Services...
Strategic
Planning Operational
Planning Strategic
Sourcing
Strategic Planning
Purpose - Process - Payoff
PURPOSE
To define a unique and valuable long-term competitive
position in your marketplace by answering the following
questions:
- Why are we in business?
- What business are we in?
- What is our unique value proposition?
- What do we want to accomplish regarding strategic
goals and objectives?
- How will we measure success?
PROCESS – S-T-P (Situation-Target-Plan)
Situation
Where are we now? Analyze your organization’s
current situation from a number of perspectives including
competitors, shareholders, customers, employees and
suppliers.
Target
Where are we going? We help your leadership team articulate
your organization’s Mission, Vision and Values
and develop supporting strategic goals and objectives
using a SWOT analysis (Strengths, Weaknesses, Opportunities,
Threats). Critical success factors and measures of
success are identified through the planning horizon.
Plan
How will we get there? We help your senior leadership
and representatives from your broader organization
build a Strategic Map showing how to close the gap
between “Today’s Reality” and “Tomorrow’s
Vision” in four Key Strategic Areas: Customer
Focus, Financial Stability, Operational Excellence
and People Development.
PAYOFF
A road map that translates your organization’s
vision, mission, values and strategic goals and objectives
into things people can actually do.
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OPERATIONAL PLANNING
Purpose - Process - Payoff
PURPOSE
To determine the best way to implement your strategic
plan and take your strategy to the bottom line. Starting
where your strategic plan leaves off, Operational Planning
answers the more tactical questions about how exactly
your strategic goals and objectives will be accomplished.
Objectives:
- Focus your organization on the key activities vital
to your success
- Align your organization around those activities
- Implement them using project management and other
tools
- Monitor and Improve based on actual experience
- GET RESULTS!
PROCESS
Start where your organization is. What are your Mission,
Vision and Values in the context of your current situation?
What activities are already underway to accomplish your
strategy? Are all of these activities necessary and
sufficient to accomplish your goals? Eliminate duplicate
or non-vital activities and re-deploy resources to the
“vital few” activities which must be accomplished
for success. Determine who will do what by when and
how success will be measured. Provide individuals with
the project management and decision-making tools needed
to accomplish the plan. See the Business
Planning Process section for more details.
PAYOFF
Everyone in your organization understands the vital
few activities that drive your business performance,
how their work fits and how they can contribute.
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STRATEGIC SOURCING
Purpose - Process - Payoff
PURPOSE
Leverage the resources and experience of your strategic
suppliers. Our Strategic Sourcing
process is a way to dramatically reduce the total cost
of products and services acquired from outside vendors
while simultaneously increasing
the quality of those products and services. The result?
Significant improvement in bottom line profitability.
A study of over 150 procurement improvement initiatives
indicates that significant savings are possible:
- “Shining the spotlight” on a given product
category can generate 3%-5% savings of annual purchases.
- Challenging specifications and modifying product
designs can generate savings of 7%-15% of annual spend.
- Completely rethinking
the way business is done with suppliers using cross-functional
teamwork and partnering with strategic
suppliers can generate savings
of 30%-50% of annual purchases.
Our experience indicates that Strategic Sourcing initiatives
typically save 10%-12% of total spend over a 3-4 year
period. Few, if and, other activities an organization
undertakes have this same bottom line impact.
Strategic Sourcing and Supply Chain Excellence represent
“low lying fruit” and yet many organizations
don’t recognize its importance or don’t
know HOW to proceed. They fail to understand outsourcing
systematically in the context of their strategic goals
and objectives. This is where Chenoweth
& Associates can help!
PROCESS
Our unique approach looks holistically at the entire
procurement transaction chain while simultaneously focusing
on both the tangible and behavioral aspects of the procurement
process. Specific steps in the Strategic Sourcing process:
- Assess your current procurement situation: e.g.
annual purchases, number of vendors, number of checks
written, procurement policies and so forth.
- Create a baseline of current procurement metrics
around three categories:
- Internal procurement cost
- Order and delivery cycle time
- Quality of products and services received
- Identify your organization’s core competencies
and how “make vs. buy” decisions are made
in relation to those competencies.
- Determine which of your processes or sub-processes
are candidates for outsourcing and which must be conducted
inside the organization. Common Rule:
Focus your organization’s limited time and resources
on things that really matter to your customers. Everything
else could possibly be outsourced.
- Determine logical “product families”
for purchases and create cross-functional teams as
the single point of co-ordination between your organization
and vendors within each product family.
- Identify “tiers” of suppliers:
- Tier I: Critical to your current
and future success
- Tier II: Large annual purchases
but not critical to your strategy
- Tier III: Small annual purchases
and not critical to your strategy
- Establish relationships with Tier I, critical suppliers.
Share vision, mission, values, and strategic direction.
For Tier II and Tier III suppliers, negotiate the
best deal, establish guidelines, and then just fulfill
transactions.
- Determine if your procurement policies and procedures
enable or inhibit transactions between you and your
suppliers. Plan actions accordingly.
- Determine how empowered suppliers are to make decisions
on your behalf. Plan actions accordingly.
- Change key transformation levers to reinforce improvements
made: e.g., reward and recognition systems, leadership
role modeling, communications, organization structure,
and education.
PAYOFF
Our experience is that Strategic Sourcing projects typically
pay for themselves in less than one year in the following
ways:
- Significant reduction in number of suppliers and
improved relationships between your organization and
your key suppliers.
- Significant improvement in quality, cost, order
cycle time and delivery cycle time.
- Your internal resources are freed to focus on high
priority areas critical to your success.
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