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“Beyond the Purchase”
Continuous Service Improvement and
             Alliances


                 Mr. Phil Larson
Assistant Vice President / Director, Enterprise Operations
           American Fidelity Assurance Group
Beyond the Purchase –
                  CSI + Alliances
Phil Larson, Director of Enterprise Operations oversees 24/7 computer
services, production change support, and production print services, on
demand print services, and office support services. AF-Press is an
entrepreneurial company performing commercial graphics
communication and printing. AFA is a Fortune 100 Best Place to work.
18 months ago, AFA engaged a new approach to office support to
enhance business productivity using a local dealership, BMI, and Canon
equipment. Continuous service improvement factored strong in the
contract and has produced good benefit to departments. Total cost of
operations includes ability to get work done effectively and efficiently not
just for the lowest cost.
Expanding The Pie


                    Enabling Business



                               Green
Makin’ Copies                               Connected
                     Data acquire
                                            Print
                     and usage


         Business Presentation         Multi Function
Mining Diamonds
Get into the business
                of office support

Many organizations make this an equipment and
  software issue instead of a business support issue.
 Think like the business client of the services.
 View from their perspective of getting their work done
  using the equipment and software provided.
 Findings: Clientele were struggling with some simple work
  productivity based on years of assumptions of what
  equipment could and could not do. A refresh of equipment
  gave opportunity to increase productivity on standard
  features no matter the final vendor selected.
Move at the speed of your
               organization.



 Expand your criteria
 Assess the impact of change
 Survey using a decision based needs analysis
 Learn the frequency of WII-FM for the clients
 Findings: Right usage at the right place surfaced as a key
  issue. Making sure we found cost effective solutions for
  management that put the output closest to the customer
  results in containment of hallway flow in the campus.
Develop relative, repeatable,
                and addressable metrics.

Stats
 Office consultation needed along the path
 Cost per person supported
 Cost per produced impression
 Cost of support services - scan to file, email, fax, color
 Findings: Outage per piece of equipment Most vendors
  like averages. One unit out for two weeks can result in a
  98% uptime stat overall. For that department, it is a 0%
  uptime stat and needs tended as such.
Sourcing is a craft.

Train
 There is a craft to this business. Craft is a combination of
  science, art, and skill. Get your team adept at all three.
  Sourcing management studied ahead of the contract.
Use Professional Consultants
 To ensure our new agreement had provisions for revision
  and update along the path and had the right “teeth” in it,
  we used an external consulting group. Now we have a
  model that is repeatable.
Findings: Grid of criteria.. It is not all about costs
     What are your priorities? How much weight do they
    hold?
Criteria Grid – Total
                     Productivity

                             Criteria
                           The Company                              Weight
                       Years in Business                                     3

                            Stability                                        5

               Local Decisions / Responsiveness                              4

                        National support                                     4

                Organizational professionalism                               5

  Expanded support of our business acumen and knowledge.                     4

           Business relationships with key partners                          4

Future orientation consistent with our strategies (deskside, mfd,
               central, commercial, digital ondemand)                        4

            Strategic changes in the last 18 months                          3
Criteria Grid – Total
        Productivity

                 Criteria
               The Program                 Weight
               Flexibility                          5
         Negotiation Willingness                    4
Revision methods and future improvements            4
             Contract Terms                         4
               Innovation                           5
                Expense                             5
             Interoperability                       5
              Accessibility                         5
      Future Cost reduction model                   4
            Carbon footprint                        4
              Ease of use                           3
     Support of business processes                  5
                Security                            5
Criteria Grid – Total
    Productivity

            Criteria
             Service            Weight
        Response Time                    4

             MTTR                        5

             MTBF                        5

        Self managing                    5

     Self Escallation Plan               4

   Reliability of Resolutions            5

     Flexibility of contract             4

   Nationwide for branches               5

 Defined CPI and ITIL I/P/C/C            4

Lean methodology or Six Sigma            4
Criteria Grid – Total
          Productivity

