Define - Define the Key Performance Indicators or KPIs for the client organization. KPIs should be tangible and measurable, and should have the highest impact on the existence of the organization. Some of the KPIs that are adopted are Increase in Revenue, Improve in Profitability, Reduction in Lead Time, Reduction in Inventory Levels, Increase in Market Share, Better ROCE, etc.

Define the benefit target, the benefit realization timeline, and the linked payment schedule. The payments would be based on achieving the benefit targets. As a baseline for setting the benefit targets, the latest KPIs should be measured, and the cut-off date defined for accepting the KPI base values.

Suggest & Implement - Analyze the existing processes and systems, and prepare a blue-print for incremental changes as well as Business Process Re-engineering. Also, an automation roadmap for the client organization is prepared.

Once the suggestions have been accepted and validated through pilot runs or simulations, hand-holding with the customer through the implementation phase is of utmost importance. Often, the client organization doesn't have enough expertise and experience to implement the solution and, thus, the beauty of the suggestion is lost.

Benefit Realization - On implementation of the solution, the biggest step is reaping the benefits of the same. Benefit realization is important to both the client organization, as well as the consultant. For the client organization, it marks the repose of the faith it had on the consultant, and starting of tangible benefits to its firm. For the consultant, it marks the start of the payment schedule and return on investment in the project.

Optimization - After incorporating the changes as a part of the new solution, the biggest challenge that many client organizations face is to institutionalize it. Unless the changes are institutionalized, the benefits derived from the solution are temporary at the maximum. So, consultants continue to work with the client organizations to ensure that the benefits are not short-term. So continue to work with the client to ensure continuous benefit realization.

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Devroop Dhar is a Management Consultant with PricewaterhouseCoopers in Mumbai. He has almost 5 years of experience in the field of Consultancy, Project Management, IT. He is an alumnus of IIM Kozhikode, specializing in Finance & Operations. He has also worked with TCS & Bristlecone in the past, and done internship with EXL Service. He also holds BE Degree in Production Engineering from Jadavpur University, Kolkata.
All views expressed in this article are author's own, and not related in any way to his employer.