In this series on problem solving frameworks we are taking a look at solving problems using methods learned from the book,
The McKinsey Way by Ethan M. Rasiel. If you are checking in from the original post, “The McKinsey Way” is a peek into the problem-solving framework used by one of the world’s most successful business strategy-consulting firms,
McKinsey & Company.
This is the last of the three part series and speaks to, “what to do with the data you capture.”
Reminder about The Theme
Approach every business question with a structured framework for solving the question (Ex: How can I measure and manage my contract relationships to make sure they are priced optimally).
Again, borrowing from McKinsey, here are the high-level steps to follow when solving a business problem:
1. Gather as much of the facts as is humanly possible.
2. Start with a hypothesis of what the problem may be
3. Divide your supporting findings into unique categories (Google for “MECE” for more information on how we will do this or stay tuned for the next blog).
4. Test, Test, Test your theory
5. Implement!
Where to begin
From our last installment we said that manufacturers in foodservice must capture all of the claiming and usage data possible to even consider making good decisions with it. Now we move into the next most essential concept: Get a solid set of tools you can analyze the data with.
Piece of cake!
Here is the hypothesis we stated as the core to understanding whether your contract. . . and then your contract portfolio. . . is performing.
1. Information about the claiming history and volume usage of a contractee or a segment of contractees. . . . .
2. Coupled with a process to trap, track and audit usage and claiming activity against the contractee(s). . . .
3. If your team has powerful tools to analyze the information and has been sufficiently trained. . .
4. Can improve your ability to negotiate appropriate contract discount terms with both your operator and distributor for mutual gain.
So you have gathered the data, huh?
You have been able to track down 100% of your billbacks, headquarter claims, growth incentives, marketing allowances. . . all of the ways that a foodservice manufacturer gives away a buck. Good for you! Now what?
Now, you need tools that can take all of this data (maybe some came in on paper, but you have figured out how to turn it into electronic data) and begin to analyze it. There are lots of tools on the market that offer analysis capabilities. You can spend a lot of money purchasing enterprise business intelligence tools and spend lots more configuring and implementing these tools.
Another option is to work with foodservice specific partners like Answers Systems that offer pre-configured analysis tools as well as the ability to acquire all of the data and pool it all together so you can make sense of it. Whatever choice you make, start with the end in mind:
1. Acquire 100% of the data
2. Centralize it and “scrub it”
3. Use best-in-class products to analyze it.
4. Make informed decisions about contract renewals and relationships.
From here?
Keep it simple. Find a partner that can provide all of the components of data capture/analysis and reporting. Work with them to ensure that they have your organization's goals in mind as the programs are delivered.