This document summarizes a presentation given by Kym Williams of Business + Risk Solutions on obtaining value for money on service and operational contracts for large infrastructure projects. The presentation focused on contracting as an effective relationship, balancing cost sensitivity and budget sensitivity, key stages in procurement planning, and designing contracts to incentivize optimal performance through commercial alignment. It also discussed allocating risk to the best party and aligning contract price with the service provider's cost structure. The goal is achieving value for money through a collaborative approach rather than an adversarial relationship between the organization and service provider.
This document summarizes RSM Tenon's pension covenant advisory services. It discusses how most UK defined benefit pension schemes are in deficit, representing an involuntary creditor risk for companies. RSM Tenon helps trustees understand sponsors' ability to fund deficits and schemes, and helps sponsors navigate regulatory requirements during corporate events. The company provides independent covenant assessments involving sponsor financial reviews to help trustees and sponsors make informed decisions.
This document discusses how Riskpro, an Indian risk management firm, offers temporary staffing solutions to help companies reduce payroll costs during recessions. It notes that recessions hit companies' revenues and outlooks, forcing cost cuts including payroll. Riskpro can provide temporary staff across finance, audit, risk and compliance roles from short notice placements of 2 weeks to over 1 year. This offers substantial savings over traditional hiring while providing flexible resources. Riskpro absorbs all recruitment, termination and compliance costs while clients pay only for productivity. It introduces Riskpro and its team of over 200 years of experience delivering a variety of risk management services and training.
RISKPRO INDIA
• Riskpro is India’s first national practice dedicated to risk management services and training, corporate governance, and global regulatory compliances
• Risk can be defined as a prospect of loss or reduced gain that can adversely affect the achievement of an organisation’s objectives
• When greed overtakes need, it spells trouble. Manifested as ‘bankruptcy’ in much of the developed world and ‘corruption’ closer to home, greed has clearly disrupted some major industrialised economies and enhanced the risks of doing business
• In today’s world, risks are not few. The reason companies so often fail to systematically manage their key risks is rooted in the way they define the risks they face. Risks are manageable and the answer to untapped business opportunities that lie dormant waiting for risk factors to turn favourable
• Riskpro was founded in 2009 with offices in Mumbai, Delhi, and Bangalore and it has already added eight member firms in Ahmedabad, Agra, Chennai, Gurgaon, Hyderabad, Jaipur, Ludhiana, and Pune. All our offices and member firms are well equipped and staffed with qualified professionals viz. CA, CWA, CS, CPA, CIA, CISA, CFA, and MBA
• Riskpro’s founders are qualified risk management specialists with extensive work experience in Europe and USA in several industries and financial institutions
• Riskpro aims to be the preferred service provider for large and medium enterprises on risk protection, corporate governance, and global regulatory issues; delivering state-of-the-art quality and timely services at viable rates
RISKPRO SERVICES
• Our four major practice specialisations /service lines are:
Risk: Enterprise Risk Management (services and training & recruitment)
Governance: Corporate Governance and Transparency
Compliance: Global and Indian Regulatory Compliances
Training: in all of the above service lines
• The Risk Practice deals with all classes of risks and processes viz. governance, strategic, systemic /infrastructure, compliance, reporting, and financial reporting. Processes require that key risks are properly identified, measured, monitored, controlled, and reported. Processes may also require tools like risk based internal audit, information security testing, and fraud investigations, to be employed
• The Governance Practice deals with corporate oversight and risk governance issues within an organization including business continuity planning, compliance with SEBI guidelines by listed companies, regulations relating to independent directors, investor expectation and protection, Clause-49 on corporate governance, etc
• The Compliance Practice covers a wide range of regulatory and environmental compliances including Sox, IFRS, Solvency II, Basel II /III, Corporate Laws & Direct Tax Code etc
• The Training Practice comprises of a variety of structured and /or industry specific training programs and modules designed and conducted by Riskpro experts and trainers at onsite (client or other off
Delivering Business Value By Applying Agile Principles To Business Continuity...Ken Collins
Agile methodologies clearly work well in the world of software development—the evidence is overwhelming. But how does Agile apply to other disciplines like business continuity management? Can the Agile philosophy help mitigate power disruptions and improve pandemic planning?
Mr. Collins illustrates how one client in the financial services sector successfully applied Agile principles to a recent business continuity initiative.
This session is intended for executives and project managers charged with developing business continuity and IT disaster recovery plans.
Learning Objectives
• Describe typical challenges as businesses try to build competency with business continuity management.
• Learn how Agile principles can shape the vision and scope of business continuity initiatives.
• Understand how Agile can enhance accountability, motivate teams, deliver short-term wins and generate real business value.
This document provides an overview of concepts covered in a class on global project management. It discusses project partnering frameworks, key partnership practices, types of contracts, managing contract changes, classes of international projects, issues in international management, international assignments, environmental factors affecting projects, cross-cultural factors, and Hofstede's cultural dimensions framework. The class will cover cultural orientation, negotiating across cultures, and sustaining international partnerships.
The Project Management Process - Week 10 Global Issues in IT projectsCraig Brown
The document discusses concepts related to global project management. It covers topics like project partnering, types of contracts, international projects, environmental factors, cultural dimensions, and working with partners. The key points are that partnering transforms adversarial relationships into collaborative teams, different types of contracts allocate risk differently, managing global projects requires considering various cultural and environmental factors, and selecting the right partners and celebrating successes are important for partnership success.
MGD Services proposes an alternative quality management solution to address issues with the client's current offshore provider. MGD has over 20 years of experience providing onsite and offsite quality services. They propose utilizing their experienced resources and process expertise to improve documentation, leadership, and deliver increased value over the lifecycle of projects at a competitive cost. MGD requests an opportunity to estimate costs and deliverables for an upcoming project to demonstrate their ability to address the client's problems with reduced quality and consistency from offshore outsourcing.
This document summarizes RSM Tenon's pension covenant advisory services. It discusses how most UK defined benefit pension schemes are in deficit, representing an involuntary creditor risk for companies. RSM Tenon helps trustees understand sponsors' ability to fund deficits and schemes, and helps sponsors navigate regulatory requirements during corporate events. The company provides independent covenant assessments involving sponsor financial reviews to help trustees and sponsors make informed decisions.
This document discusses how Riskpro, an Indian risk management firm, offers temporary staffing solutions to help companies reduce payroll costs during recessions. It notes that recessions hit companies' revenues and outlooks, forcing cost cuts including payroll. Riskpro can provide temporary staff across finance, audit, risk and compliance roles from short notice placements of 2 weeks to over 1 year. This offers substantial savings over traditional hiring while providing flexible resources. Riskpro absorbs all recruitment, termination and compliance costs while clients pay only for productivity. It introduces Riskpro and its team of over 200 years of experience delivering a variety of risk management services and training.
