American Gas - May 2013 - (Page 59)

Clearly explain the expected economic value. The business case should provide qualitative and quantitative analyses of the benefits the change will bring and describe both financial and nonfinancial benefits. It should also give decision makers a few improvement options to consider, detailing the preliminary options that were considered and explaining how the list of viable options was selected. This not only gives those decision makers a choice, it also helps them understand why certain options are being proposed over others. A key element that needs to be worked very diligently with the finance function and the business unit in question is the spend baseline. More often than not, there is misalignment between various groups’ perspectives on the baseline for specific categories. So it is critical to work collaboratively with stakeholders to lay out and agree on the baseline assumptions. the procurement organization a chance to show that it has done the due diligence and understands the way forward. And it can help executives recognize the potential strategic value that a transformed, advanced procurement function can bring to the utility. u Samir Khushalani is the U.S. leader of KPMG’s Procurement Advisory practice, and Patrice Maheo is a managing director in the practice. Both serve KPMG’s energy clients. The views and opinions expressed are those of the authors and do not necessarily represent the views and opinions of KPMG LLP. arkline Small Metal Buildings 1.800.786.4855 www.parkline.com Be achievable. It’s important to set up the transformation effort for success. This means letting the stakeholders understand what will be expected in terms of resources and sponsorship. The business case should spell out project- or program-management responsibilities, governance, and risk-planning processes, and identify the tactical factors that will need to be considered. One thing that is often overlooked is the question of how the improvements are going to be “encoded” into the organization. What are the rules that will govern the working relationship between procurement, the business unit, finance, and IT? How will the new processes be built into ERP systems? What spend visibility tools will be used to monitor progress toward realizing the change initiative’s expected value? In developing the business case, the procurement organization should put itself in the shoes of the business stakeholders. In the utilities industry, the leadership team is typically faced with nonstop challenges. They have a lot on their plate, and there is a limited window for considering such transformation efforts. A compelling, clear business case gives Gas T&D Enclosures Compressor Stations Auxiliary Buildings Acoustical Wall Systems Pump Buildings Meter Houses ...and more... Call today for more information! MAY 2013 AMERICAN GAS 59 http://www.parkline.com

Table of Contents for the Digital Edition of American Gas - May 2013

American Gas - May 2013
Contents
President’s Message
Subject Index
Sandy Coins Say Thanks
Digest
Issues
Update
Need to Know
By the Numbers
Places
Need to Know
Taking a Bite out of Food Truck Pollution
Canada
Capitol Hill
State House
City Hal
Safety: Getting Employees Invested
The Rails
Profile
AGA Ops Conference Preview
Procurement
Jobs
Buyer’s Guide
Marketplace
Headway

American Gas - May 2013