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Document Management - Cost Savings Solutions

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Cavendish

The document discusses implementing a print management service program to reduce costs through document management. It defines print management as systematically increasing productivity and minimizing errors in information capture, transmission and recovery. This involves work flow analysis, graphic design techniques, administration control, standardization, and ensuring adequacy of records and printed material. A true print management program covers many business process aspects and helps maximize return. The document emphasizes analyzing documents/forms to determine how they are used, and designing them based on the analysis to increase productivity and reduce errors. Effective document management and control is presented as a way to impact a company's bottom line.

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1 CAVENDISH Document Management Cost Savings Solutions COLIN THOMPSON IGNITING YOUR BUSINESS
2 CAVENDISH Document Management - Cost Savings Solutions By Dr. COLIN THOMPSON Improving the quality of systems is necessary to accelerate with impact organisations in the 21 st century. The competition for customers is getting fierce. Customers want and expect much more from company personnel. This publication will help you to improve your skills in empowering people to deliver quality service excellence of `The Management of Printing and Business Processing that includes all hard and soft documents to raise the `bottom-line`. This publication will help you understand the `Hidden overhead that will be affecting your business and every organisation globally that will impact an increase in the `bottom-line`. Businesses that invest in people and systems will `win`, because they care more than other organisations. Each company should care about its personnel and business systems. The world is about dedication to the people and business models environment, since it is people and business models that make companies work, technology only helps people and the business models carry out their job more efficiently. Becoming the best, so to `accelerate with impact your business growth`, I have set out to fulfil several objectives; * To remind Directors of some of the basic principles that you need to invest in people and business models. * To establish a framework for the detailed review of all aspects of the day-to-day operations of the business, leading to the identification of problem areas and the development of action plans to improve performance and accelerate with impact the company. * To establish guide lines and methods of planning to ensure the long - term growth and prosperity of the company and for the company to stay in business longer because of the quality of its people and business models. The accent throughout is on common sense and simplicity, with an avoidance of management gimmicks and minimum use of jargon. Busines life is about dialogue that we `all` understand and respond to. So make the playing field equal, so all people understand the language used and the action to take, to receive and accept, so business life is successful for `all` involved. Yes, you can achieve all things in life by your attitude to be positive, you have the solution in you, so go forward and use it now and be successful in your business growth. Improving business efficiencies using Document Management with the objective of savings in time and cost. "Only one yardstick could be selected for the measurement of business progress, it might well be the business document; in this day and age every business is erected on a foundation of paper" Edward N. Rausch
3 CAVENDISH Document Management - Cost Savings Solutions BY Dr. COLIN THOMPSON Cavendish Kings Court School Road Hall Green Birmingham B28 8JG UK Telephone: + 44 (0) 121 244 1802 Fax: + 44 (0) 121 733 2902 email: info@cavendish-mr.org.uk Website: www.cavendish-mr.org.uk © Copyright 2008 Colin Thompson First Edition 2008 The material contained in this book is set out in good faith for general guidance and no liability can be accepted for loss or expense incurred as a result of relying in particular circumstances on statements made in the book. The Laws and Regulations are complex and liable to change, and readers should check the current position with the relevant authorities before making personal arrangements. PROVIDING THE SOLUTIONS FOR SUCCESS
4 CAVENDISH Document Management - Cost Savings Solutions Contents PAGE Profile Colin Thompson 5 Executive Summary 7 A Winning Attitude Leads To Success 8 The Managing of Printing and Business Processing 9 An Introduction to Document Management and Control 16 Document Control - Saves Time and Money 20 Simplified Communications 23 Document Management is Vital in Today's Business Operation 26 Print Outsourced - Out Smarted 33 The Partnership Principle 35 Strategic Alliances 39 The Forms/Document Industry 45 The Content Management System 49 Leading Change To Today's Organisation 54 For Your Success - More Get Up and Go is Required 74 "The greatest pleasure in life is doing what people say you cannot do." Walter Bagehot, British author, economist (1826-1877)
5 CAVENDISH PROFILE COLIN THOMPSON Colin Thompson has over 30 years experience as Managing Director. His career to date has given him a complete exposure to business management and management of people. He has wide experience in PLC and private company’s in top level management of increasing sales/profit. Also, turnaround and re-engineering experience linked to new corporate identities and successful mergers/take-overs. Plus, developed many business models to increase profitability and the retention of employees, customers and suppliers. Technical skills/knowledge  Directorships Chairman Managing Director Director-Print Management and Workflow Solutions Director-Operations/Customer Service and Marketing Director-Financial and Administration Non-Executive Director  Professor - European Business School, Cambridge, UK  Chairman - Oxford College of Management Studies  Former Group Chairman of The Academy for Chief Executives  Initiated New Corporate Identities, also Managing Director: Datagraphic Inc. UK, division of USA Group Forms UK plc (now etrinsic plc) division of InnerWorks Inc.USA WH Smith PLC - Print/Distribution and Workflow Solutions Kenrick & Jefferson Group Ltd Mail Solutions Group Ltd, division of SSWH PLC
6 CAVENDISH  Able to successful bring new Products and Services to market i.e. a) Set up new UK `green field` manufacturing/distribution/workflow systems organisations and market new Products and Services. b) Research, development and design of a Print Management Service, including writing a book `Print Management and Workflow Solutions`, plus many other publications and business models. c) Produced CD-ROM `Interpreting Accounts for the Non-Financial Manager`- adapted from my two-day course for Anderson’s-Chartered Accountants for their clients. Plus other business and education models to increase productivity, retention of customers, employees and suppliers that increased net profit and cash flow. My training and knowledge has enabled me to take an overall view of an organisation, its operations and strategy. Also, to understand with a degree of competence in a wide variety of business skills and functions. I have dealt with challenges at a high level of complexity, especially those that cut across the common functional divisions of business. Developed several business models to raise the `bottom-line`. Education: BA, MBA, DBA, CPA, FFA, MCIPD, MCIJ My experiences and knowledge have enabled me to write and have published over 400 articles, several books, guides, research reports, and several CD’s/Software on business and educational models plus speaking at International Conferences and Visiting University Professor. DDL: + 44 (0) 121 244 0306 Mobile: + 44 (0) 7831 588310 Main T: + 44 (0) 121 244 1802 email: colin@cavendish-mr.org.uk Website: www.cavendish-mr.org.uk
7 CAVENDISH Executive Summary There has been considerable talk about business needs over recent years and the approach to the quality of people, systems and business models. We have all heard the saying ` business is simple, but people make it difficult`. The reason for this statement is that businesses, of all sizes, do not put enough time, effort and money into improving the quality of people, systems and business models so they can accelerate with impact the business growth for long term benefits. Improving the quality of people, systems and business models is necessary to take companies through the 21 st century. The competition for customers is fierce. Customers want and expect much more from company employees, the systems and business models implemented. I believe that the contents of this publication will help you to improve your skills in empowering your people to deliver quality and service excellence that will impact an increase on the `bottom-line`. We need a new, positive approach to customer care throughout the business environment. Everything we do must be calculated in terms of whether it helps or hinders your efforts to look after your customers externally and internally. We must get closer to the customer. The customer is `king`, and I hope that the contents of this publication will help you win those customers (externally and internally) who want the best service. The management of all hard and soft documents is so important to improve the way you operate the business more efficiently and effectively to improve the `bottom-line`. Businesses that invest in people, systems and business models will `win`, because they care more than other organisations. Each company should care about its personnel, systems and business models. The whole contents of this publication is dedicated to the people environment and business models, since it is people and business models that make companies work, technology only helps the people carry out their job more efficiently. It is the business and personal goals that produce the rigour and thought that lead to the production of a plan that will improve company and individual performances. Simply put, the goal structure is as shown below: Distinctive Capability - The clutch of skills or competencies that distinguishes the company from the competition and will enable it to seize the opportunities that arise in the future - whatever they may be. Market/Product - The focus of application for the company's skills and competencies. Identify - Communicating a clear, positive perception and image of the company to each of the audiences who are important to its future wellbeing. People - Organising the skills and competencies of the company to meet the needs of the customers both now and in the future. Profit/Performance - Defining the results expected. ! - Customising the strategy to meet the special needs of an organisation and the individual. "It is not the mountain we counter, but ourselves." Sir Edmund Hillary, New Zealand mountaineer and explorer (b.1919)
8 CAVENDISH `A WINNING ATTITUDE LEADS TO SUCCESS` (Every one in the company should have one!) Winners are people that strive to be all they can be, and will go to great lengths to reach there potential. An internal burning desire drives them to be successful. They possess a positive attitude and can focus their energy. They become stimulated by the challenge of creating the future they want and then act to complete the task. You need the `right` people to implement any business model to improve the `bottom-line` of your organisation. Creating a winning attitude comes from first setting clear, concise and attainable goals. The objective of goal setting is to provide a clear sense of direction and to properly plan and organise events and performance. The next step is to establish a positive self-image. We can attain this through a personal vision of successful future accomplishments, acting confident and being proactive. Other steps include monitoring your performance against your targets as this would motivate you to give an extra effort if you are falling short of measured goals. Finally, reminding yourself of your victories will reinforce a positive attitude and maintain a winning state of mind. When results do not materialise as planned, a winning attitude helps to look towards the next time and next opportunity. Attitude is the difference between a non-win and a failure. A person only fails when he or she quits. Trying again means that he or she has learned one way in which they cannot achieve the goals. But striving to be successful takes attitude! Be passionate for success and your disciples will make it happen! This business model of `The Management of Printing and Business Processing` that includes all hard and soft documents to raise the `bottom-line` is a requirement for all organisations to be more successful and have total control of this hidden overhead. "The greatest discovery of any age is that a human being can alter his/her life by altering his/her attitude." William James, US philosopher, psychologist (1842-1910)
9 CAVENDISH The Management of Printing and Business Processing that includes all hard and soft documents to raise the `bottom-line` The Hidden overhead that will be affecting your business and every organisation globally! What is `The Print Management Service Programme`? My definition of a Print Management Service, Documents and Forms are`the systematic process of increasing productivity and minimising errors in information capture, transmission and recovery through the use of work flow analysis and graphic design techniques; providing administration control; reducing procurement, storage, distribution and costs through standardisation; and ensuring the adequacy, business as well as legal, of all records and printed material`. Even with a definition as long as that, explaining Print Management Service, Documents and Forms and is never easy. This is especially true when the term `Documents Management`, `Forms Management` and `Print Management` are constantly used and abused. The concept has often been a way for vendors to sell more printing. Some vendors provide warehousing, distribution and inventory reports, and call this either Documents/Forms/Print Management. But there is not a provision in this method for Print Management/Documents/Forms analysis, improved design and many of the Print/Documents/Forms functions. The `true` Print Management Service programme covers many aspects of business process and the specialist is very knowledgeable about how business models operate to help you achieve maximum return. Other vendors provide design services and some control functions but no warehousing and distribution. Without a close watch on inventories, it is difficult to plan combination orders or reduce the incidence of rush/emergency orders due to depleted stocks. Still, other vendors provide all these services but they are interested in only high volume Print/Documents/Forms. If, the vendor representative is not as concerned about the print/documents/forms that use 1000 copies a year as he/she is about the high volume print/documents/forms, the enormous clerical expense associated with print/documents/forms is not addressed. This is not `true` Print/Documents/Forms Management. So be careful you appoint a specialist with skills/experience and the knowledge of business models to help your business become successful. Briefly stated, Print/Documents/Forms Management is involved with the elimination of paperwork and an improvement in clerical efficiency, both leading to a reduction in company's expenses. If you think print/documents/forms costs are insignificant, think again. "95% of all information is stored on paper, only 1% of information is stored on computer, 4% is stored on microfilm or optical disk (as digital data)!" Over the last 20 years optical disk and digital systems have increased in importance. "66% of all jobs belong to white collar or` knowledge workers`, and this level is predicted to reach 90% by the year 2010. 75% of all salary costs go to office workers. These knowledge workers produce no product but deal with information as their out put. Focus on the process of creating the document and conveying the productive output (information) of the knowledge worker can substantially increase productivity and lower costs". The `true` Print Management Service Programme achieves maximum savings that drop to the `bottom-line`. Managing the print/documents/forms of business, including business print/documents/forms, is one method of affecting the companies `bottom-line`. One of the best ways to ` focus on the process of creating the print/document/form and conveying` it, is through an effective Print/Documents/Forms Management Service Programme. How then does one implement Print/Documents/Forms Management? What are the components of a Print/Documents/Forms Management Service Programme?
10 CAVENDISH For the purpose of this publication we will call the system, `The Print Management Service Programme` as the generic name. This name is used by most of the `specialists` who offer a Print/Documents/ Forms Management Service Programme. This publication will provide some of the basic answers to these questions. In the first part I will address document/form analysis and document/form design; and in the second part I will address document/form control, and warehousing/distribution. Please note a good `Print Management Service Programme` must include all these components. Document/Form Analysis and Design I will define the difference between document/form analysis and document/form design. Document/form analysis is` the systematic execution of those steps necessary to ensure that productivity is increased in preparation, use, buying and retrieval; the total number of documents/forms within the system is minimised; data element relationships are apparent through consistency and adherence to standards; the effectiveness of the entire system as well as the individual document/form is enhanced; and the resulting business tool communicates`. Document/form design is termed as `design analysis` and that in addition to resulting in the design layout, (it) increases productivity by creating a basic business tool which is self instructive, encourages co-operation response, provides for easy entry of data, reduces the potential for error, facilitates the use of the information, and enhances the organisations image. Document/Form Analysis vs Document/Form Design Document/Form analysis resolves what goes on the document/form, while document/form design continues the analysis until it resolves how to best arrange and present the information. Or another way to look at it, document/form analysis determines who, what, when, where, why and how the document/form is used. Document/Form design, on the other hand, decides how the document/form looks and how it is constructed. Good work in analysis and design can speed a document/form programme to its goal of eliminating paperwork and improving clerical efficiency, both leading to a reduction in company's expenses. As a basic tool of clerical operations, thoroughly analysed and well designed documents/forms provide many benefits. They look good, and better-looking documents/forms have more appeal. Well-analysed and designed documents/forms provide for easy entry of data and allow for easier use of the data. They reduce the chance of error when entering or retrieving information. They are self-instructing. It is a good idea to have a `document/form initiation request` to force (persuade) the sponsor to give the document/form and its use some thought. The document/form initiation request gives basic information about the document/form, who initiated it, who authorised it, when it will be used. The request document/form gives the document/form analyst a place to start the analysis and to ask the old journalism questions of who, what, when and where. What is the purpose of the document/form? Question and need of the document/form should always be the first step in document/form analysis. Dr. Ben Graham, an international expert in productivity analysis, relates a key anecdote to illustrate this point. While he was working in Venezuela with a manufacturing company which wanted to streamline its entire operation? After careful analysis of all documents/forms as they related to the workflow, one document/form remained unidentified. Although it was duly completed, routed and filed and it had been for many years, no one really knew why it was being used. It just always had. After much research, it was determined that the document/form had been used during World War Two so that the manufactured goods could be loaded on a ship that was to join a convoy crossing the Atlantic. Remember this was 1973 and the usefulness of this document/form had ceased. Moral of the story always determines the purpose first to see if the document/form is even needed.
11 CAVENDISH Who initiates the document/form? Is it one person or one department within the company or many persons/departments? Is it always the same person? Does it stay in the originating department? Perhaps many people within the company who may not have detailed instructions or policy manuals initiate it. Is it a public use document/form such as a credit card application, hospital admission, or utility application? Who receives the document/form? All the same questions apply for the receivers as the initiators. Does the document/form go outside the company? or if so, are there logo type and graphic standards that must be considered? When is the document/form completed? Daily, weekly, monthly, annually? Where is the document/form used? Is it a clean, well-lighted office? Or perhaps a manufacturing environment full of oils or chemicals? Maybe it is a shipping or receiving area, which is poorly lighted and dusty. Where is the document/form stored? Is it in an office or in a non air-conditioned warehouse? How have the most questions of all. How does the document/form work with other documents/forms? Is their information copied from or to it? Is information from this document/form keyed into a computer system? Is the information sequence correct and are the captions the same? Does it work with bar codes or MICR? How is the document/form completed, by hand or by machine, such as a typewriter, word processor, or computer? How is the document/form distributed? In what sequence are the copies removed? Are the copies legible, are the copies separated manually or is the process mechanised? Do people make copies? Do recipients use their copies? How is the document/form filed? Does it go into a binder or folder? If it needs hole punching. What size and how many holes? Is the document/form the right size for the file? What is the filing reference-serial number? company name, customer name? There are many checklists in the literature from the `true` Print Management Service specialist to help with questions such as these. To restate them, document/form analysis determines how the document/form is used and all its ramifications. Once this is done and the document/form sponsor supplies the document/form content, the next step is document/form design. Document/Form Design Document/Form design makes use of all information gathered about the document/form to arrange the data fields and construct the document/form for best use. First, there are technical components based on international standards or proven research. These are such issues as paper sizes, paperweights, colour, legibility, type sizes and measurements. Second, there are convention and proven practices such as data sequence going from top to bottom, and left to right, typeface selection and design consistency among documents/forms. Third is corporate identity, applying the logotype correctly and using designated type styles. Fourth is the creation design component, there is not just one way to design a document/form. Just because two document/form designs are different, it does not mean that one is better than the other is. Although a requesting department is depending on Print Management design and analysis, it must be remembered that only the document/form sponsor can know whether or not a document/form is needed. Only the sponsor knows when a document/form should be kept in use, only the sponsor knows what information is required on the document/form. The role of Print Management is to ensure that good analysis and design skills have been used during the document/form creation and that it conforms to corporate standards.
12 CAVENDISH Remember document/form analysis and designs are integral parts of a comprehensive Print Management programme. Document/form automation via electronic document/form requires even more thorough analysis prior to design. In addition to all the considerations addressed in this publication concerning conventional documents/forms, a host of other issues come into play when designing an electronic document/form. Just a few of these issues are determining interaction with databases, structure for intelligent or conditional movement through the document/form, and electronic booting. Detailed discussions of these topics however go beyond the scope of this publication. Document/Form Control Considerations In addition to document/form analysis and design, Print Management requires that certain document/form control functions be provided. These are document/ form identification, indexes and files, document/form tests, obsolescence studies and management reports. Document/Form Identification There are two primary ways to identify a document/form, by its title or by its document/form number. There are many different ways to assign document/form numbers, but keep these issues in mind; a document/form number is just an identifier-not a code. The way the Print Management programme works on identification is a master control number in sequential order followed by a family number which is the department; by a function number which is the numbered document/form being used in that department and the date the document/form was initiated for use. After the document/form has been in use, of course, if the document/form is revised for any reason, it must be given a revision date so that the records accordingly can be updated on the revision of any document/form by a revised indicator of date. This must be entered on all data appertaining to this particular document/form. Document/Form numbers and titles are the two most useful ways of identifying a document/form. Generally the number is most useful to the people who control the Print Management programme, while the title is most useful to the document/form users. All documents/forms have titles. A document/form title should be brief but descriptive. It should include a subject such as `cash` or `delivery` or `employer` and an action or function such as `to report` or ` to notify` or `to agree`. It is not necessary to use words such as `for` or `card` in the document/form title. It is also best to place the subject first and the action second. For example, `Employment Application` instead of `Application for Employment`. An alphabetical catalogue will list the subject first and avoid many `requests for`, `notice of`, `application form`, and `listings`. Indexes and Files Once a document/form has a number and a title, it can be entered into a database or word processor system with sorting capability. Creating an index by document/form number, alphabetically by title, and alphabetically by sponsoring department. Remember that users often use a document/form title of function, but not the document/form number. Having an index by title or department can be a lifesaver. There are three types of files for document/form control-the master control, the family control and functional control. The master control file contains everything you need to know about a document/form history, such as the document/form initiation request, proof approvals, specifications and copy of each for revision, production notes and comments, artwork and so forth. Artwork may be filed separately or there may be nothing in the master file but the artwork and current samples and the original request document/form. The other types of files used in the document/form control are the family and function files. Briefly, the goal of the family and functional file is to improve productivity by reducing clerical effort. The family file is an indicator for the department that the document/form is being used and the functional file reveals and brings together all documents/forms doing the same operation within each department. One sample of each document/form is filed by the function it serves, not by the department name or subsidiary name. Print Management specialists always file by master, family and functional records.
13 CAVENDISH The functional file is beneficial because you can spot document/form duplications, overlapping documents/forms and good candidates for document/form consolidations. This is an extremely useful file, but one that know-how to start and considerable time to maintain. Very few companies have functional files and to conduct Print Management right, a functional file is highly recommended. Document/Form Tests Another document/form control function is testing the proposed document/form to see if it works in the real environment. Based on the test results, the design, the layout, wording and so forth can be modified and then re-tested. Document/form testing is especially needed when diverse groups within a company, documents/forms such as cheque requests, purchase, use the document/form requisitions, expense statements. Testing is a must if a document/form is received by (and if it must be interpreted by) the general public. Two good examples are tax documents/forms and telephone bills. Testing is also necessary if the document/form is completed by the public-for example applications for social security or employment. Obsolescence Studies Another document/form control function is the obsolescence study. Departments rarely notify the Print Management group when a document/form is no longer in use. It is up to the Print Management staff to initiate an obsolescence study. Why find out if a document/form is obsolete? In part, cutting out obsolete documents/forms helps cut down the Print Management team's record keeping and file space. Warehousing costs can be reduces by decreasing the number of documents/forms stored and the amount of space used. Finally, if the total number of documents/forms never shows a decrease, management will question what is being done to manage the documents/forms and to keep them under control. How does one perform an obsolescence study? That depends on several factors. How easy is it to review the order history` manual or automated`? That depends on several factors. How much clerical support is available to pull samples, check the order history, and check on replacement sponsors? Are filing and warehousing space at a premium? After the sponsor has returned the enquiries, there is still much work to do. If the document/form is active, find out why it has not been ordered for so long. Are the users photocopying the document/form or have they arranged for printing on their own? If the document/form is cancelled, what is replacing it? If the replacement document/form does not have a document/form number, there is more follow up work to do. When a document/form is cancelled, it must be removed from active to cancelled status and all records purged. For instance, the document/form index, from history file, from artwork file, etc all must be closed down. The artwork and history files are moved to an inactive file or records storage area. Under no circumstances should ordering of paper etc be ordered by any department, it must all be ordered through the Print Management team for full control. The results on all obsolescence studies should be reported to management. Include the number of enquiries sent the responses received the cancellations processed and the square footage free in the warehouse. Other interesting findings should be reported as well. Management Reports A Print Management Service Programme whether in-house or vendor supplied must justify its existence all the time. Management wants pertinent statistics, the number of new, revised, cancelled and reprinted documents/forms as well as total number of documents/forms. To continue justifying being part of the team information on document/form improvement should also be provided.
14 CAVENDISH Document/Form improvement boils down to three goals, fewer documents/forms, better documents/forms and more economical documents/forms. Show management these three issues every time you file a Print Management report. To achieve fewer documents/forms, you must eliminate unused documents/forms, consolidate existing documents/forms, and merge new document/form requests with existing documents/forms, file existing documents/forms to serve new requests without modification. Better documents/forms mean creating more clerically efficient documents/forms-enabling increased worker productivity and reducing human error. Remember, documents/forms are designed differently for completion by hand, machine or by computer. For instance, take into account the need for correct spacing, the carriage returns, and hand entry; make sure strike out boxes are aligned properly, ensure that there is design consistency, and take care to see that file holes are pre-punched so that employees do not have to punch each document/form as it is used. Think ahead and save clerical money! Most economical documents/forms mean they are designed to reduce printing costs as well as storage and distribution costs. To keep costs low, make sure to use standard paper sizes, standard paper colour sequences, and standard ink colours. Do not get caught in the trap of making recommendations to save manufacturing pounds, the clerical processing time will be increased. This is a false saving. Remember that the clerical cost of processing a document/form has been calculated to cost at 20 times the cost of printing a document/form. Excellent savings can be achieved by taking on board the knowledge of the `true` Print Management Service Programme specialists who know how businesses operate in every sector. In other words the people are business model specialists who understand business process. An easy way to report documents/forms improvements to management is to provide a simple list of the document/form numbers and a brief description of the improvements by category `consolidation`, improved clerical efficiency, reduces manufacturing costs`. Include in the value example hard pound savings of each of these improvements as well. The statistical and description reporting should be done on a monthly basis. But there are many other opportunities, such as special projects or displays to let management know what the Print Management programme has done for the organisation recently. Warehousing and Distribution Considerations. There are several options for the Print Management team to determine how to keep the company supplied with documents/forms. One option is to use electronic documents/forms and have no-printed documents/forms. Currently, this is not a viable option for most companies. Another choice is to print documents/forms on demand. This works well for low volume cut sheets or pre-collated carbonless sets. However, it is not cost effective for speciality items such as custom continuous documents/forms, unit sets with special features, tags, labels or special envelopes. As a result, most companies require some sort of storage for the documents/forms which are used in large volumes or which are printed in advance using specialised equipment. Companies can obtain warehousing and distribution fairly easily. A manual in-house operated stock room or automated warehouses are possible choices. Most Print Management companies manage the total flow of documents/forms, where by you do not need the cost of warehousing and distribution. Well managed warehousing and distribution is important to the Print Management programme. Why? Because knowing when stocks are reaching their depletion point allows time to review the situation. For instance, documents/forms can be reviewed prior to reprinting; and the review can be used for additional analysis-and possibly the analysis will lead to additional document/form considerations. Adequate lead times also eliminate rush/emergency printing charges-allowing you, the Print Management team, to get the right item to the right people, at the right time and at the lowest cost.
15 CAVENDISH There are other issues; however, the important issue is the warehousing and distribution component of a successful Print Management programme. The most critical issues are correct unit of issue; backs orders and correct data entry. Correct Data Entry The maximum` garbage in, garbage out` (meaning, you will get inaccurate statistics and reports- output-if your input data is incorrect) was never truer than in this instance. Accurate reorder reports, accurate usage figures and accurate order histories are totally dependent on quality control of data input. All of these reports affect the ability of the Print Management programme to ensure that documents/forms are available when needed and that documents/forms pricing is not subject to emergency charges. Of course, no data entry is ever going to be 100% accurate, cross verification from other sources can be useful and a physical inventory should be carried out at least once every six months to double check the report inventories. What other issues do `true` Print Management specialists need to address? There are a number of reports from the warehouse that are useful to the team-quantity on hand, reorder notices, monthly order history and end usage information. The quantity on hand report details the current inventory of each document/form. It can also include such items as unit of issue, value of each item and last reorder date and quantity. The value of each document/form details how much the inventory is worth. This is useful for budgeting and insurance purposes. Recorder Reports Reorder reports enables the Print Management team to know which documents/forms are at a depletion point. The documents/forms on the reorder report can be cross-referenced to a document/form list sorted by size to help determine combination orders. The monthly order history gives trend information. It helps with documents/forms that are used seasonally. It is also useful when trying to predict accurately when a document/form must be reordered. Conclusion The ideas in this publication are a good place to start if considering the implementation of a `true` `Print Management Service Programme` or while evaluating an existing programme. Remember, when run properly a `Print Management Service Programme` positively affects the companies `bottom-line` in a very positive way, you save an enormous amount of money and become more efficient and effective in operating your business. Print/Documents/Forms are a part of every companies business whether provided in house or from a vendor or by a combination of the two. A `Print Management Service Programme` should be an essential part of every companies business as the third dimension of control for your company. "The greatest pleasure in life is doing what people say you cannot do" Walter Bagehot, British author, economist (1826-1877)
16 CAVENDISH `An Introduction to Document/Forms/Print Management and Control` Document/Forms/Print Management Service This service will be defined in this article has a `Print Management Service Programme`, which is any activity or formal programme in which a specialist assumes full responsibility for all of a companies requirements as detailed below. 1. Design 2. Cost engineering 3. Origination 4. Maintenance of clients corporate image 5. Printing plate and negative maintenance and CTP 6. Documents/forms/Print requisitioning 7. Procurement 8. Storage 9. Distribution 10. Stock Control 11. Reports to management These requirements are important considerations because usually more than 75% of the paper used by information workers consists of documents/forms. The price a company pays for documents/forms represents a small percentage of the cost of use. A `Print Management Service` control programme can significantly reduce procurement and ownership costs. Why the need for a `Print Management Service? Most companies of any size have systems and procedures staff but these people usually find themselves embroiled in top level procedures, which partake of the nature of the core business of their company. They never find time to work on the smaller ubiquitous manual procedures involving 9 out of 10 documents/forms. As a result, the computer procedures involving the main core business are served well but because of the lack of computer and business analysts, the problem of manual clerical expense goes begging for want of time. Research has shown that purchasing departments responsible for consumable supplies are at the bottom of the priority list for computerisation and with the ever increasing demands made on the IT department; the purchasing department will have to carry on waiting. Even when computerisation is implemented in the purchasing department, the level of sophistication of the software usually does not live up to the expectation of the users. Negotiating the price Purchasing departments, traditionally in the Europe operate at arm length from their suppliers and trade one off against another in an attempt to strike the optimum deal. The hidden threat of a company indulging in alternative sourcing is always paramount in the mind of the supplier. This method of negotiating works very well in the majority of cases but making a price value judgement on such items as specially printed business documents/forms for use on high cost computers is very different.
17 CAVENDISH Controlling documents/forms expenditure Within most companies the control of documents/forms is non existent. Even in large companies the control rests in the hands of someone who does not have a dominant interest in controlling the mass of documents/forms and details of the paperwork expense. This person is usually on the payroll at a level, which means that the responsibility cannot be more than a passing interest. Experience shows that such control passes over as that person is assigned or moves on to bigger and better things either within the company itself or elsewhere. Partnering arrangements The way forward is in partnerships, which are geared to the long-range solution of the problem. If the company reduces its cost and operates more efficiently and the `Print Management Service` specialist makes a profit, who loses out? The answer must be the Print industries gross income, which is not necessarily reflected in, reduces profit. How, therefore, can a `Print Management Service` specialist enter into a `Print Management` service with all the consultation time and expense without charging an additional fee that would kill the attraction of the programme? Production line operation The answer is found in a simple, established economic formula that Henry Ford applied when he put a car within the reach of every average family in America. That formula is the substitution of production line operation for the job shop operation with the inevitable increase in economics and efficiency. The commercial printing industry is the only major industry, which operates almost on a job shop basis. Jobs come in one at a time. The printer must be equipped to handle them that way usually on a short delivery basis that precludes the possibility of scheduled planning for the most efficient use of the equipment. Job shop operations means a separate machine make ready for each job. This, in turn, means more downtime for the machine instead of profitable operating time. You only have to imagine what a made-to-order car would cost as opposed to a standard model to appreciate what you are paying for when you send a spot order to the printer. The difference between production line economy and job shop cost is the key that makes it possible for a `Print Management Service` specialist to supply all the features of a `Print Management Service` whilst charging no more than the average print manufacturer who bases the charges on mere paper and ink and the manufacture of printed documents/forms. To highlight my point, a further example is in the cost structure of listing paper. Listing paper is made under the production line operation theory and its low price reflects this. Cost reduction As is true in any manufacturing process and printing is one; the substitution of production line operations for job shop operations usually means improved economy of production. Costs are lowered by means of grouped or combined production of documents/forms for many customers. Couple this with the fact that the `Print Management Service` specialist has control of all the origination under its roof so that every time a job is printed, the printing plates are made from the same photographic negatives created and maintained electronically. By following this business procedure the `Print Management Service` specialist can guarantee that every time a document/form gets printed it gets printed correctly. It is these internal cost reductions in production of documents/forms that repays a `Print Management Service` specialist for the other services it provides.
18 CAVENDISH Using expert systems The `Print Management Service ` specialist has the ability to perform this enormously complicated function of an advanced `Print Management Service` is made possible by its very sophisticated computer software. Computer networks The `Print Management Service ` specialist has immediate access to its suppliers and likewise gives those suppliers not only access to the `Print Management Service` company database but also to its electronic artwork system which contains all of the documents/forms originated by the `Print Management Service` specialist under a confidential agreement. It is now possible for manufacturing suppliers to take this graphic information directly from the `Print Management Service` company files and convert it into press ready printing plates. This obviates the need to produce expensive photographic negatives and means that a repeat order will be ready for production within minutes rather than days. Customers linked electronically The `Print Management Service` specialist would have many if not all their clients linked electronically. Thus allowing access to appropriate areas of each others database. They therefore have the capability not only to view real time information on delivery schedules etc, but also to look at the full historical usage and specification of any or all of their documents/forms. An additional bonus is that they are also linked to a vast electronic mail network. The `Print Management Service` is unique. Most Print Manufacturers selling direct to the end user have not developed the computer system procedures and networks to even begin to match the comprehensive services of `Print Management Service` specialists. What are these services and how important are they? They are the function at the core of the programme of a `Print Management Service` which attacks the basic causes of excessive paperwork costs, going after the seven eighths of the paperwork iceberg that is hidden under the surface. Melting the paperwork iceberg. The `Print Management Service `specialist will establish control over the paperwork problems by building a control file of all the company's documents/forms. Every document/form used throughout a company should be classified by function within a systemised family thereby hanging together in one electronic file-a specification of all documents/forms with overlapping or similar functions. This reveals duplications, makes possible the elimination of superfluous documents/forms and prevents the inception of unnecessary new documents/forms. Therein lays the real key to the internal control of paperwork costs. Through the information available from this functional index of documents/forms the company can do several very important things each of which goes rather beyond the mere fact of documents/forms control as such, but lies in an area contiguous to documents/forms control. Cost engineering A primary function in a comprehensive paperwork programme is the creation of standard design and specifications for the company's business documents/forms. This applies to the physical properties of the documents/forms not to their language content. The printer is not concerned with the words or image on the paper but must have some common denomination in the physical properties such as the size of the document/form, the number of colours, quality of paper, ink colour and all the other items that govern the production operations. The `Print Management Service` specialist will develop high standards with the client and will advise on cost engineering benefits.
