Presentation is loading. Please wait.

Presentation is loading. Please wait.

Vince Pierce, Laura Wells, and Don Mears July, 2011

Similar presentations

Presentation on theme: "Vince Pierce, Laura Wells, and Don Mears July, 2011"— Presentation transcript:

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

2 Office Depot Company Overview
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 world’s largest e-commerce retailers – $4.1 billion in sales in 2010 North American Retail (43% of 2010 Sales) North American BSD (28% of 2010 Sales) International (29% of 2010 Sales) 1,100+ stores in U.S. and Canada Largest concentration of stores in California, Texas and Florida Catalog, contract and e-commerce Dedicated sales force works with medium sized to large customers Orders serviced through 16 distribution centers 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

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 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 Expectations Outcomes 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 …this success won us a hearing to go further afield into North American Retail, Supply Chain and Private Brand areas…

5 Process Transformation Continuous Process Improvement (CPI)
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 Transformation Continuous 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 BPI Integrated Centers of Excellence
Our mission is to drive superior execution that accelerates associates, customers, and shareholder value 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 Program/Project Management ERP Integration Partner with Business and IT to deliver maximum ERP value through best-in-class governance, deployment, and user adoption 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 Continuous Process Improvement Integration Change Management 6

7 PPM Deployment Strategies
We operate a three-channel deployment strategy to drive superior program/project execution that delivers the required ROI on strategic initiatives Program/Project Management Deployment Strategies PMO Operations PPM Capability Development PPM 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 Our PPM Strategies drive program/project execution excellence throughout the organization

8 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 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 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 8 8

9 CPI Deployment Strategies
We operate a three-channel deployment strategy to realize significant process improvements while building the long-term capability for Continuous Improvement Continuous Process Improvement (CPI) Deployment Strategies Value Stream Transformation Tactical Process Improvement HR 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 How do we “do” tactical deployment? 3 to 4 month improvement cycles Focused on processes selected by the EC With Process Owner commitment Delivering a minimum of 5% improvement in quality, productivity, or speed / timeliness Under a train-the-trainer format with a “CPI Champion” dedicated at least 20% to CPI (long term) While deploying the “CPI Fundamentals” for sustainability 9

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

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 Changed Beliefs/Assumptions lead to readjustment of Values Beliefs & Assumptions CULTURE Behaviors & Practices Different Behaviors/Practices demonstrate and reinforce changed Beliefs/Assumptions Values Readjusted Values drive changes in Behavior/Practice The culture cycle can be entered and changed through any of its drivers

13 BPI Approach to Culture Change – 2
By focusing on Behaviors and Practices we deliver Value and reinforce Belief 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

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

15 BPI Delivery Framework
Plan Engage Deliver Sustain Governance Enablement Right Projects and Metrics Leadership and Resources Actions and Results Strategy Matrix Delivery Objectives Delivery Strategies Delivery Plans Delivery Organization 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 Project and Change Methods
BPI Delivery Framework – Process View Plan Engage Deliver Sustain Governance Enablement Planning Engagement Delivery Methods Strategic Plan Business Requests CPI Fundamentals Demand Management Resource Allocation Project and Change Methods

17 Standard Delivery Lifecycle
BPI Delivery Methods Share a Common Foundation 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 Analyze Design and Build Validate Deploy Plan Project Management Change Management Standard Delivery Lifecycle Value Stream Transformation Process Improvement Technology Integration Custom Methods Project Management Change Management

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

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

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 Key Success Factors Factor Examples 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 "Vince Pierce, Laura Wells, and Don Mears July, 2011"

Similar presentations

Ads by Google