make better operations decisions to achieve better gross margins
TRANSCRIPT
True North by OnTracAn engaging simulation for Operations Managers
Make better operations decisions to achieve better gross margins
An Award Winning Company
About usAn award winning company that provides operations management consulting, training and software that helps ITES operations improve operational efficiencies. Estd: 2004, 100+ top tier clients, Global delivery capabilities, 100% referral rate
Accenture, Aditya Birla Minacs, ADP, Allianz Cornhill, American Express, Bank of America, Barclays, Cognizant, Dell, Deutsche Bank, Firstsource, GE Money, HCL BPO, HP, HGSL, HSBC, IBM, Infosys, Intelenet, Interglobe, Maersk, Royal Bank of Scotland, RR Donnelley, Siemens, State Street, Syntel, Telus, Unisys, Wipro, WNS, Xchanging…..
“Most Proficient Partner Award” from GE Money Servicing 2009
“Most Significant Contributor to the BPO Industry Award” at Asia Outsourcing Excellence Awards in Singapore, 2013
“Strategic Enabler for BPO Award” at BPO Excellence Awards in Mumbai, 2013
The Need
Companies want managers to
better connect their operational
decisions to financial
outcomes
Manage Gross Margin, not just
operational metrics
Managers need to take better operational decisions, some of which may seem counter intuitive, but will help better manage
gross margins of their process!
The Solution
Educate managers on a financial model in a simple and easy way
Get managers to develop the financial model using familiar operational parameters
Cement learning through multiple rounds of application in a simulation
OnTrac Simulation
San Martin Inc. is undergoing restructuring and wants a partner to handle a large process.
THE CLIENT
ACE Service Inc. is a service provider that is
serious about winning San Martin’s business.
THE SERVICE PROVIDER
OnTrac Simulation
LEARN ABOUT• MSAs and
Contracts• P&L
Statements• Direct and
indirect costs• Gross
Margins
PLAN THE RUN• Create an
Ops plan (P&L)
• Make right assumptions to secure good gross margins
• Win the pilot
SENSITIVITY• Do sensitivity
analysis• Become
familiar with impact of Ops levers on gross margins.
RUN THE PLAN (Simulation)• Run pilot at
weekly level• Measure
impact of ops decisions on gross margin
• Repeat for 7 months
Participants are managers at ACE Services Inc. ACE expects them to:
Stability of planned gross margin is key to winning, during the simulation
Sample Screen Shots
Basic Data: Participants are provided with contractual information, HR data and other operational information to help them make right decisions.
Sample Screen ShotsPlanning the run: Through a series of steps, participants create a plan and demonstrate that the operation can be run with good Gross Margins. Each step is broken down into 3 or 4 assignments that require participants to make various decisions and assumptions.
Sample Screen ShotsSensitivity Analysis: After preparing the plan (the P&L Statement), participants can check the Gross Margin’s sensitivity to various parameters. This helps them understand the degree of impact that these parameters (or levers) impact the Gross Margin.
Change levers to see impact on Gross Margin
Sample Screen ShotsSimulation: Participants need to run the pilot in the simulation for 28 weeks. They need to do advance planning for each week by considering historical data and forecasts. As the weeks progress, they need to make real time adjustments to manage their gross margins.
Volume Forecas
ts
Week 2 Actual Volume
and other data
Week 2 Forecas
t Volume
and Plan
Button to Run the
week after creating
plan
Future events to plan for
Buttons for planning the run
Logical arrangeme
nt of elements to aid in planning
Sample Screen ShotsAnalytics/Data Visualization: As the participants run their simulation, they will be able to view key parameters in a graphical format. Information is captured at a weekly level.
Sample Screen ShotsAnalytics/Data Visualization: Gross Margins are captured at a monthly frequency, along with the entire P&L for each month.
Other Information
Customization Data can be customized to suit any process/industry. Parameterizable for both voice and data processes. Inventory carryover possible for data processes. Works for FTE based and transaction based contracts.
Target Audience Profile
Operations Managers, AVPs, VPs of operations. Other people who can benefit are from WFM, Finance, Admin and Training.
Delivery Can be delivered on site. Train The Trainer (TTT) possible.
Instructor Led Program
Uses an Excel based simulator. Basic knowledge of excel required.
Can be run for a single participant or for up to 15 participants. For larger classes, groups of 3 participants are typically formed. E.g. 15 participants are divided into 5 groups of 3 each.
Requirements Computers/Laptops with internet connection for each group.Workbook for each participantNotepads and pensProjector for facilitator
Measurement of EffectivenessThis program provides a skill that enhances the quality of decisions the participants make on a day to day basis. For example, the decision of when to raise a hiring request, or increase coaching time despite of high work volume will yield results over time. Therefore, the following methods are suggested to measure effectiveness:Method Description
Behavioural Survey Conduct a pre and a post behavioural survey with the participants’ managers and other stakeholders he/she interacts with. The post behavioural survey should be conducted 2 months after the pre survey.
Measure metrics Take a baseline of key metrics before the participant attended the program. Measure the metric values again after a period of 2 months. (Note: there may be other factors affecting improvement or deterioration of metrics. Impact of this program cannot be specifically isolated)
