01926 633333
Process Improvements driving the establishment of Target Operating Model (TOM)
The Problem
The organisation needed to radically re-engineer its overall operating model to drive both efficiency and effectiveness.
Bourton Group were engaged to carry out radical end to end process review and improvement projects of the operational processes that make up the property lifecycle; Acquisitions, Asset Management, Customer Care, Development, Lettings, Property Management, Property On-Boarding and Sales; as well as cross company, impactful processes including Procure to Pay, Customer to Cash and Cash Management.
The project aimed to deliver benefits including Direct cost savings e.g. headcount reduction due to automation and efficiencies; indirect cost savings e.g. better alignment between internal departments resulting in lower error rates and data issues and a higher right first-time delivery.
Additional outcomes were increased process yield such as conversion rates for acquisitions, rent increases, lower repair costs.
Programme deliverables were reported and signed off in three steps:
- Scoping workshop
- Current state review
- Future state review (detailed and implementation ready)
The Solution
Bourton consultants led an engaged improvement approach with process owners and process users to define the current state and its issues.
Typical findings from initial process mapping and carrying out DILO (Day in the life) studies included:
- 70% over processing and duplication in the job request/authorisation processes
- Multiple approvals & authorisations built in waste and delays
- Inconsistent approach to dealing with customers
- Significant administrative burden from a culture of double checking and a perception of lack of trust
- Unequal staff loading
- A dependency on paper-based authorisations being duplicated by system authorisations
- An average of 45 improvements per process identified
The Benefits
Benefits targeted by the implementation of the improvement recommendations included:
- Improved efficiency & effectiveness across the end to end business value chain
- Reduction in process waste and re-work
- Reduction in ‘Await Decision’ lead time leading to reduction in process lead time and an improved customer experience
- Improvement of enquiry to ‘customer’ conversion levels
- Reduction in ‘enquiry to cash’ process lead time
- Greater clarity of performance by setting of relevant KPIs
- Improved accountabilities & process ownership across the business
- 10% direct cost saving on annual procurement spend (up to £9 million potential)
- Reduced staff cost savings £1.4m pa
- Non-staff cost savings £0.75m pa