Cost Optimisation

Engagement Lifecycle
I nitia t P la n C o o rdina te C lo s e
e
• Internal • Refine • Engagement Scope Control • Engagement Quality Control
Engageme engagement • Engagement Schedule Control • Engagement Team Management
nt and work plan • Engagement Cost Control • Engagement Communications Management
Client with client • Engagement Risk Control • Stakeholder Management
Acceptance • Kick-Off
procedures Engagement
• Proposing
and
Contracting

P la n O ppo rtunities D es ig n I m plem en M o nito r

D ia g no s tic t
• Facilitate the • Gather and document • Reconfirm prioritized • Client to launch the • Conduct post-
planning activities client baseline opportunities implementation implementation
for the overall CO information • Agree organizational program review
project • Identify cost drivers and change needed • Facilitate the pilot • Capture lessons
• Gain an understand comparators • Design organizational exercise learned
understanding of • Assess and prioritize change • Assist the client to • Assist the client to
the client’s issues performance gaps • Prepare Project implement the design the continuing
and objectives • Identify possible Initiation Documents program plan performance
related to the reasons for gaps • Consolidate PIDs into improvement
project • Identify how to overall approach
potentially address gaps implementation plan
• Develop prioritized • Client to approve
roadmap PIDS/ overall plan
 Cost Optimization Phase
Objectives
H ig h-L evel O bjec tives
S tep O verview

• Gain an understanding and

agreement with the client
S e t up E ng a g e m e n
regarding the scope and P ro jec t
objectives of the C os t t K ic k - O ff
I nfra s truc tu
O ptimization project. re

• Identify cost optimization

opportunities G a the r a nd U nde rs ta nd A s s e s s a nd I de ntify I de ntify ho w D e ve lo p
• Analyze gaps, possible do c um e nt c os t drivers prio ritize po s s ible to p rio ritize d
reasons for gaps, and how to c lie nt a nd ide ntify pe rfo rm a nc re a s o ns fo r po te ntia lly ro a dm a p
address gaps ba s e line c o m pa ra to r e g a ps g a ps a ddre s s the
info rm a tio n s g a ps
• Develop prioritized roadmap
• Develop the detailed design
• Develop project initiation P la n fo r A g re e D e s ig n P re pa re C o ns o lida te C lie nt to
documents (PIDs) D e s ig n o rg a niza tio n o rg a niza tio n P ro je c t P I D s into a ppro ve
• Develop the implementation P ha s e a l c ha ng e a l c ha ng e I nitia tio n o ve ra ll p la n P I D s / o ve ra ll
ne e de d D o c um e nts pla n
plan
• Obtain formal client approval

• Conduct pre-implementation
C lie nt to F a c ilita te A s s is t the
assessment
L a unc h the the P ilot C lie nt to
• Initiate the program I m ple m e nta ti E x e rc is e I m ple m e nt
• Assess ongoing Program o n P ro g ra m the P ro g ra m
Management Activities P la n

• Conduct post-
implementation assessment A s s is t the C lie nt
C o nduc t
• Track benefits realization to D e s ig n the
P o s t-
• Maintain performance C o ntinuing
I m ple m e nta t
P e rfo rm a nc e
io n re vie w
I m pro ve m e nt
A ppro a c h
 Initiate

Initial Client Client / Planning the Project Scoping Proposing and

Contact Engagement Proposal Contracting
Acceptance

PR IM A R Y OB J E C TIV E S :
The Initiate Phase includes Pre-Proposal and Proposal
activities. The Pre-Proposal activities include all of the
engagement and client acceptance/continuation steps. The
Proposal activities include preparing for and delivering the
proposal and/or Engagement Letter/contract to the client.
 Plan

Set Up Project Engagement

Infrastructure Kick-Off

P R IM A R Y OB JE C TIV E S :
Refine the engagement work plan, schedule, and budget. Gain a
high-level understanding of the current processes and identify the
potential issues.
 Opportunities Diagnostic

G a ther a nd U nders ta nd A s s es s a nd I dentify I dentify how D evelop

doc um ent c os t drivers prioritize pos s ible to potentia lly prioritized
c lient a nd identify perform a nc e rea s ons for a ddres s the roa d m a p
ba s eline c om pa ra tors g a ps the g a ps g a ps
inform a tion

PO TE N TIA L OU TPU TS :
PR IM A R Y O B JE C TIV E S :
– A g reed B a s eline
The Opportunities Diagnostic phase is intended to help the
client identify, analyze and prioritize Cost Optimization – O pportunities S um m a ry
opportunities prior to moving to the detailed Design, – P rojec t O verview D o c um ents
Implementation and Monitoring phases. – P rioritiza tion M a trix
The diagnostic can be applied at a number of analysis levels – P rioritized R oa dm a p
based on availability of information and access to personnel.