19 CAVENDISH Warehousing to prevent stock out Lack of inventory control will, of course, kill the economics of production line manufacturing faster than any other factor. The need to print emergency orders to replenish nil stocks will put the printer back on a job shop basis. The most expensive document/form that you will ever use is the one that you required when you are out of stock. A` Print Management Service` will alleviate this problem by warehousing the documents/forms for its clients. Document/form bank A `Print Management Service` specialist will guarantee that you never run out of stocks. All past order information relating to clients documents/forms are stored on a database, which periodically issues pre-printed, requisitions and simultaneously generates a manufacturing production schedule. The software automatically group's together documents/forms with like specifications to ensure that the most economic system for production is created. It is by this method that a `Print Management Service` specialist is prompted to put stock back into documents/forms bank at the most cost-effective time. Total cost consideration Cost engineering of documents/forms to ensure that they are produced in the most economic way is very important. However, the cost of the document/form represents only 6% of the total cost of using the document/form. A `Print Management Service` specialist frees the client of the functional aspect of his paper flow, reducing the clerical pounds/euros and helps the company become very efficient and in most cases saves thousands of pounds/euros on behalf of the client. It has been accepted that the `costs in use` figure is significantly higher than the cost of printing the document/form; for many years in the absence of any real empirical studies, a ratio of 20:1 has been used to emphasise this point. In viewing the paperwork burden as a significant part of the corporate overhead, management needs to develop a plan to apply practical solutions to the problem. "It is time for all of us to stand and cheer for the doer, the achiever - the one who recognises the challenges and does something about it." Vince Lombardi, US football coach (1913-1970)
20 CAVENDISH `DOCUMENT CONTROL - SAVES TIME AND MONEY All companies should operate a document control system because it saves time and money! It is estimated that around 80% of business information in companies is unstructured, and of that, only 20% is managed, yet it is hard to think of one business activity where content does not play an essential role. The result of this is that organisations lose time and miss out on opportunities to become more productive. Even worse, unmanaged information is an increasing liability for organisations that are frequently held to account on the basis of some information they could have destroyed, if only they had known they still had it. Operating an efficient and effective Document Management System will increase your `bottom-line`. In all organisations, document control is necessary because it helps you control the flow of documents, information and puts £`s on your `bottom-line`. In all offices, from the smallest to the largest, it is necessary to keep track of the number of documents being used. In the smallest office, the method may consist of only a periodic visual check of the document supply. In a large office that uses thousands of documents, a document control plan based on the systems family method will be needed. In a large corporation a functional file system is implemented to handle the thousands of documents that are used. Generally, the numbers of documents a company utilises determines the types of document control programmes that are employed. Document control determines many issues including re-order points, order quantity, potential combinations, and obsolescence. An organised document control programme should meet the following objectives; a. Serve as a point of reference and an historical record that should include some method of cross-reference. b. Conform to efficient alphabetical and numerical filing principles, and c. Provide a good degree of control, yet remain as simple and effective as possible. The major types of document control programmes used today are inventory control, systems family and functional file. Inventory Control One of the most commonly used methods of document control is the inventory control system in which an inventory file is maintained for a client or by the client directly. An inventory control system is often used in the small to medium sized company that has a small number of different documents. The primary purpose of an inventory control system is to check the usage of the documents so that running out of documents does not occur. When document warehousing is provided, inventory control is commonly part of the package. An inventory of the documents is taken periodically usually once a month and records updated at that time. Sometimes a client does the physical inventory and furnishes the figure to the document consultant so that the usage figures may be updated. The system may be manual or computerised. However, in today's world of electronic record keeping systems, it is seldom cost effective to maintain a manual system. Spreadsheet client records are kept on file so that a simple report is issued each month. A document inventory control system helps to prevent a company from running out of documents, thereby eliminating the need for costly rush orders and special handling. An inventory control system is a good selling point to get and keep key accounts, especially when fast delivery is important. It provides economy in the production, storage, distribution and use of documents. In terms of cash outlay, this is the simplest and for many companies the most practical form of control system.
21 CAVENDISH Inventory control has no built in provisions for document analysis. Instead it relies on the professionalism of the document management consultant for the document analysis and design. A one or two month cushion should be built into the document re-order lead-time so that the document can be properly analysed. The document should be evaluated every time it comes up for re-order to determine if revisions are necessary. Systems Family The systems family method is an easy way to keep track of the multitude of documents used in a company. The system family has two basic functions, first to keep the document grouped for systems analysis and secondly, to assign a number to each document. It must be kept in mind that the systems family main function is to ease system analysis. The way that the systems family happens to provide document numbers is an added bonus to the system. The system family method is based upon the basic business functions; sales, production, transport, invoicing, accounts receivable, purchasing, receiving, storing, accounts payable and accounting. Each family can be further sub divided if that family has a great deal of documents in it. For example, sales can be broken down into dealer sales, direct sales, export sales etc. A company that has a thousand documents, for instance, can develop a manageable number of files by sub dividing the categories into fifty families. Of course, the number of types of families can vary from company to company. The most suitable numbers for this type of document control are three digit numbers that indicate the systems family. Each system family is assigned a three-digit number from 010 through to 999 in such a way that families are spread evenly throughout the series. Each document is given a number from the systems family, for example, the major headings and another three digit number from the master code within that family, for example, the sub heading. In the systems family method, each document is numbered. The numbers serve to identify the document family. The document number is normally a three-digit number but if there are thousands more documents in a family a five-digit number is required. Since most systems can manage within a three-digit system, it is usually better to sub divide a family that has a hundred or more documents into two or three families rather than to use five or six digit numbers. The document number should always be followed by the date of the most recent revision. If no changes are made to the document when it is reprinted, the date remains unchanged. To prevent duplications a master log is made up for each family to keep track of the document family. If desired, blocks of numbers within each family can be reserved for future documents. The analysis of a group of documents is made extremely easy with the use of a systems family method. The three-digit prefix distinguishes the entire document in one family and enables the rapid analysis of an entire system. The systems family method is easy to learn and can be used by companies with thousands of documents. Only one folder is necessary for each document. Systems families are listed in alphabetical order and the alphabetical list is numbered, the folders are automatically in both alphabetic and numerical order. When documents are grouped by the systems family method, systems analysis is relatively easy. Like the functional file method, the systems family method requires relatively high set up and maintenance costs. It is an alternative to a functional file system and it does have its drawbacks. One major disadvantage to the family system method is the inability to classify documents for systems that do not fit the narrow confinements of the basic business functions. There are classifications such as personnel, computer operations, reprographics, record department that are not addressed by the basic business functions and should be included in a thorough system as the only way to control the whole documents of a business is to include all departments. This is the way for full control and maximum savings.
22 CAVENDISH The Functional File Conceptually a functional file is a classification system to aid systems analysis for large quantities of documents. In the functional file system, which is also referred to as a functional index, the files are categorised by functions. In a company that has thousands of documents a thorough system is needed to keep track of all documents that are in use. The functional file is the system that allows thousands of documents to be easily referenced. The functional file is the system in which documents are filed in two separate files, a numerical and functional file. Document number files the numerical file, which is a functional file system based upon individual preference. Alphanumeric or numerical division prefix followed by a numerical etc. The possibilities are endless. The document number is merely a method of identifying the document and is not related to a code for systems analysis. The numerical file consists of a separate folder for each document. The folder contains a few copies of the document as well as a historical account of document revisions, comments, specifications, samples, order history and information on the departments that use the document. It helps to identify different documents that may have the same number and it simplifies a task of contacting all interested parties when a change to an existing document is proposed. The unique document number files the folders in numerical sequence. The documents are unnumbered and arbitrarily assigned a number immediately. A functional file is created by collecting copies of all the documents used by a company for both inside and outside communications including note pads, envelopes and cheques. A thorough document collection can readily provide the answers to many system analysis questions. a. Is there a document in inventory that can be used? b. If not, is there an existing document that can be modified to do the work of two? c. Can this document be combined with another so that both can be completed in one? d. Can readily available stock documents be used to replace a product design or low usage document? e. What departments are using this document? f. Is this document obsolete? Because a functional file controls a vast number and variety of documents, the system requires a greater amount of time, effort, resources and maintenance. It must be kept in mind that the primary purpose of the functional file is for systems analysis. The functional file makes it extremely easy to single out an entire subject for examination. However, the job of collecting and filing the documents can easily take one-person weeks or months. It is estimated that a minimum of 8 minutes is required to categorise and file each document. Companies that have only 100 documents do not use the functional file. Instead, it is used primarily by organisations that have thousands of documents and their own documents control personnel. It is never too late nor too early for these types of companies to start a functional file. Unusually though such a file is not begun until after the need arises. For companies that have a multitude of documents a functional file is required to provide necessary systems analysis. All work carried out on document control can be operated successfully by a specialist workflow solutions company, which will give you ` full control` and the costs that drop to the `bottom-line`. "The secret of getting ahead is getting started. The secret of getting started is breaking your complex, overwhelming tasks into small manageable tasks, and the starting on the first one." Mark Twain
23 CAVENDISH `SIMPLIFIED COMMUNICATIONS` UNIFYING DOCUMENTATION BLUEPRINT Computers accelerate the volume and flow of information. But some questions remain. "Has your investment in information technology improved the way you communicate with your customers?" "Do people understand your documents and do they get information from your documents without struggling for it?" The answers in most cases will be no, but then most companies do not even ask the questions. For those who do and who want to improve their customer communications, the first problem is invariably "Where do we start?" There are usually two large obstacles to overcome, namely, deciding which of the documents to look at first and who actually has responsibility for each of them? To help tackle these issues and to establish a programme of improving the quality and efficiency of your documents, I recommend a `Unifying Documentation Blueprint. The objective is to come to grips with the diversity, complexity and cost of your communications and then to establish a comprehensive strategy for improving their effectiveness, while reducing the cost. Document Management focuses on the documents and electronic information that customers and staff need to conduct their business. The simplified communications we develop make your business documents easier to understand and use. They also act as a catalyst for organisation and technology changes that result in significant cost efficiencies. There are three phases to each Unifying Documentation Blueprint: 1. ANALYSIS In the first phase we analyse the documents used in your organisation and the processes that control them.  What documents do you have, who uses them and how?  Which documents are the key ones?  Who is really responsible for your documents?  How are they produced and processed?  What do they cost to produce and process?  What do your customers think about them? Phase 1 establishes which documents you REALLY need to conduct your business.
24 CAVENDISH 1. SIMPLIFICATION STRATEGY In this phase we develop a strategy for rationalising some or all of your documents and demonstrate how the information could be simplified.  Reduce the number of documents.  Reduce the number of different paper stocks.  Consolidate and restructure information.  Design page layouts and templates  Simplify the language.  Customise the information.  Develop a strategy for effective marketing communications. Phase 2 indicates how we SIMPLIFY your documents and document systems. 1. BLUEPRINT RECOMMENDATIONS In the third phase we identify which documents need to be simplified first, provide fully implemented examples of re-designed documents and set out recommendations for further work.  Establish priority for documents to be simplified.  Calculate anticipated cost benefits  Compare initial costs with potential savings.  Agree a timetable of document revisions.  Allocate resources and confirm responsibilities on both sides.  Provide worked examples of simplified documents.  Implement re-designed documents.  Recommend a programme for further simplification. Phase 3 shows what CAN be done and recommends what YOU need to do. SPOILT DOCUMENTS COST 15 TIMES MORE TO PROCESS THAN CLEAN DOCUMENTS… The cost of badly designed documents There are several reasons why people do not fill in documents correctly. They may not understand the questions, or there may be more than one answer. The sequence may be confusing, or there may not be enough space for an adequate answer. Whatever the cause, the consequences are predictable- frustration with the exercise, antagonism towards the organisation and a significant increase in administration costs trying to resolve the errors. The extent of these additional costs can be seen in the following calculation. `Spoilt documents cost 15 times more to process than clean documents` The Inland Revenue says so - and they should know! They say that this ratio is at least 15 to 1, and that is the figure we have used for this cost comparison. If a department processes 100,000 copies of a document each year, and it costs £10 to process each document, then the overall cost will be £1,000,000. However, if the error rate is say, 20%, then the additional costs are a staggering 280% of basic processing costs.
25 CAVENDISH Processing costs for 100,000 documents Error Spoilt At £150 Clean At £10 TOTAL Rate Documents per copy Documents per copy 30% 30,000 £4,500,000 70,000 £700,000 £5,200,000 20% 20,000 £3,000,000 80,000 £800,000 £3,800,000 10% 10,000 £1,500,000 90,000 £900,000 £2,400,000 0% - 100,000 £I,000,000 £1,000,000 Every 10% reduction in the error rate saves 1.4 times the basic cost of processing. The benefits of well-designed documents include fewer errors, more efficient administration, more satisfied customers and significant cost savings. `Reduce the number of documents and reduce costs` The cost of too many documents Each year, organisations tend to increase the number of different documents they use. This means increased costs and the potential for greater confusion among their staff and customers. Organisations rarely reduce the number of documents they produce, either because they do not recognise the problem or they are unable to find a solution to it. However, a Document Management Specialist who has considerable experience in simplifying and consolidating systems of documents can save an enormous amount of time and money. The benefits of reducing say 9 documents to 1, or 40 to 7, are significant and quantifiable. It is recognised that the cost of processing a document is at least 20 times the cost of producing it. Processing includes administration, filing, transport, storage, inventory and obsolescence. Assume that the general operating costs of a large organisation are £10 million a year, and 2.5% of this figure, £250,000 represents the cost of producing all of its documents. Any significant reduction in the number of documents will result in a reduction of costs for production and processing. The extent of the savings can be seen in the table below. PROCESSING COSTS Reduction Production Processing Total SAVINGS In documents costs costs costs 0% £250,000 £5,000,000 £5,250,000 10% £225,000 £4,500,000 £4,725,000 £525,000 20% £200,000 £4,000,000 £4,200,000 £1,050,000 30% £175,000 £3,500,000 £3,675,000 £1,575,000 Annual savings are typically 10-30 times the cost of consolidating documents. Develop quality communications through a Unifying Documentation Blueprint and save money/time/gain customer satisfaction and total control of the future.
26 CAVENDISH DOCUMENT MANAGEMENT IS VITAL TO BUSINESS SUCCESS IN AN INFORMATION SOCIETY Today's information explosion has contributed greatly to the rising costs of operating a business. If you wish to save money/time, read on! Very often underrated in this age of automation, business documents remain a critical part of the overall picture and are important links in the chain of any organisation information resources. Both hard documents (paper) and soft documents (various types of electronic document systems and screen formats) are vital communication tools that collect, transmit, and distribute information. Despite technology, chances are good that a company can be overwhelmed by information and still find it unavailable at the right place and time. Automation does not automatically improve information collection and transfer-or its cost. Valuable employee time may be sacrificed to retrieve and digest data; still more time is lost filling out documents to feed the information system. Documents represent sizeable hidden costs-especially when not properly managed, nor their affect upon the system adequately understood and evaluated. This is a direct and indirect impact on administration expenses, profitability and an organisations ability to compete. As already accurately described by leading Print Management Specialists, a prerequisite to future success through effective management of information, is management's ability to take full advantage of every opportunity to increase their companies competitive edge through the timely flow and quality of information throughout the organisation. While also improving `bottom-line` profitability. Documents represent a considerable cost containment opportunity; they can add significantly to the efficiency (or inefficiency) of information systems. If you look at the figures of some companies they indicate that at the typical company, the percentage of documents is equal to only one half of 1% of its net sales, but the cost of using them is 20 times greater. This means that the total cost of documents can affect the `bottom-line` profits by as much as 10%. The key to increased office (information) pro-activity lies not only in utilisation of today's technology, but in information transfer systems, which have been adequately researched and evaluated. Creation or a vision of these systems (including documents) without thorough analysis, treats only symptoms of the problem (issue), leaving the disease untouched. Paperwork and its associated cost keeps multiplying Whatever happened to the prediction that the new technology would imminently bring us to a paperless society? In reality that very technology has brought on a new avalanche of paper in the office and at home- unequalled since the proliferation created by the invention of the copy machine! The 1970 UK document sales volume was £80m, in 1981 volume exceeded £250m, by 1993 the figure was £520m and the amount predicted for 2010 will be £2b+. Time enough, the new technology has brought about quantity declines in certain types of documents, such as unit sets and continuous forms. However, that same technology has also directly and indirectly spawned entirely new ones; mailers of all guises, datamailer pieces, labels of all kinds, colourful pre-printed documents of every description for the personal computer, and the list goes on. New products appear almost daily; to meet the requirements of new equipment, methods, systems and objectives. In addition, the new technology has summarily provided for the birth of a whole new generation of document producers and even greater quantities of new documents. It took one individual about as long as it took me `about 15 minutes` to figure out that. With all their new user friendly hardware and software in front of them, they could not only fill in data on a screen, but they could generate their own graphics, spreadsheets, reports of all kinds and produce their own documents.
27 CAVENDISH Do it yourself electronic information is being `manufactured` at a blinding rate (in quantities as yet not accurately identified) on every conceivable type of desk top, printer and copy machine; in quick-copy and in-house printing facilities and corporate offices. The purposes for avoiding any discussion here of the identifiable value of all these activities to the organisation, we can get at least a rough idea of its end-result product. As far back as October 1985, `High Tech Marketing` asked and answered an interesting question, ` Who is the world's largest publisher? ` Random House, Simon & Schuster? Wrong. It is Fortune 500 in the USA. In a single year, American business offices generated gargantuan 2.5 trillion, yes, trillion, pages of reports, manuals, letters and other printed material. By 1990, industry's sources the total corporate print output was 4 trillion pages, enough to bury the entire country under a blanket of paper several layers thick. Europe is no different to America and we are following in their footprints very closely. Although, the use of paper is about 6 trillion pages at present in the USA, this will slow down due to the world-wide-web or will it! The old, overused slogan `Garbage in, garbage out` can now be updated to reflect `Inefficiency/unnecessary/expensive garbage`. Or simply, `Who is minding the store? Anyway, no matter, the value of the French proverb `the more things change, the more they remain the same`. Obviously, documents are not going to go away! If anything, they are more likely to increase in number, type and cost if organisations do not implement a `Document/Forms/Print Management/Workflow Solutions Programme`. Document/Forms/Print Management still a viable answer But, what for a solution? (By that I mean, a pragmatic business like approach to cost containment). Can not technology help? Yes, it can. It is. At present not very much! How does that mean, new ground to be broken? Not necessary. Just such a cost containment programme already exists, one that uses proven standards and techniques. Remember back before the time when documents and other paperwork were supposed to have disappeared-I mean way back, before technology was supposed to be the single best solution in helping business make really good management decisions. Well, to be efficient in this technology age, you need to start a programme that controls the costs of documents purchased and processing. This programme can be called any of the following; Document/Forms/Print Management Service. Document/Forms/Print Management is an effective cost containment programme, which emphasises practical applications that produce identifiable cost benefits/improvements (not mere theoretical speculations) and which also emphasises the efficient movement of business information. Through an aggressive, results orientated programme such as Document/Forms/Print Management; many organisations have realised a 10-40% reduction in Document procurement costs alone, with as much as 10-20 times an amount in processing and file maintenance cost savings. Document/Forms/Print Management works in all sizes of organisations. An excellent publication to read is `The Guide to Print/Forms Management Service`. A comprehensive guide to implementing a Document/Print/Forms management system. Please visit www.cavendish-mr.org.uk for information. Using proven techniques such as information flow analysis, valued analysis/engineering and professional document/form design, Document/Forms/Print Management can achieve long range simplification of information transfer systems. Information transfer systems represents a significant initial and continuing economic investment for any company or organisation. The quantity and flow of information will reflect the degree to which they are managed. The efficiency and cost of administration, in turn, is affected by the application of standard management techniques for evaluating, guiding, maintaining and auditing information to increase productivity and reduce processing costs. Document/Forms/Print Management is not a production function. It is primarily analytical and development in nature. This is important to emphasis because of a tendency to view Document/Forms/Print Management as a records, drafting and/or graphics activity. Personnel skilled in Document/Forms/Print Management are not only necessary, but also, essential in order to realise the greatest economic value from information systems, design and analyst.
28 CAVENDISH Benefits of Document/Forms/Print Management If you refer to the chart figure 1, this illustrates the breakdown of a document/forms cost to a company. Although it was developed primarily for hard documents/forms, simple reflection will provide soft document/form equivalents. Figure 1 Why Documents/Forms are never cheap! The initial price of a document/form is only the beginning. A larger cost perspective is CRITICAL to understanding the total impact. The following is a partial breakdown of document/forms costs; 4.4% = Manufacturing costs  Design  Approval  Ordering  Proofing  Recording  Manufacturing  Receiving  Warehousing 84.4% = Clerical processing costs  Requisitioning  Delivery  Receiving  Storing  Entry  Checking  Approval  Filing  Retrieval  Transmittal  Distribution  Copying  Reference to/study of  Additional entries  Transcription document/form
29 CAVENDISH  Refiling 11.2% = File maintenance costs  Storage  Retrieval  Transfer  Retention  Disposition Reduction in the number of documents/forms, of course, could mean that either fewer staff would be required for processing, or that existing personnel will be able to take on work which might otherwise require additional staff. Data Processing documents/forms are often the larger volume documents/forms and cost more to purchase, but generally generate the least use expense. Here is an example of the cost of processing a document/form; `The average document/form is used in quantities of 2000 per annum`. An average of 25 minutes is spent completing, reviewing, and filing each document/form. This amounts to 50,000 minutes or 833 payroll hours. Add to this an average of 28% of clerical time is wasted on poorly designed documents/forms, and bells start going off all over the place! My years of experience as an Information Management Specialist has shown me that most organisations need 50-60% of their documents/forms to be redesigned, just because they are clerically inefficient. The chart in figure 2 shows how each of the various components of Document/Forms Management contribute to the overall cost containment benefits, directly and indirectly. Figure 2 The Relationship of Document/Forms/Print Management Components to Overall Cost Containment. Document/Forms systems analysis-identifies essential information transfer systems and determines the most efficient implementation methods by;  Preventing undue duplication of documents/forms and systems.  Eliminating unnecessary documents/forms and systems.  Ensuring processing techniques conform to systems, objectives and other requirements.  Combining documents/forms/systems with similar objectives.  Implementing information transfer systems as a minimum overall cost.  Selecting the most efficient processing medium required for implementation and providing necessary communication of essential information.  Assisting in long range planning with good information.  Improving communication  Increasing employee morale  Minimising `rogue` documents/forms and systems.
30 CAVENDISH Document/Forms Design Analysis-determines the information arrangements/configuration, required spacing and general specifications for efficient use. It offers the following benefits;  Ensure that configuration integrates into all phases of the system.  Standardisation of clerical activity.  Strengthening of departmental quality standards.  Ensures that specifications are maximised for clerical efficiency.  Sustained company image. Document/Form Design-which involves planning the pattern or sketch of information, offers the following benefits;  Ensures construction and design are maximised for efficient use.  Integrates into the document/form all phases of the information system.  Assures usability to professional standards, limitations/requirements of equipment.  Improve user psychological response/attitude.  Provide integration between systems.  Minimise entry errors. Document/Forms/Print Procurement-reduce `bottom-line` expense by;  Assurance of cost effective procurement procedures.  Elimination of multiple editions of the same document/form.  Standardisation of specifications.  Volume contract buying. Document/Form/Print Inventory, Warehousing and Distribution-reduce unnecessary waste and expense by;  Promoting adequate low stock levels.  Providing assurance against stock outs, over-stocking, new stock being issued before old stock is exhausted.  Ensuring storage conditions are safe, legal, best use of available space.  Implementing and maintaining policies and procedures, which ensure against over-stock and frequent emergency deliveries. Document/Forms/Print Management Procedures-minimise the economic impact of information transfer systems through such processes as;  Evaluation, creation, guidance and maintenance of cost effective systems.  Expansion of costs audits.  Prevention of the creation of unnecessary information, transfer systems, documents/forms and equipment.  Education of/and assistance to operations personnel in economical information transfer procedures.
31 CAVENDISH  Consultation with management on all aspects of transfer systems related procedures and media. Document/Forms Numbering, Records, Indexing Tasks-reduce unnecessary duplication costs and provide;  Unique item identification.  Location of common characteristics in function.  Identification of common specifications.  Location of using areas.  Cost allocation.  Identification of common systems relationships and data elements. Document/Forms/Print Management Automation Produces limited improvement. Technological advances as well as economic and sociological trends, have already and will continue to impact business document/forms in very fundamental ways, i.e. the end product of the industry has changed. Examples include such items as;  The number of certain pre-printed documents/forms is declining.  Advanced equipment is changing design and production methods.  The definition of a document/form is undergoing evolution.  Few hard documents/forms go through their life cycle without interfacing with one of the new technologies.  There has been a rebirth of what used to be called the `plain vanilla document/form`. There is no more universal a document/form than a blank sheet of paper! Technology has also spawned the need for people in the information management profession to learn new technologies, increase their skills, and broaden their exposure to inter-relationships between all allied fields. The smaller computers and software in the office have permanently changed the way we all conduct business. Even new models of management are being tested! Realising that documents/forms are not going away, software developments are providing automated `helpers` from management. Desktop scanners are also beginning to play a prominent role by increasing the speed at which hard documents/forms data can be input into the corporate information system. The current Document/Forms/Print Management packages are primarily document/forms inventory, acquisition and distribution software-renamed. As valuable as material management is and it is, these developers have provided very little or nothing for Document/Forms/Print Management Systems administration functions. For these activities, Document/Forms/Print Management is left to maintain cumbersome manual methods. In addition, many packages offer nothing for document/forms design, again forcing perpetuation of time consuming methods. Separate document/forms design packages do exist, and often, merger attempts to adapt desktop publishing. It is an amazing thing to me that there are so many user friendly software packages out, which allow you (many with no little difficulty) to design documents/forms on a computer that you can not use on one!
32 CAVENDISH Many of these persist in using picas and points (ancient printing measurements), where many professional document/forms designers, of the most basic skills, will inform you that documents/forms are designed in inches for the depth of the document/form and in metric for width of the document/form! (It is true that a document/forms designer must understand the points and picas, but for other considerations). Some of the low-end software offers nothing more than what you could design (and I use that term loosely) on a desktop computer. Also, what is the logic in using technology that is in conflict with that used by the professional industry in question? Some of the descriptive terms are absolutely in error. Such as the use of half tones, shaded or grey areas for the most appropriate term-screens. The term lines is used instead of rules, even through the term `line` means to the professional analyst and designer, space for data entry. Some technology is just a bother, like landscape and portrait. When what you really mean is horizontal and vertical. The professional Document/Forms/Print Associations have raised this question with the software developers, but they become defensive, stating something to the equivalent of `well, we have got to make it conform to other software`! In conclusion Document/forms/Print Management (facility management of documents/forms) is necessary to control the third dimension of company's activities- to develop partnership plans to save time and money in the short and long term for industry. The implementation of this type of system will save money that drops to the `bottom-line`. "Motivation is always in direct proportion to the level of expectation." Denis Waitley
33 CAVENDISH PRINT OUTSOURCED - OUT SMARTED! The shift from traditional general Print Manufacturing to outsourcing flexible, value-driven strategic sourcing is vital to value creation. Outsourcing has reached a critical turning point in its evolution that is set to radically transform the way organisations work together to realise and create value. Enterprises are increasingly looking to outsource specific functions or entire business processes to achieve boardroom aims such as resource efficiency, business change and value creation. At the same time, the nature of outsourcing is changing with traditional customer-supplier relationships being replaced by true partnerships or business alliances with both parties working together to achieve common goals. The trend towards more flexible, relationship-based sourcing requires organisations to re-evaluate the way they approach and implement outsourcing. It requires a broader and deeper understanding of what sourcing means and how it can be used for maximum business gain in both the short and long- term. To promote understanding, there needs to be a fundamental shift away from the term outsourcing to that of strategic sourcing for `Print Management`. Pulling Power The challenge organisations face is that of balancing cost reduction with agility (agility is defined as flexibility to create maximum value). Expectations are racing ahead of delivery capability, in turn managing complex infrastructures and offering enhanced services at any time, and from any location, requires high degrees of skill and expertise, which can be an expensive drain on resources. On a broader level, organisations are aggressively looking to build strategic partnerships and broaden market reach. Overcoming Fears Some organisations will inevitably miss out on opportunities for partner expertise due to a negative perceived image of outsourcing, especially in the context of a traditional customer-supplier relationship. There is an understandable fear that by outsourcing; an organisation will lose control of important business functions, especially where a strong DIY culture exists. Implemented properly, the opposite is true. In my experience done right, any kind of tighter supply chain relationship, which is how I see this, gives you more control not less, because you are more likely to ask the right questions and to do things like setting standards for performance. The term outsourcing only plays on people’s fears as it suggests control will be placed outside of an organisation. This suggests new terminology is needed that reflects the shift towards closer, more open working relationships where the emphasis is on the `softer issues` of trust, openness, and honesty. The term business alliance or collaboration is more appropriate for today’s sourcing arrangements. It is this mindshift towards flexibility and collaboration that is generating success.
34 CAVENDISH Understanding the Benefits Outsourcing especially, Print outsourcing has been proven to reduce costs particularly where inefficiencies exist. Organisations can typically save between 20 and 40 per cent in this way. The more sustainable long-term benefits are likely to stem from added levels of service/quality and innovation. I neatly divide the benefits of outsourcing into value realisation and value creation. Value Creation - A strategic Approach Organisations need to ask themselves the following questions; `How do we assess the competence that people have`. `How do we apply that competence to whatever point on the business model or structure that we want to apply it`. `How do we release their capability faster? ` The effectiveness of outsourcing relationships, and thus the ability to create value, rests with the combination of people, skills and systems needed to bind together an organisations network of business units, partners and service providers. Organisations must align expectations with real needs; structure deals to take account of the long- term business objectives and ensure good communications channels and strong leadership are in place. With the right people, skills and systems in place, organisations will be better placed to develop mutually beneficial business alliances and take value creation and a closer strategic approach to sourcing to new levels. Evolving Process To benefit from a strategic sourcing solution, whether in terms of reducing costs or creating value, organisations need to treat sourcing as an evolving process of co-operation. At the outset, there are the obvious operational issues to consider such as managing costs, managing technical and supplier complexity and managing risk. The Way Forward The most successful sourcing arrangements are the most intimate; these are true partnerships, with sound and flexible contractual status and mutual rewards for cost reduction and profit generation. These are closer and more open working relationships with looser boundaries and each partner organisation feeling part of each other’s business. These alliances will require greater levels of trust and honesty than ever before. They will require new ways of thinking of sourcing alliance, sourcing collaboration and strategic sourcing. This business trend as gained momentum over the years and is essential for all organisations. In conclusion Print Management (facility management of documents/forms) is necessary to control the third dimension of company's activities - to develop partnership plans to save time and money in the short and long term for industry. The implementation of this type of system will save money that drops to the `bottom-line`. "You make a living by what you get. You make a life by what you give." Winston Churchill
35 CAVENDISH `THE PARTNERSHIP PRINCIPLE` THE WAY FORWARD IN THE PRINTING INDUSTRY Many European companies are now lean, fit and the `most` successful have learnt that the true key to long term prosperity is total customer satisfaction. However, not enough companies have learnt to move quality up and cost down to be able to keep pace with their international competitors. In today’s local economy, European business can no longer afford to think in terms of being simply a Union of consumers. It must `refocus` on becoming a nation of producers in order to survive and grow. To do this European companies must learn to address a strategic key issue. How to work with both suppliers and customers in partnership, not in conflict. The reason why Print Management Service organisations are very successful is they use the `partnership principle`. The natural world abounds in successful partnerships with the teaming up of widely different species for mutual advantage. Many creatures enter freely into partnerships with others of their kind, to find food, to firm their territory or raise the next generation. Human life reveals daily evidence of the benefits that partnership brings, creating collective achievement that would be impossible separately, working together as partners. Why is it then that in the world of work, the partnership principle so frequently fails? " Right then Alex. I think that’s about everything I can give you on the new specification, does that give your company enough to devote to the quote now? I think so Adam; we certainly got as much as you always give us. Just the same, don’t take anything for granted, just because you won the last contract. Don’t worry, I know we have to win it with fair competition; our practice has always been pretty keen. They need to be, our margins are under terrific pressure with this new company that has opened up across town. Do I take it that the contract will run for 12 months as usual? That’s right, but it won’t even get started if you can’t get the number of running charges down. There were only two last year, and that’s not bad. I know, but if it goes any higher, it will start to increase our defect ratio. We have always managed to keep within the agreed defect ratio, though, have we not and we have managed to keep prices down below inflation". Contrary to first impressions, what you see here is not a working partnership, it’s a short-term power based relationship concerned only with negotiating down the lowest price standards and accepting good enough quality standards. There is no sharing of information, no pooling of resources and the supplier knows that if he makes a mistake he is out, but he is still the traditional model for many customer/buyer relationships in British business. Human beings are creatures of habit, our lives are filled with patterns of behaviour that we never think to question, how much time over the years could have been saved by keeping cereal, sugar and milk close together? At home perhaps it doesn’t matter, there’s no compelling need for change, but in the workplace, acceptance of the status quo is fatal! Where competitors have learnt smarter working practices in delivering a more competitive product, slower companies inevitably face extinction. The message is clear "change or die". One of the key reasons why companies fail to make the breakthrough for world class standards of performance is the traditional adversarial relationship between customer and supplier, with both sides seeking maximum short term gains for minimum investment. In a relationship characterised by mutual distrust and insecurity, acceptances of low quality standards and ultimately lack of true international competitiveness. These relationships are mutually damaging, nurturing a vicious spiral of increased borrowings, vulnerability to better-organised competition and in turn furthers reductions in manufacturing capacity. This erosion of wealth creation affects the whole community and in the end, the well being of the nation. One stark example of what can happen is the progressive domination of world markets by the Japanese carmakers of less than 30 years. Where a whole industry has abandoned the inherent inefficiencies of western style mass production in favour of the more efficient lean production system, that offers far higher quality and low cost.
36 CAVENDISH Consumer electronics like cameras and televisions have followed the same pattern and for many more companies, industries and whole countries. It is now a race against time. Companies no longer have a choice; they must become internationally competitive to survive in the long term. This means, changing historical practices, values and attitudes and changing them on an unprecedented scale. As in our everyday lives, buying and selling are at the very heart of business, the way world class companies have changed the nature of that relationship, is now seen as a critical factor in their success. They have discovered `partnership sourcing`, so what does the new style of buying and selling look like? Professor Dan Jones, the author of "The Machine that changed the World" describes the principles. "The essentials of a lean supplier relationship are a shared interdependent shared destiny relationship with suppliers. I’m going to work with you over the long term; we are going to work together. Life is not going to be easy, we are going to work really hard, you and I, to analyse costs in great detail to constantly find ways of improving productivity, design to incorporate reduced costs. But, that has got to be done within the context of a clear, fair set of rules, defining how we split the profits from these activities. Otherwise, I wouldn’t share that information with you. If you know that you are going to get adequately rewarded for your efforts in improving a product or the production process, you are very much more likely to take part in trying to do that. `Partnership sourcing`, unleashing the creative talents of both the supplier and the assembler, and welding them together, meshing them together, unleashes so much more competitive power, than working separately and hardly talking to each other. In the future we are not only going to have to integrate our suppliers, we are going to have to integrate our retailers. We are going to have to integrate the materials and manufacturers, we can actually integrate the designers in a seamless web, all focused on the `customer needs`, incorporating the world- wide- web in business-to-business to be an interactive process of `Partnership Sourcing` using the `Partnership Principle". Partnership sourcing is the opposite of traditional buying philosophies, in this new type of relationship, the supplier is an equal partner with access to confidential information and a sharing of knowledge and ideas at the design stage of the project. The supplier takes the initiative in seeking design improvements in order to give his customer the most advanced product and is willing to invest in training, technology and facilities to help him do it. In return the customer will help the supplier to learn and work the contract, providing the supplier has demonstrated commitment. `Partnership sourcing` is about long term relationships and mutual trust, prices are agreed at the outset, within in-built acceptable margins to both parties. Customer and supplier then work together to achieve the result they both desire. The result is a product that is customer led, of a consistently high quality with a zero defect target and at continuously reducing costs. In other words a product that is competitive anywhere in the world. `Partnership sourcing` has been described as resembling the relationship between conductor and orchestra, both sides working together for a common goal, with the suppliers delivering the product in perfect harmony. For today’s most successful companies, these principles underpin their whole corporate philosophy. But, nowhere in business is the partnership principle well illustrated as in the motor industry. Where the Japanese lean producers are making strategic alliances with British and other European companies. Premier Exhaust Systems is one example of the company that has learnt the new way of doing business. When Honda entrusted them with the first contract, Premier sent staff to study in Japan. Back in the UK, they built an entire new factory with new working practices and a declared Goal to become Honda’s best supplier in Europe. Their leap of faith was rewarded. "I think the state the relationship has reached illustrated the power of `partnership sourcing`. When we started out, our goal was to provide them with very high quality exhausts so that they in turn could provide very high quality products to their customers. We succeeded in achieving our end of the bargain and they totally fulfilled theirs.
