Driving Competitive Advantage - Harnessing Process Excellence


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  • Focusing on the culture of lean is the most important aspect to success. Using ONLY the tools will get you SOME success, but look how much more if you change the culture too. Also, do you know that Toyota starts back at the root cause of many organizational problems: hiring the wrong people. It puts all job candidates in a room with a two-way mirror and gives them a task. Those who race and try to finish it fastest by themselves are not hired. Those who help others who are having trouble are the ones who are hired. They believe ethics, personality characteristics, and attitude toward teamwork are more important than skill and education, although they are also important.
  • If questions, contact Cordis Juarez.
  • It is important to distinguish between “failures” and “mistakes.” Failures have learning attached (e.g., a child touching a hot stove) Mistakes do not have new learning (e.g,. child touching the stove a second time) The greatest innovators in history all have more failures than successes. Recognize creative initiative and learning from failure. Also, recognize when failure was due to external factors (e.g., product launch on Sept 11, 2001). “ It’s better to have employees try and make a mistake than not try at all.” Hearing those words can help people relax and breathe. This mindset is freeing, and helps instill confidence and self-esteem in employees, rather than fear, timidity, or self-doubt that can accompany environments that (for whatever reason) are overdosing on high-stakes and repercussion. We often place such an emphasis on perfection that we have forgotten how to fail. Once all the planning and contingencies are worked out and a new, "safe" innovation initiative is begun, we could have tried and failed several times, learning along the way. Sometimes we need to just jump in and test the water.
  • Our Transition — driven by extensive VOC (which I’ll highlight in a minute) from both last year’s L&G mtg as well as extensive 1/1 interviews with many Sr.Bus.Ldrs. New Focus Targets a “pull” from business leaders as primary customer. More focus on Rev. Enhancement/Growth opportunities than just cost savings. The larger opportunities are in sales/mktg and R&D areas, while we’ll sustain the gains realized in Ops. We heard LOUD and CLEAR the L&G feedback from early last year – the tools/assessments are merely an “ends to a mean,” not the end of the game. Business assessments have been replaced with streamlined, customized diagnostics focused on strategic outcomes. And it’s less about “identify improvements” to more about RAPID execution of high impact projects and deploying best practices.
  • In response to this feedback, we changed our delivery model from “Blocking/Tackling” to more of “Leading/Coaching,” especially with fewer available resources. Our primary focus is now more on enabling and accelerating high impact/strategic projects (e.g., seamless product launches, rev. enhancement, integration efforts). We’re also helping drive best practices by providing focused forums/tools for sharing among the various councils (e.g., recent WW Ops Council PHL forum, leveraging best practices via diagnostic service, participating in a few external thought leader/benchmarking consortiums on relevant topics) We foster the Global PE Community by networking key issues across the groups (common opportunity areas, leverage enterprise-wide costs for analytical tools, as well as maintain certification standards for MBBs and provide unique training not readily available elsewhere). Through the Global Council, we’ve refocused on coordinating top PE talent development for critical positions. With these changes, there are also a few implications for the Op Cos. More of the building capability activities (e.g., broad-based training for PE community, revising tools to fit local conditions, networking across groups) will be the responsibility of Op Cos. as well as providing support to int’l affiliates where PE talent might not exist.
