Performance Improvement

Performance Improvement PricewaterhouseCoopers

Performance Improvement
Making change stick

PricewaterhouseCoopers is the leading provider of advisory services in Ireland, and is ranked first
for Business Advisory Services Globally (Kennedy Global Consulting Marketplace Report 2008 - 2012).
Shared Services & Outsourcing Technology Consulting Project & Change Management
We work with organisations, of all sizes and across all industries, to help them adapt to their constantly changing
I need advice on the development of a I need advice on our IT I need an industry focused application of and increasingly complex operating environments. We help our clients by delivering meaningful and commercially
shared services centre from business Strategy & planning, evaluation leading project management and change
case design to migration. & selection of IT systems and methods, including Six Sigma, Prince 2, focused business advice that enables them to secure and strengthen competitive advantage.
advice on IT procurement. PMBOK.
I need advice on the outsourcing of
services, from strategic assessment This publication outlines the services provided by our Performance Improvement Team, which works closely with
to provider selection and from location
selection to contractual agreements. our clients to help design, manage and execute lasting change. Combined with our in-depth industry knowledge,
we draw on skills in operations, people, technology and finance to advise and implement lasting change. We help
Supply Chain Management our clients to build the knowledge necessary to make change effective and sustainable.
Transformation
Costs There is not a seamless channel
I need to fundamentally change the We deliver results at times of opportunity, change or crisis by:
from demand management &
I need to better understand our way my organisation operates in forecasting to warehouse processes
order to become more cost effective, and from inventory management to
cost base and target areas for cost
customer-centric and adaptable to • listening to clients issues and offering a range of smart choices to consider based on independent and
reduction distribution.
change, while improving service, and challenging insights supported by facts and industry benchmarks;
maximising capabilities of my people.

• tailoring practical solutions to help clients execute strategy and then enable their people to run it; and

Corporate Performance
Management / MI
I need assistance on the preparation of
budgets, forecasts and margin analysis,
to ensure they are aligned to strategy and
linked to operational performance metrics.
Working Capital
Management
There are weaknesses in our
internal systems which give
rise to collection, payment &
inventory issues.
IT Security & Data Protection
I need to know the data confidentiality,
integrity and availability risks within my
organisation. I need to know if we are
compliant with Data Protection Acts.
• connecting the experience of our global networks in people, processes, finance and technology to deliver and
embed lasting change.
To discuss how we can help you and your organisation, please feel free to contact us or any of our colleagues
listed in this publication.

Ciaran Kelly Garrett Cronin

Partner Partner

+353 1 792 6408 +353 1 792 8807

ciaran.kelly@ie.pwc.com garrett.cronin@ie.pwc.com
Transformation
Large scale business
The role of the business leader today is to drive
the change required to thrive and grow. By its very
Strategic Direction

Structure
Assess Design Construct Implement Operate &
Review transformation requires
nature large scale change of a business is a complex Facilities
Create ‘‘Case for
Change’’ and scope
Detailed
Deign, TOM
Build the new
ways of
Rollout new
ways of
Operate new
organisation the alignment of people,
challenge. The team running the business right now
Process / Service initiatives and Quick working and working and and implement

systems and processes –

Wins design rollout ensure continuous
benefits are improvement
People & Organisation
realised
are typically engaged in the daily operations and the Enabling Technology

requirement to meet ongoing operational and financial

targets. The counsel of a trusted advisor to suggest
Change Management

Programme Delivery
usually in a compressed
alternatives, challenge ideas and support the business Defining the High-level
‘‘Blueprint’’ for the new
organisation and the
Creating the detailed
‘‘Target Operating
Model’’ and plan for
Build new processes
and supporting IT
locations, org
Implementing the
portfolio of group-wide
and organisation-wide
Operate the
transformed
organisation, deliver
timeframe
to drive through the change is, in our experience, ‘‘Case for Change’’,and
the portfolio of
the organisation (e.g.
new org structures,
structures, skills etc.,
to support new ways
initiatives, pro-actively
ensuring benefits are
the benefits, and
instigate a culture of
initiatives that will processes, locations, of working. tracked and realised, continuous

invaluable.
transform the skills, IT etc), whilst Understand in detail addressing any improvement
organisation, while also implementing the requirements to shortfalls (i.e. portfolio
achieving short- and ‘‘quick win’’ initiatives implement these ‘‘leakage’’)
medium-term fiscal across the organisation
and business goals

Our cross functional teams can provide a range
of support services to manage change within your
organisation. At its core we recognise that the major
enablers and the significant challenges to any change
initiative are systems and people. Therefore our teams
are experts on systems and technologies but also
have skills in your industry and can work alongside
your people to identify optimised solutions and design
implementation approaches to ensure that the change
is embedded.
Typical Drivers of Transformational Change
–– Mergers, Acquisitions and Disposals
–– Enterprise Wide Cost Reduction
–– Implementation or replacement of major IT systems
–– Responses to new regulatory regimes
–– Introduction of shared services
–– Outsourcing of business processes
Each of the above can have a profound impact on an
organisation, and needs to be expertly managed to
achieve the desired outcome and avoid catastrophic
–– Ensuring a clear vision of what the programme is to
achieve
–– Ensuring a comprehensive business case
identifying all of the costs and benefits
–– Identifying the key initiatives required in relation to
people, processes and systems
–– Developing clear and comprehensive plans
–– Designing appropriate governance and
management structures for the change programme
–– Ensuring that the appropriate resource numbers
and mix of skills in Organisation, Change
Management, IT, Finance, HR and other relevant
disciplines are deployed in the programme
–– Managing the Programme, integrating the activities
across many work streams
Major Retailer de-merges and
–– Running the Programme Office which will creates new organisation on target
administer the programme
–– Managing any third party suppliers involved in the Our client was a major Irish retailer. The client was involved in a complete transformation of their business as a result
of the acquisition by a new management team of the core business from a legacy parent organisation. The PwC team
programme
worked closely with the client delivering a complete set of new systems from ePOS through to back office and financial
–– Managing the realisation of the benefits projected in systems.

