Driving Innovation Process Effectiveness – How to overcome challenges in the execution & adoption of NPD processes as presented by Kimberly Clark and The J.M. Smucker Company

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Consumer goods organizations face an increasingly competitive landscape – dynamically changing trends, nimble start-ups and the expansion of store brands to name a few. Getting the right products to …

Consumer goods organizations face an increasingly competitive landscape – dynamically changing trends, nimble start-ups and the expansion of store brands to name a few. Getting the right products to market efficiently and establishing competitive differentiation through bigger, better products is more important than ever. Most organizations have a defined NPD process that in theory should help produce winning products in-market, but in practice falls well short.

This discrepancy often comes from challenges not with the process itself, but rather its execution and adoption by the organization. During this interactive event you will hear from your consumer goods industry and functional peers who will discuss some of the leading practices that have proven effective in overcoming these challenges. These Innovation Process Owners will share real-life stories from leading consumer goods companies in an open dialogue that attendees can actively understand, engage and learn from.

Learn:
• How your peers at Kimberly Clark and The J.M. Smucker Company addressed NPD Process execution and adoption challenges
• The top Successes they achieved at their organizations and why
• What they would have done differently in introducing or implementing their NPD process

To view this webinar in its full form, please visit http://budurl.com/jhpg

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  • SCOTT: Good morning everyone, I am Scott Siegel, Senior Manager with Kalypso and along with Bryan Seyfarth - Director of CG from Sopheon, we’d like to welcome you to the first installment of the Consumer Goods Innovation Exchange series. The Consumer Goods Innovation Exchange is a recurring Roundtable series of 3 web events this Spring that will feature knowledge-sharing, anecdotes and discussion from a variety of leading consumer packaged goods organizations. Kalypso and Sopheon have teamed up with Innovation leaders from Pepsico, Kimberly Clark, the JM Smucker Company and others to share with you their real-life experiences, challenges and successes of leading the Innovation processes and cross-functional teams at their organizations.Our vision for this series is that we can present firsthand experiences, but then from there, more importantly – through this Series - foster a dialogue and a shared learning environment that will bring you insight into real solutions taken by your consumer goods peers. Many of you face exactly the same external (market) and internal (adoption & execution) Innovation challenges - it is our hope that many of these solutions and ideas can be introduced or adopted at your individual organizations so that you too can overcome some of your innovation challenges to deliver better results in-market.Today’s session is focused on Innovation Process Effectiveness and how to overcome challenges in the execution and adoption of NPD processes.Part 2 of the series will be held in April focusing on ‘Making Innovation Global’ and then finally in May we will wrap up with an engaging 3rd session on ‘Improving Decision-Making in Gate Meetings’Add something else to tie up this slide and move to the next
  • BRYAN: What makes the Consumer Goods Innovation Exchange Series different from the myriad of other webinars and podcasts that you might be invited to can be found in the actual name of the series.It is a Consumer Goods, Innovation, Exchange SeriesBoth the presenters that we have assembled today along with audience that we have invited are industry and role peers.Those of us participating today are all in the Consumer Goods industry, we are all Innovation process and/or Portfolio OwnersAnd as mentioned earlier, the key to the value and success of this series is in the “Exchange” – the dialogue, the Q&A, the reflection on ideas and leading practices that we can all learn and share from each other. These are your peers. Today for instance we have:Tim Beattie (Director of R&D, Innovation Process) from SmuckerandBarbara Burns ….from KimberlyPresenting. The presenters and the audience share the similar roles, with similar responsibilities, expectations and challenges. What’s more – it is all being done against the same Consumer Goods industry backdrop with its unique nuances and opportunities.
  • SCOTT: OriginsThe idea for the CGIE came about from a series of discussions…realizations that Brian and I (or Scott and I…or Kalypso and Sopheon) had from what we were seeing with our colleagues in the market.First – it was clear from sitting in meetings and having discussions that time and time again we were continually hearing the same challenges and experiences related to the CPG market. Store brand competition, last minute changes from retailers, Wal-Mart being Wal-Mart…it was clear that tSecondly, it became quite apparent that every company – big or small, global or local, upstart or established – it didn’t matter - everyone had a well-defined and documented NPD Stage-Gate process. Most likely they had variations based on the type of project – with label changes requiring less rigor than a line-extension which had less deliverables or data inputs as compared with a new-to-the-world product. Regardless, in 2014 there are very few CPG companies without a defined NPD process. However, the adoption and execution of this process was where