This document provides an overview of developing commercial acumen as a business leader. It discusses the importance of understanding key cost drivers and business relationships. Commercial acumen involves thinking like a business owner and ensuring decisions align with strategy. The document recommends leaders embed commercial skills at all levels by promoting cost ownership and transparency. It also suggests focusing commercial training on understanding full costs, procurement strategies, and designing commercial conditions. Finally, it discusses the roles of finance, line management, and commercial managers in jointly developing effective commercial management.
Select our Price Optimization PowerPoint Presentation Slides to make pricing decisions for your business. Product cost management PowerPoint complete deck contains slides such as key levers to cost management, levers to achieve successful cost optimization, strategic cost optimization framework, prioritizing, three steps approach, initiatives and benefits, cost optimization techniques, planning, stages in cost reduction, cost-cutting and management, cost design and positioning, comparison of stages, etc. The goal of price optimization is to adjust consumer prices without putting profits at a risk. These templates are completely editable. The presenter can change font, text, and color. Pricing and revenue optimization PPT presentation also contains additional slides like mission, puzzle, timeline, target, idea pie chart, bar graph, area chart can help you elaborate cost optimization plans. Download this cost optimization presentation graphics to present pricing research and optimization. Create infrastructure for a health existence with our Price Optimization Powerpoint Presentation Slides. Be able to address inhuman conditions.
This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:
http://flevy.com/browse/business-document/cost-reduction-primer-650
The Spend Reduction framework is a detailed guide for conducting an Enterprise Cost Reduction project. The objective of this document is to describe and provide guidance around the approach and practices applied on spend reduction engagements.
- What is Spend Reduction: Spend reduction involves reducing operating expense on purchased goods and services through demand management, strategic sourcing, and procurement-related tax minimization. It also addresses the importance of a well-designed procurement function to achieving and sustaining spend efficiencies.
- How much does it save, how fast, and how many times have we done it: Spend reduction can lead to significant cost savings typically in the range of 10-25%. It usually identifies a mix of short and longer term cost reduction opportunities.
- How comfortable are we with existing content: Developed content has been reviewed and approved by SMEs. Additional content, potentially in a stand alone document, should be developed to outline techniques and practices specific to optimization of employee benefits.
Select our Price Optimization PowerPoint Presentation Slides to make pricing decisions for your business. Product cost management PowerPoint complete deck contains slides such as key levers to cost management, levers to achieve successful cost optimization, strategic cost optimization framework, prioritizing, three steps approach, initiatives and benefits, cost optimization techniques, planning, stages in cost reduction, cost-cutting and management, cost design and positioning, comparison of stages, etc. The goal of price optimization is to adjust consumer prices without putting profits at a risk. These templates are completely editable. The presenter can change font, text, and color. Pricing and revenue optimization PPT presentation also contains additional slides like mission, puzzle, timeline, target, idea pie chart, bar graph, area chart can help you elaborate cost optimization plans. Download this cost optimization presentation graphics to present pricing research and optimization. Create infrastructure for a health existence with our Price Optimization Powerpoint Presentation Slides. Be able to address inhuman conditions.
This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:
http://flevy.com/browse/business-document/cost-reduction-primer-650
The Spend Reduction framework is a detailed guide for conducting an Enterprise Cost Reduction project. The objective of this document is to describe and provide guidance around the approach and practices applied on spend reduction engagements.
- What is Spend Reduction: Spend reduction involves reducing operating expense on purchased goods and services through demand management, strategic sourcing, and procurement-related tax minimization. It also addresses the importance of a well-designed procurement function to achieving and sustaining spend efficiencies.
- How much does it save, how fast, and how many times have we done it: Spend reduction can lead to significant cost savings typically in the range of 10-25%. It usually identifies a mix of short and longer term cost reduction opportunities.
- How comfortable are we with existing content: Developed content has been reviewed and approved by SMEs. Additional content, potentially in a stand alone document, should be developed to outline techniques and practices specific to optimization of employee benefits.
This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:
http://flevy.com/browse/business-document/business-case-development-framework-199
The Business Case is an instrumental tool in both justifying a project (requiring a capital budgeting decision), as well as measuring the project's success. The Business Case model typically takes the form of an Excel spreadsheet and quantifies the financial components of the project, projecting key metrics for making any important business decision: Net Present Value (NPV), Return on Investment (ROI), Payback Period, Cost of Investment.
If a project has been justified by the Business Case (both financially and non-financially) and receives the go-ahead from executives, the Business Case model is then continuously maintained and adjusted to track the project?s progress against the initial financial projections and assumptions. This model then becomes a working document used during the project management process.
