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© The Delos Partnership 2007 page 1 Integrated Enterprise Leadership Issues and the Delos Model as a solution
© The Delos Partnership 2007 page 2 Managing the constraints Project Budgets Customer Service – OTIF Development Costs Development Flexibility
© The Delos Partnership 2007 page 3 Vertical Functional Organisation MD Sales Marketing Technical Operations Finance HR R&DR&D R&DR&D MKTGMKTG MKTGMKTG SALESSALES SALESSALES OPSOPS OPSOPS ACCTSACCTS ACCTSACCTS HRHR HRHR Directors Managers Supervisors/Team Leaders
© The Delos Partnership 2007 page 4 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 elses responsibility, but nobody does what needs to be done
© The Delos Partnership 2007 page 5 Everybody, Somebody, Anybody, And Nobody 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 Model For Business Integration Innovation Innovation Vision Strategy Prioritisation Prioritisation Demand Support Supply
© The Delos Partnership 2007 page 7 Objectives of Integrated Enterprise Leadership 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 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 SuppliersBargainingPower Threat of Newsuppliers CustomersBargaining power power Industrycompetitivesituation The strategic forces of competition Product and Servicesubstitution FreedomOfEmployeemovement GovernmentLegislation
© The Delos Partnership 2007 page 10 Strategic Choices Operational Excellence – Cost Leadership Operational Excellence – Cost Leadership Customer Intimacy – Customer Leadership Customer Intimacy – Customer Leadership Product Leadership – Technology Leadership Product Leadership – Technology Leadership
Difference in Focus SalesMarketingFinanceManufacturingDesign Customer Intimacy 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 where are you going ? NOWFive years time Customer Intimacy % % 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 in product development and approval Reliably supply quality XXX Foster a culture that demands excellence Continue to lead in marketing and sales
© The Delos Partnership 2007 page 14 Teamwork With a common vision and a strategy there is a chance to develop common Objectives Commitment Team direction
Workshop What are the requirements for ensuring teamwork within an organisation © The Delos Partnership 2007 page 15
© The Delos Partnership 2007 page 16 SuppliersBargainingPower Threat of Newsuppliers CustomersBargaining power power Industrycompetitivesituation The forces of competition change Product and Servicesubstitution FreedomOfEmployeemovement GovernmentLegislation
© The Delos Partnership 2007 page 17 Integration of Processes and Tools Strategic Review IEL Review Demand Plan Master Schedule Project Plan MRP/CRP/ Activities WTL/ Orders/ Tasks How OftenYearlyMonthlyWeeklyDailyHourly WhoBoard ManagersComputer Units£sFamiliesFamilies/ Products Parts/ Activities Parts/ Tasks Horizon5 years3 years2 years Focus3-5 years0-3 years0 to Cum Lead Time Part Lead Time Time buckets YearsMonthsWeeksDaysHours Detail
© The Delos Partnership 2007 page 18 CUSTOMERSCUSTOMERS Processes link customers to suppliers SUPPLIERSSUPPLIERS CoreCore Vision And Strategy Vision SupportingSupporting FinanceFinance Human Resources Information Technology Product Development Business Winning Customer Order Fulfillment After Sales Service
Integration of people, process and tools © The Delos Partnership 2007 page 19
© The Delos Partnership 2007 page 20 Integration Mission, values, and envisioned future Operational Requirements Business of The Future Winning business Strategy, SWOT, Critical success factors, Measures, responsibilities Integrated Operational Plan for all of the functions in the business Programme Management Operations Management Contract 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 Learning And Development Performance Management
Strategic Business Planning for Marketers- intro “No matter how good your product is-you are always exactly 18 months away from complete failure.” Nathan.
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