May 7-9, 2017

Disney’s Yacht & Beach Club Resorts®, Florida

Know What to Measure: Defining Success Through

Benchmarking

Judy Bicking, May 2017

May 7-9, 2017

Disney’s Yacht & Beach Club Resorts®, Florida

About Your Presenter

Judy Bicking is a 27 year veteran of Johnson & Johnson. Her career has been focused on Procure -2-Pay, Order-2-Cash, and developing Shared Service Centers in the U.S. and Europe; earning high recognition for process improvement and major cost savings. She led the first department to earn IOFM AP Departmental Certification designation. Today she is a Public Speaker, does consulting in O2C and P2P and participated as co-founder and played a major role in writing and conducting certification training in these fields. She also owns and operates a retail department store along with her passion in doing mission work at home and abroad.

Metrics for Metrics Sake

Stop Stressing about the numbers.

If they matter, work to change them.

If they don’t, let them go. KatyWidrick.com

Don’t measure people… measure process

CUSTOMER SERVICE Exp:

1st Focus on Process

2nd Performance Expectations

Metrics Cause Stress

Metrics Will Drive Excellence

? If you choose the right metrics ? If the metrics are valid ? If you know your competition

Metrics Should Drive Your Strategy not the other way around…

“Your idea to stop paying our bills was pure genius.”

Noise

Show me the metrics !!!!

Can’s See the Forest For the Trees

Where to begin?

• What is your mission? Vision? Scope? Goals?

• To pay invoices accurately, timely, in compliance… That’s the trees.

• The big picture:

To work with purchasing to build a purchasing strategy that will build a strong supplier relationship and will provide bottom line savings through Discount and Spend Management

What is your purchasing strategy?

Why do you need benchmark data?

• Know where you stand?

• Learn possibilities

• Gain proven processes that will – Reduce cost

– Improve the process

– Ensure compliance

– Eliminate Fraud

• C-Suite wants proof – Gain budget for systems

– Support

Example: Wires

To get the most out of Benchmarking

• Bring an end-to-end team together

• Map your current process

• Gather metrics based on:

– Mission, Vision, Scope

– Volumes

– Cycle Time

– Bottlenecks, errors, discrepancies

– Cost

• Develop benchmark strategy

Benchmarking • How to find benchmark data

– Survey’s – On-line – Conferences – Chapters – One-on-one

• Types of benchmark – Internal – Competitor – System – Functional – Generic

Quantitative (metrics)

Qualitative Process/BP

What Metrics Drive Change

• What is your top metric?

Top Metrics

• Make them positive:

– Invoices Paid Late vs. Invoice Paid On Time

• First Pass / Touch it Once

– Does this really match your vision, mission, goals

• Do you use DPO?

• PO vs NonPO

• Dollars under $1K

• Biggest Roadblock

Behind the numbers

• What is 28 divided by 7?

• How do you check division?

– Multiply

– 13 x 7 = 28

• How do you check multiplication?

– Add

Get behind the metrics

• Paid-on-time

– ASK: When did they start the clock

• Cost per invoice

– ASK: What was included: rent, benefits, IT support?

Capture: Baseline, Goal, Status

Mission, Vision, Strategy, Goal • Status Quo

– Silos – Transaction focused – Managing the Debit

• Best-in-Class – Best Practices – Don’t control process – BP may not succeed (ERS, EDI)

• World Class – End-to-End with C-Suite Support – Purchasing Strategy – Cash Management – Budget Control

Metrics Portfolio

Invoice Paid on Time

E-Invoices .

Cost per Invoices

Pay on Receipt (ER’s)

Purchasing Card

Purchase < $5K

First Pass Cycle Time.

Reduce Invoices w/o a PO

Discount Taken & Discount Lost

Reduce Invoices going to Internal

Customers

Insure Items on Age Trial Balance are not Greater

than 60 Days

Reduce Mismatches Between the PO and the Invoice

Set reasonable goals – not too high or low

Remember if you don’t chart it, you won’t do it !!

Reduce exception process with

Non-PO invoices

Top Metric

Best Practices

Bottom Line

Exceptions

Spend Management

Business Cards

Pcards

Consider • Use metrics for good – not to blame or punish

• Involve staff: agree on the meaning and purpose of the metrics

• After BP implemented redo metrics – Did it work?

– Find next focus

• Beware that metrics can drive wrong behaviors – CS: answer call in less than two minutes

• Set clear, achievable but stretchable goals

• Obtain senior management support – No back doors

• Don’t take on too much – stretched too thin / Confusing

• Hire for future skills – analytical, innovative

Summing Up A final word

You cannot change everything all at once.

Trying to do so will be overwhelming for your department and yourself.

You must prioritize, then take on achievable goals.

The idea is to succeed a step at a time.

With each success, you gain credibility and confidence on which to build the next step, in a developing culture of continuous improvement.

In any moment of decision, the best thing you can do is

the right thing, the next best thing is the

wrong thing, and the worst thing you can do is

nothing. Theodore Roosevelt

May 7-9, 2017

Disney’s Yacht & Beach Club Resorts®, Florida

Thank You

Questions