Presentation is loading. Please wait.

Presentation is loading. Please wait.

Confidential Institute for Industrial Engineers Office Depot Business Process Improvement Vince Pierce, Laura Wells, and Don Mears July, 2011.

Similar presentations


Presentation on theme: "Confidential Institute for Industrial Engineers Office Depot Business Process Improvement Vince Pierce, Laura Wells, and Don Mears July, 2011."— Presentation transcript:

1 Confidential Institute for Industrial Engineers Office Depot Business Process Improvement Vince Pierce, Laura Wells, and Don Mears July, 2011

2 Confidential 2 Office Depot Company Overview North American Retail (43% of 2010 Sales) 1,100+ stores in U.S. and Canada Largest concentration of stores in California, Texas and Florida North American BSD (28% of 2010 Sales) Catalog, contract and e- commerce Dedicated sales force works with medium sized to large customers Orders serviced through 16 distribution centers International (29% of 2010 Sales) Catalog, contract, e-commerce and retail Sell to customers directly and through affiliates in 51 countries outside of the U.S. and Canada 40+ websites and 400+ stores Office Depot is a leading global provider of office products and services: –2010 sales of $11.6 billion –North American Retail Division 43% –North American Business Solutions Division 28% –International Division 29% One of the worlds largest e-commerce retailers – $4.1 billion in sales in 2010

3 Confidential 3 Business Process Improvement - Cause for Action Office Depot benchmarking efforts highlighted a significant opportunity to improve service levels (effectiveness) while reducing SG&A costs (efficiency). Senior Leaders also recognized the competitive advantages that would accumulate from building a cultural focus on Continuous Improvement. Office Depot created the Business Process Improvement Organization (BPI) to help us achieve world class execution by effective alignment of people, process and technology in the service of our business objectives and operational priorities.

4 Confidential 4 BPI 2010 – Proof of Concept During our first year, we demonstrated our ability to partner with business leaders, engage process owners and associates, and deliver meaningful results ExpectationsOutcomes Partner with Business Leaders Defined a Partnership Model Established around joint accountability for results Enabled Business Leaders without abdicating their responsibility for results Engage Process Owners and Associates Positioned Process Owners as owners in design, decision-making and change management Positioned BPI as facilitators and coaches first and within carefully selected delivery roles Engaged associates as SMEs to identify problems and countermeasures Involved associates in implementation of solutions and CPI Fundamentals to sustain results Deliver Meaningful Results Delivered detailed current state analysis Delivered integrated transformation plan and business case Transitioned ERP integration responsibility with improved performance Exceeded targets by a margin of $MM, accretive to P&L and Balance Sheet

5 Confidential 5 BPI Dual Strategies Our dual strategies are designed to deliver near-term results by addressing critical problems while deploying process improvement principles and practices across the organization to create a management culture of continuous improvement Dual Strategies Process TransformationContinuous Process Improvement (CPI) Surgery – Tactical near-term focus to achieve world-class SG&A efficiencies: Reduce Indirect Spend Restructure our Service Delivery Model Improve Process Efficiency Lifestyle Change – Strategic long-term platform to increase competitive advantage: Optimize our customer Value Streams Deploy CPI Fundamentals Build capability for Continuous Improvement

6 Confidential 66 BPI Integrated Centers of Excellence Program/Project Management Change Management ERP Integration Continuous Process Improvement Integration Our mission is to drive superior execution that accelerates associates, customers, and shareholder value Continuous Process Improvement Partner with Business to apply Process Improvement principles and practices to deliver best-in-class process performance and build the capability for continuous improvement ERP Integration Partner with Business and IT to deliver maximum ERP value through best-in- class governance, deployment, and user adoption Program/Project Management (PPM) Partner with Business to drive superior program/project execution through best-in-class management disciplines and stakeholder adoption of new behaviors, processes, and technologies

