NBC Universal and Lean

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  • Origins in the GE quality organization: Everyone gets black belt training Focus on driving change: We get as much out of team work, CAP compared to Six Sigma DOE, etc.
  • Sales groups aligned to respective properties – defending property uniqueness 15 different ways to do the same things (ratecard, sales tracking, ___more) Defects early generated early on (up front) significantly impact downstream operations
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  • This slide will help demonstrate the complexity of the problem (across 3 dimensions) How we aligned to top corporate strategy imperatives
  • Sales groups aligned to respective properties – defending property uniqueness 15 different ways to do the same things (ratecard, sales tracking, ___more) Defects early generated early on (up front) significantly impact downstream operations
  • NBC Universal and Lean

    1. 1. Developing a 360 o Sales Force John Sabino, SVP - Ad Sales Tiran Dagan, Director – Strategic Initiatives & Analysis
    2. 2. About The Presenters <ul><li>Tiran Dagan </li></ul><ul><li>Director/Engagement Leader </li></ul><ul><li>Strategic Initiatives & Analysis </li></ul><ul><ul><li>Responsible for executing the deployment of process improvement efforts and digital strategies across Media Works, News & Studio Operations business units. </li></ul></ul><ul><ul><li>Six Sigma Master Black Belt & Certified Agile PM Scrum Master </li></ul></ul><ul><ul><li>Prior roles in strategy, operations & technology in financial services & healthcare </li></ul></ul><ul><ul><li>MBA from Tel-Aviv University, B.Sc. In Artificial Intelligence & Mathematics from SUNY </li></ul></ul><ul><li>John Sabino </li></ul><ul><li>Senior Vice President </li></ul><ul><li>Commercial Excellence & Operations </li></ul><ul><ul><li>Responsible for simplifying sales and operational processes across all distribution platforms and for the creation & deployment of enterprise sales initiatives across NBCU Ad Sales. </li></ul></ul><ul><ul><li>Prior roles at GE Energy supporting corporate initiatives, marketing, and sales. </li></ul></ul><ul><ul><li>MBA from the Marshall School of Business at USC, B.Sc. from West Point Military Academy. </li></ul></ul><ul><ul><li>Junior Officer Leadership Program after serving five years in the U.S. Army as an Armor Officer. </li></ul></ul>
    3. 3. <ul><li>Joint Venture - GE (80%)/Vivendi (20%) </li></ul><ul><li>Ad Revenue $6b (2007) </li></ul><ul><li>Over 15 cable & TV properties </li></ul><ul><li>Strong digital presence (iVillage, NBC.com, MSNBC.com, CNBC.com, Hulu) </li></ul><ul><li>Siloed activities & communication channels </li></ul>About NBC Universal (NBCU)
    4. 4. Strategic Initiatives & Analysis <ul><li>Origins in the GE quality organization </li></ul><ul><li>Focus on driving change </li></ul><ul><li>Cross discipline team, two coasts </li></ul><ul><li>Consultative approach </li></ul><ul><li>No charge to P&L </li></ul><ul><li>Lean & Six Sigma as means, not an end </li></ul>“ We've been aggressively trying to migrate away from talking about tools and instead to talking about outcomes... Six Sigma is a tool. It is a wonderful tool, but it is a tool…the two outcomes we really want are product reliability and customer responsiveness. “ Gary Reiner, GE CIO, CNN Money, 7/21/2008
    5. 5. SIA Framework: Lean AWO <ul><ul><li>Kick-off with leadership and other key participants </li></ul></ul><ul><ul><li>Collect Voice of the Customer data and understand customer value </li></ul></ul><ul><ul><li>Define objectives (including growth transfer function) </li></ul></ul><ul><ul><li>Define scope (which business, which process) </li></ul></ul><ul><ul><li>Define leadership structure and process owners </li></ul></ul><ul><ul><li>Begin logistics arrangement and agree on participants </li></ul></ul><ul><ul><li>Collect existing process maps </li></ul></ul><ul><ul><li>Define baseline business data </li></ul></ul><ul><ul><li>Begin data collection for existing process </li></ul></ul><ul><ul><li>Complete process data collection </li></ul></ul><ul><ul><li>Finalize participant list and remaining logistics </li></ul></ul><ul><ul><li>Conduct training on lean concepts </li></ul></ul><ul><ul><li>Complete VSMs </li></ul></ul><ul><ul><li>Complete problem & objective statements for AWO events </li></ul></ul><ul><ul><li>Develop 9 month Action Work Out calendar </li></ul></ul><ul><ul><li>Finalize Action Work Out teams </li></ul></ul><ul><ul><li>Complete initial Action Work Outs (3-6 teams) </li></ul></ul><ul><ul><li>Continue to complete Action Work Outs to reach future state goals </li></ul></ul>Lean Engagement Consulting Engagement Planning: Scoping & Prioritization Discovery & Strategy Staffing Approval Stakeholder Management Team Management Kick-Off Execution Final Report-out Closure: Quantify Value Project Review Measure & Validate Report Project Management Program Integration Tollgates Schedules and Timelines Communications Plan Risk Management Scope Control Conflict / Issue Resolution Change Management Vendor Partnership Implementation Plan Kick-Off Define Scope Collect Data Determine Participants Lean Training SIA Project Delivery Framework 1.0 Follow on AWOs Lean Work Out Week
