1. Needs Analysis

The first step in the process is to meet directly with your top executives. The purpose of these meetings is for us to better understand your organization's business priorities and for your executive to evaluate our capabilities, approach and methodology. We also provide references for the work we have carried out in the past.

From our perspective, we want to understand how decisions of this nature are made by your organization so that we can plan and execute an analysis of the business that will not only be insightful for you but will also lead to project if it makes good business sense.

2. Opportunity Analysis

Assuming your top executives believe it makes sense to further explore if we can help your company, the next stage is for us to come in and conduct a 2-3 week comprehensive business analysis on-site. The intent of the Analysis is to determine whether our methodology will provide tangible profit and service improvements to your operation, over and above what you are already doing. We are only able to provide a specific proposal for a project once we have had an opportunity to assess the operation first-hand, and tie that assessment to the critical drivers of profit and service.

During the analysis, we conduct several studies related to the performance of the operation. The studies are based on real-time observations performed by our consultants and do not cause any disruption to the day-to-day operation. The studies will identify opportunities as they relate to these areas:

a) Service and Product

• What are the key service requirements from a customer perspective?
• How are these measured and what are the current trends?
• What is the required performance? What is the potential performance?

b) Process understanding

• We will map out and observe key process activities.
• We will determine the Value/ Non-value ratio in these activities.
• Determine what portion of the non-value ratio is recoverable.

c) Management system understanding

• How do the key drivers of profit and cost link to the business plan and to the introduction of new products?
• Do these indicators drive the forecasting process?
• Do these indicators link to form the basis for resource allocation?
• Do these indicators drive the scheduling methodology? What is the scheduling methodology?
• How is the schedule assigned? How are off-schedule conditions identified and resolved?
• How timely is the reporting, and does it reflect the business plan requirements?

d) Management behavior understanding

• What percentage of a typical manager's day is focused on the drivers of profit?
• How ready / accepting is the organization towards positive change?

The findings of these studies will be tied back to the financial profile to determine an estimated recovery of cost and service enhancement. At the conclusion of the analysis, you will be presented the estimated cost recovery and service improvement, the project approach and the required investment, as well as the anticipated cash flow and financial exposure. At that time, we would ask that you be in a position to make a decision on whether to proceed with a project.

The project itself and the investment required to complete it is derived from a detailed schedule of events (project plan) that will be presented to you during the analysis. The professional fees are based on the time we expect to spend on your premises and are fixed (any over-runs are our responsibility).

3. Project delivery

Projects are typically conducted on-site over 15-20 weeks with a further follow-up period for 6-12 months. Our 90%+ success rate for getting results is based on the following key principles:

• "Required results" are determined up front based on the organization's financial and service objectives.
• Project teams involve local operating managers and staff who are trained to help analyze, design, implement and own the results.
• Full time implementation coaching throughout, working day-by-day with managers in their environment.
• Rigorous planning and execution of project activities.
• The project management process is designed to ensure pace, delivery of results and removal of barriers in a timely manner.
• Projects must deliver changes in behaviors, not just process or systems.