© the delos partnership 2007 page 1 integrated enterprise leadership implementation

© The Delos Partnership 2007 page 1

Integrated Enterprise Integrated Enterprise LeadershipLeadership

Implementation


Integrated Enterprise Integrated Enterprise LeadershipLeadership

AACCTTIIOONN

AACCTTIIOONN

Week 1 Week 2 Week 3 Week 4

InnovationReview

InnovationReview

CustomerDemandReview

CustomerDemandReview

SupplyPlan

Review

SupplyPlan

Review

PriorityReview

PriorityReview

Stage 1Stage 1

Stage 2Stage 2

SeniorTeam

Review

SeniorTeam

Review

Stage 5Stage 5

Stage 7Stage 7

Stage 3Stage 3

SupportReview

SupportReview

Stage 6Stage 6

Stage 4Stage 4


Integrated Enterprise Leadership Integrated Enterprise Leadership ImplementationImplementation

AUDIT

Workshopforkey

people

Organiseand

createTeams

UnderstandAnd prepare

Workshop(s)FacilitationFor Design

Team(s)

Develop

Pilot andrun

7 Stageprocess

Extend to wholebusiness and

refine

Implement

Month 1 Month 2 Month 3


The MechanicsThe Mechanics1. Assessment of current practice2. Cost/Benefit Analysis3. Educate the management team4. Organise and assign resources 5. Workshop(s) for Project Team and Task Teams

Define: Families - process vs. product Volume and unit of measure Planning horizon Performance measurement and accountabilities

Define process steps - monthly timetable, review groups, agenda

6. Pilot one family or one business then rapidly add the rest7. Evolve the process


Stage One - AwarenessStage One - Awareness

AUDIT

WorkshopForKey

people

Organiseand

CreateTeams


Workshop(s)For

Team(s)

Develop and Extend

Pilot andRun

7 stageprocess

Extend to wholeBusiness and

Refine

Implement

Month 1 Month 2 Month 3Awareness


Cost/Benefit analysisCost/Benefit analysis

Year 1 Year 2 Year 3

Cash Flow Benefit

£ 3.55 m £ 3.55 m

Costs £ 1.55 m £ 0.17 m £ 0.17m

Net Benefit - £ 1.55 m + £ 3.38 m + 3.38 M

Assuming 12 month implementation cycle


Benefits Seen by some companiesBenefits Seen by some companies

Customer service• ICI Agrochemicals from 60 % to 95 % plus

• Cray Valley from 40 % to 95 %

• Sanofi Aventis Tablet plant 50 % to 95 %

• Interbake from 90 % to 98 %

• Scott’s from 91.7 % to 97.8% on all products

• Cast-Fab and Eclipse held high customer service levels while sales increased by 40 %

• Levi’s from 80 % to > 95 %



Inventory• ICI Agrochemicals reduced Finished Goods inventory by 30 % [£ 27 mn]

• Cray Valley by 30 %

• AGFA from 120 days to 40 days

• Amcor cut inventory by 40 %

• Coca-Cola reduced inventory by 56 %

• Scotts reduced inventory by $ 100 m or 33 %

• Levi Strauss EMEA 30 %



Planning Performance• Forecast accuracy improved at Sara Lee

• Forecast Accuracy at Coca Cola improved by 9.7 %

• Production Plan performance by family of at least 95 % achieved by AGFA, Amcor, Cast-Fab, Coca Cola midi, ICI Agrochemicals, Cray Valley. Norse Dairy Systems

• Supplier Delivery performance of 95 % plus achieved by most companies

• Levi Strauss Forecast Accuracy by 35 %


Initial EducationInitial Education• Principles of Integrated Enterprise Leadership

One set of numbers Teamwork Common sense It’s a formal process not a meeting Strategic not operational

• Build the understanding of a broad group of the impact on the business

Reorganise some existing processes Improving and formalising communication Longer term view, and not fire-fighting Integration of all business processes


Stage Two- OrganisationStage Two- Organisation

AUDIT

WorkshopForKey

people

Organiseand

CreateTeams


Workshop(s)For

Team(s)

Develop and Extend

Pilot andRun

7 stageprocess


Refine

Implement


Organisation


Implementation ResourcesImplementation Resources Executive Sponsor Project Leader

