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The Intelligent approach to Cost and Efficiency Optimisation


Agenda YOU

US

YOUR BACKGROUND

HISTORY OF EPI

YOUR AMBITIONS

EPI HISTORY, STRATEGY AND PLANS

YOUR PLANS

THE ROLE OF AN EPI CONSULTANT

SOLUTIONS EPI CONSULTANTS OFFER

HOW WE SUPPORT YOU

PROGRAMME COSTS


EPI History 1995

First “Profit Improvement” services deployed

2003

EPI Conceived Engaged Investors & Partners

2006

Software Development Starts

2008

PFG franchise model superseded

2010

EPI Consultant Scheme Launched

2012

Launch International Partner Programme

EPI FORMED BY EXPERIENCED PRACTIONERS WITH A STRONG BACKGROUND IN BUSINESS IMPROVEMENT CONSULTING WITH PFG, AT&T and IBM.


The Journey… sector independent solutions 

Public Sector

Social Housing

Retail and Distribution

Technology and Fast Growth

Charities

Education

Professional Services

Manufacturing


Customer Experience‌

and many more‌


The Journey… lessons learned Clients Needs have Changed… •

Empowerment is required

Measurable results a “must have”

Sustainability of results

Proven methodology

Affordable solutions


The Journey… lessons learned Clients Needs have Changed… •

Empowerment is required

Measurable results a “must have”

Sustainability of results

Proven methodology

Affordable solutions

But...clients continue to suffer a lack of time and resource


EPI Strategy & Plans


Our Plans‌ On-demand business improvement software, accessible without investment in IT, infrastructure or specialist knowledge Training and support aimed at empowering business improvement practitioners to reduce waste, reduce costs, improve efficiencies and increase value A community environment where accredited practitioners can share, learn and improve client enterprises together.

An international consultant network offering clients flexible business improvement solutions including training, workshops, project management and interim management – all supported with software tools and knowledge - on demand Business improvement solutions that are directly relevant to both the public and commercial sector


News Update


January 2010 EPI appointed Corporate Affiliates of The Institute for Continuing Professional Development

CPD objectives are: • to reinforce standards relating to CPD • to seek to encourage all professions continually to examine their minimum CPD requirements and the effectiveness of their monitoring processes • to encourage professionals to take seriously their responsibility in keeping up to date.


Daily Telegraph, 18 August, 2010 Keeping your eye on the big picture for savings “In order to have any chance of containing costs in a sustainable way, you have to know what you’re doing. If you don’t know your starting point, how will you know where you can make savings.....The more the overall budget is divided among individual cost centres, the further away you get from cost savings”. Stewart Whyte, Director, Association of Car Fleet Operators, August 2010

Government Efficiency Review by Sir Philip Green • There is inefficient buying by individual departments, with significant price variations across departments for common items

• Government does not leverage its buying power, nor does it follow best practice. • Procurement data is shocking -it’s both inconsistent and hard to get at


Government Efficiency Review by Sir Philip Green Example: If you were going on holiday, would you search for the best deal for car hire, or take the first price offered? • Annual central Government spend on vehicle hire is £29m. • There is no standard policy for vehicle hire. • We completed a benchmark on a sample of four departments. • We found the following daily rates for hire of a Category D vehicle (Ford

Mondeo1.6 equivalent): • Highest price: £119 • Lowest price: £27 • Differential: 77%


June 2010 EPI International speak at Westminster OE Conference


Our Business Improvement Methods


Sales & Marketing Business Solutions Overview Business Improvement (Management) Consultancy

Enterprise Improvement Software

Training & Workshops

Interim Consultancy


Why Clients Buy

Improve efficiency

Remove waste

Reduce costs

Improve cash-flows and profit performance

Achieve long term, sustainable benefit

Introduce a performance improvement culture

To improve their own processes (empowerment)

Personal agenda gains


Business Improvement Solutions Lean Operations


Business Improvement Solutions Lean Operations Map Current Processes and Value Streams

Build Brainstorm and Collaboratively Generate Improvement Ideas Target specific KLOEs for improvement with access to Best Practice Library Build Future State Processes and Value Streams Generate Improvement Reports Save, Re Use, Share History

