Operational Strategy Deployment2018-07-05T14:42:55+00:00

Operational Strategy Deployment

Our clients are Top Ten BioPharma and start-up organisations.
This is feedback from our clients over the last 5 years

Deployment to
Sites and Regions

Testimonial

“In the second step (Portfolio Deployment) we aligned all products with these guiding principles and developed a gap analysis as well as an action plan to close these gaps. Since we established this basis we have been using the frame work to continue to refine our manufacturing strategy. Clearly this work was very value adding and I appreciate Primecore’s strong support.”

VP of Global Manufacture

Background

Company size: 14,000 employees; Valuation $30B

Industry sector and location: Biologics US, Europe & Asia

Assignment Duration: Two months

Client Sponsor: Snr. Dir.  Biologics Strategy

Assignment Objective

In a previous assignment Primecore had aided the Leadership team in the development of a global operations strategy.

This assignment objective was to translate a clearly defined strategy to deliver the companies Long Range Plan (LRP) into a series of verifiable time-bound objectives for each of the regions and again down to individual site level.

Approach

1. A gap analysis (free of constraint) was carried out of the ‘as is’ network versus the optimum network needed to deliver the product portfolio five years into the future.

2. A plan was put in place of individual programs which would need to be executed in order to deliver the future state. Constraints were then placed on the plan in situations where the benefit to the company did not warrant the investment needed to deliver the objective.

3. The portfolio of programs was broken down by region and then by individual site.

4. Each site was then given a list of objectives along with time lines for both the planning and delivery of these objectives.

Outcome

1. Clear and consistent messaging of the regional operations’ objectives.

2. Once clear objectives were established there was consistency from year to year, with the objectives only requiring minor adjustments.

Lessons

The key lesson is that capital investments in the Biologics industry have long investment timelines (five to six years) which require careful and consistent planning if they are to deliver the company objectives in line with a planned timeline.

Objective Deployment Within a Region

Testimonial

“The expertise – (Primecore brought) the ability to understand our business and apply general principles developed by Primecore to our business. It is all round quality”

P3MO Director

Background

Company size: 3,000 employees; Valuation $20B to $50B

Industry sector and location: API Pharmaceutical  Europe

Assignment Duration: Three months

Client Sponsor: Regional Head of Operations

Assignment Objective

To identify the optimum API network of plants in five to six years time.

Approach

1. In this situation extensive workshops were carried out to establish a ‘future state’ for the manufacturing facilities to be able to deliver the project product demand reliably and efficiently.

2. The output of this process identified the need to execute technology transfers of a number of products from one plant to another to allow all remaining plants to operate efficiently at the appropriate utilization levels.

3. No significant capital investment required, but some plant closures were required and the timelines for the decision ‘trigger points’ and the ultimate plant closures were identified. Any capital investments tended to be in the supporting facilities (drainage and waste water treatment etc.) rather than in the manufacturing plants themselves.

Outcome

1. Four years on two of the plants have been closed and demolished. The remaining plants are operating efficiently and are enjoying investment and future stability.

2. The parent company has made the decision to make a significant BioTech capital investment in the same region, which shows good confidence in the leadership capability of the region.

Lessons

1. The investment of leadership time on the generation of clear goals, underpinned by verifiable objectives is the foundation work for good quality and consistent change management.

Strategic Program
Portfolio Management

Testimonial

” I appreciate the candidness, expertise, the way/values of individuals. It is an interesting concept, I have in the past hired a number of industry experts – however there was no alignment, they would contradict each other. In Primecore there is a cohesiveness in the team, even though the backgrounds are diverse everyone hangs together, many different angles but not diametrically opposed.”

Snr. Director Capital Management

Background

Company size:  12,000 employes;  Valuation $100B to $150B (parent company)

Industry sector and location: BioPharma US

Assignment Duration: Six months

Client Sponsor: VP. Corporate Portfolio Management

Assignment Objective

In a previous assignment Primecore helped to develop the business processes and in-house capability of this company to manage capital projects in line with industry best practice. The company now wished to improve their processes at a higher level.

The assignment objective was:

  1. To establish a Project , Portfolio and Program Management business process which will prioritize strategic initiatives and ensure Program and Project Management resources are deployed onto those with the highest priority.
  2. To build the in-house capability to draft high quality strategic business cases and to sponsor business initiatives.

Approach

1. Built an understanding across the leadership team of how Portfolios, Programs and Projects differ and interact with each other.

2. Trained sponsors to present their proposed business idea in a simple standard format which could be filtered by the Leadership team to decide which initiatives would be progressed to the next stage.

