Using “small c”communication totransform supply chainoperationsBaxter Case Study                         November 2011
change  ordie?                 Baxter Case Study   2       ©2011 Gagen MacDonald LLG
given the option9 out of 10   won’t change             Source: FastCompany, May 2005, “Change or Die”                     ...
change is                      emotional                                                      Turning Point               ...
operation customerconnect (OCC) • inventory costs • customer service • planning • operational agility         $40M        ...
the   eye of the        storm                   technology              organization       processes                      ...
our engagement     no burning platform                 Click to editchallenge          silos                 Master title ...
communications                                        challenge  Fragmented                  Mandate   Exchange   Integrat...
the     ask          Baxter Case Study   9©2011 Gagen MacDonald LLG
small c = big      E                          Baxter Case Study   10                ©2011 Gagen MacDonald LLG
small c = big              E           Mass Communications             • publications e   C     designed for large group  ...
small c communications approachknow your audiences       and the landscape                                Baxter Case Stud...
DO                 FEEL                KNOWAnswer:               Answer:               Answer:What actions are      What w...
DO                 FEEL                KNOW   ground allAnswer:               Answer:               Answer:            com...
chart and    navigate                   Change Leaders                   Blockerssegmentation       Bystanderstailored pla...
chart and    navigate       build       Change Leadersrelationships                   Blockerssegmentation       Bystander...
small c communications approachtrust others to carry         the water                                Baxter Case Study   ...
North   Pear   Dollar   EastApple   Bill   South    GreenJohn    Blue   Grape    RobertQuarter Red    Nickel   BananaDime ...
Bream   Clog    Chap    WreakLater   Mayor   Trout   ListPot     Else    Lot     SmugStart   Wage    Tape    DuckJob     J...
Time    Draft   Slot   GreetStab    Say     Hand   DentSolve   Off     Dirt   StaleHouse   Royal   Plot   StoneMutt    Cou...
context simplicityplan for distraction                        Baxter Case Study   21              ©2011 Gagen MacDonald LLG
trust  others    Why Change?                                                Best Partner                                  ...
trust    othersvisual maphandbookresource kit                         Baxter Case Study   23               ©2011 Gagen Mac...
trust    others     make people’s lives easiervisual maphandbookresource kit                               Baxter Case Stu...
small c communications approachfocus on what people        really need                                Baxter Case Study   ...
start withthe job                           Collaborate on Constraints: Validate                                  net requ...
start withthe job                           Collaborate on Constraints: Validate                                  net requ...
rethinkbroad-basedcommunications                Baxter Case Study   28      ©2011 Gagen MacDonald LLG
rethink          broad-based          communicationsaddressfears   head-on                          Baxter Case Study   29...
missioncontrol          • central resource          • daily issue resolution          • knowledge capture                 ...
missioncontrol  stay  out of the    way!  • central resource          • daily issue resolution          • knowledge captur...
small c communications approachinvolve people to gain their     commitment                                Baxter Case Stud...
involve                 people                                                                                            ...
involve                 people  communication                                                                             ...
business      results •   Successful implementation! •   One-time cash impact ≈ $32M •   Annual savings ≈ $11M •   Invento...
employeeperceptions• 87% understand OCC goals  (up 43%)• 96% understand OCC’s  impact on individual work  activities (up 7...
critical  competencies             • business acumen             • systems thinking             • ability to synthesize   ...
• trust issues• god is in the details• plan for (but don’t  indulge) complexity• no plan survives first  contact!• context...
ask                                             ?                         ?                                               ...
Thank        Morgan Marzec        P +1 312 673 7339        E m.marzec@gagenmac.comYou!    Gagen MacDonald        35 East W...
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Baxter supply chain case study

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This case study shares an overview of the change management work completed during

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  • Study conducted by Johns Hopkins Looked at patients whose heart disease is so bad that they need to undergo bypass surgery. Surgery brings patients out of immediate danger. Only way to stop the disease from killing them is to change their lifestyles – better diets, exercise, reduce stress, stop smoking, etc.His results were startling… “If you look at people after coronary-artery bypass surgery two years later, 90% of them have not changed their lifestyle.”
  • So given the option – change or die – the odds are against us 9 to 1.What that says to me…It’s really tough for individuals to change – even in a life or death situation;The old adage that crisis is the best motivator is not always true; and, It puts our task as change agents within our organizations into perspective…if people won’t change to save their own lives, how in the world are we going to get them to change to support a strategy or deliver certain performance metrics?
