evaluation Template




©2009 Clarity Management Consulting Inc.   27
Executing
           Identify top contenders for next round
           Utilize other evaluation tools to get
           ad...
Controlling




©2009 Clarity Management Consulting Inc.
Controlling
           Controlling is ongoing
                 Allows for incorporation of new information
               ...
Closing




©2009 Clarity Management Consulting Inc.
Closing

           Select supplier partner
                 Notify bidders of decision
                 Schedule contract...
Summary
           This 5-step project management approach
           provides:
                 Tools for identifying str...
Upcoming SlideShare
Loading in …5
×

Clarity Management Consulting - How To Select Innovative Suppliers Using a 5-Step Project Management Approach

1,479 views

Published on

It is critical to build relationships with suppliers who can help you create a competitive advantage and ensure your success in a turbulent business environment. This rigorous five-step project management approach provides tools for identifying innovative supplier partners and incorporating key business requirements into the selection process.

Published in: Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,479
On SlideShare
0
From Embeds
0
Number of Embeds
12
Actions
Shares
0
Downloads
41
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Clarity Management Consulting - How To Select Innovative Suppliers Using a 5-Step Project Management Approach

  1. 1. HOW TO SELECT INNOVATIVE SUPPLIER PARTNERS USING A 5-STEP PROJECT MANAGEMENT APPROACH Monica D. Johns President and CEO Clarity Management Consulting ©2009 Clarity Management Consulting Inc.
  2. 2. Contents Introduction The need for innovative suppliers The need for a project management approach The 5-Step Project Management Approach to Selecting Innovative Suppliers, including: Tools for identifying forward-thinking supplier partners An approach for capturing the requirements of a diverse group of stakeholders Tools for evaluating potential partners ©2009 Clarity Management Consulting Inc. 2
  3. 3. Introduction The need for innovative suppliers Need to reduce cost and advance innovation Need strategic partnerships with innovative suppliers who can accelerate desired improvements Step change improvements versus incremental change ©2009 Clarity Management Consulting Inc. 3
  4. 4. Innovative Suppliers Dramatically Influence Progress Toward Strategic Goals Desired State (your goal) Step change Incremental change Current State ©2009 Clarity Management Consulting Inc. 4
  5. 5. Introduction The need for innovative suppliers Strategic partners are truly innovative They provide systems needed to compete on quality and customer satisfaction They have industry-leading capabilities and can achieve greater efficiencies Technology is a key driver Partners typically have a progressive business model ©2009 Clarity Management Consulting Inc. 5
  6. 6. Introduction The need for a project management approach Organizations have business activities that span functional/organizational lines Multiple end-user groups with different needs Goals and objectives vary Scarce resources spread across a number of activities Minimal documentation of business requirements in many cases ©2009 Clarity Management Consulting Inc. 6
  7. 7. Introduction The need for a project management approach Pressure to find a supplier means choices are driven by current state, not future state Selection decisions affect the organization for years Decisions either facilitate progress or impede it So what is a project management approach to finding innovative suppliers? ©2009 Clarity Management Consulting Inc. 7
  8. 8. Use PMI® Process Groups as a Framework for Structuring the Selection Process Initiating Planning Executing Identify Team Scope Risks RFP and Timeline Criteria Evaluation Tools Stakeholders, Requirements Expectations Solicit Proposals Gain Approval Desired State Prospects Evaluate Metrics Negotiate Controlling (ongoing) Closing Scope Feedback Selection Schedule Documentation Communication Requirements Communication Documentation Cost ©2009 Clarity Management Consulting Inc. 8
  9. 9. Initiating ©2009 Clarity Management Consulting Inc.
  10. 10. Initiating Identify core team, sponsor, and champion Sponsor is executive-level stakeholder Champion is mid-level manager with authority over resources Core team is a subset of those affected by change Can commit time to selection process Can ensure buy-in, influence others Includes key subject matter experts like IT ©2009 Clarity Management Consulting Inc. 10
  11. 11. Initiating Identify and engage stakeholders Review contracts with existing supplier Identify all business units that use the contracts Rank by volume of business under contract Define high, medium, and low volume levels Group business units accordingly Identify communication protocol and determine level of engagement for each ©2009 Clarity Management Consulting Inc. 11
  12. 12. Initiating Identify and engage stakeholders Engage business units using the protocol Adjust approach as needed for unique situations Conduct kick-off meeting with stakeholders Find out how they want things to look in the future Communicate regularly with all groups Essential to successful sourcing activity “Pay me now or pay me later” Gain approval to go forward ©2009 Clarity Management Consulting Inc. 12
  13. 13. Planning ©2009 Clarity Management Consulting Inc.
  14. 14. Planning Define scope Business units, customers, other affected groups Phased approach might be more cost-effective, easier to get buy-in Define timeline Start with contract expiration and work backwards Identify major milestones affected by new contract Define selection activities and timing of resources Include areas of schedule risk, such as sourcing approvals, availability of technology, system changes ©2009 Clarity Management Consulting Inc. 14
