K2 Consulting Partners - Business and IT Consulting
Click to expand on the relevant case study:
Budget/Spend/Scale: $150m, involving over 400 people
Role: The role taken by Mike Hunter was to head up the largest core banking transformation project in North America covering all systems, processes, infrastructure, policies and organisation, for both the retail and commercial banking operations for lending and deposits.
What we did: This involved evaluating and selecting COTS core banking software from all the major software providers; building the business case for the largest spend the bank had ever authorised; building consensus across the bank from front office through to senior executives for the business case, the scope and the recommended solution; choosing the preferred supplier that then led to the implementation.
The result: The result was the delivery of a world class core banking system that fundamentally improved the time and cost performance of processes throughout the banks activities. The bank moved from an old technology that was no longer supportable; the 100+ employees who became part of the delivery team increased their skills and motivation; and IT component of Time to Market for the launch of new products was reduced from 9 months to a few hours
Barnsnape Consulting have worked with this client over the three year journey to define and launch this business transformation programme enabled by SAP. The scope of the programme included:
Barnsnape were involved with this programme from the start; working with the Directors to crystallise the vision and to understand what the business would look like in five years time after the programme was completed and fully embedded. To define this transformation Barnsnape undertook seven key roles roles, from helping establish the business strategy to building the business case for delivery of the programme.
Following approval of the programme, Barnsnape supported the procurement process by analysing the risks and differences between competing tender responses received. Ultimately, this analysis generated one of the key criteria for the eventual selection of the Systems Integrator.
Once the programme had been initiated, Barnsnape Consulting created and ran the governance and programme control across the whole of the programme. As a consequence Barnsnape took 7 leading roles, Head of Control, Head of Governance, Independent risk assessment and contingency management, Planning, Business Design, and Management of external assurance and audit.
By undertaking these roles, Barnsnape delivered expert client side advice to the client in facing off to the appointed Systems Integrator.
Outcome and Benefits
Barnsnape established the ‘what and why’ for the programme and then went on to ensure that it was delivered within the originally agreed parameters. The three critical success factors were:
Budget/Spend/Scale: $500m with a team of +/- 30 people.
Role: The role (Mike Hunter) was to advise the CIO, and CFO, on how to re-organise and re-structure the IT function to make it more effective and efficient.
What we did: The team initially analysed the cost base, conducted extensive benchmarking, introduced and implemented ITIL, explored and introduced outsourcing opportunities, and introduced a new IT organisation. The IT budget was $500m but costs were out of control and investment dollars were being spent inappropriately. So the team then conducted extensive benchmarking involving over 1500 companies.
The result: The implementation of a new more effective and efficient IT organisation with a 20% cost reduction.
Role: Mike Hunter was asked to help transform the company’s financial return on sharing its knowledge to the global market on its products, services and how they transform businesses.
What we did: This involved building consensus on what we needed to achieve and then we looked at the way knowledge was being shared externally. The team evaluated knowledge governance, created the concept of “valuable learning information”, examined the 170+ portals that were being used and, looked at old, redundant and dangerous information. Finally, we implemented a streamlined set of portals, implemented a new governance process, implemented a new external fee structure, and established a new marketing strategy.
The result: was a new $1 billion revenue stream and control over old dangerous information.
Budget/Spend/Scale: 35 data centres to 2 shared data centres
Role: Mike Hunter was asked to head a project recovery assignment after 3 years of failure where the client had worked with another Global IT Services firm. The project was to create 2 shared data centre as part of a wide sweeping business strategy change. The CIO had been replaced and the local operations (approx 35 countries offices) were vocally opposed to the project.
What we did: The first step was to start a communications programme to get the “right” message across as to why this was critical to the Bank. This resulted in the local country offices not only supporting the project, they volunteered staff and they agreed to pay for the project. This was a major step forward in the strategy to ensure all data and information was better controlled and consistent, and allows the customer facing offices to focus more on customer service with the right, timely information.
The result: Finally, the 2 data centres were implemented on time and budget.
Budget/Spend: £20m with a team of +/- 45 people.
Role: The role for Mike Hunter was to lead a large team to introduce real tangible improvements into the dockyard to support the refit and refurbishment of a new class of nuclear submarine.
What we did: The initial project was to deliver a £35m ERP project, but having interviewed the senior stakeholders Mike advised the client that they would not achieve their deadline or the desired results by implementing an ERP. The dockyard had to introduce 60% performance improvement to ensure that the refit of the 4 nuclear submarines was profitable and ensure that the dockyard stayed operational; but more importantly, to ensure that the refit programme ran on time so that a nuclear submarine did not run out of power on the bottom of the Atlantic. There were multiple, complex stakeholder and employees/processes from recently merged organisations that the team needed to manage.
The result: The team implemented a real, tangible 60% improvement in 15 months, and the refit ran on time and profitably.
Budget/Spend/Scale: £15m with over 100 people involved.
Role: The role (headed by Mike Hunter) was to firstly lead a Y2K assessment across all European operations and then to implement the recommendations which included an ERP.
What we did: The Y2K project showed some significant exposures with the integration of the various country systems and it was decided to implement an ERP (Baan). The European senior management and the US parent strategy was to implement the systems in a common way across Europe BUT the culture was very localised and opposed to the strategy. We worked with the various countries in Europe (France, Germany, the Netherlands, UK, Spain, and Belgium) to create “common” processes and system set up.
The result: The team implemented the European consistent framework and the first two countries went live (France and the UK) before the project was handed over to a full time client team.
Budget/Spend/Scale: £500m with over 200 consultants and similar DHL staff
Role: Over a 3 year period Mike Hunter helped the client deliver a number of key projects. His role was as a trusted advisor and overall programme manager of a number of significant change projects.
What we did: i We implemented a critical airline inventory system to prevent an audit qualification; a new ERP at their Belgium hub operations; a new global consolidation package that was implemented across 130 countries in 4 months; a 36 country roll-out of an ERP; and the quality management and programme management of a $330m billing system replacement. The total value of all the projects was +/- $500m. The new consolidation system was mission critical due to a $7billion investment deadline.
The result: We delivered the Consolidation system in “record” time and allowed the client to receive a $7billion investment from two key stakeholders.
Our client, a major multi-utility with several million customers, engaged Barnsnape Consulting to manage the definition of a large business change and systems replacement programme.
Business Design Approach
Several senior managers were seconded from their normal roles on a full time basis to form the business design team – facilitated by Barnsnape. A number of executive workshops were also included in the schedule with all key decisions being made by the main board.
There were 9 key stages in the Barnsnape process.
Defining the Business Model
In order to ensure that any business design is fit for purpose, we must first ensure that the strategy and business model are fit for purpose. A business model describes how the company intends to make profits and is centred on the company’s value proposition.
Building on existing customer strategy, the Business Design team developed this information to populate a business model framework, that once validated by the main board, could be used to inform further analysis.
Resilience for Anticipated Future Scenarios
The client senior management team undertook various scenario planning exercises in workshops to consider the Political, Economic, Social, Technological, Legal and Environmental changes that might impact or provide opportunities for their business in the future. This analysis generated ‘what-if’ scenarios and the impact on the proposed business model for consideration in future business planning.
Developing the Business Process Model
Barnsnape’s usual process modelling convention to facilitate this type of high-level discussion level is known as a value-added chain.
The Value Added Chain is recommended as an entry into end to end processes modeling.
A level three process model for the future business was agreed by the main board along with a more readily accessible high level schematic of the business – now used widely across the business.
The team considered how each business process would need to perform in the future and also in all of the anticipated what-if business scenarios. In this instance, about 500 high level requirements were identified with a high level of confidence that these will be resilient to future market conditions.
Each requirement was also considered in terms of the proposed systems ability to deliver the required capabilities. We noted where desired functionality would add risk, complexity or cost to the programme. These early trade-offs were discussed in board level workshops – resulting in key changes to the project scope and mandate.