they were failing. Whether it was because team members felt it was too onerous or they were lacking the executive support or vision – the problem was not with the actual process – it was with the people adopting or effectively using the tools and process the were provided.Finally – as we all see and are invited to…there are many executive seminars – perhaps tailored to the VPs of R&D or Chief Innovation officers. And certainly software companies tout their User Groups as an opportunity to learn and improve. While these events certainly have value – they aren’t tailored and focused to the needs and unique challenges faced by the group of presenters and audience members that we have gathered for this series. Innovation Process Owners in the CPG industry.ExpectationsOur hopes for the series, and starting with today’s session is, if nothing else, if each and everyone of you come away from today’s session with just 1 idea or suggestion that you hear from our presenters or during the follow-up dialogue – that you can take back to your organization and try – to see if it yields some improvements. While we’d like it if you take down a list of 4-5 leading practices or ideas – following one of the themes of this series – we’d like to keep it practical and ‘real’. So again, at the very least – if each any everyone of you applies 1 new idea to improve the adoption and execution of your NPD process from what you learned today – that would be a success.From that 1 idea…we’d like to build this Exchange series with our next 2 installments to begin building this as a Community and a new resource for you and other CPG Innovation Process owners to glean, learn and share ideas to improve your Innovation, NPD and Portfolio processes.
  • Speaker Notes:2004 – Re-launch = Templates and consistency of data Prior to this, each business had their own process, and this initiative was to get everyone on the same playing field with process2004-2010 – We ran the process, but did not really have clear ownership of the process – Process management suffered – Recognized we had gaps2010 – Fix - added a NA process owner to re-align the consumer businesses2012 – Launched our global sectors, developed process to support our global initiatives 2014 – Right sizing the process to win in the local market – One shoe does not fit all – Using the global guiding principles, but scaling to win
  • Speaker Notes:Continuous Learning - We have continued to improve the process to deliver in market success. #1 – We were successful in convincing the businesses that these roles were crucial for success – Also, created a Global Network to provide support and build capability for people in these roles#2 - We assess the in-market/executional performance of each project – Also, we do an annual results analysis across the businesses to see systemic issues# 3- To prevent the process from becoming an over burden, and having them walk away. WE have been able to Sustain with this practice. Example – don’t have to use all the gates, except mandatory BFC and PEARL.
  • Stakeholder Management = In NA, we have a lot of structure in place because our businesses are so big. Because of this, we tend to not be as nimble as some of our smaller businesses. Identified the local market key challenges and designed the process to address their needs. Example: IN some markets may have 4 gates, other markets may just have 1Outside of NA – Reputation is that this is a big, complicated process that is going to slow down the local, smaller businesses. Showing them data and what works for them, they can see how the data will help drive success and meet their goals. Coming in and working with them.Process Sustainability – due to organization turnover; By having leaders perform their LSW, this will help ensure that the process is followed, and with sustainabilityLeader standard work is key for sustainability. Developed cellphone application which helps Leaders with what questions to ask for each gate.. Probing questions
  • Approach with regions – Listening = KeyK-C’s culture of inclusion and collaborationKey to process owners is that they understand what the business do and what their challenges are – if you don’t, you will struggle / more challengingSustainability key – Getting people to own the local process and ownership at the leadership level.As our businesses and markets have different end consumers, our challenge is to define flexible process and data requirements that reflect those different consumer needs but also allow an appropriate level of standardization:Freedom within a Framework: Give each business/market the freedom to collect data that is important for local decision making, but also needed a standard data set to enable corporate reporting on key metrics.Different capabilities: Many of our processes are adapted from North America (most advanced). We must understand that overseas markets will have capability work to do to get to any standards, and we must work with local teams to bridge those gaps.Different needs: Markets and businesses have different needs and constraints that they are solving for; our solutions must provide them local benefit or we will experience adherence challenges.
  • a series of complimentary resources to provide insight into best practices for approaching and tackling your biggest innovation and NPD challenges.Focus on peers in the consumer goods industry, and will include time for interactive discussion around key topics
  • a series of complimentary resources to provide insight into best practices for approaching and tackling your biggest innovation and NPD challenges.Focus on peers in the consumer goods industry, and will include time for interactive discussion around key topics