  • Slide shows that people go through emotional cycle with change Most engagement efforts focus on the launch/excitement phase: Probably the step requiring least amount of engagement efforts – people already excited and on board Trick is to stay with people and help them weather the entire cycle Opportunity to influence “turning point” Reference Towers Perrin Study – “Now I’m not a communications buff but I remember reading a study put out by Towers Perrin. If I recall, the top line of the study said that with every major change initiative: 15% of employees are on board 10% of employees can never be reached Leaves 75% of employees in the middle ground – our opportunity for engagement
  • Now that we’ve talked about “change” in general, here’s some top line info about Operation Customer Connect (OCC)…$40M investment to integrate planning functions across the U.S. supply chain toReduce inventory and associated costsImprove the customer order fill rate and serviceEnable longer-term, proactive sales and operations planningImprove speed, simplicity and agility of daily operationsThis was a storm of change – significant changes introduced in a relatively short burst of time.
  • That was the high-level overview… Here’s what it looked like for our individual employeesTechnology – Changes to how people workNew, sophisticated software Better access to information Enterprise view to planOrganization – Changes the environment in which people workNew reporting relationships New metrics New roles and responsibilitiesProcesses – Changes what employees do Perform new activities Interact with new groups Different decision parameters
  • And, like I’m sure many of you have experienced – our organization wasn’t in the ideal position to changeNo burning platform: 8 consecutive years of sales growth Stock price more than doubled over two-year period 80% of sales generated by market-leading products Focused on growth with $1B in new acquisitions Reduced total supply chain costs from 15.9% to 13.1%Our Engagement Challenges: No burning platform for change Functional goals/interests take “back seat” to the supply chain New supply chain organization and leadership lacking “clout” Measurable benefits not anticipated until 2006 Culture that rewarded “heroics”
  • And we had a significant challenge from a communications perspective….Here’s how I like to think about it… You have four basic communication environments: 1 – Fragmented where employees are getting information from multiple, uncoordinated sources 2 – Mandate – where top-down formal communications work well 3 – Exchange – where besides healthy top-down communications, you have good mechanisms for employee feedback and dialogue 4 – Integrated – where people are communicating not only up and down the chain, but also across functions and departments Best practice companies have integrated environment[BUILD] OCC technology provided people with the tools and information to go from stage 1 to stage 4, essentially overnight… We know that just having the information isn’t enough – the organization needed to be prepared to enable and support this integrated environmentSo you can see what a complex, multidimensional challenge we faced. So how did that translate into leaders’ expectations of communications?
  • Well, they brought us in to write a monthly newsletter.Given the nuanced challenge we just described, it was clear that a newsletter was not going to cut it. So we had to execute that monthly newsletter flawlessly every monthlook for opportunities to contribute to the project in other meaningful ways, and Especially at first, we had to find ways to suggest and influence through our given remit (the newsletter)
  • Here’s a simple proposition we used to guide our communications strategy.Small c = Big E…or use “small c” communications to yield the biggest effect It was the driving force behind how we addressed those challenges…Let’s take a look at what I mean
  • Communications continuum: Big C = mass communications, formal, top-down…the area where most of companies excel Mid-section is the inter-group communications = sharing information across departments and functions, more team orientedSmall c = daily conversations that happen between individual managers and employees on the front lineYou need all three elements of communication to be successful My proposition is the more time you spend on influencing small c communications in large-scale change efforts, the greater effect/impact you’ll have on the business…Our success with this major change initiative was directly proportional to our success in influencing these small c interactions
  • I’m also not going to kill you with the details of everything we did.Rather, I’m going to provide a couple tools we used and learning we collected along the way.Things I’d suggest you think about as you think about your role and opportunities with supply chain communications.Start with knowing your audience and the landscape…
  • Started our audience analysis with a simple stakeholder assessment tool. How’s this for lack of flash…we call it the “Do-Feel-Know” model.It helps plan your activities around three key elements of communication: behavior, inspiration and informationOften communications start with the “know” – what information do employees need to be successful – and end there. We started all planning with the DO Column – BEGIN BUILDS & PICK UP DETAIL FROM SLIDEFINAL BUILD: By grounding all elements of communication in the desired action or outcome & identifying employees’ key motivators, we were able to Target the types of information we provided employeesFocus our delivery in ways that were most meaningful to each employee groupPossible questions: Q: What audiences did you identify? A: Executive Team, Steering Committee, individual leaders, Project team members, super users, affected employees, mass employeesQ: Example of how you focused delivery?A: One example is we understood that super users had to work with new people and collaborate across functions. So, we brought them together in an interactive work shop to get them comfortable with new people and define the new working relationships.
