Transcript Document 7898563

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Recommended Approach
To Best Practice Implementation
And
The Analysis Design And Logic Map
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Joint Focus On Key Business Objectives*
Business
Objectives
We come to a clear
understanding of
what it is you want
to do!
Critical
Success
Factors
Controllable
We identify
those issues
which you
must manage
well in order to
achieve your
objectives.
We measure how
well we're
managing the
CSFs through
process variables
typically within
your control.
Variables
Gemini
Analysis
Activities
We propose to
undertake these
studies to uncover
strategic, operational,
and information
opportunities critical
to achieving your
objectives.
Gemini focuses on how to accelerate business objective attainment
* Normally completed during week 1 of the A&D
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Your Business Objectives - Draft of 5/20/92
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Be first to market with an optimal and superior
combination of key high-barrier-to-entry oral and
injectable products that are either going off or
are off patent.*
Business
Objectives
*
Critical
Success
Factors
Source: Data gathered during initial interviews
Controllable
Variables
Gemini
Analysis
Activities
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Critical Success Factors* - Draft 0f 5/20/92
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Speed in delivering new and existing products to market
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Fast and reliable source of supply to selected customer base
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Reputation as a high quality manufacturer
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Market penetration and share growth
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Ability to form strategic alliances
Business
Objectives
*
Critical
Success
Factors
Source: Data gathered during initial interviews
Controllable
Variables
Gemini
Analysis
Activities
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Controllable Variables* - Draft of 5/20/92
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Unity of vision across and within business units
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Interface effectiveness across multiple disciplines/functions
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Clearly agreed upon product priorities
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Efficient decision-making processes
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Maximized production speed and flexibility
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DC replenishment exceeding industry best
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Effective sales disciplines
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Work process flow effectiveness
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Culture ready to adopt and adapt to Best Practices
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Implement Best Practices for key business processes
Business
Objectives
*
Critical
Success
Factors
Source: Data gathered during initial interviews
Controllable
Variables
Gemini
Analysis
Activities
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Analysis & Design Activities - Draft Of 5/20/92
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Focus Interview Completion
Process “As Is” Mapping (Leverage Projects Underway)
– Product Selection and Prioritization
– Product Development
– Development to Manufacturing
– Order Entry and Fulfillment
– Manufacturing Scheduling
– Sales and Marketing
– Decision-Making
– Regulatory Compliance
– Quality Assurance
– Purchasing
Cost Allocation Study
Initiate Best Practice Benchmarking Process
– For Key Processes, Strategies and Objectives
Design a Plan for Implementation
Develop the Business Case for Implementation
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Analysis & Design Project Logic - Draft of 5/20/92
Business Objective
Critical Success Factors
Controllable Variables
• Be first to Market with
an optional and
superior combination
of key high -barrierTo-entry oral and
injectable products
that are either going
off or are off patent
• Speed in delivering new
and existing products to
market
• Unity of vision across
and within business
units
• Fast and reliable source
of supply to selected
customer base
• Reputation as a high
quality manufacturer
• Market penetration and
share maintenance
• Ability to form strategic
alliances
Analysis Activities
• Focus interviews
• Key business process “As
Is“ mapping
• Product development
• Interface effectiveness
across multiple
disciplines and functions
• Clearly agreed upon
product priorities
• Development to Mfg.
• Order entry and fulfillment
• Mfg. Scheduling
• Sales and marketing
• Decision-making
• Efficient decisionmaking processes
• Regulatory Compliance
• Maximized production
speed and flexibility
• Purchasing
• Quality assurance
• Cost allocation study
• Initiate best practice
benchmarking for key
processes, strategies and
objectives
• Design implementation
• Business case
How To Use “Best Practices”
To Achieve World Class Performance
Gemini Consulting
May 20, 1992
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How To Achieve World Class Performance Implementation
“AS IS”
Modelling
Attack Immediate
“Obvious Problems”
Implement Programs to
Exceed Best Known
Practices
Search for Best Practices
as “Way of Life”
Measure
Performance to
New Standards
Implement a
Continuous
Improvement
Environment
Best Practices are most effectively implemented when clients are both involved
and have analyzed their “As Is” processes.
