Alternate Title: How to survive in a world of constantly shrinking budgets

Transcription

1 How to Justify to Management the Need for Additional Personnel Resources COSTHA Forum, May 3, 2017 Don Bossow, Director Americas Regulatory Affairs Alternate Title: How to survive in a world of constantly shrinking budgets Overview of Sealed Air/Diversey Care Sealed Air is a global company consisting of 3 divisions: Product Care, Food Care, Diversey Care Chemicals parts of the business are Diversey Care and Food Care Hygiene which provide cleaning and sanitizing solutions to for institutional and industrial use Product line includes a wide range of cleaning and sanitizing chemicals and equipment for use in all types of commercial and public facilities Key market sectors include: healthcare, hospitality services, food and beverage processing, and general building services for commercial, government and education facilities. About 30,000 unique skus in over 100 countries >80% classified under GHS, >60% regulated for transport Pack sizes range from several ounces up to bulk tank trucks 3 1

2 Easiest Ways to Justify Additional Resources Be hit with a big fine for non-compliance Major incident with media attention and negative PR Significant issues with frustrated shipments resulting in customer loss Corporate officers personally indicted for negligence Assuming you survive one of these you will probably find it easy to justify additional resources, but not the recommended path! 4 How do we show value to the business? Quantify potential regulatory impacts, actions required, and resource allocation to avoid incidents like those on previous slide (Cost avoidance) Cite past successes cost/benefit and forecast benefits the additional resources would bring versus cost (Return on Investment) Resource capacity planning through time study Establish meaningful metrics to show positive return on investment in your program What is important to the business? Key stakeholders expectations? Financial impacts: cost avoidance, cost savings, speed to market Efficiency metrics: OTIF, cycle times, % rework Advocacy: Impacts of influencing regulations (cost savings, cost avoidance) 5 Case Study Opportunity to Re- Imagine Regulatory at SEE Regulatory leadership team tasked with reinventing our regulatory organization to better serve the new organization and culture, improve service globally, increase efficiency and be cost neutral or cost reduced. Previous organization based on country personnel, regionally coordinated and division based. Generally functioned well in established markets, but struggled in emerging markets Different processes, systems, reporting structures between divisions and regions with very little synergy Majority of staff in high wage areas like US and EU In many cases, highly technical staff doing mostly transactional work 6 2

3 Analysis Regulatory and Business Trends What is coming? Impact on company and regulatory workload? Determine stakeholder expectations Survey of key stakeholders, + and - Workstream identification and SIPOC analysis Alignment with all division and corporate strategic plans FTE Analysis where do we spend our time? Benchmarking against competitors and similar industries 7 Identification of Key Workstreams and Time Commitments Strategy Clearance to market Compliance documents Product notification Product registration Ad hoc Support Systems & tools Contribute to future setup of department and portfolio Act on routine Create defined internal defined and structured processes to (virtual) ensure that documents products meet requirements Perform notifications or build dossiers that have no impact on launch timings Pre marketing Non scheduled Maintain and registrations, support to improve (IT) launch can only business (to systems & tools start after customers, approval other obtained functions, M & A etc) 13% 22% 11% 8% 23% 17% 6% 8 An Example of "Transactional" Work-load 9 3

4 Data collected on Total sales R&D spend Total employees Regulatory employees Product line complexity Regulatory complexity Geographic scope Benchmarking Studies Analysis showed how we compare to others in RA complexity and resources 10 Design phase Review of all analysis data and brainstorm options for new organization Rank ideas then analyze feasibility, pros and cons of each option Identify top options for further assessment Top three options identified, detailed cost benefit analysis identified for each Final ranking of recommended options and presentation to management committee for approval 11 Final Recommendation and Decision Create a global service center to manage all routine activities globally and regional expert centers to ensure critical mass of subject matter experts. Responsible for all divisions to leverage synergies where possible. Shift of routine, transactional activities to global service center along with global harmonization of processes will allow retained regional staff to focus on strategic support for the business and advocacy in areas key to the business. Decision: Proposal accepted with direction to pursue outsourcing of service center and evaluate additional outsourcing opportunities. Analytics from the review stage allowed us to provide data on the impact of further outsourcing and final decision was to move some work back to internal staff and internal positions were added back in. 12 4

5 Our Current Status Although we are still in the transition phase for implementing our new structure, we expect to see the following benefits: Increased total staff levels with a decrease in annual cost due to outsourcing staff to low cost countries Improved support in emerging markets Separation of routine transactional activities from more strategic initiatives ensures our senior technical staff are used most effectively Harmonization of processes globally with an increase in efficiency and consistency Reality that you can teach processes and procedures, but cannot teach experience so full benefits will take several years to realize 13 Key take-aways Always be open to new ideas to maximize chances of getting what you need Learn what is important to stakeholders and talk their language Develop ROI criteria for any additional resources requested (work with a Finance person or Project Manager if you need help) Do your homework have data to support your proposal or request Proactively develop meaningful metrics to demonstrate benefit from what you do and understand resource capacity Effectively communicate your success stories and benefits 14 Thank You! Contact Information: Donald Bossow donald.bossow@sealedair.com Phone: