This document discusses how to effectively purchase business improvement programs. It notes that traditional consulting focuses on advice, while business improvement aims to implement changes and achieve sustainable results. Successful business improvement requires measuring progress, ensuring behavioral changes stick through training and coaching, and evaluating financial and operational improvements. The knowledgeable buyer will focus less on daily rates and credentials, and more on a partner's ability to deliver measurable outcomes through a phased, collaborative process with ongoing management.

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© Celerant Consulting
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The knowledgeable buyer and the impact on
quality of Business Improvement Programmes
Cathy Johnson, Celerant Consulting

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Business improvement purchasing – changing the way
services are purchased and performed
Consulting Advice
“Defining what and how”
Business Improvement
“Making the change happen”

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Challenges of pitching Business Improvement into
Procurement
Risk/Reward, commitment to results,
return on investment
Daily rates/rate cardsSpend criteria
Sustainable Behavioural change
Results need measurement & monitoring
to ensure they hit the bottom line
Advice, expertise
Results are the advice and
conclusions
Benefits/
outcomes
Evaluation of
consultancies
Needs
identification
/definition
Demand
management
Criteria
Selection of the right partner to co-
create the solution – confidence in the
partner to deliver the required outcomes
(more flexibility on the activities)
Confidence in the quality of the
presentation at the pitch and
the individuals present
References (evidence of how)Credentials (evidence of what)
Dynamic phased process to increase
certainty of results
Often consultant led, discreet
process at single point in time
Ongoing contract management,
collaboration with Operation
Separate roles for operations
and procurement
Purchasing
Business Improvement“Traditional” Purchasing

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The emotional journey of change
Where advice
activity stops
Where Business
Improvement activity starts
Results
Results

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Business Improvement projects are not always well
defined at the outset
1. Optimism - the
start of the journey
3.The defined
results
2. The journey of business improvement
Simple to
define
Reasonably
simple to define
Difficult to define & measure
but critical to success

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Where Business Improvement purchasing often focuses
MANAGEMENT
SYSTEMS
PROCESSES
PEOPLE &
ORGANISATIONS
GetGetGetGet
BuyBuyBuyBuy----inininin
BEHAVIOURAL
CHANGE
SUSTAINABLE
RESULTS
Mapping key
processes
and applying
appropriate
“lean” and 6
Sigma type
tools to
generate
improvement
# people
trained in
tools and
techniques
to which
level The Celerant 5 Box Model®
GetGetGetGet
CommitmentCommitmentCommitmentCommitment
Make itMake itMake itMake it
HappenHappenHappenHappen
Make itMake itMake itMake it
StickStickStickStick
Financial
Operational
Cultural

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The critical success criteria for successful Business
improvement engagements lie in...
MANAGEMENT
SYSTEMS
PROCESSES
PEOPLE &
ORGANISATIONS
GetGetGetGet
BuyBuyBuyBuy----inininin
BEHAVIOURAL
CHANGE
SUSTAINABLE
RESULTS
The Celerant 5 Box Model®
GetGetGetGet
CommitmentCommitmentCommitmentCommitment
Make itMake itMake itMake it
HappenHappenHappenHappen
Make itMake itMake itMake it
StickStickStickStick
Financial
Operational
Cultural
Installing
an effective
MCRS®;
KPI’s and
meeting
structures,
escalation
process and
performanc
e related
behaviours

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Discovery Baseline Analysis Design & Deploy Implement
To 1 week 4-6 weeks 8-16 weeks 20-30+ weeks
High level
opportunity
assessment,
prioritisation
and approach
Validate business
case, primary
drivers and
implementation
plan
Implementation
Solution Design
and Mobilisation
Install new ways
of working and
ensure
sustainability
Divide the decision process into more manageable chunks
An example phased approach to defining BI outcomes

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Sustainability – leaving behind an organisation capable of
continuous performance improvement
Engage Training
Guidance
coaching
Coaching
coaches
Coaching
sustainability
CONSULTANT TEAM:
PROJECT FOCUS
CONTINUOUS IMPROVEMENT:
EMBEDDED IN ORGANISATION
DESIGN IMPLEMENTANALYSIS SUSTAIN
Competence Development in Client organisation

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Defining and tracking the results to ensure the return on
investment
Area / Process Issue / Problem Statement
Baseline (Financial
workwith)
Machine Availability: Excess time beyond
required is required to complete
mandatory washing / cleaning of
machines
£131,363 4% 5% £4,926 £6,897
Management skills:
Lack of tools on how to solve and find
root cause on daily/weekly issues.
£131,363 4% 5% £4,926 £6,897
Machine Availability: Excess time beyond
required is required to complete routine
changeovers
£131,363 5% 7% £6,568 £9,195
Machine Availability: Excess time beyond
required is required for machine
shiftchanges
£131,363 3% 4% £3,284 £4,598
Machine Availability: Excess time beyond
what is required to do first line
maintenance
£131,363 3% 4% £3,284 £4,598
Machine Availability: High volume of
unplanned machine downtime due to
lack of input material and machine
breakdown
£131,363 3% 4% £3,284 £4,598
Machine Rate :Losses due to inadequate
standards on how to utilize machine
capacity
£131,363 5% 7% £6,568 £9,195
Area % Impactability
Min / Max
Identified Financial Benefits
Min / Max
Production
Effectiveness
Sum 32,841 45,977
Evaluation Financial Benefits are tracked weekly in an evaluation tool
agreed with the business case
The Overtime budget was recently approved and can begin measuring Overtime against target.
Results Planning:
Where will the financial and
operational improvement
come from
Evaluation Methodology:
How we know the financial
and operational
improvements are actually
hitting the bottom line
Area / Process Issue / Problem Statement
Baseline (Financial
workwith)
Machine Availability: Excess time beyond
required is required to complete
mandatory washing / cleaning of
machines
£131,363 4% 5% £4,926 £6,897
Management skills:
Lack of tools on how to solve and find
root cause on daily/weekly issues.
£131,363 4% 5% £4,926 £6,897
Machine Availability: Excess time beyond
required is required to complete routine
changeovers
£131,363 5% 7% £6,568 £9,195
Machine Availability: Excess time beyond
required is required for machine
shiftchanges
£131,363 3% 4% £3,284 £4,598
Machine Availability: Excess time beyond
what is required to do first line
maintenance
£131,363 3% 4% £3,284 £4,598
Machine Availability: High volume of
unplanned machine downtime due to
lack of input material and machine
breakdown
£131,363 3% 4% £3,284 £4,598
Machine Rate :Losses due to inadequate
standards on how to utilize machine
capacity
£131,363 5% 7% £6,568 £9,195
Area % Impactability
Min / Max
Identified Financial Benefits
Min / Max
Production
Effectiveness
Sum 32,841 45,977

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The underlying journey means measuring progress along
the way is critical to ensuring the results are delivered
LEARNING/
EXPERIENCE
DEVELOPING PRACTICE AND LEARNING PERFORMING
MISTRUST
Watching
DISBELIEF
Protecting
HOPEFUL
Contributing
ANGRY
Withdrawing
UNCERTAINTY
Co-operating
CAUTIOUSLY
POSITIVE
Engaging
SELF-CONFIDENT
Giving
PRIDE
Take-over
ACCEPTANCE
20%
COMPLIANCE
60%
OWNERSHIP
100%
USE
40%
UNDERSTANDING
80%

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So a knowledgeable buyer will need to shift the criteria
and goal posts for comparison and selection
Risk/Reward, commitment to results,
return on investment
Daily rates/rate cardsSpend criteria
Sustainable Behavioural change
Results need measurement & monitoring
to ensure they hit the bottom line
Advice, expertise
Results are the advice and
conclusions
Benefits/
outcomes
Evaluation of
consultancies
Needs
identification
/definition
Demand
management
Criteria
Selection of the right partner to co-
create the solution – confidence in the
partner to deliver the required outcomes
(more flexibility on the activities)
Confidence in the quality of the
presentation at the pitch and
the individuals present
References (evidence of how)Credentials (evidence of what)
Dynamic phased process to increase
certainty of results
Often consultant led, discreet
process at single point in time
Ongoing contract management,
collaboration with Operation
Separate roles in the operation
and procurement
Purchasing
Business Improvement
Purchasing
Advice

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Contact
Cathy Johnson
Vice President
+44 783 627 3799
cathy.johnson@celerantconsulting.com