Find & fix profit erosion
Workshop Benefits
- 5-15% of immediate Profit recovery
- 5-15% of incremental Profit opportunity
- A material improvement in Cross Functional Productivity
- Empowerment of Functional Staff
- Higher Employee Engagement
Workshop Process
- Compare the ‘service experience’ against a contractual benchmark
- Map functional processes to identify leakage hotspots
- Apportion annualised profit impact
- Construct recommendations for resolving, trading or accepting
- Agree who, how and when the value can be recovered
Workshop Methodology
2 weeks prior – Preparation
Determining what a ‘good workday’ should look like:
- Relevant contracts and Service Level Agreements reviewed
- Profit & loss ‘actual versus budgeted’ comparison is provided by line item
- Functional participants in the value chain identified from both supplier & customer side
- Participants are interviewed to ascertain the level and causes of satisfaction in the relationship (optional)
- Initial hypothesis’s established
Day 1 – Exploration
Unearthing what is transpiring on any given day & why:
- Line by line of the Profit & Loss. Function by function amongst the participants
- Questioning of where and why variations are occurring to the agreed contractual benchmark
- Defining the root causes as behavioural, knowledge, process or other
- Apportioning an annualised cost to each variations (Figure 2)
- Ranking each leak by overall importance
Day 2 – Recovery
Which leaks should be fixed; how, when and by who?
- Collective prioritisation of where to focus resources
- Construction of commercially sensitive pathways to reclaim value
- Filtering likely impacts against the expectations of all stakeholders
- Apportioning of ownership, timings and supports required
- Participants redefine what a ‘good workday’ must look like
Day 3 – Creation
What opportunities have been discovered?
- Insights & themes from Days 1 & 2 are reviewed
- Ideas emerge to create value from behaviour, knowledge or process innovations
- Small teams develop & quantify specific value opportunities
- Targets, timelines and accountabilities for delivery are set
- Wrap up
Investment
- Price On Application.
- Tailored to complexity & participant quantity
- Venue, catering and travel expenses