  • Started our audience analysis with a simple stakeholder assessment tool. How’s this for lack of flash…we call it the “Do-Feel-Know” model.It helps plan your activities around three key elements of communication: behavior, inspiration and informationOften communications start with the “know” – what information do employees need to be successful – and end there. We started all planning with the DO Column – BEGIN BUILDS & PICK UP DETAIL FROM SLIDEFINAL BUILD: By grounding all elements of communication in the desired action or outcome & identifying employees’ key motivators, we were able to Target the types of information we provided employeesFocus our delivery in ways that were most meaningful to each employee groupPossible questions: Q: What audiences did you identify? A: Executive Team, Steering Committee, individual leaders, Project team members, super users, affected employees, mass employeesQ: Example of how you focused delivery?A: One example is we understood that super users had to work with new people and collaborate across functions. So, we brought them together in an interactive work shop to get them comfortable with new people and define the new working relationships.
  • Reference back to cycle of change – We know not everyone is aligned or in the same place We all work in political organizations After stakeholder assessment, we needed to determine Who was on board to help drive change…Who we could work to get on board…and finally, Who was going to thwart our efforts BULLET POINTS… We used this simple “playbook model” to segment our audiences It wasn’t just an exercise, it helped shape how we approached people and groups – Built individual relationship plans with each stakeholder - Our plans reflected our organizational realityPlotted all activities against a continuum to bring them alongLessened frustration – we identified early where our people barriers would be and whom we could solicit help from – Framed conversations in terms of what was important to individual leaders first – rather than pushing our change initiative on leaders, we spent time with them to understand their priorities and how OCC needed to help them. The headline – Our approach moved us out of the realm of pushing information. The small c approach means using communications to develop strategic relationships within your organization and alignment for your change initiativePOSSIBLE QUESTIONS:Q: How did you identify blockers, etc.?A: Interviews and intake sessions, perceptions of others (peers, leaders and directs), change readiness survey
  • Reference back to cycle of change – We know not everyone is aligned or in the same place We all work in political organizations After stakeholder assessment, we needed to determine Who was on board to help drive change…Who we could work to get on board…and finally, Who was going to thwart our efforts BULLET POINTS… We used this simple “playbook model” to segment our audiences It wasn’t just an exercise, it helped shape how we approached people and groups – Built individual relationship plans with each stakeholder - Our plans reflected our organizational realityPlotted all activities against a continuum to bring them alongLessened frustration – we identified early where our people barriers would be and whom we could solicit help from – Framed conversations in terms of what was important to individual leaders first – rather than pushing our change initiative on leaders, we spent time with them to understand their priorities and how OCC needed to help them. The headline – Our approach moved us out of the realm of pushing information. The small c approach means using communications to develop strategic relationships within your organization and alignment for your change initiativePOSSIBLE QUESTIONS:Q: How did you identify blockers, etc.?A: Interviews and intake sessions, perceptions of others (peers, leaders and directs), change readiness survey
  • Our second approach to “small c” communications is trusting others to carry the water – The thing about small c communications, is you learn quickly that you cannot control all of them, especially those informal, water cooler conversations happening every dayThe opportunity for communicators then, is to equip the right people in the organization to spread the word and enthusiasm about your change effort and enlist them as ambassadors/ advocates. I’m going to spend some time sharing with you how that looked with OCC, but first I thought we could run a little experiment.Directions: Get a piece of paper and a pencil. I’m going to read a list of 20 words to you. Do not write anything until I give the go ahead. At that point, write as many words as you can remember, regardless of order. Do not guess.North Pear Dollar EastApple Bill South GreenJohn Blue Grape RobertRed Quarter Nickel BananaDime West Yellow Charlie
  • I’ll read 20 words and you should not write anything until I give the go ahead. time      draft slot greetstab      say hand dentsolve      off dirt stalehouse      royal plot stonemutt      court out diceWait, before you begin writing, let’s start at the number 21 and count backwards in intervals of threes out loud as rapidly as possible, so you'll start at 21, then the next is 18, and so on. 21, 18, 15, 12, 9, 6, 3, 0Ok. Now write as many words as you can remember, regardless of order.
