PEX 2015 PA Consulting playing cards

HAPPY REGULATOR

AND

CALM BUSINESS

www.paconsulting.com

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COMPLIANCE COMES FROM IN-BUILT QUALITY

1. Sticking plaster solutions don’t stick…or workNothing works without the right design and assured adherence. Decide together what you are going to do, deploy it through a model o�ce and then execute under business, operational and self-assurance.

2. Success looks like inaction when the regulator callsOnce you have su�cient 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 inspectionThe 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 SupplierWhy: Breach of retail energy sales regulations - fined and awful PR

What: Prioritised processes, rapid redesign, Model O�ce controlled deployment, 3 layer assurance delivered

Impact: Satisfied regulator and customers, rapid design capability & assurance acquired

Global FMCG ConglomerateWhy: 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 [email protected]

PA Operations Consulting: delivering your customer promise every time at the lowest possible cost


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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 peopleDemand 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 GeneratorWhy: 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 InsurerWhy: 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




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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 coachingPeople 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 operationsA 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 Scha�er (HBR March 91)

Banknote ManufacturerWhy: ‘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 PracticeWhy: 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



SIZE

DOESMATTER


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SCALED AGILE ALLOWS THE ENTERPRISE TO DELIVER CHANGE AT PACE

1. Balance the culture and flexibility of Agile with the realities of large organisationsScaled 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 deliveryRemove 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 itManage 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 CompanyWhy: 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



Business

PEX 2015 PA Consulting playing cards