  • Driving Competitive Advantage - Harnessing Process Excellence

    1. 1. Harnessing Process Excellence April 30, 2008 Debra S. Levantrosser Executive Director, Lean/Business Improvement DRIVING COMPETITIVE ADVANTAGE
    2. 2. Objectives <ul><li>Explain What an Advanced Lean and Six Sigma </li></ul><ul><li>Organization Looks Like </li></ul><ul><li>Share the Strategy and Tools of the Trade </li></ul><ul><li>Share the Potential Results </li></ul><ul><li>Explain Innovation’s Role </li></ul><ul><li>Share Lessons Learned for an Advanced Lean Six </li></ul><ul><li>Sigma Deployment </li></ul>
    3. 3. Objectives <ul><li>Explain What an Advanced Lean and Six Sigma </li></ul><ul><li>Organization Looks Like </li></ul><ul><li>Share the Strategy and Tools of the Trade </li></ul><ul><li>Share the Potential Results </li></ul><ul><li>Explain Innovation’s Role </li></ul><ul><li>Share Lessons Learned for an Advanced Lean Six </li></ul><ul><li>Sigma Deployment </li></ul><ul><li>Explain What an Advanced Lean and Six Sigma </li></ul><ul><li>Organization Looks Like </li></ul>
    4. 4. J&J: Diverse and Decentralized <ul><li>Most broadly based human health care company </li></ul><ul><ul><li>115,000 employees, $61B revenue, 230+ companies </li></ul></ul><ul><ul><li>Medical devices and diagnostics, pharma/biotech, consumer </li></ul></ul><ul><li>Managed for the long term (founded in 1886) </li></ul><ul><ul><li>72 consecutive years of sales increases </li></ul></ul><ul><ul><li>43 consecutive years of dividend increases </li></ul></ul><ul><li>Strong culture of decentralization </li></ul><ul><ul><li>Values-based culture (J&J Credo) </li></ul></ul><ul><ul><li>Empowered management </li></ul></ul>
    5. 5. J&J Structure Corporate Center Consumer Comprehensive Care Surgical Care Pharm and Biologics
    6. 6. Evolution of J&J Business Improvement 2008 > SOQ Process Excellence TQM/Crosby Value 1980s 1990s 2000s <ul><li>Tools/ methods </li></ul><ul><li>Six Sigma, </li></ul><ul><li>Lean, DEx </li></ul><ul><li>Process focus </li></ul><ul><li>Assessment </li></ul><ul><li>Measurement </li></ul><ul><li>Fact based </li></ul><ul><li>Leadership </li></ul><ul><li>Involved </li></ul>PE Leadership/Peters <ul><li>Measurement </li></ul><ul><li>Fact based </li></ul>TQM/Crosby/ Ishikawa ? J&J’s approach to improvement has always evolved and built off of previous learnings and successes. SOQ/Deming <ul><li>Measurement </li></ul><ul><li>Fact based </li></ul><ul><li>Process focus </li></ul><ul><li>Assessment </li></ul><ul><li>Tools/ methods </li></ul><ul><li>Six Sigma, </li></ul><ul><li>Lean, DEx </li></ul><ul><li>Process focus </li></ul><ul><li>Assessment </li></ul><ul><li>Measurement </li></ul><ul><li>Fact based </li></ul><ul><li>Leadership </li></ul><ul><li>Teachers, innovators </li></ul>
    7. 7. Process Excellence Vision Constantly improving business results using embedded PE principles as a way of running the business Vision Strategic Objectives Deliver Improved Business Results Improve Key Business Processes Develop and Ingrain Improvement Competencies Structure 1990s: Large corporate group building capabilities in the operating companies Now: Smaller corporate group providing business solutions
    8. 8. Objectives <ul><li>Explain What an Advanced Lean and Six Sigma </li></ul><ul><li>Organization Looks Like </li></ul><ul><li>Share the Strategy and Tools of the Trade </li></ul><ul><li>Share the Potential Results and Success Stories </li></ul><ul><li>Explain Innovation’s Role </li></ul><ul><li>Share Lessons Learned for an Advanced Lean Six </li></ul><ul><li>Sigma Deployment </li></ul>
    9. 9. PE Tools Help Our Businesses to Ingrain the Principles <ul><li>Create and communicate a clear vision and align the organization </li></ul><ul><li>Understand and focus on the customer </li></ul><ul><li>Create a process-centered, high performance work environment </li></ul><ul><li>Manage with facts and data </li></ul><ul><li>Create a culture of innovation and improvement </li></ul><ul><li>Relentlessly pursue excellence </li></ul>Business Management Principles Internal and External Proven Practices Improvement Methodologies Assessments Dashboards PE Capabilities and Tools Help enable
    10. 10. Assessment Criteria <ul><li>What are the high level improvements in core and support processes? </li></ul><ul><li>How do we compare to appropriate benchmarks ? </li></ul>Values Strategy Evaluation & Improvement Regulatory Compliance Health Care Compliance Health, Safety & Environment Supply Planning Supplier Relationship Management Production Order Fulfillment Technology Transfer Organization, Workflow, & Job Design HR Planning High Performance Culture Strategic Talent Management Business Enabling Services Leadership Results Compliance Results Org. & People Results Demand Results Supply Results Prod. Dev. Results Research Portfolio Planning New Product Development Licensing & Acquisition Service Design Leadership Product Development Demand Supply Organization and People Compliance 1 2 3 4 5 6 Market Insights Sales & Mktg. Planning Demand Generation New Product Introduction Customer Support Services
    11. 11. Sample of a “Benchmark Process”
    12. 12. Blended Improvement Methods Aligned With Core Processes Demand generation “toolkit” Supply chain “toolkit” NPD “toolkit” Enabling processes “toolkit” Six Sigma Lean DEx <ul><li>Blended set of tools across the methodologies which are most relevant </li></ul><ul><li>to a given area (toolkit) </li></ul><ul><li>Examples and real life application of tools in process area </li></ul><ul><li>E-enable “toolkit” </li></ul>Tools Tools Tools This approach addresses a key request from business leaders – make the tools more relevant, easier to apply, focused on the business need. Existing alignment Proposed alignment
    13. 13. Improvement Methods and Tools Objective Sample Tools <ul><li>Project Charter, VOC </li></ul><ul><li>Process Maps, Pareto </li></ul><ul><li>Control Charts </li></ul><ul><li>Cause/Effect, Regression </li></ul><ul><li>Standardize, Learnings </li></ul><ul><li>Value-Stream Mapping </li></ul><ul><li>Standard Work, 5S </li></ul><ul><li>Flow Optimization </li></ul><ul><li>Line Balancing </li></ul><ul><li>Rapid Changeover </li></ul><ul><li>VOC, Change Mgmt </li></ul><ul><li>Quality Function Deploymt </li></ul><ul><li>Multi-Gen. Plan </li></ul><ul><li>Benefit/Risk Analysis </li></ul><ul><li>FMEA, Design for X </li></ul>Lean <ul><li>streamline process to improve </li></ul><ul><li>work flow and deliver customer </li></ul><ul><li>value faster </li></ul><ul><li>eliminate waste — time/resources </li></ul><ul><li>8 principles </li></ul>DEx <ul><li>design/develop new products or </li></ul><ul><li>processes that consistently meet </li></ul><ul><li>or exceed customer requirements </li></ul><ul><li>DMADV Roadmap: D efine , M easure , </li></ul><ul><li>A nalyze , D esign , V alidate </li></ul><ul><li>reduce process variability </li></ul><ul><li>eliminate defects </li></ul><ul><li>DMAIC Roadmap: D efine , M easure , </li></ul><ul><li>A nalyze , I nnovate/ I mprove , C ontrol </li></ul>Six Sigma