  • Count how many you got right by comparing your list with the one on the screen.  How many of you got 1-4…5-8…9-12…13-16…17-20?Did you notice anything about the items in the list? Answer: The words were broken up into five different categories, with four items each. 2:Let’s try again. I’ll read a list of 20 words. Do not write anything until I give the go-ahead. Write as many words as you can remember, regardless of order. Do not guess.bream    clog       chap wreaklater          Mayor trout listpot          else lot smugstart          wage tape duckjob          jowl dusk big
  • Count how many you got right. Did you do better or worse this time compared to the first? Why do you think that is?Which list was the easiest for you? Most people do their best on Experiment 1. Here’s whyExperiment 1: You had only five categories of things to remember: money, fruits, directions, names, and colors.  The number of words is much easier to handle when they can be grouped.  The list was made entirely of everyday, common nouns.  North and apple are words that we've used a lot in our life, so the path to remembering them is strong and easy to use.  You had nothing to complicate your task after the words were read, you simply wrote them down. Experiment 2:They were all words that weren't very common in daily life and were 20 separate words – they couldn't easily be grouped.  Since the short-term memory can really only handle about seven things at a time, five categories weren't hard, but twenty words were.  These differences made experiment 2 harder. Experiment 3:The words were somewhat related (like dice, hand, royal can be all; related to cards) by you, but this required thinking that might distract you from your task.  They were mostly uncommon and hard to remember.  However, the biggest difference is that after this experiment you were asked to repeat back numbers by threes, which requires thought.  This thought probably distracted you (like nearly everyone else) and thus your score was lower here.
  • The thing to takeaway from all of this is that people’s ability to remember – let alone understand things – is limited. When we introduce change – new processes, new strategies, new initiatives – we’re asking them to process a lot. Where communications can help is breaking down change into manageable pieces so people can succeed.People remember things better when they can put it to a context Simple, everyday language works bestPlan for daily distractionsHere’s how we did that with Operation Customer Connect….
  • Used political tool – message platform – to Provide a meaningful contextProvide simple language Keep communications simple so anyone could use itTied OCC to an effort our employees already bought into and found personally meaningful – our vision to be the most admired company. Showed how OCC fit into Baxter’s overall strategyUsed everyday language – avoided corporate speakTapped into employees motivators and emotions – things like customers counting on us, the camaraderie of our workforce and desire for common success, and being the recognized leader Provided rational facts/proof points to back up the emotional headlinesHere’s where trust is especially important – we provided this platform as concepts and encouraged people to put it in their own wordsThe worst thing you can have is supervisors/managers/project leaders not owning the messages – you get situations like a supervisor reading off a talking points document, which obviously came from corporate, to a room full of disbelieving employeesThe platform was an essential tool in our small c communications approach – it provided the right context, made communications simple, and was a tool that was easily applied in everyday conversations
  • The message platform was the basis of all communications. Provided other tools to support Key to “small c” communications is simplifying so people can own the message/content and run with it.To quote a CEO I worked with, “If you’re explaining, you’re losing.”BULLETS…Because OCC was an effort that effected business processes, technology and people across the entire North American supply chain….we needed to provide our change leaders and supervisors with tools to help educate employees and build employee confidence in leaders ability to pull it off.Visual map – Showed flow of information, technology, product and peopleActed as a map for supervisors to say “you are here” and help demonstrate the larger picture to employeesSeems complicated – but this one visual was created from more than 1,000 pages of detailed process and technology manuals. Simplifying is not always easy!Put all change into a common logic system – so it could make intuitive sense Handbook – I’ll pass a couple of these around the room…but I need them backProvided everything a manager would need to know to be dangerousEasy, simple to use and find infoTool helped supervisors talk about changes happening outside of their organizationOnline resource kit –Included handbook, success stories, FAQ, implementation updates, outcomes from workshops, standard managers presentation with talking points, guidelines for using toolsFINAL POINT: Key to small c communications here is understanding that people are busy enough. Communications has to support making their jobs easier, or they’re unlikely to lead the change
  • The message platform was the basis of all communications. Provided other tools to support Key to “small c” communications is simplifying so people can own the message/content and run with it.To quote a CEO I worked with, “If you’re explaining, you’re losing.”BULLETS…Because OCC was an effort that effected business processes, technology and people across the entire North American supply chain….we needed to provide our change leaders and supervisors with tools to help educate employees and build employee confidence in leaders ability to pull it off.Visual map – Showed flow of information, technology, product and peopleActed as a map for supervisors to say “you are here” and help demonstrate the larger picture to employeesSeems complicated – but this one visual was created from more than 1,000 pages of detailed process and technology manuals. Simplifying is not always easy!Put all change into a common logic system – so it could make intuitive sense Handbook – I’ll pass a couple of these around the room…but I need them backProvided everything a manager would need to know to be dangerousEasy, simple to use and find infoTool helped supervisors talk about changes happening outside of their organizationOnline resource kit –Included handbook, success stories, FAQ, implementation updates, outcomes from workshops, standard managers presentation with talking points, guidelines for using toolsFINAL POINT: Key to small c communications here is understanding that people are busy enough. Communications has to support making their jobs easier, or they’re unlikely to lead the change
  • Next point of our approach to small c communications is “focusing on what people really need”I think often those of us who are leading change, get excited about and can sometimes lose track of the need to bring people along.You’ve all heard the saying, “Just when you’re getting sick of saying something, employees are just starting to get it.”Well, focusing on what people really need means keeping individuals at the center of everything you do.
