19 Oct Developing a value model for Diageo
As part of a strategic review, including setting up a shared service centre in Europe, Diageo had a need to overhaul, reorganise and standardise its processes. Developing a value model was a key element of this was to differentiate between global processes (identical across all markets), common processes (similar across all markets), and local processes (focused on specific markets).
We developed a value model, tailored for Diageo’s use, which directly linked benefits to changes. It enabled us to examine if the proposed changes were able to give rise to the specified benefits and to what extent.
Working closely with the senior management team, we designed and ran workshops focused on:
- Clarifying Diageo’s strategy and vision for change
- Confirming ‘As Is’ and ‘To Be’ organisational states
- Assessment of change programme using CITI models
As a result of this, we found that a number of projects did not have a robust business case and were therefore not being driven by their value to Diageo.
This led to CITI developing a value model tailored for Diageo’s use, which directly linked benefits to changes. It enabled us to examine if the proposed changes were able to give rise to the specified benefits and to what extent.
By running projects through the model we were able to see which projects and processes were aligned to the business benefits and which were not. Any projects which would not deliver the required benefits could then be closed. The remaining projects were then aligned into a more coherent programme of change.
The Diageo board has since demanded that the CITI approach is adopted across their business units and for all its corporate projects. Diageo estimates that across a three year change cycle they had made significant cost efficiencies.