    14. 14. Drill Down to Action and Ownership At company meetings and in management’s regular dashboard review s, Janssen people drill down to the data behind specific dashboard components to understand why the company is performing as it is, as gauged by leading and lagging indicators. They then specify who will take what actions, when, to keep the company on track to reach or exceed its most important goals. Drill Down to Action and Ownership At company meetings and in management’s regular dashboard review s, Janssen people drill down to the data behind specific dashboard components to understand why the company is performing as it is, as gauged by leading and lagging indicators. They then specify who will take what actions, when, to keep the company on track to reach or exceed its most important goals. Dashboards and Hoshin Kanri: Drill Down to Action and Ownership
    15. 15. Lean Thinking Tools-only Approach Stop & Go Approach Toyota Culture and Training Approach Rate at which companies improve through lean journey Rate of Improvement Through Lean Companies that invest early in Toyota-style culture improve dramatically in a short time. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Initiate Implement Sustain
    16. 16. Lean Enterprise Enablers at J&J Lean Enterprise: R&D, Supply Chain, Sales, Support Learning Lean Maturity Assessment (LMA) Lean Deployment Model (LDM) <ul><li>Modular-based training, e.g.: </li></ul><ul><ul><li>Lean Culture </li></ul></ul><ul><ul><li>Leadership Standard Work </li></ul></ul><ul><ul><li>Lean Health & Safety </li></ul></ul><ul><ul><li>J&J’s Lean Model </li></ul></ul><ul><ul><li>Lean Accounting </li></ul></ul><ul><ul><li>Kaizen </li></ul></ul><ul><li>E-Learning </li></ul><ul><li>Internal and External Benchmarking </li></ul><ul><li>8 LMA principles which translate into 45 line items </li></ul><ul><ul><li>Leadership </li></ul></ul><ul><ul><li>Change Management </li></ul></ul><ul><ul><li>Roles, Responsibilities, and Culture </li></ul></ul><ul><ul><li>Goal Alignment </li></ul></ul><ul><ul><li>Value </li></ul></ul><ul><ul><li>Flow </li></ul></ul><ul><ul><li>Pull </li></ul></ul><ul><ul><li>Continuous Improvement </li></ul></ul><ul><li>4 phases of lean deployment </li></ul><ul><ul><li>Stability </li></ul></ul><ul><ul><li>Flow </li></ul></ul><ul><ul><li>Pull </li></ul></ul><ul><ul><li>Integration </li></ul></ul>
    17. 17. This Is What an Advanced LeanSS Organization Looks Like <ul><li>Fundamental principles of lean can be described as below. They represent the vision (not what “is” or what will be “tomorrow,” but the vision) for the entire enterprise! These apply to R&D, Commercial Ops, Supply Chain, and support functions. </li></ul>Value Leadership Pull Flow Roles, Responsibilities, and Culture Goal Alignment Continuous Improvement Change Management Committed, accountable, teachers, in Gemba 50% of the time, reflection time Servant-leader mentality, engrained, formal, positive attitude toward change Teams drive improvement, org design is in value streams, hiring is based on values Goals exist for every individual, accountability is omni-present, common KPIs visible to all Internal and external customer needs are well known and processes mapped Cycle time constantly improves for all processes (physical, virtual, and informational) Action begins at sign of demand, is leveled, inventories replenished on min/max levels Results continuously improve, CI culture permeates, innovation encouraged (Kaizen)
    18. 18. Leadership standard work minimizes disruptions in the workplace during leadership changes while holding the organization’s course. Continuous Improvement Daily Management Performance Without standardized work, there can be no sustained improvement. STANDARD WORK Time Leadership Standard Work
    19. 19. Critical Success Factors for Change Top Five Source : Best Practices, LLC, 2003 Executives rank people-related issues as the most important driver of successfully implementing and sustaining change. 87% 69% 66% 54% 46% 36% 34% 21% 20% 19% 17% 16% 7% 4% 4% 3% 0% Executive sponsorship Understanding of need for change Multilevel management support Consistent communications Compelling need for change Adequate resources Structured approach Clear channels for feedback Recognizing employees Preimplementation training Training for change team members Communicating w/affected employees Offering compensation to employees Personnel changes Offering savings to employees Other Offering small gifts to employees
    20. 20. Objectives <ul><li>Explain What an Advanced Lean and Six Sigma </li></ul><ul><li>Organization Looks Like </li></ul><ul><li>Share the Strategy and Tools of the Trade </li></ul><ul><li>Share the Potential Results and Success Stories </li></ul><ul><li>Explain Innovation’s Role </li></ul><ul><li>Share Lessons Learned for an Advanced Lean Six </li></ul><ul><li>Sigma Deployment </li></ul>
    21. 21. Putting It All Together — Improvements That Drive Results 2004 2002 2001 $ Billions $1.00 $0.50 2003 $0.40 $0.98 $1.18 $1.10 $0.25 $0.75 J&J business leaders have been able to leverage PE tools and principles to help enable the achievement of business results. Financial Impact of Improvement Projects Source: Financial reporting system; Group PE leaders. Value= Balance Sheet + P&L (after tax rate) impact.. $1.11 2005 2006 $1.10 Our certification results: 4000 Green Belts 1200 Black Belts 700 Master Black Belts <ul><li>Value Creation </li></ul><ul><li>Balance Sheet </li></ul><ul><li>Accts. receivable </li></ul><ul><li>Inventory </li></ul><ul><li>reduction </li></ul><ul><li>Capital avoidance </li></ul><ul><li>P&L (after tax) </li></ul><ul><li>Cost reduction </li></ul><ul><li>Cost avoidance </li></ul><ul><li>Revenue </li></ul><ul><li>enhancement </li></ul>
    22. 22. <ul><li>Insufficient capacity to meet </li></ul><ul><li>strategic plan needs for NPD </li></ul><ul><li>NPD process has a lot of non-value- </li></ul><ul><li>added activity </li></ul><ul><li>Numerous handoffs and rework </li></ul><ul><li>Opportunity existed to improve voice </li></ul><ul><li>of customer input into development </li></ul><ul><li>process </li></ul>Rationale Game Changing Improvements in NPD Outcome: Dramatically improved NPD productivity and effectiveness Medical Device Company <ul><li>Improvements/Deliverables: </li></ul><ul><li>Dramatic process improvements: </li></ul><ul><ul><li>Reduce rework </li></ul></ul><ul><ul><li>Eliminate non-value- </li></ul></ul><ul><ul><li>added steps </li></ul></ul><ul><ul><li>Improve customer VOC </li></ul></ul><ul><ul><li>into process </li></ul></ul><ul><li>1-yr cycle time eliminated </li></ul><ul><li>NPD capacity increased 45% </li></ul><ul><li>Outcomes: </li></ul><ul><li>2003: 20 NPD projects with 2 </li></ul><ul><li>launches </li></ul><ul><li>2004: 29 NPD projects with 7 </li></ul><ul><li>launches </li></ul><ul><li>5 more launches = $211MM </li></ul><ul><li>incremental revenue </li></ul>
    23. 23. Results to date: Cost/Benefit to J&J: Driving Improved Cash Flow Through Better A/R Processes <ul><li>Cross business group effort </li></ul><ul><li>24 projects/participants (13MD&D, 6 </li></ul><ul><li>Pharm, & 5 Consumer) </li></ul><ul><li>Invested $1.3 MM in effort to date </li></ul><ul><li>A day of DSO globally in 2003 </li></ul><ul><li>represents ~ $100MM in cash </li></ul><ul><li>Total DSO Black Belt Wave improvement </li></ul><ul><li>of 2 days vs goal of 1 day (June 2003 – </li></ul><ul><li>September 2004) </li></ul><ul><ul><li>MD&D 2.1 day improvement </li></ul></ul><ul><ul><li>Pharm 1.3 day improvement </li></ul></ul><ul><ul><li>Consumer 4.0 day improvement </li></ul></ul><ul><li>Representing over $150MM in additional </li></ul><ul><li>cash flow for J&J </li></ul>Examples of improvements: <ul><li>Understand root cause of issues </li></ul><ul><li>Reduce/eliminate invoice </li></ul><ul><li>discrepancies with customers </li></ul><ul><li>Improve electronic funds transfer </li></ul><ul><li>timing </li></ul><ul><li>Provide electronic invoicing to </li></ul><ul><li>customers </li></ul><ul><li>Improve customer satisfaction </li></ul><ul><li>with billing </li></ul>