Holistic Organisational Design Considerations
Barnsnape believe strongly that successful programmes move people, process and technology in harmony. All aspects of organisational design should be considered:
On this occasion, we incorporated 8 key aspects into the programme using Barnsnape’s preferred Organisational Design Framework.
Outcome and Benefits
Because the project team comprised senior managers drawn from all aspects of our customers business, working together, we were able to agree on the one vision of the future. This vision incorporated an agreed strategy, business model, business process model, high level requirements, key tradeoffs, and approach to organisational design
These agreements will significantly reduce the risk of project failure.
In addition, this team process surfaced several valuable innovations that our client believes will enhance their future competitive position.
The Strategic Water Asset Planning Solution (SWAPS) marks a major step forward in asset lifecycle management in the water industry. SWAPS can simultaneously be an engine to evolve business strategy, a methodology and an information technology tool. It represents a paradigm shift towards risk based asset management. SWAPS is a unique solution that provides a step change in planning by:
SWAPS aligns projects with the company’s goals by linking investment to customer and environmental benefits. Tests on real data have revealed the potential of SWAPS to fundamentally change the way assets are invested in.
Outcome and Benefits
SWAPS promises to bring enormous efficiencies to the way companies spend public money in the UK.
Water companies in the UK struggle to link investment to environmental outcomes such as pollution and reduction in their carbon footprint. SWAPS has made it possible to target investment towards the objectives set out in the European Environmental and Habitats directives. Money saved through investment efficiency will generate funds to meet ever toughening environmental standards.
SWAPS transparently funds projects based on their benefits to customers and society (the environment). The benefits are monetised to assess value for money and eventually drive investment. Most importantly, SWAPS identifies risks before they occur rather than directing investment to control them afterwards. This not only lowers the cost of failure substantially, but prevents damage to the environment.
The Client is a wholesale company supplying food, drink and catering equipment mainly to the restaurant and catering industry in the UK, Sweden and France. It provides merchandising, inventory management and contract logistical services to corporate, national and independent channels.
This Private Equity Owned organisation decided to launch a major business and IT transformation program to deliver a next generation platform to grow the business and integrate the multiple brands and business units acquired over the past 12 years. The programme included an SAP driven transformation programme covering business process, IT applications, infrastructure and networks.
Value & Benefit Delivered
There was huge a RoI in having Searchlight helping us define the financial case for a business transformation programme underpinned by a green field ERP template versus a more technically challenging upgrade with minimal process changes. Their insight and experience accelerated what would have been a 12 month exercise to 4 months, and they effectively guided us through the noise of competing systems integrators and set up our on-going programme for success” ……..CEO, Food wholesale business
Fiberweb is a global manufacturer of a wide range of nonwoven fabrics and products for specialty industrial, construction and hygiene applications. Fiberweb‘s products are found in many crucial applications: filtration, civil engineering, medical devices & products, railways, aerospace, buildings and agriculture. Fiberweb operates 8 production sites in 6 countries.
Fiberweb decided to launch a major business and IT transformation programme to accelerate Fiberweb’s progress towards its medium-term financial goals by creating a best-in-class, global systems platform, to enable transformational improvements in business development, operational management and financial control.
Value & Benefit Delivered
Searchlight provided much-needed direction & focus to ensure that decisions were informed and timely. At all times, the SLC team added value through the benefit of their experience of multiple global programmes such as ours, helping us to focus on accelerating delivery whilst maintaining the quality of outcome. Kate Miles CFO
Situation : Global restructuring objecives established by strategic planning efforts required the rapid business process mapping; defining new ways of working; and the implementation of new ways of working in order to meet a globally mandated platform / franchise strategy.
Solution : Client engaged Newton Consulting, based on broad and deep industry knowledge, global reach, strategic service offerings, and strategic capability alignment thought leadership. Scope covered all areas of operations.