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Practices To Be Benchmarked For xxxxxxx
Initial High-Level
Phase II*
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Market Segmentation
Key Business Processes
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Distribution Methods
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Product Selection/Prioritization
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Development Practices
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Product Development
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Strategic Alliances
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Order Entry/Fulfillment
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Cost Allocation Methods
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Distribution Practices
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Organization Structures
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Purchasing Practices
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Market Penetration
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Cost Allocation Methods
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Market Share Maintenance
Competitors
• Rugby
• Goldline
• Geneva
• Schein-Henty
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Marketing Practices
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Sales Processes
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Functional Alignments
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Regulatory
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Quality Assurance
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To be determined based on analysis findings and initial
high-level benchmark data
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• Others as required
Non-Competitors
• xxxxxxx International
• Pharmaceuticals
• Best Class Companies in Selected
Industries
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Factors Critical To A Successful Analysis
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The availability of key personnel as required:
• Focus interviews
• Organizational and management surveys
• Process mapping efforts
• Confirmation and review meetings
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Cooperation from personnel outside Standard Products direct reporting
lines
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The provision of relevant data as required
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A willingness to explore beyond current paradigms
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A sense of urgency to make dramatic changes
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Assess Readiness To Go Overseas
ANALYSIS & DESIGN
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Assess Internal Standard
Products Readiness
BENCHMARKING
•European Competition
• Interview results
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Costs/prices
• Process capabilities per
“As Is” models
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Distribution methods
• Organization readiness
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Delivery service
IMPLEMENTATION PLAN
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Barriers to entry
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“To Be” modelling
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Plans to prepare the business
model for overseas marketing
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Development speed
Manufacturing practices
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Projected Analysis & Design Deliverables
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Complete "As is" models of key business Processes
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Critique of current cost allocation methods
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Initial high level benchmarks
• Within the generic products industry
• Within Pharmaceuticals
• Across selected industries
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Gap analysis
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Business case for implementing changes
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A comprehensive plan for change implementation
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A plan for the continuation of benchmarking
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Schedule
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Gemini’s Client History In Pharmaceuticals
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50 different assignments world-wide
• Strategy
• Operations
• Information technology
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21 different corporations
• Hospital products
• Consumer health products
• Generics
• Over - the - counter
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Gemini Has Undertaken Complex
Assignments In Pharmaceuticals
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Product development and introduction
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Sales force effectiveness
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Integration of strategic acquisitions
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Reducing operational costs
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Benchmarking
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Gemini Clients Reduced Development Cycles
Client :
A hospital products division of a major health care company
Issue :
Product development and introduction speed
Results :
40 - 60% cycle reduction
Action :
Clients/Gemini joint program
• Aligned divisional strategies
• Master planning database
• Advanced project tracking center
• Enhanced interfunctional decision-making
• Upgraded skills
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Gemini Has Improved Sales Force Effectiveness
Client:
A major pharmaceutical company
Issue:
Losing market share
Results:
• $17 million cost avoidance
• 84% reduction in training requirements
• 20% increase in sales call effectiveness
Action:
Joint program to improve training, sales strategies, and
management skills and performance measurement
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Gemini Has Significantly Reduced Costs
Client:
A pharmaceutical division of a diversified mfg. co.