37 CAVENDISH They then come along and said to us, well, we would like you to make catalytic converters for us now and that was a big step for our company to take. But, again they introduced us to their suppliers in Japan; we built superb relationships with their suppliers at each level. Our people from the shop floor have been out there and worked in Japan with them so the relationship was really excellent and based on mutual trust at all levels in the company. That is also extremely significant in the contest of Great Britain Limited, if you like, because we have been able to invest with confidence, with a long term perspective, we have been able to manufacture products here in the UK, which might otherwise have had to be made abroad. If you multiply that effect many times over, it will have a profound effect on our balance of payments and our balance of trade. So not only doing things which we feel are good for our own business, we are also playing a part in what is essential to regenerate Britain’s manufacturing base". At the other end of the spectrum Guinness too recognise that their partnership approach pays handsome dividends, both to themselves and their suppliers. Draft Guinness in cans for instance provides an example of a successful new product launch where the supplier was brought in early on and made the technical breakthrough Guinness needed to bring the product to market. Guinness is quick to point out that their suppliers too find benefits from the partnership approach. "They are benefiting as well from the reduced costs, due to us having a much longer time approach in terms of orders, in terms of invoicing, in terms of rolling forecast and eventually working to an electronic data interchange. So with a total see through, they would look and see through our stock requirements and visa versa. That has already got us to the point where increases in costs can actually be taken out and they can be absorbed because of savings in some of the administration functions. The field of competitive sport provides the most extreme example of the interdependence between supplier and customer. When McClaren won the Formula One Drivers and Constructors Championship for five years the quality of their engineering can not be doubted, how has it been possible? "With McClaren we have some simple but very important values by which we run our company and I would put at the top of the list, trust, if you have trust in position with all your employees and with your suppliers, you avoid wasting a great deal of time in circling each other trying to identify when weakness and strengths occur in each other. Trust is a great tool to use in any level of any company or relationship, be it with a supplier or an individual. Of course, it is important to remember that trust is an extremely constructive value, but if trust is broken, it can be as destructive as constructive. We need our suppliers to contribute everything they can to our success and if we are fortunate enough to have that success, we will share it with them". There is no longer any serious doubt that `partnership sourcing` is a fundamental requirement for global competitive success, but it demands big changes in attitudes and values and a willingness to discard the outmoded baggage of yesterday's ideas. The most successful companies in the world already practice partnership sourcing or are taking rapid steps to reform from their old short-term principles. Change is possible. Just look at China to see how `Partnership sourcing` is a part of every day life. Partnership sourcing means that together you can look forward to a more secure future; there are lessons here for every business. `Partnership sourcing` isn’t an option, but a necessity, without it a company is uncompetitive. Many uncompetitive companies make for an uncompetitive country, and the fate of an uncompetitive country on the world stage is bleak indeed. "In order for businesses of all kinds to succeed in this century, there is no option other than to move up the quality, move with technology and value added spectrum. Now there is only one way that you can do that, you have to get customers and suppliers to move up the quality of added value spectrum with the long-term view of investment in technology and people and if you don’t do that, you will certainly die. Success for the future is fundamentally about `partnership sourcing` by using technology and people and it is not just in the motor industry, this concept applies across all of human endeavour in my view".
38 CAVENDISH A handful of companies in this country are now doing what is almost standard practice in America, Japan, Germany and China, that is forming long term partnerships with new and existing local suppliers and international suppliers to achieve the high standards of quality, innovation and continuity of supply at competitive prices. Many companies now use the Internet to communicate business-to-business, for marketing of products and services to a global audience. This will widen the availability and awareness of customers and suppliers and increase productivity for print manufacturers by better utilisation of machinery. This will drive down production costs and allow more competitive prices in a true global market. Large and small print Company's world - wide will be a part of a business culture of the most competitive firms to go forward and be successful in this century. The advantage of the world-wide-web, simplifies communications by informing customers and suppliers of the partnership principal via your own website. Communication is the key for the future, either by person and/or by changes in technology. To summarise, we daily witness an infusion of new technology, new types of competition, new ideas and new solutions. The opportunity exists for all those involved in this industry to actively take part in the changes for the future. But, it also demands personal communications with customers. They need to be advised of the implications of new technology on their businesses. They need new designs, new ideas and ways of reducing the cost burden of operating their business without reducing quality standards. Partnership principles should be a part of your business strategy, incorporating several technologies, which are merging or interfacing with each other to augment the success of those who employ them. Do not be scared of change, working with your customers, employees and suppliers makes your business a more exciting enterprise and far more profitable. Remember, you are only in business because your customer allows you to stay in business. Also, the retention of the `right` employees are a fundamental part of your success. Together with excellent relationships with your suppliers. When you have these working relationships, you will have success. “The biggest discovery of every generation is that humans can change their life by changing their mental attitude!” Albert Schweitzer
39 CAVENDISH Strategic Alliances An Overview A strategic alliance is a unique relationship between two or more companies working together on a project designed to generate a profit neither partner could achieve on their own. Alliance partners keep ownership of their own businesses, while contributing capital, expertise and other "tradeables" to the mutual venture. During the past decade, strategic partnering has become a more attractive option because of the wide range of benefits, without the risk and burden of paying for them. These benefits include:  Expanded access to markets  Advanced technology  Quicker product development  Broader geographic range The goal is finding a partner in areas where one or the other company has limited expertise. In a successful alliance, partners gain access to specific strengths -- such as sales, technology, finance, distribution, etc. -- that they do not possess themselves. Another driving force behind alliance-building is the desire to control the quality and performance of the entire production process, from raw materials to system design, from manufacturing to global distribution. Sharing Benefits and Risks The synergy generated by two cooperating organisations results in a sum greater than their parts. A successful alliance preserves each business' distinct competitive advantage and allows those advantages and core competencies to grow. Benefits of partnering also include economies of scale, resulting in:  Increased versatility  Reduced costs through increased production  Enhanced purchasing and financial arrangements  Stronger negotiating position with suppliers, customers and/or regulatory agencies  Greater access to critical resources  Opportunities for large-scale marketing efforts For the unprepared or uninitiated, a strategic alliance can be a minefield. Two of the most pervasive myths about partnering are: 1. "Alliances are easy to pull off." The process of alliance screening, assessment, negotiation, implementation and maintenance is anything but easy. To succeed, an alliance requires deep, organisation-wide commitment from all involved.
40 CAVENDISH 2. "Alliances are for everyone." In fact, the opposite is true. A partnership between organisations with radically different goals or cultures will most likely fail. CEOs and other alliance-builders should ask these questions of themselves and their potential partners:  What do we expect the alliance to achieve over a long period of time?  What effect will the alliance have on each partner's long-term competitiveness?  How will the staff of each company react? What about other stakeholders, such as investors, suppliers, customers, etc.?  Are we giving up too much proprietary information and too many processes?  What level of trust is necessary for the alliance to succeed and how much can we reasonably expect from our partner? The Path to Competitive Advantage Like any other business venture, a strategic alliance is driven by enlightened self-interest. The best partnerships are pragmatic enterprises that provide the resources, expertise and positioning each partner can not achieve on its own. When it comes to identifying a potential partner, a company's vision plays an integral role. Your company's vision should be inextricably linked to the selection process. What major competencies do you need in order to fulfil your goal of being the best in your industry? As you brainstorm your answers, you will identify specific areas and elements. This will help narrow the choices to two or three key partner candidates. Of course, in the rush to forge a partnership, remember that potential partners need a reason to welcome you into the alliance. Before approaching another business, make sure you have all of your own ducks in a row:  Articulate the competitive values you bring to the table (i.e., technical expertise, knowledge of and access to a niche market, etc.)  Offer a solution to a highly visible business problem  Bring a core competency to the partnership lacking in the other organisation Finding the Perfect Match As part of the alliance-building process, answer these fundamental questions to better understand your current and projected strategic position:  What industry factors (capital, technology, human resources, and natural resources) have the greatest impact on your business today?  What competitive conditions are influencing your suppliers? Your customers?  Are industry newcomers and/or potential substitutes vying for your products and services?
41 CAVENDISH Seek out a partner whose current and potential development resources fit well with your company's own resources. Look for:  Production capacity  Financial resources  Technological expertise  Distribution network  Warehouse facilities  Raw material supplies Other good partner possibilities include suppliers of products, services or specialised technology, particularly suppliers you're currently working with or those you've worked with in the past. Other helpful venues for the partner search include trade shows and conferences; chambers of commerce; trade associations; and industry research institutes that regularly explore the marketplace for new products, technologies and potential partners. Closing the Deal After the partner screening and selection process is complete, the real work of negotiation begins. But while the alliance must be endorsed and supported at both organisations' highest levels, neither company's CEO should be included in actual negotiations. This preserves the option by which the CEO can serve as a "court of appeals" in case of a serious snag in discussions. Also, it eliminates the possibility of loss of face by either side. Also, lawyers should not be present during the first round of negotiations. The spirit and intent of the alliance guides the process. The legal nature of the relationship needs to be more of a safety net. Getting each partner's expectations in written form is an important part of alliance negotiations. These expectations can grow out of in-depth discussion on the following:  Mutual levels of commitment  Organizational structures that fit alliance strategy  Clearly defined alliance benchmarks  Investment and compensation rewards tied to performance measures  A formula for tracking assets and capabilities A non-binding letter of intent is the minimum to expect from early rounds of negotiations. This helps isolate elements that potential partners find unacceptable. On the positive side, it helps seal a commitment on both sides to complete a mutually satisfactory agreement by a specified date.
42 CAVENDISH From Competition to Collaboration Broad-based best practices for alliance implementation and integration include:  Designing a structure that meets the needs of the alliance, not the needs of the individual partners  Appointing high-performing managers to implement the alliance and linking results to pay and investment incentives  Connecting strategic objectives to budgets and resources, with a built-in review process  Defining exit obligations, divorce procedures and penalties. The alliance structure should be agreed upon beforehand, rather than when the time comes to implement. The principals must agree on a shared working vision. Identify key areas of cooperation, and then assign respective team members to draft areas of agreement. As partners advance through alliance implementation, these practices can be used as guidelines:  Appoint an "alliance manager" whose role and responsibilities are defined by specific alliance goals.  Organise timetables, design measurement tools and conduct periodic reviews.  Track how competitors respond to the alliance.  Use open communication to resolve issues rather than turning only to the original alliance agreement for guidance. Governance isn't easy, nor can it be standardised. When it comes to overseeing the alliance, companies must be flexible and innovative. Effective governance incorporates a custom-designed system and set of measurements that are consistent with the alliance's founding vision. Partnering for Success Well-positioned "alliance champions" are crucial to success. An alliance champion believes deeply in the enterprise and focuses on its acceptance and implementation. Champions who can be senior executives, members of the negotiating team, etc, are the ones who steer the alliance through the bureaucracies of the parent corporations. They have the credibility to defend its merits and actions. By extension, teamwork is the backbone of an effective alliance. Whether through steering committees, operating teams or a group of task forces, partner teamwork depends on cross- functional "fertilization" generated by star performers from both organisations. Creating an Alliance Culture Prospering alliances encourage a high degree of cultural adaptability in their ranks. For the right "fit" to evolve, corporate cultures on both sides have to find common ground and nurture a spirit of collaborative activity. Getting to know your partner involves learning about their internal workings and seeing how they respond to external events. Of course, the reverse also is true: during the "getting to know you" phase, your own internal and external operations will come under similar friendly scrutiny.
43 CAVENDISH Most important, is trust. Partners in an alliance remain separate entities guided by their own interests; but they must agree to coordinate their actions and willingly participate in joint decision making. They have to learn to not engage in traditionally opportunistic behaviour, seeking short-term advantage for themselves alone. Instead, they should do everything possible to maintain an alliance relationship that yields long-term results. To build trust between partners:  Start with small, simple operations that enable each partner to experience the other's reliability.  Be clear about what information can be disclosed and what cannot.  Look at your own behaviour from the other's point of view. Get your partner's feedback on your own strengths and weaknesses, and on how to improve the relationship. Beware of "large company vs. small company" minefields. Frequently, the cultures of dissimilarly sized companies can generate conflicts and misunderstanding. To avoid this pitfall, I advise the following:  Share all relevant information and minimise conflicting objectives.  Agree on a shared vision, common goals and partnering strategy.  Agree on key performance indicators and jointly measure performance.  Assign a partnering/alliance manager and clarify the role.  Involve and inform those who have to make the alliance work at the operational level.  Gain and maintain executive level support. What Gets Measured, Gets Done For the alliance to succeed, partner companies must design concrete measures of governance effectiveness. But because each alliance is a unique entity, this performance should be measured against specific, customised standards. Useful performance measures include:  Revenue share  Return on investment  Contribution to fixed costs  Return on sales  Level of market penetration  Speedy response to customer needs  Cost savings  Improved access to markets
44 CAVENDISH Other "soft" indicators are customer satisfaction and loyalty, continuous improvement and referred business are equally important. They are sometimes the most accurate gauge of alliance effectiveness. Business Strategy for World-Class Organisations Partnering is a logical response to the globalisation of markets, increasingly intense competition, the need for faster innovation and the growing complexity of technology. It makes good business sense to connect people, departments, companies, customers and suppliers. When negotiated, implemented and monitored correctly, a thriving strategic alliance meets each member's objectives by offering the scale, skills and positioning needed to succeed in a global marketplace. "Let us not be content to wait and see what will happen, but give us the determination to make the right things happen." Peter Marshall
45 CAVENDISH The Forms (Document) Industry Past, Present and Future OVERVIEW Colin Thompson takes a hard look at the structure of the UK Business Forms Industry over the last 38 years and what I believe will happen in the next 10 years which will change dramatically, due to technology, the environment and business practices. The Business Forms Industry in the UK Since the early part of the 1970`s the industry was controlled mainly by Direct Sell Manufacturers which accounted for 99% of the market place. By 1975 the industry was controlled by a group of 40 companies, who together accounted for 90% of the market place and 10% by Forms Brokers. By the latter part of the 1970`s with the invention of the Personal Computer by Stephen Job of the Apple Corporation hit our shores, the Business Forms Industry has progressed rapidly. Since 1980 due the Personal Computer being made available this has meant more companies had been able to computerise their businesses and also the large corporations with their main frames had been able to add PC`s which increased the use of forms. Through the 1980`s we have seen a change in the market place whereby the Direct Sell Manufacturers controlled some 75% of the market place between 1980 to 1985 and by 2005 the split of 40% Direct Sell Manufacturers and 60% Forms Distributors (Print Management Service Organisations). In the middle of the 1980`s there was an abundant number of Distributors entering the industry, most of these being ex-Sales personnel of large Direct Sell Manufacturers and some of the larger Distributors (Brokers), and in May 1988 when the interest rates were at 7.5%, high investment took place in new machinery. Unfortunately, by May 1989, the interest rates had doubled to 15%, which was the start of the decline in the Business Forms Industry from the Manufacturers/Distributors point of view. Also, coupled with a recession, there was the situation where there was an over capacity of machinery, too many Distributors (Brokers), a depressed gross margin and a far more educated buyer which caused the industry at this point in time to be in the worst position. Through the 1990`s, the rapid changes in the market conditions are attributable to technology, not the least of which is the phenomenal growth of the Micro Computer and Colour Laser market. Tied to these systems is the explosive growth in the use of Electronic Messaging and the Electronic Exchange of business transactions, which include Electronic Forms (Documents). Computer related technologies have also created a trend of A4 Cut Sheet products, which are projected to grow at a compound annual rate of 25%. Direct Sell Manufacturers/Trade Manufacturers had recognised these trends and have adjusted equipment, procedures, and business relations to ensure profitable (for some), timely fulfilment of the A4 Cut Sheet and small orders for the PC market. Maturing Industry In the introductory stage of an industry (1970), Direct Sell Manufacturers played a strong role in the growth and early maturity stages. The Distributor assumes product distribution for the Trade Manufacturer with little interference. However, from the mature stage of an industry life cycle onwards, channel conflicts arise, new channels appear severe price competition occurs and margins erode.
46 CAVENDISH At the end of 1989 and through the 1990`s into the 21 st century the course of action was for the Trade Manufacturers and Distributors (Brokers) to work more closely together, and make investments in each other. This to develop a new business philosophy of customer orientated services and to build the strength of the marketing bridge from the end user to the Distributor (Broker) and on through to the Trade Manufacturers. The Direct Sell Manufacturers were making heavy losses and most have been sold to other companies, who are large groups, who offer a Print Management Service not dissimilar to the Distributors (Brokers). The trend of large Direct Sell Manufacturers has been to sell or close down. Also, the one’s that survive that service have extended their distribution arm using Trade Manufacturers for some of their product lines. Therefore, the trend as I see it for the future will be the Trade Manufacturers/Distributors and Direct Sell Manufacturers partnering their ideas to further the industry in to the 21st century to survive. The Growth of Laser Printing The high speed Laser Printer for day to day output has grown dramatically, and a significant growth in installations has come from XEROX, OCE`, IBM machines which use A4 Cut Sheet plus A3 Continuous. The main danger of the A4 Cut Sheet from the supplier point of view is that it can be supplied plain, quite adequately by Paper Merchants selling direct to the end user of all the high speed lasers and digital in place, I believe some 85% of these are sheet fed. The biggest threat to the Business Forms Manufacturers is Colour Lasers, bearing in mind that their price is reducing considerably, coupled with the pricing structure of personal computers, the price of lasers and personal computers are affordable by most domestic households. Therefore, like the car phone, or let me say, the mobile phone today, PC`s and Lasers have become common place, plus the Internet and the www. not only in business but also in the home. From February 2000, using digital Television, all will all be able to use the Internet, have their our own website, and also send and pay bills electronically on using standard electronic forms. Changes in Competition Dissolve Old Boundaries Today’s landscape would be almost unrecognisable for many industry pioneers. The traditional boundaries are disappearing rapidly in the Forms (Document) Management industry. Gone are the days when companies could be neatly categorised as Distributors or Manufacturers, when the competition could be pinpointed as either a major Direct Selling Company (a GROUP of Specialist Companies) or another Independent Forms company selling solutions know as a Print (Document) Management Service, when the enemy was simply the enemy and not a potential partner. Competition has expanded to include Commercial Printers, Service Bureau’s, Mail Houses, Machinery Manufacturers and other companies that were foreigners to the `Business Forms ` Industry. The quest to consolidate the industry is being led by very large corporations in the UK and overseas. Adapting to this challenging and changing environment, companies are tossing aside many former taboos. Companies are buying from and selling to the Direct Manufacturers and visa versa, aggressively seeking partnerships with competitors and looking for alliances with companies on the industry periphery. More Distributors are asking Trade/and Direct Manufacturers to take active roles with end user accounts instead of hovering in the backgrounds as invisible partner’s hover. Is there a pure Distributor or Trade Manufacturer or Direct Sell Manufacturer? I am sure it makes no difference, it is all about survival. I believe despite the challenges posted by consolidation, new competition, technology and increased customer demands, don’t sense a doom-and-gloom mentality from many industry peers. We must uncover new opportunities for success. You do not obtain business with just technology; you do business with people. In the digital age, the human involvement is even more important, only those who truly understand and anticipate customer requirements will prosper. The fuel for expansion is growth of Print on Demand, Distribution and Print, and Variable Data Printing and the ability to design attractive Documents. The key to success is the realisation that technology does equate with success. Therefore, Document Management (Solution Marketing) is the key to strengthen the market. Partnerships and alliances give extra clout!
47 CAVENDISH Effective partnering in the Business Forms (Documents) Industry The partnering of innovating new design and product starts from the Document Management Service Company’s as well as the Manufacturer Direct and Trade to the client. There must be more partnering of ideas and arrangements so that `ALL` partners concerned make a profit margin. They desire to invest in the company for the future expansion and future new services. It takes time to build a good foundation for a partnership that works because effective partnering arrangements must be earned not merely declared. In addition to the maturity of the Business Forms (Document) market, several technologies and online order entry with viewing of forms (documents) libraries are merging or interfacing with each other to augment the success of those who employ them. As applications for those technologies continue to grow, the procedures required to implement these automated information systems will demand close working ties to business partners. The day is here, when major clients will require Distributors (Document Management Service Company) to either come on line with their system or inform them they need to implement technology to communicate with their ordering system. A sophisticated computer system to all customers and suppliers of all products and services. This is the way forward for success. Environment Papers Of all the articles we have seen over a period of time, also the activity of Paper Mills, the paper industry world-wide is engaging long term efforts to ensure that manufacturing processes are not harmful to the environment. The main concerns here are in terms of effluent control, energy conservation, and recycling and ozone layer protection. Technology-The Trends in Hardware and Software As expected, the price of computers especially PC`s have become extremely attractive resulting in a growing number of first time users, there is the predication that by the year 2010 in the UK, there will be 60 Million PC`s in operation, and if we look at the trend since 1984 (1 million PC`s) to the year 2000 that is a 1900% increase. I believe that the figure is staggering, but the future will be only one screen for `ALL` PC + TV = ONE! (Digital). When it comes to the use of Printers (colour Digital/Lasers) in the office and home in association with computers, we expect to see a dramatic decline in the number used with large scale computers, but a dramatic increase in use associated with small systems and personal computers. In fact, I believe the changes in office printer population will be even higher than the increase in PC`s and that is based mainly on end user estimates of future requirements. Business and marketing implications for Forms (Documents) producers Comparing the financial results of companies over the last ten years, it appears that to be successful in the Business Forms (Document) industry today, one needs to be offering a Document (Print) (Forms) Management Service as a specialist to be successful. To survive in this business market place, you have to be strong financially and also use marketing techniques and the partnering of ideas between Trade and Direct Sell Manufacturers and Document Management Service Specialists marketing Solutions to the customer. Unfortunately, the margins that were available some 10 to 15 years ago will never arrive again, coupled with the fact that Business Forms (Documents) buyers from the end user point of view are more educated and therefore more cute on buying competitively. Therefore, until there is shrinkage in the number of Business Forms/Document Manufacturers and Distributors there will be continual erosion of the margin. The future is the consolidation of the industry. To be successful, you listen to the client’s strategy and then advise them with the solution to be successful; this will be by communication and unifying a Documentation Blueprint. To focus on the documents and electronic information that customers and staff need to conduct their business. The simplified communications that are developed to make business documents easier to understand and use. They also act as a catalyst for organisation and technology changes that result in significant cost efficiencies. Use the Internet to provide real-time access to status of jobs, what inventory is in stock plus all information that the end user requires.
48 CAVENDISH This type of information WINS new clients and KEEPS your present customers. Also, develop an interactive website to market your capabilities and inform all your customers on news items and visa versa. Communication is the key for the future, either by person and technology changes. There is a daily infusion of new technology, new competition, new ideas and new solutions. The opportunity is to play an active part in the changes for the future. But, always communicate personally with your customer, on advising them on new technology, new designs, new ideas and ways of reducing the cost burden of operating their business without reducing quality standards. Do not be scared of change; make your business more exciting with your customer. "It is literally true that you can succeed best and quickest by helping others to succeed" Napoleon Hill
49 CAVENDISH `The Content Management System` Industry Must Control Its Cost to increase the `bottom-line`. The pressure is on to stay successful, so read on and see how! Wake up to, today’s economic downturn cuts deeper into `Information Technology` budgets, CIO’s often have to justify investment initiatives like a `Content Management System`. While it may be somewhat challenging to put a price on information architecture, having the ability to quickly publish multilingual content, or being able to rapidly and accurately keep your web properties on an up-to-date level are important tangibles that contribute to a `return on investment`. It has also been proven in studies that once returns or gains are seen from the use of a CMS that shareholder value can be greatly increased. Companies and organisations today should be spending 75% of their content-related budgets on content management, and 25% on content creation. Unfortunately however, the opposite is usually the case. Content contributors often experience numerous time-drains such as: writing HTML, converting to ASP or XML, changing out images, talking to the Web shop, and generally making sure everything works. Far too much money is lost this way. Their time would spend vastly better if a `talented staff` could spend their time working on developing content and marketing to their audience. Automating tasks and separating data from display can create efficiency. Having speedy approvals, eliminating technologists or IT staff from the site update process, creating content only once and publishing many times, are all immensely measurable cost-savers. According to research conducted by the UK firm Dynamic Markets, 40% of companies would require one person for up to three months full-time to structurally alter a single web site. Another 40% were unsure about the scale of the task that is required to develop the site content and keep it consistent. At least 20% suggested the assignment would be anything between four month’s work and a full-time job. Ironically only 21% of companies automated their web site changes or implemented various technologies to replicate corporate changes at a local level. Having a comprehensive, web-based customer support system will often result in rapid and tangible changes. With many companies paying in excess of £8/call and £6/e-mail, serving just 10 customers a day via the web site—rather than engaging a support person, live—can cover much of the cost of implementing a system. One can multiply these savings for multi-lingual call centres. There are also situations that arise in which a CMS will provide huge savings. For example, collecting on an insurance policy. Even if such an event should occur but once during a systems lifetime, once is enough. What if your company was to confront a lawsuit, and you need to rapidly re-construct what your web sites said on a given day? A strong CMS will cover your liability. Another possibility that now concerns many companies is disaster recovery. In the post-9/11 era, the expensive question becomes can you re-publish your web site (s) to another server in a matter of moments, or will it take a while? Once again, a strong CMS will make sure this happens. In order to calculate the savings and projected costs of implementing a CMS, a company must first add up the hard currency they will see in:  · Increased sales  · Accelerated time to market  · Process efficiencies  · Reduced web production costs  · Reduced human errors
50 CAVENDISH A simple mathematical equation can calculate a `Return on Investment` for implementing a Content Management System. Return on Investment (ROI) = (costs saved from system use) – (cost of installing a system + cost of maintaining a system). Divide by time, to get the time to ROI. For example, if an organisation can save £10,000/month from using a system and the system costs £40,000 to install and train staff, and £4,000 a month to manage and support, a one-year calculation looks like this: (£10,000 x 12) – (£40,000) + (£4,000 x 12) = £32,000 returned from investment in one year. To calculate speed of return (in other words, "how long does it take this system to pay for itself?"), calculate the percentage of the year required to "pay off the system" and multiply it by 12 months. In this case: (£88,000/£120,000) x 12 months = 8.8 months, until the system paid for itself What if this company selected a mid-range solution with higher implementation costs (say, £180,000 for software and licensing)? The system will still pay for itself financially in about two years. The truth of the matter is simple—the `Return on Investment` will easily justify implementing a `Content Management System`. ROI is measured in actual, hard currency, tangible, calculable cost and time saving for a business or organisation. When presented with these factors, a CMS is not only feasible, it is advisable. Other examples of `Return on Investment` COST SAVINGS PROJECTIONS Use the table below to calculate your projected savings: Total Projected Savings £1,600,000 Computational Line Items Values & Parameters Notes & Comments Number of Employees. 1,000 Enter number of employees at your facility. Average number of filing (in inches) maintained by each employee. 125 Total number (in inches) of files to be considered. 125,000 Average number of documents (in inches) filed per cabinet. 100 Total number of cabinets required storing all files. 1,250
51 CAVENDISHSquare feet per cabinet. 10 Total square feet required storing all files. 12,500 Estimated reduction percent. 80% Low - 33% , High - 80% Number of cabinets eliminated. 1,000 Number of square feet eliminated. 10,000 Pounds cost per square foot. £25 Cost Savings (of saved space) £250,000 Cabinets maintained per person 25 Reduction in Staff (for eliminated cabinets) 40 Salary per person £30,000 Salary Savings £1,200,000 Total Cartons Maintained 100,000 Enter number of cartons archived at your facility. Percent Reduction 50% Reduced cartons 50,000 Storage Costs per year per carton £3 Reduced cartons savings £150,000 Cost Justification For one to calculate cost savings on a document and records management project, it is important to look at both hard and soft savings. To simply view one without the other causes a one-sided justification, thereby prohibiting a total overview of the whole savings strategy. Identifying the objective, that senior management expects, will be the guideline in determining how to best present benefits and savings. Identify all areas having potential benefits and demonstrate those benefits. This is what should formulate a Mission Statement. In basic problem solving, however, all the aspects of the problem need a broadened view. One of the tasks involved then would be to include an evaluation of the risks involved in addressing only partial elements of the problem. To do this, know what to look for in developing the business case. Some content elements to look for are:
52 CAVENDISH  Locating and sharing files  Tracking  Storage  Productivity  Disaster Recovery Planning Some productivity elements to look for are:  A means to classify by subject (how everyone looks for information)  Controlling all media seamlessly  Integrating various systems and office suites  Ability to view documents easily  Ease of launching applications There are certain aspects that need to be identified. These include:  The business process  Scope  Tactical vs. strategic timing Some of the typical challenges preparing the business case are:  Controlling document creation and maintenance  Grouping like documents together  User training Do not miss identifying document redundancies, identifying the types of documents on different media, and locating vital records. These all have potential benefits that, when the solution is calculated, should show potential cost savings. The hard savings calculations would include:  Reducing cost of equipment, such as filing cabinets  Reducing cost of supplies, such as paper by reducing paper files printed and stored  Reducing cost of labour to service the filing of paper in cabinets, and in the search and retrieval of information Soft savings calculations would consist of:  Floor space saved by the reduction of file cabinets needed to store documents  Time saved by reduction of filing information  Productivity increased with an effective storage and retrieval system that contains an efficient search technology The risk in not having a records management system that controls records in accordance with legal compliance is an information liability and will manifest itself if there is a litigation or audit. Therefore, complete retention policy management is also a savings benefit.
53 CAVENDISH Even though reducing operating costs and improving access to records are the expected benefits; one must show substantial, additional benefits by exhibiting the whole picture. In this way, management can digest the fact that there are only two costs involved: The cost of preventing risk and the cost of experiencing the risk. A Print Management Service Programme operates on behalf of their customer the best system to reduce direct and indirect costs at all times. A excellent publication is `Print/Forms Management Guide` plus many more from www.cavendish-mr.org.uk Also, the specialist association for Print/Document Management organisations is the Independent Print Industries Association www.ipia.org.uk and the Institute of Paper, Printing and Publishing www.ip3.org.uk, Consultants Division will help you in reducing operating costs and improving your efficiency to raise the `bottom- line`. Also, a comprehensive and powerful business model has been created specifically for Industry` by experienced and skilled people called the `Enterprise Business Model`. This model will bring `saving` on day one and will share with you many ways to increase the `bottom-line`. A most powerful investment that pays for itself from the savings you make immediately it is implemented in your organisation. Comprehensive details from www.cavendish-mr.org.uk The model, correctly applied will provide the opportunity to increase the `bottom-line` performance on existing levels of sales. It is equally applicable to all sizes of companies (owner managed businesses to large group companies) no matter what location, range of products produced or the process employed. This powerful model will address information collection and analyse the key areas of strategy, production, finance and sales – all based on the principles of `Business Excellence`. Once having gained and analysed the information the model then provides detailed guidance on how to manage the necessary change management processes to ensure successful implementation. "The most expensive document is the document that is not where it is needed at the time it is needed. Delayed paperwork, lack of current information, makeshift records, frayed tempers - all add up to unnecessary costs and operational foul-ups." Frank M. Knox
54 CAVENDISH Leading Change to Today’s Organisation Guidelines for Success What do we actually mean by “change”? The word has become commonplace in organisational language, but it means different things to different people, and depends hugely on the perception of the person in question. To someone who has never been involved in change, a minor shift in work pattern may seem like the end of the world; but to an experienced and enlightened change champion, even large changes can seem like routine events. In change situations, perception and attitude are everything. It is critical to address the so-called “soft issues”, as they are really the hard issues when it comes to successful change. The biggest single part of this is involvement – taking the time and effort to discuss why change may be needed, the overall environment and strategic position that is driving such change, and to give people the opportunity to discuss and share their views. To a large degree, preparation is everything in change situations; there is no substitute for developing and maintaining an environment and approach that will enable change to take place effectively. That means people involvement, effective and consistent communication and taking the time to explain the situation – even if not everyone likes the changes being proposed. As a starting point 3 questions have to be answered that underpin the change process: 1) Where are we now? 2) Where do we want to be? 3) How are we going to get there? Answering these questions provides the basic scope that lays out the case for change, the benefits to be gained and a basic risk assessment that addresses the major unknowns. An assessment of stakeholder perception is critical. This process defines all the stakeholders in the change process, and establishes their position and attitude with regard to the potential change. Without this there is no effective starting point to assess how significant the change is perceived – you may think one thing, but others may feel very differently! This guide uses a simple 6-step process for effective change: 1) Establish a clear direction – a compelling case for change, involving employees in the discussion 2) Create clear ownership and leadership 3) Communicate the case for change and progress early and often 4) Create and maintain a workable change plan 5) Empower broad-based action - maintain and measure progress 6) Anchor new approaches Effective leadership is critical during change, at every one of the 6 stages listed above. Leadership during change cannot be overstated – it is pivotal to success. But this means much more than “leading from the front” – it means personal involvement and engagement with the “soft issues”, involving people at each stage both to discuss changes and to get feedback about not only how people feel but also how to improve the overall chance of success.
55 CAVENDISH The very best change programmes will strike the right balance between quality leadership (employees look to leaders for guidance during change situations) and employee involvement. This is sometimes stated as leaders setting the framework for change (“top down”) with employees helping to establish both workable detail and effective implementation (“bottom up”). Why does change so often fail to capture the intended results?  Lack of a compelling case – often far too little effort is put into developing the “case for change”, particularly the effective involvement of employees  Failing to understand what change really is – far too often change is still seen as a “single event”, effectively moving from one steady state condition to another. But this is rarely the reality today; change is nearly always a journey, and it can take several iterations to get to the right structure / alignment  Failing to engage with employees – although the vision and case for change are normally developed by senior managers, involvement of employees or groups of employees is vital to effective implementation and also solutions that will actually work! An effective balance between “top-down” and “bottom-up” is critical  Ineffective implementation – so often implementation is seen, erroneously, as the “easy part”. However in reality it is the most difficult part to get right. The real test of implementation is how robust the organisation is to deal with the challenges and to re- adjust as necessary – flexibility is critical Introduction This successful guide has been developed to meet the specific needs of change in organisations, particularly with regard to consistent guidance around leading and managing change. It is not a comprehensive review of the subject, and nor does it aim to compete with the many good books written on the subject. Experience and skills are used to share with you. It is a reference guide that can help build understanding with regard to the many complex issues involved. It is a working document, built for regular use - a day-to-day road map. We need to start with a basic understanding - what does change actually mean in an institutional context? The word “change” has become commonly used in recent years, but the first challenge is that it means different things to different people, and depends hugely on the perception of the person in question. In some instances it is used to signify a single event, a move from one state to a new state, and is conducted with relative ease and minimal disruption. But more commonly it is used to mean a major shift in the organisation affecting both people and processes, and taking weeks or months to complete. This brings us to the first key point – balancing the significance of the change and its potential impact with the way it is perceived by the people involved. How people see change depends entirely on their past experience and degree of flexibility and adaptability. To someone who has never been involved in change, a minor shift in work pattern may seem like the end of the world; but to an experienced and enlightened change champion, even large changes can seem like routine events. In change situations, perception and attitude are everything. We shall see later how important it is to address the so-called “soft issues”, as they are really the hard issues when it comes to successful change.