failure. PwC specialises in assisting clients deliver the business case In addition PwC assisted the new management team in the development of a resource plan and structure for the new IT
transformational change. support organisation, the design of new business processes, contract negotiation and the recruitment of new staff. The
–– Supplementing your own resources where required
PwC support ensured that the project and the overall transaction was completed successfully and on time.
with appropriate specialists
How can we help?
PwC can help you address the key challenges in
undertaking successful transformational change
programmes:- For further information: Ciarán Kelly Garrett Cronin David McGee
(Partner) (Partner) (Director)
ciaran.kelly@ie.pwc.com garrett.cronin@ie.pwc.com david.a.mcgee@ie.pwc.com
01 – 792 6408 01 – 792 8807 01 – 792 8785
Sustainable Cost Reduction
With economic growth now faltering and the impact of
the credit crunch spreading from financial institutions
How can we help? The current global environment
and property to dampen market and consumer
PwC’s consultants have significant commercial
experience in driving performance improvement
creates a new imperative for
confidence, company executives are under increasing
pressure to maintain and improve shareholder returns.
initiatives across multiple industries. We offer a flexible companies in all sectors
approach to cost reduction that enables clients focus
With limited scope in the near term for revenue growth,
on known areas of concern or on enterprise wide to embed flexibility
focus is on cost reduction to deliver value. However,
executives are conscious of the need to embed
operations. The services we provide include: into their cost base
sustainable cost reductions within their business as
opposed to short term measures which may damage
• Identifying cost drivers and engender
long-term growth. • Benchmarking performance against peer groups a culture of cost
Our Cost Reduction team focuses on identifying and • Challenging cost management and control control.
validating sustainable cost reduction opportunities framework
for our clients and supporting them, as appropriate in
• Establishing KPI’s that are aligned to corporate
implementing these changes. Our focus is enterprise
strategy
wide focusing on such aspects as procurement; IT;
treasury; supply chain; sales administration; finance,
• Simplifying and standardising business practices
etc.
• Structuring shared services and outsourcing
Cost Reduction Approach arrangement for Finance, IT, Treasury, Logistics,
Operations, etc
Our approach to cost reduction is outlined below. It
should be noted that as part of the spend analysis • Adapting IT to support business needs
phase, we not only focus on identifying cost reduction
drivers, we also focus on cost management and control • Embedding a culture of continuous improvement
which reflects on the cost culture within organisations. within organisations
PwC assists FMCG Food were gathered, business plans reviewed, IT strategy
interrogated and finance and administration operations

PwC’s four steps process to sustainable cost reduction Company in achieving €6m pa mapped and assessed. Performance was benchmarked
against best practice, whilst opportunities for centralisation

PwC’s four step process to sustainable cost reduction

in cost savings and outsourcing were considered. We also reviewed
opportunities for the company to reduce their tax charge.
I. Spend Analysis, Cost Reduction II. Design Initiatives and Develop The final proposals were costed and savings in head-count
and Cost Management Roadmap the Business Improvement Plan (BIP)
1. Spend analysis to define operational cost drivers 1. Stabilisation Challenge: and operating costs assessed.
& baseline activity levels as well as • Execute the “immediate actions”
t This FMCG company had experienced exceptional year-
discretionary spend cos De to stabilise the key cost controls
Benefit:
nd sig on-year growth with senior management more focused
2. Headcount benchmarking analysis i o na n ini
and mitigate instructions
3. Cost management and control ct ap
du m
t iat
iv e
2. Create the Business Improvement Plan
on acquisitions and indigenous growth than the efficiency PwC identified cost savings of more than €6m per
framework gap analysis re road • Using the roadmap from the
nt
s
and effectiveness of internal operations. PwC was annum (c. 8%). Some of our observations included:
em st

4. Forensic contracts review to Assessment Phase, build the design

ag co

an

Build the
e

leveraging best practice across Group companies;

d
n ,

identify potential leakage of each prioritised initiatives requested to identify cost saving opportunities in Finance,
ma lysis

de

cost
ve

roadmap • Generate an overall Business

opportunities coordinating IT implementations; completing a program
na

lo

Identify the
Administration and IT, across the group’s European
da

pt

5. Build go-forward sustainable gaps and • Stabilising Improvement Plan incorporating

of centralisation, which had stalled impacting return on
he
n

cost management roadmap • Develop BIP all initiatives business operations.