7 Confidential 7 PPM Deployment Strategies Program/Project Management Deployment Strategies PMO Operations PPM Capability DevelopmentPPM Execution Govern the portfolio of Strategic Initiatives to achieve the ROI defined in Strategic and Annual Operating Plans Deploy standard Project and Change Management Methods, Tools, Training, and Support to enable Project Managers to deliver significant business outcomes Staff Program, Project, and Change Managers on strategic initiatives (augmenting Business Unit and Functional capabilities) to deliver significant business outcomes We operate a three-channel deployment strategy to drive superior program/project execution that delivers the required ROI on strategic initiatives Our PPM Strategies drive program/project execution excellence throughout the organization

8 Confidential 88 ERP Integration Strategy We operate in partnership with the Business and IT to align ERP investments with strategic priorities and deploy integrated solutions that deliver significant business outcomes ERP Integration Design and Integrate Solution Architecture ERP Integration partners with IT and Business to: –Build Release Schedule –Design Solution (Functional) –Integrate Solution –Drive User Adoption Information Technology Build, Deploy, and Support Solution IT partners with the Business to: –Design Solution (Technical) –Build and Test Solution –Deploy Solution –Support the Solution Business Identify Business Case and Requirements Business identifies Need ERP Integration partners with Business to define Business Case ERP Integration partners with Business to define Business Requirements

9 Confidential 99 CPI Deployment Strategies Continuous Process Improvement (CPI) Deployment Strategies Value Stream TransformationTactical Process ImprovementHR Integration Application of Process Improvement principles and practices in an entire Value Stream to achieve breakthrough improvement sustained through CPI Fundamentals Application of selected Process Improvement principles and practices to discrete processes to deliver a minimum of 5% quality, cost, speed, or growth improvement sustained through CPI Fundamentals Integration of Process Improvement principles and practices into the organizational management culture through HR programs and processes (Training Curriculum; Performance Expectations; Hiring and Promotion Criteria; Competency Models; Incentives, Rewards and Recognition) Our CPI Strategies apply Process Improvement principles and practices to deliver best- in-class process performance and build the capability for continuous improvement We operate a three-channel deployment strategy to realize significant process improvements while building the long-term capability for Continuous Improvement

10 Confidential 10 CPI – An Inclusive Approach A3 Problem Solving Total Quality Management Ford 8D Six Sigma Toyota Production System PDCA – SDCA Lean Strategy Deployment Office Depot Continuous Process Improvement

11 Confidential 11 CPI Goals Meaningfully improve process performance Deploy CPI Fundamentals to sustain results Use the CPI Fundamentals to build team capability for continuous improvement Leading and Lagging Metrics Process Maps and Standard Work A3 Problem Solving Management Operating System Process Ownership Continuous Improvement Capability Leadership Alignment Process Excellence

12 Confidential 12 BPI Approach to Culture Change A culture is the repertoire of mutually reinforcing beliefs & assumptions, behaviors & practices, and values shared by a community of people Beliefs & Assumptions Values Behaviors & Practices CULTURE Readjusted Values drive changes in Behavior/Practice Different Behaviors/Practices demonstrate and reinforce changed Beliefs/Assumptions Changed Beliefs/Assumptions lead to readjustment of Values The culture cycle can be entered and changed through any of its drivers

13 Confidential 13 Culture Drivers X Beliefs & Assumptions X Values Behaviors & Practices Difficult to influence directly and slow to change Can be influenced directly and changed quickly Not directly observable and measurable Can be directly observed and measured against a desired standard Cannot be influenced by direct order or requirement Can be influenced by direction or requirement People can be brought to believe that it is in their best interests to adopt the new behaviors Add Value to new behaviors by rewarding them and sanctioning old behaviors By focusing on Behaviors and Practices we deliver Value and reinforce Belief BPI Approach to Culture Change – 2

14 Confidential 14 BPI Partnership Model Our imperative is to enable and support the Business without removing their responsibility for delivering results Business Owner Process Owner BPI Deployment Lead BPI Team Lead Collaborative Partnership BPI Enablement Business Ownership Business Joint Accountability for Results