RISKPRO INDIA
• Riskpro is India’s first national practice dedicated to risk management services and training, corporate governance, and global regulatory compliances
• Risk can be defined as a prospect of loss or reduced gain that can adversely affect the achievement of an organisation’s objectives
• When greed overtakes need, it spells trouble. Manifested as ‘bankruptcy’ in much of the developed world and ‘corruption’ closer to home, greed has clearly disrupted some major industrialised economies and enhanced the risks of doing business
• In today’s world, risks are not few. The reason companies so often fail to systematically manage their key risks is rooted in the way they define the risks they face. Risks are manageable and the answer to untapped business opportunities that lie dormant waiting for risk factors to turn favourable
• Riskpro was founded in 2009 with offices in Mumbai, Delhi, and Bangalore and it has already added eight member firms in Ahmedabad, Agra, Chennai, Gurgaon, Hyderabad, Jaipur, Ludhiana, and Pune. All our offices and member firms are well equipped and staffed with qualified professionals viz. CA, CWA, CS, CPA, CIA, CISA, CFA, and MBA
• Riskpro’s founders are qualified risk management specialists with extensive work experience in Europe and USA in several industries and financial institutions
• Riskpro aims to be the preferred service provider for large and medium enterprises on risk protection, corporate governance, and global regulatory issues; delivering state-of-the-art quality and timely services at viable rates
RISKPRO SERVICES
• Our four major practice specialisations /service lines are:
Risk: Enterprise Risk Management (services and training & recruitment)
Governance: Corporate Governance and Transparency
Compliance: Global and Indian Regulatory Compliances
Training: in all of the above service lines
• The Risk Practice deals with all classes of risks and processes viz. governance, strategic, systemic /infrastructure, compliance, reporting, and financial reporting. Processes require that key risks are properly identified, measured, monitored, controlled, and reported. Processes may also require tools like risk based internal audit, information security testing, and fraud investigations, to be employed
• The Governance Practice deals with corporate oversight and risk governance issues within an organization including business continuity planning, compliance with SEBI guidelines by listed companies, regulations relating to independent directors, investor expectation and protection, Clause-49 on corporate governance, etc
• The Compliance Practice covers a wide range of regulatory and environmental compliances including Sox, IFRS, Solvency II, Basel II /III, Corporate Laws & Direct Tax Code etc
• The Training Practice comprises of a variety of structured and /or industry specific training programs and modules designed and conducted by Riskpro experts and trainers at onsite (client or other off
Delivering Business Value By Applying Agile Principles To Business Continuity...Ken Collins
Agile methodologies clearly work well in the world of software development—the evidence is overwhelming. But how does Agile apply to other disciplines like business continuity management? Can the Agile philosophy help mitigate power disruptions and improve pandemic planning?
Mr. Collins illustrates how one client in the financial services sector successfully applied Agile principles to a recent business continuity initiative.
This session is intended for executives and project managers charged with developing business continuity and IT disaster recovery plans.
Learning Objectives
• Describe typical challenges as businesses try to build competency with business continuity management.
• Learn how Agile principles can shape the vision and scope of business continuity initiatives.
• Understand how Agile can enhance accountability, motivate teams, deliver short-term wins and generate real business value.
This document provides an overview of concepts covered in a class on global project management. It discusses project partnering frameworks, key partnership practices, types of contracts, managing contract changes, classes of international projects, issues in international management, international assignments, environmental factors affecting projects, cross-cultural factors, and Hofstede's cultural dimensions framework. The class will cover cultural orientation, negotiating across cultures, and sustaining international partnerships.
The Project Management Process - Week 10 Global Issues in IT projectsCraig Brown
The document discusses concepts related to global project management. It covers topics like project partnering, types of contracts, international projects, environmental factors, cultural dimensions, and working with partners. The key points are that partnering transforms adversarial relationships into collaborative teams, different types of contracts allocate risk differently, managing global projects requires considering various cultural and environmental factors, and selecting the right partners and celebrating successes are important for partnership success.
MGD Services proposes an alternative quality management solution to address issues with the client's current offshore provider. MGD has over 20 years of experience providing onsite and offsite quality services. They propose utilizing their experienced resources and process expertise to improve documentation, leadership, and deliver increased value over the lifecycle of projects at a competitive cost. MGD requests an opportunity to estimate costs and deliverables for an upcoming project to demonstrate their ability to address the client's problems with reduced quality and consistency from offshore outsourcing.
The document discusses tripleA, a consulting firm that helps information providers optimize their use of global sourcing. They understand publishers' businesses and needs. tripleA examines clients' operations for inefficiencies and evaluates cost savings from outsourcing parts of content production. They advise on strategic sourcing assessments, vendor selection, implementing shared service centers, and governance for long-term partnerships. tripleA aims to partner with clients through the full outsourcing process.
An externality is a cost or benefit imposed on a third party from an economic activity or transaction. External costs can lead to overproduction while external benefits can lead to underproduction, resulting in an inefficient allocation of resources. Marginal social cost includes private marginal costs plus external marginal costs like pollution. Efficient production occurs where marginal social cost equals price. Government policies like taxes or regulations can internalize externalities to improve efficiency.
This document discusses the findings of the ICPM Taskforce Report and their implications for contracting on complex projects. The report found that traditional contractual approaches can hinder effective collaboration, and identified several traits necessary for delivering complex projects successfully. These include having a flexible, outcome-focused organization; a systemic, portfolio approach; and contracting strategies focused on long-term benefits rather than risk transfer. The document argues that implementing the taskforce's findings could help maximize benefits through practices like earlier industry involvement, collaborative risk management, and incentives aligned with overall outcomes.
June 9-11, 2009 – Conference: Lean Government Exchange (Des Moines, Iowa) Session: "How To Scope a Lean Event"
Presented by Brent Jameson, Managing Director of Technology and Strategic Alliances of Guidon
A dynamic, best process improvement conference focused on implementing Lean in government.
FRT - 110530 - BED - Why are some companies luckier than others - Frank LeendersFlevum
This document discusses how companies can transform their risk management approaches to create strategic value. It notes that while companies recognize the need to improve risk governance, many are overspending on risk management and not focusing on the most important risks. The document advocates aligning risk management more closely with business strategies to reduce costs, enhance transparency and improve performance. It outlines a risk performance model that companies can use to strengthen governance, integrate risk functions and measure risk management's impact on business objectives.
PiR Resourcing is a specialist recruitment firm that provides interim management candidates to the life sciences industry. They offer interim managers for various business needs like filling gaps, turnarounds, and projects. Their interim managers have medical, regulatory, commercial, and other expertise. PiR handles the entire process of identifying qualified candidates, interviewing, contracting, and supporting both the client and interim manager throughout the assignment. Their interim managers are experienced professionals capable of achieving the client's objectives on a project basis.
This document discusses disaster recovery and business continuity planning. It introduces common types of disasters and provides examples. The importance of having a disaster recovery plan and team is emphasized. Key aspects of a disaster recovery plan include identifying critical business functions, assessing risks, developing avoidance, mitigation and recovery strategies, and testing plans. The document also covers challenges in implementing recovery plans effectively.
