Driving Costs Out of Your Business

1
(No Transcript)
2
Driving Costs Out of Your Business!

• September 15, 2009

3
Agenda

• Introduction
• Our Approach
• Sample Engagements / Findings
• Closing Comments
• Questions Answers (QA)

4
Now is the Time

• While there have been several glimmers of hope,
  the economy continues to struggle. It is
  estimated that
• Consumer Bankruptcies are forecasted to climb to
  more than 1.4MM in 2009.
• Business Bankruptcies are up 80 and are
  forecasted to climb even higher.
• Available credit and cash flow continue to
  tighten and erode.
• In order to remain competitive, it is critical
  that organizations drive value out of every
  dollar they spend. Our presentation will walk you
  through our proven methodology for identifying
  opportunities to drive costs out of your business.

Note Data obtained from Crain Communications /
publisher of Financial Week.
5
Our Proven Approach
Our approach to driving cost savings integrates a
modified Balanced Score Card with Lean
Transformational methodology.
Notes As defined by the Balanced Score Card
group. As defined by the Six Sigma group (US
Chapter).
6
Our Proven Approach..
Our tailored / integrated approach integrates the
Balanced Score Card with the Lean
Transformational methodology in order to optimize
the utilization of all organizational People,
Processes and Technologies to yield quantifiable
/ sustainable results. Our focus is identifying
and eliminating waste!
7
The Eight Elements of Waste
Q. Do any of these elements exist in your
organization?
Regardless of the industry, the Eight Elements of
Waste remain the same. Our focus is to identify
these areas and develop a plan of action to
reduce these elements of waste and their
associated cost. Adding new technology is not
always the answer!
8
Client Focus
Q. Are your client relationships profitable?
Focus Refine and Commit to
Strategy. Assess Review existing measures,
create new measures as needed, apply new
measures, analyze and report against the new
measures. Implement Implement improvement
plans. Improve Track metrics, identify and
implement continuous improvements, revisit BSC.
FOCUS ? ASSESS ? IMPLEMENT ? IMPROVE
9
Internal Process Focus
Q. Have you measured organizational throughput?
Focus Refine and Commit to
Strategy. Assess Review existing measures,
create new measures as needed, apply new
measures, analyze and report against the new
measures. Implement Implement improvement
plans. Improve Track metrics, identify and
implement continuous improvements, revisit BSC.
FOCUS ? ASSESS ? IMPLEMENT ? IMPROVE
10
Reporting Focus
Q. People manage what is measured. Are you
reporting (measuring) what is important?
Focus Refine and Commit to
Strategy. Assess Review existing measures,
create new measures as needed, apply new
measures, analyze and report against the new
measures. Implement Implement improvement
plans. Improve Track metrics, identify and
implement continuous improvements, revisit BSC.
FOCUS ? ASSESS ? IMPLEMENT ? IMPROVE
11
Supplier Focus
Q. Have you optimized your supplier relationships?
Focus Refine and Commit to
Strategy. Assess Review existing measures,
create new measures as needed, apply new
measures, analyze and report against the new
measures. Implement Implement improvement
plans. Improve Track metrics, identify and
implement continuous improvements, revisit BSC.
FOCUS ? ASSESS ? IMPLEMENT ? IMPROVE
12
Client Focus (Sample Initiative)
13
Internal Process (Sample Initiative)
14
Reporting Focus (Sample Initiative)
15
Supplier Focus (Sample Initiative)
16
Lastly, Some Other Considerations
To make your cost management program successful,
you should

• Keep it simple
• Understand that New Technology is not always a
  Requirement
• Benchmarking the only good benchmarks are your
  benchmarks
• Leverage Value Added Tools / Methods
• Initiate High Level Duration Analysis for Major
  Processes
• Review Supplier Relationships / Utilization of
  RFIs
• Consider Outsourcing Non-Value Added Functions
• Implement the CAM-I Method of Capacity Planning
• Enhance Reporting to include Product and Client
  Profitability
• Consider Implementing a Target Costing
  Environment / Assessment
• Leverage Your Staff for Value Added Ideas

17
Q A