    24. 24. Lean Culture Change Example: Cordis de Mexico — Shingo Prize Winner 2007 <ul><li>Rewards and Recognitions – </li></ul><ul><ul><li>Cell of the Month </li></ul></ul><ul><ul><li>Employee Suggestion System </li></ul></ul><ul><ul><li>Team Excellence Award </li></ul></ul><ul><li>Communication – </li></ul><ul><ul><li>Wall of Excellence – shows improvements, major events, recognition and awards, Credo, vision, and mission </li></ul></ul><ul><ul><li>Wall of Shame – shows complaints, the top 10 most wanted defects, and negative events </li></ul></ul><ul><ul><li>Wall of Metrics, Safety, and Environmental – displays business metrics and state of the company to all associates </li></ul></ul><ul><li>Continuously Exercise Improvement – </li></ul><ul><ul><li>Enhance new orientation training </li></ul></ul><ul><ul><li>Improve training curriculum – training with a purpose </li></ul></ul><ul><ul><li>Everyone is in gemba being active </li></ul></ul><ul><li>Training – </li></ul><ul><ul><li>Developed training modules with a purpose (classroom training and application) </li></ul></ul><ul><ul><ul><li>5S, waste identification, basic continuous improvement tools, mistake-proofing </li></ul></ul></ul><ul><ul><li>PDCA and 5 Whys; Policy management strategic deployment </li></ul></ul><ul><li>5S System – </li></ul><ul><ul><li>59 teams participated in the annual 5S competition </li></ul></ul><ul><ul><li>A successful approach is to engage workforce in learning and executing </li></ul></ul><ul><ul><li>Leadership participation and involvement </li></ul></ul><ul><li>Kaizen Workshops and Circles – </li></ul><ul><ul><li>Manufacturing and nonmanufacturing areas involved </li></ul></ul><ul><ul><li>Cross-functional teams, Leadership involvement </li></ul></ul><ul><ul><li>Results focused on eliminating defects and improving productivity, safety, and environment </li></ul></ul><ul><li>Suppliers – </li></ul><ul><ul><li>Share lean and Six Sigma knowledge </li></ul></ul><ul><ul><li>PE projects </li></ul></ul><ul><ul><li>Kaizen workshops </li></ul></ul>
    25. 25. Objectives <ul><li>Explain What an Advanced Lean and Six Sigma </li></ul><ul><li>Organization Looks Like </li></ul><ul><li>Share the Strategy and Tools of the Trade </li></ul><ul><li>Share the Potential Results and Success Stories </li></ul><ul><li>Explain Innovation’s Role </li></ul><ul><li>Share Lessons Learned for an Advanced Lean Six </li></ul><ul><li>Sigma Deployment </li></ul>
    26. 26. Innovation Explained <ul><li>List as many innovative organizations as you can………GO! </li></ul>Exercise
    27. 27. Innovation Explained (cont.) Why isn’t your organization up here?
    28. 28. Product Innovation at J&J: Tip of the Iceberg
    29. 29. Innovation at J&J <ul><li>Commitment: Innovation SME Team, training, external relationships </li></ul><ul><li>Passion: Intense focus on health care and improving peoples’ lives </li></ul><ul><li>Drive: The Credo per R.W. Johnson </li></ul><ul><li>Culture: Decentralization allows it </li></ul><ul><li>Follow-through: Process Excellence (lean, six sigma, design excellence) </li></ul>
    30. 30. Failure at J&J “ Failure is our most important product.” - R. W. Johnson Jr., 1954 Part of the J&J Credo: “ We must experiment with new ideas. Research must be carried on, innovative programs developed and mistakes paid for.”