Spe

opportunities
BIP

• Refine the cost and benefit analysis

investment; accelerating the close process; tailoring
Analyse current
cost base and
Approach: business intelligence to Group needs; and leveraging
revise budgets
Having gained a high level understanding of the group purchasing power. Two separate IT implementations
• BIP rollout business, PwC conducted detailed interviews with were immediately deferred and the Group generated
Implem

• Continuous
improvement senior management in all targeted companies. Metrics significant cost savings from the implementation of PwC
• Pilot(s)
recommendations.
ent

• Performance
IV. Implement Company-Wide Cost management
c
ost

Strategy and Sustain Benefits

s
tra

1. Rollout company-wide cost

III. Construct the Business Improvement
egt

strategy
ya

Plan (BIP)
2. Continuous Improvement
For further information: Garrett Cronin (Partner) Ciarán Kelly (Partner)
nd

su
)

t
(s

st lo 1. Construct and execute the Business

3. Corporate Performance Management a in pi
P
be BI Improvement Plan pilots
(CPM)
4. Establish incentive mechanisms to drive
ne
fits
Con
s tru
ct
2. Incorporate learning into the plan garrett.cronin@ie.pwc.com ciaran.kelly@ie.pwc.com
3. Finalise the company-wide rollout plan
sustainable improvement
01 – 792 8807 01 – 792 6408
Shared Services
To survive in today’s environment, organisations
need to find smarter ways to invest in systems,
resources and infrastructure. Clever and well informed
investments can result in competitive advantage
through more efficient processes and lower costs,
driving increased efficiency and value for money. To
achieve these ends, organisations are increasingly
consolidating and optimising their technology,
infrastructure and human capital investments into
Shared Service Centres. Shared Services have led to
service delivery improvements and have generated
significant and recurrent cost savings within a few years
of implementation.
How can you achieve success?
PwC understands from experience what it takes
to make shared services a success and that those
organisations that realise or exceed anticipated benefits
have effective:
• Senior level sponsorship and support throughout
the project
• Business case for change
• Governance and accountability
• Methodology, supported by a structured approach
that encompasses the entire shared services life
cycle
• Stakeholder engagement
A Shared Service Centre or BPO
strategy can result in three
different types of benefit
• People and change management
• End-to-end process transformation
• Systems and infrastructure support.
How can we help?
PricewaterhouseCoopers have a proven expertise in
preparing business cases for shared services and in
assisting clients with implementation. Consequently
PwC are in a unique position to be able to provide a full
range of services in this area including:
–– Preparing and/or challenging the business case
for centralisation, getting buy-in from management
team;
–– Developing the shared service operating model
focusing on people, processes and infrastructure;
–– Ensuring efficient and effective program
management throughout the project;
–– Documenting clear agreements on service levels;
–– Developing an action oriented communications
framework;
–– Reviewing ongoing operations through the use
of service level agreements and key performance
indicators;
–– Re-visiting, revising and re-shaping existing
Industrial Products Group established SSC’s; convinced their management team of
the benefits of shared services; supported them develop
shared service centre operations to meet changing develops Global SSC strategy detailed resource plans and split of activities between SSC
and country; documented and upgraded SSC processes;
organisational needs. finalised business plan; and developed implementation
project plan.
Challenge:
Benefits:
Following the acquisition of a major competitor, this Group
Through a structured approach to developing the business
decided to develop a strategy to implement a global SSC
case, providing a vision and articulating how shared
model. PwC was requested to support the development of
Cost this strategy.
services could operate, Group management was convinced
of the benefits of implementing the SSC structure and
Savings supporting the plans to migrate country operations to SSC
Approach:
operations. Through benchmarking existing SSC activities
With support from PwC SSC experts globally, PwC
with global best practice, PwC also identified opportunities
Improvements in supported the Group develop a global strategy focused
for the Group to operate more efficiently and effectively.
Quality and on activities, locations, business case, staffing and
mentation, further services have been successfully
organisation structure. We facilitated multiple site visits to
Customer Service outsourced.
Strategic Benefits For further information: Garrett Cronin Ed French
(Partner) (Senior Manager)
garrett.cronin@ie.pwc.com ed.french@ie.pwc.com
01 – 792 8807 01 – 792 8576
Corporate Performance
Management
PwC’s Corporate Performance Management (CPM)
framework helps companies develop an integrated
CPM approach that supports the design and
implementation of management processes and
systems that drive accountabilities, decision support
and operational execution. Recognising that CPM
efforts typically start as targeted improvement efforts,
we help align CPM efforts to link strategies, metrics and
financial planning with ongoing operational reporting
and execution.
CPM Best Practice Concepts
–– Establish clear CPM goals and business
sponsorship upfront
–– Identify key business drivers to baseline future
planning, reporting and analysis
–– Develop quick wins with tactical deployment -
keeping longer term vision in mind
–– Plan for business changes - flexibility is a core
requirement
–– Engage business and functional expertise in
operating model development including the design
of reports and KPIs – this is not just a finance
exercise
–– Address data, quality and integration issues upfront
–– Standardise and leverage leading CPM and
ALIGN
Strategy Plan
CPM
Finance Operations Sales Marketing
The analysis of data is no longer
enough to provide a competitive
advantage – the winners are
Business Intelligence tools for financial planning,
those who can understand
consolidation, reporting and analytics the data and change their
–– Utilise prototype driven approach for deployment organisations as a result of it
How can we help?
Our professionals combine deep financial, operational,
and analytical expertise to help organisations optimise
planning, align metrics, and leverage existing CPM
and Business Intelligence tools. We have experience
with all of the leading tools including Hyperion/Oracle,
SAP, and Cognos and apply our best practice thinking,
CPM accelerators and industry knowledge to help in all
phases of CPM deployment.
CPM Assessments and Roadmaps
Measures and Metrics Alignment
Operating Model Development
Management and Operational Reporting
Budgeting and Forecasting Improvement
Driver-based and Rolling Forecasts
Dashboards and Scorecards
Business Analytics and Business Intelligence
CPM Best Practices and Benchmarks
CPM System Selection and Rollout
Data Architecture and Management
Change Management Retail Bank delivers new The process involved reviewing their information strategy
requirements through Senior stakeholder interviews
Reward and Compensation suite of KPIs and appropriate and workshops. As part of this, PwC provided specific
recommendations on the;
systems infrastructure a. Establishment of an MI Governance Infrastructure that
sets policy, tracks initiatives and involves bank wide
PwC was engaged with a major retail bank to provide representation;
an independent review of the quality and relevance of b. Best in class” key performance indicators that the bank
Our CPM methodology starts with an current Management Information (MI) produced to meet should consider employing; and,
internal and external stakeholder information requirements,
integrated CPM roadmap to guide c. Organisation and Technology Infrastructure that the
including governance and key controls. In addition, PwC
decisions and link CPM efforts to focus benchmarked the bank against industry best practice MI bank should implement to produce the required MI that
on the business benefits and overall and KPI’s to identify gaps, quick wins and gain insights into is both flexible and scalable.
return. “best practice” MI governance, process, technology and
organisational arrangements.
For further information: Garrett Cronin (Partner) Ed French (Senior Manager)
HR garrett.cronin@ie.pwc.com ed.french@ie.pwc.com
01 – 792 8807 01 – 792 8576
IT Advisory
IT is a vital and integral part of all businesses, and for
many it represents a significant proportion of operating
How can we help? An IT strategy is a planning
costs. Management needs to be confident that:
PwC can assist you in ensuring successful cost-
effective IT services. We have a large local team of
document that explains
–– IT spend is optimised to provide value for money; highly experienced and qualified consultants who how information technology
provide IT advice and support to clients in areas such
–– IT service is resourced in the most cost and time
as:- should be utilised as part
efficient manner;

