1. © The Delos Partnership 2005 Process Owners and their role Application to the Delos Model

2. © The Delos Partnership 2005 The Delos Model For Business Integration Innovation Innovation Vision Strategy Prioritisation Prioritisation Demand Support Supply

3. © The Delos Partnership 2005 Integrated Enterprise Planning ACTIONACTION Week 1Week 2Week 3Week 4 Innovation Review Innovation Review Customer Demand Review Customer Demand Review Supply Plan Review Supply Plan Review Priority Review Priority Review STAGE 1 STAGE 2 Senior Team Review Senior Team Review STAGE 5 STAGE 7 STAGE 4 STAGE 3 Support STAGE 6

4. © The Delos Partnership 2005 The Delos Model for Industrial Enterprises Provides integration of all the elements of the business Designed to deliver the strategy through the creation of robust operational processes Integrated Enterprise Leadership is based on effective Teamwork It is based on cross-functional teams, aligned to process – not functions.

5. © The Delos Partnership 2005 NEW ACTIVITY TEAM Research and Development Rep Commercial Rep Process Development Rep Planning Rep Finance Rep …… …. NEW ACTIVITY TEAM Research and Development Rep Commercial Rep Process Development Rep Planning Rep Finance Rep …… …. Process for Implementation of IEL Implementation Team – IEL Senior Team and Project Leader Integration Team Project Leader New Active Representative Demand Representative Supply Chain Representative Support Representative Financial Representative ….. NEW ACTIVITY TEAM Research and Development Rep Commercial Rep Process Development Rep Planning Rep Finance Rep …… ….

6. © The Delos Partnership 2005 Characteristics of IEL FeatureGood Practise Horizon 24 Months rolling Horizon Focus Beyond month three Language Families/Sectors by Production and Markets Result Decisions on the long-term issues Responsibility Managing Director Decision outcomes Tactical and Strategic Frequency Monthly Process Process for the integration of strategic intent and operational activities.

7. © The Delos Partnership 2005 Problems with Implementation Availability of data Process takes too long each month New Activity review not carried out in timely fashion Defensive reaction to performance measures Differences between Sales and Marketing forecasts and financial numbers Too many initiatives

8. © The Delos Partnership 2005 Critical issues for implementation Collection of data Effective systems support Right levels of skill in organisation Good communication Making the tasks the right size Putting in place the right level of resource Selling the concept internally The right level of Education The right organisation

9. © The Delos Partnership 2005 Role of the Managing Director Insist that everyone participates Makes sure that clear decisions are taken Ensures that proper preparation is in place for the meeting Encourages realistic improvements to the process Resolves conflicts Develops the capacity for leadership Continually develops the plan into the future

10. © The Delos Partnership 2005 An effective team focuses on a common goal The performance of the whole company – not a functional area Each function plays a part and is responsible for achieving the aims The supporting functions are intertwined with all of the processes We need a process owner for each of the areas to ensure the effectiveness of the team.

11. © The Delos Partnership 2005 Permanent Strategic Direction To manage each step of the way it is important to have Process Owners –Ensures that the process is adapted to suit the organisation Process Team members –Takes the operational decisions required within each process stage

12. © The Delos Partnership 2005 Process Owners It is impossible to evolve the process without someone to supervise and manage the process who makes the connection between the technical teams and the supporting functions This process owner is not necessarily the person who is most expert in a particular function, but they must be able to understand the requirements and how to use the technology in the day to day business This person must be sufficiently respected within the organisation to be able to make decisions. They must be best placed to develop and put in place new and simpler processes, and to negotiate the balance between operational objectives and technical requirements.

13. © The Delos Partnership 2005 Process Ownership SalesOpsR & DFinanceMktg New Product Process NPD Owner Supply side process Supply Owner CustomerDemand Process Demand Owner Innovation Owner Innovation process Management Team Support: Finance, IT,HR,QA, …. Support Owner Horizontal Owners Act at the interface with the functions, to provide the link with other processes The process Managers are responsible for managing the process within the « vertical » function.

14. © The Delos Partnership 2005 Process Owners SalesOpsR & DFinanceMktg New Product Process NPD Owner Supply side process Supply Owner CustomerDemand Process Demand Owner Innovation Owner Innovation process Comité De Direction Supports: Finance, IT,HR,QA, …. Support Owner Assure and guarantee the quality of the major processes in the organisation Innovation Demand Supply Support Integration Strategy Analysing the environment, and ensuring best practise is adopted

15. © The Delos Partnership 2005 Role of Process Owners – 1/2 Guarantor of the quality of the process, and its integration into the operation of the global plan, and within the IEL process To pilot the idea, and put the process into action: to agree the priorities and the balance between operational objectives and technical requirements To propose the rules for the operation and management of the process, and ensure respect for the rules of the process To identify the problems at the interface between the process and the functions. To act in concert with the other teams who are part of the IEL process To take part in the definition of the operation of the supporting information systems

16. © The Delos Partnership 2005 Role of process owners 2/2 1.To champion the development of the performance measures relevant to their process, and ensure that they are used within the IEL process 2.To make sure that each stage of the process is completely developed and documented, and that they key users are educated in them 3.To ensure the continuous improvement of the process 4.To sponsor the process managers and their teams and ensure their participation in the IEL process 5.To act across each of the functions to ensure the right behaviours.

