Issue
When one of the world’s largest organisations bought the market leader in one of its core segments much was at stake: the future of tens of thousands of employees, the relationship with thousands of customers and the need to demonstrate to several bourses that the transaction was a success.
Engagement
A small consulting team from Morgan Hill began working with senior executives of the acquired organisation immediately the acquisition was finalised. The purpose was to install a framework for delivering against the targets that had been set as part of the acquisition. The Metresis™ model was used to help create a list of potential IT integration investments that would rapidly weld the two organisations together and begin to release some of the synergy value associated with the transaction.
Metresis™ was calibrated with the financial ratios to be used to measure progress and calibrated with specific divisional synergy targets. Using the Metresis™ model the team was able to prepare different portfolios of investments, together with recommendations for consideration by the executive. These portfolios balanced risk with return. By using the Metresis™ model to conduct the investment analysis process an optimised portfolio of investments was able to be ranked by value and risk. In addition, by using Metresis™ the team was able to identify the prime measures needed to track each investment through to completion.
Once configured the Metresis™ model was implemented within the Global PMO and used to produce regular executive reports on value (synergy) at risk within the key integration portfolio of projects.
Outcome
The IT integration programme exceeded its synergy targets. The Global PMO has implemented parts of the Metresis™ model into its enterprise project management software, Planview.
Issue
A leading European bank wanted to be sure that it was achieving clear and measurable value for its substantial investment in technology. In addition, it was anxious to know what potential technology investments could be made in the light of new competitors entering one of its prime market sectors.
Engagement
A small Morgan Hill consulting team worked with senior members of the client executive to establish a suitable reference framework for answering the value question. The Metresis™ model was used as the framework and it was calibrated to fit the bank. Key objectives from the strategic plan were loaded into Metresis™. The divisional structure of the bank was loaded as were key products and delivery channels. Finally a portfolio of investments taken from the previous twelve months was added.
Using Metresis™ the team was able to demonstrate the proportion of the investment that met different strategic aims as well as the proportion that directly supported specific products and or delivery channels.
Using this information the team was able to produce new investment portfolios that focussed the investment on the prime aims of the bank. This process freed up a significant amount of funds, enough to embark on a major customer facility upgrade.
In addition, the value and risk assessment process built into Metresis™ was used to extract the important areas of measurement for new investments, in particular the measurement of benefits. This enhanced ability to track benefits led to a change in the governance processes used to allocate funds to new investments.
Outcome
The application of Metresis™ brought an ability to define the value delivered to the bank by its substantial investment in technology. Further, it allowed this investment to be focussed on those areas deemed most important by the bank. One of these areas was new investment made in direct response to competitive pressures.
Issue
This European market leader wanted to increase the proportion of customer orders fulfilled within its tier 1 service commitment target. This objective provided for new opportunities to provide more of the customers’ requirement for product as well as opportunities to rationalise stock holdings.
Engagement
A substantial technology investment was required to support the performance objective. An investment in new systems that would consolidate millions of part numbers from multiple ERPs, optimise stock levels and support electronic ordering.
A leading systems integrator was contracted to supply and install the software. A small team from Morgan Hill was contracted to provide programme management services over the SI and to help manage the integration of nine European systems into the new Master Data Management system.
Using existing Morgan Hill processes and documentation a fully functional programme management office was rapidly established. This function controlled and co-ordinated the activities of multiple mixed teams of business and technical professionals across Europe. Together these teams normalised, cleaned and loaded millions of stock part numbers into the new system.
In addition to providing the programme management services, Morgan Hill delivered its Metresis™ performance management model into the existing corporate governance processes controlling key technology investments. Using Metresis™ the client is able to actively manage the business value planned to arise from these investments. Regular, quarterly executive output from Metresis™ clearly shows where a return is occurring, how significant it is and what the risks are.
Outcome
The improved customer service targets are being met. The amount of capital tied up in stock is falling and a single view of stock items available around the group is being delivered. The Metresis™ model is now firmly embedded as the vehicle for delivering technology investment governance across the group. As a result the company is delivering measurably more return from its project investments whilst keeping the size of the investment budget constant over the last two years.
Issue
This major, pan European provider of transport & distribution services was successfully growing market share but faced flat or declining margins on contracts. They needed help in finding a systematic and scalable means of identifying, measuring and controlling contract risk.
Engagement
Our consulting team worked with members of the group executive, heads of the regional business units and group finance to analyse a representative sample of contracts from the previous two years. Metresis™ was calibrated to reflect the key financial performance ratios used by the client organisation. Contract data was then passed through Metresis™ and value and risk charts for the sample contracts were produced.
This analysis produced clear categories of contracts that consistently underperformed. These categories were then used to derive new contract performance targets. Additionally, using Metresis™ the team was able to identify the main areas of risk that were consistently problematic. The Metresis™ value and risk assessment model was installed at the business unit level and used to assess key new contracts. This substantially improved the ability to detect likely areas of risk prior to submitting a new contract for approval. It also graphically revealed which contracts delivered the most value for the capital employed.
Outcome
Working with the client, our consulting team made changes to the group capital approvals process such that Metresis™ value and risk output became a key determinant in funding contracts.
We have since helped the client to set up an EPMO and through this to cascade the Metresis™ model to business units across Europe. The result has been far fewer contracts failing to deliver against plan as well as a clear mechanism for tracking contract performance over time.