                 Criteria
                  Other                      Weight
     Shared risk and accountability                   4

       Cost per person of solution                    4

        Projected On-going Costs                      4

 Ratio of equipment to office colleagues              4

            Open architecture                         5

Support of corporate output device policy.            4

        Support of billing process                    5

             Environmental                            4
Criteria Grid – Total
      Productivity

              Criteria
                Other                Weight
   Pharos Software Compatibility               5

      Deployment / Installation                5

        Training / Retraining                  5

       Volume Management                       4

    Consumables Management                     4

        Reporting Capability                   4

Equipment Replacements/Relocations             4

         Managed Services                      5

          Quality Control                      4
                Totals                        213

     Perfect Weighted Score                   1065

     Percent of Perfect Score
RACI - The Productive
               Arrangement

Roles and Responsibilities
 Clearly lined out for us and BMI and others involved.
RACI
 Responsible, Accountable, Consulted,Informed – Make
  sure all the players and stakeholders are considered.
Post Results –
                Value Add

Movement into office productivity
 Key executive area engaged in document conversions.
 Scanning offered in all, enabled where productivity resulted.
 Fax integrated in productivity and reduced carbon footprint
  scenarios
 Integrated into company imaging solution
 Base costs remained flat
 Print available in new areas
 Branches networked to new level to get “home office” style
  access to services.
Post Results –
                 Value Add
Operational Productivity
 Billing customized to flow rapidly for payment and
  rectification.
 Custom reporting of capture of usage and allocation back to
  departments saves days a month.
 Enabled movement of thousands of impressions a month
  direct to departmental space from central area. Print at
  point of need with best cost.
 Online ordering existed for movement to central already
  making that efficient.
 Identified and allocate costs to administrate
 Green support - evidence of matched alliance
$7mm Story

         Applying this in our
         on demand and
         production and office
         areas has resulted in
         $$mm for our clients
         over a five year
         period in added
         profits and the birth of
         a profitable business.
Thank You, Vurry Much


           Phil.larson@af-group.com
           405-523-5085

             CSI        The CREAM
             RACI       is the best
                        part. Go for
             Expand     it.
             Alliance
             Mine