This toolkit will detail the process of creating a robust Business Case. It also includes a working sample Business Case model (in Microsoft Excel).
The business case is usually presented by senior executives within the organization to an identified business sponsor. It is the first document used in the project lifecycle and, once approved, allows the project to be formally defined.
While writing a business case, it may be required to undertake a formal feasibility study. This process involves a more detailed evaluation of the current business problem or opportunity, the different-different solutions available, the probability of a successful implementation for each solution, and the recommended best solution for implementation. The feasibility study provides a business case with more suitable solution options.
The business case is frequently referred to during the project development cycle. At each quality review point, the business case is used to determine whether or not the benefits, costs, risks, and issues prevalent match those listed in the business case.
Tips on selecting metrics for sales incentive plan design purposes.
Use of quantitative and qualitative measures.
Impact of pay communication on sales employee engagement, and use of performance management and employee appraisal as a channel for these conversations.
You’re probably reading this article because you want to know how to write a business case. Perhaps your organization is embarking on a major project to develop a new product. Or, perhaps you’re thinking of moving house so your family can enjoy a better life. In either case, you write a business case to ensure the investment is worthwhile.
Sales compensation expert Mike D’Amico, VP of Human Resources at Stratford managers shares his deep experience in implementing successful sales compensation programs.
Exploring a representative case study, you will learn how to assess your organization's readiness to implement a sales compensation program. You’ll then get practical tools to help launch a pilot program and transition sales staff into an effective program.
What makes a business model viable? How to move it from viable to great? What are the key metrics to analyze business model performance? How and when should you decide to change your business model? How to manage the transition?
This Masterclass is used to provide an introduction to the world off multi-national consulting, problem solving, client relationship skills and project management for first year post MBA Associate Consultants. We have used this introductory module and others in the series to help McKinsey, BCG, Deloitte and KPMG in Africa, China and Australia bring their new hires up to speed
Most procurement plans establish targets to be delivered over a number of years, and indeed most of the effort in the current year will not achieve maximum returns until future years Procurement. But there is still a target to deliver this year, and due to unforeseen circumstances you many need find benefits that will count towards this year’s targets.
Whether you're managing your own business or working for a Fortune 500 company, Business Strategy is integral to your company's success. More Info At : http://learnppt.com/powerpoint/58_Business-Case-Development-Toolkit-with-Excel-model.php
This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:
http://flevy.com/browse/business-document/business-case-development-framework-199
The Business Case is an instrumental tool in both justifying a project (requiring a capital budgeting decision), as well as measuring the project's success. The Business Case model typically takes the form of an Excel spreadsheet and quantifies the financial components of the project, projecting key metrics for making any important business decision: Net Present Value (NPV), Return on Investment (ROI), Payback Period, Cost of Investment.
If a project has been justified by the Business Case (both financially and non-financially) and receives the go-ahead from executives, the Business Case model is then continuously maintained and adjusted to track the project?s progress against the initial financial projections and assumptions. This model then becomes a working document used during the project management process.
This toolkit will detail the process of creating a robust Business Case. It also includes a working sample Business Case model (in Microsoft Excel).
The business case is usually presented by senior executives within the organization to an identified business sponsor. It is the first document used in the project lifecycle and, once approved, allows the project to be formally defined.
While writing a business case, it may be required to undertake a formal feasibility study. This process involves a more detailed evaluation of the current business problem or opportunity, the different-different solutions available, the probability of a successful implementation for each solution, and the recommended best solution for implementation. The feasibility study provides a business case with more suitable solution options.
The business case is frequently referred to during the project development cycle. At each quality review point, the business case is used to determine whether or not the benefits, costs, risks, and issues prevalent match those listed in the business case.
Tips on selecting metrics for sales incentive plan design purposes.
Use of quantitative and qualitative measures.
Impact of pay communication on sales employee engagement, and use of performance management and employee appraisal as a channel for these conversations.
You’re probably reading this article because you want to know how to write a business case. Perhaps your organization is embarking on a major project to develop a new product. Or, perhaps you’re thinking of moving house so your family can enjoy a better life. In either case, you write a business case to ensure the investment is worthwhile.
Sales compensation expert Mike D’Amico, VP of Human Resources at Stratford managers shares his deep experience in implementing successful sales compensation programs.
Exploring a representative case study, you will learn how to assess your organization's readiness to implement a sales compensation program. You’ll then get practical tools to help launch a pilot program and transition sales staff into an effective program.
What makes a business model viable? How to move it from viable to great? What are the key metrics to analyze business model performance? How and when should you decide to change your business model? How to manage the transition?