Are Your Training Partners Living Up to Their Promises?Kelly Condron
According to Training Magazine’s
2006 Industry Report, 27% of small
and 71% of large companies
outsource some or all of their
custom content development. To
establish and maintain successful
partnerships, you should select the
right outsourcing partner,
continually assess established
partners, identify measures up-front
in the contract, and make a
commitment for mutual success.
Carol scottcowartmcphillipspm challengefinalNASAPMC
The document summarizes NASA's Commercial Crew Program (CCP), which takes a non-traditional approach of partnering with commercial providers through Space Act Agreements (SAA) instead of traditional contracts. The goals of the program are to develop safe and cost-effective crew transportation to the International Space Station while facilitating partnerships between NASA and commercial partners. Key aspects of the program include using SAAs initially before transitioning to contracts, developing certification requirements, and providing oversight and insight into partner activities at appropriate levels throughout development and testing. The program aims to maximize efficiency and cost-effectiveness through competition between multiple partners.
Deloitte Capital and Real Estate Transformation Newsletter 1Q 2010kochalla
With the recent economic downturn, many companies are increasing their focus on cost improvement to increase shareholder returns. Corporate real estate can play a major role in cost management initiatives as it is typically the 2nd or 3rd largest operating cost in many organizations. Strategic real estate cost optimization opportunities can be identified and achieved quickly through a combination of:
• Spend analysis
• Portfolio optimization
• Organizational structure redesign
• Process improvement
Most organizations have explored the “low hanging fruit”, or those activities that require minimal effort and provide low impact and benefit. However real estate and facilities operations can partner more closely with internal customers and other enabling functions to tackle more challenging initiatives, resulting in more significant cost savings opportunities.
This issue of Deloitte\'s Capital and Real Estate Transformation (CRET) Quarterly provides insight into the real estate considerations that should be an integral part of any Enterprise Cost Management program. We discuss an approach to real estate and facilities cost optimization activities, identify some common real estate cost reduction initiatives and outline some symptoms that may indicate an organization should explore a more comprehensive real estate cost management program.
Like everyone else, we are prone to see the approaching new year as an opportunity to reflect and make promises to be better yet. But the pressure is even greater for us, since our whole field is about eflection and change! So whether you are a novice trying to get started, an accomplished consultant hoping to expand your work, or a seasoned practitioner seeking the capstone to a long career, let's take the time to look at how we all can advance our practice.
Building on 35 years of experience with hundreds of client engagements, Jerry Talley will suggest some of the road maps we all can use to move along in our journey to becoming the consultant we want to be. We will (1) enumerate the elements of a successful consulting practice, (2) define the essential activity that distinguishes consulting from simple expertise, (3) map out the whole field of OD, and (4) identify the typical areas and patterns for professional development. In short, figure out where you are...and where you could be in 2013.
Bio: Jerry L. Talley was one of the founders of SBODN in 1987. His 35 years of consulting has spanned over 350 engagements with clients from public sector, for profit, and not-for-profit ventures. He has worked in high-tech, manufacturing, hospitality, pharmaceuticals, publishing, entertainment and broadcasting, the military, health care, public utilities, construction, aerospace, higher education, banking and finance, foods, and major consulting houses.
Jerry also runs a small group for aspiring consultants hoping to raise the quality and quantity of their practice.
Prior to starting his consulting practice, he taught for 18 years at Stanford University (the source of his PhD). He also had a practice as a licensed Marriage and Family Therapist.
Riskpro is an Indian risk management consulting firm with offices in major cities. It provides integrated risk management services to mid-large sized companies and financial institutions. Riskpro's services include Basel II/III advisory, corporate risk assessment, information security, operational risk management, governance services, and training. It has a network of experienced risk professionals and aims to be the preferred provider of governance, risk and compliance solutions through high quality and timely services.
Pensioen Forum 2009, Rotterdam, 30 September 2009fvalkenburg
The document discusses pension reforms in the Netherlands and alternatives to traditional defined benefit plans. It makes several provocative statements: 1) Pension experts should look at pensions from a business perspective rather than just a pension one. 2) The Netherlands has not fully utilized the possibilities of the EU Pensions Directive like Belgium has. 3) Dutch innovations have been stalled by prioritizing own interests over customers' needs. It argues there is a business case for new structures like the Premium Pension Institution and that defined contribution plans can be sustainable alternatives if risks are properly managed. It concludes the Netherlands should stop developing its own pension vehicle and instead utilize alternatives like Belgium's model or a global pension captive.
A New Arrow for The Pension Practitioners Quiver: Pension Risk TransferJay Dinunzio
Webinar Presentation Slides
Gone are the days of group annuity contracts only being able to satisfy the plan termination objectives of a pension plan sponsor. Today, there are a wide variety of useful applications for guaranteed institutional annuity contract structures to provide an alternative to traditional fixed income investments. Are you or your pension clients:
•Struggling with cost and volatility issues surrounding a defined benefit pension plan?
•Considering a liability driven investment strategy that will de-risk the plan investment and allow for stable, predictable funding?
•Limited by fixed income funds that only allow for simple duration matching, and expose the plan to cash flow mismatch risks?
•Unaware of the variety of customized institutional insurance contract structures available?
•Lacking a fiduciary process for evaluating and monitoring the attractiveness of insured pension solutions?
This document discusses continuity planning challenges for supermarkets with legacy systems from acquisitions. It notes that successful acquisitions have spread operations across brands and countries with limited management attention to continuity. Efforts to identify continuity risks for each process grind to a halt after mapping a few. The legacy of acquisitions makes guaranteeing service levels difficult due to a patchwork of legacy IT systems. Supermarkets need to value continuity and propose a blueprint to rationalize legacy systems to make service level guarantees cost-effective.
Riskpro is an Indian risk management advisory and consulting firm with offices in multiple major cities. It offers a wide range of governance, risk, and compliance (GRC) services to mid-large sized corporate and financial institutions. Riskpro's team has over 200 years of cumulative experience in risk management consulting and internal audits. It provides quality advisory services at competitive rates using a hybrid delivery model combining client staff and its own experts.
Riskpro is an Indian risk management advisory and consulting firm with offices in multiple major cities. It offers a wide range of governance, risk, and compliance (GRC) services to mid-large sized corporate and financial institutions. Riskpro's team has over 200 years of cumulative experience in risk management consulting and internal audits. It provides quality advisory services at competitive rates using a hybrid delivery model combining client staff and its own experts.
Riskpro India Ventures provides integrated risk management consulting services including fraud risk management. It has offices in major Indian cities and alliances in other cities, managed by experienced professionals. Riskpro aims to provide quality advisory services typically offered by large firms, but at more affordable prices than large firms. It focuses exclusively on risk management and has over 200 years of cumulative experience. Services include fraud investigations, anti-fraud programs, compliance, and forensic audits.
