The Power of Alliance
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Transcript of The Power of Alliance
Mr. Phil Larson Assistant Vice President / Director, Enterprise Operations
American Fidelity Assurance Group
“Beyond the Purchase”
Continuous Service Improvement and Alliances
Beyond the Purchase –CSI + Alliances
Phil Larson, Director of Enterprise Operations oversees 24/7 computer services, production change support, and production print services, on demand print services, and office support services. AF-Press is an entrepreneurial company performing commercial graphics communication and printing. AFA is a Fortune 100 Best Place to work.
18 months ago, AFA engaged a new approach to office support to enhance business productivity using a local dealership, BMI, and Canon equipment. Continuous service improvement factored strong in the contract and has produced good benefit to departments. Total cost of operations includes ability to get work done effectively and efficiently not just for the lowest cost.
Expanding The Pie
Makin’ CopiesData acquire
and usage
Business Presentation Multi Function
Connected
Enabling Business
Green
Mining Diamonds
Get into the business of office support
Many organizations make this an equipment and software issue instead of a business support issue.
Think like the business client of the services.
View from their perspective of getting their work done using the equipment and software provided.
Findings: Clientele were struggling with some simple work productivity based on years of assumptions of what equipment could and could not do. A refresh of equipment gave opportunity to increase productivity on standard features no matter the final vendor selected.
Move at the speed of your organization.
Expand your criteria
Assess the impact of change
Survey using a decision based needs analysis
Learn the frequency of WII-FM for the clients
Findings: Right usage at the right place surfaced as a key issue. Making sure we found cost effective solutions for management that put the output closest to the customer results in containment of hallway flow in the campus.
Develop relative, repeatable, and addressable metrics.
Stats
Office consultation needed along the path
Cost per person supported
Cost per produced impression
Cost of support services - scan to file, email, fax, color
Findings: Outage per piece of equipment Most vendors like averages. One unit out for two weeks can result in a 98% uptime stat overall. For that department, it is a 0% uptime stat and needs tended as such.
Sourcing is a craft.
Train
There is a craft to this business. Craft is a combination of science, art, and skill. Get your team adept at all three. Sourcing management studied ahead of the contract.
Use Professional Consultants
To ensure our new agreement had provisions for revision and update along the path and had the right “teeth” in it, we used an external consulting group. Now we have a model that is repeatable.
Findings: Grid of criteria.. It is not all about costs
What are your priorities? How much weight do they hold?
Criteria Grid – Total Productivity
Criteria
The Company Weight
Years in Business 3
Stability 5
Local Decisions / Responsiveness 4
National support 4
Organizational professionalism 5
Expanded support of our business acumen and knowledge. 4
Business relationships with key partners 4
Future orientation consistent with our strategies (deskside, mfd,
central, commercial, digital ondemand) 4
Strategic changes in the last 18 months 3
Criteria Grid – Total Productivity
Criteria
The Program Weight
Flexibility 5
Negotiation Willingness 4
Revision methods and future improvements 4
Contract Terms 4
Innovation 5
Expense 5
Interoperability 5
Accessibility 5
Future Cost reduction model 4
Carbon footprint 4
Ease of use 3
Support of business processes 5
Security 5
Criteria Grid – Total Productivity
Criteria
Service Weight
Response Time 4
MTTR 5
MTBF 5
Self managing 5
Self Escallation Plan 4
Reliability of Resolutions 5
Flexibility of contract 4
Nationwide for branches 5
Defined CPI and ITIL I/P/C/C 4
Lean methodology or Six Sigma 4
Criteria Grid – Total Productivity
Criteria
Other Weight
Shared risk and accountability 4
Cost per person of solution 4
Projected On-going Costs 4
Ratio of equipment to office colleagues 4
Open architecture 5
Support of corporate output device policy. 4
Support of billing process 5
Environmental 4
Criteria Grid – Total Productivity
Criteria
Other Weight
Pharos Software Compatibility 5
Deployment / Installation 5
Training / Retraining 5
Volume Management 4
Consumables Management 4
Reporting Capability 4
Equipment Replacements/Relocations 4
Managed Services 5
Quality Control 4
Totals 213
Perfect Weighted Score 1065
Percent of Perfect Score
RACI - The Productive Arrangement
Roles and Responsibilities
Clearly lined out for us and BMI and others involved.
RACI
Responsible, Accountable, Consulted,Informed – Make sure all the players and stakeholders are considered.
Post Results –Value Add
Movement into office productivity
Key executive area engaged in document conversions.
Scanning offered in all, enabled where productivity resulted.
Fax integrated in productivity and reduced carbon footprint scenarios
Integrated into company imaging solution
Base costs remained flat
Print available in new areas
Branches networked to new level to get “home office” style access to services.
Post Results –Value Add
Operational Productivity
Billing customized to flow rapidly for payment and rectification.
Custom reporting of capture of usage and allocation back to departments saves days a month.
Enabled movement of thousands of impressions a month direct to departmental space from central area. Print at point of need with best cost.
Online ordering existed for movement to central already making that efficient.
Identified and allocate costs to administrate
Green support - evidence of matched alliance
$7mm Story
Applying this in our
on demand and
production and office
areas has resulted in
$$mm for our clients
over a five year
period in added
profits and the birth of
a profitable business.
Thank You, Vurry Much
405-523-5085
CSI
RACI
Expand
Alliance
Mine
The CREAM
is the best
part. Go for
it.