Issue:
Disappointing results from a recent acquisition
Results:
• $5.1mm(50%) increase in year-year revenue growth
• $1.5mm savings in ongoing costs
Actions:
• Company-wide leadership vision
• Improved interfunctional decision-making
• harmonized sales strategies and tools
• Integrated market strategy
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Gemini Clients Have Searched for Best Practices
Client:
Manufacturer of surgical supplies
Issue:
Manufacturing quality best practices
Results:
Client maintained top billing and reputation as high-quality
supplier
Action:
Gemini researched the industry and the marketplace to identify
benchmarks/best practices in manufacturing quality
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A Benefits Case Identifies And Quantifies
The Client’s Improvement Opportunities
Identify Improvement Opportunities
Operations
Performance
Requirements
Perform “As Is”
Work Process
Modeling
“How is it done
today?
Develop Best
Practice Work
Process Model
“How should it be
done?”
Benchmark
Operations against
other plants and
competitors
Identify what is broken
Developing the business case
typically occurs during A&D
Define Benefits
Calculate size of
opportunity
Identify
issues
(Gap
Analysis)
Identify
Improvements
Opportunities
Determine impact
on P&L, balance
sheet
Determine
cause of
problem
Identify change
requirements
Know how to fix it
Track
performance
improvement
against
targets
Develop
Information
Plan
Mobilize
people
Set joint
project
performance
targets
Implement,
monitor,
control, and
learn
Get meaningful results
Measuring performance
typically occurs at Results
Delivery
Building the benefits case is the first step in building
momentum toward continuous improvement
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Summary Of Gemini Approach
Phase I
Red Issue Hypothesis
Phase II
Analysis & Design
Phase III
Results Delivery
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Achieve measurable $
results
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Document “As Is” and the
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“To Be” Vision
Achieve non $ results
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Executive Interviews
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Focus interviews
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Outline scope
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Process “As Is” mapping
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Plan analysis and begin
design
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Begin to develop trust
• External
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Gain appropriate initial
commitment
• Internal
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Complete by 5/20/92
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Initial benchmarking
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Develop business case
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Quantity expected results
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Plan results delivery
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Prepare the organization
for change
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Begin building
enthusiasm
Implement an ongoing
measurement approach
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Train your staff in
Gemini approaches
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Implement best
practices
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Surpass best practices
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How We Work With Our Clients
• On-site Monday - Friday
• Aggressive work schedules
• Sensitivity to soft issues
• Analytical data
• Develop ownership throughout
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Assess Readiness To Go Overseas
Phase I
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Attractiveness of the
European market
• Industry analysis
• High-level views
• Competition
• Market(s)
• Entry barriers
Phase II
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Should we enter?
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If so, how?
Phase III
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If yes, implement
the entry
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Partnership Is The Synergy Of Success
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BUSINESS STRATEGY
TRANSFORMATION
STRATEGIES AND
TACTICS
TECHNICAL EXPERTISE
OPERATIONAL KNOW-HOW
AND BEST PRACTICES
KNOWLEDGE OF
CORPORATE NORMS
LONG-TERM OWNERSHIP
NOT BOUND BY EXISTING
PARADIGMS
PROJECT FOCUS AND
ACCELERATION
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Who We Are In Gemini Consulting
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900 consulting world-wide
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Fastest growing firm in 1991
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Our disciplines are
• Strategy
• Operations
• Information technology
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Our people represent diverse backgrounds
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Gemini’s Strengths Reside in Our Diverse Skills
Strategy formulation
Shareholder Value Creation
Operational Improvement
Management of Change
Information Systems Strategy
Organization Effectiveness
Best Practices Benchmarking
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Gemini Philosophy
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The right answer is never enough
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Clients enthusiasm is often the missing ingredient
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Teams are essential
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We marry with our clients: up-front analysis and design provides robust
implementation road map
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Measurable, bottom-line results are the name of the game
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Gemini Brings Experience and Expertise in All
Functional Areas:
Marketing and Sales
Product Development/Introduction
Cost analysis / Profit Improvement
Organization Design / Development
Information Technology
Customer Service
Manufacturing Operations
Finance
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Analysis And Design Several Objectives
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A Monthly Status Report Helps Improvement Teams
Focus And Manage Their Improvement Efforts