This document discusses measuring and improving project team health. It introduces Kym Williams and her experience in infrastructure and local government. The presentation will provide tools to diagnose and report on project health by measuring team engagement. Regular diagnostics can identify issues, track progress, and inform a high performance plan. Surveys and reports can evaluate different levels from the board to individuals. The goal is effective collaboration, role clarity, and focusing on outcomes and challenges.
This document discusses measuring and improving project team health. It introduces Kym Williams and her experience in infrastructure and local government. The presentation will provide tools to diagnose and report on project team health to identify issues and drive improvement. Regular surveys and reports can measure engagement, collaboration, and focus on outcomes. Addressing weaknesses revealed can help achieve objectives like effective collaboration and risk management. Diagnostics link to high performance plans with actions tailored to project stages.
The document discusses tripleA, a consulting firm that helps information providers optimize their use of global sourcing. They understand publishers' businesses and needs. tripleA examines clients' operations for inefficiencies and evaluates cost savings from outsourcing parts of content production. They advise on strategic sourcing assessments, vendor selection, implementing shared service centers, and governance for long-term partnerships. tripleA aims to partner with clients through the full outsourcing process.
An externality is a cost or benefit imposed on a third party from an economic activity or transaction. External costs can lead to overproduction while external benefits can lead to underproduction, resulting in an inefficient allocation of resources. Marginal social cost includes private marginal costs plus external marginal costs like pollution. Efficient production occurs where marginal social cost equals price. Government policies like taxes or regulations can internalize externalities to improve efficiency.
This document discusses the findings of the ICPM Taskforce Report and their implications for contracting on complex projects. The report found that traditional contractual approaches can hinder effective collaboration, and identified several traits necessary for delivering complex projects successfully. These include having a flexible, outcome-focused organization; a systemic, portfolio approach; and contracting strategies focused on long-term benefits rather than risk transfer. The document argues that implementing the taskforce's findings could help maximize benefits through practices like earlier industry involvement, collaborative risk management, and incentives aligned with overall outcomes.
June 9-11, 2009 – Conference: Lean Government Exchange (Des Moines, Iowa) Session: "How To Scope a Lean Event"
Presented by Brent Jameson, Managing Director of Technology and Strategic Alliances of Guidon
A dynamic, best process improvement conference focused on implementing Lean in government.
FRT - 110530 - BED - Why are some companies luckier than others - Frank LeendersFlevum
This document discusses how companies can transform their risk management approaches to create strategic value. It notes that while companies recognize the need to improve risk governance, many are overspending on risk management and not focusing on the most important risks. The document advocates aligning risk management more closely with business strategies to reduce costs, enhance transparency and improve performance. It outlines a risk performance model that companies can use to strengthen governance, integrate risk functions and measure risk management's impact on business objectives.
PiR Resourcing is a specialist recruitment firm that provides interim management candidates to the life sciences industry. They offer interim managers for various business needs like filling gaps, turnarounds, and projects. Their interim managers have medical, regulatory, commercial, and other expertise. PiR handles the entire process of identifying qualified candidates, interviewing, contracting, and supporting both the client and interim manager throughout the assignment. Their interim managers are experienced professionals capable of achieving the client's objectives on a project basis.
This document discusses disaster recovery and business continuity planning. It introduces common types of disasters and provides examples. The importance of having a disaster recovery plan and team is emphasized. Key aspects of a disaster recovery plan include identifying critical business functions, assessing risks, developing avoidance, mitigation and recovery strategies, and testing plans. The document also covers challenges in implementing recovery plans effectively.
Are Your Training Partners Living Up to Their Promises?Kelly Condron
According to Training Magazine’s
2006 Industry Report, 27% of small
and 71% of large companies
outsource some or all of their
custom content development. To
establish and maintain successful
partnerships, you should select the
right outsourcing partner,
continually assess established
partners, identify measures up-front
in the contract, and make a
commitment for mutual success.
Carol scottcowartmcphillipspm challengefinalNASAPMC
The document summarizes NASA's Commercial Crew Program (CCP), which takes a non-traditional approach of partnering with commercial providers through Space Act Agreements (SAA) instead of traditional contracts. The goals of the program are to develop safe and cost-effective crew transportation to the International Space Station while facilitating partnerships between NASA and commercial partners. Key aspects of the program include using SAAs initially before transitioning to contracts, developing certification requirements, and providing oversight and insight into partner activities at appropriate levels throughout development and testing. The program aims to maximize efficiency and cost-effectiveness through competition between multiple partners.
Deloitte Capital and Real Estate Transformation Newsletter 1Q 2010kochalla
With the recent economic downturn, many companies are increasing their focus on cost improvement to increase shareholder returns. Corporate real estate can play a major role in cost management initiatives as it is typically the 2nd or 3rd largest operating cost in many organizations. Strategic real estate cost optimization opportunities can be identified and achieved quickly through a combination of:
• Spend analysis
• Portfolio optimization
• Organizational structure redesign
• Process improvement
Most organizations have explored the “low hanging fruit”, or those activities that require minimal effort and provide low impact and benefit. However real estate and facilities operations can partner more closely with internal customers and other enabling functions to tackle more challenging initiatives, resulting in more significant cost savings opportunities.
This issue of Deloitte\'s Capital and Real Estate Transformation (CRET) Quarterly provides insight into the real estate considerations that should be an integral part of any Enterprise Cost Management program. We discuss an approach to real estate and facilities cost optimization activities, identify some common real estate cost reduction initiatives and outline some symptoms that may indicate an organization should explore a more comprehensive real estate cost management program.
Like everyone else, we are prone to see the approaching new year as an opportunity to reflect and make promises to be better yet. But the pressure is even greater for us, since our whole field is about eflection and change! So whether you are a novice trying to get started, an accomplished consultant hoping to expand your work, or a seasoned practitioner seeking the capstone to a long career, let's take the time to look at how we all can advance our practice.
Building on 35 years of experience with hundreds of client engagements, Jerry Talley will suggest some of the road maps we all can use to move along in our journey to becoming the consultant we want to be. We will (1) enumerate the elements of a successful consulting practice, (2) define the essential activity that distinguishes consulting from simple expertise, (3) map out the whole field of OD, and (4) identify the typical areas and patterns for professional development. In short, figure out where you are...and where you could be in 2013.
Bio: Jerry L. Talley was one of the founders of SBODN in 1987. His 35 years of consulting has spanned over 350 engagements with clients from public sector, for profit, and not-for-profit ventures. He has worked in high-tech, manufacturing, hospitality, pharmaceuticals, publishing, entertainment and broadcasting, the military, health care, public utilities, construction, aerospace, higher education, banking and finance, foods, and major consulting houses.
Jerry also runs a small group for aspiring consultants hoping to raise the quality and quantity of their practice.
Prior to starting his consulting practice, he taught for 18 years at Stanford University (the source of his PhD). He also had a practice as a licensed Marriage and Family Therapist.
Riskpro is an Indian risk management consulting firm with offices in major cities. It provides integrated risk management services to mid-large sized companies and financial institutions. Riskpro's services include Basel II/III advisory, corporate risk assessment, information security, operational risk management, governance services, and training. It has a network of experienced risk professionals and aims to be the preferred provider of governance, risk and compliance solutions through high quality and timely services.
