01/20/2015

Doing More with Less: The Impact of Strategic Capability Mapping on Enterprise Resource Allocation (Sales, R&D, Manufacturing)

A PRESENTATION PREPARED TOSIKM Leaders Community

by Roberto Evaristo, Outthink, LLC

2

What are we trying to solve?

The issue: most companies do not fully employ the resources and expertise they already have.

The reason: These resources are hidden in plain sight across different business units, functions, or geographies. What one group needs may be elsewhere.

The impact: Possible overinvestment where expertise is not needed, or under-investment where needs are real. This results in wasted resources, with inefficiencies of 20-30%.

The solution: Our proprietary methodology makes visible the existence of depth and extent of resources across boundaries.

Together with clients, we co-create strategies that

• Enables them to “borrow” capabilities from other areas of the business

• Increases efficiency of recommended investments in capabilities when borrowing is not an option

• Ultimately, do more with less

3

Key Applications

Key Account Expertise Coverage SolutionsIncrease effectiveness and efficiency of ability to deliver value proposition to customer, improving relationships and leading to higher sales. Case: Over $300M in additional sales at 3M.

Cross Boundary Effectiveness ImprovementAssessment and identification of capabilities across business unit & geographic boundaries, leading to better resource utilization. Case studies: Recurrent savings of over $2M in Health regulatory affairs, $4M in manufacturing solutions, and $10M in R&D.

Process InnovationChanging the way we look at individual capabilities across the productive life-cycle. Case studies: M&A Integration with increased engagement and identification of MVP.

In the context of your strategic business plan:

• Where are your systemwide capability/resource & knowledge strengths and vulnerabilities?

• Where should you be deploying resources to strengthen your capability & knowledge base?

• What business opportunities are you missing out due to gaps in your knowledge and other capabilities?

Capability Related Strategic Questions

4

Difficulty / Specificity of KnowledgeTransfer

Task Complexity

Global Competitive Advantage Through Management of Knowledge

Tacit knowledge: transferred via face to face processes.

Example: plant knowledge

transfer resulting in speed to performance.

Strategic knowledge: Focus on scarce and relevant pieces

Example: Identification of expertise gaps in Sales (Key Accounts), Manufacturing, Engineering and

R&D. Result: speed to investment decisions.

Explicit knowledge: transferred via broad reach tools.

Example: Onboarding resulting in

speed to institutional knowledge

5© Roberto Evaristo, Outthink, 2013

Strategic Capability/Resource Mapping

Post-Acquisition Integration and/or Awareness

Creates a better solution for Strategic Account Management

Global Project Management: Skill assignment

Knowledge Retention Concerns due to Retirement Bubble

Strategic Knowledge-Based Succession Planning

What is it? Why is it important?

Graphically depicts talent/competencies:•Functionally•Geographically•Depth of Bench

6

7

Level 5 (highest)

Level 4

K1

815 is “John Doe”

Circles: People, colored by location

Squares: Areas of Knowledge

Depth of Knowledge: Line Thickness

Depth of Knowledge in a Particular Topic (K1): Product, Customer, Technology – anything

8

K1K2

Individuals with knowledge in both

areas concurrently

Depth of Knowledge in Two Particular Topics (K1 and K2)

9

K1K2

K3

Higher Complexity: Multiple Knowledge Areas

Circles: People, colored by locationSquares: Areas of KnowledgeLine Thickness: Depth of Knowledge

Capability Mapping Output

10

11

High Value Added Solutions Addressing Expertise Gaps (Sample)

• Sales– Sales Project 1: Over $600M in additional

sales– Sales Project (several): Results identified key

obstacles to growth, ultimately impacting scorecards, training and hiring plans.

• R&D– R&D Project 1: training and hiring needs to

match expansion plans– R&D Project 2: gap id for succession planning– R&D Project 3: headcount neutral

reorganization by skill-project needs with impact on milestone timelines

• M&A Integration– M&A Project 1: identification of MVP,

definition of location change strategy, retention packages

– M&A Project 2: cross-enterprise career opportunities, higher engagement, support to succession planning

• Manufacturing– Plant manufacturing performance: reduction

in production waste by 30%– Technology manufacturing group: group

inception and processes to aid long term sustainability of critical skills across plants, including career planning, training and hiring (over $5M in additional savings in first year)

Typical Process Output

Increases visibility of capabilities across silos: decision focus shifts from guesstimating inputs to applying business acumen to results

Outcome maximizes Efficiency of resource usage

Focusing Investment Allocation

Creating product and service Innovation

12

The difference is in the results

We believe in adding to the insight of decision makers.

We looked at the market place of business performance improvement focused on workforce, and saw solutions based on statistical analysis of large amounts of personnel data. However, they did not address localized individual challenges.

We saw solutions that could deliver competence and skill-based general recommendations across the workforce. However, these solutions only recognized broad risks but failed to identify opportunities and deliver actionable, low cost solutions to critical business problems.

We saw a need for a different type of solution. That is why we founded Outthink.

What we do

13

Why use Strategic Capability Mapping?

We start with the problem or opportunity.

We quantify subjective data to enable objective decisions in complex business problems.

Our outputs shift decision focus from guesstimating inputs to applying business acumen to results.

.

14

Sample Typical Results: Resource Allocation Impacts

• Alignment between skill/expertise/capabilities and investment / revenue / strategic plan / general resource allocation– Identification of temporary or virtual opportunities for resource redeployment to address

newly found gaps in expertise (say, based on shifting needs)

• Talent risk management (vulnerability resulting from single expertise suppliers, ability to deliver on R&D objectives, etc)– Actionable make or buy talent strategy

• Identification of regional expertise pockets that can support hub and spoke concept (CoE)– Cross-regional capability sharing and synergy development based on availability of expertise

• Determination of most important training and development areas

15

Key Applications

Key Account Expertise Coverage SolutionsIncrease effectiveness and efficiency of ability to deliver value proposition to customer, improving relationships and leading to higher sales. Case: Over $300M in additional sales at 3M.

Cross Boundary Effectiveness ImprovementAssessment and identification of capabilities across business unit & geographic boundaries, leading to better resource utilization. Case studies: Recurrent savings of over $2M in Health regulatory affairs, $4M in manufacturing solutions, and $10M in R&D.

Process InnovationChanging the way we look at individual capabilities across the productive life-cycle. Case studies: M&A Integration with increased engagement and identification of MVP.

Roberto Evaristo, Ph.D.Concept, Service and Product OptimizerPrincipal+1-312-375-9396 – jroberto.evaristo@gmail.com

Outthink, LLCMinneapolis, MN 55405