  15. 15. Planning Communicate scope and timeline to stakeholders Create opportunities to get feedback Use engagement protocols to your advantage Incorporate stakeholder feedback as appropriate and finalize People will be concerned about change Regroup or reboot if necessary to get them onboard Create revised scope and/or timeline as needed ©2009 Clarity Management Consulting Inc. 15
  16. 16. Planning Brainstorm about desired state and goals for new supplier Get a picture of where you want to be in 2-3 years Decide how new supplier must create value Determine which features and benefits are missing with current supplier/solution Want to move from having suppliers who just sit on the sidelines Want real value partners who support the vision ©2009 Clarity Management Consulting Inc. 16
  17. 17. Planning Define business goals and requirements Gather information Conduct ‘desired state’ brainstorming sessions Organization’s vision and strategic plan documents Existing contracts and metrics Stakeholders and functional groups Customers, partners, and other suppliers if applicable Research the industry to identify standards, trends Compare current supplier’s performance and capabilities to industry trends ©2009 Clarity Management Consulting Inc. 17
  18. 18. Planning Define cost parameters Current cost Potential efficiencies Targets for new contract Incorporate targets set by senior management Include improvements over the life of the contract Use information from industry research ©2009 Clarity Management Consulting Inc. 18
  19. 19. Planning Use requirements to create templates for identifying potential partners/bidders Define characteristics of ideal supplier partner including capabilities, vision, expertise, technology Define and weight appropriately Use templates to rank Invite prospects to give a presentation Use templates to create interview questions Evaluate, rate, and rank presenters to create bid list ©2009 Clarity Management Consulting Inc. 19
  20. 20. Sample Interview Template ©2009 Clarity Management Consulting Inc. 20
  21. 21. Planning Define risk management strategies Identify risks Changes to schedule Modifications to requirements or business model Changes in cost targets Availability of resources Technology upgrades Changes in other suppliers New requirements from customers, government Develop mitigation plans and contingencies ©2009 Clarity Management Consulting Inc. 21
  22. 22. Planning Caution Allow adequate time for planning Don’t underestimate time needed for implementation, especially with multiple stakeholders Change is not always welcome Long-term supplier relationships hard to break Critical to have stakeholders on board Communicate benefits of change on a regular basis Treat current supplier as you would any prospect ©2009 Clarity Management Consulting Inc. 22
  23. 23. Executing ©2009 Clarity Management Consulting Inc.
  24. 24. Executing Construct RFP based on stakeholder requirements Goals and objectives Timeline for bid process and implementation Business description and scope Requirements for key elements of the business Pricing matrix Historical data, Service level requirements Create response template for bidders to use Provides a standard format Facilitates evaluation of responses Follows structure of RFP ©2009 Clarity Management Consulting Inc. 24
  25. 25. Executing Review, finalize, distribute RFP Provide additional information and clarifications at bidders’ conference Review program basics, expectations, vision Review RFP, contract implementation timeline Solicit feedback concerning requirements or information provided Explain response template, pricing matrix Establish ground rules for communication (e.g. questions to be submitted in writing) Address general questions ©2009 Clarity Management Consulting Inc. 25
  26. 26. Executing Create tool for evaluating RFP responses Develop weighting and rating template Should follow RFP response template Evaluate and rate responses, pricing Compile questions to clarify responses Discuss questions in person with individual bidders Responses to questions should also be rated using similar evaluation tool ©2009 Clarity Management Consulting Inc. 26
  27. 27. Sample RFP Response Evaluation Template ©2009 Clarity Management Consulting Inc. 27
  28. 28. Executing Identify top contenders for next round Utilize other evaluation tools to get additional insights Site visits and reference checking Results should corroborate quality of RFP responses Select final set of bidders for negotiations Incorporate any new information and review impact Review with champion Eliminate non-contenders Final recommendations and approvals ©2009 Clarity Management Consulting Inc. 28
  29. 29. Controlling ©2009 Clarity Management Consulting Inc.
  30. 30. Controlling Controlling is ongoing Allows for incorporation of new information Forces the team to reevaluate as needed Evaluate potential changes to scope, etc. Ensure involvement of key team members Regular core team discussions Utilize communications protocol Engage leadership when new information surfaces Ensure consistency of RFP documentation All documents must reflect the latest information ©2009 Clarity Management Consulting Inc. 30
  31. 31. Closing ©2009 Clarity Management Consulting Inc.
  32. 32. Closing Select supplier partner Notify bidders of decision Schedule contract award Finalize communications on contract award Develop plan for transition from current supplier Develop contract documents Statement of Work (SOW) Project Plan Service Level Agreements ©2009 Clarity Management Consulting Inc. 32
  33. 33. Summary This 5-step project management approach provides: Tools for identifying strategic supplier partners An approach for capturing the requirements of a diverse group of stakeholders Tools for evaluating potential partners This approach will enable you to: Find innovative partners with world-class capabilities Move toward a sustainable, scalable solution Accelerate achievement of strategic goals Gain a competitive advantage with your customers ©2009 Clarity Management Consulting Inc. 33

×