Pensioen Forum 2009, Rotterdam, 30 September 2009fvalkenburg
The document discusses pension reforms in the Netherlands and alternatives to traditional defined benefit plans. It makes several provocative statements: 1) Pension experts should look at pensions from a business perspective rather than just a pension one. 2) The Netherlands has not fully utilized the possibilities of the EU Pensions Directive like Belgium has. 3) Dutch innovations have been stalled by prioritizing own interests over customers' needs. It argues there is a business case for new structures like the Premium Pension Institution and that defined contribution plans can be sustainable alternatives if risks are properly managed. It concludes the Netherlands should stop developing its own pension vehicle and instead utilize alternatives like Belgium's model or a global pension captive.
A New Arrow for The Pension Practitioners Quiver: Pension Risk TransferJay Dinunzio
Webinar Presentation Slides
Gone are the days of group annuity contracts only being able to satisfy the plan termination objectives of a pension plan sponsor. Today, there are a wide variety of useful applications for guaranteed institutional annuity contract structures to provide an alternative to traditional fixed income investments. Are you or your pension clients:
•Struggling with cost and volatility issues surrounding a defined benefit pension plan?
•Considering a liability driven investment strategy that will de-risk the plan investment and allow for stable, predictable funding?
•Limited by fixed income funds that only allow for simple duration matching, and expose the plan to cash flow mismatch risks?
•Unaware of the variety of customized institutional insurance contract structures available?
•Lacking a fiduciary process for evaluating and monitoring the attractiveness of insured pension solutions?
This document discusses continuity planning challenges for supermarkets with legacy systems from acquisitions. It notes that successful acquisitions have spread operations across brands and countries with limited management attention to continuity. Efforts to identify continuity risks for each process grind to a halt after mapping a few. The legacy of acquisitions makes guaranteeing service levels difficult due to a patchwork of legacy IT systems. Supermarkets need to value continuity and propose a blueprint to rationalize legacy systems to make service level guarantees cost-effective.
Riskpro is an Indian risk management advisory and consulting firm with offices in multiple major cities. It offers a wide range of governance, risk, and compliance (GRC) services to mid-large sized corporate and financial institutions. Riskpro's team has over 200 years of cumulative experience in risk management consulting and internal audits. It provides quality advisory services at competitive rates using a hybrid delivery model combining client staff and its own experts.
Riskpro is an Indian risk management advisory and consulting firm with offices in multiple major cities. It offers a wide range of governance, risk, and compliance (GRC) services to mid-large sized corporate and financial institutions. Riskpro's team has over 200 years of cumulative experience in risk management consulting and internal audits. It provides quality advisory services at competitive rates using a hybrid delivery model combining client staff and its own experts.
Riskpro India Ventures provides integrated risk management consulting services including fraud risk management. It has offices in major Indian cities and alliances in other cities, managed by experienced professionals. Riskpro aims to provide quality advisory services typically offered by large firms, but at more affordable prices than large firms. It focuses exclusively on risk management and has over 200 years of cumulative experience. Services include fraud investigations, anti-fraud programs, compliance, and forensic audits.
This document discusses measuring and improving project team health. It introduces Kym Williams and her experience in infrastructure and local government. The presentation will provide tools to diagnose and report on project health by measuring team engagement. Regular diagnostics can identify issues, track progress, and inform a high performance plan. Surveys and reports can evaluate different levels from the board to individuals. The goal is effective collaboration, role clarity, and focusing on outcomes and challenges.
This document discusses measuring and improving project team health. It introduces Kym Williams and her experience in infrastructure and local government. The presentation will provide tools to diagnose and report on project team health to identify issues and drive improvement. Regular surveys and reports can measure engagement, collaboration, and focus on outcomes. Addressing weaknesses revealed can help achieve objectives like effective collaboration and risk management. Diagnostics link to high performance plans with actions tailored to project stages.
This document outlines a crime thriller/action thriller film plot involving a drug kingpin in Manchester. The opening sequence will start with police pursuing the last member of a gang for information on the kingpin's hideout. This will grab audience attention and keep them watching to see the resolution. The introductions will allow audiences to relate to main characters and understand the hybrid genre. Some characters will be represented stereotypically as either heroes or villains. The opening aims to set an exciting tone for the entire film through high-octane action to maintain audience interest.
Peach Edutab is a revolutionary Android based tablet designed specifically for highly immersive and simulation based learning experiences. The patented design includes specifically build hardware that renders high end 2D and 3D animation to bring a rich learning experience to the students.
We are partnered with some of the leading publishers to blend content specific to K12, Engineering and Business studies.
A course in organizational behavior would help relieve Kritika's stress and make her a better manager by teaching her how to analyze her company's environment, adapt to changes, and manage people effectively. The professor discussed environmental challenges to emphasize the importance of understanding external factors. A course in organizational behavior focuses more on managing people and organizational dynamics, unlike accounting/finance/marketing courses which have a narrower business focus.
The candidate learned the following from audience feedback on their music video, magazine advert, and digipak:
- Most of the audience preferred a music video shot in a variety of locations rather than the same location. They felt the black and white style was effective but some color may have improved certain parts of the video.
- Feedback on the magazine advert and digipak was mostly positive, though some felt the video and packaging could be improved in aspects like lighting, close-ups, and screen dimensions.
- Ratings of the video, advert and digipak ranged from 5-10 on a scale of 1-10, with the highest ratings for the magazine advert and most room for improvement felt for
The document lists various media technologies used at different stages of a project, including YouTube, Blogger, Microsoft Office, and Google for research and planning. A Panasonic video camera and Samsung laptop were used for construction. Adobe Premiere Pro, Photoshop, and Fireworks were utilized for editing. Windows Movie Maker, Xtranormal, and Wordle were employed at the evaluation stage.
early detection helps ......................................................................................................................................................................................................................................................................................................
Calder began creating his miniature Cirque Calder circus in the late 1890s using wires, strings, rubber, cloth and other found objects. He was born into a family of artists and sculptors and studied mechanical engineering, living between France and the United States. Calder received influence from abstract European artists like Joan Miro, Jean Arp and Piet Mondrian and is known for his suspended mobile sculptures like "Floating Clouds" from 1953.
A girl sits alone with a plain, dull background setting a sad emotion. A boy sits alone with his head down, not facing the camera, showing he is in his own world and lonely. The pictures have dull, plain colors and angles that instantly convey the subjects' loneliness and sadness through their solitary poses and lack of interaction with their surroundings.
The G8 is a group formed in 1975 consisting of eight highly industrialized countries - France, Germany, Italy, the UK, Japan, the US, Canada, and Russia. The group meets annually at the G8 Summit to discuss global economic issues and security concerns. Membership has expanded over time from the original six countries (G6) to include Canada and Russia. The presidency of the G8 rotates annually among member countries. The G8 represents about 14% of the world population but 60% of global GDP. Critics argue it focuses only on industrialized nations and lacks representation from emerging economies like China and India.