This Masterclass is used to provide an introduction to the world off multi-national consulting, problem solving, client relationship skills and project management for first year post MBA Associate Consultants. We have used this introductory module and others in the series to help McKinsey, BCG, Deloitte and KPMG in Africa, China and Australia bring their new hires up to speed
Most procurement plans establish targets to be delivered over a number of years, and indeed most of the effort in the current year will not achieve maximum returns until future years Procurement. But there is still a target to deliver this year, and due to unforeseen circumstances you many need find benefits that will count towards this year’s targets.
Whether you're managing your own business or working for a Fortune 500 company, Business Strategy is integral to your company's success. More Info At : http://learnppt.com/powerpoint/58_Business-Case-Development-Toolkit-with-Excel-model.php
Next Generation Approaches: Why Smart Buyers should Abandon the Traditional A...EightyTwenty Insight
The traditional approach to sourcing, involving only a cursory look at the overall strategy before diving into the transaction (build or buy), is now being recognised as not being ‘fit-for-purpose’. This presentation looks at the new drivers for change, and provides some tips on how to move forward.
For more information, please go to www.8020i.co.uk .
“Good SHE Is Good for Business” How many times have we heard that phrase being used? And how many times have we been told that tmoney is not available, or before money is made available to show the return on investment (ROI) for SHE projects? We all know that in reality "production comes first” and without production we would have no employment. This does not mean that employers do not care about the welfare of their employees, but when finances are tight often becomes harder to justify SHE projects.
This presentation addresses some common issues facing the SHE Professional while attempting to integrate the SHE functions into the core business. This includes:
• Identifying and using core business drivers for leverage
• Establishing a vision and Strategy that is aligned with the business direction
• Selling and marketing this vision throughout the organization
• Providing leadership within the organization to create business opportunities
• Building real business metrics and communication strategies
• Measuring and communicating the results
Presentation of Theo Slaats, partner at Deloitte, on "Pricing technology as enabler for impacting business and bottom-line" at the Vendavo Pricing seminar on October 28, 2009 in Brussels.
Following Details,
1) Different cost management strategies - Target costing, Kaizen costing, life cycle costing
2. Activity based management
3. Balance scorecard and its significance as a performance measurement techniques
4. Performance measures for decentralized unit
"Reinventing Business Basics:Staying Nimble in Any Business Economyselipkin
Presented at the Women in Business Empowerment Workshops on February 9th, 2010 by Sarah Lipkin and Nancy Kappler-Foster of SCORE. Content Created by Sarah Lipkin.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
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This article provides a comprehensive guide on how to
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Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
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Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
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Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
1. How to strategically evaluate
commercial opportunities as a
business partner and decision maker
Kym Williams
www.thebrsblog.com
www.brsresults.com
Email enquiries@brsresults.com for presentation slides & content
2. Session Overview
The importance of commercial acumen and how this skill is
critical for any leader within an organisation
How to understand your key cost, business and revenue drivers
and how to utilise this information in making better
commercial decisions
What commercial skills executive, operations and management
personnel are seeking from financial business partners
What commercial acumen is and isn’t and how it differs from
financial skills.
5. What is commercial acumen?
Being able to think like a business
owner or a CEO when making decisions
Having an understanding of the cost drivers
on your business
Ensuring your decisions are aligned to
strategy
Knowing how to achieve value for money
outcomes for your organisation
Understanding the importance of
developing strong business relationships.
6. Why is commercial acumen important?
Stakeholders expect greater value for money
and more from less
We all operate in a competitive environment
where we need to constantly improve
Organisations need to deliver commercial
outcomes
More commercial partnerships
Private sector and competitors more
commercially astute
Greater public scrutiny
Greater outsourcing of services
Greater project complexity.
8. Contract
management
Balancing Risk and Commercials
Are you getting the right balance
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 client?
9. Mindset is the key
You’ll never develop a culture of
cost consciousness unless:
Leaders take ownership of their
costs
They also understand the link
between commercial management,
procurement and cost
consciousness
Personnel at all levels have the skills
to manage costs.
10. Embed at all levels
There is a difference between financial and commercial acumen
Educate - Your technical and non technical staff on your
commercial practices and cost drivers
Explain the why – How we make our money and what costs
drive our business
Transparency – Be as open as possible about costs and
financial performance - Trust is key
Commercial acumen – Give people the skills to make the
right decisions.
11. Commercial training to…
Promote ownership of costs at all levels in
the business
Understand cost and profit drivers
Understand strategic priorities and where
to focus resources
Identify the full cost of labour and cost of
time
Correctly stage and scope projects, and
manage variations
Understand when to use different
procurement models
Understand contract pricing strategies
used by contractors
Design the right commercial conditions from
the start.
