There are many ways to intervene in the management process. Some consulting firms focus on strategic approaches, others on tactical approaches, while some consultants focus on both areas. Firms with a strategic approach normally perform assessments and develop presentations to raise awareness, leaving the implementation work with the client. PSI is a full-service engagement firm. We develop and implement the strategies that we prescribe using a four phase process.
Phase One - The Assessment
The assessment is used to identify the elements of total non-salary related spending categorized by management focus areas. PSI divides organizational activities into three primary focus areas: inherent spending (costs directly related to the products/services offered by the organization), structural spending (fixed costs or permanent investments made by the organization to execute its business model), and execution spending (variable costs typically incurred by the delivery and procurement of goods and services).
The assessment typically uncovers that while management and the largest portion of the organization's resources are dedicated to the execution, the largest area of spending is incurred through inherent spending. Most enterprises achieve an unsatisfactory result trying to improve cost performance because the largest pool of spending is not adequately addressed. The work in Phase One is to categorize activities and spending by management focus areas to understand the current state of the company. The assessment provides the basis for recommendations and future improvements.
Phase Two - Process Design/Redesign
Phase Two refocuses management attention and redirects resources to leverage non-salary related spending to improve performance and reduce costs. Phase Two concludes with the development of a strategic map and projected spending reductions based on the implementation plan.
Phase Three - Implementation
PSI provides support and direction in this phase. The work is to transfer knowledge to the client's change agents and sponsors to affect systemic sustainable solutions that will leverage non-salary related spending. We provide training and work within the process until results have been achieved.
Phase Four - Audit and Measurement
The work in Phase Four is to initiate and transfer a management reporting process to quantify the financial impact of PSI led initiatives.
Phase Five - Process Refinements
The essence of the work in Phase Five is continuous improvement. This work by nature is more arduous; however, it may be necessary to create competitive advantages in the market place. PSI focuses on an iterative process directed at particular focus areas to create formidable market positions for our clients.