O documento apresenta Fabrizio Mello e Guilherme Lacerda, especialistas em refatoração de banco de dados. Eles discutem o que é refatoração de banco de dados e como ela é importante para melhorar o design e a manutenção de dados ao longo do tempo, mantendo a semântica dos dados.
Este documento discute os perigos da internet e oferece conselhos sobre como navegar com segurança. Ele explica o que são sites, alerta sobre sites e e-mails duvidosos, e fornece dicas para pais sobre jogos online e apostas. O documento conclui que a internet é um mundo perigoso e é importante seguir regras de segurança ao navegar.
Acirfa es una empresa especializada en el transporte marítimo de contenedores, proyectos y mercancía rodada. Ofrecemos servicios tanto de importación como de exportación a todo el mundo: África, Asia, América del Sur, Oriente Medio, etc.
A empresa de tecnologia anunciou um novo sistema operacional para computadores pessoais. O novo sistema operacional tem uma interface simplificada e recursos aprimorados de segurança e privacidade para proteger os usuários. A nova versão será lançada globalmente no próximo ano e espera-se que seja bem recebida pelos consumidores preocupados com a segurança online.
This document outlines renovations made to the Super Micro Computer warehouse, print room, mail room, and offices from 2013-2014. Project Manager Lily Mao oversaw changes that included updating the warehouse, print room, mail room, and offices as seen in "before" and "after" photos of each area.
I. La economía estudia la administración de recursos limitados para satisfacer necesidades humanas.
II. La economía nació como una rama de la filosofía que se ocupa del estudio de los valores y juicios valorativos.
III. Aristóteles distinguió el valor de uso y el valor de cambio, y consideró que el precio debía ser justo para ambas partes.
This document provides an overview of concepts covered in a class on global project management. It discusses project partnering frameworks, key partnership practices, types of contracts, managing contract changes, classes of international projects, issues in international management, international assignments, environmental factors affecting projects, cross-cultural factors, and Hofstede's cultural dimensions framework. The class will cover cultural orientation, negotiating across cultures, and sustaining international partnerships.
The document discusses different approaches to software development contracts. It argues that traditional fixed-price contracts often lead to wasted effort from overly optimistic bids or excessive scope definition. Time and materials contracts put the customer at risk without proper controls. The document advocates for lean, progressive contracts that start with time and materials to establish trust, then move to fixed-price stages with continually negotiable scope beyond each stage. This allows risk to be borne appropriately and the relationship, rather than excessive controls, to limit opportunism for faster and better results.
The document discusses Bid Dynamics' services for improving bidding activities and proposal quality. It offers training workshops and services to help clients set quality standards, explain required proposal tasks, position the importance of bidding, and develop high quality proposals. The services also help clients qualify sales opportunities, develop a bidding strategy, plan proposal content and structure, write compelling documents and presentations, and review bids to learn and improve future proposals. The goal is to help all those involved in bids understand requirements and contribute effectively to successful proposals.
The document discusses Bid Dynamics' services for improving bidding activities and proposal quality. It offers training workshops and services to help clients set quality standards, explain required proposal tasks, position the importance of bidding, and develop high quality proposals. The services help ensure all bid contributors understand requirements, are effective members of bid teams, and act as agents of change.
The document discusses Bid Dynamics' services for improving bidding activities and proposal quality. It offers training workshops and services to help clients set quality standards, explain required bid tasks, position bidding in their sales strategy, and develop high quality proposals. The services help ensure all bid contributors understand requirements, are effective, and act as agents of change. They also review the bidding process, identify skills gaps, and design customized improvements.
This was a presentation delivered by Dr Jon Broome, chair of the APM Contracts and Procurements specific interest group (SIG), on Tuesday 7th October. The event was organised and hosted by the APM North East branch and was entitled 'Project contracts and how they support collaborative working'. It was held at the Radisson Blu hotel in Durham.
Procurement has evolved from a tactical, transactional function focused on short-term savings to a more strategic function focused on total cost of ownership and long-term value. Effective procurement requires categorizing spend, developing category strategies, and managing supplier relationships. Suppliers can engage more effectively with procurement by understanding the maturity level of the function, contributing to category management, building trust, and demonstrating how they can help address procurement's goals and challenges over the long run.
The document discusses services from Bid Dynamics to help improve bidding activities and proposal quality. It outlines training and workshops that help set ground rules for proposals, explain required tasks, position the importance of bidding, and develop high quality responses. It then details different aspects of bidding strategy the services can help with, including qualifying opportunities, developing strategy, planning proposals, writing content, and reviewing bids. The overall goal is to help all those involved in bids understand requirements and contribute effectively to successful proposals.
The document discusses services from Bid Dynamics to help improve bidding activities and proposal quality. It outlines training and workshops that help set ground rules for proposals, explain required tasks, position the importance of bidding, and develop high quality responses. It then details different aspects of bidding strategy the services can help with, including qualifying opportunities, developing a strategy, planning proposals, writing content, and reviewing bids. The overall goal is to help all those involved in bids understand requirements and contribute effectively to successful proposals.
The document discusses services from Bid Dynamics to help improve bidding activities and proposal quality. It outlines training and workshops that help set ground rules for proposals, explain required tasks, position the importance of bidding, and develop high quality responses. It then details different aspects of bidding strategy the services can help with, including qualifying opportunities, developing strategy, planning proposals, writing content, and reviewing bids. The overall goal is to help all those involved in bids understand requirements and contribute effectively to successful proposals.
“An ably led, well defined, pragmatic, measured, and adequately funded enterprise-wide Data Risk Management (DRM) program is not an executive prerogative; it is a tacit mandate from the shareholders for the very survival of a business in today’s data-driven economy.
Willis Mergers & Acquisitions PracticeWillis Group
This document discusses Willis' mergers and acquisitions capabilities for insurance due diligence. It outlines Willis' value proposition including their experience conducting over 5,000 transactions across industries. It then describes Willis' due diligence process, which goes beyond just reviewing insurance products to analyze financial, legal and risk management exposures. The rest of the document provides more details on Willis' approach to conducting pre-closing due diligence for areas like property & casualty, employee benefits, and developing transactional solutions.
Making the shift – Moving from transactional serviceFabio Aguiar
The document discusses how businesses are shifting from viewing outsourcing providers as transactional service providers to partners that can help transform entire end-to-end business processes. It argues that outsourcing providers need to move beyond simple labor arbitrage by developing expertise in specific industries and business functions. This allows them to help clients optimize processes, drive better business outcomes, and unlock 2-3 times more value than traditional cost savings approaches alone. Taking an end-to-end view of processes across functions and using insights from data analytics are presented as key to continuously improving effectiveness and efficiency.
The document discusses different approaches to pricing outsourcing deals. It argues that pricing is often disconnected from risk and value, leading to suboptimal solutions and performance. The document recommends defining risk through service level agreements and using a pricing model that balances value and risk, such as gain/risk sharing or fixed pricing plus variables. This approach provides clearer communication, better solutions, and greater profits for both clients and service providers.