–– IT service is proactive and responsive to business
needs ;
–– IT projects are achieving results, delivering
expected benefits and being completed on time
and within budget; and
–– IT Operations are being managed in a way that
ensures reliability and security, and minimises risks
to the business
–– Benchmarking your IT Service against best-in-class
of an organisation’s overall
and identifying improvement opportunities business strategy
–– Developing business-focused IT strategies and
plans
–– Specifying and selecting systems to meet your
business needs (HR, Finance, CRM, Payroll)
–– Putting in place appropriate IT governance,
policies, procedures and standards

Some concerns voiced by senior management –– Undertaking reviews and health checks on IT
about IT projects

–– Managing the realisation of benefits from IT

“We’re spending more and more on IT but it all –– Managing IT business risk and compliance
seems to be invested on keeping the show on the
road” –– Assessing sourcing and outsourcing strategies

“We thought systems were integrated, but whenever
we look for new reports it costs too much and takes
too long, apparently because the information resides
in different systems and in different forms”
“Why do our IT projects always take longer and cost
more than planned?”
“Do we really need that many IT staff – what do they
all do?”
“We’re not happy with our third party suppliers but it
seems we have no realistic alternative”
–– Coaching and training your staff in best practice
approaches to IT projects and service delivery
PwC can also provide temporary IT resources to
supplement your own inhouse skills in the areas of
IT service management, project management and
business analysis.
Strategic support to IT
Function in a major hospital
PwC performed a review of IT Effectiveness Strategy in a
major Irish hospital. The IT Department within the hospital
has 50 people and a budget of circa €4 million per annum.
Our work included interviewing senior management,
obtaining information concerning the business strategy
of the hospital and performing a gap analysis with the IT
department. Our projects have included:
recognised standards such as COBIT and ITIL;
• IT Project reviews - provided input into review of major
IT projects, including Nurse Roster System, Theatre
Management System and Infrastructure upgrade;
• IT Procurement - provided advice in relation to the
selection and procurement for IT capital investments
PwC’s goal is to make change stick. We achieve this
primarily by ensuring the transfer of knowledge and skills to
your staff so that they can take over when our consultants
leave.

• IT Governance – assisted the hospital to establish an IT

IT Culture and Skill oversight committee, involving members of the IT unit
Analysis and hospital senior management team;
• Quality Review of IT function - led a team involved in
IT Organisation Analysis the review of the IT function of the hospital, drawing on