  • Ok, don’t get scared with this one. With OCC we started with what people had to do. For example…One of the key activities of our operations is generating a weekly production schedule. We started there.BUILD: First, we identified who needed to be part of the process & what they needed to bring to the table.BUILD: Then, we identified what happened with their work – who would use it downstream and what the downstream systems did with it, too.Provided people again with context and visibility to how their decisions affected other employees and functionsBUILD: Headline – When you break down big change to the level of specific individuals, people are much more likely to understand it, accept it and run with it.
  • Ok, don’t get scared with this one. With OCC we started with what people had to do. For example…One of the key activities of our operations is generating a weekly production schedule. We started there.BUILD: First, we identified who needed to be part of the process & what they needed to bring to the table.BUILD: Then, we identified what happened with their work – who would use it downstream and what the downstream systems did with it, too.Provided people again with context and visibility to how their decisions affected other employees and functionsBUILD: Headline – When you break down big change to the level of specific individuals, people are much more likely to understand it, accept it and run with it.
  • Now, remember with my small c=Big E model I mentioned that you need all three levels of communication in any change effort. Here’s an example of how we applied the small c principle of “focusing on what people really need” to our broad-based, Big C communications. Manufacturing were known as heroes. Didn’t trust Sales& Marketing to provide forecasts. Key challenge – get Mnfg to plan production against a consolidated, demand-driven forecast coming out of Sales & Marketing.Key players in mnfg felt their division was being strong-armed. So, we used our Connections newsletter to demonstrate mnfg leaders’ support and gradually get mnfg people comfortable with the Sales & MarketingHere you see an interview with plant leader at our first implementation site – honest interview talked about past performance and initial concerns, balanced with why he felt effort was good for BaxterInside pages – profiles of the new “business forecasters” – those folks in S&M who would lead the forecasting processBUILD – HEADLINE: In small c communications, you think about your broad-based channels outside of providing information…use them to address fears and alignment issues.
  • Now, remember with my small c=Big E model I mentioned that you need all three levels of communication in any change effort. Here’s an example of how we applied the small c principle of “focusing on what people really need” to our broad-based, Big C communications. Manufacturing were known as heroes. Didn’t trust Sales& Marketing to provide forecasts. Key challenge – get Mnfg to plan production against a consolidated, demand-driven forecast coming out of Sales & Marketing.Key players in mnfg felt their division was being strong-armed. So, we used our Connections newsletter to demonstrate mnfg leaders’ support and gradually get mnfg people comfortable with the Sales & MarketingHere you see an interview with plant leader at our first implementation site – honest interview talked about past performance and initial concerns, balanced with why he felt effort was good for BaxterInside pages – profiles of the new “business forecasters” – those folks in S&M who would lead the forecasting processBUILD – HEADLINE: In small c communications, you think about your broad-based channels outside of providing information…use them to address fears and alignment issues.