    31. 31. J&J Sources of Innovative Ideas “Crowdsourcing” Examples
    32. 32. J&J Sources of Innovative Ideas (cont.) “Crowdsourcing” Examples Once an idea has received enough votes and has passed a threshold score, it is sent on to the relevant department for review. If that department likes the idea, it will put it forward for testing and then into Development. Centovation is a tool designed to help all employees input their ideas and get fast feedback on their ideas. It is also a chance for all employees to participate in Idea Development to find new ways to help Centocor grow faster by rating other people's ideas as well. Everyone can play a role in generating the ideas that will make this company even more successful! Whether it is rating or submitting ideas - the more people that get involved the more we are likely to get innovative ideas.
    33. 33. Objectives <ul><li>Explain What an Advanced Lean and Six Sigma </li></ul><ul><li>Organization Looks Like </li></ul><ul><li>Share the Strategy and Tools of the Trade </li></ul><ul><li>Share the Potential Results and Success Stories </li></ul><ul><li>Explain Innovation’s Role </li></ul><ul><li>Share Lessons Learned for an Advanced Lean Six </li></ul><ul><li>Sigma Deployment </li></ul>
    34. 34. Implementing Process Excellence: Key Considerations/Lessons Learned <ul><li>People become more focused on tools/ </li></ul><ul><li>methods than the business, “zealots” </li></ul><ul><li>Making improvement more complicated </li></ul><ul><li>than it needs to be, “jargon” </li></ul><ul><li>Not reaching all levels of the organization </li></ul>Watch out for <ul><li>Not a substitute for strategic thinking </li></ul><ul><li>Not a replacement for business acumen </li></ul><ul><li>Not a replacement for or inhibitor of innovation </li></ul>What it isn’t <ul><li>Your competition is making dramatic </li></ul><ul><li>improvements and is improving at a much faster </li></ul><ul><li>rate than you </li></ul>What to be afraid of
    35. 35. JJPE in Transition From… To… <ul><li>Corp. Program Office – “push” </li></ul><ul><ul><li>PE Community </li></ul></ul><ul><li>Cost savings focused </li></ul><ul><li>“ Operations” mindset </li></ul><ul><li>Tool-focused approach </li></ul><ul><li>Improvement identification </li></ul><ul><li>Bus. Improvement Services – “pull” </li></ul><ul><ul><li>Business Unit Leader </li></ul></ul><ul><li>Top- and bottom-line benefits </li></ul><ul><li>Commercial, R&D, Supply Chain </li></ul><ul><li>Customized, focused solutions </li></ul><ul><li>Deployed best practices </li></ul>Mission: Identify, enable, and accelerate high-impact business solutions in Product Development, Commercial Operations, and Supply Chain by collaborating with the businesses to: deliver strategic initiatives, deploy best practices, and strengthen their improvement capability
    36. 36. JJPE/Business Improvement Services Old Paradigm – Blocking/Tackling New Paradigm – Leading/Coaching <ul><li>Deploy Best Practices </li></ul><ul><li>Collaborate w/WW Ops, R&D Councils, Regional Councils to share best practices for key issues </li></ul><ul><li>Scan external environment for identification of relevant best practices </li></ul><ul><li>Foster Global PE Community </li></ul><ul><li>Leverage our investment in the improvement community </li></ul><ul><li>Expertise for High Impact Areas </li></ul><ul><li>Rapid Response – implement action plans for strategic initiatives </li></ul><ul><li>Dedicated consulting for strategic initiatives </li></ul><ul><li>Talent Development </li></ul><ul><li>Identify/accelerate top PE talent for critical positions </li></ul>Provide Expertise to High Impact Areas Deploy Best Practices Foster Global PE Community Develop Talent <ul><li>Building Capability </li></ul><ul><li>Broad-based Training </li></ul><ul><li>Curriculum Development/Update </li></ul><ul><li>Maintain Certification Standards </li></ul><ul><li>Business Assessments </li></ul><ul><li>Leadership Orientation </li></ul><ul><li>Tool Deployment </li></ul>Building Capability Talent Mgmt Business Support WHQ Support Global PE Council (Blocking & Tackling)