High-level IT Software Development

Environment Review Maturity Assessment

For further information: Ciarán Kelly Carol Murphy Kieran Morgan

Business Value of
Application Inventory
Application Systems (Partner) (Senior Manager) (Senior Manager)
ciaran.kelly@ie.pwc.com carol.murphy@ie.pwc.com kieran.morgan@ie.pwc.com
IT Infrastructure Analysis
01 – 792 6408 01 – 792 8262 01 – 792 8632
IT Security & Data Protection
Today’s organisations rely on information for the
effective and efficient operation of their business.
Information is a key “business enabler” that allows
organisations to collaborate with their customers and
business partners to securely conduct business. As
a result IT and security organisations are now being
asked to play two pivotal roles:- to provide a secure,
well-controlled IT environment to improve business
performance; and, to assist the organisation in
strategically and tactically addressing its governance,
risk and compliance requirements.
Your key Business Challenges in relation to IT
Security
–– Do you want to open your IT infrastructure to
employees, customers and business partners
to securely conduct business while ensuring the
protection of your information assets?
–– Are you concerned about the impact of information
loss?
–– Can you respond to today’s complex security
breaches, reduce the risk of business disruptions
and meet your compliance objectives?
–– Do you struggle to demonstrate value for money
or justify expenditure from information security
investments?
–– Are you challenged by business requirements to
integrate new developments and technologies
securely?
Information is one of the most valuable
At the heart of PricewaterhouseCoopers’ vision is a assets an organisation possesses.
detailed and comprehensive view of security, the... The aim of Information Security is to
design and implement the right processes
Enterprise Security Business Model (ESBM)™.
The ESBM shows the process by which the value of to preserve the confidentiality, integrity
security is identified, created, captured and sustained and availability of information.
within your organisation. It is our view of end-to-
end security and reflects our belief in empowering
our clients to meet their security-related objectives,
to provide a secure, well-controlled IT environment
and address their governance, risk and compliance
requirements.
How can we help?
PricewaterhouseCoopers’s Advisory professionals have
real-world experience in helping companies integrate
people, process and technology. With our deep
industry knowledge and our experience with the critical
issues of security, privacy and compliance, we have the
expertise to help organisations implement and maintain
a secure and high-performance business infrastructure,
focused on:
–– IT Security Strategy, Policies and Standards
–– Infrastructure, Networks and Applications Security
–– Penetration Testing
Information security strategy Benefits:
–– Identity and Access Management • Increased awareness of the underlying principles, and
developed for major importance, of Information Security;
–– Outsourced IT Security Management
Government Department • Establishment of a clear strategy for Information
Security;
–– IT Risk Management
• Establishment of clear organisational structure
–– Data Protection Compliance Challenge: for Information Security with defined roles and
The client was looking to improve the way information responsibilities;
–– IT Security Incident Response security was organised within their organisation and
to establish an enterprise-wide Information Security • Establishment of greater business involvement in the
–– IT Contingency Planning Architecture. Information Security process;
• Increased visibility for Management on major
Approach: Information Security risks; and,
Our team was engaged to design a vision for Information
Security for our client. This included the development of • Clear benefits realisation from Information Security
a Security Strategy, an Information Security Architecture investments.
and a roadmap for the implementation of the Security
Architecture.
For further information: Ciarán Kelly Kieran Mongan Liam McKenna
(Partner) (Senior Manager) (Senior Manager)
ciaran.kelly@ie.pwc.com kieran.mongan@ie.pwc.com liam.mckenna@ie.pwc.com
01 – 792 6408 01-792 8632 01-792 8897
Project & Change Management
A successful project requires a combination of
good planning, organisation, resource and benefits
management and to achieve the organisation’s goals or
objectives.
PwC provides expertise in traditional project
management methodologies such as PMBOK, Prince2,
and the Six Sigma process improvement methodology.
PwC Expertise
PricewaterhouseCoopers experience has identified
six pillars of project excellence, which if managed
effectively will improve the likelihood of a successful
project delivery. The six pillars include:
Team is high Risks are
performing managed
Business benefits Six pillars of Scope is realistic
are realised project excellent and managed
Work and
schedule are Stakeholders
predictable are committed
We also have extensive Project Management training
and certification in methodologies such as PMBOK and
PRINCE2.
–– PMBOK (“Project Management Body of
Knowledge”) is the project management
methodology published by the Project Management
Institute (PMI), the world’s leading organisation for
the project management profession.
–– The PRINCE2 methodology is a widely accepted
project management standard that is published
by the UK government’s Office of Government
Commerce.
The Six Sigma process improvement methodology can
assist organisations to bring about strategic change.
Leading global organisations have used Six Sigma
to improve existing processes and build new ones to
strengthen internal and external client relationships.
Benefits to Clients
Formal project management methodologies and Six
Sigma bring many benefits to clients, such as:
• Realisation of project objectives to perform
project(s) at low risk, with high quality in a minimum
of time and cost
• Use of established frameworks and processes that
help control and manage risks associated with
large-scale projects
• Drives project management excellence – including a
clear focus on milestones, ownership, co-ordination
and escalation of issues for resolution Many project successes can be attributed to
• Six Sigma encourages continuous improvement of the presence of formal project management
existing processes and design of new processes and change management programmes to
ensure that people commit to the project and
How can we help?
the organisational and process changes it will
PwC can help clients to achieve their target benefits bring once implemented.
on time and within budget by providing qualified
resources with relevant experience. We help to assess
and transform gaps in processes, technology and/
