© the delos partnership 2007 page 1 integrated enterprise leadership issues and the delos model as...
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© The Delos Partnership 2007 page 1
Integrated Enterprise Integrated Enterprise LeadershipLeadership
Issues and the Delos Model as a solution
© The Delos Partnership 2007 page 2
Managing the constraintsManaging the constraints
Project Budgets
Customer Service –OTIF
DevelopmentCosts
Development Flexibility
© The Delos Partnership 2007 page 3
Vertical Functional OrganisationVertical Functional Organisation
MDMD
SalesSales MarketingMarketing TechnicalTechnical OperationsOperations FinanceFinance HRHR
R& D
R& D
MKTG
MKTG
SALES
SALES
OPS
OPS
ACCTS
ACCTS
HR
HR
Directors
Managers
Supervisors/Team Leaders
© The Delos Partnership 2007 page 4
The “dysfunctional company”The “dysfunctional company”
• Sales agreeing to new products regardless of the consequences on the supply chain
• Marketing developing products which are wonderful int theory but hopeless in practise
• Manufacturing ignoring the need to produce new products – they get in the way.
• Engineering developing products using parts which the purchasing department cannot easily source
• Finance complaining about project overruns• When anything goes wrong the finger points to someone
else.• Everybody believes that anybody would see that it is
somebody else’s responsibility, but nobody does what needs to be done
© The Delos Partnership 2007 page 5
Everybody, Somebody, Anybody, And Everybody, Somebody, Anybody, And NobodyNobody
This is a little story about four people named Everybody, Somebody, Anybody, and Nobody.
There was an important job to be done and Everybody was sure that Somebody would do it.
Anybody could have done it, but Nobody did it.
Somebody got angry about that because it was Everybody's job. Everybody thought that Anybody could do it, but Nobody realized that Everybody wouldn't do it.
It ended up that Everybody blamed Somebody when Nobody did what Anybody could have done
© The Delos Partnership 2007 page 6
The Delos ModelThe Delos ModelFor Business Integration For Business Integration
InnovationInnovation
VisionVision
StrategyStrategy
PrioritisationPrioritisation
DemandDemand
SupportSupport
SupplySupply
© The Delos Partnership 2007 page 7
Objectives of Integrated Enterprise Objectives of Integrated Enterprise LeadershipLeadership
• Vision and Strategy supported by :• One set of numbers at all times
• Integrated Plans• Realistic Plans
• Visibility and transparency [3-5 years]• Teamwork• Decisions made in timely fashion• More planning, less fire-fighting• Consistent performance measures• Delivery of the strategy• Top Down and bottom up
© The Delos Partnership 2007 page 8
Vision examplesVision examples
“ I believe we possess all the resources and talents necessary. But the facts of the matter are that we have never made the decisions or marshaled the resources required for such leadership. We have never specified long-range goals on an urgent time schedule, or managed our resources and our time so as to insure their fulfillment.
I believe that this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to earth”
© The Delos Partnership 2007 page 9
Suppliers’ Suppliers’ BargainingBargaining
PowerPower
Threat
of
Threat
of
NewNew
supplie
r
supplie
r
ss
Customers’ Customers’ BargainingBargaining
powerpower
Industry Industry competitive competitive
situationsituation
The strategic forces of competitionThe strategic forces of competitionProduct
Product andandService
Servicesubstitutio
substitutionn
Freedom
FreedomOfOf
Employee
Employee
movem
ent
movem
entGove
rnm
e
Govern
me
ntnt
Legis
latio
n
Legis
latio
n
© The Delos Partnership 2007 page 10
Strategic ChoicesStrategic Choices Operational Excellence – Cost Operational Excellence – Cost
LeadershipLeadership
Customer Intimacy – Customer Customer Intimacy – Customer LeadershipLeadership
Product Leadership – Technology Product Leadership – Technology LeadershipLeadership
Difference in FocusDifference in Focus
Sales Marketing Finance Manufacturing Design
CustomerIntimacy
Frequent contact. CRM a key tool. Quick response.Customer is king.
Intense understanding of customer needs. Tailored approach.
Focus on total long-term value of customer, an not profit per unit.
Flexible strategy. Mass customisation.
Custom configuration; focus on customer.
Operational Excellence
Focus on key customers; product focus and not customer focus
Standard product for all customers. limited range. Simple brand
Utilisation key, and manage carefully to minimum cost
Limited product range; efficiency is the watchword.
Limited range of core products. Design not a key element of the proposition
Product Leadership
Persuades to take new products, rather than old.
Focus on the new products, and constant brand development around technology
Project costing and management key, with focus on Product Lifecycle management.
Capable of managing disruption of new products, first of kind etc.
Key element of the strategy, and constant need to develop new ideas.
© The Delos Partnership 2007 page 11
© The Delos Partnership 2007 page 12
Workshop – where are you now and Workshop – where are you now and where are you going ?where are you going ?
NOW Five years time
CustomerIntimacy
% %
Operational Excellence % %
Product Leadership % %
© The Delos Partnership 2007 page 13
Leverage our Product P
and Product L assets
Protect and expand our
Product Family F
franchise
Grow our Product Family B business
Develop / acquire
innovative products and technologies
Achieve a profitable leadership position in
key countries
Derive 70% of company sales from top 10 markets by 2006
Maintain our leading position in S. America & France, Canada, UK, and Italy
Optimize public policy, regulatory, and communications to drive growth
Finalize Corea market strategy by 2003
Articulate a new Branding strategy
Meet timelines on bulk mfg. facility and packaging outsourcing for Bd
Acquire market knowledge in key countries
Develop/acquire Product Bk
Ensure launch of Bd Child by 2008
Develop ATO strategy
Develop Product P end-game strategy that maximizes Industrial utilisation
Accelerate the conversion from extP to intP
Consolidate and optimize ATO strategy to support Product P end-game and extP conversion
Slow competitor XX uptake in US
Develop comprehensive product delivery strategy
Institutionalize the Technology Visioning process
Ensure appropriate upstream / downstream balance
Ensure full alignment of Sales, Development, Legal Affairs and Marketing activities
Implement Goodwill optimization organization
Maximize existing assets for Product Fa and Fc
Ensure leadership in Family F delivery systems
Ensure optimal
capacity, quality and customer
satisfaction
Develop/ Upgrade Quality systems to ensure 50% yearly reduction in rejects and rebuild
Maximize utilization of existing capacity
Achieve Delos Platinum level at all sites
Implement Delos Global Integrated Enterprise Leadership
Explore continuous improvement approaches
Defend, and then expand, our leadership position through sustainable profitable growth.
Launch Product N
and Product M in 2005; >50% of sales
from new products by
2012
Achieve all critical path milestones to ensure 2005 launches
Complete Product N and product M pre-launch activities
Upgrade sales and marketing competencies for adult markets
Develop trust and transparency between IO and R&D groups
implement programs to accelerate the product development process.
Maximize our key assets
Continue to develop and implement e-strategies to enhance the effectiveness of Company corporate strategy.
Align our capacity and capital investment with our strategy.
Rapidly upgrade our
technical and leadership
competencies
Aggressively fill the competency and values gap
Become a truly global organization
Empower through broad spans of control in a flat organization
Differentiate rewards and career opportunities based on performance
Regain our leadership position Regain our leadership position in product development and in product development and
approval approval Reliably supply quality XXX Reliably supply quality XXX Foster a culture that Foster a culture that
demands excellence demands excellence Continue to lead in Continue to lead in
marketing and sales marketing and sales
© The Delos Partnership 2007 page 14
TeamworkTeamwork
With a common vision and a strategy there is a chance to develop common
Objectives
Commitment
Team direction
WorkshopWorkshop
What are the requirements for ensuring teamwork within an organisation
© The Delos Partnership 2007 page 15
© The Delos Partnership 2007 page 16
Suppliers’ Suppliers’ BargainingBargaining
PowerPower
Threat
of
Threat
of
NewNew
supplie
r
supplie
r
ss
Customers’ Customers’ BargainingBargaining
powerpower
Industry Industry competitive competitive
situationsituation
The forces of competition changeThe forces of competition changeProduct
Product andandService
Servicesubstitutio
substitutionn
Freedom
FreedomOfOf
Employee
Employee
movem
ent
movem
entGove
rnm
e
Govern
me
ntnt
Legis
latio
n
Legis
latio
n
© The Delos Partnership 2007 page 17
Integration of Processes and ToolsIntegration of Processes and Tools
Strategic Review
IEL Review
Demand Plan
Master Schedule
Project Plan
MRP/CRP/
Activities
WTL/
Orders/
Tasks
How Often Yearly Monthly Weekly Daily Hourly
Who Board Board Managers Computer Computer
Units £’s Families Families/
Products
Parts/
Activities
Parts/
Tasks
Horizon 5 years 3 years 2 years 2 years 2 years
Focus 3-5 years 0-3 years 0 to Cum Lead Time
0 to Cum Lead Time
Part Lead Time
Time buckets
Years Months Weeks Days Hours
DetailDetail
© The Delos Partnership 2007 page 18
CCUUSSTTOOMMEERRSS
CCUUSSTTOOMMEERRSS
Processes link customers to suppliersProcesses link customers to suppliers
SSUUPPPPLLIIEERRSS
SSUUPPPPLLIIEERRSS
CoreCoreCoreCore
VisionVisionAnd StrategyAnd Strategy
VisionVisionAnd StrategyAnd Strategy
SupportingSupportingSupportingSupporting
FinanceFinanceFinanceFinance
Human ResourcesHuman ResourcesHuman ResourcesHuman Resources
Information TechnologyInformation TechnologyInformation TechnologyInformation Technology
Product DevelopmentProduct DevelopmentProduct DevelopmentProduct Development
Business WinningBusiness WinningBusiness WinningBusiness Winning
Customer Order FulfillmentCustomer Order FulfillmentCustomer Order FulfillmentCustomer Order Fulfillment
After Sales ServiceAfter Sales ServiceAfter Sales ServiceAfter Sales Service
Integration of people, process and Integration of people, process and toolstools
© The Delos Partnership 2007 page 19
© The Delos Partnership 2007 page 20
IntegrationIntegration
Mission, values, and envisioned future
OperationalRequirements
Business of The Future
Winningbusiness
Strategy, SWOT, Critical success factors,
Measures, responsibilities
Strategy, SWOT, Critical success factors,
Measures, responsibilities
Integrated Operational Plan for all of the functions in the business
ProgrammeManagement
OperationsManagementContract
delivery
Tactics, Detailed plans, Measures, Development
Plans
Tactics, Detailed plans, Measures, Development
Plans
Delivery of requirements for
customers and shareholders
Delivery of requirements for
customers and shareholders
LearningAnd
DevelopmentPerformanceManagement