  • Our mission control hub was another way we focused on what people really needed.Centralized resource with business process, technology and communications experts Tried to minimize the corporate swarm – fewer people in plants to minimize disruption to operationsDaily call and issue resolution process helped support on site teams and demonstrate corporate as a resourceCaptured knowledge throughout implementation to apply at future sites and manage people’s expectationsProvided tools such as timed implementation checklists and training detail to plant managers well in advance of people showing up at their site so they could make operational contingency plansHEADLINE: It’s important in small c communications to “Stay out of the way.” Change is hard enough for the folks at our plants, it’s almost unbearable with corporate or consultant types hanging over your shoulder
  • Our mission control hub was another way we focused on what people really needed.Centralized resource with business process, technology and communications experts Tried to minimize the corporate swarm – fewer people in plants to minimize disruption to operationsDaily call and issue resolution process helped support on site teams and demonstrate corporate as a resourceCaptured knowledge throughout implementation to apply at future sites and manage people’s expectationsProvided tools such as timed implementation checklists and training detail to plant managers well in advance of people showing up at their site so they could make operational contingency plansHEADLINE: It’s important in small c communications to “Stay out of the way.” Change is hard enough for the folks at our plants, it’s almost unbearable with corporate or consultant types hanging over your shoulder
  • Our final approach to small c communications is something I’m sure you’ll hear a lot of over the next days – Involve people to gain their commitment
  • This is another slide you shouldn’t get scared of. With OCC, peoples roles and daily interactions were becoming much more sophisticated. For example…In the old system, the supply chain planner only talked with the production schedulerBUILD: After OCC, the supply chain planner had to interact with all of these peopleWe held interactive implementation workshops to let the people like this supply chain planner define for themselves how they would work in the new function.In the workshops, people got to decide the communication touch points and frequencyWe documented their decisions and “institutionalized” them in a people vision that became part of our standard HR processes (hiring, recruiting, etc.)BUILD: HEADLINE – With small c communications, it’s important to recognize that communication isn’t just what we do…it happens every day with every employee interaction. We can help shape that interaction by letting the people closest to the challenge devise the solutionPOSSIBLE QUESTION:Q: How did you integrate with HR?A: We had HR/OD reps as part of our team. Included people vision in training courses. Used people vision to shape future job descriptions
  • This is another slide you shouldn’t get scared of. With OCC, peoples roles and daily interactions were becoming much more sophisticated. For example…In the old system, the supply chain planner only talked with the production schedulerBUILD: After OCC, the supply chain planner had to interact with all of these peopleWe held interactive implementation workshops to let the people like this supply chain planner define for themselves how they would work in the new function.In the workshops, people got to decide the communication touch points and frequencyWe documented their decisions and “institutionalized” them in a people vision that became part of our standard HR processes (hiring, recruiting, etc.)BUILD: HEADLINE – With small c communications, it’s important to recognize that communication isn’t just what we do…it happens every day with every employee interaction. We can help shape that interaction by letting the people closest to the challenge devise the solutionPOSSIBLE QUESTION:Q: How did you integrate with HR?A: We had HR/OD reps as part of our team. Included people vision in training courses. Used people vision to shape future job descriptions
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  • Transcript of "Baxter supply chain case study"

    1. 1. Using “small c”communication totransform supply chainoperationsBaxter Case Study November 2011
    2. 2. change ordie? Baxter Case Study 2 ©2011 Gagen MacDonald LLG
    3. 3. given the option9 out of 10 won’t change Source: FastCompany, May 2005, “Change or Die” Baxter Case Study 3 ©2011 Gagen MacDonald LLG
    4. 4. change is emotional Turning Point “Let go and look forward.” Excitement Integrate “I’m on board.” Positive Commit Result Change Discovery & Discomfort Reality Negative Doubt Result Give Up “Can we do it?” “This is hard.” “Hold on and look back.”© 2011 Gagen MacDonald LLC Baxter Case Study 4 ©2011 Gagen MacDonald LLG
    5. 5. operation customerconnect (OCC) • inventory costs • customer service • planning • operational agility $40M Baxter Case Study 5 ©2011 Gagen MacDonald LLG
    6. 6. the eye of the storm technology organization processes Baxter Case Study 6 ©2011 Gagen MacDonald LLG
