reinvention with respect

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Reinvention with Respect Interview with Jim Kelly of UPS Jaccy Lai Ashly Ling Yvonne ling Abu Shadath Shaibal

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Reinvention with Respect

An Interview with Jim Kelly of UPS Jaccy LaiAshly Ling

Yvonne lingAbu Shadath Shaibal

Introduction

WHEN YOU THINK OF UPS, WHAT COMES TO MIND?

MOST LIKELY, YOU CONJURE UP

IMAGES OF BROWN DELIVERY VAN

Introduction

BUT THIS $30 BILLION COMPANY IS MUCH MORE THAN A PACKAGE DELIVERY CARRIER.

SINCE ITS FOUNDING IN 1907, UPS HAS CONTINUALLY

BROADENED ITS TERRITORY, ITS OFFERINGS, AND ITS

MISSION TO BETTER SERVE A CHANGING MARKETPLACE.

TODAY, IT EMPLOYS OVER 360,000 PEOPLE AND

OPERATES IN SOME 200 COUNTRIES AND TERRITORIES.

Introduction

IN THIS INTERVIEW, CEO JIM KELLY, WHO BEGAN HIS UPS CAREER 41 YEARS AGO AS A DRIVER TALKS CANDIDLY ABOUT THE CHALLENGES OF TRYING TO GROW SUCH A HUGE, MATURE BUSINESS.

HE EXPLAINS THE COMPANY'S FOCUS ON INTERNATIONAL

EXPANSION: “GOING FORWARD, THE REST OF THE WORLD OFFERS MORE GROWTH OPPORTUNITY THAN THE UNITED STATES BECAUSE WE HAVE A LONG WAY TO GO TO ACHIEVE THE SAME DENSITY ABROAD THAT WE HAVE DOMESTICALLY”.

About UPS

Known in the industry as "Big Brown" ,United

Parcel Service,Inc is the world's largest package delivery

company.

Was founded in 1907 Seattle by Jim Casey, called

American Messenger Company

Migrated into one of contract services delivering

packages from the large department stores

downtown to homes in the surrounding areas in Seattle and then Los Angeles. UPS

start to develop metropolitan operations – moving packages rather

than messages In the early ‘80s, UPS began to

embrace the air business.

This new approach business made UPS

faced debt problem as they are still a private

company which depends only on

managers’ investment.

Following that UPS expanded globally, did a number of small acquisitions in Europe and Asia. UPS opened up their stock ownership to their employees in order to pull in cash for expanding their business

Did an IPO and joined the public market

'99

UPS made a changes on their mission. The phrase "Worldwide Delivery Service," which had appeared on its 88,000-vehicle fleet, was replaced with "Synchronizing the World of Commerce," thereby reflecting UPS's expanded activities in the wider supply-chain industry. This was a big external message as an internal message.

2003

UPS did a numbers of acquisition for completing their capabilities to manage supply chain

2000-2005

UPS ranked No.1 on Transport Topics’ Top 50 Logistics Companies

2015

UPS TIME CAPSULE

1950Entering the

Common Carrier Era

1907Local

Messenger Service

1920Retail Delivery

Beginnings

1975national company

(48 contiguous state)

1986Global company

1988 Airline

1992Info Business (Total Track)

2010-2014 The New Logistics

About Jim Kelly

● Native of Jersey City, New Jersey● Earned a Bachelor of Science degree in business from

Rutgers University

1964

Package Delivery Driver

1965

Package Distribution Center Manager

1988

Elected Senior Vice President and Appointed

the company's Labor Relations Manager

1991Served on the UPS Board of Directors.

1992Chief Operating

Officer

1997 - 2001Chairman and Chief

Executive Officer

Board of Directors of BellSouth and Dana Corporation

Director of Georgia Pacific Corp. and the

Welfare-to-Work Partnership

Jim Kelly

Board of Councilors of

the Carter Center

Member of the Board of Trustees for The Annie E.

Casey Foundation

Dean's Advisory Committee of

Emory Business School

Member of the International

Trade and Investment

Committee of the Business

Roundtable and the Council on

Competitiveness.

Q&A with Jim Kelly

2 Organizational Challenges

Deliver strategy clearly into

individual roles

Create confidence

among people to move into new sector

"What's keeping people up at night at UPS these days? Besides overnight delivery, I mean."

● To meet the expectations ( achieve 34.5billion business on coming year)

"In the past five years, UPS's net income grew at a compound annual rate of almost 22%. How can you possibly sustain anything like that? What's your strategy?"● Maintain core business whilst expanding new sector

● Understand and anticipate customer's needs● Globalization● Broaden up the core business territorially

"How do you decide what new business lines make sense?"

● Main Purpose: Enabling global commerce (moving information & money)

● Expand to logistic business and global financing services

● Service Parts Logistics maintain a spare-parts inventor make deliveries of critical part provide warranty service

"What's hardest about leading UPS into new areas?"

● Allowing 360,000 subordinates to understand their own strategy● Trained up the confidence within the employees● To sustain the value of innovation-reinvention

Sounds like your approach to reinventing UPS starts with reinventing its self-image or even its mythology. Does that amount to reinventing the culture?

Preserve UPS

culture

honest

Straightforward

Intergrity

Loyalty

Dedication

Deciding what you don't ever want to change & what you

have to throw away

**innovative -room to improve

CULTURE

Does UPS turn people into UPSers or do people who already have those qualities simply self-select into it?

● Turns you into what you are● UPS strengthened people

values, honest & rectitude

Does that strong culture make it easier to build consensus?

● Building up consensus naturally● Not the first priority● Is important during decision

making

Are you concerned about a shift toward short-term thinking as people begin to focus more on the stock price?

● LONG TERM - main concern

● UPS focused on doing the right things & keep costs in line BUT....

Actions = stock price

You've overseen a reinvention of UPS from the old economy to the new one. But I haven't heard you take credit for any of it.

● CEO are being overrated

● UPS - more focused on Collectivism, Individualism

Conclusion

United Parcel Service were brave enough to change the vision, starting at the top, and

committing themselves to it from the top all the way down through every employee of

the company. They managed to do it quickly by making changes in their processes and

organizational structure.

UPS has done a remarkable job of leveraging their core competencies for the

new world of e-commerce. They have figured out how to deliver their core

business services in new ways, while leveraging their tremendous infrastructure

assets.

Yvonne
Think the conclusion should much more focus on HOW JIM KELLY REINVENT and CHANGE UPS.Should we discuss again on this sunday?

They haven't forgotten where they came from. In that they have managed to

preserve their company culture. It has served them very well in promoting the

creative thought necessary to come up with new ways to do business and grow the

company.

UPS employees are giving high commitment throughout their tasks and jobs. They

always encourage and establish themselves as independent and they will fight for what

they believe is right.

Using the UPS Distribution tool, Customer Solutions can help customers determine the optimum number and location of facilities and minimize inventory costs – all while

maintaining your customer service requirements.

Yvonne
Should we remove this?

Lewin’s Change Management model

Lewin’s Change Management modelUNFREEZE

• Determine what needs to change

• Strong support from Upper management

• Create the need for change

CHANGE

• Communicate often

• Empower action

• Involve people in process

REFREEZE

• Anchor the changes into a culture

• Sustain the changes

• Celebrate everyones hardwork

Jim Kelly is successful & effective leader who lead UPS to a better future.

Thank you For Being With us

Any

?