amcor fibre packaging - bevington group€¦ · amcor fibre packaging: australia & nz manufacturing...

www.bevingtongroup.com Business Model Design Process Improvement Change Management

Australia and NZ patents, US and Canadian Patents pending

“Transforming the Front end” - a case study

of the Grow to Win program at Amcor

Amcor Fibre Packaging

© Bevington Group. All rights reserved.

Agenda

Content

Background

The Challenge

Findings: Process

Findings: Structure

The Approach

Solutions

Implementation and Change Management

Outcomes to Date

What’s Next

Lessons Learned

2


Background

3


The Business Model

PAPER

FEEDSTOCKS

CORRUGATORS CONVERTERS DESPATCH

© Amcor 2012

PAPER

MILLS

DIRECT

DISTRIBUTORS

RESELLERS

ROUTE TO MARKET

4


Amcor Fibre Packaging: Australia & NZ Manufacturing Locations

TOWNSVILLE

SYDNEY

MELBOURNE

BRISBANE

ADELAIDE

PERTH

AUCKLAND

HASTINGS

CHRISTCHURCH

DARWIN

LAUNCESTON:

• 13 Manufacturing sites

• 9 depots

• 2300 Employees

© Amcor 2012 5


The approach

© Amcor 2012 6


We needed to take a systematic approach to the situation to gain revenue and build sustainable competitive advantage.

All three sides of this triangle must be in alignment for a business to sustain a competitive advantage.

We started with Strategic

Direction, Key Processes and

Sales Structure – because we

needed growth fast

Strategic

Direction

Sustainable Competitive

Advantage

• Products

• Markets

• Competition

• Customers

• Costs

Organisational

Competence • Processes

• Structure

• Job Design

• Accountabilities

• Staffing/Recruitment

• Culture

• Experience

• Skills

• Mindset

• Perspective

Individual

Competence

Executives and Managers must be able to realign the strategy, organisation and people.

New appointees must be aligned with the strategy, organisation and people.

© Amcor 2012 7


To achieve the objective, methods were used that combined a top down and bottom up approach

The GTW Process

Stream Vision

Exec Team

Structural View

Bottom Up

Role Analysis

Bottom Up

Process Analysis

• Debate and analysis by experts

on what tasks should be

stopped, maintained,

accelerated, reduced or

transferred to achieve strategy

• Debate and analysis by

experts on process and

handover points

• RACIs conducted to clarify role

responsibilities

• Determination of key activities needed to

deliver strategy e.g. National Account

Management, Specific roles for NBD

• Number and type of roles to achieve

Market growth opportunities

8


Clear Structural Design Principles were set from the Top

Standardisation

A Functional Approach

Strategic Imperatives

Customer focus (consistent quality & experience)

Sales staff are to be focused on selling

Cost Effective

© Amcor 2012 9


The bottom up view involved a detailed study of roles and processes via engagement with the shop floor

Data Collection by work team

Strategic Analysis Implementation

1) Representatives from each

natural work team document

the real tasks & activities

(4 hours)

2) Team members validate the

data (2 hours)

3) All team members allocate

relative time to identify the

focus of effort (2 hours)

• Build the processes

• Identify issues and

improvements

• Implement

• Measure & Documentation

to lock in and achieve

compliance

Solution Generation

• Generate practical solutions

• Quantify benefits

10


SMART analysis used to reengineer the roles and quantify the benefits

Role 3

Tasks & Activities

Apply principles to

current data according

to:

1. Structural view

2. Strategic view

3. Noise reduction

4. Discretionary

reductions

Role 2

Tasks & Activities

Role 1

Tasks & Activities

Role 3

Tasks & Activities

Role 2

Tasks & Activities

Role 1

Tasks & Activities

CURRENT VIEW TO BE VIEW

This allows us to obtain:

1. ‘What if’ FTE view of roles

Opportunity

2. Data for RACI’s

3. Data for Job Descriptions

4. Role change management plans

“SMART” Meaning

STOP Stop this task

MAINTAIN Maintain this task at its current level of

effort

ADD Start performing a new task OR increase

the level of an existing task.

REDUCE Do less of this task. Duplication. Noise.

TRANSFER Do this task in another team / outsource

(benefit in cost to perform or focus)

11


The findings: Process improvement review

12


Significant waste reduction and process improvement opportunities: 52% noise in the order to cash process, 3% core in the sales process

SALES PROCESSES ORDER TO CASH PROCESSES

Analysis revealed ample process improvement opportunities to reduce noise,

subsequently increasing time and resources available to grow the business

CSDN Legend:

•Core: Selling, Growing Business

•Support: Taking Order, Payment

•Discretionary: Checks, reports

•Noise Incomplete/inaccurate info

© Amcor 2012 13


Many people involved in capturing detailed “As Is data” and “To Be improvement ideas”

Scale of Engagement VIC/TAS NSW NZ QLD Total

Number of People

Involved 62 39 49 52 202

Number of Roles 38 22 27 23 110

Number of Process

Steps Collected 5,785 3,821 3,709 3,510 16,825

Number of Improvement

Ideas Collected 671 198 231 512 1,612

© Amcor 2012 14


The Focus of Effort analysis further highlighted how noise was keeping people away from their key tasks

Field Sales Account Manager (National Average) Customer Service (National Average)

Only 12% of time selling, with 40% of time in issue management and administration

52% of time in issue management and administration

© Amcor 2012 15


The findings: Detailed structural analysis

16


Based on the SMART analysis, we quantified the proposed savings from the Process stream with the intent to reinvest in Growth

Direct Sales Roles

Other SPS & OTC Roles

22%

Liberated by

Process

Improvement

Recruitment to

maintain future

Sales as growth

occurs

FTE Savings delivered by

Process Stream FTE Investment to deliver Strategic Growth

These role changes and FTE savings & investments

were locked in through the parallel restructure

18%

Recruitment to

maintain future

Sales as growth

occurs

40% of liberated

resource invested in

winning business.

Remainder in servicing

won business

70% of liberated resource

invested in servicing new

business. Remainder in

supporting NBD

© Amcor 2012 17


The solutions

18


In conjunction with the operating model a clear set of change imperatives were utilised to communicate the change & prioritise the improvements

Free up time from the

Sales Force

Support the effectiveness

of the Sales Force

Key the data right and

keep it right

Do the job right – on time,

quality product

Utilise the Team

Utilise the systems

CHANGE IMPERATIVE

FUTURE STATE

Account Managers spending most of their

time selling

Account Managers focussed on

profitable growth

Data you can rely on

Consistently meeting or exceeding the

expected service levels

Functional excellence through lean teaming

concepts

Systems that enables and

supports efficient process

CURRENT STATE

Account Managers focused on failure and

issue resolution

Price reviews missed, poor visibility or

true margins & NBD personnel managing

accounts

Systems full of inconsistent, Incorrect,

missing & redundant data

DIFOT & Quality as top customer issues

plus revenue leakage

Unclear roles & responsibilities & wrong

people doing the right tasks

No access for people that need it, different

regional configurations, unused

automation

© Amcor 2012 19


A 12 month roadmap was designed to manage the transition from Current state to Future state

Imperative Wave 1 (3 months)

Process quick wins

Wave 2 (3 months)

Big process changes, structural

enablers & mgmt restructure

Wave 3 (3 months)

Detailed structural trials &

system improvements

1. Free up time

from the Sales

force

• Reduce time spent in admin

& reporting

• Reduce time in issue

management

• Reduced time in quotes,

tenders and contracts

2. Support the

effectiveness of

the Sales Force

• Commence tender process

review

• Better customer service

through alignment of customer

facing staff

• Improved costing through

skilled estimators and

business rules

3. Key the data

right and keep

it right

• Initiate cleansing and

assigning data ownership

• Finalise Master Data

cleansing and procedures to

keep it clean

• Ongoing audits of data

quality and compliance

4. Do the job

right

• Improve & standardise the

Batch 1 process

• Standardised processes that

manage the exceptions rather

than the whole

• Improved NCR process that

drives continuous

improvement

5. Utilise the

Team

• Define roles and

responsibility

• Test and revise customer

teaming • Introduce customer teaming

6. Utilise the

systems

• Increase usage of auto

order placement tool • Automate system reporting*

• Improved functionality &

integration*

Wave 4 (3 months): Full restructure including the training of the new roles

and embedding the new standardised operating model

© Amcor 2012 20


Implementation

21


The implementation approached enabled collaborative development and cross regional deployment & tracking of improvements

(Project Team)

• Prioritisation of ideas

over 3 waves

• Assign idea owners

• Implementation Plan

• Metrics

(Regional Teams) (Regional Teams)

• Develop Solutions

• Continuous Feedback

• Knowledge Management

• Track metrics

• Track local progress

• Solution development

• Implementation

• Track metrics

• Track local progress

(Project Team)

• Automated reports

• Collated metrics

• Communicated progress

• Project governance

* Regional Team consists of

1 Project Team member and

the Regional Process

Owners

Idea Owners

dispersed to Regions

Solutions

refined

Input

measures

Communicate

progress

Communicate

progress

to corporate

PLAN Develop Roll out Report

© Amcor 2012 22


Each Implementation Wave focused on delivering quick wins and change enablers

• Wave 1

– 50 quick wins rolled out nationally, breaking the change inertia & generating tangible benefit

• Wave 2

– delivered larger process improvements & small system changes plus background enabling ideas to support the restructure

• Wave 3

– Operating model trials to de-risk the significant structural, behavioural, technological & process change

© Amcor 2012

23


2 trials were conducted in different regions over 3 weeks to de-risk the changes and prepare the business for the final restructure

TRIAL OUTCOMES

1. What are we doing & why?

(Territory Manager Model &

Trial Objectives)

2. How are we going to do it?

(Detailed process flows)

3. What do we need to do to

make it work? (Rules & tools)

Focus

1. Prepare for Trial

2. Conduct Trial

3. Conduct Reviews

4. Consolidate Learning

1. All sales and back office

processes defined

2. Finalised deployment version of

templates, selling aides and

finalise requirements for

supporting infrastructure &

software

3. Finalised skills matrices for all

roles and transactions

4. Agreed deployment plan,

deployment roles &

responsibilities, confirm

resource requirements, agree

risk management &

communication plans (*Required

several iterations to embed in

business)

© Amcor 2012 24


Change management

25


In-house Change Programs were conducted to help the business understand and engage in the change process

LEADING CHANGE

Program for Leaders (4hrs)

WORKING WITH CHANGE

Program for Office Based Co-

workers (4hrs)

Program for Site Based Co-workers

(1.5hrs)

To create a shared understanding of the business context

To provide an opportunity for leaders and co-workers to discuss the change

Leaders understand what role they need to play during the change

To provide practical strategies for leaders and co-workers to effectively manage the change

© Amcor 2012 26

Amcor leading change workshop - GTW edits.pptAmcor working with change workshop - GTW edits.ppt


A consistent Change Message was established across multiple forums and media

Launch

Roadshows tailored to audience - To people impacted

- To all employees

Elevator Speeches

Intranet Site

“Wall” at each site to post communications

Executive Meeting Updates

GTW Newsletter

Consistent and regular Announcements/Updates to all employees

To ensure

• Reinforcing and embedding

change

• Providing updates and sharing

quick wins and success stories

• All employees receive the

messages

• Launch and roadshows (with

video, gifts and hype) used to

build the change catalyst and

minimise resistance

27


Five GTW behaviours established to emphasise behavioural changes needed

Our customers are number one and we

work towards a common goal of improving

our customer’s business

We communicate regularly and share

information openly with each other – we

keep each other in the loop

If we see something that needs to be

done, we do it

We will do what we say we are going to do

– for customers and for each other

We are consistent across the business in

everything we do

© Amcor 2012 28


Outcomes to date

29


We are receiving positive feedback on the implementation, tools and changes

VOICE OF THE

EMPLOYEE

“Thanks to the

Transformation Project, I

am now executing the

principles of active

management by making

it a priority to walk the

floor more often “

“I was delighted that I was

able to put an idea forward,

have it read, implemented

and then recognised”

“Best managed project that I

have been involved with.

Good processes so far and

excellent communication”

“I have had a play

around with the one

click report today and it

is magnificent. This will

save a lot of planning

time for Reps and sales

support. Great report!”

“This trial has really showed me the

opportunities that are out there. We got 6 leads

just from knocking on doors. I really do have

faith in the processes that have been established

& I’m confident it’s going to make a positive

difference to the business”

“Love it! Getting a process put in place for

rush orders makes the Customer Service job

much easier. No more going backwards &

forwards between planning & the customer &

no more emails being sent out to tell

everyone about the urgents”

“Rush Orders are not as time

consuming as they use to be

– the new process is pretty

good”

© Amcor 2012 30


Learnings

Change Management Competence is crucial

Make the Case for Change - Confront the Brutal truth

Be Empathetic to the current situation – Seek first to understand

Front Line involvement is crucial to create Ownership

Over Communicate

Confront the cultural inertia

Establish behavioural standards as part of the process

Celebrate the successes – everyone is nervous

© Amcor 2012 31


Leanings - Process

Process mapping to make the case for change

Job redesign to deliver new processes

Beta trials are important to test robustness of the change

You won’t please everyone – some will want to leave, some will

need to leave

Be determined and resilient but don’t stop listening and tweaking

You MUST measure the outcomes (KPIS’s and BCI’s) and don’t

waiver in your review discipline. The actual change happens at

the bottom of the organisation

© Amcor 2012 32


Next Steps

Selecting sub processes for review

Modify IT systems to further improve efficiency and effectiveness

© Amcor 2012 33


Summary

Using the Bevington methodology in conjunction

with a clear strategy, AMCOR Fibre Packaging

is well underway to turning the business around.

We are far from finished as the change is yet to

be fully embedded into…….

“The way we do things

around here”

© Amcor 2012 34

amcor fibre packaging - bevington group€¦ · amcor fibre packaging: australia & nz manufacturing...

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