Wilson Perumal & Company Complexity Workshop
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Transcript of Wilson Perumal & Company Complexity Workshop
WP&C Complexity WorkshopBuilding the Case for Business Simplification
2Wilson Perumal & Company, Inc.
Complexity is the byproduct of an increasingly intricate business environment
New Channels & Formats
Expanding Geographies
New Acquisitions
Expanded Portfolios
New Customer Expectations
More Regulation
IncreasingCompetition
More Suppliers
How did it get this way?
ComplexityMore ProductsNew Processes
Bigger OrganizationsLess Responsiveness
3Wilson Perumal & Company, Inc.
Complexity diminishes the value of scale
“Individual productivity”
Volume
Cost
Pre-Industrial Age
• Energy limited by muscle power (man or beast)• Little scale efficiencies• Efficiency driven by strength
and/or speed of individual working unit (narrow range)
“Economies of Scale”
Volume
Industrial Age
• Revolution in energy and machinery (steam, electricity, oil) create significant scale economy
• Efficiency driven by volume—”larger is better” (nearly unlimited range)
“Complexity Costs”
Complexity
Post-Industrial Age
• Significant growth in variety drives geometric growth in “complexity costs”• Efficiency and affordability driven
by balance between volume and complexity (complexity is the opposite of scale)
Complexity is why many larger enterprises are finding it hard to compete against smaller companies and even upstarts
Wilson Perumal & Company, Inc. 4
Moreover, complexity often starts a vicious cycle that focuses companies inward, away from customers
Complexity increases
Poor execution
Loss of control
Poor business results
More people and processes
Common drivers:‒ Too many products/services‒ Overreach on markets/geographies‒ Unfinished M&A integration‒ Patchworks of technology‒ Multiple ways of doing things
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The path to simplification is straight forward, but the first step is often overlooked
Understand the sources and cost of complexity
Eliminate the bad complexity
Minimize the cost to deliver good complexity
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Making the effort to clearly identify the sources and impact of complexity is too often an overlooked or hastily performed first step
Wilson Perumal & Company, Inc.
WP&C’s Complexity Workshop helps identify the sources of complexity and value of the opportunity
What it is
How it works
What you get
• Interactive, full day, workshop facilitated by Wilson Perumal & Company. Designed to identify the most disruptive complexity drivers in your business
• Includes collaborative working sessions to leverage internal expertise and quickly reach a robust understanding of business complexity
• Includes unique WP&C techniques to reduce complexity, with case examples
• Leadership alignment on the biggest sources of complexity• Estimate of the ‘size of the prize’ to simplify the business• Recommendation of next steps to drive initiative forward• List of potential quick wins for immediate implementation and benefit
• Traditionally full day sessions, though can be longer/shorter depending on specific needs of your business
• Best suited for a cross-functional group of senior business leaders with a ‘change agent’ mentality
• Can be tailored for specific complexity issues, decided in advance
Wilson Perumal & Company, Inc.
Sample Agenda
9:00 – 9:15am Introduction
9:15 – 10:45am Complexity overview
10:45 – 11:00am Break
11:00 – 12:00pm Breakout session
12:00 – 1:00pm Lunch
1:00 – 2:15pm Deep dive topic
2:15 – 2:30pm Break
2:30 – 3:30pm Breakout session
3:30 – 3:45pm Break
3:45 – 5:00pm Report-back and wrap-up
Summary of the sources and impacts of excess complexity
Discussion on the sources of complexity in your business
Deep dive into company specific complexity levers
Working session on the size of opportunity and next steps
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We help you gain clarity on key topics fundamental to performanceOur focus topics range from gaining clarity on broad, strategic questions…
...to addressing specific, cross-functional challenges
• How do we reduce time-to-market?• How do we decrease functional overlap?• What is our complexity adjusted profitability?
Does our portfolio of products and services create complexity affecting how we price, sell, and deliver?
Does our operating model design inhibit the effective and efficient execution of our strategic goals?
In what markets/channels are we most efficient and where do we need to take a different path?
Are our business model and supporting operations scalable to enable profitable growth?
• How do we increase our product pipeline?• How do we improve order-to-cash?• Can we improve specific channel profitability?
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We bring unique perspectives and real-world examples of application for results
Understand the concepts… …and application for real-world results
Products that create profit
Products that “lose” profit
0% 25% 50% 75% 100%
100%
300%
% Total Products
0%
% TotalProfits
Organization
Value add
Non-value add
Sources of complexity
Costs of complexity
Impact of complexity
Learn how organization complexity was identified to lead to a $17M benefit from simplification
Satellite Communications
See how complexity-adjusted costs revealed profit concentrations and how portfolio optimization improved EBIDTA by 15%
Industrial Equipment
Understand how complexity led to channel overlap between retail and wholesale outlets negatively affecting operating profit by 10%
Paints and Coatings
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A complexity diagnostic is often the first step to determine which levers will drive the most value
Profi
tabi
lity
Asse
ssm
ent
Ope
ratin
g M
odel
Si
mpl
ifica
tion
Portf
olio
O
ptim
izati
on
Chan
nel &
Mar
ket
Alig
nmen
t
Deep dive on key complexity levers
Proc
ess
Rede
sign
Complexity Workshop / Diagnostic
Reduced Complexity and Costs
Simplified & Aligned Organization
Accelerated Profitable Growth
Create and capture step-change results
Build a case for action
Wilson Perumal & Company, Inc.
Whether through workshops or projects, our goal is to bring insight and drive action
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“This was a quick and painless way to understand our true product profitability, and it challenges how we think about our business. I am extremely pleased with the results.” — Fernando Palacios, EVP and Chief Integrated Supply Chain Officer, MillerCoors LLC
“WP&C’s approach to complexity is the most direct route to an efficient, profitable enterprise.” — Ed Lonergan, CEO of Diversey Inc.
“WP&C is helping us transform our business. Their insights are phenomenal!”
— David Hoogmoed, President, Land O’Lakes Purina Feed
“You are analytical and smart, but you also get things done!”
— Head of Commercial Development,Leading EU Retailer
“If you take all six times [past projects] where we looked at this, over the past ten years, and rolled them all up together, and multiplied by ten, it would still not be as good as this work.” — CEO, Top Five Financial Institution
“This has been a landmark project for [us]…you were exactly what we needed.”
— Lead Strategist, Top-5 Asset Mgmt. Firm
© Wilson Perumal & Company, Inc. www.wilsonperumal.com
North America EuropeOne Galleria Tower
13355 Noel Road, Suite 1100Dallas, TX 75240
972-716-3930
Longcroft House2/8 Victoria AvenueLondon, EC2M 4NS
+44 (0)203 206 1496
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