Reduce Waste by 30%


Business Improvement Solutions


Business Improvement Solutions


Business Improvement Solutions


Business Improvement Solutions Many Commercial Applications of our Lean Solution • Improve customer service response times • Improve product and service delivery times • Improve your back office processes

• Improve production cycle times and reduce costs • Improve your sales order processing efficiencies Reduce Waste by 30%+

• Improve supply chain processes • Reduce downtime and waiting time across processes • Improve management information procedures & systems

• Improve invoicing and debt collection procedures


Business Improvement Solutions Plus Public Sector Specific Lean Solutions

Reduce Waste by 30%+

Stock investment (asset management) Tenancy and estate management Housing income management Resident involvement Allocations and lettings


Leaner Operations Key Features and Benefits… Key Features

Key Benefits

• • • • • • • •

• • •

• • •

Build Lean Process Maps Build Associated Value Streams Create & run Brainstorm Event Associate KLOEs Invite Community Participants Search Best Practice Evaluate & Prioritise Ideas Develop Future State Process Maps & Value Streams Document Results Maintain improvement audit trail Share, publish an re-use elements

Specifically designed Lean Tools Reduce Waste (Non-value adding activity) Quantify & benchmark process costs: –

• •

Target improvement of specific KLOEs Generate improvement ideas from a wide range of sources: – – –

• • •

Resources, Consumption, Cycle Time

People (inside outside of enterprise) Peer Groups/Industry Experts Best Practice Guides

Intelligently develop implementation plan by evaluating & prioritising initiatives Quantify improvements All performance improvement data centrally stored and accessible


Client Examples

• Whitefriars Housing – Voids Process Workshop & Training

• Jephson Housing – Rent Arrears Process Workshop & Training

• Worcester Community Homes – Voids Process Workshop & Training

• RCT Housing – Voids Process Workshop & Training


Final Reports Jephson Housing - Rent Arrears Process Workshop

Reduction in Process Steps

Improvement 23%

Reduction in Labour Costs

17%

Reduction in Consumption Cost

3%

Reduction in core process time

15%

Reduction in total process time

24-31%

RCT Housing – Voids Process Workshop Improvement

Reduction in Process Steps

23%

Reduction in Labour Costs

82%

Reduction in Consumption Cost

46%

Reduction in process time

72%


Business Improvement Solutions Strategic Sourcing


Business Improvement Solutions Strategic Sourcing: Software Process Define Purchasing Requirement

Collaboratively Optimise the Supply Chain and Cost Profile Source Best Value, Minimum Cost

Intelligently Evaluate Proposals Generate Savings Assessment Reports Save, Audit, Re Use, Share History

Improve Value by 20%


Consultancy Process

Strategic Sourcing Overview Project Plan

1. Discovery

6. Audit

2. Analysis

5. Implementation

3. Challenge

4. Solution/Supplier Identification


Consultancy Process

Strategic Sourcing Overview Project Plan 12 Month Savings Audits & Fee invoices

Cost Profile 1. Discovery

(50% Payment Option)

Business Process Review 6. Audit

2. Analysis

Consumption Profile

Final Report & Payment Plan (45% Payment Option) 5. Implementation

3. Challenge

• Specification • Supply Chain • Technology • Market Test

4. Solution/Supplier Identification

Project Update

Interim Report (10% of Projected Savings)


Strategic Sourcing Key Features & Benefits… Key Features

Key Benefits

• • • • • • •

• •

• • • • •

Build Cost Profiles Build Supply Chain Maps Create & run Strategic Review Access Process Knowledgebase Interrogate Solution Warehouse Assign solutions to tender Share, publish & re-use sourcing components Run Open/Restricted Tenders OJEU Compliant Tendering Reverse Auction Generate Savings Assessment Maintain Audit Trail

Quantify & benchmark current costs Generate improvement ideas from: –

– –

• • • • • • •

Knowledge Warehouse, Solution Warehouse, Cost Management Wiki, Best Practice Guides People (inside outside of enterprise) Peer Groups/Industry Experts

Optimise Sourcing Requirement Range of tendering options Public Sector tendering Reduce purchase cycle time through reuse of components Quantify improvements Drive out additional 5-10% savings with transparent auction negotiations Maintain all tender documentation in a centrally stored and accessible location


