Proposal for External Pacemaker Engagement

Dear ????

Thank you for your interest in implementing the My Business Excellence (MBE) approach to business transformation for reaping the maximum possible net benefits in the shortest possible time-frame.

The intent of this proposal is to clarify my role as your preferred external Pacemaker during the first 2 years, and to set out the financial and other implications of my engagement for your consideration.

  1. My Relevant Background and Experience in Brief

(For you to complete – suggestyou copy your profile [with photo] from the Pacemaker website. That should be ideal for this purpose)

  1. The Pacemaker Analogy

The role of a Pacemaker is analogous to the role of a medical pacemaker in that the rhythm at the heart of the implementation must be maintained throughout, particularly during the first 1-2 years.

  1. My Pacemaker Role

The MBE approach has been designed to implement comprehensive Business Excellence in a simple and fixed linear sequence. This sequence is crucial to ensuring that by the end of Year 1, the business will have achieved savings that far exceed all costs incurred to date – including the costs of my engagement.

The overall implementation sequence will be guided by me as your appointed external Pacemaker. I will set things up initially and then help you and your peoplestay on track with the overall implementation.

Here is a detailed description of my Pacemaker role over 2 years…

  1. Work ‘hand in glove’ with the Excellence Leader (you) to champion theMy Business Excellence approach and ensure that by the end of Year 1, the business has rigorously completed all Chainlinks and Tasks specified in all 5 Prerequisites of the Portal – ready for ongoing implementation and further dramatic net benefits beyond Year 1.
  2. Configure and manage authorised access to the Portal by appropriate employees
  3. Guide the business in following all the detailed instructions of the Portal
  4. Undertake the specified role of Facilitator for every scheduled event where a Facilitator is required
  5. Assist the Excellence Leader (you) to conduct each mini-review of progress to be held at the same designated time every month – with the aid of the Management Information System (MIS) embodied in the Portal
  6. Train the designated Process Managers and Objective Owners in:
  7. Using the Portal to execute their respective responsibilities
  8. Updating the Portal’s Management Information System (MIS) every month following each mini-review
  9. Assist Process Managers with sponsorship of all FPI projects and BPR projectsand hence in completing the template for their respective 1-page Project Briefs
  10. Assist Process Managers and Project Coordinators in estimating the net financial and other benefits of all completed FPI and BPR projects via the standard spreadsheet template provided
  11. Show how the business can keep track of the cumulative overall ‘Benefit to Cost’ ratio of all process improvement projects completed to date
  12. Coach key staff in how to configure and use SmartDraw software in order to:
  13. Manage and track progress each month against the scheduled Actions and KPIs for each Strategic Objective resulting from the inaugural 2-day Strategic Planning Workshop undertaken by the senior management team during Months 1-2
  14. Overview and monitor the scheduled implementations of all FPIprojects plus the single BPRproject – with focus on timely execution of the requiredActions
  15. Produce a flowchart for each keyprocess of the business, and link the flowchart automatically (with one click) to the organisational chart and to the associated job maps / descriptions (with one click) of the process participants
  16. Link ‘best practice’ operational knowledge automatically to individual process steps, thereby dramatically improving training effectiveness and efficiency
  17. In Year 2, undertake the following:
  18. Facilitatethe annual 1-day Strategic Planning Workshop to ‘roll forward’ the existing 3-year Strategic Plan by 12 months
  19. Organise and facilitateall other Critical Events of Year 1, minus all FPI activities
  20. Provide Portal coaching support to the Users when needed.
  21. Provide SmartDraw coaching support to the Users when needed.

By the end of Year 2, you should no longer need my Pacemaker services. These techniques should automatically become part of ‘business as usual’.

  1. Your Role as Excellence Leader

Working closely with me from the outset, you will play the role of the organisation’s overall ‘Excellence Leader’. This crucial role is as follows.

  1. Manage the Portal Subscription account, the SmartDraw licence account plus this external Pacemaker engagement
  2. Overtly champion the pursuit of the My Business Excellence approach at every opportunity
  3. Follow the Portal instructions to ensure up front ‘buy-in’ by the full Management Team
  4. Work intimately with the Pacemaker to keep the entire implementation schedule of events for Years 1 and 2 (and beyond) on track – especially during the first 10 weeks
  5. Hold Process Managers and Objective Owners accountable for their agreed roles
  6. Learn from the Pacemaker how SmartDraw can be used for managing Project Management tasks and accountabilities
  7. Learn from the Pacemaker how SmartDraw’s Visual Process Management (VPM) capability can be used to manage and edit processes and the associated knowledge attributes, automatically linking the organisation chart, individual job maps and process flows
  8. Ensure that the resultant VPM model progressively becomes the organisation’s default Quality Management System (QMS) for staff training purposes – and is kept up to date
  9. Assistedby the Pacemaker, conduct the Management Team’s mini-review of progress to be held at the same designated time every month – utilising the MIS embodied in the Portal
  10. Be prepared to devote up to 20% of available time on the specified tasks during the first 3 months
  1. Role of the Portal

The Portal contains detailed instructions for the Pacemaker on how to run every step of the implementation -including how all workshops should be facilitated. It also specifies clearly what you and your key staff members will be responsible and accountable for, including maintenance of all data feeding into the in-built Management Information System (MIS).