or resources. Specifically we provide the following
Utility Group improves customer
services to our clients:
service while reducing costs
–– Advise on Best Practices in all aspects of program
and project management
Facing a new regulatory regime, this company recognised the need to implement robust operational processes to ensure
–– Provision of Program Management Office (PMO) they complied with regulatory requirements, whilst also operating to best in class performance levels.
–– Increase performance by improving the efficiency Using a Six Sigma based process review methodology, we adopted a four step approach to addressing our clients
and effectiveness of key business processes using requirements i.e. ‘define & measure’, ‘analyse’, ‘improve & implement’ and ‘control’. Control and business process
Six Sigma weaknesses identified were agreed with the client and action plans defined assigning ownership and timelines for each
individual recommendation.
–– Project Management and Six Sigma Training
Adoption of a project management methodology ensured practical and feasible solutions were defined, implemented and
realisation of benefits accurately measured and tracked. Benefits achieved included increased operational capacity,
–– Project Health Checks
enhanced customer service and reduced costs which were realised through elimination of ineffective process activity from
We are independent of our clients’ business and targeted processes.
industry sector, enabling us to deal objectively with
relationship issues. Many client solutions require
international resources, which we provide from our For further information:
local centres of excellence around the world. Our
Darren D’Arcy Emma Hanley
deep understanding of projects across all industries
(Senior Manager) (Senior Manager)
means we can effectively manage the deliverables and
enhance the value resulting from complex and difficult darren.darcy@ie.pwc.com emma.hanley@ie.pwc.com
change programmes. 01 - 792 8532 01 – 792 8562
Supply Chain Management
Successful companies are underpinned by an effective
supply chain management which gets the right product,
to the right customers at the right place, time and cost.
Organisations who recognise the strategic importance
of their Supply Chain, reap the operational, cost
reduction and revenue enhancing benefits.
With the ever increasing pressure on management to
reduce costs whilst simultaneously striving for best-
in-class performance, executives are increasingly
looking to their supply chain to deliver more cost
competitiveness and more efficient and effective ways
to get products to market. By managing the supply
chain strategically, organisations can proactively
capture and create value within their businesses.
Our experience at PwC has shown that most
companies continue to isolate elements of cost and
service and do not consider the full extent of their
supply chain. This results in savings and efficiencies
being achieved in one area of the business, but with
knock-on costs and/or lags elsewhere in the supply
chain.
Instead of operating as a collection of separate
business units, a well managed supply chain should
link suppliers, manufacturers, distributors, retailers
and customers into one integrated channel that
operates - and communicates - seamlessly. This
allows for complete transparency on cost and process
improvements.
Benefits to Clients
The benefits which may accrue to companies who
focus on optimising their supply chain can include:
• Increased profitability through reduced costs;
• Reduced working capital levels;
• Full utilisation of available technology;
• Reduced capital investment requirement with
positive impacts on financing costs;
• Tax efficient distribution models;
• Improved business processes; and
• Enhanced customer relationships and service levels
ultimately creating greater shareholder value.
How can we help?
At PwC we work with our clients to address all aspects
and key market drivers of competitive pressures in
the supply chain. We approach the supply chain as
a set of integrated operating activities and work with
companies to:
–– Identify the key value links in their supply chain, i.e.
link suppliers, manufacturers and customers etc.
into one integrated channel;
–– Evaluate and re-engineer their processes in both
their internal and external relationship points on the
supply chain;
–– Leverage the impact of technology on supply chain
demands;
–– Examine all aspects of the supply chain from
forecasting, production planning, manufacturing,
stock control, through to sales order processing
and logistics;
–– Apply technology and supply chain best practice
to support the automation and optimisation of key
processes.
–– Benchmark existing performance with industry
peers using PwC Global Best Practices
The effective and efficient
management of the end to end
process of inbound and outbound
supply chain is a major cost but
also a major opportunity for superior
service for organisations
Healthcare Logistics Authority Approach:
Leveraging PwC Global Best Practices, PwC global
successfully re-engineers to expertise in Healthcare, supply chain and particularly
logistics, PwC has supported the Authority undertake a
deliver new customer service series of design and implementation related initiatives
which include: design and implementation of a national
level targets network of distribution centres and new arrangements for
replenishment at ward level as well as advisory support to
implement computer systems.
Challenge:
Following the establishment of this Healthcare Authority, Benefits:
management sought to engage a supply chain advisor to Despite the complexity of the operating environment, the
support the design and implementation of leading edge Authority has achieved excellence in terms of delivering to
logistics practices and processes across its organisation. customer service level targets outlined in original business
cases. In addition PwC support has enabled the Authority
PwC has been retained since the inception of this Authority
to provide expert advice on all aspects relating to logistics. develop the internal supply chain arrangements in other
health entities to ensure that the benefits of the enhanced
supply chain are achieved “at the coal face”.
Garrett Cronin Richard Jackson
For further information:
(Partner) (Senior Manager)
garrett.cronin@ie.pwc.com richard.jackson@ie.pwc.com
01 792 8807 01 792 7461
Outsourcing
Why do companies outsource?
The number and size of outsourcing deals in Ireland
has grown in recent years. In the past this growth
has primarily been due to an increased emphasis on
reducing costs, however in a recent Global Outsourcing
survey conducted by PricewaterhouseCoopers the top
five reasons given by respondents for entering into an
outsourcing arrangement were:

• Lower Costs

• Access to talent

• Others can do the job better

• Increased business model flexibility

• Improved customer relationships

However, while the benefits of outsourcing can often be

substantial, the risk of failure remains high due mainly
to poorly designed and documented arrangements
between buyers and suppliers. Other common barriers
to outsourcing include:
• Difficulties in proving the cost benefit
• Preference to use in-house employees
• Lack of skills to manage the outsourcing
relationship
–– Focusing on assessing the strategic fit, cost /
benefit analysis and driving out cost and service
benefits for the company;
–– Supporting the commercial and legal negotiations
Outsourcing can deliver cost savings to the
bottom line – it can also create an intangible
benefit of freeing your organisation from the
distraction of non core activities
International Media Group Approach:
PwC identified appropriate outsource service providers and
exceeds target savings through prepared a Request for Proposal incorporating key metrics
for success. PwC supported the client in assessing and

• Need to clean up operations before outsourcing

How can we help?
At PwC our teams draw upon skills in finance,
regulation, risk, tax, people, operations and technology
to devise, deliver and embed lasting change. We can
provide clients with advice and insights into the drivers,
benefits, risks and pitfalls associated with outsourcing.
We can further assist clients by:
–– Acting as independent advisors on all issues
associated with the outsourcing of services;
with the selected outsource partner;
–– Advising buyers of outsourcing services on the
planning, design and management of successful
outsourcing arrangements;
–– Identifying and selecting outsource service
providers based on criteria that are objective and
verifiable;
–– Designing the Service Level Agreement, Key
Performance Indicators and Service Credit models
for inclusion in the contract; and
–– Supporting the transition of services to the service
provider.
outsourcing evaluating bids and then worked with the client in framing
the contract ensuring commercial considerations were
embedded in the contract through well defined service level
Challenge: agreements.
Faced with increasing shareholder pressure to improve
cost and performance metrics, the client decided to Benefits:
consider outsourcing as a cost efficient option. Not having The client now has focused service providers providing
experience in outsourcing arrangements and concerned professional support to their internal management and
about being dictated to by established service providers, telesales customers. Key performance metrics are being
they retained PwC to provide independent advice on the achieved and cost savings have exceeded expectations.
implementation.
For further information: Garrett Cronin (Partner) Ciarán Kelly (Partner)
garrett.cronin@ie.pwc.com ciaran.kelly@ie.pwc.com
01 – 792 8807 01 – 792 6408
Working Capital Management All companies, regardless of their
current state of health, can benefit from
In the current ‘credit crunch’ environment, the mantra
must be ‘Cash is King’. And the issue isn’t just
reducing working capital should not be viewed as
simply a short term gain. Implementing procedures to
tighter control over working capital
associated with the cost of funds; the recoverability of embed best practices across the organisation ensures
receivables, the certainty of supply, the effectiveness the benefits are not only sustained, but the quality of
of procurement, the streamlining of processes and customer service is enhanced.
the culture of ownership and accountability are all key
components in effectively managing cash. How can we help?
Our consultants have worked with leading
Our Working Capital Management (“WCM”) team
organisations in measuring, analysing and improving
focuses on releasing cash from all areas of the
existing strategies and processes to significantly
business and in particular focuses clients on reducing
reduce working capital levels, releasing cash for
the ratio of receivables to sales; inventory to cost of
businesses to invest internally or externally. We work
sales and increasing the ratio of payables to spend.
with clients to:
In addition, we support our clients improve the
transparency surrounding cash management, ensuring
• Benchmark existing performance with industry
the group wide management of cash is coordinated
peers
and controlled.
• Identify best practices
Who should focus on WCM?
• Establish KPI’s aligned to corporate strategy
Whether impacted by liquidity requirements or the need
for more efficient and effective WCM, the dynamic • Leverage IT to support business needs
nature of competitive business dictates that business
needs adapt regularly. Consequently every company • Identify opportunity for improved pricing and terms
can benefit from a regular review of the strategic focus
• Implement global procurement structures
and operational processes surrounding WCM.

• Reduce inventory obsolescence and bad debts

Reducing working capital is most effective when
all associated processes (procurement, payables,
invoicing, collection, inventory management etc.) are
understood and aligned and best in class approaches
are adopted. However the benefits derived from
Typical Problem
Pressure on margins as a result of
intensified competition in globalised
markets
Unsatisfactory cash flow performance in
recent years
Expensive acquisitions resulting in
excessive debt and depressed profits
Shortage of capital to finance growth
• Implement strategic programs
• Implementing shared services and outsourcing
solutions to deliver efficiencies
Effects of active WCM
Permanent reduction in funds tied up in
working capital
Unlocking of capital for strategic
investments
Increase in profitability
Optimisation of business processes through
identification of working capital drivers
Protection of Liquidity
Multi-National Engineering reporting upon working capital elements; the introduction
of an incentive scheme to motivate country management to
Group reduces Working Capital implement sustained solutions; the introduction of central
inventory control and management; the negotiation of
by 30% in 18 months improved terms with suppliers based on global spend; the
appointment of new logistics partners; the renegotiation of
terms with customers; the introduction of best practices
Challenge: governing receivables management; the shortening of the
Following the merger of two multi-national engineering supply chain, etc.
groups, the generation of cash from working capital was
deemed a strategic priority. We were requested to identify Benefit:
opportunities to reduce working capital and support Working Capital was reduced by 30% within 18 months,
supporting the reduction in Group debt by more than 50%.
implementation of certain key initiatives.
More importantly, these reduced levels of working capital
Approach: were sustained.
Having gained a high level understanding of the business, a
number of approaches were designed to release cash from
receivables, inventory and payables. These included the
development of a common taxonomy for measuring and
For further information: Garrett Cronin (Partner) Stephen Kinsella (Manager)
garrett.cronin@ie.pwc.com stephen.kinsella@ie.pwc.com
01 – 792 8807 01 – 792 8847
Thought Leadership
Global CEO Survey 2009
The 12th Annual PwC Global CEO Survey examines how CEOs
perceive the business environment in which they are operating.
Despite the downturn, people issues remain a critical challenge for
the CEO – concerns include attracting key talent, integrating younger
employees and providing attractive career paths.
Ireland:CEO Pulse Survey 2009
The views of Irish business leaders on the current economic and
operating environment. Includes insights into their key people
concerns.
Convergence monitor: Personal mobility (Jan 2009)
This is the third in a series of global surveys aimed at understanding
preferences and interest to buy and use various converged services.
Personal mobility focuses on which devices and applications people
are using today, how they are using them, and what they would like
to have in the future. We look at the changes driving and enabling
personal mobility, and the resulting challenges faced by service
providers, equipment manufacturers and application developers.
“Outsourcing Comes of Age: The Rise of Collaborative
Partnering”
This study explores one of the key issues raised by CEOs in the
PricewaterhouseCoopers Global CEO Survey, and reflects insights on
outsourcing gathered from executives of both outsourcing customers
and providers representing 19 countries across several continents.
The study finds that while outsourcing remains a critical element of
the corporate strategic mix, success in today’s complex outsourcing
marketplace is contingent on new dynamics, specifically the customer
and service provider relationship.
Technology Forecast Winter 2009
This issue of Technology Forecast explores the future of enterprise
applications and their role in creating a foundation for agility in an
era of accelerating change. PwC offers a three layer framework and
rationale for extending the capabilities of enterprise applications
further into management of the business to bridge the gap between
strategy and operations by balancing standardisation with flexibility
to deliver significant competitive advantage in the pursuit of higher
performance, agile strategies, and agile behaviour.
Technology Forecast Fall 2008
Do more with less. Be more innovative. Manage continuous change.
Anticipate market shifts. Bias investment toward differentiation.
Standardise wherever possible to reduce costs. Deliver value
from acquisitions. Make information a strategic weapon. Create a
sustainable infrastructure. Be more agile.
Technology Forecast Summer 2008
Have you reached the point where you turn on your laptop first thing
in the morning while silently thinking, “I hope nothing else has blown
up overnight?” Do you long for the days when the challenges you
faced, while significant, were episodic and you were able to really
concentrate on dealing with them without a host of other distractions?
IT Cost Reduction Playbook
The objective of this IT Cost Reduction Playbook is to provide you
with a practical, step-by-step guide for achieving rapid, radical and
sustainable IT cost improvements. The tried and true approaches and
techniques discussed in this Playbook are meant to provide a starting
point for delivering real and sustainable IT cost improvements today in
a meaningful way.
“Data Loss Prevention: Keeping sensitive data out of the
wrong hands*”
This paper offers insights into an effective solution to organisations
who are looking to provide transparency over data usage, controls
over sensitive data, and reduction in the likelihood and costs of data
breaches.
Establishing unified procedures for gathering and documenting data
reduces the need to ask the same questions of the same people. Data
Loss Prevention solutions play an integral part in determining where
data truly is and, thus, where companies need to position resources to
conform to their chosen approach.
The PricewaterhouseCoopers Security Atlas Guidebook.
This guide is organised according to five disciplines. The five CISO
disciplines - assess, analyse, strategise, align and Communicate -
go to the heart of what it means to transform security and, through
security, aspects of business performance, compliance and risk
management. Each discipline initiates a chapter within the guide and
forms the basis for a set of actionable tips, suggestions and ideas
intended to help you develop a security strategy that is repeatable,
reportable and ultimately transforming.
PwC Performance Improvement