56 CAVENDISH Equally important is the need to make a distinction between organisational change and running the business effectively. Some business decisions need to be made as a routine part of “running the business” and ensuring sustainability. Such events often need to be dealt with quickly, and employee involvement can follow. (You will get no thanks for letting the business fail because you felt it was necessary to wait 6 months to gather the opinions of every employee!) So what does all this mean for someone leading change? For a start, if you are a manager in any kind of organisation, the likelihood is that you will implement change at some point – and probably quickly. Much recent leading edge writing thinking about the role of leaders tends to agree that leading change is in effect the same thing as leading – i.e. leadership without effective change management skills is becoming ineffective as a core skill. Not only that, but the ability to understand, believe in and role model effective leadership behaviours is crucial. During change situations people will only really believe and buy into what credible leaders tell them – and the reality is that many people in lead positions are not able to do this effectively? Why is this? It is simply because they have not put in the effort to develop their own leadership capability, particularly around key leadership behaviours. The values that an organisation adheres to in support of its mission and vision, and the leadership behaviours that evolve from them simply have to be evident and visible if effective and lasting change is going to take place. Against this backdrop it is hardly surprising that “leading change” has been identified by the RGU Executive Group as a key organisational capability for all managers and one where significant development effort will need to be focused. This guide does not go into detail about the legislative aspects of change – in particular regarding situations where changes in employment status may occur. This information is available from your HR Client Partner. It is critical that, in any change situation, the HR Client Partner is involved as early as possible in the process. Not only does this ensure the most effective advice and collective forward planning, but it also allows early planning for any legislative aspects of potential change situations. Setting the context What do we mean by change? Looking at some dimensions will help:  In the 1990’s, nearly 50% of all UK and USA organisations were restructured  In the 2000 – 2010 decade, it is predicted that:  Working from home will increase 20-fold  30% of all knowledge will become obsolete  Dual career families will make up over 70% of all families What are the main sources of change?  Societal / behavioural – e.g. life-style changes  Technical  Economic So change comes from a variety of sources, and affects us all. People may tend to think of change, as something that only affects them at work, but the reality is very different – just look at the life-style and economic changes that have affected everyone over the past 30 years. Change is here to stay – and it going to affect us all. If we look back rationally at the last 100 years, this should be no surprise of course, but its how we see change at a personal level that really matters, and maybe more importantly how “in control” we feel.
57 CAVENDISH When asked, over 80% of people will generally see change as a good thing, but this drops to 20% or less when it gets personal, and looks like it might in any way adversely affect someone, even if it won’t! In change situations, perception and reality definitely are not the same things! The paradox of change There is a major paradox about change, and it is that the best change programmes are successful because they do things in a way that most people wouldn’t define as “change” at all! In the words of Glenn Tilton, CEO of UAL (United Airlines) “At least 70% of major corporate changes fail to capture the benefits ascribed to them. A big factor is that the soft issues are not understood to truly be the hard issues. Not enough attention is dedicated to the hearts and minds of the people in the organizations” And to quote William Bridges (from Managing Transitions): “It isn’t the changes that do you in, it’s the transition” These two quotes are effectively saying the same thing – change is not really about the structural changes that are made to organisations, but about the way that people are guided and treated during the change process. But this is itself a challenge if the enduring culture within the organisation is not aligned to good people management in the first place! No wonder, then, that it is so often said that effective change is 20% structural change and 80% good people management. Success is not assured A very high percentage (roughly 75%) of change programmes fail to meet their objectives. For quality management initiatives it’s even worse – something like 80% don’t meet initial expectations. This provides a very rich source of information about how not to do it, and there is a growing sense of organisations wanting to learn from best practice in order to minimise the chance of failure. What does best practice and the lessons of so many failures tell us? The key success factors are:  A compelling vision of why change is needed  Effective and consistent communication  Adequate preparation and conditioning  A thorough and lasting implementation process that deals effectively with peoples’ concerns and needs as they adapt to the new situation The rest of this guide is focused on what best practice looks like, and how it can be applied effectively. The human dimension Why do people react to change the way they do? On the face of it, with so much change occurring and having so much impact on so many people, it might be logical to assume that people are generally getting more used to “change as normal”. Unfortunately logic and reality are far apart, as we shall see.
58 CAVENDISH Firstly let’s look at why people tend to shy away from change – often to ignore what to others might seem obvious. Most people, when confronted with a situation that challenges their deeply held inner beliefs, tend to “rationalise away” the new information in order to maintain their existing view of things. This is often stated as “rationalising away” versus “being fully rational”. Technically this is known as “cognitive dissonance reduction, and is a well-documented psychological phenomenon. Even in situations where the need to change is fairly clear and obvious, and may start to affect a persons ability to function effectively, people often still rationalise away the new information. This phenomenon is probably best demonstrated in Spencer Johnson’s excellent book “Who Moved My Cheese”? This is a light-hearted book but with a very significant message for today’s fast-changing world. Fritz Roethlisberger Why do people do this? Psychologist Fritz Roethlisberger developed a theory that each change situation is interpreted by each individual according to their attitude. He developed this into a diagram known as Roethlisberger’s X chart: CHANGE RESPONSE ATTITUDE PERSONAL HISTORY SOCIAL SITUATION In effect our attitude to change and the response we make is heavily influenced by the way we “see” the situation – in effect the “psychological advantage” (or not) within any given situation. Generally speaking the principle factors that cause resistance to change are:  Loss of security or status  Inconvenience  Distrust or uncertainty  Cognitive Dissonance Reduction (as explained above) – in effect rationalising the “new reality” of the situation away and sticking to “firmly held” (but quite possibly seriously flawed and outdated) beliefs Consequently anything we can do to reduce the level of uncertainty and to dispel rumours that have no foundation will help to reduce resistance to change. Kurt Lewin Social psychologist Kurt Lewin likened the process of change as going from one steady state to another. He recognised that change, whenever conducted too quickly and without due regard to the people involved, tends to “shatter the equilibrium” and lead to (almost inevitable) resistance. He proposed an ideal 3-stage process:  Unfreezing old attitudes  Introducing the change  Re-freezing attitudes around the new approach
59 CAVENDISH “Unfreezing” is the process of preparing for change, which may involve:  Greater dialog with employees  Leadership guidance on the reasons for change  A simple, compelling case as to why change is needed  Why the “status quo” is not a satisfactory situation, longer term In essence it is about helping as many people as possible to understand the realities of the situation and the need for change, even if people don’t like the possible implications for them personally. Once the organisation understands the need for change, then the changes can begin – but this does not mean that all resistance ceases. During the period of change people in the organisation will watch key leaders for signals, and also look for information about “what is in it for me”. The key to success is for management to be open, honest, and candid, never attempting to hide bad news. For many managers there is a natural reluctance to be open and honest – often because they fear the reaction of employees. But the overwhelming evidence from case studies is that the situation is much worse when information is withheld, versus releasing information in a timely manner. “Re-freezing” is the process by which the “new way” becomes regular behaviour and practice. However this can never happen by simply telling people to change. The only effective way is leading by example, with supervisors playing their part to create an environment that constantly and openly reinforces the new behaviours and hence the desired change. “I wouldn’t start from here”... One of the more unfortunate realities of management is that when the need for change becomes apparent, the organisation is often not in the best state to accept it. This can be characterised by the statement...”if I was going to change things, ideally I wouldn’t start from here”! This is the real paradox of change; it really isn’t about organisational diagrams and structures. It’s about how people are managed, how well informed they are, and how well they understand and support the longer-term vision and “compelling case for change” within the organisation. But this simply doesn’t happen overnight; it is a process that takes years to do well. The real “breakthrough thinking” around change tends to occur when the so-called soft issues are recognised as the real change issues. In effect this is saying that there are two paths open to anyone conducting change: Path 1 – overly focused on results and short term benefits, and generally failing to recognise the human dimension and team development need Path 2 – focused much more on how the people in the team are going to achieve the results expected, and how they need to be managed and developed to achieve that Many businesses, driven by a desire to meet short-term financial objectives, tend to choose path 1 by default. But overwhelmingly senior leaders are recognising now that path 2 is the only way to ensure sustainable and longer lasting change. An effective change management process So far we have seen that change is much more about people than process, and lasting change has a lot to do with good leadership and people management skills.
60 CAVENDISH So what does an effective change management process look like, and how is it implemented? The following 6-step framework is a good basis to start from for any organisational change programme, regardless of size or impact. The starting point is the recognition that a change programme has to be defined well enough and have outcomes clear enough and valuable enough to make it worthwhile doing at all. (This may seem intuitively obvious, but its one of the main reasons why so many change programmes fail to achieve their expected targets). In effect we have to answer 3 questions that underpin the change process: 1) Where are we now? 2) Where do we want to be? 3) How are we going to get there? Answering these questions will provide the basic scope – a short document that lays out the case for change, the benefits to be gained and a basic risk assessment that addresses the major unknowns. This then provides the starting point for the project management process that is needed as an “umbrella” or overarching process inside which the change process fits. (This book does not go into the details of the project management process, other than where it overlaps directly with the change process. It is assumed that such a multi-stage process for managing projects is available for use). Secondly, an assessment of stakeholder perception is necessary. This process simply defines all the stakeholders in the change process, and establishes what their “position” is with regard to the potential change. This covers how they see it, how they might react, and any alternative positions they may hold. Finally it addresses how positive or otherwise they may be to the overall change agenda. A degree of data collection through focus groups and informal meetings is likely to be needed to establish the true stakeholder positions. Stakeholder analysis is essential at the start of any change. It helps establish the impact and degree of acceptance to it – and this is critical if we are to know how hard we have to work to make the change happen. There is no point in designing a huge change programme for a change that everyone accepts and is more than happy to do anyway! The 6-step process for effective change 1) Establish a clear direction – a compelling case and a sense of urgency 2) Clear ownership and leadership 3) Communicate the case for change early and often 4) Create and maintain a workable change plan 5) Empower broad-based action - maintain and measure progress 6) Anchor new approaches
61 CAVENDISH Step 1: Establish a clear direction – a compelling case and a sense of urgency For any change, no matter how small, it is essential to have a clear and well thought out understanding as to why change is necessary. For some leading edge organisations this can be less of an issue, because they put so much effort into establishing and maintaining a culture of continual change – in effect for them “change” becomes part of the lexicon of everyday work. However for most organisations this is not the case. For them the starting point is about creating:  A clear case for change, approved at the appropriate level  A compelling and reasonable argument, laid out in the form of a directional paper or memo  An understanding of the timescale involved, even if its not fully defined  An understanding of the urgency for change, and the consequences of not changing  The right climate for change – the ground work with stakeholders to create an initial sense of involvement and engagement with the challenge Step 1 cannot be rushed. It is fundamental to effective change, and the dialogue with key stakeholders is critical to shaping a comprehensive and viable approach. Often this step takes place over several weeks or months, and is highly iterative – homing in on the most appropriate approach and ultimately to the compelling case for change. One of the biggest issues to be addressed in step 1 is how to create enough urgency without overly stressing people – in effect ensuring it is taken seriously but at the same time making sure the outline implementation timeframe is reasonable. People have a natural tendency to relegate things they perceive as unnecessary to the bottom of their “to do” list. If this occurs with the key people who are essential for early engagement and buy-in, then nothing will happen. So creating the collective sense of urgency and priority with key stakeholders is critical to getting a good start at all. In some cases, particularly where change is necessary as a prerequisite for effective business continuation, then senior leaders will often have to declare the situation as urgent and high priority with limited discussion and feedback, in order to ensure early action and progress. Step 2: Clear ownership and leadership The next step in the process is to ensure that there is clarity around who is leading the process and who will approve the actions to be taken. For most major changes there will also be a leadership team, reporting to the project manager, that needs to be briefed, fully engaged and have the capacity (i.e. time and priority) to contribute to the process. As well as establishing the management (or governance) process, it is also essential to establish the guiding principles and vision that all stakeholders involved in the change process can buy into. This defines how the team will work together, how they will communicate to other people, and how they will explain the issues to others when appropriate. It is crucial that this is done with a common message and language. People will simply not follow the lead of a team that is perceived to be divided and acting as anything other than good role models to them.
62 CAVENDISH It is also good practice at this stage to identify who the “champions of change” might be. The reality is that it’s the champions, the people who will take a positive approach and use the right constructive and visionary language, who make lasting change happen. There is a critical mass element to this, and a basic “rule” of change is that there needs to be enough change championing occurring appropriate to the magnitude of the change, if such changes are going to be made in a reasonable timeframe. The reality is that having fewer champions translates into a longer change transition period, and this can have a major impact on the ultimate effective change. Finally it is critical that ownership for the change process is with the relevant line managers. Consultants, HR and other support teams can all help managers to develop and implement successful change but line management ownership has to be clear from start to finish. Consequently there is often a strong case for identifying and appointing a Change Coordinator / Facilitator – someone who can work closely with the sponsor and project leader to coordinate and facilitate day-to-day aspects of the change process. This might for instance involve day-to-day project coordination and project team facilitation. The role holder does not own the project, but does work to ensure effective engagement of key stakeholders in getting to effective and timely solutions. At this stage it is also critical to establish how employees will be involved, and to what degree – particularly those in leadership positions. The “RACI” approach can help here. “RACI” stands for:  Responsibility  Accountability  Consult  Inform As we have seen above, establishing who is accountable is key – “where does the buck stop”? There can be no confusion about this. Responsibility can be shared, but the accountable person needs to be clear about WHAT is being delegated to WHOM, and also to ensure that they have the necessary authority and capability to act. Consult and Inform are critical. Basically you should aim and plan to consult with people before decisions are made, and take feedback into account to some degree. However there will also be times when all you need to do is to inform people, typically once a decision has been made. To what degree one needs to consult versus informs (or both) depends on the specific circumstances of the change in question. This is why it is so important to think this through well before starting into a change process. Step 3: Communicate the case for change early and often One of the biggest barriers to effective change is poor communication – or to be more accurate poor perceived communication. An effort may well have been made to communicate, and the leadership team may well have felt they had done a good job at this, but its perception that counts. If the message was poorly understood or misunderstood, particularly where no effort has been made to clarify around concerns, then resistance can be expected, and it might be serious! It is never too early to start the communication process. Section G) below contains a comprehensive guide to effective communication during times of change.
63 CAVENDISH Step 4: Create and maintain a workable change plan So far we have focused mainly on people issues, mainly because those are the ones most likely to cause implementation challenges if not handled correctly. However it is important to build and maintain a project plan for change that includes all the normal project elements – major tasks, deliverables, timeline, who does what, risk assessment, logistical issues, etc. This will also include the more traditional elements of change plans, such as:  Scope, i.e. what is included and what is not  Organisational structure  Roles and responsibilities  Selection, recruitment and / or separation issues  Implementation plans  Progress review methodology It is important that the change process is recognised and planned as a project, and one that includes all aspects of implementation as part of the project. (Typically for instance this might include any necessary training and development – so often forgotten in change programmes). Although a general project planning process might be used, it is important that the project plan has the following key elements included:  Initiate the project (including defining project board, team, manager)  Define alternatives  Select alternative and plan for detailed implementation  Execute the approved plan  Operate and make additional improvements Step 5: Empower broad-based action – maintain and measure progress Once the decision has been made to make the change, then it is critical to “do something” – in effect making it clear that there really will be a change and it will have lasting benefit. Generally speaking there is a “window of opportunity” to do this, because if people see no changes and no action then they start to believe, wrongly, that the change itself (and more worryingly the need for change) has gone away. What is more, people can be keen and creative when involved in the change process, particularly when it has a direct impact on helping shape the outcome. A mechanism needs to be in place to allow for modification of the implementation plan, whilst still monitoring the overall project scope and timeline. Typical actions are:  A clear implementation plan with realistic timescales and milestones  Changing structures and processes  Establishing clear new reporting lines  Focus on new team development and individual development needs  A culture of empowerment, trust and support  Setting up measurement processes – with clear targets  Focus on dealing with problems and potential roadblocks  Role modelling good leadership behaviours
64 CAVENDISH Step 6: Anchor new approaches No matter how effective the introduction of change may be, ultimately the “proof of the pudding” will be how the new culture develops and embeds and how visible this process is. It is all about how effectively the transition is made from the current state to the desired state – particularly embedding the behaviours necessary. This will typically take the form of:  Continual reinforcement of the shared vision  Encouraging and recognising reinforcing behaviours in others  Recognising and taking with us “the best of the past”  Openly recognising people who do well  Celebrating as a team  Embed a team approach with appropriate development and support  Clear linkages between individual objectives and organisational success  Realistic yet challenging goals and objectives  A strong sense of “ we will succeed or fail together” It is crucial to make an early effort to make the “new way the normal way”. It is all too easy to fall into the trap of continuing to work in the same ways as before, and to treat the changes as something that will be done “when we have time”. This in effect makes the change process a “bolt-on” rather than “core”. The language, behaviours and actions that leaders (at all levels) take will shape the overall implementation and determine how effective it is. The key message is to reinforce a “we” culture and avoid “they / them” language. Barriers to effective change So far we have built up a comprehensive picture of what organisational change entails, but we have not looked at the realities of the situation – in effect why so many change initiatives fail to meet their objectives. This section looks at why change so often fails to make the impact expected. The compelling case for change Many change programmes in effect fail right from the outset, because they do not create an adequate sense of direction. Far too little effort is put into “painting the picture” as to why change is necessary, the impact of market forces and what will happen if we changes are not made. Organisations often fail to involve employees enough in the story of how the competitive landscape is changing, and what the medium-long term outlook options might be. In particular, managers need to be exposed to the situation and possible outcomes as early as possible because they carry the responsibility of cascading the case for change to other employees, and doing so in a way that promotes buy-in and team inclusiveness. Developing the case for change is not a simple process, and generally requires months of discussion and re-working to get it to a viable state. Early employee involvement and discussion can be hugely influential in overcoming resistance to change later on.
65 CAVENDISH Not understanding what change is Because the background to change may often be not well understood by employees, then a sense of change as a “single event” may emerge. In effect change then becomes seen as a step change to a new “steady-state” situation. This may have been true 20-30 years ago, but not now. Change is a journey, not a destination, and this applies as much to managers leading change as to employees having to come to terms with the consequence of change. It is also critical to understand how “change as a journey” nearly always brings development opportunities, particularly when working with new systems and in new ways. At a personal level this is often overlooked. Timescales All change requires a clear timescale to work to. Without it there can be no commitment to change, because people simply won’t know when things are going to happen (or in some case if they have happened) and hence know how effective the changes were. Right at the outset there is a need to set some timescale, even if it is an estimate. Why? Because once a compelling case has been communicated, then people naturally will ask when any change is likely to happen. As we shall see later in the section on effective communication, once the process has started and “the meter is running” so to speak, then consistent communication is critical. A key part of this will be to gradually improve the timescale and end-point estimates. There is a second reason why a timescale is so important, and it is that change can be a highly stressful experience for some people. Hence it makes good business sense to go as fast as reasonably practical and in line with effective decision making. Although this might appear to increase the stress levels, in reality it is far worse to “keep people waiting” than to “get on with it”. Ownership confusion In any change situation it is critical to be very clear about roles, particularly with regard to who is responsible. Typically this breaks down into:  Who approves the overall project?  Who owns / manages the change process (if different from above)?  Who is involved in shaping the new organisation? This is a critical first step because the communication process throughout any change requires to be continually managed, and as we have seen already, in many ways is the key to successful implementation. But without a clear understanding of roles there is also likely to be confusion about who owns the whole change and communication process. So often in change programmes consultants (sometimes internal support employees) are used to help develop the case for change and planning stages, and this often helps to develop a better overall understanding of “why we have to change”. However this is not the same as owning the change process. Only the line managers concerned can do that – and only they can be effective at communicating change to employees. Employee involvement In any change situation the compelling case and vision can only be developed by senior management – after all, that is what they are paid to do. However there is a big difference between developing the case and implementing it, and implementation invariably involves a wide number of people at all levels.
66 CAVENDISH In many major change situations managers fail to involve employees in change teams. Why? Because so often senior managers fail to see the importance of having the very people who will have to work in the changed organisation work out the details of how it will actually operate in practice. This so-called “bottom-up” approach not only brings wider involvement and hence greater buy-in, but it also creates far greater opportunity for new and innovative ideas within the framework of the “top- down” strategic vision. Ineffective implementation There are countless stories of change programmes where there was an excellent business case, a good plan, but poor implementation and follow–up, leading to lower than expected results. So often implementation is seen as “the easy part” and sometimes is not even seen as part of the change process! In reality implementation is the hard part – it is where the whole organisation gets involved probably for the first time, and it is where assumptions made during organisational design get tested in practice, and in many cases found to be inadequate. The real test of implementation is how robust the organisation is to deal with the challenges and to re- adjust the organisation and revised processes early enough. Flexibility is everything, and although the overall strategic framework needs to remain in place, many detailed steps may well change during implementation. Although it is difficult to design a generic change implementation checklist, it should contain some essential elements:  A clear understanding of who is organising the implementation process – in effect an implementation coordinator  A fair, equitable and fully transparent selection process  A clear handover plan if roles are changing, including how to deal with unfinished work  A detailed move plan if people are moving location  A detailed communication plan which keeps all staff involved and updated  Clear understanding that, to some degree, everyone’s role changes  Recognising that some changes will be needed and maintaining flexibility  Early alignment of the senior management team around a set of team behaviours and an agreement to role model such behaviours  Regular team meetings with a standing agenda item around change implementation  A clear understanding (by all) of when “transition” should evolve into “normal running” Why “the way we do things” may not be good enough any more During boom times or periods of relative economic stability, managers can become overly confident of their management capability – in effect believing that results are all down to their abilities. But in many cases the situation is far more complex than this. The general business or political environment may be playing a huge part in the overall success, and when something happens to challenge this (such as a major economic shift) it can be doubly hard for managers to realise they have to change. In some organisations it is only when this happens that they realise that their management capability was rather less well developed than they thought!
67 CAVENDISH Failing to celebrate success Knowing when to stop and declare victory is important because it is a key part of establishing the new culture as “normal running”. In effect this is moving out of “change transition” and into “continuous improvement”, and a judgement call is needed to establish when to do this. A change checklist The following checklist for change is adapted from “Human Resource Champions” by Dave Ulrich. It provides an effective benchmark against which to assess progress: Key Success Factors for Change Questions to Assess and Accomplish the Key Success Factors for Change Leading change (who is responsible) Do we have a leader? *Who owns and champions the change? *Who publicly commits to making it happen? *Who will acquire the resources necessary to sustain it? *Who will put in the personal time and attention needed to follow through? Creating a shared need (why do it) Do employees? *See the reason for the change? *Understand why the change is important? *Understand what will happen if we don’t change? *See how it will help them and/or the university in the short and long-term? *How do we know that employees see the reasons for change? What feedback and checking has been done? Shaping a vision (what will it look like when we are done) Do employees? *See the outcomes of the change in behavioural terms? (that is, in terms of what they will do differently as a result of the change)? * Get excited about the results of accomplishing the change? *Understand how the change will benefit customers and other stakeholders? *How do we know that employees see and share a common vision? How has this been checked? Mobilising commitment (who else needs to be involved) Do the sponsors of the change? *Recognise who else needs to be committed to the change to make it happen? * Know how to build a coalition of support for the change? *Have the ability to enlist support of key individuals in the organisation? * Have the ability to build a responsibility matrix to make the change happen? *How do they know that the people who need to be committed to change actually are?
68 CAVENDISH Modifying systems and structures (how will it be institutionalised) Do the sponsors of the change? . . . * Understand how to link the change to other systems, for example, staffing, training, structure, communication, and so on? * Recognise the implications of change on systems? *Recognise the criticality of “taking the best of the past forward with us”? Monitoring progress (how will it be measured) Do the sponsors of the change? . . . *Have a means of measuring the success of the change? *Plan to benchmark progress on both the results of the change and the process of implementing the change? * Plan to celebrate success at the appropriate time? Making it last (how will it get started and last) Do the sponsors of the change? . . . *Recognise the first steps in getting started? *Have a short- and long-term plan to keep attention focused on the change? *Have a plan to adapting the change over time? *Have a plan to keep employees engaged and listen /react to feedback? As part of the measurement of effective implementation, it is a good idea to review progress against all 7 stages of the checklist on a regular basis, typically every 3 months. A simple qualitative measure of process quality, on a scale of 0 to 100, will suffice. The criticality of effective communication “The greatest problem in communication is the illusion that it has been accomplished” George Bernard Shaw Effective communication is the central factor in managing change. But it is also the main area of change that has traditionally been neglected or poorly handled. The quote from Shaw gives a clear insight into why this is – differing perceptions as to what has actually been achieved. All too often the message delivered does not come across as intended, and what isn’t said tends to speak just as loud if not louder than what is said. One thing is certain when communication is concerned, and that is that communication occurs whether you want it to or not! That is a real dilemma for a change manager, because in effect everything they say and do becomes part of the overall change “jig-saw puzzle” as far as the employee in concerned. Every word, raised eyebrow, nod of the head, smile, raised voice etc provides information, so the key is to know that and manage it as best you can Consistency is critical – what you said a week ago must link into what you say today and what you plan to say next week. Errors and inconsistencies will be seen by employees as a sign of uncertainty and confusion, which invariably gets received as “they are hiding something”, or “they don’t know what they are doing”!
69 CAVENDISH So how can you overcome these challenges and use communication as an effective change tool?  Recognise that everything you say and do is part of the communication process  Use every opportunity (formal and informal) to communicate the “case for change” - it is better to introduce the idea of change through informal discussions, focus groups, updates on the business outlook and wider business environment, etc  Develop a communication plan that includes how and when you will tell people what, and by which medium  Use written (memo, e-mail) media to communicate formal things that you want everyone to see  Use verbal means to set the context and explain why, etc  Be as open as you can and tell the truth – even if this means saying you don’t know yet or can’t say yet  Consistency is everything. People will look at the sequencing of communication for any hints or hidden messages, and read in things that were never intended! It’s critical to maintain a consistent message, and to ensure continuation from one communication to the next  Communicate on a regular basis, even if there is little to say. It is much more important to “keep the regular channels open” than to “only say what you need to say when you need to say it”. Also remember that a gap in communication will always be interpreted as “bad news”  Ensure the right level of urgency is communicated along with the compelling case  Work with the leadership team for the area concerned to ensure a consistent message is conveyed  Focus on the benefits of change and the consequences of not changing  Tune in to different stakeholder groups’ needs and preferences  Seek feedback at every opportunity to encourage involvement Benefits of effective internal communication are:  Good communication processes help people to understand where they fit in the big picture, and how their job and team contributes towards achieving the organisation’s goals  Good leaders are often good communicators - great communication skills and practice helps leaders set direction and maintain morale. They are more credible to their team as a consequence  People have more opportunities to speak up about concerns, as well as ideas and suggestions. A more trusting relationship can be created with colleagues and managers as a result  Since employees are the organisation, if they’re well informed and motivated it stands to reason that the organisation’s internal and external reputation can only benefit
70 CAVENDISH  Change is never easy to deal with, but good communication makes it easier for people. They understand what’s going on, why, and (as far as possible) how it will affect them. It won’t make everyone like change, but people will feel more comfortable, and better able to continue with their job while change happens The diagram below helps explain the various stages and different means of communicating. Employees will progress through the stages - from awareness to understanding to acceptance to commitment - at different paces. It is vital that leaders use the most effective and appropriate communication media to complement what’s required of employees at each stage. The process is not linear, and iteration or recycle is essential to get full understanding. For example if you want to inform employees of a change, which will not require their involvement, (i.e. a change to a process which does not directly concern them, but is important to the organisation) then use a newsletter or bulletin to advise them. Involve Engage Clarify Inform Awareness Understanding Acceptance Commitment Formal Face to face Two way All ways Mass methods One way Achieve strategic goals Informal At the other end of the spectrum, if the change you’re proposing will require them to work in a different way in the future, it is critical to involve them in its design, via workshops, discussion groups or project teams. The role of the leader during change By now it should be apparent that change has much more to do with the so-called “soft” issues and much less to do with hard, structural issues. In effect leadership and change is one and the same thing – change will simply not happen without effective leadership and anything less than good leadership will lead to ineffective change. Very few organisations can afford that – which is why leading change is such a huge issue. One of the challenges is that people generally perceive change to be 80% structure and 20% people issues, whereas in reality it is the other way round – and most organisations only find this out the hard way, by making mistakes and learning from them.
71 CAVENDISH So change is predominantly about:  Good communication  Personal desires  Alternative culture and culture change  Anxiety and loss of control  Hidden agendas To some degree these are all leadership issues. Leaders, at all levels, can do something about these issues and hence make change happen more effectively - but only if they choose to do so. The role of leaders during change cannot be overstated – they play a pivotal role in making change happen. What is more, employees look to leaders for guidance particularly when situations are uncertain and change is likely. In fact employees watch leaders for any signs, whether intended or not, and read into them whatever they feel they need to. Consequently it should be no surprise that the ability to understand, believe in and role model effective leadership behaviours is crucial. During change situations people will only really believe and buy into what credible leaders tell them – and the reality is that many people in lead positions are not able to do this effectively. Why is this? It is simply because they have not put in the effort to develop their own leadership capability, particularly around key leadership behaviours. The values that the organisation adheres to in support of its mission and vision, and the leadership behaviours that evolve from them simply have to be evident and visible if effective and lasting change is going to take place. What are the leadership behaviours most relevant to change situations?  Understands the wider context and can explain them effectively  Communicates a clear vision with commitment and passion  Brings ideas to life for others, seeking to engage and gain buy-in  Listens to others, shows interest in other perspectives  Encourages contributions and shows appreciation  Treats people with respect, recognising achievements  Able to persuade without resort to authority  Sets and adheres to high standards  Takes ownership of issues, ensuring resolution  Encourages individual development, instilling self-belief in people  Gives constructive feedback  Build high performing teams  A highly effective communication style that promotes team working The danger under these circumstances is that leaders do less, not more, because of the concern that they may do something wrong, or get caught up in a debate they are not prepared for. But the reality of the situation is that if they do this they make the situation worse – a classic “catch 22” situation!