12. Three concepts management need to be clear on:
1. Efficiency and
effectiveness
2. Allocative efficiency
3. Cost Culture and
Accountability
13. Efficiency and effectiveness
Efficiency usually refers to technical or process efficiency, i.e.
the relationship between inputs and outputs
The more efficient of two processes will generate more
outputs for the same inputs (i.e. lower unit cost), or use less
resources to produce the same outputs, which means lower
unit costs and also that it is cheaper in absolute terms as well
Effectiveness = the ability to satisfy the needs of the client.
14. Allocative efficiency
Are your resources being
used towards the most
important goals?
The ability to respond to
the changing needs of
the market by applying
resources and effort to
address these needs in a
timely and efficient
manner.
15. Cost Culture and Accountability
Management must be able to show their
proficiency in managing costs
Show they are diligently making every
possible effort to reduce costs, and not
simply avoiding the hard work and
expecting clients to foot the bill
Role model this behaviour across their teams
Cost control should be embedded as a process and a ‘way of
life’. Constant focus on the 1 %. Continuous improvement as
opposed to reactive.
16. Understanding your costs
Leaders need the tools to play their role
Knowledge
What are the major costs?
e.g. Salaries, Contracts, Plant & Equipment, Consumables/Fuel etc.
What drives the major costs?
e.g. Head count, contract scope, asset utilization, etc.
Systems, Processes and Structures
Produce forward estimates
Present current year data in context – past performance & forward estimates
Monthly Cost Review Meetings
Structured approach to cost review meetings
Actions and accountability documented & tracked.
17. What are your top three costs?
0%
10%
20%
30%
40%
50%
Wages & Salaries Depreciation Waste Management
Contract
19. Contract Costs
Commercial Efficiency & VFM
Recognise contractors need to make a profit
Links contract price and variations to contractors cost structure
Reduces risk + contingency for contractor
Removes hidden margins for council
Openness and transparency
Contract price
Variable Costs
Fixed Costs
Profit
Recovered
Recovered but not over-recovered
Fair and reasonable
21. Cost Reduction Programs
Set targets for all management team:
Communicate the bigger picture and the end result
Make necessity the mother of invention – the burning platform!
Focus on top 3 costs and implement cost controls measures
linked to cost drivers
Annual program of service and cost reviews
Monitor progress and act where necessary
Account for effort and outcomes
Engage staff
22. Set a target
Targets focus attention and effort
Set a target for annual savings in operating
expenses e.g. 3% annually
Target should be meaningful, challenging and
relevant
Twelve month change in prices (2011/12)
Adelaide CPI 2.6%
Local Government Price Index 3.7%
23. Focus on Top 3 Costs
Top 3 costs cut
across functions
and apply to all
managers
24. Supplement efforts by focusing
on specific activities or functions
Agree a prioritised program with
Audit Committee or governance
function
Driven by commercial outcomes
Focussed on driving towards
your targets.
Agree an annual program
of service and cost reviews
26. Publish forward estimates of costs and revenues
Use the forward estimates to set annual budget and
business plan targets
Cost management must be a standing item on
agendas for leadership team/management team
meetings.
Monitor costs and report progress
31. Understanding which costs can be
removed and streamlined from the
business without impacting long term
success
32. Areas to target
Overheads – needs to be right sized to size of business – average
revenue and benchmark information is matched against actual.
Understand fixed vs. variable costs. Ideally make overheads variable
where possible/ efficient.
Centralisation of functions – streamline duplication in all areas.
Large operating contracts – mandatory vs desirable scope
definition – reduce $.
Outsourcing non-critical activities – what can be done better
outside of the business?
Compliance activities – what is really necessary? Be practical,
use common sense.
Risk Appetite - consider stakeholders appetite for risk.
33. Areas to target
Lean – do we really need to do this? Does it add value or is it just
comfortable? Challenge the norm!
Capital expenditure – is it truly aligned to our goals and targets?
What is must have?
Contractors – remove but ensure you are still flexible for the
future.
You still need to invest for the future – but on those items that are
critical.
Technology opportunities – significant and often untapped.
Consider JV arrangements for key areas rather than staffing up.
DO LESS – CHALLENGE BEING BUSY! SIMPLIFICATION! LESS IS MORE!
34. 1. What business are you in? What business are you really in?
2. What business will you be in the future, based on the current trends?
3. Who is your customer? Your ideal customer? Your perfect customer for
what you offer? Link to ratepayers.