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The Power of Alliance

  • 1.
  • 2. “Beyond the Purchase” Continuous Service Improvement and Alliances Mr. Phil Larson Assistant Vice President / Director, Enterprise Operations American Fidelity Assurance Group
  • 3. Beyond the Purchase – CSI + Alliances Phil Larson, Director of Enterprise Operations oversees 24/7 computer services, production change support, and production print services, on demand print services, and office support services. AF-Press is an entrepreneurial company performing commercial graphics communication and printing. AFA is a Fortune 100 Best Place to work. 18 months ago, AFA engaged a new approach to office support to enhance business productivity using a local dealership, BMI, and Canon equipment. Continuous service improvement factored strong in the contract and has produced good benefit to departments. Total cost of operations includes ability to get work done effectively and efficiently not just for the lowest cost.
  • 4. Expanding The Pie Enabling Business Green Makin’ Copies Connected Data acquire Print and usage Business Presentation Multi Function
  • 6. Get into the business of office support Many organizations make this an equipment and software issue instead of a business support issue.  Think like the business client of the services.  View from their perspective of getting their work done using the equipment and software provided.  Findings: Clientele were struggling with some simple work productivity based on years of assumptions of what equipment could and could not do. A refresh of equipment gave opportunity to increase productivity on standard features no matter the final vendor selected.
  • 7. Move at the speed of your organization.  Expand your criteria  Assess the impact of change  Survey using a decision based needs analysis  Learn the frequency of WII-FM for the clients  Findings: Right usage at the right place surfaced as a key issue. Making sure we found cost effective solutions for management that put the output closest to the customer results in containment of hallway flow in the campus.
  • 8. Develop relative, repeatable, and addressable metrics. Stats  Office consultation needed along the path  Cost per person supported  Cost per produced impression  Cost of support services - scan to file, email, fax, color  Findings: Outage per piece of equipment Most vendors like averages. One unit out for two weeks can result in a 98% uptime stat overall. For that department, it is a 0% uptime stat and needs tended as such.
  • 9. Sourcing is a craft. Train  There is a craft to this business. Craft is a combination of science, art, and skill. Get your team adept at all three. Sourcing management studied ahead of the contract. Use Professional Consultants  To ensure our new agreement had provisions for revision and update along the path and had the right “teeth” in it, we used an external consulting group. Now we have a model that is repeatable. Findings: Grid of criteria.. It is not all about costs  What are your priorities? How much weight do they hold?
  • 10. Criteria Grid – Total Productivity Criteria The Company Weight Years in Business 3 Stability 5 Local Decisions / Responsiveness 4 National support 4 Organizational professionalism 5 Expanded support of our business acumen and knowledge. 4 Business relationships with key partners 4 Future orientation consistent with our strategies (deskside, mfd, central, commercial, digital ondemand) 4 Strategic changes in the last 18 months 3
  • 11. Criteria Grid – Total Productivity Criteria The Program Weight Flexibility 5 Negotiation Willingness 4 Revision methods and future improvements 4 Contract Terms 4 Innovation 5 Expense 5 Interoperability 5 Accessibility 5 Future Cost reduction model 4 Carbon footprint 4 Ease of use 3 Support of business processes 5 Security 5
  • 12. Criteria Grid – Total Productivity Criteria Service Weight Response Time 4 MTTR 5 MTBF 5 Self managing 5 Self Escallation Plan 4 Reliability of Resolutions 5 Flexibility of contract 4 Nationwide for branches 5 Defined CPI and ITIL I/P/C/C 4 Lean methodology or Six Sigma 4
  • 13. Criteria Grid – Total Productivity Criteria Other Weight Shared risk and accountability 4 Cost per person of solution 4 Projected On-going Costs 4 Ratio of equipment to office colleagues 4 Open architecture 5 Support of corporate output device policy. 4 Support of billing process 5 Environmental 4
  • 14. Criteria Grid – Total Productivity Criteria Other Weight Pharos Software Compatibility 5 Deployment / Installation 5 Training / Retraining 5 Volume Management 4 Consumables Management 4 Reporting Capability 4 Equipment Replacements/Relocations 4 Managed Services 5 Quality Control 4 Totals 213 Perfect Weighted Score 1065 Percent of Perfect Score
  • 15. RACI - The Productive Arrangement Roles and Responsibilities  Clearly lined out for us and BMI and others involved. RACI  Responsible, Accountable, Consulted,Informed – Make sure all the players and stakeholders are considered.
  • 16. Post Results – Value Add Movement into office productivity  Key executive area engaged in document conversions.  Scanning offered in all, enabled where productivity resulted.  Fax integrated in productivity and reduced carbon footprint scenarios  Integrated into company imaging solution  Base costs remained flat  Print available in new areas  Branches networked to new level to get “home office” style access to services.
  • 17. Post Results – Value Add Operational Productivity  Billing customized to flow rapidly for payment and rectification.  Custom reporting of capture of usage and allocation back to departments saves days a month.  Enabled movement of thousands of impressions a month direct to departmental space from central area. Print at point of need with best cost.  Online ordering existed for movement to central already making that efficient.  Identified and allocate costs to administrate  Green support - evidence of matched alliance
  • 18. $7mm Story Applying this in our on demand and production and office areas has resulted in $$mm for our clients over a five year period in added profits and the birth of a profitable business.
  • 19. Thank You, Vurry Much  Phil.larson@af-group.com  405-523-5085 CSI The CREAM RACI is the best part. Go for Expand it. Alliance Mine