    7. 7. our engagement no burning platform Click to editchallenge silos Master title no clout style delayed gratification culture of heroes Baxter Case Study 7 ©2011 Gagen MacDonald LLG
    8. 8. communications challenge Fragmented Mandate Exchange Integrated 1 2 3 4 Best Practice ©2011 Gagen MacDonald LLC Baxter Case Study 8 ©2011 Gagen MacDonald LLG
    9. 9. the ask Baxter Case Study 9©2011 Gagen MacDonald LLG
    10. 10. small c = big E Baxter Case Study 10 ©2011 Gagen MacDonald LLG
    11. 11. small c = big E Mass Communications • publications e C designed for large group • company web • conferences consumption • video networks • employee surveys • senior leader blogs Inter-Group Communications • local webs & forums designed for information • focus groups & interviews sharing among teams, • wikis • cross-functional teaming departments, functions, etc. Interpersonal Communications • leadership coaching • supervisor support designed to influence • trusted advisor individual conversations E c • facilitation & intervention ©2011 Gagen MacDonald LLC Baxter Case Study 11 ©2011 Gagen MacDonald LLG
    12. 12. small c communications approachknow your audiences and the landscape Baxter Case Study 12 ©2011 Gagen MacDonald LLG
    13. 13. DO FEEL KNOWAnswer: Answer: Answer:What actions are What will motivate What information andrequired to achieve people to take that experiences will elicitdesired results? action? those feelings?What are we asking What feelings will What do people needpeople to do inspire the desired to need to know anddifferently? action? see to motivate them? Start Here! Baxter Case Study 13 ©2011 Gagen MacDonald LLG
    14. 14. DO FEEL KNOW ground allAnswer: Answer: Answer: communicationWhat actions arerequired to achieve What will motivate people to take that What information and experiences will elicit actiondesired results? action? those feelings? inWhat are we askingpeople to dodifferently? What feelings will inspire the desired action? What do people need to need to know and see to motivate them? Start Here! Baxter Case Study 14 ©2011 Gagen MacDonald LLG
    15. 15. chart and navigate Change Leaders Blockerssegmentation Bystanderstailored plansreceiver-centricperspective ©2011 Gagen MacDonald LLC Baxter Case Study 15 ©2011 Gagen MacDonald LLG
    16. 16. chart and navigate build Change Leadersrelationships Blockerssegmentation Bystanders alignmenttailored plans andreceiver-centricperspective ©2011 Gagen MacDonald LLC Baxter Case Study 16 ©2011 Gagen MacDonald LLG
    17. 17. small c communications approachtrust others to carry the water Baxter Case Study 17 ©2011 Gagen MacDonald LLG
    18. 18. North Pear Dollar EastApple Bill South GreenJohn Blue Grape RobertQuarter Red Nickel BananaDime West Yellow Charlie Baxter Case Study 18 ©2011 Gagen MacDonald LLG
    19. 19. Bream Clog Chap WreakLater Mayor Trout ListPot Else Lot SmugStart Wage Tape DuckJob Jowl Dusk Big Baxter Case Study 19 ©2011 Gagen MacDonald LLG
    20. 20. Time Draft Slot GreetStab Say Hand DentSolve Off Dirt StaleHouse Royal Plot StoneMutt Court Out Dice Baxter Case Study 20 ©2011 Gagen MacDonald LLG
    21. 21. context simplicityplan for distraction Baxter Case Study 21 ©2011 Gagen MacDonald LLG
    22. 22. trust others Why Change? Best Partner We will be the partner of Weve done great things, but choice--delivering customers are demanding consistent and reliable more. We must respond before service. Customers can the competition does. count on us. Vision We are laying the foundation of operational excellence to build the most admired company in health care Best Team Best Investment With a common vision, common processes and common goals, we will reach a We are working to become common success. the industry benchmark. Baxter Case Study 22 ©2011 Gagen MacDonald LLG
    23. 23. trust othersvisual maphandbookresource kit Baxter Case Study 23 ©2011 Gagen MacDonald LLG
    24. 24. trust others make people’s lives easiervisual maphandbookresource kit Baxter Case Study 24 ©2011 Gagen MacDonald LLG
    25. 25. small c communications approachfocus on what people really need Baxter Case Study 25 ©2011 Gagen MacDonald LLG
    26. 26. start withthe job Collaborate on Constraints: Validate net requirements and add constraints SUPPLY CHAIN PLANNER UPSTREAM USE OF THE PRODUCTION SCHEDULE: • PRMS tool uses schedule to generate material plans and production work orders. GENERATING • Production & Distribution PlanningCollaborate on MATERIAL WEEKLY (PDP): Each day, the frozen period (threeConstraints: Identify, PLANNER PRODUCTION weeks) of the latest production scheduleresolve critical raw is used by PDP for deployment planning SCHEDULE purposes. Each week, the latestmaterial constraints; addmaterial constraints to production schedule is sent to PDP for use in weekly net requirementsschedule generation • Strategic Network Optimization (SNO) tool uses production schedule to produce PRODUCTION a baseline, long-term (24-month) SCHEDULER production plan • APS Reporting tool uses the production schedule to generate reports Drive the Weekly Process: add constraints/capacity data; resolve inventory, net requirements or capacity issues; generate and© 2011 Gagen MacDonald LLC publish final production schedule Baxter Case Study 26 ©2011 Gagen MacDonald LLG