72 CAVENDISH So what should leaders do to help make change more effective?  Recognise that you are a role model, whether you like it or not!  Be visible, and listen to concerns - encourage constructive debate and feedback  Even if you don’t “buy-in” fully to what is happening, you still have a responsibility to help employees through the process in a supportive, positive and constructive way  Be consistent in what you say, and never speculate – if you don’t know or can’t say, then say so  Be empathetic to concerns, and help people understand what is actually happening, not what they think is happening  Ensure that business keeps running smoothly during the change process – keep your “eye on the ball”  Go out of your way to involve people and explain what is happening  Focus on team working and team development needs Everyone, no matter how enthusiastic they may be, will at some point experience the “performance dip” shown in the diagram below. Leaders at all levels need to be aware of this and handle each situation as appropriate. Leaders at all levels need to be aware that people respond differently to the change, and hence a different approach may be needed. For instance “change champions” may only need occasional encouragement and support, but people struggling with the changes are going to need much more time and effort invested to help them come to terms with the “new way”. Above all, leaders need to remember that people can never be “told to change” – this may appear to bring short-term benefit but invariably brings no lasting value, and in many cases leads to a worse situation than existed in the first place. Response to Change Immobilisation Initial Optimism Enthusiasm and Commitment Denial Acceptance Performance Dip There are several stages that people move through during a change process, each requiring a different approach to management and communication. Understanding Individual Responses to Change
73 CAVENDISH Only by guiding people and role modelling the kind of behaviours and culture needed can leaders make change work effectively. Appendix A – A Change Management Roadmap A change management roadmap Clear ownership and leadership Establish clear direction - the case for change Create workable change plan Empower action - maintain and measure progress Anchor new approach Where are we now? Where do we want to be? Gap analysis Stakeholder analysis Why is “status quo” not OK? Options / climate for change? Dialog with Employees Outline change plan Clarity of Ownership: Sponsor? Decisions? Project team? Governance? Communicate guiding vision and principles Capacity (time / priority) of key people? Change champions? Finalise plan: Scope Deliverable Timeline Roles Risk analysis Imp’n plan Review process Impact analysis Development needs “New way” of Working Communicate! Clear imp’n plan and timeline Milestones Remediation plans Establish new reporting lines New team Development Personal dev’t plans Role modelling leadership behaviours Make “new way” the norm – avoid delays Continual reinforcement of “new vision” Role model Supportive behaviours Realistic yet challenging goals Team – “we / us” Celebrate success! Effective communication is critical! Consistent message / Check for Understanding / Open and honest feedback "We all have big chances in our lives that are more or less a second chance" Harrison Ford
74 CAVENDISH For Your Success - More Get Up and Go is Required Turn yourself from an average performer into a Business Superstar. A winning team of winning people is the ambition of many entrepreneurs to be successful in business and personal life. Success Checklist  Have you identified critical success factors vital for success?  Are your colleagues `winners` or losers in the areas that really matter?  Are you reactive or proactive?  Do you know who your superstars are and what they do differently from others to be success?  Do you ensure that resources are not devoted to non-vital activities?  Are people helped to excel at critical success factors for building relationships with customers, employees and suppliers?  Do you learn to take on board new ideas? Become a leader: Follow the four key rules;  Take a good hard look at yourself  Identify differences between where you are and where you want to be  Get Strategic  Thank about the promotions board Become a leader Celebrate the achievements of those working for you, inspire your team with self belief, motivate them to achieve, create move leaders. Fresh thinking requires a vision to see beyond the conventional. When you combine excellent quality with outstanding value for money you will begin to realise the full potential of creative and well presented business solutions. Together, the sky's the limit. Have passion to learn and let the knowledge help you to be successful in life. "By concentrating on making your softer skills more impressive, you are more likely to distinguish yourself from your peers" Colin Thompson
75 CAVENDISH Vision and Mission of Colin Thompson: Vision  Changing Limited People into Limitless People and  Turning Limited Companies into Limitless Companies. Mission  Success is a journey, not a destination…  Our mission is to make you successful in life. email:colin@cavendish-mr.org.uk www.cavendish-mr.org.uk “The biggest discovery of every generation is that humans can change their life by changing their mental attitude!” Albert Schweitzer
76 CAVENDISH USEFUL INFORMATION Publications to help you become more successful: Business models on CD/Software  The Enterprise Business Model  Interpreting Accounts for the Non-Financial Manager  The Valuer- Business Valuation Software  Managing For Customer Care  Be paid on time System  It’s a Digital Future  A Flow Chart of the Partnership Process  How to Become a Successful Franchisee Plus many more publications, research reports, guides and business and educational CD`s. All the above business tools are available by visiting the website: www.cavendish-mr.org.uk "Let us not be content to wait and see what will happen, but give us the determination to make the right things happen." Peter Marshall
77 CAVENDISH Document Management Cost Savings Solutions "The Great end of life is not knowledge but action" Thomas Henry Huxley
78 CAVENDISH Document Management - Cost Savings Solutions By Dr. COLIN THOMPSON Improving the quality of systems is necessary to accelerate with impact organisations in the 21 st century. The competition for customers is getting fierce. Customers want and expect much more from company personnel. This publication will help you to improve your skills in empowering people to deliver quality service excellence of `The Management of Printing and Business Processing that includes all hard and soft documents to raise the `bottom-line`. This publication will help you understand the `Hidden overhead that will be affecting your business and every organisation globally that will impact an increase in the `bottom-line`. Businesses that invest in people and systems will `win`, because they care more than other organisations. Each company should care about its personnel and business systems. The world is about dedication to the people and business models environment, since it is people and business models that make companies work, technology only helps people and the business models carry out their job more efficiently. Becoming the best, so to `accelerate with impact your business growth`, I have set out to fulfil several objectives; * To remind Directors of some of the basic principles that you need to invest in people and business models. * To establish a framework for the detailed review of all aspects of the day-to-day operations of the business, leading to the identification of problem areas and the development of action plans to improve performance and accelerate with impact the company. * To establish guide lines and methods of planning to ensure the long - term growth and prosperity of the company and for the company to stay in business longer because of the quality of its people and business models. The accent throughout is on common sense and simplicity, with an avoidance of management gimmicks and minimum use of jargon. Busines life is about dialogue that we `all` understand and respond to. So make the playing field equal, so all people understand the language used and the action to take, to receive and accept, so business life is successful for `all` involved. Yes, you can achieve all things in life by your attitude to be positive, you have the solution in you, so go forward and use it now and be successful in your business growth. "Only one yardstick could be selected for the measurement of business progress, it might well be the business document; in this day and age every business is erected on a foundation of paper" Edward N. Rausch

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Document Management - Cost Savings Solutions

  • 1. 1 CAVENDISH Document Management Cost Savings Solutions COLIN THOMPSON IGNITING YOUR BUSINESS
  • 2. 2 CAVENDISH Document Management - Cost Savings Solutions By Dr. COLIN THOMPSON Improving the quality of systems is necessary to accelerate with impact organisations in the 21 st century. The competition for customers is getting fierce. Customers want and expect much more from company personnel. This publication will help you to improve your skills in empowering people to deliver quality service excellence of `The Management of Printing and Business Processing that includes all hard and soft documents to raise the `bottom-line`. This publication will help you understand the `Hidden overhead that will be affecting your business and every organisation globally that will impact an increase in the `bottom-line`. Businesses that invest in people and systems will `win`, because they care more than other organisations. Each company should care about its personnel and business systems. The world is about dedication to the people and business models environment, since it is people and business models that make companies work, technology only helps people and the business models carry out their job more efficiently. Becoming the best, so to `accelerate with impact your business growth`, I have set out to fulfil several objectives; * To remind Directors of some of the basic principles that you need to invest in people and business models. * To establish a framework for the detailed review of all aspects of the day-to-day operations of the business, leading to the identification of problem areas and the development of action plans to improve performance and accelerate with impact the company. * To establish guide lines and methods of planning to ensure the long - term growth and prosperity of the company and for the company to stay in business longer because of the quality of its people and business models. The accent throughout is on common sense and simplicity, with an avoidance of management gimmicks and minimum use of jargon. Busines life is about dialogue that we `all` understand and respond to. So make the playing field equal, so all people understand the language used and the action to take, to receive and accept, so business life is successful for `all` involved. Yes, you can achieve all things in life by your attitude to be positive, you have the solution in you, so go forward and use it now and be successful in your business growth. Improving business efficiencies using Document Management with the objective of savings in time and cost. "Only one yardstick could be selected for the measurement of business progress, it might well be the business document; in this day and age every business is erected on a foundation of paper" Edward N. Rausch
  • 3. 3 CAVENDISH Document Management - Cost Savings Solutions BY Dr. COLIN THOMPSON Cavendish Kings Court School Road Hall Green Birmingham B28 8JG UK Telephone: + 44 (0) 121 244 1802 Fax: + 44 (0) 121 733 2902 email: info@cavendish-mr.org.uk Website: www.cavendish-mr.org.uk © Copyright 2008 Colin Thompson First Edition 2008 The material contained in this book is set out in good faith for general guidance and no liability can be accepted for loss or expense incurred as a result of relying in particular circumstances on statements made in the book. The Laws and Regulations are complex and liable to change, and readers should check the current position with the relevant authorities before making personal arrangements. PROVIDING THE SOLUTIONS FOR SUCCESS
  • 4. 4 CAVENDISH Document Management - Cost Savings Solutions Contents PAGE Profile Colin Thompson 5 Executive Summary 7 A Winning Attitude Leads To Success 8 The Managing of Printing and Business Processing 9 An Introduction to Document Management and Control 16 Document Control - Saves Time and Money 20 Simplified Communications 23 Document Management is Vital in Today's Business Operation 26 Print Outsourced - Out Smarted 33 The Partnership Principle 35 Strategic Alliances 39 The Forms/Document Industry 45 The Content Management System 49 Leading Change To Today's Organisation 54 For Your Success - More Get Up and Go is Required 74 "The greatest pleasure in life is doing what people say you cannot do." Walter Bagehot, British author, economist (1826-1877)
  • 5. 5 CAVENDISH PROFILE COLIN THOMPSON Colin Thompson has over 30 years experience as Managing Director. His career to date has given him a complete exposure to business management and management of people. He has wide experience in PLC and private company’s in top level management of increasing sales/profit. Also, turnaround and re-engineering experience linked to new corporate identities and successful mergers/take-overs. Plus, developed many business models to increase profitability and the retention of employees, customers and suppliers. Technical skills/knowledge  Directorships Chairman Managing Director Director-Print Management and Workflow Solutions Director-Operations/Customer Service and Marketing Director-Financial and Administration Non-Executive Director  Professor - European Business School, Cambridge, UK  Chairman - Oxford College of Management Studies  Former Group Chairman of The Academy for Chief Executives  Initiated New Corporate Identities, also Managing Director: Datagraphic Inc. UK, division of USA Group Forms UK plc (now etrinsic plc) division of InnerWorks Inc.USA WH Smith PLC - Print/Distribution and Workflow Solutions Kenrick & Jefferson Group Ltd Mail Solutions Group Ltd, division of SSWH PLC
  • 6. 6 CAVENDISH  Able to successful bring new Products and Services to market i.e. a) Set up new UK `green field` manufacturing/distribution/workflow systems organisations and market new Products and Services. b) Research, development and design of a Print Management Service, including writing a book `Print Management and Workflow Solutions`, plus many other publications and business models. c) Produced CD-ROM `Interpreting Accounts for the Non-Financial Manager`- adapted from my two-day course for Anderson’s-Chartered Accountants for their clients. Plus other business and education models to increase productivity, retention of customers, employees and suppliers that increased net profit and cash flow. My training and knowledge has enabled me to take an overall view of an organisation, its operations and strategy. Also, to understand with a degree of competence in a wide variety of business skills and functions. I have dealt with challenges at a high level of complexity, especially those that cut across the common functional divisions of business. Developed several business models to raise the `bottom-line`. Education: BA, MBA, DBA, CPA, FFA, MCIPD, MCIJ My experiences and knowledge have enabled me to write and have published over 400 articles, several books, guides, research reports, and several CD’s/Software on business and educational models plus speaking at International Conferences and Visiting University Professor. DDL: + 44 (0) 121 244 0306 Mobile: + 44 (0) 7831 588310 Main T: + 44 (0) 121 244 1802 email: colin@cavendish-mr.org.uk Website: www.cavendish-mr.org.uk
  • 7. 7 CAVENDISH Executive Summary There has been considerable talk about business needs over recent years and the approach to the quality of people, systems and business models. We have all heard the saying ` business is simple, but people make it difficult`. The reason for this statement is that businesses, of all sizes, do not put enough time, effort and money into improving the quality of people, systems and business models so they can accelerate with impact the business growth for long term benefits. Improving the quality of people, systems and business models is necessary to take companies through the 21 st century. The competition for customers is fierce. Customers want and expect much more from company employees, the systems and business models implemented. I believe that the contents of this publication will help you to improve your skills in empowering your people to deliver quality and service excellence that will impact an increase on the `bottom-line`. We need a new, positive approach to customer care throughout the business environment. Everything we do must be calculated in terms of whether it helps or hinders your efforts to look after your customers externally and internally. We must get closer to the customer. The customer is `king`, and I hope that the contents of this publication will help you win those customers (externally and internally) who want the best service. The management of all hard and soft documents is so important to improve the way you operate the business more efficiently and effectively to improve the `bottom-line`. Businesses that invest in people, systems and business models will `win`, because they care more than other organisations. Each company should care about its personnel, systems and business models. The whole contents of this publication is dedicated to the people environment and business models, since it is people and business models that make companies work, technology only helps the people carry out their job more efficiently. It is the business and personal goals that produce the rigour and thought that lead to the production of a plan that will improve company and individual performances. Simply put, the goal structure is as shown below: Distinctive Capability - The clutch of skills or competencies that distinguishes the company from the competition and will enable it to seize the opportunities that arise in the future - whatever they may be. Market/Product - The focus of application for the company's skills and competencies. Identify - Communicating a clear, positive perception and image of the company to each of the audiences who are important to its future wellbeing. People - Organising the skills and competencies of the company to meet the needs of the customers both now and in the future. Profit/Performance - Defining the results expected. ! - Customising the strategy to meet the special needs of an organisation and the individual. "It is not the mountain we counter, but ourselves." Sir Edmund Hillary, New Zealand mountaineer and explorer (b.1919)
  • 8. 8 CAVENDISH `A WINNING ATTITUDE LEADS TO SUCCESS` (Every one in the company should have one!) Winners are people that strive to be all they can be, and will go to great lengths to reach there potential. An internal burning desire drives them to be successful. They possess a positive attitude and can focus their energy. They become stimulated by the challenge of creating the future they want and then act to complete the task. You need the `right` people to implement any business model to improve the `bottom-line` of your organisation. Creating a winning attitude comes from first setting clear, concise and attainable goals. The objective of goal setting is to provide a clear sense of direction and to properly plan and organise events and performance. The next step is to establish a positive self-image. We can attain this through a personal vision of successful future accomplishments, acting confident and being proactive. Other steps include monitoring your performance against your targets as this would motivate you to give an extra effort if you are falling short of measured goals. Finally, reminding yourself of your victories will reinforce a positive attitude and maintain a winning state of mind. When results do not materialise as planned, a winning attitude helps to look towards the next time and next opportunity. Attitude is the difference between a non-win and a failure. A person only fails when he or she quits. Trying again means that he or she has learned one way in which they cannot achieve the goals. But striving to be successful takes attitude! Be passionate for success and your disciples will make it happen! This business model of `The Management of Printing and Business Processing` that includes all hard and soft documents to raise the `bottom-line` is a requirement for all organisations to be more successful and have total control of this hidden overhead. "The greatest discovery of any age is that a human being can alter his/her life by altering his/her attitude." William James, US philosopher, psychologist (1842-1910)
  • 9. 9 CAVENDISH The Management of Printing and Business Processing that includes all hard and soft documents to raise the `bottom-line` The Hidden overhead that will be affecting your business and every organisation globally! What is `The Print Management Service Programme`? My definition of a Print Management Service, Documents and Forms are`the systematic process of increasing productivity and minimising errors in information capture, transmission and recovery through the use of work flow analysis and graphic design techniques; providing administration control; reducing procurement, storage, distribution and costs through standardisation; and ensuring the adequacy, business as well as legal, of all records and printed material`. Even with a definition as long as that, explaining Print Management Service, Documents and Forms and is never easy. This is especially true when the term `Documents Management`, `Forms Management` and `Print Management` are constantly used and abused. The concept has often been a way for vendors to sell more printing. Some vendors provide warehousing, distribution and inventory reports, and call this either Documents/Forms/Print Management. But there is not a provision in this method for Print Management/Documents/Forms analysis, improved design and many of the Print/Documents/Forms functions. The `true` Print Management Service programme covers many aspects of business process and the specialist is very knowledgeable about how business models operate to help you achieve maximum return. Other vendors provide design services and some control functions but no warehousing and distribution. Without a close watch on inventories, it is difficult to plan combination orders or reduce the incidence of rush/emergency orders due to depleted stocks. Still, other vendors provide all these services but they are interested in only high volume Print/Documents/Forms. If, the vendor representative is not as concerned about the print/documents/forms that use 1000 copies a year as he/she is about the high volume print/documents/forms, the enormous clerical expense associated with print/documents/forms is not addressed. This is not `true` Print/Documents/Forms Management. So be careful you appoint a specialist with skills/experience and the knowledge of business models to help your business become successful. Briefly stated, Print/Documents/Forms Management is involved with the elimination of paperwork and an improvement in clerical efficiency, both leading to a reduction in company's expenses. If you think print/documents/forms costs are insignificant, think again. "95% of all information is stored on paper, only 1% of information is stored on computer, 4% is stored on microfilm or optical disk (as digital data)!" Over the last 20 years optical disk and digital systems have increased in importance. "66% of all jobs belong to white collar or` knowledge workers`, and this level is predicted to reach 90% by the year 2010. 75% of all salary costs go to office workers. These knowledge workers produce no product but deal with information as their out put. Focus on the process of creating the document and conveying the productive output (information) of the knowledge worker can substantially increase productivity and lower costs". The `true` Print Management Service Programme achieves maximum savings that drop to the `bottom-line`. Managing the print/documents/forms of business, including business print/documents/forms, is one method of affecting the companies `bottom-line`. One of the best ways to ` focus on the process of creating the print/document/form and conveying` it, is through an effective Print/Documents/Forms Management Service Programme. How then does one implement Print/Documents/Forms Management? What are the components of a Print/Documents/Forms Management Service Programme?
  • 10. 10 CAVENDISH For the purpose of this publication we will call the system, `The Print Management Service Programme` as the generic name. This name is used by most of the `specialists` who offer a Print/Documents/ Forms Management Service Programme. This publication will provide some of the basic answers to these questions. In the first part I will address document/form analysis and document/form design; and in the second part I will address document/form control, and warehousing/distribution. Please note a good `Print Management Service Programme` must include all these components. Document/Form Analysis and Design I will define the difference between document/form analysis and document/form design. Document/form analysis is` the systematic execution of those steps necessary to ensure that productivity is increased in preparation, use, buying and retrieval; the total number of documents/forms within the system is minimised; data element relationships are apparent through consistency and adherence to standards; the effectiveness of the entire system as well as the individual document/form is enhanced; and the resulting business tool communicates`. Document/form design is termed as `design analysis` and that in addition to resulting in the design layout, (it) increases productivity by creating a basic business tool which is self instructive, encourages co-operation response, provides for easy entry of data, reduces the potential for error, facilitates the use of the information, and enhances the organisations image. Document/Form Analysis vs Document/Form Design Document/Form analysis resolves what goes on the document/form, while document/form design continues the analysis until it resolves how to best arrange and present the information. Or another way to look at it, document/form analysis determines who, what, when, where, why and how the document/form is used. Document/Form design, on the other hand, decides how the document/form looks and how it is constructed. Good work in analysis and design can speed a document/form programme to its goal of eliminating paperwork and improving clerical efficiency, both leading to a reduction in company's expenses. As a basic tool of clerical operations, thoroughly analysed and well designed documents/forms provide many benefits. They look good, and better-looking documents/forms have more appeal. Well-analysed and designed documents/forms provide for easy entry of data and allow for easier use of the data. They reduce the chance of error when entering or retrieving information. They are self-instructing. It is a good idea to have a `document/form initiation request` to force (persuade) the sponsor to give the document/form and its use some thought. The document/form initiation request gives basic information about the document/form, who initiated it, who authorised it, when it will be used. The request document/form gives the document/form analyst a place to start the analysis and to ask the old journalism questions of who, what, when and where. What is the purpose of the document/form? Question and need of the document/form should always be the first step in document/form analysis. Dr. Ben Graham, an international expert in productivity analysis, relates a key anecdote to illustrate this point. While he was working in Venezuela with a manufacturing company which wanted to streamline its entire operation? After careful analysis of all documents/forms as they related to the workflow, one document/form remained unidentified. Although it was duly completed, routed and filed and it had been for many years, no one really knew why it was being used. It just always had. After much research, it was determined that the document/form had been used during World War Two so that the manufactured goods could be loaded on a ship that was to join a convoy crossing the Atlantic. Remember this was 1973 and the usefulness of this document/form had ceased. Moral of the story always determines the purpose first to see if the document/form is even needed.
  • 11. 11 CAVENDISH Who initiates the document/form? Is it one person or one department within the company or many persons/departments? Is it always the same person? Does it stay in the originating department? Perhaps many people within the company who may not have detailed instructions or policy manuals initiate it. Is it a public use document/form such as a credit card application, hospital admission, or utility application? Who receives the document/form? All the same questions apply for the receivers as the initiators. Does the document/form go outside the company? or if so, are there logo type and graphic standards that must be considered? When is the document/form completed? Daily, weekly, monthly, annually? Where is the document/form used? Is it a clean, well-lighted office? Or perhaps a manufacturing environment full of oils or chemicals? Maybe it is a shipping or receiving area, which is poorly lighted and dusty. Where is the document/form stored? Is it in an office or in a non air-conditioned warehouse? How have the most questions of all. How does the document/form work with other documents/forms? Is their information copied from or to it? Is information from this document/form keyed into a computer system? Is the information sequence correct and are the captions the same? Does it work with bar codes or MICR? How is the document/form completed, by hand or by machine, such as a typewriter, word processor, or computer? How is the document/form distributed? In what sequence are the copies removed? Are the copies legible, are the copies separated manually or is the process mechanised? Do people make copies? Do recipients use their copies? How is the document/form filed? Does it go into a binder or folder? If it needs hole punching. What size and how many holes? Is the document/form the right size for the file? What is the filing reference-serial number? company name, customer name? There are many checklists in the literature from the `true` Print Management Service specialist to help with questions such as these. To restate them, document/form analysis determines how the document/form is used and all its ramifications. Once this is done and the document/form sponsor supplies the document/form content, the next step is document/form design. Document/Form Design Document/Form design makes use of all information gathered about the document/form to arrange the data fields and construct the document/form for best use. First, there are technical components based on international standards or proven research. These are such issues as paper sizes, paperweights, colour, legibility, type sizes and measurements. Second, there are convention and proven practices such as data sequence going from top to bottom, and left to right, typeface selection and design consistency among documents/forms. Third is corporate identity, applying the logotype correctly and using designated type styles. Fourth is the creation design component, there is not just one way to design a document/form. Just because two document/form designs are different, it does not mean that one is better than the other is. Although a requesting department is depending on Print Management design and analysis, it must be remembered that only the document/form sponsor can know whether or not a document/form is needed. Only the sponsor knows when a document/form should be kept in use, only the sponsor knows what information is required on the document/form. The role of Print Management is to ensure that good analysis and design skills have been used during the document/form creation and that it conforms to corporate standards.
  • 12. 12 CAVENDISH Remember document/form analysis and designs are integral parts of a comprehensive Print Management programme. Document/form automation via electronic document/form requires even more thorough analysis prior to design. In addition to all the considerations addressed in this publication concerning conventional documents/forms, a host of other issues come into play when designing an electronic document/form. Just a few of these issues are determining interaction with databases, structure for intelligent or conditional movement through the document/form, and electronic booting. Detailed discussions of these topics however go beyond the scope of this publication. Document/Form Control Considerations In addition to document/form analysis and design, Print Management requires that certain document/form control functions be provided. These are document/ form identification, indexes and files, document/form tests, obsolescence studies and management reports. Document/Form Identification There are two primary ways to identify a document/form, by its title or by its document/form number. There are many different ways to assign document/form numbers, but keep these issues in mind; a document/form number is just an identifier-not a code. The way the Print Management programme works on identification is a master control number in sequential order followed by a family number which is the department; by a function number which is the numbered document/form being used in that department and the date the document/form was initiated for use. After the document/form has been in use, of course, if the document/form is revised for any reason, it must be given a revision date so that the records accordingly can be updated on the revision of any document/form by a revised indicator of date. This must be entered on all data appertaining to this particular document/form. Document/Form numbers and titles are the two most useful ways of identifying a document/form. Generally the number is most useful to the people who control the Print Management programme, while the title is most useful to the document/form users. All documents/forms have titles. A document/form title should be brief but descriptive. It should include a subject such as `cash` or `delivery` or `employer` and an action or function such as `to report` or ` to notify` or `to agree`. It is not necessary to use words such as `for` or `card` in the document/form title. It is also best to place the subject first and the action second. For example, `Employment Application` instead of `Application for Employment`. An alphabetical catalogue will list the subject first and avoid many `requests for`, `notice of`, `application form`, and `listings`. Indexes and Files Once a document/form has a number and a title, it can be entered into a database or word processor system with sorting capability. Creating an index by document/form number, alphabetically by title, and alphabetically by sponsoring department. Remember that users often use a document/form title of function, but not the document/form number. Having an index by title or department can be a lifesaver. There are three types of files for document/form control-the master control, the family control and functional control. The master control file contains everything you need to know about a document/form history, such as the document/form initiation request, proof approvals, specifications and copy of each for revision, production notes and comments, artwork and so forth. Artwork may be filed separately or there may be nothing in the master file but the artwork and current samples and the original request document/form. The other types of files used in the document/form control are the family and function files. Briefly, the goal of the family and functional file is to improve productivity by reducing clerical effort. The family file is an indicator for the department that the document/form is being used and the functional file reveals and brings together all documents/forms doing the same operation within each department. One sample of each document/form is filed by the function it serves, not by the department name or subsidiary name. Print Management specialists always file by master, family and functional records.
  • 13. 13 CAVENDISH The functional file is beneficial because you can spot document/form duplications, overlapping documents/forms and good candidates for document/form consolidations. This is an extremely useful file, but one that know-how to start and considerable time to maintain. Very few companies have functional files and to conduct Print Management right, a functional file is highly recommended. Document/Form Tests Another document/form control function is testing the proposed document/form to see if it works in the real environment. Based on the test results, the design, the layout, wording and so forth can be modified and then re-tested. Document/form testing is especially needed when diverse groups within a company, documents/forms such as cheque requests, purchase, use the document/form requisitions, expense statements. Testing is a must if a document/form is received by (and if it must be interpreted by) the general public. Two good examples are tax documents/forms and telephone bills. Testing is also necessary if the document/form is completed by the public-for example applications for social security or employment. Obsolescence Studies Another document/form control function is the obsolescence study. Departments rarely notify the Print Management group when a document/form is no longer in use. It is up to the Print Management staff to initiate an obsolescence study. Why find out if a document/form is obsolete? In part, cutting out obsolete documents/forms helps cut down the Print Management team's record keeping and file space. Warehousing costs can be reduces by decreasing the number of documents/forms stored and the amount of space used. Finally, if the total number of documents/forms never shows a decrease, management will question what is being done to manage the documents/forms and to keep them under control. How does one perform an obsolescence study? That depends on several factors. How easy is it to review the order history` manual or automated`? That depends on several factors. How much clerical support is available to pull samples, check the order history, and check on replacement sponsors? Are filing and warehousing space at a premium? After the sponsor has returned the enquiries, there is still much work to do. If the document/form is active, find out why it has not been ordered for so long. Are the users photocopying the document/form or have they arranged for printing on their own? If the document/form is cancelled, what is replacing it? If the replacement document/form does not have a document/form number, there is more follow up work to do. When a document/form is cancelled, it must be removed from active to cancelled status and all records purged. For instance, the document/form index, from history file, from artwork file, etc all must be closed down. The artwork and history files are moved to an inactive file or records storage area. Under no circumstances should ordering of paper etc be ordered by any department, it must all be ordered through the Print Management team for full control. The results on all obsolescence studies should be reported to management. Include the number of enquiries sent the responses received the cancellations processed and the square footage free in the warehouse. Other interesting findings should be reported as well. Management Reports A Print Management Service Programme whether in-house or vendor supplied must justify its existence all the time. Management wants pertinent statistics, the number of new, revised, cancelled and reprinted documents/forms as well as total number of documents/forms. To continue justifying being part of the team information on document/form improvement should also be provided.
  • 14. 14 CAVENDISH Document/Form improvement boils down to three goals, fewer documents/forms, better documents/forms and more economical documents/forms. Show management these three issues every time you file a Print Management report. To achieve fewer documents/forms, you must eliminate unused documents/forms, consolidate existing documents/forms, and merge new document/form requests with existing documents/forms, file existing documents/forms to serve new requests without modification. Better documents/forms mean creating more clerically efficient documents/forms-enabling increased worker productivity and reducing human error. Remember, documents/forms are designed differently for completion by hand, machine or by computer. For instance, take into account the need for correct spacing, the carriage returns, and hand entry; make sure strike out boxes are aligned properly, ensure that there is design consistency, and take care to see that file holes are pre-punched so that employees do not have to punch each document/form as it is used. Think ahead and save clerical money! Most economical documents/forms mean they are designed to reduce printing costs as well as storage and distribution costs. To keep costs low, make sure to use standard paper sizes, standard paper colour sequences, and standard ink colours. Do not get caught in the trap of making recommendations to save manufacturing pounds, the clerical processing time will be increased. This is a false saving. Remember that the clerical cost of processing a document/form has been calculated to cost at 20 times the cost of printing a document/form. Excellent savings can be achieved by taking on board the knowledge of the `true` Print Management Service Programme specialists who know how businesses operate in every sector. In other words the people are business model specialists who understand business process. An easy way to report documents/forms improvements to management is to provide a simple list of the document/form numbers and a brief description of the improvements by category `consolidation`, improved clerical efficiency, reduces manufacturing costs`. Include in the value example hard pound savings of each of these improvements as well. The statistical and description reporting should be done on a monthly basis. But there are many other opportunities, such as special projects or displays to let management know what the Print Management programme has done for the organisation recently. Warehousing and Distribution Considerations. There are several options for the Print Management team to determine how to keep the company supplied with documents/forms. One option is to use electronic documents/forms and have no-printed documents/forms. Currently, this is not a viable option for most companies. Another choice is to print documents/forms on demand. This works well for low volume cut sheets or pre-collated carbonless sets. However, it is not cost effective for speciality items such as custom continuous documents/forms, unit sets with special features, tags, labels or special envelopes. As a result, most companies require some sort of storage for the documents/forms which are used in large volumes or which are printed in advance using specialised equipment. Companies can obtain warehousing and distribution fairly easily. A manual in-house operated stock room or automated warehouses are possible choices. Most Print Management companies manage the total flow of documents/forms, where by you do not need the cost of warehousing and distribution. Well managed warehousing and distribution is important to the Print Management programme. Why? Because knowing when stocks are reaching their depletion point allows time to review the situation. For instance, documents/forms can be reviewed prior to reprinting; and the review can be used for additional analysis-and possibly the analysis will lead to additional document/form considerations. Adequate lead times also eliminate rush/emergency printing charges-allowing you, the Print Management team, to get the right item to the right people, at the right time and at the lowest cost.
  • 15. 15 CAVENDISH There are other issues; however, the important issue is the warehousing and distribution component of a successful Print Management programme. The most critical issues are correct unit of issue; backs orders and correct data entry. Correct Data Entry The maximum` garbage in, garbage out` (meaning, you will get inaccurate statistics and reports- output-if your input data is incorrect) was never truer than in this instance. Accurate reorder reports, accurate usage figures and accurate order histories are totally dependent on quality control of data input. All of these reports affect the ability of the Print Management programme to ensure that documents/forms are available when needed and that documents/forms pricing is not subject to emergency charges. Of course, no data entry is ever going to be 100% accurate, cross verification from other sources can be useful and a physical inventory should be carried out at least once every six months to double check the report inventories. What other issues do `true` Print Management specialists need to address? There are a number of reports from the warehouse that are useful to the team-quantity on hand, reorder notices, monthly order history and end usage information. The quantity on hand report details the current inventory of each document/form. It can also include such items as unit of issue, value of each item and last reorder date and quantity. The value of each document/form details how much the inventory is worth. This is useful for budgeting and insurance purposes. Recorder Reports Reorder reports enables the Print Management team to know which documents/forms are at a depletion point. The documents/forms on the reorder report can be cross-referenced to a document/form list sorted by size to help determine combination orders. The monthly order history gives trend information. It helps with documents/forms that are used seasonally. It is also useful when trying to predict accurately when a document/form must be reordered. Conclusion The ideas in this publication are a good place to start if considering the implementation of a `true` `Print Management Service Programme` or while evaluating an existing programme. Remember, when run properly a `Print Management Service Programme` positively affects the companies `bottom-line` in a very positive way, you save an enormous amount of money and become more efficient and effective in operating your business. Print/Documents/Forms are a part of every companies business whether provided in house or from a vendor or by a combination of the two. A `Print Management Service Programme` should be an essential part of every companies business as the third dimension of control for your company. "The greatest pleasure in life is doing what people say you cannot do" Walter Bagehot, British author, economist (1826-1877)
  • 16. 16 CAVENDISH `An Introduction to Document/Forms/Print Management and Control` Document/Forms/Print Management Service This service will be defined in this article has a `Print Management Service Programme`, which is any activity or formal programme in which a specialist assumes full responsibility for all of a companies requirements as detailed below. 1. Design 2. Cost engineering 3. Origination 4. Maintenance of clients corporate image 5. Printing plate and negative maintenance and CTP 6. Documents/forms/Print requisitioning 7. Procurement 8. Storage 9. Distribution 10. Stock Control 11. Reports to management These requirements are important considerations because usually more than 75% of the paper used by information workers consists of documents/forms. The price a company pays for documents/forms represents a small percentage of the cost of use. A `Print Management Service` control programme can significantly reduce procurement and ownership costs. Why the need for a `Print Management Service? Most companies of any size have systems and procedures staff but these people usually find themselves embroiled in top level procedures, which partake of the nature of the core business of their company. They never find time to work on the smaller ubiquitous manual procedures involving 9 out of 10 documents/forms. As a result, the computer procedures involving the main core business are served well but because of the lack of computer and business analysts, the problem of manual clerical expense goes begging for want of time. Research has shown that purchasing departments responsible for consumable supplies are at the bottom of the priority list for computerisation and with the ever increasing demands made on the IT department; the purchasing department will have to carry on waiting. Even when computerisation is implemented in the purchasing department, the level of sophistication of the software usually does not live up to the expectation of the users. Negotiating the price Purchasing departments, traditionally in the Europe operate at arm length from their suppliers and trade one off against another in an attempt to strike the optimum deal. The hidden threat of a company indulging in alternative sourcing is always paramount in the mind of the supplier. This method of negotiating works very well in the majority of cases but making a price value judgement on such items as specially printed business documents/forms for use on high cost computers is very different.
  • 17. 17 CAVENDISH Controlling documents/forms expenditure Within most companies the control of documents/forms is non existent. Even in large companies the control rests in the hands of someone who does not have a dominant interest in controlling the mass of documents/forms and details of the paperwork expense. This person is usually on the payroll at a level, which means that the responsibility cannot be more than a passing interest. Experience shows that such control passes over as that person is assigned or moves on to bigger and better things either within the company itself or elsewhere. Partnering arrangements The way forward is in partnerships, which are geared to the long-range solution of the problem. If the company reduces its cost and operates more efficiently and the `Print Management Service` specialist makes a profit, who loses out? The answer must be the Print industries gross income, which is not necessarily reflected in, reduces profit. How, therefore, can a `Print Management Service` specialist enter into a `Print Management` service with all the consultation time and expense without charging an additional fee that would kill the attraction of the programme? Production line operation The answer is found in a simple, established economic formula that Henry Ford applied when he put a car within the reach of every average family in America. That formula is the substitution of production line operation for the job shop operation with the inevitable increase in economics and efficiency. The commercial printing industry is the only major industry, which operates almost on a job shop basis. Jobs come in one at a time. The printer must be equipped to handle them that way usually on a short delivery basis that precludes the possibility of scheduled planning for the most efficient use of the equipment. Job shop operations means a separate machine make ready for each job. This, in turn, means more downtime for the machine instead of profitable operating time. You only have to imagine what a made-to-order car would cost as opposed to a standard model to appreciate what you are paying for when you send a spot order to the printer. The difference between production line economy and job shop cost is the key that makes it possible for a `Print Management Service` specialist to supply all the features of a `Print Management Service` whilst charging no more than the average print manufacturer who bases the charges on mere paper and ink and the manufacture of printed documents/forms. To highlight my point, a further example is in the cost structure of listing paper. Listing paper is made under the production line operation theory and its low price reflects this. Cost reduction As is true in any manufacturing process and printing is one; the substitution of production line operations for job shop operations usually means improved economy of production. Costs are lowered by means of grouped or combined production of documents/forms for many customers. Couple this with the fact that the `Print Management Service` specialist has control of all the origination under its roof so that every time a job is printed, the printing plates are made from the same photographic negatives created and maintained electronically. By following this business procedure the `Print Management Service` specialist can guarantee that every time a document/form gets printed it gets printed correctly. It is these internal cost reductions in production of documents/forms that repays a `Print Management Service` specialist for the other services it provides.
  • 18. 18 CAVENDISH Using expert systems The `Print Management Service ` specialist has the ability to perform this enormously complicated function of an advanced `Print Management Service` is made possible by its very sophisticated computer software. Computer networks The `Print Management Service ` specialist has immediate access to its suppliers and likewise gives those suppliers not only access to the `Print Management Service` company database but also to its electronic artwork system which contains all of the documents/forms originated by the `Print Management Service` specialist under a confidential agreement. It is now possible for manufacturing suppliers to take this graphic information directly from the `Print Management Service` company files and convert it into press ready printing plates. This obviates the need to produce expensive photographic negatives and means that a repeat order will be ready for production within minutes rather than days. Customers linked electronically The `Print Management Service` specialist would have many if not all their clients linked electronically. Thus allowing access to appropriate areas of each others database. They therefore have the capability not only to view real time information on delivery schedules etc, but also to look at the full historical usage and specification of any or all of their documents/forms. An additional bonus is that they are also linked to a vast electronic mail network. The `Print Management Service` is unique. Most Print Manufacturers selling direct to the end user have not developed the computer system procedures and networks to even begin to match the comprehensive services of `Print Management Service` specialists. What are these services and how important are they? They are the function at the core of the programme of a `Print Management Service` which attacks the basic causes of excessive paperwork costs, going after the seven eighths of the paperwork iceberg that is hidden under the surface. Melting the paperwork iceberg. The `Print Management Service `specialist will establish control over the paperwork problems by building a control file of all the company's documents/forms. Every document/form used throughout a company should be classified by function within a systemised family thereby hanging together in one electronic file-a specification of all documents/forms with overlapping or similar functions. This reveals duplications, makes possible the elimination of superfluous documents/forms and prevents the inception of unnecessary new documents/forms. Therein lays the real key to the internal control of paperwork costs. Through the information available from this functional index of documents/forms the company can do several very important things each of which goes rather beyond the mere fact of documents/forms control as such, but lies in an area contiguous to documents/forms control. Cost engineering A primary function in a comprehensive paperwork programme is the creation of standard design and specifications for the company's business documents/forms. This applies to the physical properties of the documents/forms not to their language content. The printer is not concerned with the words or image on the paper but must have some common denomination in the physical properties such as the size of the document/form, the number of colours, quality of paper, ink colour and all the other items that govern the production operations. The `Print Management Service` specialist will develop high standards with the client and will advise on cost engineering benefits.
  • 19. 19 CAVENDISH Warehousing to prevent stock out Lack of inventory control will, of course, kill the economics of production line manufacturing faster than any other factor. The need to print emergency orders to replenish nil stocks will put the printer back on a job shop basis. The most expensive document/form that you will ever use is the one that you required when you are out of stock. A` Print Management Service` will alleviate this problem by warehousing the documents/forms for its clients. Document/form bank A `Print Management Service` specialist will guarantee that you never run out of stocks. All past order information relating to clients documents/forms are stored on a database, which periodically issues pre-printed, requisitions and simultaneously generates a manufacturing production schedule. The software automatically group's together documents/forms with like specifications to ensure that the most economic system for production is created. It is by this method that a `Print Management Service` specialist is prompted to put stock back into documents/forms bank at the most cost-effective time. Total cost consideration Cost engineering of documents/forms to ensure that they are produced in the most economic way is very important. However, the cost of the document/form represents only 6% of the total cost of using the document/form. A `Print Management Service` specialist frees the client of the functional aspect of his paper flow, reducing the clerical pounds/euros and helps the company become very efficient and in most cases saves thousands of pounds/euros on behalf of the client. It has been accepted that the `costs in use` figure is significantly higher than the cost of printing the document/form; for many years in the absence of any real empirical studies, a ratio of 20:1 has been used to emphasise this point. In viewing the paperwork burden as a significant part of the corporate overhead, management needs to develop a plan to apply practical solutions to the problem. "It is time for all of us to stand and cheer for the doer, the achiever - the one who recognises the challenges and does something about it." Vince Lombardi, US football coach (1913-1970)
  • 20. 20 CAVENDISH `DOCUMENT CONTROL - SAVES TIME AND MONEY All companies should operate a document control system because it saves time and money! It is estimated that around 80% of business information in companies is unstructured, and of that, only 20% is managed, yet it is hard to think of one business activity where content does not play an essential role. The result of this is that organisations lose time and miss out on opportunities to become more productive. Even worse, unmanaged information is an increasing liability for organisations that are frequently held to account on the basis of some information they could have destroyed, if only they had known they still had it. Operating an efficient and effective Document Management System will increase your `bottom-line`. In all organisations, document control is necessary because it helps you control the flow of documents, information and puts £`s on your `bottom-line`. In all offices, from the smallest to the largest, it is necessary to keep track of the number of documents being used. In the smallest office, the method may consist of only a periodic visual check of the document supply. In a large office that uses thousands of documents, a document control plan based on the systems family method will be needed. In a large corporation a functional file system is implemented to handle the thousands of documents that are used. Generally, the numbers of documents a company utilises determines the types of document control programmes that are employed. Document control determines many issues including re-order points, order quantity, potential combinations, and obsolescence. An organised document control programme should meet the following objectives; a. Serve as a point of reference and an historical record that should include some method of cross-reference. b. Conform to efficient alphabetical and numerical filing principles, and c. Provide a good degree of control, yet remain as simple and effective as possible. The major types of document control programmes used today are inventory control, systems family and functional file. Inventory Control One of the most commonly used methods of document control is the inventory control system in which an inventory file is maintained for a client or by the client directly. An inventory control system is often used in the small to medium sized company that has a small number of different documents. The primary purpose of an inventory control system is to check the usage of the documents so that running out of documents does not occur. When document warehousing is provided, inventory control is commonly part of the package. An inventory of the documents is taken periodically usually once a month and records updated at that time. Sometimes a client does the physical inventory and furnishes the figure to the document consultant so that the usage figures may be updated. The system may be manual or computerised. However, in today's world of electronic record keeping systems, it is seldom cost effective to maintain a manual system. Spreadsheet client records are kept on file so that a simple report is issued each month. A document inventory control system helps to prevent a company from running out of documents, thereby eliminating the need for costly rush orders and special handling. An inventory control system is a good selling point to get and keep key accounts, especially when fast delivery is important. It provides economy in the production, storage, distribution and use of documents. In terms of cash outlay, this is the simplest and for many companies the most practical form of control system.
