Business Case Simulation


Finding the best solution:
A worthwhile challenge.

Excellent workflows are the alpha and the omega of a successful business. But seldom do they all run perfectly. Management or employees demand new solutions and changes. But what should they look like?

Besides cost effectiveness, there are a whole series of other factors that warrant a closer look. How many resources will the new workflows tie up? Will the throughput times be satisfactory? Wherein lurk the quality risks and pitfalls? Will the employees be happy with the improvements? Is the effort really worth it?

The answers to these questions are not always self-evident - which points to the extreme complexity of the task.

Examples:

  • Many departments are linked to the processes needing improvement.
  • Processes need to be harmonized across the division
  • Post-merger integration is required.

In each of these cases, finding the solution is a major challenge.

Rarely is it immediately clear which department, division or company has the best ideas and solutions. Often the discovery phase does not go as planned. Management can't agree on a concept, department is pitted against department, good ideas fall on deaf ears - or else a seemingly brilliant idea turns out to be downright counterproductive on closer inspection.

In the real business world, "process gurus" often create convincing and stringent process designs, but will they really function? Will the departmental interfaces work? Will the changes resonate with the employees? No one really knows.

The result? Decision makers remain unsure; CEOs and business leaders are unable to determine if investing in change management is worthwhile.


Before the actual project start:
Business Case Simulation!

To meet these challenges, we created a unique format for putting process performance to the test under real-world conditions: the Business Case Simulation.

Based on your current workflows, we test their cost-effectiveness and other factors together with the process stakeholders. We uncover potential improvements during an intensive two-day simulation. The benefit: You can calmly look forward to the project start - your processes will work.

We know from experience that when companies fail to thoroughly check their target processes for practicability, their laxness will later prove dire. A business case simulation helps you rigorously test newly structured workflows before the project begins. The format is especially useful for highly complex and multi-layered processes that rely on a division of labor.

Preparation generally takes about four weeks, and the actual simulation wraps up in two days. CEOs benefit just as much as division heads and operations Managers.


Implementing good ideas:
Benefits at a glance.

The simulation primarily clarifies whether implementing the planned project is truly worthwhile. First we simulate our client's "as-is" processes. Their suggestions for improvement take shape quickly thereafter.

  1. The business case simulation uncovers potential weak points in the current workflow, in a "no-holds-barred" approach. CPC partners with the client to fix errors and draft a number of variations of a target process. To ensure practicability and therefore increase process quality, the target process variations are also put to the test.
  2. We do not simply plan your processes on the drawing board; we look for constant give-and-take with all the stakeholders. Engaging employees doubles the added value. The company benefits from their knowledge to optimize processes, and consulting with them fosters employee acceptance. Each participant in the simulation is taken seriously and can share his or her ideas - an essential prerequisite for acceptance of the solution by the entire workforce. Employees do not simply follow orders; they are personally invested in the results.
  3. The learning gained from the simulation is enormous. All the participants get to step out of their own microcosm and confront the concerns of colleagues with whom they normally have no contact or whose relationship is marred by conflict. Inequities in the workload become painfully clear as well as how one's own actions and those of others impact the overall outcome. After the simulation, every participant can explain why the jointly created target process is the best.
  4. CEOs can also join the simulation. It gives them an in-depth look at how their teams operate, and any needed adjustments become quite obvious.
  5. The business case simulation is multidimensional. Our clients learn whether the new processes are good for the bottom line. They also gather a considerable amount of data on the throughput times under the current and target conditions, the errors their processes can cause, and employee response to the old and the new processes. All this ensures reliable prediction of project success.
  6. Our consultants have no qualms about analyzing the planned process change critically. If its potential for success is too low, we advise against it. Here, too, our clients profit. Not only do they save the subsequent project costs, but also a good deal of trouble.

Reference Case:
Better training, stronger teams!

Our client, a leading German company, was dissatisfied with the processes used by its internal training group. Up until that time, approximately 400 employees were responsible for training 150,000 others every year.

It cost a great deal of time, money, and personnel resources. Friction was also quite high. The processes needed overhaul. This brought our client to the business case simulation.

In an analysis of the current state, we put the 30 most important processes to the test and identified the main areas of weakness. Development, organization, and implementation were not seamless. At some junctures tasks were often done twice, at others essential requirements were missed. At the end of the simulation, participants voiced numerous suggestions for improvement. The suggestions, in turn, were tested in the target process simulation for cost-efficiency, throughput time, error rate, and employee satisfaction.

The result of the business case simulation: "Our client gained efficient workflows and his employees developed a greater understanding and sense of ownership of the business. One nice side effect - participating teams grew tighter.

"Our client was so happy with the results, they produced a corporate image film around the entire project."


Reference Case:
Open doors for better processes

Our client already suspected that their company's workflows were in need of improvement. But what the right set of tools could accomplish still took them by surprise.

For years the processes of this mid-size manufacturer of doors, windows and sunrooms were fine, but not ideal. Because they had no way to reliably calculate the optimization potential, they lacked the motivation to change for some time. Then they brought CPC on board.

Our specialists got to work pulling apart their current processes and then, together with the client's employees, simulated the interaction between all the departments, from order acceptance and sales processing to production and assembly on site.

It quickly became clear that throughput times could be cut by 70%, certainly a number that would raise end-customer satisfaction considerably. Our client never anticipated such an incredible result. Their amazement grew even more once the two-day business case simulation revealed that more efficient workflows could save their company more than ten percent of overall costs. We ran through the business case simulation a total of six times to strengthen the foundation for the restructuring project. That earned employee buy-in from all the involved areas of the company. The change project that followed was a huge success.

"But one thing still bothered our client: that they hadn't commissioned the business case simulation sooner."

„Cost savings and other factors must be reliably forecast.“ 

Steffen Bossen, Manager at CPC



Contact

Portrait Michael Kempf
Partner
CPC Unternehmensmanagement AG
Am Flughafen
THE SQUAIRE 11
60549 Frankfurt am Main  

Contact

Portrait Sebastian Keim
Senior Manager
CPC Unternehmensmanagement AG
Am Flughafen
THE SQUAIRE 11
60549 Frankfurt am Main  
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