Ciaran Kelly Darren D’Arcy Richard Jackson

Partner Senior Manager Senior Manager PwC Advisory Services
+353 1 792 6408 +353 1 792 8532 +353 1 792 7461 Corporate Finance Business Strategy

ciaran.kelly@ie.pwc.com darren.darcy@ie.pwc.com richard.x.jackson@ie.pwc.com Aidan Walsh Ann O’Connell

Partner Partner
+353 1 792 6255 +353 1 792 8512
aidan.walsh@ie.pwc.com ann.oconnell@ie.pwc.com

David Tynan Dervla McCormack

Partner Partner
+353 1 792 6582 +353 1 792 8520
Garrett Cronin Deirdre Farrelly Liam McKenna david.tynan@ie.pwc.com dervla.mccormack@ie.pwc.com
Partner Senior Manager Senior Manager
Transaction Services Process Assurance
+353 1 792 8807 +353 1 792 6706 +353 1 792 8897 Paul Tuite Mike Sullivan
Partner Partner
garrett.cronin@ie.pwc.com deirdre.m.farrelly@ie.pwc.com liam.mckenna@ie.pwc.com +353 1 792 6502 +353 1 792 6450
paul.tuite@ie.pwc.com michael.m.sullivan@ie.pwc.com

Denis O’Connor Bob Semple

Partner Partner
+353 1 792 6288 +353 1 792 6434
denis.g.oconnor@ie.pwc.com bob.semple@ie.pwc.com

Pat Kelleher Ed French Kieran Mongan John Casey Robin Menzies

Director Senior Manager Senior Manager Partner Partner
+353 1 792 6893 +353 1 792 8553
john.casey@ie.pwc.com robin.menzies@ie.pwc.com
+353 1 792 7118 +353 1 792 8576 +353 1 792 8632
Brian Bergin Richard Day
pat.c.kelleher@ie.pwc.com ed.french@ie.pwc.com kieran.mongan@ie.pwc.com Partner Partner
+353 1 792 8735 +353 1 792 8573
brian.bergin@ie.pwc.com richard.day@ie.pwc.com

Recovery, Insolvency &

Forensic Services
Billy O’Riordan
David McGee Emma Hanley Carol Murphy Partner
Director Senior Manager Senior Manager +353 1 792 8592
billy.oriordan@ie.pwc.com

+353 1 792 8785 +353 1 792 8653 +353 1 792 8262

david.a.mcgee@ie.pwc.com emma.hanley@ie.pwc.com carol.kilduff@ie.pwc.com
 Name
2008 WINNER

pwc.com/ie
© 2009 PricewaterhouseCoopers. All rights reserved. “PricewaterhouseCoopers” refers to the
network of member firms of PricewaterhouseCoopers International Limited, each of which is
a separate and independent legal entity. PricewaterhouseCoopers, One Spencer Dock, North
Wall Quay, Dublin 1 is authorised by the Institute of Chartered Accountants in Ireland to carry on
investment business. Designed by PwC Design Studio (01371)