Business Improvement Solutions Our Strategic Sourcing Solution Comprises…

Strategic Sourcing Software plus……. Strategic Sourcing Training Strategic Sourcing Workshops Improve Value by 20%

Strategic Sourcing Projects Interim Strategic Sourcing Management


Business Improvement Solutions Applications of our Strategic Sourcing Solution

Cost Reduction Projects By Category Value improvement projects (KLOE driven) OJEU Compliant sourcing events Improve Value by 20%

Contract and supplier management Review Buying Consortia and Clubs


Recent/ Current Client Examples

Client

Project

EAS

£ Saving

% Saving

Fees

TNT

Marketing Print

£650,000

£183,000

29.1%

£91,500

Tony Pryce Sports

Merchant Card

£100,862

£ 16,740

17.0%

£ 8,370

Telecoms

£ 37,973

£ 13,856

36.0%

£ 6,235

Computer 2000

Office Print

£130,310

£ 74,360

57.0%

£33,462

Chelmsford Co-op

Cleaning & Waste

£324,000

£ 92,510

27.0%

£46,255

Photocopiers 1 & 2

£ 40,018

£ 13,413

33.5%

£ 6,706

Retail Distribution

£749,000

£155,500

20.6%

£69,800

The White Company


Worcester Community Housing Interim Consultant Savings June – December 2009 Process Area Scaffolding Building Materials Electrical Goods Fuel Cards Plumbing Goods Office Supplies Cleaning Supplies Printer Toners Fires/Fireplaces

Benchmarked Levels £62,995.00 £180,009.00 £28,115.00 £40,819.00 £49,762.00 £13,234.00 £9,208.00 £22,629.00 £52,567.00

Savings £ 3,580.00 £ 6,950.83 £ 6,988.00 £ 2,040.00 £ 7,044.00 £ 3,189.00 £ 1,427.00 £ 2,086.00 £ 7,328.00 £ 40,632.83

20% Payment £ 716.00 £ 1,390.17 £ 1,397.60 £ 408.00 £ 1,408.80 £ 637.80 £ 285.40 £ 417.20 £ 1,465.60 £ 8,126.57


Business Improvement Solutions Continuous Improvement


Business Improvement Solutions Continuous Improvement Source Cost Data (multiple sources, sites, enterprises) Build a Visual Model of the Enterprise Put Costs, Contracts & Suppliers Under Management

Analyse Enterprise / Multiprise

Build Continuous Improvement Plan

Reduce Costs by 12%*

Schedule Lean or Strategic Sourcing Events *AMR Research


Business Improvement Solutions Enterprise Spend Analysis


Business Improvement Solutions Continuous Improvement Planning


Continuous Improvement Key Features and Benefits… Key Features

Key Benefits

• • • • • • •

• •

Build Visual Model of your Enterprise Put Costs Under Management Put Suppliers Under Management Put Contracts Under Management Analyse Enterprise Expenditure Identify quick win characteristics Define, implement & monitor an enterprise-wide programme of continuous improvement Receive notifications of: – – –

Process Reviews Contract review/expiry New Solutions

Process Knowledgebase

Visually identify how costs are consumed Ensure all spend is under management –

• •

Maintain a centralised supplier database Access contract documentation ondemand Inform key personnel: –

• • • • •

Process Owner, Review Executor, Budget (12%)

To review processes/contracts

Identify quick win opportunities Intelligently prioritise process reviews Empower employees with the tools and knowledge to undertake reviews Ensure reviews are regularly undertaken Embed an Enterprise-wide ‘Active’ Continuous Improvement Plan


Business Improvement Solutions Applications of Continuous Improvement Solution

Merger & Acquisition Improvement Plans Co-operative Improvement Plans Multi Site Enterprise Improvement Plans Multi – National Improvement Plan Reduce Costs by 12%

Enterprise Rationalisation Plans


Summary of Benefits


Benefits Flexible range of methodologies, tools and service solutions Client Empowerment empowering clients to improve their businesses Business improvement methodologies that have been proven to Proven Methodologies work automated by easy to use software available on demand

Involvement

Community accessibility to the software facilitates staff, customer, supplier, partner and expert involvement

Collaboration

Leverage collaborative resources, knowledge, purchasing power and expertise during business improvement events

One Stop Shop

One place to go for all your business improvement tools, resources, data, knowledge, events, history