    6. 6. The Ad Sales Evolution Initiative
    7. 7. Business Case <ul><li>Properties, redundant functions and tie this in with ability to deliver/manage an audience not just ads </li></ul><ul><li>Reduce customer facing defects </li></ul><ul><li>Inflexible process </li></ul><ul><li>Fragmented audience </li></ul><ul><li>High internal costs to manage </li></ul>From ad to audience
    8. 8. Overcoming a Fragmented World Property 1 Sales Property 2 Property 3 Property 15 Pricing Planning Billing Ratecards Inventory Sales Pricing Planning Billing Ratecards Inventory Sales Pricing Planning Billing Ratecards Inventory Sales Pricing Planning Billing Ratecards Inventory High cost / confusing service model
    9. 9. Ad Sales Value Chain Programming & Research Ratecard Dev. Inquiry to Order Contract Maintenance Traffic Billing Project Scope What the customer feels
    10. 10. Opportunities Across Entire Value Chain <ul><li>Reduce credits due to inaccurate delivery </li></ul><ul><li>Improve customer satisfaction survey results </li></ul><ul><li>Improve collection rate and reduce DSO </li></ul><ul><li>Reduce revisions to contracts </li></ul><ul><li>Reduce cycle time to close a plan </li></ul><ul><li>Reduce defects during early plan negotiations </li></ul><ul><li>Increase revenue opportunities </li></ul><ul><li>Customer behavior: </li></ul><ul><li>Lead time </li></ul><ul><li>Completeness & Accuracy <provide examples> </li></ul>Inquiry To Order (ITO) Order To Remittance (OTR) Customer
    11. 11. Billing & Collections Research Traffic Sales CRM (Account Management) Growth Playbook Programming & Development Pricing & Planning Pricing & Planning Core Enterprise Processes / Functions Properties Produce Great Content Reposition Assets Consumer & Advertiser Insights Cultivate Consumer Communities New Platforms & Business Windows Expand Internationally Telemunod/Mun2 NBC.com Cable/Network News TV Network Bravo, Sleuth & Chiller USA / Sci-Fi
    12. 12. “Lean First” <ul><li>Establish Metrics & visibility </li></ul><ul><li>Create a repeatable, standardized Process </li></ul><ul><li>Drive Organizational change (sales force, P&P teams, etc) </li></ul><ul><li>Implement supporting Systems & Technologies </li></ul><ul><li>Create ability to sell across properties and platforms </li></ul>The vision of Enterprise sell
    13. 13. Phase I: As-Is VSMs Oct Nov Initiate <ul><li>Needs Assessment </li></ul><ul><li>General Discovery </li></ul><ul><li>Sponsorship </li></ul><ul><li>Scoping </li></ul><ul><li>Approval </li></ul>Project SOW & Deliverables Oct 15 Update Plan <ul><li>Detailed Planning </li></ul><ul><li>Staffing </li></ul><ul><li>SOW Creation </li></ul><ul><li>Approval </li></ul>Pre-Kickoff 10/16 Dec Jan Feb Mar 14 <ul><li>Monitor action plan for 60 days </li></ul><ul><li>Complete hand-off to IT for requirements development </li></ul><ul><li>Report out to management </li></ul>SIA Close Update Update Update Update Update Update March NBC Network Training: Jan 11 th Event: 14 th , 16 th & 17 th Telemundo, Mun2 Training: Jan 18 th Event: 22 nd , 24 th , 25 th Cable News (CNBC, MSNBC) Training: Jan 23 rd Event: 1/28, 1/30, 1/31 Digital (nbc.com) Training: Jan 29 th Event: Feb 4 th , 6 th , 7 th Share Current State Participation: all 6 groups: Event: Feb 19 th , Feb 20 th Design Ideal State Participation: all 6 groups: Feb 26 th , Feb 28 th Drilldown Future State Participation: all 6 groups: March 5 th , March 7 th Update Execute <ul><li>Interviews </li></ul><ul><li>Identify key metrics </li></ul><ul><li>Walk the process </li></ul><ul><li>Data Collection </li></ul><ul><li>Participant list </li></ul><ul><li>Logistics confirmed </li></ul>USA, Sci-Fi, Oxygen (TBC) Training: Dec 7 th Event: 10 th , 12 th & 13 th Bravo, Uni HD, Sleuth, Chiller Training: Dec 14 th Event: 17 th , 19 th & 20 th Update Detailed As-is current state map Parking lot, big ideas, opportunities Quick win fixes High Level process map Process Groupings Detailed future state process maps with Inputs & Outputs Action Plans Execute 6 Current State Mapping Events Future State Development 6 Project End Project Start 5 4 2 3 1
    14. 14. Kick-Off: A Shared Vision
    15. 15. Process Mapping
    16. 16. Metrics, VA & Pain Points
    17. 17. Digitization
    18. 18. Report To Management
    19. 19. Deliverables Action Plans + Monitoring Workout Website – Daily Updates Nightly Turnaround of VSMs Dictionary of terms Round-Robin Prioritization of Solutions
