PEX 2015 PA Consulting playing cards
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Peter Sirman from PA Consulting chaired the 2015 PEX conference. Here are four burning questions we hear from our clients and our point of view on how to fix them.
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PEX 2015 PA Consulting playing cards
- 2. A A COMPLIANCE COMES FROM IN-BUILT QUALITY 1. Sticking plaster solutions don’t stick…or work Nothing works without the right design and assured adherence. Decide together what you are going to do, deploy it through a model office and then execute under business, operational and self-assurance. 2. Success looks like inaction when the regulator calls Once you have sufficient clear line of sight from policy to procedure, with widespread adherence and sustained compliance through active management, audits and regulatory visits require no preparation. 3. Eliminate, automate and error proof…minimise inspection The first reaction to a bad audit or new regulation is often to add in inspections, checks and approvals. These just make you slow, fragile and blind, no matter how many eyes are involved. UK Regional Energy Supplier Why: Breach of retail energy sales regulations - fined and awful PR What: Prioritised processes, rapid redesign, Model Office controlled deployment, 3 layer assurance delivered Impact: Satisfied regulator and customers, rapid design capability & assurance acquired Global FMCG Conglomerate Why: Expensive, slow and poor quality service provision What: Managed strategy & operating model design, business case and supplier due diligence, and contract negotiations through to go live Impact: $3m pa and 150 FTE saved, compliant service performance with agile design and change capabilities For a further discussion, please contact peter.sirman@paconsulting.com PA Operations Consulting: delivering your customer promise every time at the lowest possible cost
- 4. A A ACHIEVING THE ‘LOWEST POSSIBLE COST’ IS ONLY EASY IF YOU TRY 1. A red pen safely gets you up to 10%, but seldom more Most operations can lose up to 10% to create stretch. Beyond that causes panic and failures. If looking for more, team the CFO & COO and aim for the low value / value destroying work. 2. The right cost reduction approach is repeatable Centralised programme, locally driven, top-down - analyse the whole enterprise as a system with ruthless focus on benefits realisation and sustainability. 3. Sustainable cost reduction happens through people Demand immediate impact, but drive for long-term transformation; uncover the innovative solutions known to your team; deliver across a full change delivery and release approach bringing the team along with you – the right costs, not just less. UK Electricity Generator Why: Regulator required a 25% reduction in operating costs What: Waste elimination methods to optimise each value stream, reduce complexity & lead-times Impact: 40% cost out + enterprise sustainable & repeatable cost reduction capability FTSE100 Insurer Why: Loss of market share required reduced costs without time for a major transformation What: Combination of Lean, Cost-to-Serve modelling and KPI development to confirm right cost Impact: Standard approach for cost reduction & 16% cost reduction For a further discussion, please contact peter.sirman@paconsulting.com PA Operations Consulting: delivering your customer promise every time at the lowest possible cost
- 6. A A TEAMS ALREADY KNOW HOW TO IMPROVE; THEY JUST NEED SOME ‘OIL’ TO GET UNSTUCK 1. Demand better results – and get them! Leaders often fail to demand improvement as part of their team’s job – set the goal & minimum, but specific, expectations, communicate clearly and then monitor but don’t manage. 2. Don’t train – provide practical insight and coaching People learn best by doing. The 10% of ‘teaching’ you need can be done best on the shop floor. The PDCA improvement cycle, a customised academy of tools to apply and a coach you can call on are the key elements for success. 3. Change comes through people, even in operations A robust driving and releasing change capability is core to all change. Often the operations theory and the challenge faced gets in the way of this. Remember, adoption is many times more important than the technical answer. Robert Schaffer (HBR March 91) Banknote Manufacturer Why: ‘Heroes’ were fire-fighting quality, cost and delivery issues but not resolving them sustainably What: Created one single process, ensured adherence, built operational transparency and performance metrics Impact: Much less waste, much faster with a safer & stable result Global Law Practice Why: Urgently needed an enhanced Marketing & BD function What: Understood the end to end system, prioritised 12 processes, validated best practice & impact, planned and delivered to stable Impact: Best in class globally consistent processes that were cheaper than the as-is For a further discussion, please contact peter.sirman@paconsulting.com PA Operations Consulting: delivering your customer promise every time at the lowest possible cost
- 8. A A SCALED AGILE ALLOWS THE ENTERPRISE TO DELIVER CHANGE AT PACE 1. Balance the culture and flexibility of Agile with the realities of large organisations Scaled Agile provides corporate governance, large programme teams, third parties and regulatory compliance that operate flexibly. 2. Simplifying business design is a key enabler to Scaled Agile delivery Remove the clutter in the short term, re-configure critical linkages and simplify your business for a future where disruptive entrants will enter the market. 3. Agile is primarily a cultural change and won’t ‘stick’ without it Manage culture change with a comprehensive plan that includes a balance of both driving change (strategy, planning and structure) and releasing that change (building momentum, role modelling and encouraging motivation). Collaboration, teamwork, and trust are critical for Agile and must be modelled from the top. City Finance Organisation Why: Struggling to deliver large IT projects using waterfall approach. What: Moving the entire organisation and a programme portfolio worth £millions onto agile methods Impact: Org transition, new agile governance and contractual framework Biopharmaceutical Company Why: Deliver twice as much for half the cost through radical simplification What: Applied Agile and Lean across the enterprise using Scaled Agile framework & a culture change programme Impact: Focus on functionality over technology enabling quicker delivery For a further discussion, please contact peter.sirman@paconsulting.com PA Operations Consulting: delivering your customer promise every time at the lowest possible cost