18 May 201518 May 2015

Doing More with Less: The Impact of Strategic Capability

Mapping on Enterprise Resource Allocation (Sales, R&D,

Manufacturing)

A PRESENTATION PREPARED TO

Management of Innovation Class, Prof. Francesca Cabiddu

by Roberto Evaristo, Outthink, LLC

What are we trying to solve?

The issue: most companies do not fully

employ the resources and expertise they The solution: Our proprietary methodology makes 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

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

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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%.

investments in capabilities when borrowing is

not an option

• Ultimately, do more with less

Key Applications

Key Account Expertise Coverage SolutionsIncrease effectiveness and efficiency of ability to deliver value Increase 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.

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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:

Capability Related Strategic Questions

• 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?

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Global Competitive Advantage Through

Management of Knowledge

Difficulty /

Specificity of

Knowledge

Transfer

Task ComplexityTask Complexity

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

Graphically depicts

talent/competencies:

•Functionally

•Geographically

•Depth of Bench

assignmentPlanning

What is it? Why is it important?

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Level 5 (highest)

815 is “John Doe”

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

Level 5 (highest)

K1

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Level 4Circles: People, colored by locationSquares: Areas of Knowledge

Depth of Knowledge: Line Thickness

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

K1K2

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Individuals with knowledge in both areas concurrently

Higher Complexity: Multiple Knowledge Areas

K1K2

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K3

Capability Mapping Output

Circles: People, colored by location

Squares: Areas of Knowledge

Line Thickness: Depth of Knowledge

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High Value Added Solutions

Addressing Expertise Gaps (Sample)

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

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

– 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%

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– 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

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

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The difference is in the results

We believe in adding to the insight of decision makers.

What we doWhy use Strategic Capability Mapping?

We start with the problem or 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 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.low cost solutions to critical business problems.

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

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business acumen to results.

.

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 – 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

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• 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

Key Applications

Key Account Expertise Coverage SolutionsIncrease effectiveness and efficiency of ability to deliver value Increase 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.

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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 Optimizer

Principal

+1-312-375-9396 – jroberto.evaristo@gmail.com

Outthink, LLC

Minneapolis, MN 55405