Productivity Gains

Re Use resources, knowledge from prior business improvement events. Quickly educate new staff, never lose historic ideas, suggestions, plans, resources, knowledge etc captured in prior business improvement events


The Sales Process


Buzz Words Decision Support

Reduce Costs Process Improvement

Increase ValueProcess Improvement

Elevator Pitch 30 - 60 Seconds Continuous

Continuous Improvement

We do the work

Improve Efficiencies

Training – I Show You Do

Improvement

Strategic Sourcing

On-Demand/ SaaS/Cloud/ Strategic Sourcing

Leaner Operations

Workshop I Show We Do

Empower

Delivery Options Analyse Spend

Leaner Operations Tools Knowledge & Expertise

Project Man. You Show I Do

Rapid ROI

Interim I Show I Do


The Sales Process Sales & Marketing 1st Meeting – Overview of EPI Fact/ Problem Finding

Value Proposition 1 Continuous Improvement

Value Proposition 2 Strategic Sourcing

Value Proposition 3 Leaner Processes

2nd Meeting Presentation of Value Propositions 3rd Meeting Agree Solution & Delivery Mechanism

Sign Agreement Project Plan Implementation

Training

Workshop

Projects External

Projects Internal


Client Pricing (subject to constant assessment)


SOFTWARE SALES

EXTERNAL CONSULTANCY

Continuous Improvement WORK CATEGORIES PAYMENT TYPES

Model Build Training  n/a

Man Day % Gainshare Model Build

£5-£15,000

INTERIM CONSULTANCY

Lean Projects

Sourcing Projects

Lean Projects

Sourcing Projects

Training Workshops

Projects

Training

Training Workshops

 

 

 

£5-£15,000

Basic Salary

£20-30,000 (inc. mgmt fee)

TARGET PAYMENTS

Training

£495 pd

£495 pd

£495 pd

£495 pd

Workshops

£2,500 pw

£2,500 pw

£2,500 pw

£2,500 pw

Projects Software

20-35%

45 % / 50% £6,000 pa

£6,000 pa

£6,000 pa

£6,000 pa

£6,000 pa

(35% comm)

(35% comm)

(35% comm)

(35% comm)

(35% comm)


What does EPI offer? Summary of Consultant Roles


Role of Consultants Training plus Software Solution • Ideal for the client with an internal champion and • Wishing to do business improvement themselves

• You will train clients in any or all of the client solutions • You will be paid by client to train them

• You will earn a subscription commission


Role of Consultants Workshop plus Software Solution • Ideal for the client wanting a quick win with initial support • Wishes to migrate to do business improvement themselves

• You will do workshops in lean / strategic sourcing applications • You will be paid by client to do “project focused” workshops

• You will earn a subscription commission if client subscribes after


Role of Consultants Software plus Project Management Solution • Ideal for the client with specific improvement objectives

• Client may be under resourced and needs quick wins

• You will do lean or strategic sourcing application type projects • Or to set up a continuous improvement environment

• You will be paid by the client a share of the win or fixed fees • Earn a software commission if client subscribes


Role of Consultants Software plus Interim Consultant • Ideal for the client wanting quick wins • Client wants to achieve longer term (cultural) change

• You will provide a complete business improvement service and • You will be paid by client a mix of fixed and contingency fees


Why would you join our Consultant network? External Consultant

Corporate

Trainer

Business Improvement Professionals

Note: • Your potential investment in EPI has multiple pay back options • Over the course of your career you may use your new found expertise and solutions in more than one of these roles

Interim Consultant

Internal Consultant


The Consultant Programme


Whatever you want to do, we offer flexibility . . . . . . . . to support YOUR aims and ambitions


EPI Services and Support Comprises… • 4 week methodology & software training course • Sales training (optional Sales & Marketing MasterClass) • Series of operating manuals for each EPI methodology • Joint venture project coaching programme • On-line consultant area resources • Hotline support


