What is a Transformation Plan?

VAZT’s Functional Transformation Plans describe taxonomies and methodologies that facilitate development of process improvement initiatives designed to increase operational effectiveness and efficiency. Outcomes of each Transformation Plan are tied to specific corporate goals and objectives. Utilization of the prescribed taxonomies and methodologies enable development of a well defined roadmap that is clearly linked to common goals and objectives. Phase I of each Functional Transformation Plan requires an accurate Situation Assessment.

The situation assessment provides essential reference data for the ensuing stages. During this baseline process, a vision statement, mission statement and statement of guiding principles will be established and reinforced. Fulfillment of the Situation Assessment phase ensures that everyone involved is on the "same page". Goals will be established; critical success factors and barriers to success will be identified; and a timeline will be mapped to initiatives to facilitate timely execution and periodic evaluations.

Phase II of the Transformation Plan will compare current state, cost metrics to an "open source" benchmark database. After careful evaluation of defined Functions, a "cost benchmark" or internal cost data point will be established. Functional sub-process cost metrics and FTE’s will be calculated and compared to how other companies are performing that function and sub-process in terms of dollars and FTE’s.

Phase III will involve analysis based on the information gathered in Phase II; subsequent best practice recommendations for streamlining processes; and development of an Activity Based Cost model aligned with corporate goals and objectives. Fulfillment of this phase provides foundation for the decisions to be made about service delivery models in Phase IV.

Phase IV will include evaluation of service delivery models, consideration of viable alternatives that meet specific criteria. Factors such as cultural alignment and global presence will be addressed. Options to include:

Phase VI The activity based cost model will be used in the development of a plan to source prioritized critical and non-critical processes and activities. An RFP will be developed to solicit proposals from service providers. Proposals will be evaluated. Phase VII. If the decision to outsource is positive, VAZT will assist in the BPO contract negotiations; establishment of provider service level agreements, contract terms and conditions, BPO Transformation metrics, and ongoing provider management and measurement.