3. Trained selected resources on the development of high quality business cases for the selected initiatives.

4. The training conducted by Primecore, to selected personnel, was further rolled out by these personnel to others within the company.

5. Using Primecore tools the initiatives were prioritized by the Leadership team.

6. The agreed strategic portfolio was governed by the appointed leaders on a monthly basis.

Outcome

1. There was clarity in terms of overall operational and site priorities, with resources, both financial and personnel, being appointed in line with the priority.

2. There was a recognition that resources are limited and to try to carry out too many initiatives in parallel (as was done in the past) was counterproductive which can (and did) result in key strategic initiatives not being delivered in line with the business plan.

Lessons

The developed business cases are of a high quality as per industry best practice.

The company now has a defined business process to prioritize business initiatives thus ensuring  that valuable resources are only applied to the high priority initiatives.

Strategic Program
Portfolio Management

Testimonial

“Primecore introduced and trained staff on a Program Portfolio Management system that is easily managed and maintained. Changed the culture of assessing and approving appropriate projects by ensuring the decisions are made based on the business needs and priorities and availability of resources.”

Snr. Director of Engineering (Europe)

Background

Company size: 3,000 employees; Valuation $20B to $50B

Industry sector and location: API Pharmaceutical Europe

Assignment Duration: 3 months

Client Sponsor: Regional Head of Operations

Assignment Objective

1. To align the leadership team around a common set of priorities.

2. To build confidence within the Leadership Team that business critical initiatives (product launches and commercialization) were receiving the appropriate leadership attention and resources.

Approach

1. With this particular assignment many of the initiatives were well understood but were being managed as standalone activities in terms of the coordination of resources.

2. A simple prioritization tool was developed to gain agreement across the leadership team on a common set of priorities.

3. Resources were applied in descending order of priority, with new programs only being activated once the higher priority programs were confirmed to be in control.

Outcome

The approach proved effective both at regional at corporate level.  At regional level it removed many of the frustrations and conflicts associated with differing priorities across functions, at corporate level it facilitated more candid communication in terms of what could be achieved with available resources.

Lessons

When working at a regional level, where the leadership teams are primarily involved with operational and technical issues, it is probably better to develop systems which are practical and aligned with the operational mind set rather than being too theoretical and business focused.  In these situations, where the business objectives are set by the corporation, it is really the role of the region to build clarity on the priorities and to ensure adequate resources are in place to deliver the expected results.

Establishment of a Portfolio, Program
and Project Management Office (P3MO)

Testimonial

“Over the last number of years I have worked with a number of the Primecore Program Managers and have been very satisfied with the all-encompassing program management service offered and the value that Primecore has brought to the business. In particular Primecore have a wealth of experience, professional competence and expertise within their team which supports and advises the individual Program Managers who are dedicated to site programs. This team pool of experience and knowledge puts Primecore among the best I have worked with when it comes to delivering value to their client in a timely and efficient manner. The Primecore staff I have worked with take time to understand the business requirements and tailor the solution to ensure the business outcomes are at the heart of the solution. Primecore not only supplied appropriate solutions but also takes time to impart knowledge to our employees enthusing, motivating and directing people towards taking ownership of the systems and procedures to ensure they are maintained and monitored.”

Snr. Director Engineering and Capital Projects (Europe)

Background

Company size: 3,000 employees; Valuation $20B to $50B

Industry sector and location: API Pharmaceutical  Europe

Assignment Duration: Eighteen months

Client Sponsor: Regional Head of Operations

Assignment Objective

To fully integrate the Portfolio, Program and Project management into a single fully aligned organization.

Approach

1. While operating a fully integrated P3MO office can result in a more agile organization and will deliver significant benefit, it does require the organization to have a reasonable level of maturity in terms of its existing business processes.

2. This particular organization had an operating Portfolio Management process (both strategic program and capital project) in place and had developed good business processes to govern strategic Programs and Capital Projects.

3. As many of the business processes were already in place much of the effort was expended in the coordination of the activities to make best use of leadership time. The P3MO office provided significant efficiencies by providing a single repository for all program, project and portfolio data.

Outcome

1. This particular assignment was successful, but often P3MO offices prove to be in effective. The key reasons for the success were the high levels of maturity in terms of Portfolio and Project Management and the commitment of the Regional Head of Operations to see this process through successfully.

Lessons

Primecore recommend focusing on developing Project, Program and Portfolio business processes as standalone entities before trying to fully integrate them.  The project and portfolio processes should be developed first followed by the Program Management capability and ultimately the integration of all three.