Responsible for implementation Full-time Continuing role

Process Step owners Responsible for process development Continuing role

Integration Team – cross process Process ‘Design Teams’ with cross functional

membership


Process Step OwnersProcess Step Owners

SENIORTEAM REVIEW

PRIORITY PROCESS

INNOVATION

CUSTOMERS

SUPPLIERS

SUPPORT ACTIVITIES


Role of Process OwnersRole of Process Owners

•Ensure full development of the process•Chair the process meetings •Develop process in line with workshops

Inputs/outputs Performance measures Team members

•Keep to the plan•Long term process development•Provide enthusiasm and knowledge for ideas


Process OwnersProcess Owners

• It is impossible to evolve the process without someone to supervise and manage the process who makes the connection between the technical teams and the supporting functions

• This process owner is not necessarily the person who is most expert in a particular function, but they must be able to understand the requirements and how to use the technology in the day to day business

• This person must be sufficiently respected within the organisation to be able to make decisions. They must be best placed to develop and put in place new and simpler processes, and to negotiate the balance between operational objectives and technical requirements.


Roles of Process TeamsRoles of Process Teams• Review current processes• Review software and data aspects

Develop families Develop rationale for horizon Develop links to MPS, financials, etc.

• Develop data• Develop roles and responsibilities• Document procedures• Review linkages to other steps and existing business

meetings• Identify and define Key Performance Indicators• Review behavioural requirements

Honesty, trust Real team work


Process Team RoleProcess Team Role

VISION

VISION

STRATEGY

STRATEGY

PROCESSTEAMS

WORKINGSOFTWARE

DETAILEDPOLICIES

ANDPROCEDURES

DETAILEDROLES

CULTURE

DETAILED

KPIS

FORECASTING

CUSTOMERSERVICE


Stage Three - KnowledgeStage Three - Knowledge

AUDIT

WorkshopForKey

people

Organiseand

CreateTeams


Workshop(s)For

Team(s)

Develop and Extend

Pilot andRun

7 stageprocess


Refine

Implement


Knowledge


Cascade educationCascade education

ProcessOwners

INNOVATION

CUSTOMERS

PRIORITy

Process Users

SENIORTEAM

EXTERNALEXPERTISE

SUPPORT

SUPPLIERS


Internal Education and Workshop(s)Internal Education and Workshop(s)

• Objectives Get everyone to the same level of understanding

It is a process not a meeting It is strategic not short term firefighting It needs honesty, trust etc.

Design the process steps Innovation Review Demand Review Supply Review Support Review and Priority Review Senior Management Review

Review links to existing activities Review culture issues and measures


Framework for Process ReviewFramework for Process Review

ProcessInputs Outputs

People

Culture Measures

System


Framework for Process ReviewFramework for Process Review

Process NameProcess NameInputsInputs Purpose/AgendaPurpose/Agenda OutputsOutputs

PeoplePeople Desired CultureDesired Culture MeasuresMeasures

Systems to support this stepSystems to support this step

Link to otherLink to other

ProcessesProcesses


Cascade educationCascade education

ProcessOwners

INNOVATION

CUSTOMERS

PRIORITy

Process Users

SENIORTEAM

SUPPORT

SUPPLIERS


Internal Education and TrainingInternal Education and Training

• Objectives Everyone understands the new process Clarify process and culture changes Training in use of systems Understanding of Performance Measures Clarify links between functions and process steps

• Outcome Understanding of all aspects of Integrated Enterprise

Leadership Readiness for new ways of working


Internal EducationInternal Education• Carried out by Process Owner• Supported by expert as necessary• Explain to everybody why• Engage in new ways of workingFormality

Agendas Agreed timetable

• Reinforce culture• Explain Performance Measures


R&T Top Level R&T Top Level ProcessProcess

Categorise to identify operations Related Projects

Update central document showing project status and

impact on operations

Convert project data into

operations impact

R&T Project Managers

Collate/generate new ideas for R&T projects

Review progress

To Operations Innovation

To Customer Demand Planning

To Supply Planning Phase


R&T R&T PROFORMAPROFORMA

• Changes since previous cycle must be highlighted

Project Description Part Number Affected Change Embodiment Point MRP Status

HVOF All with Chrome Change process - assume same load Jan-06 no action until 05

High Speed Machining Jobs on profiler assume all runs on profiler half Jan-05 no action until Jun04

Project Description Resource Affected Impact MRP Status

Project Description Project Owner Start Date Estimated Application DateHVOF JT - velizy Oct-03 Jan-06High Speed Machining CS - Glos Jan-03 Jan-05

