This program aims to equip participants with the principles and methods of benefits realisation. It explores tips, tools and techniques that procurement practitioners can use in modelling cost including their application and measurement of the models. And how to communicate cash releasing and non-cash releasing benefits from the sourcing process.
Introduction
This intensive one-day workshop provides the development and management of a benefits realisation plan at an intermediate level.
This course is designed for:
Practitioners working in procurement or commercial management who wish to develop capability in translating the potential benefits achieved through the sourcing process into harvestable benefits.
Course structure
A practical one-day workshop consisting of nine session involving exercises, case studies, presentations and trainer-facilitated discussions. Each of the sessions will be led by an experienced facilitator and will feature the key principles and practical methods which may be used in the procurement process, together with practical case study sessions to maximise the transfer from the workshop to the workplace.
Benefits of attending
Participation will help raise understanding of the design and application of benefit realisation plans to harvest value from procurement initiatives.
Furthermore, attendance will help raise capability in selecting and deploying a range of tools and methods to scale and minimise the total cost of ownership.
As well as this, delegates will gain these key benefits from attending:
- More capability in designing benefit realisation plans and creating managerial processes to translate potential benefits into tangible outcomes
- More understanding of the tracking of progress and the reporting of actual results
- Less likelihood of leakage of value after the award of contracts
- More capability in applying methods to generate a range of practical ideas to reduce total cost, and assess their impact on the total cost profile
Key learning outcomes
- Identify and categorise potential benefits (and dis-benefits) and link potential benefits to organisational goals and priorities
- Design benefit realisation plans and create managerial processes to translate potential benefits into tangible outcomes
- Design governance process to assign responsibility for benefit realisation and track progress and identify problems quickly
- Develop a total cost model and identify the components that are part of the organisation’s direct and indirect total cost
- Develop a range of initiatives to reduce total cost and select the most appropriate approach to reducing total cost, and then measuring the impact
Course Content
Categorising potential benefits and their relationship with organisational goals and priorities
- Categorising types of benefits in terms of cash releasing and non-cash releasing benefits
- Relating contractual outputs to organisational outcomes
- Baselining the ‘as is’ and the ‘to be’ states and estimating the realisable opportunity for improvement
Design benefit realisation plans and create managerial processes to translate potential benefits into tangible outcomes
- The contents of a benefit realisation plan
- Assigning responsibility for benefits realisation to stakeholders inside and outside the organisation
- Developing leading and lagging indicators of progress in realising benefits
Pricing and costing
- Reporting and reviewing contractual outcomes
- Detecting and responding to value leakage
- Distinguishing between inputs, processes, outputs and outcomes and assigning accountability for the most appropriate element
Reducing total cost
- The total cost principle; origin and basis
- Building a total cost model
- Validating cost estimates
- Identifying cost drivers
- Proposing cost levers
- Ideas to reduce total cost in practice
Ideas to reduce total cost in practice
- Demand management initiatives
- Specification initiatives
- Changing the terms of the deal
- Aggregation and rationalisation initiatives
- Changing purchasing methods
- Cycle time compression
- Changing policy and/or controls
- Changing supply chain
Measuring the impact of cost reduction initiatives
- Baselining the “as is” costs
- Piloting the cost reduction initiatives
- Capturing cash releasing benefits
- Capturing non-cash releasing benefits
- Hard-wiring the pilot benefits in to sustainable benefits delivery