4. What does your customer consider as value?
5. What do you do especially well commercially?
6. What are your cost drivers? Commercial targets?
7. What are the constraints on your business today?
8. What are the 20% of the activities that can account for 80% of your
commercial results?
9. Based on your answers to the above questions, what commercial plan of
action should you take immediately? What should you do now? Link to
procurement planning?
Get back to first Principles?
36. How are we seen externally?
Finance Teams generally seen as very introverted and compliance focused
by Business Leaders?
Number of reasons for this:
A large volume of finance work by necessity is compliance based.
Finance people can feel more comfortable with task rather than people.
Finance workloads are every increasing with frequent changes to internal systems and
regulatory requirements.
Competing demands - Challenge for finance personnel to be technically competent as
well as have strong business partnership and commercial skills.
37. Finance Skills vs Commercial
Finance
Tax
Statutory Reporting
Audit
System Governance
Internal Controls
Consolidation
Finance Systems
Management Reporting
Budgeting
Commercial
Contract Negotiation
Contract Reviews
Business Analysis
Business Case Development
Cost Reviews
Planning / Forecasting
Business Performance Scorecards
Performance Improvement
Project Management
Executive Advisory
Change Management/ Influencing
39. 3 Pillars of Finance Function
Compliance
Ensures you comply with
financial reporting, Tax,
audit, and corporate
governance requirements.
Need to be strong
technically.
Critical function in building
trust with stakeholders.
Generally task focused and
high integrity.
Be careful here that the
‘tail does not wag the
dog’. Don’t let
compliance drive your
business.
Management Accounting
Provide information to
support resource planning.
Assist with cost reporting,
budgeting, forecasting, cost
allocation etc.
Have a service provider role
to support leaders.
Need to have strong process
discipline and co-ordination
skills.
Need to have excellent
business partnering skills.
Need to be careful here that
they don’t overstep role and
that management retain
accountability for managing
costs.
Commercial
Part of management team
and may not report to the
CFO.
Aim to maximise profitability
and support executives to
make decisions.
Negotiate contracts, review
cost drivers, prepare business
cases, perform business
analysis, review contract
performance.
Need to be strong leaders
and influencers, as well as
have good strategic/analytical
skills.
40. Joint Responsibility
Effective commercial management is a joint partnership between Finance,
Line management, and Commercial Managers.
Line management need strong commercial acumen as they make day to
day, as well as strategic decisions which impact on costs. They manage the
resources.
Finance play a key role in the overall governance of costs across the
business ensuring the right reporting, systems and structures are in place
to hold managers accountable and ensure transparency.
Commercial managers/ business analysts can also play a critical leadership
role in analysing performance, planning and budgeting, influencing change
and advising executives.
Many organisations place considerable emphasis on the execution of projects or contracts. This means that they view profitability and the delivery of critical outcomes in terms of how well their project manager and their team perform.
Whilst effective execution is critical, profitability and delivery of critical outcomes is generally determined in the early stages of proposal development, tender discussions, and contract negotiations. It is more closely determined by how well the project is scoped, the degree of alignment between the service provider and the client, and the design of the pricing mechanisms which allow the service provider to recover their costs and margins and influences their behaviour.
LEGAL VS COMMERCIAL REVIEW
How many in the room have had a legal review of contract terms & conditions?
This protects the legal position of your organisation
How many have had a commercial review undertaken of your contract terms and conditions?
This ensures you get value for money for your organisation from your service providers
To get the morning kickstarted, lets start with something a little lighthearted.
The message however is an important one, people that aren’t commercially savvy in your organisation may be making decisions that are not in the best interests of your company.
The right or better decision, may be common sense to us here today. But the problem with common sense, is that sometimes it is just not that common. The same can unfortunately be said for commercial or business acumen.
So what actually is commercial acumen all about?
Commercial Acumen for government leaders is important because even though the government is not a profit-centered agency, it still has business needs:
Budget, Balance Sheet, and metrics
Need to manage resources and staffing
Poor management erodes budget
Need to produce results to meet community / stakeholder expectations
No business, no job!
Other reasons include:
More commercial partnerships these days than there used to be
Private sector is increasingly more commercially astute
Greater scrutiny from the public eye on government activities
More outsourcing activities in government than there used to be
Value for money is crucial on government projects
Increasingly greater complexity in projects – more layers, stakeholders, greater investment size etc.
Increasing need to do more with less
Cash flow
Where possible, billing in advance and securing a deposit assists greatly in ensuring your cash is ahead of your payments;
Where invoices are in dispute, this often leads to significant sums not being paid. Agree up front that parts that are in dispute are isolated and not paid but the remainder is paid on time.