    27. 27. start withthe job Collaborate on Constraints: Validate net requirements and add constraints SUPPLY CHAIN PLANNER UPSTREAM USE OF THE get PRODUCTION SCHEDULE: specific • PRMS tool uses schedule to generate material plans and production work orders. GENERATING • Production & Distribution PlanningCollaborate on MATERIAL WEEKLY (PDP): Each day, the frozen period (threeConstraints: Identify, PLANNER PRODUCTION weeks) of the latest production scheduleresolve critical raw is used by PDP for deployment planning SCHEDULE purposes. Each week, the latestmaterial constraints; addmaterial constraints to production schedule is sent to PDP for use in weekly net requirementsschedule generation • Strategic Network Optimization (SNO) tool uses production schedule to produce PRODUCTION a baseline, long-term (24-month) SCHEDULER production plan • APS Reporting tool uses the production schedule to generate reports Drive the Weekly Process: add constraints/capacity data; resolve inventory, net requirements or capacity issues; generate and© 2011 Gagen MacDonald LLC publish final production schedule Baxter Case Study 27 ©2011 Gagen MacDonald LLG
    28. 28. rethinkbroad-basedcommunications Baxter Case Study 28 ©2011 Gagen MacDonald LLG
    29. 29. rethink broad-based communicationsaddressfears head-on Baxter Case Study 29 ©2011 Gagen MacDonald LLG
    30. 30. missioncontrol • central resource • daily issue resolution • knowledge capture Baxter Case Study 30 ©2011 Gagen MacDonald LLG
    31. 31. missioncontrol stay out of the way! • central resource • daily issue resolution • knowledge capture Baxter Case Study 31 ©2011 Gagen MacDonald LLG
    32. 32. small c communications approachinvolve people to gain their commitment Baxter Case Study 32 ©2011 Gagen MacDonald LLG
    33. 33. involve people Corp. Manufacturing Supply Chain Planner Optimize service and cost Communication of of chronic balance; lead-time reductions, customer service issues, hot receipts and expediting priority deployments and get well dates Transportation Customer Service S&OP participants Consult with BusinessForecaster during demand Production Scheduler planning process Provide inputs on chronic Material Planner Load Builder inventory issues and projected Business Resolve potential inventory inventory variances 14 weeks Forecaster Ensures raw material is shortfalls; reconcile net Resolve deployment alerts out available to meet scheduled requirements plan with capacity assist with daily production, manage constraints deployment issues; constraints and excess raw prioritization, hot receipts material at end of product life and expediting. Baxter Case Study 33 ©2011 Gagen MacDonald LLG
    34. 34. involve people communication Corp. Manufacturing happens with Supply Chain Planner Optimize service and cost Communication of of chronic balance; lead-time reductions, customer service issues, hot receipts and expediting priority deployments and get without well dates Transportation Customer Service and Consult with BusinessForecaster during demand Production Scheduler S&OP participants planning process Provide inputs on chronic us! Material Planner Load Builder inventory issues and projected Business Resolve potential inventory inventory variances 14 weeks Forecaster Ensures raw material is shortfalls; reconcile net Resolve deployment alerts out available to meet scheduled requirements plan with capacity assist with daily production, manage constraints deployment issues; constraints and excess raw prioritization, hot receipts material at end of product life and expediting. Baxter Case Study 34 ©2011 Gagen MacDonald LLG
    35. 35. business results • Successful implementation! • One-time cash impact ≈ $32M • Annual savings ≈ $11M • Inventory costs decrease $3M at first site • Inventory reduced by 20% at second site • Customer order fill rate improved by 10% Baxter Case Study 35 ©2011 Gagen MacDonald LLG
    36. 36. employeeperceptions• 87% understand OCC goals (up 43%)• 96% understand OCC’s impact on individual work activities (up 72%)• 80% indicate confidence in implementation (up 29%)• 63% receive regular updates from managers (up 50%) Baxter Case Study 36 ©2011 Gagen MacDonald LLG
    37. 37. critical competencies • business acumen • systems thinking • ability to synthesize • organizational savvy • influence without authority • empathy Baxter Case Study 37 ©2011 Gagen MacDonald LLG
    38. 38. • trust issues• god is in the details• plan for (but don’t indulge) complexity• no plan survives first contact!• context, purpose and meaning• values vs. understanding Baxter Case Study 38 ©2011 Gagen MacDonald LLG
    39. 39. ask ? ? ?? questions• What’s at stake for the areas of the organization you represent? ??• How would you describe your role today? How would you like to see that role evolve over the coming year? ??• Where do you think communications can have the greatest impact?• What new knowledge or skills would help you deliver the most value to the organization? Baxter Case Study 39 ©2011 Gagen MacDonald LLG
    40. 40. Thank Morgan Marzec P +1 312 673 7339 E m.marzec@gagenmac.comYou! Gagen MacDonald 35 East Wacker Drive Suite 2350 Chicago, Illinois 60601 U.S.A. P 312 640 9100 F 312 640 9101 info@gagenmac.com www.gagenmacdonald.com www.letgoandlead.com Baxter Case Study 40 ©2011 Gagen MacDonald LLG

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