Projects with Ops content:

Impact on Ops:


Integrated Enterprise Leadership Integrated Enterprise Leadership ImplementationImplementation

AUDIT

Workshopforkey

people

Organiseand

createTeams


Workshop(s)For Design

Team(s)

Develop

Pilot andrun

7 Stageprocess

Extend to wholebusiness and

refine

Implement



Pilot the processPilot the process

• Choose one product family or business area• Run through the full seven step process for one or two

months• Review success of each step and refine/improve• Review impact on rollout• Finalise software and data requirements• Build enthusiasm for the ideas

Rolling business plan Long term view not fire fighting Improved communication Fewer ad hoc meetings


Extend the process to the whole Extend the process to the whole businessbusiness

• Make Integrated Enterprise Leadership the business process

• Move to new process as soon as possible For all product families For all business units For all functions/processes

• Avoid the permanent project syndrome


Step Five - CompetencyStep Five - Competency

AUDIT

WorkshopForKey

people

Organiseand

CreateTeams


Workshop(s)For

Team(s)

Develop and Extend

Pilot andRun

7 stageprocess


Refine

Implement


PrepareBudget

from IELProcess

Competency


Global Integrated Enterprise Global Integrated Enterprise Leadership Leadership

1. Create Global Team, with local people2. Create a generic model or template3. Create local teams – local ownership4. Adapt the generic model to local

environment5. Pilot locally6. Aggregate and carry out a global pilot7. Operate the global process


Global Integrated Enterprise Global Integrated Enterprise LeadershipLeadership

TemplateTemplate

Global TeamGlobal Team

Local ModelLocal Model Local ModelLocal ModelLocal ModelLocal Model

Local TeamLocal Team Local TeamLocal TeamLocal TeamLocal Team


Multi-Level Integrated Enterprise PlanningMulti-Level Integrated Enterprise Planning

Week 1 Week 2 Week 3 Week 4

DemandPlanning

DemandPlanning

DemandPlanning

DemandPlanning

DemandPlanningCustomer

New ActivityReview

Innovation

Innovation

SupplyReview

SupplyReview

SupplyReview

SupplyReview

FinancialPriorities

ConsolidatedRecocniliation

FinancialPriorities

CorporateReview

SeniorTeam

Review

GLOBAL

LOCAL

LEVEL 1Country/Market

LEVEL 2Region/Business

Unit

LEVEL 3Europe/

Global HQ


Cascade education – Cascade education – globally and locallyglobally and locally

LocalLocal

ProcessOwners

SENIOR TEAM

INNOVATION

CUSTOMERS

PRIORITy

SUPPORT

SUPPLIERS

Process Users

GlobalGlobal


The global challengesThe global challenges

• Discipline across the organisation

• Common systems

• Common definitions

• Single source of information

• Timing of meetings

• Timeliness

• Leadership


Implementation – the key issuesImplementation – the key issues

• Commitment of top team• One single agenda – apart from running the

business• Availability of data and data formats• Resources to implement• No conflicting initiatives• Willingness to link into budget


Integrated Enterprise LeadershipIntegrated Enterprise Leadership

Success depends on:

• Commitment from the Top Team• Everyone’s understanding

It is organised common sense It is a process not a meeting

• Preparation of the process• Desire to make it work• Seeing this as the way to make the budget


Critical Success FactorsCritical Success Factors

• Leadership from the top• Simplicity of approach• Education led by example• Early Pilot and rapid roll out

Delay is the enemy of success• Enthusiasm, dedication and knowledge of the

Executive Sponsor and Project Leader• Avoiding initiatives


Senior Management’s roleSenior Management’s role

• Show real enthusiasm• Lead the knowledge transfer process• Insist on everyone's participation• Make sure clear decisions are made and

immediately communicated• Ensure that all the right participants attend• Persevere with desire for integration

Be a participant, not a spectator


Leadership Leadership Leadership Leadership

Simplification Simplification Simplification Simplification

Control Control Control Control

UnderstandingUnderstandingUnderstandingUnderstanding

Progress to LeadershipProgress to Leadership

ChaosChaosChaosChaos

Process ImprovementProcess Improvement

People Impro

vement

People Impro

vement

Systems ImprovementSystems Improvement

© the delos partnership 2007 page 1 integrated enterprise leadership implementation

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