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【正文】 lofty demands on management and staff time. This makes them difficult to rollout effectively without staggering the timing. This occurred with the Finance remendations. The team 13 / 15rescoped the projects to include the greatest benefit up front while still laying the necessary foundation for future requirements. The placement was then reevaluated based on sequencing requirements, corporate goals, and the expected impact of earlier projects on later stage initiatives. Once this “secondround” prioritization step was taken, those initiatives falling in the top right quadrant – those of high importance that are easy to execute – are generally pursued first. A Value Realization Roadmap (EVC Stage 3) was then crafted. The roadmap phased the projects into three month increments. A Scorecard (EVC Phase 5) was then built to enable management to keep the team focused on what needs to be acplished. It is also a tool to drive performance. Current and target values were calculated for 40 operational and financial metrics. The metrics follow the four high priority process areas. Example metrics are:1. New Product Development? NPD Cycle Time ? Percent of Revenue from Products Less than Two Years Old ?2. Marketing, Market Analysis, Product Pricing? Market Share? Forecast Accuracy3. Sales, Customer Service, Channel Management, Customer Solution Development? Average Contract Size? On Time Delivery? Dispute Resolution Cycle Time4. Financial and Managerial Accounting, Cost Controls? Inventory Turns? Cash to Cash Cycle Time ? COGS Percent of RevenueThe Scorecard was supplemented by target values that were based on benchmarks. The benchmarks came from a mixture of petitive data collected through a Value Impact Analysis (EVC Phase 1) as well as best practice and petitive research. Industry reports such as the Steel Industry Survey provided aggregate Financial and Operational benchmarks for the most petitive panies. Working with the client, decisions were made regarding target values that could be reached as a result of implementing the remendations.15 / 15ResultsIn ten weeks KPMG Consulting’s work positioned the client to:? Achieve consensus on the current state issues? Distinguish the areas of greatest opportunity? Agree on remedies to current problems? Mobilize efforts to bee more efficient and petitive? Systematically measure and achieve the desired results The team identified three areas of greatest client challenge:? Inconsistent integration among functional groups? Inability to share data with panywide value beyond functional boundaries? Lack of metrics and no emphasis on enterprise level efficiency or value creationThe client is pleased with the team’s conclusions and is currently moving forward with the remendations to bee more processdriven and to link decisions to corporate value. Specific actions being taken include the launch of a full ERP initiative.The CFO believes the EVC project was pivotal in the pany’s ability to be successful as the implications of China’s acceptance into the World Trade Organization are realized.
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