  • 21. 21 CAVENDISH Inventory control has no built in provisions for document analysis. Instead it relies on the professionalism of the document management consultant for the document analysis and design. A one or two month cushion should be built into the document re-order lead-time so that the document can be properly analysed. The document should be evaluated every time it comes up for re-order to determine if revisions are necessary. Systems Family The systems family method is an easy way to keep track of the multitude of documents used in a company. The system family has two basic functions, first to keep the document grouped for systems analysis and secondly, to assign a number to each document. It must be kept in mind that the systems family main function is to ease system analysis. The way that the systems family happens to provide document numbers is an added bonus to the system. The system family method is based upon the basic business functions; sales, production, transport, invoicing, accounts receivable, purchasing, receiving, storing, accounts payable and accounting. Each family can be further sub divided if that family has a great deal of documents in it. For example, sales can be broken down into dealer sales, direct sales, export sales etc. A company that has a thousand documents, for instance, can develop a manageable number of files by sub dividing the categories into fifty families. Of course, the number of types of families can vary from company to company. The most suitable numbers for this type of document control are three digit numbers that indicate the systems family. Each system family is assigned a three-digit number from 010 through to 999 in such a way that families are spread evenly throughout the series. Each document is given a number from the systems family, for example, the major headings and another three digit number from the master code within that family, for example, the sub heading. In the systems family method, each document is numbered. The numbers serve to identify the document family. The document number is normally a three-digit number but if there are thousands more documents in a family a five-digit number is required. Since most systems can manage within a three-digit system, it is usually better to sub divide a family that has a hundred or more documents into two or three families rather than to use five or six digit numbers. The document number should always be followed by the date of the most recent revision. If no changes are made to the document when it is reprinted, the date remains unchanged. To prevent duplications a master log is made up for each family to keep track of the document family. If desired, blocks of numbers within each family can be reserved for future documents. The analysis of a group of documents is made extremely easy with the use of a systems family method. The three-digit prefix distinguishes the entire document in one family and enables the rapid analysis of an entire system. The systems family method is easy to learn and can be used by companies with thousands of documents. Only one folder is necessary for each document. Systems families are listed in alphabetical order and the alphabetical list is numbered, the folders are automatically in both alphabetic and numerical order. When documents are grouped by the systems family method, systems analysis is relatively easy. Like the functional file method, the systems family method requires relatively high set up and maintenance costs. It is an alternative to a functional file system and it does have its drawbacks. One major disadvantage to the family system method is the inability to classify documents for systems that do not fit the narrow confinements of the basic business functions. There are classifications such as personnel, computer operations, reprographics, record department that are not addressed by the basic business functions and should be included in a thorough system as the only way to control the whole documents of a business is to include all departments. This is the way for full control and maximum savings.
  • 22. 22 CAVENDISH The Functional File Conceptually a functional file is a classification system to aid systems analysis for large quantities of documents. In the functional file system, which is also referred to as a functional index, the files are categorised by functions. In a company that has thousands of documents a thorough system is needed to keep track of all documents that are in use. The functional file is the system that allows thousands of documents to be easily referenced. The functional file is the system in which documents are filed in two separate files, a numerical and functional file. Document number files the numerical file, which is a functional file system based upon individual preference. Alphanumeric or numerical division prefix followed by a numerical etc. The possibilities are endless. The document number is merely a method of identifying the document and is not related to a code for systems analysis. The numerical file consists of a separate folder for each document. The folder contains a few copies of the document as well as a historical account of document revisions, comments, specifications, samples, order history and information on the departments that use the document. It helps to identify different documents that may have the same number and it simplifies a task of contacting all interested parties when a change to an existing document is proposed. The unique document number files the folders in numerical sequence. The documents are unnumbered and arbitrarily assigned a number immediately. A functional file is created by collecting copies of all the documents used by a company for both inside and outside communications including note pads, envelopes and cheques. A thorough document collection can readily provide the answers to many system analysis questions. a. Is there a document in inventory that can be used? b. If not, is there an existing document that can be modified to do the work of two? c. Can this document be combined with another so that both can be completed in one? d. Can readily available stock documents be used to replace a product design or low usage document? e. What departments are using this document? f. Is this document obsolete? Because a functional file controls a vast number and variety of documents, the system requires a greater amount of time, effort, resources and maintenance. It must be kept in mind that the primary purpose of the functional file is for systems analysis. The functional file makes it extremely easy to single out an entire subject for examination. However, the job of collecting and filing the documents can easily take one-person weeks or months. It is estimated that a minimum of 8 minutes is required to categorise and file each document. Companies that have only 100 documents do not use the functional file. Instead, it is used primarily by organisations that have thousands of documents and their own documents control personnel. It is never too late nor too early for these types of companies to start a functional file. Unusually though such a file is not begun until after the need arises. For companies that have a multitude of documents a functional file is required to provide necessary systems analysis. All work carried out on document control can be operated successfully by a specialist workflow solutions company, which will give you ` full control` and the costs that drop to the `bottom-line`. "The secret of getting ahead is getting started. The secret of getting started is breaking your complex, overwhelming tasks into small manageable tasks, and the starting on the first one." Mark Twain
  • 23. 23 CAVENDISH `SIMPLIFIED COMMUNICATIONS` UNIFYING DOCUMENTATION BLUEPRINT Computers accelerate the volume and flow of information. But some questions remain. "Has your investment in information technology improved the way you communicate with your customers?" "Do people understand your documents and do they get information from your documents without struggling for it?" The answers in most cases will be no, but then most companies do not even ask the questions. For those who do and who want to improve their customer communications, the first problem is invariably "Where do we start?" There are usually two large obstacles to overcome, namely, deciding which of the documents to look at first and who actually has responsibility for each of them? To help tackle these issues and to establish a programme of improving the quality and efficiency of your documents, I recommend a `Unifying Documentation Blueprint. The objective is to come to grips with the diversity, complexity and cost of your communications and then to establish a comprehensive strategy for improving their effectiveness, while reducing the cost. Document Management focuses on the documents and electronic information that customers and staff need to conduct their business. The simplified communications we develop make your business documents easier to understand and use. They also act as a catalyst for organisation and technology changes that result in significant cost efficiencies. There are three phases to each Unifying Documentation Blueprint: 1. ANALYSIS In the first phase we analyse the documents used in your organisation and the processes that control them.  What documents do you have, who uses them and how?  Which documents are the key ones?  Who is really responsible for your documents?  How are they produced and processed?  What do they cost to produce and process?  What do your customers think about them? Phase 1 establishes which documents you REALLY need to conduct your business.
  • 24. 24 CAVENDISH 1. SIMPLIFICATION STRATEGY In this phase we develop a strategy for rationalising some or all of your documents and demonstrate how the information could be simplified.  Reduce the number of documents.  Reduce the number of different paper stocks.  Consolidate and restructure information.  Design page layouts and templates  Simplify the language.  Customise the information.  Develop a strategy for effective marketing communications. Phase 2 indicates how we SIMPLIFY your documents and document systems. 1. BLUEPRINT RECOMMENDATIONS In the third phase we identify which documents need to be simplified first, provide fully implemented examples of re-designed documents and set out recommendations for further work.  Establish priority for documents to be simplified.  Calculate anticipated cost benefits  Compare initial costs with potential savings.  Agree a timetable of document revisions.  Allocate resources and confirm responsibilities on both sides.  Provide worked examples of simplified documents.  Implement re-designed documents.  Recommend a programme for further simplification. Phase 3 shows what CAN be done and recommends what YOU need to do. SPOILT DOCUMENTS COST 15 TIMES MORE TO PROCESS THAN CLEAN DOCUMENTS… The cost of badly designed documents There are several reasons why people do not fill in documents correctly. They may not understand the questions, or there may be more than one answer. The sequence may be confusing, or there may not be enough space for an adequate answer. Whatever the cause, the consequences are predictable- frustration with the exercise, antagonism towards the organisation and a significant increase in administration costs trying to resolve the errors. The extent of these additional costs can be seen in the following calculation. `Spoilt documents cost 15 times more to process than clean documents` The Inland Revenue says so - and they should know! They say that this ratio is at least 15 to 1, and that is the figure we have used for this cost comparison. If a department processes 100,000 copies of a document each year, and it costs £10 to process each document, then the overall cost will be £1,000,000. However, if the error rate is say, 20%, then the additional costs are a staggering 280% of basic processing costs.
  • 25. 25 CAVENDISH Processing costs for 100,000 documents Error Spoilt At £150 Clean At £10 TOTAL Rate Documents per copy Documents per copy 30% 30,000 £4,500,000 70,000 £700,000 £5,200,000 20% 20,000 £3,000,000 80,000 £800,000 £3,800,000 10% 10,000 £1,500,000 90,000 £900,000 £2,400,000 0% - 100,000 £I,000,000 £1,000,000 Every 10% reduction in the error rate saves 1.4 times the basic cost of processing. The benefits of well-designed documents include fewer errors, more efficient administration, more satisfied customers and significant cost savings. `Reduce the number of documents and reduce costs` The cost of too many documents Each year, organisations tend to increase the number of different documents they use. This means increased costs and the potential for greater confusion among their staff and customers. Organisations rarely reduce the number of documents they produce, either because they do not recognise the problem or they are unable to find a solution to it. However, a Document Management Specialist who has considerable experience in simplifying and consolidating systems of documents can save an enormous amount of time and money. The benefits of reducing say 9 documents to 1, or 40 to 7, are significant and quantifiable. It is recognised that the cost of processing a document is at least 20 times the cost of producing it. Processing includes administration, filing, transport, storage, inventory and obsolescence. Assume that the general operating costs of a large organisation are £10 million a year, and 2.5% of this figure, £250,000 represents the cost of producing all of its documents. Any significant reduction in the number of documents will result in a reduction of costs for production and processing. The extent of the savings can be seen in the table below. PROCESSING COSTS Reduction Production Processing Total SAVINGS In documents costs costs costs 0% £250,000 £5,000,000 £5,250,000 10% £225,000 £4,500,000 £4,725,000 £525,000 20% £200,000 £4,000,000 £4,200,000 £1,050,000 30% £175,000 £3,500,000 £3,675,000 £1,575,000 Annual savings are typically 10-30 times the cost of consolidating documents. Develop quality communications through a Unifying Documentation Blueprint and save money/time/gain customer satisfaction and total control of the future.
  • 26. 26 CAVENDISH DOCUMENT MANAGEMENT IS VITAL TO BUSINESS SUCCESS IN AN INFORMATION SOCIETY Today's information explosion has contributed greatly to the rising costs of operating a business. If you wish to save money/time, read on! Very often underrated in this age of automation, business documents remain a critical part of the overall picture and are important links in the chain of any organisation information resources. Both hard documents (paper) and soft documents (various types of electronic document systems and screen formats) are vital communication tools that collect, transmit, and distribute information. Despite technology, chances are good that a company can be overwhelmed by information and still find it unavailable at the right place and time. Automation does not automatically improve information collection and transfer-or its cost. Valuable employee time may be sacrificed to retrieve and digest data; still more time is lost filling out documents to feed the information system. Documents represent sizeable hidden costs-especially when not properly managed, nor their affect upon the system adequately understood and evaluated. This is a direct and indirect impact on administration expenses, profitability and an organisations ability to compete. As already accurately described by leading Print Management Specialists, a prerequisite to future success through effective management of information, is management's ability to take full advantage of every opportunity to increase their companies competitive edge through the timely flow and quality of information throughout the organisation. While also improving `bottom-line` profitability. Documents represent a considerable cost containment opportunity; they can add significantly to the efficiency (or inefficiency) of information systems. If you look at the figures of some companies they indicate that at the typical company, the percentage of documents is equal to only one half of 1% of its net sales, but the cost of using them is 20 times greater. This means that the total cost of documents can affect the `bottom-line` profits by as much as 10%. The key to increased office (information) pro-activity lies not only in utilisation of today's technology, but in information transfer systems, which have been adequately researched and evaluated. Creation or a vision of these systems (including documents) without thorough analysis, treats only symptoms of the problem (issue), leaving the disease untouched. Paperwork and its associated cost keeps multiplying Whatever happened to the prediction that the new technology would imminently bring us to a paperless society? In reality that very technology has brought on a new avalanche of paper in the office and at home- unequalled since the proliferation created by the invention of the copy machine! The 1970 UK document sales volume was £80m, in 1981 volume exceeded £250m, by 1993 the figure was £520m and the amount predicted for 2010 will be £2b+. Time enough, the new technology has brought about quantity declines in certain types of documents, such as unit sets and continuous forms. However, that same technology has also directly and indirectly spawned entirely new ones; mailers of all guises, datamailer pieces, labels of all kinds, colourful pre-printed documents of every description for the personal computer, and the list goes on. New products appear almost daily; to meet the requirements of new equipment, methods, systems and objectives. In addition, the new technology has summarily provided for the birth of a whole new generation of document producers and even greater quantities of new documents. It took one individual about as long as it took me `about 15 minutes` to figure out that. With all their new user friendly hardware and software in front of them, they could not only fill in data on a screen, but they could generate their own graphics, spreadsheets, reports of all kinds and produce their own documents.
  • 27. 27 CAVENDISH Do it yourself electronic information is being `manufactured` at a blinding rate (in quantities as yet not accurately identified) on every conceivable type of desk top, printer and copy machine; in quick-copy and in-house printing facilities and corporate offices. The purposes for avoiding any discussion here of the identifiable value of all these activities to the organisation, we can get at least a rough idea of its end-result product. As far back as October 1985, `High Tech Marketing` asked and answered an interesting question, ` Who is the world's largest publisher? ` Random House, Simon & Schuster? Wrong. It is Fortune 500 in the USA. In a single year, American business offices generated gargantuan 2.5 trillion, yes, trillion, pages of reports, manuals, letters and other printed material. By 1990, industry's sources the total corporate print output was 4 trillion pages, enough to bury the entire country under a blanket of paper several layers thick. Europe is no different to America and we are following in their footprints very closely. Although, the use of paper is about 6 trillion pages at present in the USA, this will slow down due to the world-wide-web or will it! The old, overused slogan `Garbage in, garbage out` can now be updated to reflect `Inefficiency/unnecessary/expensive garbage`. Or simply, `Who is minding the store? Anyway, no matter, the value of the French proverb `the more things change, the more they remain the same`. Obviously, documents are not going to go away! If anything, they are more likely to increase in number, type and cost if organisations do not implement a `Document/Forms/Print Management/Workflow Solutions Programme`. Document/Forms/Print Management still a viable answer But, what for a solution? (By that I mean, a pragmatic business like approach to cost containment). Can not technology help? Yes, it can. It is. At present not very much! How does that mean, new ground to be broken? Not necessary. Just such a cost containment programme already exists, one that uses proven standards and techniques. Remember back before the time when documents and other paperwork were supposed to have disappeared-I mean way back, before technology was supposed to be the single best solution in helping business make really good management decisions. Well, to be efficient in this technology age, you need to start a programme that controls the costs of documents purchased and processing. This programme can be called any of the following; Document/Forms/Print Management Service. Document/Forms/Print Management is an effective cost containment programme, which emphasises practical applications that produce identifiable cost benefits/improvements (not mere theoretical speculations) and which also emphasises the efficient movement of business information. Through an aggressive, results orientated programme such as Document/Forms/Print Management; many organisations have realised a 10-40% reduction in Document procurement costs alone, with as much as 10-20 times an amount in processing and file maintenance cost savings. Document/Forms/Print Management works in all sizes of organisations. An excellent publication to read is `The Guide to Print/Forms Management Service`. A comprehensive guide to implementing a Document/Print/Forms management system. Please visit www.cavendish-mr.org.uk for information. Using proven techniques such as information flow analysis, valued analysis/engineering and professional document/form design, Document/Forms/Print Management can achieve long range simplification of information transfer systems. Information transfer systems represents a significant initial and continuing economic investment for any company or organisation. The quantity and flow of information will reflect the degree to which they are managed. The efficiency and cost of administration, in turn, is affected by the application of standard management techniques for evaluating, guiding, maintaining and auditing information to increase productivity and reduce processing costs. Document/Forms/Print Management is not a production function. It is primarily analytical and development in nature. This is important to emphasis because of a tendency to view Document/Forms/Print Management as a records, drafting and/or graphics activity. Personnel skilled in Document/Forms/Print Management are not only necessary, but also, essential in order to realise the greatest economic value from information systems, design and analyst.
  • 28. 28 CAVENDISH Benefits of Document/Forms/Print Management If you refer to the chart figure 1, this illustrates the breakdown of a document/forms cost to a company. Although it was developed primarily for hard documents/forms, simple reflection will provide soft document/form equivalents. Figure 1 Why Documents/Forms are never cheap! The initial price of a document/form is only the beginning. A larger cost perspective is CRITICAL to understanding the total impact. The following is a partial breakdown of document/forms costs; 4.4% = Manufacturing costs  Design  Approval  Ordering  Proofing  Recording  Manufacturing  Receiving  Warehousing 84.4% = Clerical processing costs  Requisitioning  Delivery  Receiving  Storing  Entry  Checking  Approval  Filing  Retrieval  Transmittal  Distribution  Copying  Reference to/study of  Additional entries  Transcription document/form
  • 29. 29 CAVENDISH  Refiling 11.2% = File maintenance costs  Storage  Retrieval  Transfer  Retention  Disposition Reduction in the number of documents/forms, of course, could mean that either fewer staff would be required for processing, or that existing personnel will be able to take on work which might otherwise require additional staff. Data Processing documents/forms are often the larger volume documents/forms and cost more to purchase, but generally generate the least use expense. Here is an example of the cost of processing a document/form; `The average document/form is used in quantities of 2000 per annum`. An average of 25 minutes is spent completing, reviewing, and filing each document/form. This amounts to 50,000 minutes or 833 payroll hours. Add to this an average of 28% of clerical time is wasted on poorly designed documents/forms, and bells start going off all over the place! My years of experience as an Information Management Specialist has shown me that most organisations need 50-60% of their documents/forms to be redesigned, just because they are clerically inefficient. The chart in figure 2 shows how each of the various components of Document/Forms Management contribute to the overall cost containment benefits, directly and indirectly. Figure 2 The Relationship of Document/Forms/Print Management Components to Overall Cost Containment. Document/Forms systems analysis-identifies essential information transfer systems and determines the most efficient implementation methods by;  Preventing undue duplication of documents/forms and systems.  Eliminating unnecessary documents/forms and systems.  Ensuring processing techniques conform to systems, objectives and other requirements.  Combining documents/forms/systems with similar objectives.  Implementing information transfer systems as a minimum overall cost.  Selecting the most efficient processing medium required for implementation and providing necessary communication of essential information.  Assisting in long range planning with good information.  Improving communication  Increasing employee morale  Minimising `rogue` documents/forms and systems.
  • 30. 30 CAVENDISH Document/Forms Design Analysis-determines the information arrangements/configuration, required spacing and general specifications for efficient use. It offers the following benefits;  Ensure that configuration integrates into all phases of the system.  Standardisation of clerical activity.  Strengthening of departmental quality standards.  Ensures that specifications are maximised for clerical efficiency.  Sustained company image. Document/Form Design-which involves planning the pattern or sketch of information, offers the following benefits;  Ensures construction and design are maximised for efficient use.  Integrates into the document/form all phases of the information system.  Assures usability to professional standards, limitations/requirements of equipment.  Improve user psychological response/attitude.  Provide integration between systems.  Minimise entry errors. Document/Forms/Print Procurement-reduce `bottom-line` expense by;  Assurance of cost effective procurement procedures.  Elimination of multiple editions of the same document/form.  Standardisation of specifications.  Volume contract buying. Document/Form/Print Inventory, Warehousing and Distribution-reduce unnecessary waste and expense by;  Promoting adequate low stock levels.  Providing assurance against stock outs, over-stocking, new stock being issued before old stock is exhausted.  Ensuring storage conditions are safe, legal, best use of available space.  Implementing and maintaining policies and procedures, which ensure against over-stock and frequent emergency deliveries. Document/Forms/Print Management Procedures-minimise the economic impact of information transfer systems through such processes as;  Evaluation, creation, guidance and maintenance of cost effective systems.  Expansion of costs audits.  Prevention of the creation of unnecessary information, transfer systems, documents/forms and equipment.  Education of/and assistance to operations personnel in economical information transfer procedures.
  • 31. 31 CAVENDISH  Consultation with management on all aspects of transfer systems related procedures and media. Document/Forms Numbering, Records, Indexing Tasks-reduce unnecessary duplication costs and provide;  Unique item identification.  Location of common characteristics in function.  Identification of common specifications.  Location of using areas.  Cost allocation.  Identification of common systems relationships and data elements. Document/Forms/Print Management Automation Produces limited improvement. Technological advances as well as economic and sociological trends, have already and will continue to impact business document/forms in very fundamental ways, i.e. the end product of the industry has changed. Examples include such items as;  The number of certain pre-printed documents/forms is declining.  Advanced equipment is changing design and production methods.  The definition of a document/form is undergoing evolution.  Few hard documents/forms go through their life cycle without interfacing with one of the new technologies.  There has been a rebirth of what used to be called the `plain vanilla document/form`. There is no more universal a document/form than a blank sheet of paper! Technology has also spawned the need for people in the information management profession to learn new technologies, increase their skills, and broaden their exposure to inter-relationships between all allied fields. The smaller computers and software in the office have permanently changed the way we all conduct business. Even new models of management are being tested! Realising that documents/forms are not going away, software developments are providing automated `helpers` from management. Desktop scanners are also beginning to play a prominent role by increasing the speed at which hard documents/forms data can be input into the corporate information system. The current Document/Forms/Print Management packages are primarily document/forms inventory, acquisition and distribution software-renamed. As valuable as material management is and it is, these developers have provided very little or nothing for Document/Forms/Print Management Systems administration functions. For these activities, Document/Forms/Print Management is left to maintain cumbersome manual methods. In addition, many packages offer nothing for document/forms design, again forcing perpetuation of time consuming methods. Separate document/forms design packages do exist, and often, merger attempts to adapt desktop publishing. It is an amazing thing to me that there are so many user friendly software packages out, which allow you (many with no little difficulty) to design documents/forms on a computer that you can not use on one!
  • 32. 32 CAVENDISH Many of these persist in using picas and points (ancient printing measurements), where many professional document/forms designers, of the most basic skills, will inform you that documents/forms are designed in inches for the depth of the document/form and in metric for width of the document/form! (It is true that a document/forms designer must understand the points and picas, but for other considerations). Some of the low-end software offers nothing more than what you could design (and I use that term loosely) on a desktop computer. Also, what is the logic in using technology that is in conflict with that used by the professional industry in question? Some of the descriptive terms are absolutely in error. Such as the use of half tones, shaded or grey areas for the most appropriate term-screens. The term lines is used instead of rules, even through the term `line` means to the professional analyst and designer, space for data entry. Some technology is just a bother, like landscape and portrait. When what you really mean is horizontal and vertical. The professional Document/Forms/Print Associations have raised this question with the software developers, but they become defensive, stating something to the equivalent of `well, we have got to make it conform to other software`! In conclusion Document/forms/Print Management (facility management of documents/forms) is necessary to control the third dimension of company's activities- to develop partnership plans to save time and money in the short and long term for industry. The implementation of this type of system will save money that drops to the `bottom-line`. "Motivation is always in direct proportion to the level of expectation." Denis Waitley
  • 33. 33 CAVENDISH PRINT OUTSOURCED - OUT SMARTED! The shift from traditional general Print Manufacturing to outsourcing flexible, value-driven strategic sourcing is vital to value creation. Outsourcing has reached a critical turning point in its evolution that is set to radically transform the way organisations work together to realise and create value. Enterprises are increasingly looking to outsource specific functions or entire business processes to achieve boardroom aims such as resource efficiency, business change and value creation. At the same time, the nature of outsourcing is changing with traditional customer-supplier relationships being replaced by true partnerships or business alliances with both parties working together to achieve common goals. The trend towards more flexible, relationship-based sourcing requires organisations to re-evaluate the way they approach and implement outsourcing. It requires a broader and deeper understanding of what sourcing means and how it can be used for maximum business gain in both the short and long- term. To promote understanding, there needs to be a fundamental shift away from the term outsourcing to that of strategic sourcing for `Print Management`. Pulling Power The challenge organisations face is that of balancing cost reduction with agility (agility is defined as flexibility to create maximum value). Expectations are racing ahead of delivery capability, in turn managing complex infrastructures and offering enhanced services at any time, and from any location, requires high degrees of skill and expertise, which can be an expensive drain on resources. On a broader level, organisations are aggressively looking to build strategic partnerships and broaden market reach. Overcoming Fears Some organisations will inevitably miss out on opportunities for partner expertise due to a negative perceived image of outsourcing, especially in the context of a traditional customer-supplier relationship. There is an understandable fear that by outsourcing; an organisation will lose control of important business functions, especially where a strong DIY culture exists. Implemented properly, the opposite is true. In my experience done right, any kind of tighter supply chain relationship, which is how I see this, gives you more control not less, because you are more likely to ask the right questions and to do things like setting standards for performance. The term outsourcing only plays on people’s fears as it suggests control will be placed outside of an organisation. This suggests new terminology is needed that reflects the shift towards closer, more open working relationships where the emphasis is on the `softer issues` of trust, openness, and honesty. The term business alliance or collaboration is more appropriate for today’s sourcing arrangements. It is this mindshift towards flexibility and collaboration that is generating success.
  • 34. 34 CAVENDISH Understanding the Benefits Outsourcing especially, Print outsourcing has been proven to reduce costs particularly where inefficiencies exist. Organisations can typically save between 20 and 40 per cent in this way. The more sustainable long-term benefits are likely to stem from added levels of service/quality and innovation. I neatly divide the benefits of outsourcing into value realisation and value creation. Value Creation - A strategic Approach Organisations need to ask themselves the following questions; `How do we assess the competence that people have`. `How do we apply that competence to whatever point on the business model or structure that we want to apply it`. `How do we release their capability faster? ` The effectiveness of outsourcing relationships, and thus the ability to create value, rests with the combination of people, skills and systems needed to bind together an organisations network of business units, partners and service providers. Organisations must align expectations with real needs; structure deals to take account of the long- term business objectives and ensure good communications channels and strong leadership are in place. With the right people, skills and systems in place, organisations will be better placed to develop mutually beneficial business alliances and take value creation and a closer strategic approach to sourcing to new levels. Evolving Process To benefit from a strategic sourcing solution, whether in terms of reducing costs or creating value, organisations need to treat sourcing as an evolving process of co-operation. At the outset, there are the obvious operational issues to consider such as managing costs, managing technical and supplier complexity and managing risk. The Way Forward The most successful sourcing arrangements are the most intimate; these are true partnerships, with sound and flexible contractual status and mutual rewards for cost reduction and profit generation. These are closer and more open working relationships with looser boundaries and each partner organisation feeling part of each other’s business. These alliances will require greater levels of trust and honesty than ever before. They will require new ways of thinking of sourcing alliance, sourcing collaboration and strategic sourcing. This business trend as gained momentum over the years and is essential for all organisations. In conclusion Print Management (facility management of documents/forms) is necessary to control the third dimension of company's activities - to develop partnership plans to save time and money in the short and long term for industry. The implementation of this type of system will save money that drops to the `bottom-line`. "You make a living by what you get. You make a life by what you give." Winston Churchill
  • 35. 35 CAVENDISH `THE PARTNERSHIP PRINCIPLE` THE WAY FORWARD IN THE PRINTING INDUSTRY Many European companies are now lean, fit and the `most` successful have learnt that the true key to long term prosperity is total customer satisfaction. However, not enough companies have learnt to move quality up and cost down to be able to keep pace with their international competitors. In today’s local economy, European business can no longer afford to think in terms of being simply a Union of consumers. It must `refocus` on becoming a nation of producers in order to survive and grow. To do this European companies must learn to address a strategic key issue. How to work with both suppliers and customers in partnership, not in conflict. The reason why Print Management Service organisations are very successful is they use the `partnership principle`. The natural world abounds in successful partnerships with the teaming up of widely different species for mutual advantage. Many creatures enter freely into partnerships with others of their kind, to find food, to firm their territory or raise the next generation. Human life reveals daily evidence of the benefits that partnership brings, creating collective achievement that would be impossible separately, working together as partners. Why is it then that in the world of work, the partnership principle so frequently fails? " Right then Alex. I think that’s about everything I can give you on the new specification, does that give your company enough to devote to the quote now? I think so Adam; we certainly got as much as you always give us. Just the same, don’t take anything for granted, just because you won the last contract. Don’t worry, I know we have to win it with fair competition; our practice has always been pretty keen. They need to be, our margins are under terrific pressure with this new company that has opened up across town. Do I take it that the contract will run for 12 months as usual? That’s right, but it won’t even get started if you can’t get the number of running charges down. There were only two last year, and that’s not bad. I know, but if it goes any higher, it will start to increase our defect ratio. We have always managed to keep within the agreed defect ratio, though, have we not and we have managed to keep prices down below inflation". Contrary to first impressions, what you see here is not a working partnership, it’s a short-term power based relationship concerned only with negotiating down the lowest price standards and accepting good enough quality standards. There is no sharing of information, no pooling of resources and the supplier knows that if he makes a mistake he is out, but he is still the traditional model for many customer/buyer relationships in British business. Human beings are creatures of habit, our lives are filled with patterns of behaviour that we never think to question, how much time over the years could have been saved by keeping cereal, sugar and milk close together? At home perhaps it doesn’t matter, there’s no compelling need for change, but in the workplace, acceptance of the status quo is fatal! Where competitors have learnt smarter working practices in delivering a more competitive product, slower companies inevitably face extinction. The message is clear "change or die". One of the key reasons why companies fail to make the breakthrough for world class standards of performance is the traditional adversarial relationship between customer and supplier, with both sides seeking maximum short term gains for minimum investment. In a relationship characterised by mutual distrust and insecurity, acceptances of low quality standards and ultimately lack of true international competitiveness. These relationships are mutually damaging, nurturing a vicious spiral of increased borrowings, vulnerability to better-organised competition and in turn furthers reductions in manufacturing capacity. This erosion of wealth creation affects the whole community and in the end, the well being of the nation. One stark example of what can happen is the progressive domination of world markets by the Japanese carmakers of less than 30 years. Where a whole industry has abandoned the inherent inefficiencies of western style mass production in favour of the more efficient lean production system, that offers far higher quality and low cost.
  • 36. 36 CAVENDISH Consumer electronics like cameras and televisions have followed the same pattern and for many more companies, industries and whole countries. It is now a race against time. Companies no longer have a choice; they must become internationally competitive to survive in the long term. This means, changing historical practices, values and attitudes and changing them on an unprecedented scale. As in our everyday lives, buying and selling are at the very heart of business, the way world class companies have changed the nature of that relationship, is now seen as a critical factor in their success. They have discovered `partnership sourcing`, so what does the new style of buying and selling look like? Professor Dan Jones, the author of "The Machine that changed the World" describes the principles. "The essentials of a lean supplier relationship are a shared interdependent shared destiny relationship with suppliers. I’m going to work with you over the long term; we are going to work together. Life is not going to be easy, we are going to work really hard, you and I, to analyse costs in great detail to constantly find ways of improving productivity, design to incorporate reduced costs. But, that has got to be done within the context of a clear, fair set of rules, defining how we split the profits from these activities. Otherwise, I wouldn’t share that information with you. If you know that you are going to get adequately rewarded for your efforts in improving a product or the production process, you are very much more likely to take part in trying to do that. `Partnership sourcing`, unleashing the creative talents of both the supplier and the assembler, and welding them together, meshing them together, unleashes so much more competitive power, than working separately and hardly talking to each other. In the future we are not only going to have to integrate our suppliers, we are going to have to integrate our retailers. We are going to have to integrate the materials and manufacturers, we can actually integrate the designers in a seamless web, all focused on the `customer needs`, incorporating the world- wide- web in business-to-business to be an interactive process of `Partnership Sourcing` using the `Partnership Principle". Partnership sourcing is the opposite of traditional buying philosophies, in this new type of relationship, the supplier is an equal partner with access to confidential information and a sharing of knowledge and ideas at the design stage of the project. The supplier takes the initiative in seeking design improvements in order to give his customer the most advanced product and is willing to invest in training, technology and facilities to help him do it. In return the customer will help the supplier to learn and work the contract, providing the supplier has demonstrated commitment. `Partnership sourcing` is about long term relationships and mutual trust, prices are agreed at the outset, within in-built acceptable margins to both parties. Customer and supplier then work together to achieve the result they both desire. The result is a product that is customer led, of a consistently high quality with a zero defect target and at continuously reducing costs. In other words a product that is competitive anywhere in the world. `Partnership sourcing` has been described as resembling the relationship between conductor and orchestra, both sides working together for a common goal, with the suppliers delivering the product in perfect harmony. For today’s most successful companies, these principles underpin their whole corporate philosophy. But, nowhere in business is the partnership principle well illustrated as in the motor industry. Where the Japanese lean producers are making strategic alliances with British and other European companies. Premier Exhaust Systems is one example of the company that has learnt the new way of doing business. When Honda entrusted them with the first contract, Premier sent staff to study in Japan. Back in the UK, they built an entire new factory with new working practices and a declared Goal to become Honda’s best supplier in Europe. Their leap of faith was rewarded. "I think the state the relationship has reached illustrated the power of `partnership sourcing`. When we started out, our goal was to provide them with very high quality exhausts so that they in turn could provide very high quality products to their customers. We succeeded in achieving our end of the bargain and they totally fulfilled theirs.