17. © The Delos Partnership 2005 Process owner - Profile Concentrated on strategic objectives, and not the short term Understands completely the IEL process Has a high degree expertise in their area, and has a high level view of their process Understands the other processes, and works to develop the interfaces between them Understands the links between the IT systems, and their process Champions the “horizontal” integration of the organisation Champions the behaviour change and continuous improvement Champions team work A communicator, and someone who acts to get agreement Credible, and respected at all levels in the organisation This is not a job, but a mission with a requirement for around 15 % of their time. Their title makes them part of the general management team.

18. © The Delos Partnership 2005 Multi-Level Integrated Enterprise Planning Week 1Week 2Week 3Week 4 Demand Planning Demand Planning Demand Planning Demand Planning Demand Planning Customer New Activity Review Innovation Supply Review Supply Review Supply Review Supply Review Financial Priorities Consolidated Recocniliation Financial Priorities Corporate Review Senior Team Review GLOBALLOCALGLOBALLOCAL LEVEL 1 Country/ Market LEVEL 2 Region/ Business Unit LEVEL 3 Europe/ Global HQ

19. © The Delos Partnership 2005 Corporate process owners They look after the vision and the stratgey at the corporate level They are expert in the IEL process They assure that there is a very high level of integration of the process They harmonise the data structure and hierarchy and operation of the process They intervene in a strict link with –Local process owners –They work with local operators of the process or a centre of excellence, and work within the relevant team They respect the decision making responsibilities of the local management teams, and analyse their performance through a common set of measures.

20. © The Delos Partnership 2005 Measurement - Basics VISION AND STRATEGY OBJECTIVES TARGETS MILESTONES

21. © The Delos Partnership 2005 Organisation Hierarchy Managing Director Directors/Process Owners Managers/Team Leaders Operators/Team members

22. © The Delos Partnership 2005 Link to Organisational Hierarchy Managing Director Directors/Process Owners Managers/Team Leaders Operators/Team members LINK THEM VISION AND STRATEGY OBJECTIVES TARGETS MILESTONES

23. © The Delos Partnership 2005 Measures are based around the processes Performance Measures are designed to improve the processes Process owners have responsibility for these measures Process owners take action “horizontally” across the functions to bring about change in behaviour It is essential that people work in teams to improve the processes Process owners must have a high degree of ability to work at the improvement of inter-functional attitiudes It is essential that there is a culture which allows humans to err. The objective is not to get rid of humans but to get rid of errors.

24. © The Delos Partnership 2005 Goal Deployment New Activity Manage ment Demand Manage ment Supply Manage ment Support Activities Senior manage ment Activities Shareholde r/ Corporate Customers Suppliers Employees Community GOALSGOALS Process Owners

25. © The Delos Partnership 2005 Process Managers Experts in their process area, they understand it to a high level They ensure the daily operation of all or part of their process area They have sufficient authority to make the decisions developed in the IEL process They are responsible for performance in the short term They are responsible for Continuous Improvement in their functions They are generally in charge of a functional area Production Purchasing R&D Sales and Marketing Finance HR……

26. © The Delos Partnership 2005 Example – Master Scheduling Process Interface between supply and the IEL process Role of Master Scheduling process manager –The operation of the Production plan for their products –The MPS ensures the achievement of the plan, and the operational and strategic objective of the organisation –The MPS manager decides to report by exception, each month Each important variation in volume The failures against plan, and the means for recovery Identified risks and opportunities

27. © The Delos Partnership 2005 Master Scheduler Strategy Master Scheduler Sales Forecasts Customer Orders Manufacturing Plan Purchasing Plan MRP System Balanced Plan

28. © The Delos Partnership 2005 Customer Relationship Management Strategy Demand Planner Sales and Marketing System Forecast Plan Manufacturing And Purchasing ERP System Consensus Forecast

29. © The Delos Partnership 2005 Innovations Manager Strategy Innovation Manager Development Ideas Project Plans Development Plans Supply Plans Project System Prioritised Plans

30. © The Delos Partnership 2005 Summary Owners The Process owners ensure integration The process owners ensure the quality of their process and the integration into their business environment The process owners are responsible for a commitment to continuous improvement The process owners ensure the commitment to teamwork. They are responsible for the joint local and global performance of the enterprise Managers Process managers are responsible for operational execution of the IEL process They are technical experts from a functional area, and integrated into the process They are responsible for the execution of specific projects that form part of continuous improvement They ensure that people work as teams. They are responsible for execution of the activities that means the achievement of the company’s aims and objectives.