Portfolio, Program
and Project Management Office (P3MO)

Testimonial

“Primecore has brought a deep and wide level of understanding and experience to our Project and Portfolio Management processes. We have partnered with them to develop a robust process spanning the planning, governance, execution and benefits realization of capital projects.”

VP Global Engineering

Background

Company size: 12,000 employees; valuation $100B to $150B (parent company)

Industry sector and location: BioPharma  US

Assignment Duration:  Phased over eighteen months

Client Sponsor: Director of Capital Projects &  VP. Coporate Portfolio Management

Assignment Objective

In a previous assignment Primecore helped to develop the business processes and in-house capability of this company to manage capital projects in line with industry best practice.

The company now wished to improve their processes at a higher level.

The objective was to enable the business to establish and manage the optimum portfolio of projects and programs to realize the goals in their 5 year strategic plan.

Approach

Following discussion with the client stakeholders the decision was taken to develop a fully integrated Portfolio, Program and Project management process P3MO.

  1. The Project Management business process had been developed in a previous assignment.
  2. The early months of the assignment focused on the development of Program and Portfolio Management business processes and the training of key personnel on their uses. There was a need also to develop an organizational design for a Portfolio Management Office integrated with the existing business processes
  3. A Program Charter for the PMO was drafted and endorsed by the business top level of leadership. A PMO Roll Out program was generated to manage the implementation through to close out against agreed success criteria
  4. Programs were prioritized and launched to deliver the highest priority business cases
  5. The follow on months were spent mentoring the various Program and Portfolio leaders on how to apply these principles to ‘real life’ situations.

Outcome

The outcome proved successful in that the organization ultimately achieved P3MO but the process followed could have been more structured and gradual.  The concern Primecore would have with an assignment like this is its sustainability post initial roll out; as business change on this scale in a relatively short time frame (six months on the Portfolio and Program management business processes in comparison to the twelve months spent on the Project Management business process in a previous assignment) places great pressures on the operations leadership.

Lessons

Primecore recommend focusing on developing Project, Program and Portfolio business processes as standalone entities before trying to fully integrate them. The project and portfolio processes should be developed first followed by the Program Management capability and ultimately the integration of all three. Primecore recommends sequencing the roll out of business processes focusing on one business process change at a time (e.g. Project, Program or Portfolio).  We have found that business processes typically take twelve months after initial roll out before they become a fully embedded ‘business as usual’ practice. Over ambition in terms of leadership change will lead to change fatigue and the risk that the leadership and management will revert to the original business processes.

Capital Project
Portfolio Management

Testimonial

“Primecore introduced and trained our staff on a Portfolio Management system that is easily managed and maintained. They changed the culture of assessing, selecting and approving projects, with approval decisions now being made based on the business needs and priorities and availability of resources.”

Snr. Director Capital Projects Europe

Background

Company size: 12,000 employees; valuation $100B to $150B (Parent company)

Industry sector and location: BioPharma US

Assignment Duration:  Phased over 24 months

Client Sponsor: Director of Capital Projects & VP. Corporate Portfolio Management

Assignment Objective

Primecore received a request from a large Pharma company to review one of its manufacturing operations. The operation in question had a large number of active projects and was struggling to manage these projects efficiently. Apart from the waste of personnel and financial resources, the operation was also in danger of failing to deliver on a number of significant business commitments.

Approach

Primecore suggested a two stream approach to resolve the issue:

  1. Working closely with the client to establish a prioritized set of business objectives for the operation. These objectives then became the basis for prioritizing all active projects. Lower priority projects were put on hold allowing resources to be focused on defined set of higher priority projects.
  2. The parent company had developed a good quality project management (Stage gate) process, but this process was not being followed the operations Project Managers. To address this, Primecore developed and rolled out a Training and Mentoring Program to provide Project Managers with the necessary capability to deliver capital projects in line with established Project Management ‘best practice’.
  3. Primecore also took the practical step of providing a highly competent project manager capable of managing the delivery of high quality preliminary designs to overcome near term challenges.

Outcome

The outcome of this particular exercise was both successful and sustainable. The key enablers to the delivery of the Project Portfolio process were:

  1. Alignment amongst the Leadership team around the operations business objectives.
  2. Alignment around the prioritization of the projects needed to deliver these business objectives.
  3. A realistic data driven approach to the number of projects that can be executed utilizing available resources.
  4. The capability to execute projects in line with established best practices, particularly during the early stages of the project.

