Presenting Process Systems Design Costs to Executives and Internal Stakeholders
When it comes to appealing to the C-suite, it is always difficult to justify expenses, even when the pay-off seems obvious. As a plant manager, you are probably familiar with this frustration. You need funding for a process systems design project, but the internal powers-that-be are blocking your project because they don’t understand the benefits it will bring.
This post will teach you how to create a stronger presentation of costs justifications, resulting in a greater likelihood for internal stakeholders to invest in your project. By focusing on the guaranteed benefits of the new project, and giving an accurate up-front budget estimate, you can cut through the noise and give your stakeholders the information they need to fund your project.
Pricing: Estimating Process Systems Design Costs
What stakeholders really care about is pricing and ROI. This is why EPIC uses a Front End Loading (FEL) approach for most large-scale process systems design projects. In comparison to our competitors, who create an initial budget with minimal pre-engineering work, EPIC takes the time to answer essential process design questions to create a reliable project management timeline and budget. This results in a much better representation of true costs. EPIC’s FEL approach gives you a refined or totally fixed bid that will allow you to tell stakeholders precisely what they are investing in.
NOTE: Process engineering consultants know that fixed bid quotes are not realistic for all project quotes, and consultants can also do a rough order magnitude (ROM) quote if the project has a lot of variables or has a far off completion date. A ROM is still a highly accurate estimate that will give your stakeholders all of the information they need to make a decision but will allow you to give a presentation without having to do any pre-engineering work or before having to make too many decisions.
Simplify Pitches With Top-Down, Data-Based Reports
If you’ve worked with process engineering consultants to obtain a comprehensive pricing quote, the next step is figuring out how to strategically present this information to your stakeholders in the most efficient way possible.
When making a presentation of any kind to busy decision-makers, you should start with the main point or “ask” first, and then expand with your argument and supporting evidence. Why? Because being direct makes you appear more confident in your convictions, wastes less of the executive’s time, and allows them to accept the idea quickly if they are already on board and don’t need any convincing. Droning on about statistics and details without giving a clear picture of what you’re asking for will frustrate the person you’re asking.
So, a good presentation might look something like:
The Ask: I believe we should invest $5 million in a process plant expansion to meet the growing market demand for our product.
Argument: Our current process design is outdated, inefficient and incapable of meeting the current market demand, let alone the growing market demand.
- Funding this project will allow us to capitalize on growing market demand and double our ROI over the next five years
- Funding this project now will allow us to stay ahead of our competition in the market
Remember, you don’t want to overwhelm your stakeholders with too much data. A few specific data points are necessary and can win your argument, but you might lose your audience if you get too technical. Keep it simple but stay ready to answer additional questions.
Get From Process Engineering Consultants
Coming up with the definitive information you need in order to present a project proposal is difficult to do on your own. No matter where you are in the project management process, EPIC can help you create a comprehensive presentation with the right information.