Result : Over 104 process groups were mapped resulting in a future state definition (process and organisation) to streamline business operations on a siginificantly reduced staffing structure. Globally mandated staffing reductions were achieved with no negative impact on revenue or margin
Situation : A strategy was defined to roll-up several federated business units acquired over a 5 year period into a group operating model. In addition to top line growth through identified brand, product, and customer strategies, the client also needed to create a common operations platform to achieve cost structure economies of the new group model.
Solution : Newton Consulting defined the operational integration plan that would achieve cost reductions while maintaining current service levels to internal and external customers. the plan included order fulfilment, customer service warehouse/distribution and finance / accounting operations processes and technologies.
Result : Internal best practices leveraged from the units created a sense of ownership and pride. An exiting ERP system was selected to support the newly defined processes and ways of working. Cost savings objectives were achieved ahead of schedule.
Situation : 247 locations across 6 business segments in North America supported by disparate and redundant processes and systems. Cost improvement and efficiency potential existed but there was no plan to release the value.
Solution : Newton Consulting defined the value and business case that could be obtained through a detailed road map of initiatives. The same 5 phase approach proposed for Black Box was used to accomplish the objective on time and budget.
Result : 21% cost reduction potential was identified in a 24 month road map. Year 1 achieved a 10.5% reduction and year 2 achieved the balance with an additional 3% cost reduction, which was achieved by the client leveraging the tools and methodologies gained during the project.
Restructuring of organisations responsible for £150bn 10-year spend on military equipment and systems.
A team of change, process and systems consultants peaking at 14 people, delivering over a 9-month timeframe
Steve Bannister was appointed to recruit and lead a ‘rainbow’ team of transformation, change and process re-engineering consultants to support the MOD in designing and delivering a new approach to military capability strategy and planning.
The team had to deliver a major programme of organisation and process change across multiple large-scale and geographically dispersed organisations – Navy, Army, Air Force, Joint Forces Command (JFC) and Strategic Programmes. This had to be achieved in extremely tight timeframes: the new processes had to be designed within three months and then implemented within the remaining five months. Furthermore, this change programme was at the heart of the MOD’s overall portfolio of transformation initiatives, driven out of the recently proposed Levene Defence Reforms, and therefore of strategic importance to the future direction of the department. In particular, the programme’s main aim was to disaggregate the responsibility for the £150 billion 10-year spend on military capability, i.e. to take an existing highly centralised model and distribute the responsibility to each of the four Commands, one of which, JFC, had only recently been established.
Steve’s underlying approach to solving this significant challenge was based on a set of key principles:
Business Architecture: establish an underlying business architecture to provide the foundation for the change. To this end, the team developed a Generic Capability Management (GCM) model that supported an overall Target Operating Model (TOM) for the Fin-Mil-Cap changes.
Change Agents: assign individual, dedicated change agents to each of the key organisation units, i.e. the four Commands and Strat Progs. In this way, the team could establish credibility with each distinct organisation by understanding and resolving their unique issues, whilst ensuring a tight link to the central design authority team.
Management Rigour: apply a rigorous programme and project management approach to the work. For example, the work was broken down into key logical phases and stages, and inter-dependencies with other workstreams were identified and proactively managed.
Practical Guidance: As well as developing traditional operating model design artefacts – including process models, organisation designs and information flow models – the team also developed a set of practical user guides, accessible electronically, which were tested and trialed with the end users before being rolled out to the Commands and other users across the MOD.
A further key factor in the success of the programme was the early, intensive and consistent involvement of the user community and senior MOD leadership. The team established a regular drumbeat of monthly, weekly and, in some cases, daily interventions to ensure that the users were actively involved in designing the solution and making sure it would work for their specific circumstances.
Steve and his team delivered all the required outputs on time and under budget. The disaggregation of capability management to the Commands achieved initial operating capability (IOC), as planned, on 1 April 13.
Approximately £8m annual ICT service/programme spend; approximately 60 staff involved.
