How important is it that you understand how likely you are to deliver your 2016 savings/ efficiency targets?

New year plan concept on black blackboard with coffee cup and paper plane

As we approach December, in my experience, thoughts turn to three things;

  1. The Christmas Party
  2. The Christmas Party
  3. The targets for the new year

OK, I admit that You may not be thinking about next years targets just yet, but I bet your boss is!
How have you done this year?
How does the actual value delivered to the bottom line compare with the projected value included in last year’s business plan?
Over the years, and through more than 100 client engagements, I see, time and time again, the value actually delivered from individual projects – and I mean actually impacting the bottom line – is significantly diluted from the projections initially signed off in the business plan.
The result is that throughout the year, you’re likely to be ‘chasing numbers’ and looking for more opportunities to cover the ‘potential’ shortfall.
Does this sound familiar?
The reasons for this dilution in value are varied and indeed in many cases, you may not be able to accurately assess the cause.
A recent client engagement highlights the point perfectly. They had moved vendors to achieve a 15% reduction in unit costs and, quite rightly the CFO expected this to translate directly to improving the profit margins. However, 6 months in and costs had actually increased in a large part of their network!
How could this be the case?
When we completed the assessment, it became clear that they had failed to effectively manage all four parts of the COST Optimisation Formula;

  1. the need for effective management of Change
  2. the need to Optimise Internal Processes
  3. the need to work collaboratively with their Supply Chain Partners
  4. the need to closely Track Benefit Realisation

So, as we approach the festive season, wouldn’t you be able to relax and enjoy the Christmas Party even more, if you had an accurate estimate of the value that you are likely to deliver from your 2016 projects.
OK, I admit that this may be stretching things too far – the 2016 projects may not be too high on your agenda when you’re at the party, but wouldn’t it be good to get an early estimate of your likely shortfalls so that you can;

  1. take action now to minimise them
  2. proactively plan additional projects to help you fill the gap
  3. do both and be a star in 2016!

Well, now you can!
I’ve created a simple (but very accurate) Assessment Tool, which you can use today to help you more clearly understand how likely you are to deliver your 2016 targets.
Go check it out and ‘enjoy’ the party season to the full!

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