Every month, this powerful and super-focused MIS will be used to monitor both strategic and operational performance to date and to reflect any necessary adjustments. It is the only MIS your business should ever need.

Maintaining access to the MIS is the main reason for you to maintain your annual subscription to the Portal beyond Year 2. Maintaining your Portal subscription also guarantees ready access to all the IP of the MBE approach, together with the latest updates.

  1. Implementation Schedule for Year 1

The following chart extracted from the Portal sets out the key events that form the backbone of the implementation. You can be confident that Business Excellence capability will be developed well within your first year by following and properly executing this prescribed implementation sequence.

  1. Pacemaker Time Commitments and Costs for Year 1

My fixed time commitments and costs for Year 1 are as follows. These time commitments will not be exceeded unless additional support services are requested by you, the Excellence Leader.

Setting up the organisation’s multiple Users of the Portal via logins: / 1 FTE day
Organising and facilitating the Critical Events depicted in the above schedule: / 20.5 FTE days
Providing Portal coaching support to the Users when needed: / 2.5 FTE days
Providing SmartDraw coaching support to the Users when needed: / 5 FTE days
TOTAL for Year 1: / 29 FTE days

My professional fees for Year 1 will thus progressively build to 29 days @ AUD$??? per day = AUD$??? including local taxes. (Please note that my daily fee rate has been reduced to reflect the extended nature of this engagement over 2 years.)

In addition, any expenses necessarily incurred in carrying out the engagement in Year 1 will be on-charged at cost.

  1. Pacemaker Time Commitments and Costs for Year 2

Since your business will be proficient in facilitating and managing several of the repeating events in Year 2, my Pacemaker time commitments are much less than for Year 1.

My fixed time commitments and costs for Year 2 are as follows. As for Year 1, these time commitments will not be exceeded unless additional support services are requested by you, the Excellence Leader.

Organising and facilitating the Critical Events of Year 1 – minus all FPI activities: / 13.5 FTE days
Providing Portal coaching support to the Users when needed: / 1 FTE day
Providing SmartDraw coaching support to the Users when needed: / 3 FTE days
TOTAL for Year 2: / 17.5 FTE days

My professional fees for Year 2 will thus progressively build to 17.5 days @ AUD$??? per day = AUD$??? including local taxes.

In addition, any expenses necessarily incurred in carrying out the engagement in Year 2 will be on-charged at cost.

Again please note that my daily fee rate has been reduced to reflect the extended nature of this engagement over 2 years. It will remain fixed at this reduced level throughout.

  1. Monthly Billing Schedule

Engaging me over 2 years would be a substantial business commitment if you had to pay for it ‘up front’ – even though the benefits will far exceed the costs. Therefore, I include two important features of this proposal that are designed to minimise any perceived risks for you in going ahead:

  • I will bill you monthly for the work undertaken (plus any expenses) during the previous month. There is no need for ‘up front’ payment. In billing monthly, I will ensure that the days charged will match the fixed number of days specified above. Monthly billings in small amounts will avoid adverse impact on your organisation’s cash flow.
  • You may terminate this ongoing engagement by giving me 2 weeks noticeif at any stage you feel that the business is not getting sufficient net value from my input.

In short, you have everything to gain and nothing to lose.

  1. Knowledge Transfer

My Pacemaker role has been designed to effectively transfer Business Excellence knowledge to you and your organisation as soon as possible. However, you might like to add one other feature to help in this regard.

I recommend that you carefully choose one capable and willing employee to ‘understudy’ (part-time) my role over the full 2 years. Then, when my formal engagement ceases, he / she can formally assume the role of ‘internal’ Pacemaker assisting you to maintain the approach.

This would also constitute a fantastic development opportunity for this employee, because they will become intimately familiar with the ‘How To’ details of the world class MBE approach.

  1. Your Business’ Portal Subscription

You will need to purchase your Portal subscription direct from the MBE website. The annual payments of AUD$2400 (if the Client is located outside Australia, there is no need to mention local taxes here. However, if the Client is in Australia, you should add the words: “including GST” here) are payable in advance. This can best be done using your credit card. The annual amount will automatically be paid on the anniversary of your first payment.

Your initial subscription payment should be made as soon as you decide to go ahead with your MBE implementation.

  1. Purchase of SmartDraw Licences

SmartDraw software is the best known option for making implementation of the MBE approach as simple, effective and efficient as possible.

I recommend that along with my engagement, the Excellence Leader (you) should purchase a single-User licence (once only cost USD$497) - and have your nominated ‘internal’ Pacemaker become proficient in its use on behalf of the organisation as guided by me.

Towards the end of Year 1, you may need to purchase one or more extra single-User SmartDraw licences. I will advise you when this becomes necessary. Similarly, I will advise you if any further single-User licences are required during Year 2.

Eventually, you may decide to upgrade your single-User licences into a SmartDraw ‘Enterprise’ licence – for an annual cost of USD 2,997. This would enable every authorised employee of your business to access the full SmartDraw capability on demand.

??? (first name of Excellence Leader to whom this Proposal is addressed), I commend this proposal to you, and look forward to working with you and your people to transform your business for the better.

Please do not hesitate to call me (details below) if you need further clarification of any aspect.

Sincerely yours,

(your signature)