small company big business how to work with large corporates successfully

Small CompanyBIG Business

11/09/2014 1

Small CompanyBIG Business

How To Work With Large Corporates - Successfully

Bronwyn ReidMining For Business – Emerald

@bronwynreid #smallcompanybigbusiness

Mining For Business

Mining For Business

Hilton Hotel, Cairns, 1st September 2014

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Thanks to our Sponsors

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The “SME Problem”

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Don’t understandhow supply chainswork and supplychain risk

Don’t have goodsystems

Have own internalsystems

Complexrequirements thatchange all the time

Too much time andcost to get it all inplace

Can’t get on thecorporate radar

D

I

S

C

O

N

N

E

C

T

SME’s Corporates

The main hurdles

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Today’s Topics

• Essential elements

• How Supply Chains work

• Business Systems

• Enabling Technology

• Tenders

• Innovation

• Visibility

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Today’s Topics

• Essential elements

• How Supply Chains work

• Business Systems

• Enabling Technology

• Tenders

• Innovation Robert

• Visibility Dallas

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Essential Elements

Get these right first!

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What business am I in?

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What’s your Why?

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Who is your (ideal)customer?

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Who is your (ideal)customer?

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Hint:

It’s not just anyone with a pulse!

What does yourcustomer want?

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What you are

offeringWhat the client

wants

What does yourcustomer want?

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What you are

offering

What the client

wants

What does yourcustomer want?

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What you are

offering

What the client

wants

What’s their problem?

• Improvement

• Trouble

• Dissatisfaction

• Change

• Frustration

• Time

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• Bottleneck

• Challenge

• Barrier

• Concern

• Difficulty

• Issue

What’s your valueproposition?

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Imagine…

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Show me the prize!

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What’sInItForThem?

Your internal team

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Your external team

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Board of Advisors?

SolicitorAccountant

Bank ManagerBusiness Coach

Insurance Broker

What stage are you at?

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Portfolio risk

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• Customers

• Market

• Region

• Revenue streams

• Black Swan events

Portfolio risk

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Top Clients as % of Total Revenue

Top 1 as % of Total Top 3 as % of Total

How Supply ChainsWork

And where you fit

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How does this work?

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How does this work?

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How does this work?

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Asia-Pacific

Over Budget On budget

68%

Asia-Pacific

Over Time On Time

80%

Does this work?

• 80% of projects overtime

• 68% of projects overbudget

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Does this work?

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Does this work?

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Does this work?

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Source: Ernst & Young

Where do you fit?

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• Questionnaire

• Self assessmento HEIRG

o Exxon Mobil

o Supplier on-line registration

Why would they buyfrom me?

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Multiplier Effect Price Capability

Why would they buyfrom me?

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But what’s local?

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2 For the purposes of this charter, localindustry is formally defined as Australianand New Zealand small and medium-sized enterprises (SMEs).

Source: Queensland Charter for Local Content, p1.

Why wouldn’t they buyfrom me?

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ConsistencyRisk Systems

InternalPolicies

Visibility Price

Why wouldn’t they buyfrom me?

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Customer Service No Innovation Staff Turnover

Logistics Compliance No Capacity

How do I get to them?

The New Way

• Make a difference

• Generate demand

• Create value

• Knowledge &expertise of seller

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The Old Way

• Get the order

• Opportunity

• Communicatevalue

• Product, service orsolution

How do I get to them?

The New Way

• Procurement

• Contracts

• DocumentedCompliance

• Tenders

• Global

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The Old Way

• Personal

• Handshake

• Trust

• Sole supplier

• Local

How do I get to them?• Get a PhD in your client’s problems

• Be prepared & professional

• Attention to detail

• Be agile and swift

• Your credentials

• Cost and Value

• Walk the talk

• Partnerships

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Systems

And what they can do for you

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Minimum Requirements

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“As a minimum, you must offer competitive pricing, qualityand on-time delivery when supplying to a major project.You have the best chance of entering and gaining long-term access to major project supply chains if you:• demonstrate how your service or product adds value to

the project and supports the project's risk managementstrategy

• use an established business system• have experience in responding to unexpected issues• use innovation to improve the efficiency of the project

supply chain• network to find and create opportunities to add value to

the supply chain.”

Source: Qld Govt: Preparing your business for major projects

Minimum Requirements

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• Capability Statement

• Quality System

• Health and Safety System

• Environmental System

• Risk Management System

• Insurances

Minimum Requirements

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• Time Management

• Finance Management

• Project Management

• Personnel Management

• Tender Management

Capability Statement

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• Rule 1 – Get one

• Rule 2 – See Rule 1

• State Government “Capability Statements”Workshops

• http://www.dsdip.qld.gov.au/events/tendering-for-government-business-workshops.html

Systems• Save

• Your

• Self

• Time

• Energy &

• Money

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The benefits of systems

• Efficiency

• Effectiveness

• Motivation

• Business Value

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• Structure

• Stability

• Control

• Sanity

Health & Safety System

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• Policy – Signed and displayed

• Procedures

• Templates are available

Environmental System

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• Policy – Signed and displayed

• Risks Identified

• Procedures

• Templates are available

• Carbon Footprint

Risk ManagementSystem

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• Policy – Signed and displayed

• Risks identification matrix

• Standard Operating Procedures

• Job Hazard Analysis

• Templates are available

Quality ManagementSystem

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• Policy – Signed and displayed

• ISO9001:2008

• Procedures

• Templates are available

Insurances

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• Plant and Equipment• Workers Compensation• Public Liability• Product Liability• Professional Indemnity• Audit• Get a good broker!

More on insurance

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• Minimums?

• Get contracts reviewedo Indemnities

o Warranties

o Liquidated damages

o Time

So how do I Systemise?

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• What areas?

• Prioritise

• Document it

• Trial it

• Refine it!

Enabling Technologies

And what they can do for you

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Time ManagementSystem

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• Question: What’s the easiest way to lose money ona contract with a large company?

• Answer: The Hurry Up And Wait Factor

=

Project ManagementSystem

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• Question: What’s the second easiest way to losemoney on a contract with a large company?

• Answer: Scope creep

=

Financial ManagementSystem

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DocumentManagement System

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ComplianceManagement System

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Personnel ManagementSystem

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…and it all fits together

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Enabling Technologies

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BillQuick

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• Time, Billing and ProjectManagement

• Integrated

• Reporting

• Screen Shots

TKO

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• Business Modeller• Policies• Procedures• Roles & Job Descriptions• KPI’s• Customised Manuals• TKO Documents

IdentifyingOpportunities

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• Networks and Partnerships

• Tender databases

• Commercial Tender Subscriptions

• Tenderlink

• Australian Tenders Federal, State & LocalGovernment

• AusTender – Australian Government

• Achilles

Successful Tenders

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Factors For Success

• Is this tender “real”?

Position Compliance Capability Price

Who’s your partner?

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Who’s my partner?

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• Laboratory

• Hydrogeologists

• Equipment supply

• Equipment Rental

• Noise and vibration specialists

• Air quality specialists

• Soil specialist

• Ecology specialist

• Tradies

Where do you network?

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• Who is in your circle ofinfluence?

• Who is in your partner’s circle ofinfluence?

• Who is in your client’s circle ofinfluence?

• Who can add value to youroffering?

Contacts

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• Mining for Business –www.miningforbusiness.com.au

• 4T Consultants –

www.4t.com.au• @bronwynreid #smallcompanybigbusiness

• Mining For Business

• Mining For Business