APMP Foundation: Winning Price DevelopmentBid to Win Ltd
This document discusses developing strategy for winning price targets in proposals. It covers understanding the difference between value and price, examining the development of sound business cases, learning how to work with others to set cost targets, analyzing competitors and customers to establish winning price targets, and building up to the winning price by considering what the prospect values, their budget, the target price, solution costs, competitors' prices, and the winning price. It emphasizes that showing value is important to win when displacing incumbents, changing processes, or when doing nothing is a viable alternative. It provides guidance on establishing value propositions, setting cost and price targets, using top-down and bottom-up approaches together, and positioning prices relative to competitor value in
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Agency remuneration and compensation models are under pressure with a focus from procurement on marketing budgets. There are basically four types of agency remuneration being 1. Spend based (commissions) 2. Cost based (Head hours, overheads and profit multiples) 3. Output based (Pricing and fixed fee) 4. Outcome based (Performance payments and profit sharing). The last two are increasingly used together in a Value Based Compensation model which fixes the base fee for the agency's outputs and rewards the agency based on performance. This presentation provides an overview of the various advertising agency compensation models and provides guides and consideration to choose the right model for you.
1. The document discusses various models for compensating marketing agencies, including commission/service fees, resource package fees (retainers), variable fees based on hours, and project fees.
2. It argues that the trend is moving from input/cost-based models like commissions to output/value-based models that reward agencies based on outcomes rather than volume of work.
3. Principles for fair agency remuneration include aligning advertiser and agency interests, basing agreements on understood terms and review dates, and ensuring flexibility over time.
1. The insurance industry has principles of transparency but relationships between insurers and restoration contractors are often inconsistent and unclear.
2. Major issues include unclear pricing, ineffective processes, inexperienced adjusters, and personal relationships driving business over quality and capabilities.
3. Both parties need to better understand each other's needs and requirements to build a more transparent and consistent relationship focused on policyholders.
This document provides an overview and agenda for a seminar on contract strategy. It discusses developing a contract strategy by considering risk allocation and different types of contracting approaches. It covers price-based approaches like bills of quantities and schedules of rates as well as cost-based approaches like cost reimbursable contracts. The seminar aims to provide knowledge of different contract strategies and when each may be appropriate. It also discusses developing a procurement process and principles of risk allocation and sharing.
Expense Reduction Analysts is a company that helps organizations reduce costs and increase profits through expense reduction programs. They have expertise in over 100 supply areas and can typically achieve average savings of 19.7% for clients. They work with clients to identify high-impact cost areas for review and produce reports analyzing savings opportunities without disrupting business operations. If savings are identified, clients can choose whether to retain existing suppliers or make changes.
Similar to Cipsa Obtaining Value For Money On Service And Operational Contracts (20)
Cipsa Obtaining Value For Money On Service And Operational Contracts
1. Obtaining Value for Money on Service
and Operational Contracts for
Large Infrastructure Projects
CIPS Australasia
24 November 2011
Results through Experience
2. Kym Williams
Prior to establishing Business + Risk Solutions, Kym was
General Manager of SA and WA for an international engineering
and environmental firm. Kym also held senior management
roles in Local Government across two councils in Adelaide,
where he managed a range of commercial and governance
portfolios. Worked in a Big 4 consulting firm for a period of
time.R
Areas of focus
Collaborative Contracting
Commercial & Procurement
Project Governance
Organisation & Process Improvement
Leadership, Team & Culture
Results through Experience
3. Session Focus
Contracting as a relationship
Cost Sensitive vs Budget Sensitive
Procurement Planning
Key Stages
Balancing Risk and Reward
Key Contract Clauses
Practical Examples – To achieve value for money
Summary
Results through Experience
4. Contracting is just another relationship
Effective relationships are not one way. They are mutually beneficial.
Can you imagine approaching a friendship, employee or marriage in the
way we sometimes approach our service providers?
Results through Experience
5. The two keys to an effective relationship
1. Tell others what you think, feel and want
2. Ask others what they think, feel and want
Most contracting is focussed on suppressing the other party - MASTER
SERVANT.
It becomes a two way process of supressing the other party to protect
ourselves, but in doing so we both pay a price.
Results through Experience
6. Constructive approach to contracting
We can deliver great outcomes and mutually benefit
MASTER SERVANT – My needs
I win you lose. are sub-servant to
yours.
Costs: Costs:
- Energy spent by both - Focused on keeping
sides protecting one-self people happy, not
rather than outcomes. delivering outcomes.
- Short term relationship – - Focus on following
high cost of re-tendering processes and rules, not
and contract delivering outcomes.
administration. - Slow to make decisions.
- Excessive internal - Don’t speak the kind
processes in place to truth. Leave landmines
manage ‘perceived’ risk. for another day or project.
Results through Experience
7. Benefits of a Win/Win Approach
Service Providers Organisation
Greater profit certainty. Greater value for money.
Reduced contracting costs. Reduced contracting costs.
Reduced risk and certainty. Reduced risk.
Repeat work and long term opportunities. Achievement of outcomes for
stakeholders and value for money.
Results through Experience
8. Costs of a Win/Lose Approach
Direct Costs Hidden Costs
Legal Disputes + Contract Disputes. Contract Administration – Adversarial nature
costs in time, money, energy and
responsiveness.
Tender Costs – Consultants, Probity etc. Opportunity Costs – What could we be doing
with time, money energy etc.
Quality of Work – Defects, Rework, Time to market and responsiveness – Delays
Preventable landmines in initiating works, getting works completed,
responding quickly to issues
Contractors pricing in hidden margins and Internal Labour Costs – Often overlooked
over-recoveries within contract price.
Contracts pricing in contingency and risk Cost creep on contract supervision – Internal
within contract price. labour growth
Results through Experience
9. Cost Sensitive vs. Budget Sensitive
Cost sensitive is focusing on lowest price, but ignores quality,
innovation, risk.
Budget sensitive is focusing on keeping cost within budget, but ignores
risk and cost.
Value for Money
Focusing on getting the right outcome for the right price.
Balancing quality, innovation, risk and reward depending on nature of
service.
Horses for courses approach. Sometimes about lowest price, other
times about innovation or quality or risk mitigation.
Results through Experience
10. Procurement Planning
Method When
FIXED Scope, responsibilities, risk allocation, and cost allocation is
Lump Sum clear, and there is a competitive market for these services.
Fixed Price
Design & Construct
VARIABLE Scope is unclear. I.e. feasibility work, consulting reviews, etc.
Schedule of Rates
Time + Materials Service is low value, low risk. I.e. painting, administration etc.
OUTCOME BASED Service is complex, and council does not have skills to
Performance orientated supervise contractor. Pay on performance of outcomes which
contract are measurable.
Pain / Gain
Bonus or Retention Service has high value to community. I.e. waste, major
infrastructure, health (i.e. nursing home, hygiene) etc.