The role (headed by Steve Bannister) was to take over management of the existing ICT service and ICT transformation programme; establish a new ITIL-based service approach; and deliver changes to the service, reduce cost and improve performance.
At the outset of the programme the end-users were suffering from poor quality service, high service costs, and a lack of clarity of leadership and accountability.
The first step was to develop the transformation strategy based on a) implementing the industry-standard ICT best practice framework (ITIL), b) introducing new leadership and skills, and c) restructuring the organisation to use the best mix of on-site, off-site and off-shore resources. A critical component of our success was establishing the buy-in and commitment of the leadership team from the outset, and clear communication throughout the programme. A full programme governance structure was put in place with clear milestones and timetable.
The programme was implemented on time with a reduction of 10% in the cost of the service and an improvement in customer satisfaction from 60% to above 80%.
RSCH is a general hospital, now with Foundation Status, serving a population of over 1.2m people, with 3,000 staff and annual income of around £250m. A four-person consultancy team delivered the IT strategy in about eight weeks.
The Royal Surrey County Hospital (RSCH) needed to develop an IT strategy in very short timescales. The IT strategy was a key component of the Trust’s integrated business plan (IBP) which had to be submitted as part of its application for Foundation Trust status. Moreover, the existing outsourced IT service was on the point of being closed down and RSCH faced a ‘burning platform’ with its core Patient Administration System (PAS) about to come off vendor support.
Steve Bannister was commissioned to lead a team of management consultants and RSCH staff to deliver the IT strategy – from kick-off to completion in eight weeks. The team had a broad range of expertise including: hospital clinical and management processes; NHS applications and IT infrastructure; and IT service delivery, governance and programme management.
The IT strategy was business-driven from the outset. The team started by identifying the RSCH’s key business drivers and objectives and used this as the basis for developing a business operating model, covering the organisation structure, processes, data and key user characteristics. In parallel, the current (‘as-is’) organisation, IT infrastructure, applications and service delivery model were documented, to highlight the key issues and identify opportunities for improvement. The team pulled together the business operating model and current IT assessment to develop a first-cut Enterprise Architecture (EA) model for the RSCH. The EA model set out a clear blueprint for implementing the strategy and also provided the RSCH with a ‘living document’ for ongoing development and update.
A high quality and comprehensive IT strategy document was delivered on time and budget. The strategy was presented to the RSCH Trust board and strongly endorsed by the Chairman and CEO. The strategy set out clear recommendations for core applications, the IT organisation, service delivery approach and IT governance arrangements. It also provided a practical roadmap for implementing the strategy, including a three-phase development approach, the timescales, key dependencies, high-level resource estimates and the key delivery risks.
NIRS2 manages the national insurance records and associated financial transactions for over 60 million people. It is one of the biggest IT systems in Europe with over 14 million lines of code.
Steve Bannister held three key positions over a total period of five years: Development Team manager; Applications Management Unit Director; Programme Director.
Programme Director. 1998 – 2000
Programme director delivering new system releases and the associated business changes.
Established and led a team of 100 people from multiple areas including client organisations, development teams and the live support team.Managed full implementation life cycle, including requirements, design, development, testing and implementation – delivered 12,000 mandays on time and budget.Implemented new joint design and user testing processes - radically improved the customer relationship and laid the foundation for the next five years of successful delivery.
Applications Management Director. 1997 – 1998
Transferred to the outsourcing division to set up a new applications management unit.
Established a new software development organisation, achieved a turnover of £6 million in the first year and exceeded profitability target.Built a team of 60 staff with different backgrounds, including ex-civil servants, contractors, consultants and new recruits, and delivered the first set of releases on time and budget.
Development Team Manager. 1996 – 1997
Led the first large-scale release of the national insurance recording system (NIRS2).
Led a team of analysts to design a complex architecture involving the integration of a 30-year-old mainframe system with a client-server relational database system. Ramped up development team from 30 to 120 staff within six months to develop bespoke software integrated with legacy mainframe. 20,000 mandays delivered on time.