    37. 37. Mission Improve business results, improve processes that drive the results, ingrain the business management principles PE Objectives – Strategic Areas of Focus <ul><li>Identify targeted businesses and help BU leader build capability </li></ul><ul><ul><li>40% at “fully capable ” for self-improvement </li></ul></ul><ul><li>Sustain the value of assessment </li></ul><ul><ul><li>90% business leaders at Top 2 Box </li></ul></ul><ul><ul><li>% coverage plan attained </li></ul></ul><ul><li>Improve PE talent mgmt process </li></ul><ul><ul><li>80% PEL competent </li></ul></ul><ul><ul><li>80% ready now for replacement of critical positions </li></ul></ul><ul><li>Evaluate business solutions consulting capability </li></ul><ul><ul><li>% plan attained </li></ul></ul>Build Improvement Competencies <ul><li>Conduct systematic reviews of key business process capability - NPD, Supply Chain, Demand Gen </li></ul><ul><ul><li>Processes reviewed using appropriate dashboard? </li></ul></ul><ul><ul><li>Opportunities identified? </li></ul></ul><ul><ul><li>Action plan in place? </li></ul></ul><ul><li>Target specific process improvement opportunities for key businesses </li></ul><ul><ul><li>50% of targeted companies at benchmark levels (> 70%) </li></ul></ul>Continue to Strengthen Key Business Processes Target Top Business Growth Opportunities <ul><li>Identify and execute projects in GOC Growth & Leadership agenda </li></ul><ul><ul><li>Measured progress of projects by GPEL </li></ul></ul><ul><ul><li>$ Impact of projects </li></ul></ul><ul><li>Accelerate leveraging of “best” practices in key growth areas </li></ul><ul><ul><li>Link best practices with Business Assmt feedback – VOC rating </li></ul></ul><ul><ul><li>Deploy Mktg/Sales Diag. Tool – VOC rating </li></ul></ul><ul><ul><li>Conduct initiatives/events focused on key GOC priorities </li></ul></ul>
    38. 38. Link the Change to the Current Puts customers first Highly values employees Focuses on continuous improvement in our communities Measures business results Supports continual learning Focuses on continuous improvement and supplier integration Supports innovation Lean Enterprise: R&D, Supply Chain, Sales, Support We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services. In meeting their needs everything we do must be of high quality. We must constantly strive to reduce our costs in order to maintain reasonable prices. Customers' orders must be serviced promptly and accurately. Our suppliers and distributors must have an opportunity to make a fair profit. We are responsible to our employees, the men and women who work with us throughout the world. Everyone must be considered as an individual. We must respect their dignity and recognize their merit. They must have a sense of security in their jobs. Compensation must be fair and adequate, and working conditions clean, orderly and safe. We must be mindful of ways to help our employees fulfill their family responsibilities. Employees must feel free to make suggestions and complaints. There must be equal opportunity for employment, development and advancement for those qualified. We must provide competent management, and their actions must be just and ethical. We are responsible to the communities in which we live and work and to the world community as well. We must be good citizens – support good works and charities and bear our fair share of taxes. We must encourage civic improvements and better health and education. We must maintain in good order the property we are privileged to use, protecting the environment and natural resources. Our final responsibility is to our stockholders. Business must make a sound profit. We must experiment with new ideas. Research must be carried on, innovative programs developed and mistakes paid for. New equipment must be purchased, new facilities provided and new products launched. Reserves must be created to provide for adverse times. When we operate according to these principles, the stockholders should realize a fair return.
    39. 39. Thank You! Danke (German) Gracias (Spanish) Spasibo (Russian) Obrigado (Portuguese) Terima Kasih (Malay) Merci (French) Tak (Danish) Grazie (Italian) Do Jeh (Cantonese) Arigato (Japanese)