Small CompanyBIG Business
11/09/2014 1
Small CompanyBIG Business
How To Work With Large Corporates - Successfully
Bronwyn ReidMining For Business – Emerald
@bronwynreid #smallcompanybigbusiness
Mining For Business
Mining For Business
Hilton Hotel, Cairns, 1st September 2014
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Thanks to our Sponsors
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The “SME Problem”
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Don’t understandhow supply chainswork and supplychain risk
Don’t have goodsystems
Have own internalsystems
Complexrequirements thatchange all the time
Too much time andcost to get it all inplace
Can’t get on thecorporate radar
D
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SME’s Corporates
The main hurdles
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Today’s Topics
• Essential elements
• How Supply Chains work
• Business Systems
• Enabling Technology
• Tenders
• Innovation
• Visibility
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Today’s Topics
• Essential elements
• How Supply Chains work
• Business Systems
• Enabling Technology
• Tenders
• Innovation Robert
• Visibility Dallas
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Essential Elements
Get these right first!
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What business am I in?
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What’s your Why?
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Who is your (ideal)customer?
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Who is your (ideal)customer?
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Hint:
It’s not just anyone with a pulse!
What does yourcustomer want?
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What you are
offeringWhat the client
wants
What does yourcustomer want?
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What you are
offering
What the client
wants
What does yourcustomer want?
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What you are
offering
What the client
wants
What’s their problem?
• Improvement
• Trouble
• Dissatisfaction
• Change
• Frustration
• Time
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• Bottleneck
• Challenge
• Barrier
• Concern
• Difficulty
• Issue
What’s your valueproposition?
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Imagine…
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Show me the prize!
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What’sInItForThem?
Your internal team
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Your external team
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Board of Advisors?
SolicitorAccountant
Bank ManagerBusiness Coach
Insurance Broker
What stage are you at?
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Portfolio risk
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• Customers
• Market
• Region
• Revenue streams
• Black Swan events
Portfolio risk
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Top Clients as % of Total Revenue
Top 1 as % of Total Top 3 as % of Total
How Supply ChainsWork
And where you fit
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How does this work?
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How does this work?
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How does this work?
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Asia-Pacific
Over Budget On budget
68%
Asia-Pacific
Over Time On Time
80%
Does this work?
• 80% of projects overtime
• 68% of projects overbudget
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Does this work?
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Does this work?
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Does this work?
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Source: Ernst & Young
Where do you fit?
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• Questionnaire
• Self assessmento HEIRG
o Exxon Mobil
o Supplier on-line registration
Why would they buyfrom me?
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Multiplier Effect Price Capability
Why would they buyfrom me?
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But what’s local?
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2 For the purposes of this charter, localindustry is formally defined as Australianand New Zealand small and medium-sized enterprises (SMEs).
Source: Queensland Charter for Local Content, p1.
Why wouldn’t they buyfrom me?
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ConsistencyRisk Systems
InternalPolicies
Visibility Price
Why wouldn’t they buyfrom me?
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Customer Service No Innovation Staff Turnover
Logistics Compliance No Capacity
How do I get to them?
The New Way
• Make a difference
• Generate demand
• Create value
• Knowledge &expertise of seller
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The Old Way
• Get the order
• Opportunity
• Communicatevalue
• Product, service orsolution
How do I get to them?
The New Way
• Procurement
• Contracts
• DocumentedCompliance
• Tenders
• Global
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The Old Way
• Personal
• Handshake
• Trust
• Sole supplier
• Local
How do I get to them?• Get a PhD in your client’s problems
• Be prepared & professional
• Attention to detail
• Be agile and swift
• Your credentials
• Cost and Value
• Walk the talk
• Partnerships
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Systems
And what they can do for you
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Minimum Requirements
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“As a minimum, you must offer competitive pricing, qualityand on-time delivery when supplying to a major project.You have the best chance of entering and gaining long-term access to major project supply chains if you:• demonstrate how your service or product adds value to
the project and supports the project's risk managementstrategy
• use an established business system• have experience in responding to unexpected issues• use innovation to improve the efficiency of the project
supply chain• network to find and create opportunities to add value to
the supply chain.”
Source: Qld Govt: Preparing your business for major projects
Minimum Requirements
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• Capability Statement
• Quality System
• Health and Safety System
• Environmental System
• Risk Management System
• Insurances
Minimum Requirements
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• Time Management
• Finance Management
• Project Management
• Personnel Management
• Tender Management
Capability Statement
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• Rule 1 – Get one
• Rule 2 – See Rule 1
• State Government “Capability Statements”Workshops
• http://www.dsdip.qld.gov.au/events/tendering-for-government-business-workshops.html
Systems• Save
• Your
• Self
• Time
• Energy &
• Money
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The benefits of systems
• Efficiency
• Effectiveness
• Motivation
• Business Value
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• Structure
• Stability
• Control
• Sanity
Health & Safety System
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• Policy – Signed and displayed
• Procedures
• Templates are available
Environmental System
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• Policy – Signed and displayed
• Risks Identified
• Procedures
• Templates are available
• Carbon Footprint
Risk ManagementSystem
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• Policy – Signed and displayed
• Risks identification matrix
• Standard Operating Procedures
• Job Hazard Analysis
• Templates are available
Quality ManagementSystem
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• Policy – Signed and displayed
• ISO9001:2008
• Procedures
• Templates are available
Insurances
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• Plant and Equipment• Workers Compensation• Public Liability• Product Liability• Professional Indemnity• Audit• Get a good broker!
More on insurance
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• Minimums?
• Get contracts reviewedo Indemnities
o Warranties
o Liquidated damages
o Time
So how do I Systemise?
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• What areas?
• Prioritise
• Document it
• Trial it
• Refine it!
Enabling Technologies
And what they can do for you
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Time ManagementSystem
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• Question: What’s the easiest way to lose money ona contract with a large company?
• Answer: The Hurry Up And Wait Factor
=
Project ManagementSystem
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• Question: What’s the second easiest way to losemoney on a contract with a large company?
• Answer: Scope creep
=
Financial ManagementSystem
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DocumentManagement System
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ComplianceManagement System
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Personnel ManagementSystem
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…and it all fits together
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Enabling Technologies
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BillQuick
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• Time, Billing and ProjectManagement
• Integrated
• Reporting
• Screen Shots
TKO
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• Business Modeller• Policies• Procedures• Roles & Job Descriptions• KPI’s• Customised Manuals• TKO Documents
IdentifyingOpportunities
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• Networks and Partnerships
• Tender databases
• Commercial Tender Subscriptions
• Tenderlink
• Australian Tenders Federal, State & LocalGovernment
• AusTender – Australian Government
• Achilles
Successful Tenders
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Factors For Success
• Is this tender “real”?
Position Compliance Capability Price
Who’s your partner?
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Who’s my partner?
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• Laboratory
• Hydrogeologists
• Equipment supply
• Equipment Rental
• Noise and vibration specialists
• Air quality specialists
• Soil specialist
• Ecology specialist
• Tradies
Where do you network?
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• Who is in your circle ofinfluence?
• Who is in your partner’s circle ofinfluence?
• Who is in your client’s circle ofinfluence?
• Who can add value to youroffering?
Contacts
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• Mining for Business –www.miningforbusiness.com.au
• 4T Consultants –
www.4t.com.au• @bronwynreid #smallcompanybigbusiness
• Mining For Business
• Mining For Business
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