Lessons

In the absence of a single business prioritized portfolio, projects will get approved and activated based on other criteria:

1. Functional preferences,

2. The strength of influence of an individual member of the leadership team.

3. The preferences of the individuals executing the projects.

Strategic Capital
Portfolio Management

Testimonial

“Primecore brings a team of professionals with extensive industry experience and the insight that comes from having done the work. These are not consultants talking theory – these are professionals that have worked on major projects and learned the lessons. Through our collaboration with Primecore we have been able to ensure that our programs and processes are informed by industry best practices and when we have needed resources to fill a gap or accelerate an initiative Primecore has provided the right talent to help us succeed.”

VP Global Engineering

Background

Company size: 14,000 employees; Valuation $20B to $50B

Industry sector and location: Biologics US, Europe & Asia

Assignment Duration: 2 months

Client Sponsor: Snr. Director for Global Capital Management

Assignment Objective

To align the Capital Plan with the defined strategic objectives of the company as set out in the operations strategy and long range plan.

To build a five year rolling Capital Plan for Global Operations

Approach

1. The Capital Projects group worked with strategy to understand the future state requirements in terms of capacity planning for the upcoming five years to identify gaps where additional capacity would have to be brought on line. From this a five year Capital Plan was developed

1.1 Year one – The strategic planning would establish whether to make or buy (CMO) the future product and where/from whom.
1.2 Year two – Involving the planning phases (concept and preliminary design) to establish a detailed scope along with a good quality Level III schedule and +/- 15% estimate
1.3 Years three to Year six – These are the project execution phases.

Outcome

This exercise was surprising in its simplicity, and was generated in a very short time frame.   As well as providing excellent alignment between the capital planning group and the strategy organization it also  resulted in a three year rolling capital plan (planning and execution phases) being put in place for each of the sites.

Lessons

The timeline from strategic planning to full commercial product can be as much as six years for large biotech investments.  Most companies make the mistake of delaying the commencement of strategic evaluation and planning  until very late in the business cycle with the result that these two business critical phases are rushed and sub-optimum solutions (e.g. too capital intensive) are executed.  The pre-planning and planning phases are time consuming but inexpensive to execute, starting these phases early can result in significant benefit to the company.  In situations where the business case changes  it is relatively inexpensive and quick to adjust these phases in line with the business revised demand.

Non-Strategic (sustaining)
Capital Portfolio Management

Testimonial

“Primecore worked hand in hand with our regional leaders and a small core group of subject matter experts to develop and roll out a brand new capital governance process. The strong collaboration between the Primecore personnel and the internal team members provided the mechanism to rapidly deliver a high quality product. Through the course of the entire project, Primecore demonstrated maximum professionalism, flexibility, and the ability to bring in new innovative ideas to meet the firm’s needs whereby the local leaders could quickly assess and align and move towards the desired end state. The results have been overwhelmingly positive and the process has been well integrated into the operations capital planning and execution. The process is able to bring a balanced approach between appropriate level of structure, analytical tools, and the necessary flexibility for judgment in order to have an optimum non-strategic capital expenditure and sustaining a complex and global operational network.”

Snr. Director Operational Engineering US & Asia

Follow up with client 1 year Post-Implementation

“A great moment of pride came about out of nowhere during the biennial Regulatory Agency inspection at one of our sites last week! The inspectors probed and asked “How do you manage the lifecycle of your production related assets at the your relatively aged facility?” We shared the asset condition assessments completed as part of the non-strategic capital planning program and the inspector felt this is BEST in CLASS practice. Was apparently thrilled. That made my DAY. I loved it!!”

Background

Company size: 14,000 employees; Valuation $20B to $50B

Industry sector and location: Biologics US, Europe & Asia

Assignment Duration:  12 months

Client Sponsor: Snr. Director for Global Capital Management

Assignment Objective

To invest non-strategic (sustaining) capital in the areas of greatest business risk.

To develop a clear understanding of what the optimum investment level is in non-strategic capital, where it should be invested and the implications of budget reductions in terms of risk to the business.
To develop a three year rolling budget for non-strategic capital.

Approach

1. This initiative was initially piloted on the supply chain for four ‘business critical’ products (each represented > 10% of company revenue and profit).
2. The manufacturing network for each product was evaluated to understand the business risk associated with each equipment system. The need for asset replacement was determined based on a combination of:- the general condition of the equipment, the criticality of the equipment to supply (e.g. are there back up systems available) and the available capacity elsewhere in the network.
3. Each asset which required replacement within a five year period would be included in a five year rolling budget.
4. The equipment with the highest risk levels were included in years one and two and those with a lower risk level were included in years three to five.
5. A heat map was generated for each network to demonstrate to Snr. Management the current weaknesses in the network and the five year plan to address these weaknesses.
6. Investments >$1m would not result in immediate replacement but would trigger a strategic review to satisfy the company that the proposed solution was the optimum solution in terms of business benefit.