  • 37. 37 CAVENDISH They then come along and said to us, well, we would like you to make catalytic converters for us now and that was a big step for our company to take. But, again they introduced us to their suppliers in Japan; we built superb relationships with their suppliers at each level. Our people from the shop floor have been out there and worked in Japan with them so the relationship was really excellent and based on mutual trust at all levels in the company. That is also extremely significant in the contest of Great Britain Limited, if you like, because we have been able to invest with confidence, with a long term perspective, we have been able to manufacture products here in the UK, which might otherwise have had to be made abroad. If you multiply that effect many times over, it will have a profound effect on our balance of payments and our balance of trade. So not only doing things which we feel are good for our own business, we are also playing a part in what is essential to regenerate Britain’s manufacturing base". At the other end of the spectrum Guinness too recognise that their partnership approach pays handsome dividends, both to themselves and their suppliers. Draft Guinness in cans for instance provides an example of a successful new product launch where the supplier was brought in early on and made the technical breakthrough Guinness needed to bring the product to market. Guinness is quick to point out that their suppliers too find benefits from the partnership approach. "They are benefiting as well from the reduced costs, due to us having a much longer time approach in terms of orders, in terms of invoicing, in terms of rolling forecast and eventually working to an electronic data interchange. So with a total see through, they would look and see through our stock requirements and visa versa. That has already got us to the point where increases in costs can actually be taken out and they can be absorbed because of savings in some of the administration functions. The field of competitive sport provides the most extreme example of the interdependence between supplier and customer. When McClaren won the Formula One Drivers and Constructors Championship for five years the quality of their engineering can not be doubted, how has it been possible? "With McClaren we have some simple but very important values by which we run our company and I would put at the top of the list, trust, if you have trust in position with all your employees and with your suppliers, you avoid wasting a great deal of time in circling each other trying to identify when weakness and strengths occur in each other. Trust is a great tool to use in any level of any company or relationship, be it with a supplier or an individual. Of course, it is important to remember that trust is an extremely constructive value, but if trust is broken, it can be as destructive as constructive. We need our suppliers to contribute everything they can to our success and if we are fortunate enough to have that success, we will share it with them". There is no longer any serious doubt that `partnership sourcing` is a fundamental requirement for global competitive success, but it demands big changes in attitudes and values and a willingness to discard the outmoded baggage of yesterday's ideas. The most successful companies in the world already practice partnership sourcing or are taking rapid steps to reform from their old short-term principles. Change is possible. Just look at China to see how `Partnership sourcing` is a part of every day life. Partnership sourcing means that together you can look forward to a more secure future; there are lessons here for every business. `Partnership sourcing` isn’t an option, but a necessity, without it a company is uncompetitive. Many uncompetitive companies make for an uncompetitive country, and the fate of an uncompetitive country on the world stage is bleak indeed. "In order for businesses of all kinds to succeed in this century, there is no option other than to move up the quality, move with technology and value added spectrum. Now there is only one way that you can do that, you have to get customers and suppliers to move up the quality of added value spectrum with the long-term view of investment in technology and people and if you don’t do that, you will certainly die. Success for the future is fundamentally about `partnership sourcing` by using technology and people and it is not just in the motor industry, this concept applies across all of human endeavour in my view".
  • 38. 38 CAVENDISH A handful of companies in this country are now doing what is almost standard practice in America, Japan, Germany and China, that is forming long term partnerships with new and existing local suppliers and international suppliers to achieve the high standards of quality, innovation and continuity of supply at competitive prices. Many companies now use the Internet to communicate business-to-business, for marketing of products and services to a global audience. This will widen the availability and awareness of customers and suppliers and increase productivity for print manufacturers by better utilisation of machinery. This will drive down production costs and allow more competitive prices in a true global market. Large and small print Company's world - wide will be a part of a business culture of the most competitive firms to go forward and be successful in this century. The advantage of the world-wide-web, simplifies communications by informing customers and suppliers of the partnership principal via your own website. Communication is the key for the future, either by person and/or by changes in technology. To summarise, we daily witness an infusion of new technology, new types of competition, new ideas and new solutions. The opportunity exists for all those involved in this industry to actively take part in the changes for the future. But, it also demands personal communications with customers. They need to be advised of the implications of new technology on their businesses. They need new designs, new ideas and ways of reducing the cost burden of operating their business without reducing quality standards. Partnership principles should be a part of your business strategy, incorporating several technologies, which are merging or interfacing with each other to augment the success of those who employ them. Do not be scared of change, working with your customers, employees and suppliers makes your business a more exciting enterprise and far more profitable. Remember, you are only in business because your customer allows you to stay in business. Also, the retention of the `right` employees are a fundamental part of your success. Together with excellent relationships with your suppliers. When you have these working relationships, you will have success. “The biggest discovery of every generation is that humans can change their life by changing their mental attitude!” Albert Schweitzer
  • 39. 39 CAVENDISH Strategic Alliances An Overview A strategic alliance is a unique relationship between two or more companies working together on a project designed to generate a profit neither partner could achieve on their own. Alliance partners keep ownership of their own businesses, while contributing capital, expertise and other "tradeables" to the mutual venture. During the past decade, strategic partnering has become a more attractive option because of the wide range of benefits, without the risk and burden of paying for them. These benefits include:  Expanded access to markets  Advanced technology  Quicker product development  Broader geographic range The goal is finding a partner in areas where one or the other company has limited expertise. In a successful alliance, partners gain access to specific strengths -- such as sales, technology, finance, distribution, etc. -- that they do not possess themselves. Another driving force behind alliance-building is the desire to control the quality and performance of the entire production process, from raw materials to system design, from manufacturing to global distribution. Sharing Benefits and Risks The synergy generated by two cooperating organisations results in a sum greater than their parts. A successful alliance preserves each business' distinct competitive advantage and allows those advantages and core competencies to grow. Benefits of partnering also include economies of scale, resulting in:  Increased versatility  Reduced costs through increased production  Enhanced purchasing and financial arrangements  Stronger negotiating position with suppliers, customers and/or regulatory agencies  Greater access to critical resources  Opportunities for large-scale marketing efforts For the unprepared or uninitiated, a strategic alliance can be a minefield. Two of the most pervasive myths about partnering are: 1. "Alliances are easy to pull off." The process of alliance screening, assessment, negotiation, implementation and maintenance is anything but easy. To succeed, an alliance requires deep, organisation-wide commitment from all involved.
  • 40. 40 CAVENDISH 2. "Alliances are for everyone." In fact, the opposite is true. A partnership between organisations with radically different goals or cultures will most likely fail. CEOs and other alliance-builders should ask these questions of themselves and their potential partners:  What do we expect the alliance to achieve over a long period of time?  What effect will the alliance have on each partner's long-term competitiveness?  How will the staff of each company react? What about other stakeholders, such as investors, suppliers, customers, etc.?  Are we giving up too much proprietary information and too many processes?  What level of trust is necessary for the alliance to succeed and how much can we reasonably expect from our partner? The Path to Competitive Advantage Like any other business venture, a strategic alliance is driven by enlightened self-interest. The best partnerships are pragmatic enterprises that provide the resources, expertise and positioning each partner can not achieve on its own. When it comes to identifying a potential partner, a company's vision plays an integral role. Your company's vision should be inextricably linked to the selection process. What major competencies do you need in order to fulfil your goal of being the best in your industry? As you brainstorm your answers, you will identify specific areas and elements. This will help narrow the choices to two or three key partner candidates. Of course, in the rush to forge a partnership, remember that potential partners need a reason to welcome you into the alliance. Before approaching another business, make sure you have all of your own ducks in a row:  Articulate the competitive values you bring to the table (i.e., technical expertise, knowledge of and access to a niche market, etc.)  Offer a solution to a highly visible business problem  Bring a core competency to the partnership lacking in the other organisation Finding the Perfect Match As part of the alliance-building process, answer these fundamental questions to better understand your current and projected strategic position:  What industry factors (capital, technology, human resources, and natural resources) have the greatest impact on your business today?  What competitive conditions are influencing your suppliers? Your customers?  Are industry newcomers and/or potential substitutes vying for your products and services?
  • 41. 41 CAVENDISH Seek out a partner whose current and potential development resources fit well with your company's own resources. Look for:  Production capacity  Financial resources  Technological expertise  Distribution network  Warehouse facilities  Raw material supplies Other good partner possibilities include suppliers of products, services or specialised technology, particularly suppliers you're currently working with or those you've worked with in the past. Other helpful venues for the partner search include trade shows and conferences; chambers of commerce; trade associations; and industry research institutes that regularly explore the marketplace for new products, technologies and potential partners. Closing the Deal After the partner screening and selection process is complete, the real work of negotiation begins. But while the alliance must be endorsed and supported at both organisations' highest levels, neither company's CEO should be included in actual negotiations. This preserves the option by which the CEO can serve as a "court of appeals" in case of a serious snag in discussions. Also, it eliminates the possibility of loss of face by either side. Also, lawyers should not be present during the first round of negotiations. The spirit and intent of the alliance guides the process. The legal nature of the relationship needs to be more of a safety net. Getting each partner's expectations in written form is an important part of alliance negotiations. These expectations can grow out of in-depth discussion on the following:  Mutual levels of commitment  Organizational structures that fit alliance strategy  Clearly defined alliance benchmarks  Investment and compensation rewards tied to performance measures  A formula for tracking assets and capabilities A non-binding letter of intent is the minimum to expect from early rounds of negotiations. This helps isolate elements that potential partners find unacceptable. On the positive side, it helps seal a commitment on both sides to complete a mutually satisfactory agreement by a specified date.
  • 42. 42 CAVENDISH From Competition to Collaboration Broad-based best practices for alliance implementation and integration include:  Designing a structure that meets the needs of the alliance, not the needs of the individual partners  Appointing high-performing managers to implement the alliance and linking results to pay and investment incentives  Connecting strategic objectives to budgets and resources, with a built-in review process  Defining exit obligations, divorce procedures and penalties. The alliance structure should be agreed upon beforehand, rather than when the time comes to implement. The principals must agree on a shared working vision. Identify key areas of cooperation, and then assign respective team members to draft areas of agreement. As partners advance through alliance implementation, these practices can be used as guidelines:  Appoint an "alliance manager" whose role and responsibilities are defined by specific alliance goals.  Organise timetables, design measurement tools and conduct periodic reviews.  Track how competitors respond to the alliance.  Use open communication to resolve issues rather than turning only to the original alliance agreement for guidance. Governance isn't easy, nor can it be standardised. When it comes to overseeing the alliance, companies must be flexible and innovative. Effective governance incorporates a custom-designed system and set of measurements that are consistent with the alliance's founding vision. Partnering for Success Well-positioned "alliance champions" are crucial to success. An alliance champion believes deeply in the enterprise and focuses on its acceptance and implementation. Champions who can be senior executives, members of the negotiating team, etc, are the ones who steer the alliance through the bureaucracies of the parent corporations. They have the credibility to defend its merits and actions. By extension, teamwork is the backbone of an effective alliance. Whether through steering committees, operating teams or a group of task forces, partner teamwork depends on cross- functional "fertilization" generated by star performers from both organisations. Creating an Alliance Culture Prospering alliances encourage a high degree of cultural adaptability in their ranks. For the right "fit" to evolve, corporate cultures on both sides have to find common ground and nurture a spirit of collaborative activity. Getting to know your partner involves learning about their internal workings and seeing how they respond to external events. Of course, the reverse also is true: during the "getting to know you" phase, your own internal and external operations will come under similar friendly scrutiny.
  • 43. 43 CAVENDISH Most important, is trust. Partners in an alliance remain separate entities guided by their own interests; but they must agree to coordinate their actions and willingly participate in joint decision making. They have to learn to not engage in traditionally opportunistic behaviour, seeking short-term advantage for themselves alone. Instead, they should do everything possible to maintain an alliance relationship that yields long-term results. To build trust between partners:  Start with small, simple operations that enable each partner to experience the other's reliability.  Be clear about what information can be disclosed and what cannot.  Look at your own behaviour from the other's point of view. Get your partner's feedback on your own strengths and weaknesses, and on how to improve the relationship. Beware of "large company vs. small company" minefields. Frequently, the cultures of dissimilarly sized companies can generate conflicts and misunderstanding. To avoid this pitfall, I advise the following:  Share all relevant information and minimise conflicting objectives.  Agree on a shared vision, common goals and partnering strategy.  Agree on key performance indicators and jointly measure performance.  Assign a partnering/alliance manager and clarify the role.  Involve and inform those who have to make the alliance work at the operational level.  Gain and maintain executive level support. What Gets Measured, Gets Done For the alliance to succeed, partner companies must design concrete measures of governance effectiveness. But because each alliance is a unique entity, this performance should be measured against specific, customised standards. Useful performance measures include:  Revenue share  Return on investment  Contribution to fixed costs  Return on sales  Level of market penetration  Speedy response to customer needs  Cost savings  Improved access to markets
  • 44. 44 CAVENDISH Other "soft" indicators are customer satisfaction and loyalty, continuous improvement and referred business are equally important. They are sometimes the most accurate gauge of alliance effectiveness. Business Strategy for World-Class Organisations Partnering is a logical response to the globalisation of markets, increasingly intense competition, the need for faster innovation and the growing complexity of technology. It makes good business sense to connect people, departments, companies, customers and suppliers. When negotiated, implemented and monitored correctly, a thriving strategic alliance meets each member's objectives by offering the scale, skills and positioning needed to succeed in a global marketplace. "Let us not be content to wait and see what will happen, but give us the determination to make the right things happen." Peter Marshall
  • 45. 45 CAVENDISH The Forms (Document) Industry Past, Present and Future OVERVIEW Colin Thompson takes a hard look at the structure of the UK Business Forms Industry over the last 38 years and what I believe will happen in the next 10 years which will change dramatically, due to technology, the environment and business practices. The Business Forms Industry in the UK Since the early part of the 1970`s the industry was controlled mainly by Direct Sell Manufacturers which accounted for 99% of the market place. By 1975 the industry was controlled by a group of 40 companies, who together accounted for 90% of the market place and 10% by Forms Brokers. By the latter part of the 1970`s with the invention of the Personal Computer by Stephen Job of the Apple Corporation hit our shores, the Business Forms Industry has progressed rapidly. Since 1980 due the Personal Computer being made available this has meant more companies had been able to computerise their businesses and also the large corporations with their main frames had been able to add PC`s which increased the use of forms. Through the 1980`s we have seen a change in the market place whereby the Direct Sell Manufacturers controlled some 75% of the market place between 1980 to 1985 and by 2005 the split of 40% Direct Sell Manufacturers and 60% Forms Distributors (Print Management Service Organisations). In the middle of the 1980`s there was an abundant number of Distributors entering the industry, most of these being ex-Sales personnel of large Direct Sell Manufacturers and some of the larger Distributors (Brokers), and in May 1988 when the interest rates were at 7.5%, high investment took place in new machinery. Unfortunately, by May 1989, the interest rates had doubled to 15%, which was the start of the decline in the Business Forms Industry from the Manufacturers/Distributors point of view. Also, coupled with a recession, there was the situation where there was an over capacity of machinery, too many Distributors (Brokers), a depressed gross margin and a far more educated buyer which caused the industry at this point in time to be in the worst position. Through the 1990`s, the rapid changes in the market conditions are attributable to technology, not the least of which is the phenomenal growth of the Micro Computer and Colour Laser market. Tied to these systems is the explosive growth in the use of Electronic Messaging and the Electronic Exchange of business transactions, which include Electronic Forms (Documents). Computer related technologies have also created a trend of A4 Cut Sheet products, which are projected to grow at a compound annual rate of 25%. Direct Sell Manufacturers/Trade Manufacturers had recognised these trends and have adjusted equipment, procedures, and business relations to ensure profitable (for some), timely fulfilment of the A4 Cut Sheet and small orders for the PC market. Maturing Industry In the introductory stage of an industry (1970), Direct Sell Manufacturers played a strong role in the growth and early maturity stages. The Distributor assumes product distribution for the Trade Manufacturer with little interference. However, from the mature stage of an industry life cycle onwards, channel conflicts arise, new channels appear severe price competition occurs and margins erode.
  • 46. 46 CAVENDISH At the end of 1989 and through the 1990`s into the 21 st century the course of action was for the Trade Manufacturers and Distributors (Brokers) to work more closely together, and make investments in each other. This to develop a new business philosophy of customer orientated services and to build the strength of the marketing bridge from the end user to the Distributor (Broker) and on through to the Trade Manufacturers. The Direct Sell Manufacturers were making heavy losses and most have been sold to other companies, who are large groups, who offer a Print Management Service not dissimilar to the Distributors (Brokers). The trend of large Direct Sell Manufacturers has been to sell or close down. Also, the one’s that survive that service have extended their distribution arm using Trade Manufacturers for some of their product lines. Therefore, the trend as I see it for the future will be the Trade Manufacturers/Distributors and Direct Sell Manufacturers partnering their ideas to further the industry in to the 21st century to survive. The Growth of Laser Printing The high speed Laser Printer for day to day output has grown dramatically, and a significant growth in installations has come from XEROX, OCE`, IBM machines which use A4 Cut Sheet plus A3 Continuous. The main danger of the A4 Cut Sheet from the supplier point of view is that it can be supplied plain, quite adequately by Paper Merchants selling direct to the end user of all the high speed lasers and digital in place, I believe some 85% of these are sheet fed. The biggest threat to the Business Forms Manufacturers is Colour Lasers, bearing in mind that their price is reducing considerably, coupled with the pricing structure of personal computers, the price of lasers and personal computers are affordable by most domestic households. Therefore, like the car phone, or let me say, the mobile phone today, PC`s and Lasers have become common place, plus the Internet and the www. not only in business but also in the home. From February 2000, using digital Television, all will all be able to use the Internet, have their our own website, and also send and pay bills electronically on using standard electronic forms. Changes in Competition Dissolve Old Boundaries Today’s landscape would be almost unrecognisable for many industry pioneers. The traditional boundaries are disappearing rapidly in the Forms (Document) Management industry. Gone are the days when companies could be neatly categorised as Distributors or Manufacturers, when the competition could be pinpointed as either a major Direct Selling Company (a GROUP of Specialist Companies) or another Independent Forms company selling solutions know as a Print (Document) Management Service, when the enemy was simply the enemy and not a potential partner. Competition has expanded to include Commercial Printers, Service Bureau’s, Mail Houses, Machinery Manufacturers and other companies that were foreigners to the `Business Forms ` Industry. The quest to consolidate the industry is being led by very large corporations in the UK and overseas. Adapting to this challenging and changing environment, companies are tossing aside many former taboos. Companies are buying from and selling to the Direct Manufacturers and visa versa, aggressively seeking partnerships with competitors and looking for alliances with companies on the industry periphery. More Distributors are asking Trade/and Direct Manufacturers to take active roles with end user accounts instead of hovering in the backgrounds as invisible partner’s hover. Is there a pure Distributor or Trade Manufacturer or Direct Sell Manufacturer? I am sure it makes no difference, it is all about survival. I believe despite the challenges posted by consolidation, new competition, technology and increased customer demands, don’t sense a doom-and-gloom mentality from many industry peers. We must uncover new opportunities for success. You do not obtain business with just technology; you do business with people. In the digital age, the human involvement is even more important, only those who truly understand and anticipate customer requirements will prosper. The fuel for expansion is growth of Print on Demand, Distribution and Print, and Variable Data Printing and the ability to design attractive Documents. The key to success is the realisation that technology does equate with success. Therefore, Document Management (Solution Marketing) is the key to strengthen the market. Partnerships and alliances give extra clout!
  • 47. 47 CAVENDISH Effective partnering in the Business Forms (Documents) Industry The partnering of innovating new design and product starts from the Document Management Service Company’s as well as the Manufacturer Direct and Trade to the client. There must be more partnering of ideas and arrangements so that `ALL` partners concerned make a profit margin. They desire to invest in the company for the future expansion and future new services. It takes time to build a good foundation for a partnership that works because effective partnering arrangements must be earned not merely declared. In addition to the maturity of the Business Forms (Document) market, several technologies and online order entry with viewing of forms (documents) libraries are merging or interfacing with each other to augment the success of those who employ them. As applications for those technologies continue to grow, the procedures required to implement these automated information systems will demand close working ties to business partners. The day is here, when major clients will require Distributors (Document Management Service Company) to either come on line with their system or inform them they need to implement technology to communicate with their ordering system. A sophisticated computer system to all customers and suppliers of all products and services. This is the way forward for success. Environment Papers Of all the articles we have seen over a period of time, also the activity of Paper Mills, the paper industry world-wide is engaging long term efforts to ensure that manufacturing processes are not harmful to the environment. The main concerns here are in terms of effluent control, energy conservation, and recycling and ozone layer protection. Technology-The Trends in Hardware and Software As expected, the price of computers especially PC`s have become extremely attractive resulting in a growing number of first time users, there is the predication that by the year 2010 in the UK, there will be 60 Million PC`s in operation, and if we look at the trend since 1984 (1 million PC`s) to the year 2000 that is a 1900% increase. I believe that the figure is staggering, but the future will be only one screen for `ALL` PC + TV = ONE! (Digital). When it comes to the use of Printers (colour Digital/Lasers) in the office and home in association with computers, we expect to see a dramatic decline in the number used with large scale computers, but a dramatic increase in use associated with small systems and personal computers. In fact, I believe the changes in office printer population will be even higher than the increase in PC`s and that is based mainly on end user estimates of future requirements. Business and marketing implications for Forms (Documents) producers Comparing the financial results of companies over the last ten years, it appears that to be successful in the Business Forms (Document) industry today, one needs to be offering a Document (Print) (Forms) Management Service as a specialist to be successful. To survive in this business market place, you have to be strong financially and also use marketing techniques and the partnering of ideas between Trade and Direct Sell Manufacturers and Document Management Service Specialists marketing Solutions to the customer. Unfortunately, the margins that were available some 10 to 15 years ago will never arrive again, coupled with the fact that Business Forms (Documents) buyers from the end user point of view are more educated and therefore more cute on buying competitively. Therefore, until there is shrinkage in the number of Business Forms/Document Manufacturers and Distributors there will be continual erosion of the margin. The future is the consolidation of the industry. To be successful, you listen to the client’s strategy and then advise them with the solution to be successful; this will be by communication and unifying a Documentation Blueprint. To focus on the documents and electronic information that customers and staff need to conduct their business. The simplified communications that are developed to make business documents easier to understand and use. They also act as a catalyst for organisation and technology changes that result in significant cost efficiencies. Use the Internet to provide real-time access to status of jobs, what inventory is in stock plus all information that the end user requires.
  • 48. 48 CAVENDISH This type of information WINS new clients and KEEPS your present customers. Also, develop an interactive website to market your capabilities and inform all your customers on news items and visa versa. Communication is the key for the future, either by person and technology changes. There is a daily infusion of new technology, new competition, new ideas and new solutions. The opportunity is to play an active part in the changes for the future. But, always communicate personally with your customer, on advising them on new technology, new designs, new ideas and ways of reducing the cost burden of operating their business without reducing quality standards. Do not be scared of change; make your business more exciting with your customer. "It is literally true that you can succeed best and quickest by helping others to succeed" Napoleon Hill
  • 49. 49 CAVENDISH `The Content Management System` Industry Must Control Its Cost to increase the `bottom-line`. The pressure is on to stay successful, so read on and see how! Wake up to, today’s economic downturn cuts deeper into `Information Technology` budgets, CIO’s often have to justify investment initiatives like a `Content Management System`. While it may be somewhat challenging to put a price on information architecture, having the ability to quickly publish multilingual content, or being able to rapidly and accurately keep your web properties on an up-to-date level are important tangibles that contribute to a `return on investment`. It has also been proven in studies that once returns or gains are seen from the use of a CMS that shareholder value can be greatly increased. Companies and organisations today should be spending 75% of their content-related budgets on content management, and 25% on content creation. Unfortunately however, the opposite is usually the case. Content contributors often experience numerous time-drains such as: writing HTML, converting to ASP or XML, changing out images, talking to the Web shop, and generally making sure everything works. Far too much money is lost this way. Their time would spend vastly better if a `talented staff` could spend their time working on developing content and marketing to their audience. Automating tasks and separating data from display can create efficiency. Having speedy approvals, eliminating technologists or IT staff from the site update process, creating content only once and publishing many times, are all immensely measurable cost-savers. According to research conducted by the UK firm Dynamic Markets, 40% of companies would require one person for up to three months full-time to structurally alter a single web site. Another 40% were unsure about the scale of the task that is required to develop the site content and keep it consistent. At least 20% suggested the assignment would be anything between four month’s work and a full-time job. Ironically only 21% of companies automated their web site changes or implemented various technologies to replicate corporate changes at a local level. Having a comprehensive, web-based customer support system will often result in rapid and tangible changes. With many companies paying in excess of £8/call and £6/e-mail, serving just 10 customers a day via the web site—rather than engaging a support person, live—can cover much of the cost of implementing a system. One can multiply these savings for multi-lingual call centres. There are also situations that arise in which a CMS will provide huge savings. For example, collecting on an insurance policy. Even if such an event should occur but once during a systems lifetime, once is enough. What if your company was to confront a lawsuit, and you need to rapidly re-construct what your web sites said on a given day? A strong CMS will cover your liability. Another possibility that now concerns many companies is disaster recovery. In the post-9/11 era, the expensive question becomes can you re-publish your web site (s) to another server in a matter of moments, or will it take a while? Once again, a strong CMS will make sure this happens. In order to calculate the savings and projected costs of implementing a CMS, a company must first add up the hard currency they will see in:  · Increased sales  · Accelerated time to market  · Process efficiencies  · Reduced web production costs  · Reduced human errors
  • 50. 50 CAVENDISH A simple mathematical equation can calculate a `Return on Investment` for implementing a Content Management System. Return on Investment (ROI) = (costs saved from system use) – (cost of installing a system + cost of maintaining a system). Divide by time, to get the time to ROI. For example, if an organisation can save £10,000/month from using a system and the system costs £40,000 to install and train staff, and £4,000 a month to manage and support, a one-year calculation looks like this: (£10,000 x 12) – (£40,000) + (£4,000 x 12) = £32,000 returned from investment in one year. To calculate speed of return (in other words, "how long does it take this system to pay for itself?"), calculate the percentage of the year required to "pay off the system" and multiply it by 12 months. In this case: (£88,000/£120,000) x 12 months = 8.8 months, until the system paid for itself What if this company selected a mid-range solution with higher implementation costs (say, £180,000 for software and licensing)? The system will still pay for itself financially in about two years. The truth of the matter is simple—the `Return on Investment` will easily justify implementing a `Content Management System`. ROI is measured in actual, hard currency, tangible, calculable cost and time saving for a business or organisation. When presented with these factors, a CMS is not only feasible, it is advisable. Other examples of `Return on Investment` COST SAVINGS PROJECTIONS Use the table below to calculate your projected savings: Total Projected Savings £1,600,000 Computational Line Items Values & Parameters Notes & Comments Number of Employees. 1,000 Enter number of employees at your facility. Average number of filing (in inches) maintained by each employee. 125 Total number (in inches) of files to be considered. 125,000 Average number of documents (in inches) filed per cabinet. 100 Total number of cabinets required storing all files. 1,250
  • 51. 51 CAVENDISHSquare feet per cabinet. 10 Total square feet required storing all files. 12,500 Estimated reduction percent. 80% Low - 33% , High - 80% Number of cabinets eliminated. 1,000 Number of square feet eliminated. 10,000 Pounds cost per square foot. £25 Cost Savings (of saved space) £250,000 Cabinets maintained per person 25 Reduction in Staff (for eliminated cabinets) 40 Salary per person £30,000 Salary Savings £1,200,000 Total Cartons Maintained 100,000 Enter number of cartons archived at your facility. Percent Reduction 50% Reduced cartons 50,000 Storage Costs per year per carton £3 Reduced cartons savings £150,000 Cost Justification For one to calculate cost savings on a document and records management project, it is important to look at both hard and soft savings. To simply view one without the other causes a one-sided justification, thereby prohibiting a total overview of the whole savings strategy. Identifying the objective, that senior management expects, will be the guideline in determining how to best present benefits and savings. Identify all areas having potential benefits and demonstrate those benefits. This is what should formulate a Mission Statement. In basic problem solving, however, all the aspects of the problem need a broadened view. One of the tasks involved then would be to include an evaluation of the risks involved in addressing only partial elements of the problem. To do this, know what to look for in developing the business case. Some content elements to look for are:
  • 52. 52 CAVENDISH  Locating and sharing files  Tracking  Storage  Productivity  Disaster Recovery Planning Some productivity elements to look for are:  A means to classify by subject (how everyone looks for information)  Controlling all media seamlessly  Integrating various systems and office suites  Ability to view documents easily  Ease of launching applications There are certain aspects that need to be identified. These include:  The business process  Scope  Tactical vs. strategic timing Some of the typical challenges preparing the business case are:  Controlling document creation and maintenance  Grouping like documents together  User training Do not miss identifying document redundancies, identifying the types of documents on different media, and locating vital records. These all have potential benefits that, when the solution is calculated, should show potential cost savings. The hard savings calculations would include:  Reducing cost of equipment, such as filing cabinets  Reducing cost of supplies, such as paper by reducing paper files printed and stored  Reducing cost of labour to service the filing of paper in cabinets, and in the search and retrieval of information Soft savings calculations would consist of:  Floor space saved by the reduction of file cabinets needed to store documents  Time saved by reduction of filing information  Productivity increased with an effective storage and retrieval system that contains an efficient search technology The risk in not having a records management system that controls records in accordance with legal compliance is an information liability and will manifest itself if there is a litigation or audit. Therefore, complete retention policy management is also a savings benefit.
  • 53. 53 CAVENDISH Even though reducing operating costs and improving access to records are the expected benefits; one must show substantial, additional benefits by exhibiting the whole picture. In this way, management can digest the fact that there are only two costs involved: The cost of preventing risk and the cost of experiencing the risk. A Print Management Service Programme operates on behalf of their customer the best system to reduce direct and indirect costs at all times. A excellent publication is `Print/Forms Management Guide` plus many more from www.cavendish-mr.org.uk Also, the specialist association for Print/Document Management organisations is the Independent Print Industries Association www.ipia.org.uk and the Institute of Paper, Printing and Publishing www.ip3.org.uk, Consultants Division will help you in reducing operating costs and improving your efficiency to raise the `bottom- line`. Also, a comprehensive and powerful business model has been created specifically for Industry` by experienced and skilled people called the `Enterprise Business Model`. This model will bring `saving` on day one and will share with you many ways to increase the `bottom-line`. A most powerful investment that pays for itself from the savings you make immediately it is implemented in your organisation. Comprehensive details from www.cavendish-mr.org.uk The model, correctly applied will provide the opportunity to increase the `bottom-line` performance on existing levels of sales. It is equally applicable to all sizes of companies (owner managed businesses to large group companies) no matter what location, range of products produced or the process employed. This powerful model will address information collection and analyse the key areas of strategy, production, finance and sales – all based on the principles of `Business Excellence`. Once having gained and analysed the information the model then provides detailed guidance on how to manage the necessary change management processes to ensure successful implementation. "The most expensive document is the document that is not where it is needed at the time it is needed. Delayed paperwork, lack of current information, makeshift records, frayed tempers - all add up to unnecessary costs and operational foul-ups." Frank M. Knox
  • 54. 54 CAVENDISH Leading Change to Today’s Organisation Guidelines for Success What do we actually mean by “change”? The word has become commonplace in organisational language, but it means different things to different people, and depends hugely on the perception of the person in question. To someone who has never been involved in change, a minor shift in work pattern may seem like the end of the world; but to an experienced and enlightened change champion, even large changes can seem like routine events. In change situations, perception and attitude are everything. It is critical to address the so-called “soft issues”, as they are really the hard issues when it comes to successful change. The biggest single part of this is involvement – taking the time and effort to discuss why change may be needed, the overall environment and strategic position that is driving such change, and to give people the opportunity to discuss and share their views. To a large degree, preparation is everything in change situations; there is no substitute for developing and maintaining an environment and approach that will enable change to take place effectively. That means people involvement, effective and consistent communication and taking the time to explain the situation – even if not everyone likes the changes being proposed. As a starting point 3 questions have to be answered that underpin the change process: 1) Where are we now? 2) Where do we want to be? 3) How are we going to get there? Answering these questions provides the basic scope that lays out the case for change, the benefits to be gained and a basic risk assessment that addresses the major unknowns. An assessment of stakeholder perception is critical. This process defines all the stakeholders in the change process, and establishes their position and attitude with regard to the potential change. Without this there is no effective starting point to assess how significant the change is perceived – you may think one thing, but others may feel very differently! This guide uses a simple 6-step process for effective change: 1) Establish a clear direction – a compelling case for change, involving employees in the discussion 2) Create clear ownership and leadership 3) Communicate the case for change and progress early and often 4) Create and maintain a workable change plan 5) Empower broad-based action - maintain and measure progress 6) Anchor new approaches Effective leadership is critical during change, at every one of the 6 stages listed above. Leadership during change cannot be overstated – it is pivotal to success. But this means much more than “leading from the front” – it means personal involvement and engagement with the “soft issues”, involving people at each stage both to discuss changes and to get feedback about not only how people feel but also how to improve the overall chance of success.
  • 55. 55 CAVENDISH The very best change programmes will strike the right balance between quality leadership (employees look to leaders for guidance during change situations) and employee involvement. This is sometimes stated as leaders setting the framework for change (“top down”) with employees helping to establish both workable detail and effective implementation (“bottom up”). Why does change so often fail to capture the intended results?  Lack of a compelling case – often far too little effort is put into developing the “case for change”, particularly the effective involvement of employees  Failing to understand what change really is – far too often change is still seen as a “single event”, effectively moving from one steady state condition to another. But this is rarely the reality today; change is nearly always a journey, and it can take several iterations to get to the right structure / alignment  Failing to engage with employees – although the vision and case for change are normally developed by senior managers, involvement of employees or groups of employees is vital to effective implementation and also solutions that will actually work! An effective balance between “top-down” and “bottom-up” is critical  Ineffective implementation – so often implementation is seen, erroneously, as the “easy part”. However in reality it is the most difficult part to get right. The real test of implementation is how robust the organisation is to deal with the challenges and to re- adjust as necessary – flexibility is critical Introduction This successful guide has been developed to meet the specific needs of change in organisations, particularly with regard to consistent guidance around leading and managing change. It is not a comprehensive review of the subject, and nor does it aim to compete with the many good books written on the subject. Experience and skills are used to share with you. It is a reference guide that can help build understanding with regard to the many complex issues involved. It is a working document, built for regular use - a day-to-day road map. We need to start with a basic understanding - what does change actually mean in an institutional context? The word “change” has become commonly used in recent years, but the first challenge is that it means different things to different people, and depends hugely on the perception of the person in question. In some instances it is used to signify a single event, a move from one state to a new state, and is conducted with relative ease and minimal disruption. But more commonly it is used to mean a major shift in the organisation affecting both people and processes, and taking weeks or months to complete. This brings us to the first key point – balancing the significance of the change and its potential impact with the way it is perceived by the people involved. How people see change depends entirely on their past experience and degree of flexibility and adaptability. To someone who has never been involved in change, a minor shift in work pattern may seem like the end of the world; but to an experienced and enlightened change champion, even large changes can seem like routine events. In change situations, perception and attitude are everything. We shall see later how important it is to address the so-called “soft issues”, as they are really the hard issues when it comes to successful change.
