May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Know What to Measure:
Defining Success Through
Benchmarking
Judy Bicking, May 2017
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
About Your Presenter
Judy Bicking is a 27 year veteran of Johnson & Johnson.
Her career
has been focused on Procure -2-Pay, Order-2-Cash, and developing
Shared Service Centers in the U.S. and Europe; earning high recognition
for process improvement and major cost savings. She led the first
department to earn IOFM AP Departmental Certification designation.
Today she is a Public Speaker, does consulting in O2C and P2P and
participated as co-founder and played a major role in writing and
conducting certification training in these fields.
She also owns and operates a retail department store along with her
passion in doing mission work at home and abroad.
Metrics for Metrics Sake
Metrics Cause Stress
Stop Stressing about the numbers.
If they matter, work to change them.
If they don’t, let them go. KatyWidrick.com
Don’t measure people… measure process
CUSTOMER SERVICE Exp:
1st Focus on Process
2nd Performance Expectations
Metrics Will Drive Excellence
? If you choose the right metrics
? If the metrics are valid
? If you know your competition
Metrics Should Drive Your Strategy
not the other way around…
“Your idea to stop paying our bills was pure genius.”
Noise
Show me the
metrics !!!!
Can’s See the Forest For the Trees
Where to begin?
• What is your mission? Vision? Scope? Goals?
• To pay invoices accurately, timely, in
compliance… That’s the trees.
• The big picture:
To work with purchasing to build a purchasing
strategy that will build a strong supplier
relationship and will provide bottom line savings
through Discount and Spend Management
What is your purchasing strategy?
Why do you need benchmark data?
• Know where you stand?
• Learn possibilities
• Gain proven processes that will
– Reduce cost
– Improve the process
– Ensure compliance
– Eliminate Fraud
• C-Suite wants proof
– Gain budget for systems
– Support
Example:
Wires
To get the most out of Benchmarking
• Bring an end-to-end team together
• Map your current process
• Gather metrics based on:
– Mission, Vision, Scope
– Volumes
– Cycle Time
– Bottlenecks, errors, discrepancies
– Cost
• Develop benchmark strategy
Benchmarking
• How to find benchmark data
–
–
–
–
–
Survey’s
On-line
Conferences
Chapters
One-on-one
• Types of benchmark
–
–
–
–
–
Internal
Competitor
System
Functional
Generic
Quantitative
(metrics)
Qualitative
Process/BP
What Metrics Drive Change
• What is your top metric?
Top Metrics
• Make them positive:
– Invoices Paid Late vs. Invoice Paid On Time
• First Pass / Touch it Once
– Does this really match your vision, mission, goals
•
•
•
•
Do you use DPO?
PO vs NonPO
Dollars under $1K
Biggest Roadblock
Behind the numbers
• What is 28 divided by 7?
• How do you check division?
– Multiply
– 13 x 7 = 28
• How do you check multiplication?
– Add
Get behind the metrics
• Paid-on-time
– ASK:
When did they start the clock
• Cost per invoice
– ASK:
What was included: rent, benefits, IT support?
Capture: Baseline, Goal, Status
Mission, Vision, Strategy, Goal
• Status Quo
– Silos
– Transaction focused
– Managing the Debit
• Best-in-Class
– Best Practices
– Don’t control process – BP may not succeed (ERS, EDI)
• World Class
– End-to-End with C-Suite Support
– Purchasing Strategy
– Cash Management – Budget Control
Metrics Portfolio
Invoice Paid on Time
First Pass
Cost per Invoices
E-Invoices
.
Reduce Invoices
w/o a PO
Reduce Invoices
going to Internal
Customers
Reduce exception
process with
Non-PO invoices
Discount Taken
& Discount Lost
Purchasing Card
Purchase < $5K
Reduce Mismatches
Between the PO
and the Invoice
Top Metric
Cycle Time.
Pay on Receipt
(ER’s)
Insure Items on Age Trial
Balance are not Greater
than 60 Days
Spend
Management
Set reasonable goals – not too high or low
Remember if you don’t chart it, you won’t do it !!
Best Practices
Exceptions
Bottom Line
Business Cards
Pcards
Consider
• Use metrics for good – not to blame or punish
• Involve staff: agree on the meaning and purpose of the
metrics
• After BP implemented redo metrics
– Did it work?
– Find next focus
• Beware that metrics can drive wrong behaviors
– CS: answer call in less than two minutes
• Set clear, achievable but stretchable goals
• Obtain senior management support
– No back doors
• Don’t take on too much – stretched too thin / Confusing
• Hire for future skills – analytical, innovative
Summing Up
A final word
You cannot change everything all at once.
Trying to do so will be overwhelming for your
department and yourself.
You must prioritize, then take on achievable goals.
The idea is to succeed a step at a time.
With each success, you gain credibility
and confidence on which to build the next step, in a
developing culture of continuous improvement.
In any moment of decision,
the best thing you can do is
the right thing,
the next best thing is the
wrong thing, and
the worst thing you can do is
nothing. Theodore Roosevelt
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Questions
Thank You