Results through Experience
11. Fixed Price Arrangements
Fixed price arrangement contracts have their place when we know
exactly what we want.
Contractors are generally skilled at managing their commercial risk.
They do this by:
Qualifiers, assumptions and disclaimers – i.e. making certain
things exclusive from the fixed price.
Scope creep + variations – charging variations for changes in
scope, even minor.
Rise + Fall – building rise and fall adjustments into contractors for
highly volatile costs such as fuel, labour, imports etc.
Results through Experience
12. Recognising Transaction Costs
There is a cost of buying stuff.
There are ways of meeting probity and open competition requirements
without high costs of procurement.
These include:
Appropriately designed procurement framework which is pragmatic in
risk profile of goods and services that balances risk and reward.
Panels.
Collaborative purchasing
Procurement planning. Matching right procurement method to nature
of purchase.
Results through Experience
13. Key Stages
Condition of
Scope Commercial Contract
Contract and
Development Alignment management
RFT
80% 20%
Procurement planning - choosing the procurement method
Risk and Cost Allocation Table
Defining Key Result Areas and Key Performance Indicators
Defining Evaluation Criteria
Designing Contract Pricing Approach, Tender Forms + Conditions of
Contract
Commercial Alignment
Results through Experience
14. Key Stages -
Creating the right expectation from the start
Scope Condition of Contract Commercial
Development and RFT Alignment
80%
Designing the right commercial conditions from the start into the contract
Good conditions that lead to transparency
Results through Experience
15. Designing Contracts for Optimal Performance
Incentivising contractor behaviours – Aligning commercial incentives
with achieving contract outcomes.
Allocation of risk – Ensure best party manages the risk to reduce total
(internal + external) cost of managing contract.
Alignment of contract price with service providers cost structure –
reduces inefficiency, over-recovery of overheads, and super margins.
Results through Experience
16. Commercial Alignment
Workshop with shortlisted tenderers
Builds rapport, trust and respect
Clear expectations upfront
Transparency and openness
Appropriate risk allocation
Results through Experience
17. Incentivising Contractor’s behaviour
Alignment of mutual interests- Win/ win approach
What does organisation want? What do service providers want?
Outcomes
Mutual interest Profits
Key Result Areas
Key Performance Indicators
Commercial Incentives
Remuneration
Results through Experience
18. Risk Allocations- Balancing Risk & Reward
Are you getting the balance
right between risk and reward?
Is risk aversion driven by
personal risk or
organisational risk?
Does the commercial model
match the desired
outcomes and key risks?
Who can best manage the
risk – you or the contactor?
Results through Experience
19. Risk Allocation Table in RFT
Example for a Waste Management Contract
Risk Allocation Table
Item Council Contractor
Vehicles, Plant and Equipment-
☐ ☒
Assist the consultant in being
Acquisition
Vehicles, Plant and Equipment-
clear about responsibilities Maintenance ☐ ☒
Vehicles, Plant and Equipment-
Ensures the contractor doesn’t Depreciation and Amortization ☐ ☒
build any contingency into the Labour+ On Costs
Vehicles, Plant and Equipment- Fuel+
☐ ☒
price or at least minimises this Oil
☐ ☒
occurring
Insurance requirements
- Public liability
☐ ☒
- Vehicles Plant and Equipment
Ensures expectations are clear - Workers Compensation
Manage Complaints and Enquiries ☒ ☐
Customer Satisfaction Surveys ☒ ☐
Results through Experience
20. Contract Price -Getting Value for Money
Variable Costs Recovered
Contract price Fixed Costs Recovered but not over-
recovered
Profit Fair and reasonable
Commercial Efficiency & VFM
• Recognise contractors need to make a profit
• Link contract price and variations to contractors cost structure
• Reduces risk + contingency for contractor
• Removes hidden margins for council
• Openness and transparency
Results through Experience
21. Labour Driven Contract
Labour Costs Raw Labour Rate
Salary On Costs
Labour Multiplier Corporate Overhead (100 % of
Fixed Costs
all firms non direct labour costs)
Total Rate
Multiplier = -------------------------- Profit Between 5 and 15 %
Raw Labour Rate
Between 2.0 and 3.0
Other Variable Materials (paint, cable etc.)
Costs (Re- Sub Contractors
imbursables) Travel
Results through Experience
22. Equipment Driven Contract (i.e. waste)
Raw Labour Rate
Operator Costs
Salary On Costs
Depreciation (Purchase price – WDV) /
Operational useful life
Fuel + Oil Rise + Fall implications
Multiplier Wear Items GET, Tyres
Maintenance
Fixed Costs Corporate Overhead (100 % of
all firms non direct labour costs)
Profit
Other Variable Dump fees, processing fees
Costs (Re-
imbursables)
Results through Experience
23. Some key contract clauses
Key Personnel - Ensure that the team you are seeing from
consultants are the ones that are going to do the work.
Approved Personnel - Ensure the consultant will only charge for
people that have been approved by client.
Project Reporting on monthly basis - Ensures that there is
transparency over the projects performance and that Client are kept
informed at all times
Sub-contractors - If it is necessary to use sub-contractors, the
consultants needs clients’ prior written approval – no hidden mark-
ups.
Results through Experience
24. Some key contract clauses
Direct Project Expenses - All direct project expenses passed
through at cost with no margins and multipliers.
Good Faith - Obligation on the parties to co-operate in achieving the
contractual objectives and a duty to act honestly.
Insurances - At a level that the Contractor can justify that there is
acceptable residual risk remaining with the Client.
Force Majeure – Manages risk in an event beyond Council control.
Right to audit – Ability to audit contractors books and ensure
transparency.
Results through Experience
25. Practical examples
Eligible for Other
travel obligations Overhead Total
Base Rate
Position allowances Salary On ($/hr) or Margin Rate$/hr
Service Name
Held
Employer (describe – ex Super
Cost ($/hr) Multiplier (%)
(Yes/No) costs (see ($/hr) (ex GST)
(see q.2) (see q.1)
q.3)
Add more rows were necessary
Results through Experience
26. Questions
1. Provide specific details on the basis for calculating travel allowances:
2. Provide specific details on the basis for calculating other obligation costs:
Results through Experience
27. Questions
3. Identify number of hours per year on which the hourly rates are calculated:
4. Overtime and afterhours rates:
Identify which personnel are eligible for overtime and afterhours payments. Provide details of the
overtime policy and the relevant rates. Ensure that overtime and afterhours rates only include the actual
rates paid to staff and consultants as well as any on-costs incurred. It will not include reimbursement of
the overhead costs included in the multiplier which are already recovered during the course of the
normal hours undertaken. Provide a copy of its overtime policy
Results through Experience
29. Summary
A two way relationship
The key is to deliver a win/win arrangement for both the
organisation and the service providers
Focus is on the risks, outcomes and results you are looking to
achieve
Requires good planning up front
Strong alignment will increase the probability of success on your
projects
Need to ensure you design it in to your contracts up front rather
than implement after the event
Results through Experience