    20. 20. Developed A Process Model
    21. 21. Process Gap Analysis
    22. 22. “Future State” Clearly understood client contact, 360 o -Sell Property 1 Property 2 Property 3 Property 15 Ratecard Dev Inventory Pricing Sales Planning Billing Sales Pricing Planning Billing Ratecards Inventory Sales Pricing Planning Billing Ratecards Inventory Sales Pricing Planning Billing Ratecards Inventory Sales Pricing Planning Billing Ratecards Inventory
    23. 23. Commercial Excellence
    24. 24. Realized Benefits <ul><li>Organizational Benefits </li></ul><ul><ul><li>Mobilized organization around top clients </li></ul></ul><ul><ul><li>Clearly defining terminologies </li></ul></ul><ul><ul><li>Normalizing & standardizing processes </li></ul></ul><ul><li>Utilized CRM application to quickly & efficiently share critical client information </li></ul><ul><li>Streamlined process steps to productively share transactions </li></ul><ul><li>Pre-defined target base for NBCU initiatives (Women@, Health & Wellness) </li></ul><ul><li>Linked incentive plan to business goals (360 sell) </li></ul><ul><li>Sophisticated customer analytics for enterprise sales decisioning </li></ul>Quick, accurate customer value delivery
    25. 25. New Enterprise Sale Process Use market data, research and analytics to develop a target list of clients or initiatives. Gain an understanding of the Client’s long term priorities Create a custom solution utilizing NBCU’s array of assets. Set up measurement tool and execute Client solution across all properties. Monitor delivery and evolve solution as necessary. <ul><li>Tested on a single enterprise account </li></ul><ul><ul><li>Resulted in one Account Plan developed by cross-property AEs </li></ul></ul><ul><ul><li>Two Big Ideas were developed and presented to address Client’s largest ’09 product launches </li></ul></ul><ul><li>Next Step: Two enterprise accounts in 2009 </li></ul>Process Being Tested and Refined
    26. 26. Sales Systems Mainframe Dealmaker Ideal Operative NBC Customer Data Warehouse Gabriel WideOrbit Enterprise VCI OSI Post Prior <ul><li>Single View of Customer (270 to 1 GM) </li></ul><ul><li>NBC Sales, D&B, CMR, Research Data </li></ul><ul><li>Big Marketing Idea Workflow </li></ul><ul><li>6.5 Month GEN-1 Rollout </li></ul><ul><li>Joint Account Ownership </li></ul><ul><li>Wing to Wing visibility </li></ul><ul><li>Independent NBCU Commercial Data Warehouse </li></ul><ul><li>Transparency throughout the organization </li></ul>Business Needs Aggressive Timeline All About the Data
    27. 27. Enterprise Selling <ul><li>Analytics to determine key accounts </li></ul><ul><li>Defined tools, milestones and deliverables for each Enterprise step </li></ul><ul><li>Accountability with sales leader </li></ul><ul><li>Results in a coordinated “Go To Market” strategy </li></ul>Created one complete Enterprise process <ul><li>Develop a long-term account plan </li></ul><ul><li>Structure Ad Solutions to address Client’s long-term needs </li></ul><ul><li>Create sticky “Big Idea” Creative Marketing solutions </li></ul><ul><li>Allows for clear NBCU resource allocation </li></ul><ul><li>One view of the Client </li></ul><ul><li>A place to capture all contacts and learnings about the Client </li></ul><ul><li>Clear understanding of the impact of the Enterprise process </li></ul>Operationalized Through Sales Systems Empowering senior sales leaders to grow strategic accounts
    28. 28. 1 SIC Reporting – Live Dashboard Usage Meetings Pipeline Pipeline by AE 1 2 3 4 2 3 4
    29. 29. Targets Tata Group Marsh SAP Nielsen Media SAS NASDAQ ADP US Golf Assoc US Tennis Assoc Dow Jones & Co WWE HP Dell Analyze (Sourcing Spend): Determine Relationships: Track ROI – Salesforce.com Account Targeting
    30. 30. <ul><li>APPENDIX </li></ul>
    31. 31. Synopsis <ul><li>In the first quarter of 2007, NBC Universal’s Strategic Initiatives & Analysis (SIA) in conjunction with Ad Sales Commercial Excellence Team launched a major transformation initiative to streamline sales processes across eight cable, TV and digital properties. Recognizing new market needs, NBCU’s new strategy and resulting capabilities created a strong platform for growth and a shared vision across a traditionally silo organization. In this sales operations case study we will explore the cultural challenges facing SIA and the use of simple yet powerful process improvement tools and methods to drive ground-breaking change. Furthermore, we will share some of the strategic changes that NBCU is making to transform its advertising sales models to create new value for its customers and the required cultural, organizational, and process changes that are underway to unlock future commercial opportunities. </li></ul>

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