Consultant Training Programme Course Week One

Duration

Getting Started as an EPI Consultant

¼ Day

Sales & Marketing

¾ Day

Client Acquisition

½ Day

Developing your Sales & Marketing Plan

½ Day

Review of Sales & Marketing Plan

¼ Day

The Strategic Review

¾ Day

Strategic Sourcing

1 Day

Week Three

Review of Sourcing Event – Challenges, Issues, potential enhancements

¼ Day

Monday Tuesday

Introduction to Lean Operations

¾ Day

Undertaking a Lean Improvement Project

1 Day

Week Four

Review of Sourcing Event - Challenges, Issues, potential enhancements

¼ Day

Monday Tuesday

Continuous Improvement Methodology

¾ Day

Building an Enterprise Model

½ Day

Account Management

½ Day

Monday Tuesday

Week Two Monday Tuesday


EPI Operating Manuals

• Lean Module • Strategic Sourcing Module

• Continuous Improvement Module


Joint Venture Projects Accreditation Programme

Who?

Project Role

EPI Head Office

Client Acquisition Account Management Project Management

Associate Consultant

Project Consultancy

Fees split between EPI and Consultant


Support to Consultants

Consultant Area Resources • Brochures and Data Sheets • Demonstrations and Awareness Presentation • Proforma Order Forms (All four solutions)

• Client Manuals (as described earlier) • Consultant Forums • Cost Reduction Knowledge Base and Wiki


Support to Consultants

Hotline Support • Technical Support • Methodology Support • Office Hours • Phone or Email


Support to Consultants

Shared Software Fees • We will pay you an agreed amount for each subscriber • For software subscription fees secured by you • For software subscription renewals you secure

Subject to clients being retained, you could build up a valuable “annuity style” income


Software subscriptions, renewals and services mix Subscriptions apply when Service Agreements end … software is free to client up until that point- a great USP Some clients ….  may buy software / training for internal champion to do projects

 … leading to subscriptions and renewals

Some clients ….  may need workshop, project or interim consultant solutions

 … leading to longer term service provision We don’t yet know the mix....but will be consultant influenced


Costs of EPI Membership Commercial Terms: Associate Consulting Partners Annual Membership Fee iCEO Training & Support EPI Accelerator

Total Membership Plan £12,000 £8,000

Personalised Membership Plan £12,000 12.5% Fee Share

£5,000

£2,500

Commercial Terms: Strategic Partners Consulting Role Annual Membership Fee iCEO Training

Software Agents (no consulting activity) 20% CEO Portal commissions £2-4,000

Consulting Partners (full consulting activity) £12,000 for first user £3,000 for subsequent users 35% CEO Portal commissions £2-4,000


Costs of EPI Membership Commercial Terms: Associate Consulting Partners Annual Membership Fee iCEO Training & Support EPI Accelerator

Total Membership Plan £12,000 £8,000

Personalised Membership Plan £12,000 12.5% Fee Share

£5,000

£2,500

Notes:

Membership plan for individuals new to consultancy or independent consultants: • A minimum two year term applies to a Personalised Membership Plan. • Where a fee share is applied to independent ACP consulting work associated with CEO Portal, it does not include software commissions. • A 35% commission is paid on CEO Portal sales to ACP clients. An ACP must remain subscribed to the EPI Associate Network to receive on-going client commissions. • Joint Venture guidelines have been published by EPI and provide suggested fee share % rates for JV client consulting work.


Costs of EPI Membership Commercial Terms: Strategic Partners Consulting Role Annual Membership Fee

iCEO Training

Software Agents (no consulting activity) 20% CEO Portal commissions

£2-4,000

Consulting Partners (full consulting activity) £12,000 for first user £3,000 for subsequent users 35% CEO Portal commissions £2-4,000

Notes:

Membership plan for consultancy organisations who have the following characteristics: • An operational organisation for a minimum of 2 years • A minimum staff of 3 consultants and 5 completed client assignments (relating to business turnaround, business improvement or Lean / Six Sigma) • A 35% commission is paid on CEO Portal sales to SP clients. A SP must remain subscribed to the EPI Associate Network to receive on-going client commissions. • Joint Venture guidelines have been published by EPI and provide suggested fee share % rates for JV client consulting work.


Next Steps: You decide

EPI Differentiators Broad solution offers

Proven methodology SaaS software solution No franchise contract binding you for years No royalties to pay


Thank You for attending


The Intelligent approach to Cost and Efficiency Optimisation

Strategic Partners  

Cost & Efficiency Expertise Captured As Software: For business consultants & their clients STRATEGIC PARTNER OPPORTUNITY.