Full Potential Diagnostics
The difference between what a company is achieving and what it is capable of can be considerable. A past specialty chemicals client of DSS was achieving the industry average EBIT of the time of 4.5%. Two years later, the same company was sitting at an EBIT level of 12.7% - not it’s true full potential but getting very close.
If you want to know what your organization is capable of, Full Potential Diagnostics provide the answer. By taking a structured approach to assessing the key value drivers for your business, they provide a robust, comprehensive business case for change and a detailed roadmap to achieve improvements in a defined timeframe.
What Are Full Potential Diagnostics?
The diagnostics analyze three critical areas across your operations:
- Volume: Where are the constraints in the value stream and what is the full potential volume that can be realistically achieved without significant capital expenditure?
- Cost: What are the viable operating, working capital and sustaining capital costs required to support increased volumes?
- Enablers: What are the key enablers for realizing and sustaining full potential volumes and costs? This also includes organizational culture (Mindsets & Behaviors); skills, competences, and resources; digital capabilities; the management operating system and operational risk management.
How Do Full Potential Diagnostics Work?
Full Potential Diagnostics consist of three major phases :
- Preparation: Agreeing the scope, timing, and deliverables with project leaders; assembling and validating the fact base, scheduling the site visits, workshops, reporting, meetings, etc.
- Full Potential Calculation & Prioritization: Fact-based analysis of ambitious but achievable full potential; collaboration to determine and prioritize biggest and/or easiest volume, cost and enabling initiatives.
- Design & Plan: Deciding workstreams; development of a comprehensive implementation roadmap for each site that sequences initiatives based on dependencies and resource requirements; integration of the roadmap into a cumulative benefits tracking system.
A concurrent gap analysis will identify any lack in capabilities or processes that need to be addressed and developed to accelerate and sustain the overall program.
What Do Full Potential Diagnostics Give You?
Clients who have undertaken Full Potential Diagnostics have gained:
- Clarity on which areas need to be prioritized to improve business performance
- A comprehensive and realistic roadmap based on facts and their own operational reality for sustainably transforming the business, developed with, and owned by the management team
- A detailed insight into the resources required to deliver the planned improvement initiatives
- Certainty that the roadmap will deliver the expected benefits if executed well
Clients who complete Full Potential Diagnostics and implement the specified roadmap regularly achieve or exceed the expected benefits on schedule.