15 Confidential 15 BPI Delivery Framework PlanEngageDeliverSustain Governance Enablement Right Projects and Metrics Right Leadership and Resources Right Actions and Results Strategy Matrix Delivery Objectives Delivery Strategies Delivery Plans Delivery Organization Right Management and Capabilities Business Expectations Opportunity Assessment Delivery Approach Resource Requirements Business Alignment Project Charters People Solutions Process Solutions Technology Solutions Business Results Leadership Alignment Process Standardization Process Metrics Management System Problem Solving Capability

16 Confidential 16 BPI Delivery Framework – Process View PlanEngageDeliverSustain Governance Enablement Strategic Plan Business Requests Planning Demand Management Engagement Resource Allocation Delivery Methods Project and Change Methods CPI Fundamentals

17 Confidential 17 BPI Delivery Methods Share a Common Foundation Analyze Design and Build ValidateDeploy Plan Project Management Change Management Standard Delivery Lifecycle Our Standard Delivery Lifecycle establishes a fundamental delivery structure and discipline, but is adaptable enough that it can be tailored to fit a variety of engagements Value Stream Transformation Process Improvement Technology Integration Change Management Project Management Custom Methods

18 Confidential 18 Project Management: Solution is Designed, Developed and Delivered Effectively Create Training Plan Execute and Monitor Training Plan Assess Readiness Execute and Monitor Communication Plan Plan Communications Build and Manage Change Agent Network Define Change Agent Network Assess Readiness Create Change Sustainment Plan Execute Change Sustainment Plan Create Re-Org Plan Execute Re-Organization Plan Conduct Stakeholder Analysis Define Change Strategy Change Management: People Embrace, Adopt and Use the Solution Effectively Change Management and Project Management work in partnership to deliver desired business results Change Management Integrated into Every Engagement

19 Confidential 19 CPI Fundamentals Enable Sustained Process Excellence End-to-End / Detailed Process Maps Desktop Procedures Standard Work Process Maps and Standard Work Voice of Customer Customer Success Metrics Key Input Metrics (Drivers) Leading and Lagging Metrics Daily Performance Huddle Weekly Process Owner Check Monthly Executive Review Management Operating System Cross-functional Teams Basic 5 Step Process (PDCA Cycle) Why-Why Analysis A3 Problem Solving Leading and Lagging Metrics Process Maps and Standard Work A3 Problem Solving Management Operating System Process Ownership Continuous Improvement Capability Leadership Alignment Process Excellence

20 Confidential 20 Business is Accountable to Adopt CPI Fundamentals BPI Terms of Engagement The Business will identify and assign CPI Champions with clear accountability for adoption of the CPI Fundamentals BPI will manage the CPI Champions as a community of practice with weekly touch- points, monthly learning sessions, and quarterly training events BPI will implement day reviews of the CPI Fundamentals with a simple measurement of adoption, reported to Senior Leadership Business will conduct routine leadership floor-walks to reinforce adoption and celebrate success

21 Confidential 21 Key Success Factors FactorExamples Effective Senior Level Sponsorship Initiative and support of CFO was key Initiation within the Finance organization provided an avenue of influence into the businesses Dual Strategy – Surgery and Lifestyle Delivering near-term value proposition to demonstrate value and encourage belief Incorporating lifestyle change expectation even into surgery engagements Incorporating clear value proposition even into lifestyle engagements Integration of PPM, CPI, ERP Integration Enables wide field of vision across the enterprise Recognizes the interconnectedness of business drivers Structured Change Management Proactively identifies and works to align human factors Mitigates risk of non-adoption Business Partnership Model Collaborative partnership with joint accountability for results Business ownership BPI enablement


Download ppt "Confidential Institute for Industrial Engineers Office Depot Business Process Improvement Vince Pierce, Laura Wells, and Don Mears July, 2011."

Similar presentations


Ads by Google