Outcome

The outcome was much improved communications between the capital management group and the business leaders. The capital management group took a much more business based outlook when making capital decisions. Investment levels were minimized for products which were of low value to the company and/or those products where the company had surplus capacity in the network. Conversely, measures were taken to de-risk situations where business had brand critical product weaknesses in their supply network.
The company was also in a good position when it reviewed capital budgets as it could assess the business risk associated with reducing or deferring capital spend on non-strategic capital investments.

Lessons

Traditionally companies have struggled in their attempts to determine the appropriate level of capital needed to be invested in a site or network in order to ensure that it operates reliably and in a fully compliant fashion.  It has been difficult to understand the level of risk that a company is taking when setting, and in some cases cutting, their non- strategic capital spend. The approach taken in this program was very successful at establishing the optimum level of investment. Once established the company could then decide whether to:- invest in line with the optimum, cut the capital budget and take additional (but evaluated) business risk or in some cases,when company performance is planned to be higher, to increase non-strategic capital spend.

Network Capacity Model

Background

Company size: 22,000 employees; Valuation $45B

Industry sector and location: Biologics US, Europe & Asia

Assignment Duration: Three months

Client Sponsor: Global Head of Network Capacity and Planning

Assignment Objective

Following a major acquisition which more than doubled the client’s product portfolio, the client wished to consolidate the legacy network capacity planning models which had previously been in place. The client wished to establish a standardised capacity model for the new business which could be used to profile internal and external capacity utilisation over various forecast planning horizons.

There were three main requirements for this new model:

  1. The first requirement was to create a demand repository where all long-range forecast and near-term horizon S&OP demand requirements would reside, could be uploaded seamlessly from the legacy host systems and could be compared for all the products in the expanded portfolio.
  2. The second requirement was to create a capacity utilisation repository, which would be informed by the demand data and the output capacity from each of the unique capacity work centres across the entire network’s internal and external work centres. In turn, this repository would produce graphical representations of work centre capacity utilisation, and the utilization analysis capable of expressing utilization at the level of work center, product family and network.
  3. The third requirement was for both the demand and utilisation output files to be available for use by the wider organisation without the need to have access to the detailed working files which operated behind the output files and contained all the technical characteristics of the various work centres.

Primecore was retained to create and deliver the network capacity model which would satisfy these requirements.

Approach

Primecore developed a deep understanding of the existing demand models across the enterprise to appreciate the extent of demand data configurations which needed to be standardised e.g. Units of Measure (UoM), dose presentations, sizes, strengths, marketed countries and regions.

Primecore connected internally within the client organisation with each of the demand data system owners to gain in-depth knowledge of the system functionality which could help identify opportunities to extract demand data in an efficient and standardised format.

Primecore worked with the existing Network Capacity team to understand the work centre capacity characteristics for all internal dedicated and multi-product work centres and for all external work centres.

Outcome

Primecore successfully managed to have demand output formats from the host systems converted into an efficient format which could be uploaded seamlessly to an XL based flat file demand repository.

Using a variety of data manipulation functions, array functions, list tables, and conversion factors, a demand summary tab was created with a product drop down which displayed the long-range forecast demand and the S&OP demand side by side for each product in the portfolio, using standard Units of Measure.

A graphical output was also produced which enabled the client to immediately identify any discrepancies in the long-range planning forecast and the short-term S&OP demand horizon.

The demand file was also constructed with the capability to automatically highlight the addition of any new product or country demand in new forecast data sets.

Primecore was able to identify and automatically resolve legacy discrepancies in product, country and region nomenclature which previously had to be manually corrected.

A further XL based flat file structure was created to capture the demand and capacity characteristics for every unique work centre. Using a similar variety of data manipulation functions, array functions and list tables, a graphical representation of capacity utilisation by work centre, product and network was created.

The demand and utilisation output files are now available to the wider enterprise to support demand and capacity utilisation analysis without having to access the detailed working files.

Lessons

Connecting with internal demand data system owners across the enterprise can highlight quick win opportunities which can result in more efficient demand data extracts being provided for the business.

Time can be well spent by companies in the phase immediately post-acquisition to develop standard nomenclature for product names, countries, regions and Units of Measure.

XL based flat files are extremely versatile interfaces with complex Financial Planning and Analysis (FP&A) and ERP systems

Capable personnel with client experience
Expertise to ensure the best use of your scarce resources