  • 56. 56 CAVENDISH Equally important is the need to make a distinction between organisational change and running the business effectively. Some business decisions need to be made as a routine part of “running the business” and ensuring sustainability. Such events often need to be dealt with quickly, and employee involvement can follow. (You will get no thanks for letting the business fail because you felt it was necessary to wait 6 months to gather the opinions of every employee!) So what does all this mean for someone leading change? For a start, if you are a manager in any kind of organisation, the likelihood is that you will implement change at some point – and probably quickly. Much recent leading edge writing thinking about the role of leaders tends to agree that leading change is in effect the same thing as leading – i.e. leadership without effective change management skills is becoming ineffective as a core skill. Not only that, but the ability to understand, believe in and role model effective leadership behaviours is crucial. During change situations people will only really believe and buy into what credible leaders tell them – and the reality is that many people in lead positions are not able to do this effectively? Why is this? It is simply because they have not put in the effort to develop their own leadership capability, particularly around key leadership behaviours. The values that an organisation adheres to in support of its mission and vision, and the leadership behaviours that evolve from them simply have to be evident and visible if effective and lasting change is going to take place. Against this backdrop it is hardly surprising that “leading change” has been identified by the RGU Executive Group as a key organisational capability for all managers and one where significant development effort will need to be focused. This guide does not go into detail about the legislative aspects of change – in particular regarding situations where changes in employment status may occur. This information is available from your HR Client Partner. It is critical that, in any change situation, the HR Client Partner is involved as early as possible in the process. Not only does this ensure the most effective advice and collective forward planning, but it also allows early planning for any legislative aspects of potential change situations. Setting the context What do we mean by change? Looking at some dimensions will help:  In the 1990’s, nearly 50% of all UK and USA organisations were restructured  In the 2000 – 2010 decade, it is predicted that:  Working from home will increase 20-fold  30% of all knowledge will become obsolete  Dual career families will make up over 70% of all families What are the main sources of change?  Societal / behavioural – e.g. life-style changes  Technical  Economic So change comes from a variety of sources, and affects us all. People may tend to think of change, as something that only affects them at work, but the reality is very different – just look at the life-style and economic changes that have affected everyone over the past 30 years. Change is here to stay – and it going to affect us all. If we look back rationally at the last 100 years, this should be no surprise of course, but its how we see change at a personal level that really matters, and maybe more importantly how “in control” we feel.
  • 57. 57 CAVENDISH When asked, over 80% of people will generally see change as a good thing, but this drops to 20% or less when it gets personal, and looks like it might in any way adversely affect someone, even if it won’t! In change situations, perception and reality definitely are not the same things! The paradox of change There is a major paradox about change, and it is that the best change programmes are successful because they do things in a way that most people wouldn’t define as “change” at all! In the words of Glenn Tilton, CEO of UAL (United Airlines) “At least 70% of major corporate changes fail to capture the benefits ascribed to them. A big factor is that the soft issues are not understood to truly be the hard issues. Not enough attention is dedicated to the hearts and minds of the people in the organizations” And to quote William Bridges (from Managing Transitions): “It isn’t the changes that do you in, it’s the transition” These two quotes are effectively saying the same thing – change is not really about the structural changes that are made to organisations, but about the way that people are guided and treated during the change process. But this is itself a challenge if the enduring culture within the organisation is not aligned to good people management in the first place! No wonder, then, that it is so often said that effective change is 20% structural change and 80% good people management. Success is not assured A very high percentage (roughly 75%) of change programmes fail to meet their objectives. For quality management initiatives it’s even worse – something like 80% don’t meet initial expectations. This provides a very rich source of information about how not to do it, and there is a growing sense of organisations wanting to learn from best practice in order to minimise the chance of failure. What does best practice and the lessons of so many failures tell us? The key success factors are:  A compelling vision of why change is needed  Effective and consistent communication  Adequate preparation and conditioning  A thorough and lasting implementation process that deals effectively with peoples’ concerns and needs as they adapt to the new situation The rest of this guide is focused on what best practice looks like, and how it can be applied effectively. The human dimension Why do people react to change the way they do? On the face of it, with so much change occurring and having so much impact on so many people, it might be logical to assume that people are generally getting more used to “change as normal”. Unfortunately logic and reality are far apart, as we shall see.
  • 58. 58 CAVENDISH Firstly let’s look at why people tend to shy away from change – often to ignore what to others might seem obvious. Most people, when confronted with a situation that challenges their deeply held inner beliefs, tend to “rationalise away” the new information in order to maintain their existing view of things. This is often stated as “rationalising away” versus “being fully rational”. Technically this is known as “cognitive dissonance reduction, and is a well-documented psychological phenomenon. Even in situations where the need to change is fairly clear and obvious, and may start to affect a persons ability to function effectively, people often still rationalise away the new information. This phenomenon is probably best demonstrated in Spencer Johnson’s excellent book “Who Moved My Cheese”? This is a light-hearted book but with a very significant message for today’s fast-changing world. Fritz Roethlisberger Why do people do this? Psychologist Fritz Roethlisberger developed a theory that each change situation is interpreted by each individual according to their attitude. He developed this into a diagram known as Roethlisberger’s X chart: CHANGE RESPONSE ATTITUDE PERSONAL HISTORY SOCIAL SITUATION In effect our attitude to change and the response we make is heavily influenced by the way we “see” the situation – in effect the “psychological advantage” (or not) within any given situation. Generally speaking the principle factors that cause resistance to change are:  Loss of security or status  Inconvenience  Distrust or uncertainty  Cognitive Dissonance Reduction (as explained above) – in effect rationalising the “new reality” of the situation away and sticking to “firmly held” (but quite possibly seriously flawed and outdated) beliefs Consequently anything we can do to reduce the level of uncertainty and to dispel rumours that have no foundation will help to reduce resistance to change. Kurt Lewin Social psychologist Kurt Lewin likened the process of change as going from one steady state to another. He recognised that change, whenever conducted too quickly and without due regard to the people involved, tends to “shatter the equilibrium” and lead to (almost inevitable) resistance. He proposed an ideal 3-stage process:  Unfreezing old attitudes  Introducing the change  Re-freezing attitudes around the new approach
  • 59. 59 CAVENDISH “Unfreezing” is the process of preparing for change, which may involve:  Greater dialog with employees  Leadership guidance on the reasons for change  A simple, compelling case as to why change is needed  Why the “status quo” is not a satisfactory situation, longer term In essence it is about helping as many people as possible to understand the realities of the situation and the need for change, even if people don’t like the possible implications for them personally. Once the organisation understands the need for change, then the changes can begin – but this does not mean that all resistance ceases. During the period of change people in the organisation will watch key leaders for signals, and also look for information about “what is in it for me”. The key to success is for management to be open, honest, and candid, never attempting to hide bad news. For many managers there is a natural reluctance to be open and honest – often because they fear the reaction of employees. But the overwhelming evidence from case studies is that the situation is much worse when information is withheld, versus releasing information in a timely manner. “Re-freezing” is the process by which the “new way” becomes regular behaviour and practice. However this can never happen by simply telling people to change. The only effective way is leading by example, with supervisors playing their part to create an environment that constantly and openly reinforces the new behaviours and hence the desired change. “I wouldn’t start from here”... One of the more unfortunate realities of management is that when the need for change becomes apparent, the organisation is often not in the best state to accept it. This can be characterised by the statement...”if I was going to change things, ideally I wouldn’t start from here”! This is the real paradox of change; it really isn’t about organisational diagrams and structures. It’s about how people are managed, how well informed they are, and how well they understand and support the longer-term vision and “compelling case for change” within the organisation. But this simply doesn’t happen overnight; it is a process that takes years to do well. The real “breakthrough thinking” around change tends to occur when the so-called soft issues are recognised as the real change issues. In effect this is saying that there are two paths open to anyone conducting change: Path 1 – overly focused on results and short term benefits, and generally failing to recognise the human dimension and team development need Path 2 – focused much more on how the people in the team are going to achieve the results expected, and how they need to be managed and developed to achieve that Many businesses, driven by a desire to meet short-term financial objectives, tend to choose path 1 by default. But overwhelmingly senior leaders are recognising now that path 2 is the only way to ensure sustainable and longer lasting change. An effective change management process So far we have seen that change is much more about people than process, and lasting change has a lot to do with good leadership and people management skills.
  • 60. 60 CAVENDISH So what does an effective change management process look like, and how is it implemented? The following 6-step framework is a good basis to start from for any organisational change programme, regardless of size or impact. The starting point is the recognition that a change programme has to be defined well enough and have outcomes clear enough and valuable enough to make it worthwhile doing at all. (This may seem intuitively obvious, but its one of the main reasons why so many change programmes fail to achieve their expected targets). In effect we have to answer 3 questions that underpin the change process: 1) Where are we now? 2) Where do we want to be? 3) How are we going to get there? Answering these questions will provide the basic scope – a short document that lays out the case for change, the benefits to be gained and a basic risk assessment that addresses the major unknowns. This then provides the starting point for the project management process that is needed as an “umbrella” or overarching process inside which the change process fits. (This book does not go into the details of the project management process, other than where it overlaps directly with the change process. It is assumed that such a multi-stage process for managing projects is available for use). Secondly, an assessment of stakeholder perception is necessary. This process simply defines all the stakeholders in the change process, and establishes what their “position” is with regard to the potential change. This covers how they see it, how they might react, and any alternative positions they may hold. Finally it addresses how positive or otherwise they may be to the overall change agenda. A degree of data collection through focus groups and informal meetings is likely to be needed to establish the true stakeholder positions. Stakeholder analysis is essential at the start of any change. It helps establish the impact and degree of acceptance to it – and this is critical if we are to know how hard we have to work to make the change happen. There is no point in designing a huge change programme for a change that everyone accepts and is more than happy to do anyway! The 6-step process for effective change 1) Establish a clear direction – a compelling case and a sense of urgency 2) Clear ownership and leadership 3) Communicate the case for change early and often 4) Create and maintain a workable change plan 5) Empower broad-based action - maintain and measure progress 6) Anchor new approaches
  • 61. 61 CAVENDISH Step 1: Establish a clear direction – a compelling case and a sense of urgency For any change, no matter how small, it is essential to have a clear and well thought out understanding as to why change is necessary. For some leading edge organisations this can be less of an issue, because they put so much effort into establishing and maintaining a culture of continual change – in effect for them “change” becomes part of the lexicon of everyday work. However for most organisations this is not the case. For them the starting point is about creating:  A clear case for change, approved at the appropriate level  A compelling and reasonable argument, laid out in the form of a directional paper or memo  An understanding of the timescale involved, even if its not fully defined  An understanding of the urgency for change, and the consequences of not changing  The right climate for change – the ground work with stakeholders to create an initial sense of involvement and engagement with the challenge Step 1 cannot be rushed. It is fundamental to effective change, and the dialogue with key stakeholders is critical to shaping a comprehensive and viable approach. Often this step takes place over several weeks or months, and is highly iterative – homing in on the most appropriate approach and ultimately to the compelling case for change. One of the biggest issues to be addressed in step 1 is how to create enough urgency without overly stressing people – in effect ensuring it is taken seriously but at the same time making sure the outline implementation timeframe is reasonable. People have a natural tendency to relegate things they perceive as unnecessary to the bottom of their “to do” list. If this occurs with the key people who are essential for early engagement and buy-in, then nothing will happen. So creating the collective sense of urgency and priority with key stakeholders is critical to getting a good start at all. In some cases, particularly where change is necessary as a prerequisite for effective business continuation, then senior leaders will often have to declare the situation as urgent and high priority with limited discussion and feedback, in order to ensure early action and progress. Step 2: Clear ownership and leadership The next step in the process is to ensure that there is clarity around who is leading the process and who will approve the actions to be taken. For most major changes there will also be a leadership team, reporting to the project manager, that needs to be briefed, fully engaged and have the capacity (i.e. time and priority) to contribute to the process. As well as establishing the management (or governance) process, it is also essential to establish the guiding principles and vision that all stakeholders involved in the change process can buy into. This defines how the team will work together, how they will communicate to other people, and how they will explain the issues to others when appropriate. It is crucial that this is done with a common message and language. People will simply not follow the lead of a team that is perceived to be divided and acting as anything other than good role models to them.
  • 62. 62 CAVENDISH It is also good practice at this stage to identify who the “champions of change” might be. The reality is that it’s the champions, the people who will take a positive approach and use the right constructive and visionary language, who make lasting change happen. There is a critical mass element to this, and a basic “rule” of change is that there needs to be enough change championing occurring appropriate to the magnitude of the change, if such changes are going to be made in a reasonable timeframe. The reality is that having fewer champions translates into a longer change transition period, and this can have a major impact on the ultimate effective change. Finally it is critical that ownership for the change process is with the relevant line managers. Consultants, HR and other support teams can all help managers to develop and implement successful change but line management ownership has to be clear from start to finish. Consequently there is often a strong case for identifying and appointing a Change Coordinator / Facilitator – someone who can work closely with the sponsor and project leader to coordinate and facilitate day-to-day aspects of the change process. This might for instance involve day-to-day project coordination and project team facilitation. The role holder does not own the project, but does work to ensure effective engagement of key stakeholders in getting to effective and timely solutions. At this stage it is also critical to establish how employees will be involved, and to what degree – particularly those in leadership positions. The “RACI” approach can help here. “RACI” stands for:  Responsibility  Accountability  Consult  Inform As we have seen above, establishing who is accountable is key – “where does the buck stop”? There can be no confusion about this. Responsibility can be shared, but the accountable person needs to be clear about WHAT is being delegated to WHOM, and also to ensure that they have the necessary authority and capability to act. Consult and Inform are critical. Basically you should aim and plan to consult with people before decisions are made, and take feedback into account to some degree. However there will also be times when all you need to do is to inform people, typically once a decision has been made. To what degree one needs to consult versus informs (or both) depends on the specific circumstances of the change in question. This is why it is so important to think this through well before starting into a change process. Step 3: Communicate the case for change early and often One of the biggest barriers to effective change is poor communication – or to be more accurate poor perceived communication. An effort may well have been made to communicate, and the leadership team may well have felt they had done a good job at this, but its perception that counts. If the message was poorly understood or misunderstood, particularly where no effort has been made to clarify around concerns, then resistance can be expected, and it might be serious! It is never too early to start the communication process. Section G) below contains a comprehensive guide to effective communication during times of change.
  • 63. 63 CAVENDISH Step 4: Create and maintain a workable change plan So far we have focused mainly on people issues, mainly because those are the ones most likely to cause implementation challenges if not handled correctly. However it is important to build and maintain a project plan for change that includes all the normal project elements – major tasks, deliverables, timeline, who does what, risk assessment, logistical issues, etc. This will also include the more traditional elements of change plans, such as:  Scope, i.e. what is included and what is not  Organisational structure  Roles and responsibilities  Selection, recruitment and / or separation issues  Implementation plans  Progress review methodology It is important that the change process is recognised and planned as a project, and one that includes all aspects of implementation as part of the project. (Typically for instance this might include any necessary training and development – so often forgotten in change programmes). Although a general project planning process might be used, it is important that the project plan has the following key elements included:  Initiate the project (including defining project board, team, manager)  Define alternatives  Select alternative and plan for detailed implementation  Execute the approved plan  Operate and make additional improvements Step 5: Empower broad-based action – maintain and measure progress Once the decision has been made to make the change, then it is critical to “do something” – in effect making it clear that there really will be a change and it will have lasting benefit. Generally speaking there is a “window of opportunity” to do this, because if people see no changes and no action then they start to believe, wrongly, that the change itself (and more worryingly the need for change) has gone away. What is more, people can be keen and creative when involved in the change process, particularly when it has a direct impact on helping shape the outcome. A mechanism needs to be in place to allow for modification of the implementation plan, whilst still monitoring the overall project scope and timeline. Typical actions are:  A clear implementation plan with realistic timescales and milestones  Changing structures and processes  Establishing clear new reporting lines  Focus on new team development and individual development needs  A culture of empowerment, trust and support  Setting up measurement processes – with clear targets  Focus on dealing with problems and potential roadblocks  Role modelling good leadership behaviours
  • 64. 64 CAVENDISH Step 6: Anchor new approaches No matter how effective the introduction of change may be, ultimately the “proof of the pudding” will be how the new culture develops and embeds and how visible this process is. It is all about how effectively the transition is made from the current state to the desired state – particularly embedding the behaviours necessary. This will typically take the form of:  Continual reinforcement of the shared vision  Encouraging and recognising reinforcing behaviours in others  Recognising and taking with us “the best of the past”  Openly recognising people who do well  Celebrating as a team  Embed a team approach with appropriate development and support  Clear linkages between individual objectives and organisational success  Realistic yet challenging goals and objectives  A strong sense of “ we will succeed or fail together” It is crucial to make an early effort to make the “new way the normal way”. It is all too easy to fall into the trap of continuing to work in the same ways as before, and to treat the changes as something that will be done “when we have time”. This in effect makes the change process a “bolt-on” rather than “core”. The language, behaviours and actions that leaders (at all levels) take will shape the overall implementation and determine how effective it is. The key message is to reinforce a “we” culture and avoid “they / them” language. Barriers to effective change So far we have built up a comprehensive picture of what organisational change entails, but we have not looked at the realities of the situation – in effect why so many change initiatives fail to meet their objectives. This section looks at why change so often fails to make the impact expected. The compelling case for change Many change programmes in effect fail right from the outset, because they do not create an adequate sense of direction. Far too little effort is put into “painting the picture” as to why change is necessary, the impact of market forces and what will happen if we changes are not made. Organisations often fail to involve employees enough in the story of how the competitive landscape is changing, and what the medium-long term outlook options might be. In particular, managers need to be exposed to the situation and possible outcomes as early as possible because they carry the responsibility of cascading the case for change to other employees, and doing so in a way that promotes buy-in and team inclusiveness. Developing the case for change is not a simple process, and generally requires months of discussion and re-working to get it to a viable state. Early employee involvement and discussion can be hugely influential in overcoming resistance to change later on.
  • 65. 65 CAVENDISH Not understanding what change is Because the background to change may often be not well understood by employees, then a sense of change as a “single event” may emerge. In effect change then becomes seen as a step change to a new “steady-state” situation. This may have been true 20-30 years ago, but not now. Change is a journey, not a destination, and this applies as much to managers leading change as to employees having to come to terms with the consequence of change. It is also critical to understand how “change as a journey” nearly always brings development opportunities, particularly when working with new systems and in new ways. At a personal level this is often overlooked. Timescales All change requires a clear timescale to work to. Without it there can be no commitment to change, because people simply won’t know when things are going to happen (or in some case if they have happened) and hence know how effective the changes were. Right at the outset there is a need to set some timescale, even if it is an estimate. Why? Because once a compelling case has been communicated, then people naturally will ask when any change is likely to happen. As we shall see later in the section on effective communication, once the process has started and “the meter is running” so to speak, then consistent communication is critical. A key part of this will be to gradually improve the timescale and end-point estimates. There is a second reason why a timescale is so important, and it is that change can be a highly stressful experience for some people. Hence it makes good business sense to go as fast as reasonably practical and in line with effective decision making. Although this might appear to increase the stress levels, in reality it is far worse to “keep people waiting” than to “get on with it”. Ownership confusion In any change situation it is critical to be very clear about roles, particularly with regard to who is responsible. Typically this breaks down into:  Who approves the overall project?  Who owns / manages the change process (if different from above)?  Who is involved in shaping the new organisation? This is a critical first step because the communication process throughout any change requires to be continually managed, and as we have seen already, in many ways is the key to successful implementation. But without a clear understanding of roles there is also likely to be confusion about who owns the whole change and communication process. So often in change programmes consultants (sometimes internal support employees) are used to help develop the case for change and planning stages, and this often helps to develop a better overall understanding of “why we have to change”. However this is not the same as owning the change process. Only the line managers concerned can do that – and only they can be effective at communicating change to employees. Employee involvement In any change situation the compelling case and vision can only be developed by senior management – after all, that is what they are paid to do. However there is a big difference between developing the case and implementing it, and implementation invariably involves a wide number of people at all levels.
  • 66. 66 CAVENDISH In many major change situations managers fail to involve employees in change teams. Why? Because so often senior managers fail to see the importance of having the very people who will have to work in the changed organisation work out the details of how it will actually operate in practice. This so-called “bottom-up” approach not only brings wider involvement and hence greater buy-in, but it also creates far greater opportunity for new and innovative ideas within the framework of the “top- down” strategic vision. Ineffective implementation There are countless stories of change programmes where there was an excellent business case, a good plan, but poor implementation and follow–up, leading to lower than expected results. So often implementation is seen as “the easy part” and sometimes is not even seen as part of the change process! In reality implementation is the hard part – it is where the whole organisation gets involved probably for the first time, and it is where assumptions made during organisational design get tested in practice, and in many cases found to be inadequate. The real test of implementation is how robust the organisation is to deal with the challenges and to re- adjust the organisation and revised processes early enough. Flexibility is everything, and although the overall strategic framework needs to remain in place, many detailed steps may well change during implementation. Although it is difficult to design a generic change implementation checklist, it should contain some essential elements:  A clear understanding of who is organising the implementation process – in effect an implementation coordinator  A fair, equitable and fully transparent selection process  A clear handover plan if roles are changing, including how to deal with unfinished work  A detailed move plan if people are moving location  A detailed communication plan which keeps all staff involved and updated  Clear understanding that, to some degree, everyone’s role changes  Recognising that some changes will be needed and maintaining flexibility  Early alignment of the senior management team around a set of team behaviours and an agreement to role model such behaviours  Regular team meetings with a standing agenda item around change implementation  A clear understanding (by all) of when “transition” should evolve into “normal running” Why “the way we do things” may not be good enough any more During boom times or periods of relative economic stability, managers can become overly confident of their management capability – in effect believing that results are all down to their abilities. But in many cases the situation is far more complex than this. The general business or political environment may be playing a huge part in the overall success, and when something happens to challenge this (such as a major economic shift) it can be doubly hard for managers to realise they have to change. In some organisations it is only when this happens that they realise that their management capability was rather less well developed than they thought!
  • 67. 67 CAVENDISH Failing to celebrate success Knowing when to stop and declare victory is important because it is a key part of establishing the new culture as “normal running”. In effect this is moving out of “change transition” and into “continuous improvement”, and a judgement call is needed to establish when to do this. A change checklist The following checklist for change is adapted from “Human Resource Champions” by Dave Ulrich. It provides an effective benchmark against which to assess progress: Key Success Factors for Change Questions to Assess and Accomplish the Key Success Factors for Change Leading change (who is responsible) Do we have a leader? *Who owns and champions the change? *Who publicly commits to making it happen? *Who will acquire the resources necessary to sustain it? *Who will put in the personal time and attention needed to follow through? Creating a shared need (why do it) Do employees? *See the reason for the change? *Understand why the change is important? *Understand what will happen if we don’t change? *See how it will help them and/or the university in the short and long-term? *How do we know that employees see the reasons for change? What feedback and checking has been done? Shaping a vision (what will it look like when we are done) Do employees? *See the outcomes of the change in behavioural terms? (that is, in terms of what they will do differently as a result of the change)? * Get excited about the results of accomplishing the change? *Understand how the change will benefit customers and other stakeholders? *How do we know that employees see and share a common vision? How has this been checked? Mobilising commitment (who else needs to be involved) Do the sponsors of the change? *Recognise who else needs to be committed to the change to make it happen? * Know how to build a coalition of support for the change? *Have the ability to enlist support of key individuals in the organisation? * Have the ability to build a responsibility matrix to make the change happen? *How do they know that the people who need to be committed to change actually are?
  • 68. 68 CAVENDISH Modifying systems and structures (how will it be institutionalised) Do the sponsors of the change? . . . * Understand how to link the change to other systems, for example, staffing, training, structure, communication, and so on? * Recognise the implications of change on systems? *Recognise the criticality of “taking the best of the past forward with us”? Monitoring progress (how will it be measured) Do the sponsors of the change? . . . *Have a means of measuring the success of the change? *Plan to benchmark progress on both the results of the change and the process of implementing the change? * Plan to celebrate success at the appropriate time? Making it last (how will it get started and last) Do the sponsors of the change? . . . *Recognise the first steps in getting started? *Have a short- and long-term plan to keep attention focused on the change? *Have a plan to adapting the change over time? *Have a plan to keep employees engaged and listen /react to feedback? As part of the measurement of effective implementation, it is a good idea to review progress against all 7 stages of the checklist on a regular basis, typically every 3 months. A simple qualitative measure of process quality, on a scale of 0 to 100, will suffice. The criticality of effective communication “The greatest problem in communication is the illusion that it has been accomplished” George Bernard Shaw Effective communication is the central factor in managing change. But it is also the main area of change that has traditionally been neglected or poorly handled. The quote from Shaw gives a clear insight into why this is – differing perceptions as to what has actually been achieved. All too often the message delivered does not come across as intended, and what isn’t said tends to speak just as loud if not louder than what is said. One thing is certain when communication is concerned, and that is that communication occurs whether you want it to or not! That is a real dilemma for a change manager, because in effect everything they say and do becomes part of the overall change “jig-saw puzzle” as far as the employee in concerned. Every word, raised eyebrow, nod of the head, smile, raised voice etc provides information, so the key is to know that and manage it as best you can Consistency is critical – what you said a week ago must link into what you say today and what you plan to say next week. Errors and inconsistencies will be seen by employees as a sign of uncertainty and confusion, which invariably gets received as “they are hiding something”, or “they don’t know what they are doing”!
  • 69. 69 CAVENDISH So how can you overcome these challenges and use communication as an effective change tool?  Recognise that everything you say and do is part of the communication process  Use every opportunity (formal and informal) to communicate the “case for change” - it is better to introduce the idea of change through informal discussions, focus groups, updates on the business outlook and wider business environment, etc  Develop a communication plan that includes how and when you will tell people what, and by which medium  Use written (memo, e-mail) media to communicate formal things that you want everyone to see  Use verbal means to set the context and explain why, etc  Be as open as you can and tell the truth – even if this means saying you don’t know yet or can’t say yet  Consistency is everything. People will look at the sequencing of communication for any hints or hidden messages, and read in things that were never intended! It’s critical to maintain a consistent message, and to ensure continuation from one communication to the next  Communicate on a regular basis, even if there is little to say. It is much more important to “keep the regular channels open” than to “only say what you need to say when you need to say it”. Also remember that a gap in communication will always be interpreted as “bad news”  Ensure the right level of urgency is communicated along with the compelling case  Work with the leadership team for the area concerned to ensure a consistent message is conveyed  Focus on the benefits of change and the consequences of not changing  Tune in to different stakeholder groups’ needs and preferences  Seek feedback at every opportunity to encourage involvement Benefits of effective internal communication are:  Good communication processes help people to understand where they fit in the big picture, and how their job and team contributes towards achieving the organisation’s goals  Good leaders are often good communicators - great communication skills and practice helps leaders set direction and maintain morale. They are more credible to their team as a consequence  People have more opportunities to speak up about concerns, as well as ideas and suggestions. A more trusting relationship can be created with colleagues and managers as a result  Since employees are the organisation, if they’re well informed and motivated it stands to reason that the organisation’s internal and external reputation can only benefit
  • 70. 70 CAVENDISH  Change is never easy to deal with, but good communication makes it easier for people. They understand what’s going on, why, and (as far as possible) how it will affect them. It won’t make everyone like change, but people will feel more comfortable, and better able to continue with their job while change happens The diagram below helps explain the various stages and different means of communicating. Employees will progress through the stages - from awareness to understanding to acceptance to commitment - at different paces. It is vital that leaders use the most effective and appropriate communication media to complement what’s required of employees at each stage. The process is not linear, and iteration or recycle is essential to get full understanding. For example if you want to inform employees of a change, which will not require their involvement, (i.e. a change to a process which does not directly concern them, but is important to the organisation) then use a newsletter or bulletin to advise them. Involve Engage Clarify Inform Awareness Understanding Acceptance Commitment Formal Face to face Two way All ways Mass methods One way Achieve strategic goals Informal At the other end of the spectrum, if the change you’re proposing will require them to work in a different way in the future, it is critical to involve them in its design, via workshops, discussion groups or project teams. The role of the leader during change By now it should be apparent that change has much more to do with the so-called “soft” issues and much less to do with hard, structural issues. In effect leadership and change is one and the same thing – change will simply not happen without effective leadership and anything less than good leadership will lead to ineffective change. Very few organisations can afford that – which is why leading change is such a huge issue. One of the challenges is that people generally perceive change to be 80% structure and 20% people issues, whereas in reality it is the other way round – and most organisations only find this out the hard way, by making mistakes and learning from them.
  • 71. 71 CAVENDISH So change is predominantly about:  Good communication  Personal desires  Alternative culture and culture change  Anxiety and loss of control  Hidden agendas To some degree these are all leadership issues. Leaders, at all levels, can do something about these issues and hence make change happen more effectively - but only if they choose to do so. The role of leaders during change cannot be overstated – they play a pivotal role in making change happen. What is more, employees look to leaders for guidance particularly when situations are uncertain and change is likely. In fact employees watch leaders for any signs, whether intended or not, and read into them whatever they feel they need to. Consequently it should be no surprise that the ability to understand, believe in and role model effective leadership behaviours is crucial. During change situations people will only really believe and buy into what credible leaders tell them – and the reality is that many people in lead positions are not able to do this effectively. Why is this? It is simply because they have not put in the effort to develop their own leadership capability, particularly around key leadership behaviours. The values that the organisation adheres to in support of its mission and vision, and the leadership behaviours that evolve from them simply have to be evident and visible if effective and lasting change is going to take place. What are the leadership behaviours most relevant to change situations?  Understands the wider context and can explain them effectively  Communicates a clear vision with commitment and passion  Brings ideas to life for others, seeking to engage and gain buy-in  Listens to others, shows interest in other perspectives  Encourages contributions and shows appreciation  Treats people with respect, recognising achievements  Able to persuade without resort to authority  Sets and adheres to high standards  Takes ownership of issues, ensuring resolution  Encourages individual development, instilling self-belief in people  Gives constructive feedback  Build high performing teams  A highly effective communication style that promotes team working The danger under these circumstances is that leaders do less, not more, because of the concern that they may do something wrong, or get caught up in a debate they are not prepared for. But the reality of the situation is that if they do this they make the situation worse – a classic “catch 22” situation!
  • 72. 72 CAVENDISH So what should leaders do to help make change more effective?  Recognise that you are a role model, whether you like it or not!  Be visible, and listen to concerns - encourage constructive debate and feedback  Even if you don’t “buy-in” fully to what is happening, you still have a responsibility to help employees through the process in a supportive, positive and constructive way  Be consistent in what you say, and never speculate – if you don’t know or can’t say, then say so  Be empathetic to concerns, and help people understand what is actually happening, not what they think is happening  Ensure that business keeps running smoothly during the change process – keep your “eye on the ball”  Go out of your way to involve people and explain what is happening  Focus on team working and team development needs Everyone, no matter how enthusiastic they may be, will at some point experience the “performance dip” shown in the diagram below. Leaders at all levels need to be aware of this and handle each situation as appropriate. Leaders at all levels need to be aware that people respond differently to the change, and hence a different approach may be needed. For instance “change champions” may only need occasional encouragement and support, but people struggling with the changes are going to need much more time and effort invested to help them come to terms with the “new way”. Above all, leaders need to remember that people can never be “told to change” – this may appear to bring short-term benefit but invariably brings no lasting value, and in many cases leads to a worse situation than existed in the first place. Response to Change Immobilisation Initial Optimism Enthusiasm and Commitment Denial Acceptance Performance Dip There are several stages that people move through during a change process, each requiring a different approach to management and communication. Understanding Individual Responses to Change
  • 73. 73 CAVENDISH Only by guiding people and role modelling the kind of behaviours and culture needed can leaders make change work effectively. Appendix A – A Change Management Roadmap A change management roadmap Clear ownership and leadership Establish clear direction - the case for change Create workable change plan Empower action - maintain and measure progress Anchor new approach Where are we now? Where do we want to be? Gap analysis Stakeholder analysis Why is “status quo” not OK? Options / climate for change? Dialog with Employees Outline change plan Clarity of Ownership: Sponsor? Decisions? Project team? Governance? Communicate guiding vision and principles Capacity (time / priority) of key people? Change champions? Finalise plan: Scope Deliverable Timeline Roles Risk analysis Imp’n plan Review process Impact analysis Development needs “New way” of Working Communicate! Clear imp’n plan and timeline Milestones Remediation plans Establish new reporting lines New team Development Personal dev’t plans Role modelling leadership behaviours Make “new way” the norm – avoid delays Continual reinforcement of “new vision” Role model Supportive behaviours Realistic yet challenging goals Team – “we / us” Celebrate success! Effective communication is critical! Consistent message / Check for Understanding / Open and honest feedback "We all have big chances in our lives that are more or less a second chance" Harrison Ford
  • 74. 74 CAVENDISH For Your Success - More Get Up and Go is Required Turn yourself from an average performer into a Business Superstar. A winning team of winning people is the ambition of many entrepreneurs to be successful in business and personal life. Success Checklist  Have you identified critical success factors vital for success?  Are your colleagues `winners` or losers in the areas that really matter?  Are you reactive or proactive?  Do you know who your superstars are and what they do differently from others to be success?  Do you ensure that resources are not devoted to non-vital activities?  Are people helped to excel at critical success factors for building relationships with customers, employees and suppliers?  Do you learn to take on board new ideas? Become a leader: Follow the four key rules;  Take a good hard look at yourself  Identify differences between where you are and where you want to be  Get Strategic  Thank about the promotions board Become a leader Celebrate the achievements of those working for you, inspire your team with self belief, motivate them to achieve, create move leaders. Fresh thinking requires a vision to see beyond the conventional. When you combine excellent quality with outstanding value for money you will begin to realise the full potential of creative and well presented business solutions. Together, the sky's the limit. Have passion to learn and let the knowledge help you to be successful in life. "By concentrating on making your softer skills more impressive, you are more likely to distinguish yourself from your peers" Colin Thompson
  • 75. 75 CAVENDISH Vision and Mission of Colin Thompson: Vision  Changing Limited People into Limitless People and  Turning Limited Companies into Limitless Companies. Mission  Success is a journey, not a destination…  Our mission is to make you successful in life. email:colin@cavendish-mr.org.uk www.cavendish-mr.org.uk “The biggest discovery of every generation is that humans can change their life by changing their mental attitude!” Albert Schweitzer
  • 76. 76 CAVENDISH USEFUL INFORMATION Publications to help you become more successful: Business models on CD/Software  The Enterprise Business Model  Interpreting Accounts for the Non-Financial Manager  The Valuer- Business Valuation Software  Managing For Customer Care  Be paid on time System  It’s a Digital Future  A Flow Chart of the Partnership Process  How to Become a Successful Franchisee Plus many more publications, research reports, guides and business and educational CD`s. All the above business tools are available by visiting the website: www.cavendish-mr.org.uk "Let us not be content to wait and see what will happen, but give us the determination to make the right things happen." Peter Marshall
  • 77. 77 CAVENDISH Document Management Cost Savings Solutions "The Great end of life is not knowledge but action" Thomas Henry Huxley
  • 78. 78 CAVENDISH Document Management - Cost Savings Solutions By Dr. COLIN THOMPSON Improving the quality of systems is necessary to accelerate with impact organisations in the 21 st century. The competition for customers is getting fierce. Customers want and expect much more from company personnel. This publication will help you to improve your skills in empowering people to deliver quality service excellence of `The Management of Printing and Business Processing that includes all hard and soft documents to raise the `bottom-line`. This publication will help you understand the `Hidden overhead that will be affecting your business and every organisation globally that will impact an increase in the `bottom-line`. Businesses that invest in people and systems will `win`, because they care more than other organisations. Each company should care about its personnel and business systems. The world is about dedication to the people and business models environment, since it is people and business models that make companies work, technology only helps people and the business models carry out their job more efficiently. Becoming the best, so to `accelerate with impact your business growth`, I have set out to fulfil several objectives; * To remind Directors of some of the basic principles that you need to invest in people and business models. * To establish a framework for the detailed review of all aspects of the day-to-day operations of the business, leading to the identification of problem areas and the development of action plans to improve performance and accelerate with impact the company. * To establish guide lines and methods of planning to ensure the long - term growth and prosperity of the company and for the company to stay in business longer because of the quality of its people and business models. The accent throughout is on common sense and simplicity, with an avoidance of management gimmicks and minimum use of jargon. Busines life is about dialogue that we `all` understand and respond to. So make the playing field equal, so all people understand the language used and the action to take, to receive and accept, so business life is successful for `all` involved. Yes, you can achieve all things in life by your attitude to be positive, you have the solution in you, so go forward and use it now and be successful in your business growth. "Only one yardstick could be selected for the measurement of business progress, it might well be the business document; in this day and age every business is erected on a foundation of paper" Edward N. Rausch