Transcript

  • 1. Driving Innovation Process Effectiveness How to overcome challenges in the execution & adoption of NPD processes Featuring speakers from
  • 2. Strategy OfficeInnovation Initiative About Our Facilitators Bryan Seyfarth, Ph.D., Director of Consumer Goods, Sopheon Bryan is the consumer goods segment leader for Sopheon. Bryan works with consumer goods companies globally to define and implement innovation best practices to improve new product output and financial success. His perspectives and analysis have appeared in such publications as CGT and Retail Leader, and he is a frequent conference presenter. Scott Siegel, Senior Manager, Kalypso Scott is a senior manager specializing in innovation strategy, global design and implementation of new product development and portfolio processes. He brings over 15 years of product management and product development experience with several leading brands and companies to Kalypso's clients.
  • 3. Welcome to the Consumer Goods Innovation Exchange • Virtual series featuring knowledge- sharing, storytelling & discussion with innovation experts and professionals • Real-life experiences, successes & challenges from leading consumer goods companies • Insight into real solutions for approaching and tackling your biggest innovation and NPD challenges Innovation in practice, not theory
  • 4. Bringing Together Industry & Role Peers Consumer Goods Leaders Innovation Professionals NPD Process Owners Presenters Audience
  • 5. Series Origin & Expectations • Recurring challenges and experiences across the industry • NPD process defined in theory but falls short in practice • Executive Summits and Software User Groups but no equivalent peer forum Build the Community New Resources ONE Idea or Improveme nt
  • 6. Strategy OfficeInnovation Initiative Survey Question: Does your organization have a well-defined innovation & new product development (NPD) process? Crowdsourcing the Discussion Yes, Our process is well-defined and adopted Yes, Our process is well-defined but adhered to loosely. Yes, Our process is broadly defined but lacks specifics. No, we are in the process of defining our NPD process. 24% 38% 31% 7%
  • 7. Strategy OfficeInnovation Initiative Survey Question: What part of the innovation and NPD lifecycle does your organization struggle with the most? Crowdsourcing the Discussion Strategic Innovation Planning Ideation & Concept Development Process Management Portfolio Optimization Other 28% 17% 31% 14% 10%
  • 8. Strategy OfficeInnovation Initiative About Our Presenters 8 a.m. CDT/ 2 p.m. CET Session Jim Boucher, PepsiCo Senior Director Supply Chain, Global Integration and Innovation Jim Boucher has been with PepsiCo for 28 years, focusing on Supply Chain Integration, Innovation and Commercialization over the last 13 years. This includes roles in Gatorade, Tropicana and now the PepsiCo Global Groups. During that time, Jim has implemented NPD models for an acquired business and a joint venture. He has also led the process improvements for several PepsiCo business teams. Most recently he led the transformation of PepsiCo’s Innovation Operating Model creating PepsiCo’s first Global Innovation Model. The new Global PepsiCo innovation processes includes new Innovation Portfolio Management Process and Common Gate Process. Dr. Barbara Burns, Kimberly -Clark Global Phase-Gate Process Owner, Corporate Innovation Team Dr. Barbara Burns serves as the Global Phase-Gate Process Owner on the Corporate Innovation Team at Kimberly-Clark where she champions capabilities aimed at developing a sustainable Phase-Gate and Portfolio Management Process for the enterprise. She has 24 years of experience at Kimberly-Clark with roles in new product development, corporate research and engineering, and plant operations. Dr. Burns has a Bachelor of Science in Chemical Engineering from the University of Maine, and attended the Institute of Paper Science and Technology for her master’s and doctorate degrees in Paper Science.
  • 9. Please Refer to the Session Recording for PepsiCo.’s Presentation Consumer Goods Innovation Exchange Series March 20, 2014
  • 10. Kimberly-Clark – Confidential Consumer Goods Innovation Exchange Series 10
  • 11. Kimberly-Clark – Confidential About Us • Location: Dallas, TX – World Headquarters • Sales: $21.1B • History: – Founded in 1872 – A Paper and Newsprint Company – Evolved to a Consumer Products Company – K-C has five $1 Billion dollar brands – 57,000 employees worldwide – Operations in 35 countries – Products are sold in more than 175 countries – #1 or #2 position in more than 80 countries • Product Offerings – Tissue products, diapers, wet wipes, – Incontinence products, FemCare products – Sterile wraps, safety products, medical devices – Surgical and infection prevention products • Segments – Baby & Child Care – Adult Care – FemCare – Family Care – K-C Professional – Health Care – Global Nonwovens 11 Well-Known Global Brands Our Vision “Lead the world in essentials for a better life”
  • 12. Kimberly-Clark – Confidential “KCNA Consumer Innovation Journey” 12 2004 Re-launch Stage Gate Process KCNA Consumer 2010 Check and Adjust of Process 2012 Global Process Launched 2014 Beyond – Local Processes Outside of NA
  • 13. Kimberly-Clark – Confidential Three main components in our Innovation Process: Front End of Innovation Stage Gate Closed loop learning, based on in-market results Post Launch Evaluation & Annual Analysis New Category Other Innovation Domain Expansion Projects Innovation Processes
  • 14. Kimberly-Clark – Confidential Rolling Three-Year Net Sales from Innovation 2010 Actual 2011 Actual 2012 Actual 2013 Actual $MM 2014 Forecast 2015 Enterprise Goal Business Results – Current plans give confidence we can achieve our goals
  • 15. Kimberly-Clark – Confidential Successes/Leading Practices Driving Innovation Process Efficiency How to overcome challenges in the execution & adoption of NPD processes 15 Leading Practice How Implemented 1 Local process owners – Provide support for the teams • Convinced businesses that roles were crucial • Created a Global Network 2 Continuous Learning • Assess the in-market/executional performance of each project • Annual results analysis performed 3 Right Sizing of the Process • We designed the local process with the regions involved • Right balance of structured entrepreneurship to meet business goals
  • 16. Kimberly-Clark – Confidential Challenges Driving Innovation Process Efficiency How to overcome challenges in the execution & adoption of NPD processes 16 Challenge How Addressed 1 Stakeholder Management • Identified the local market key challenges and designed the process to address their needs 2 Process Sustainability • Getting the local process owners in place • Developing leader standard work • Example: Cellphone app
  • 17. Kimberly-Clark – Confidential Closing Thoughts One size does not fit all Different Capabilities Different Needs Freedom within a Framework Local Ownership Listening is Key
  • 18. “Crowd-sourced” Q&A KEY THEMES • How to Achieve a Truly Cross-Functional Process? • How to Leverage Process Strengths/Overcome Weaknesses? • How to Conduct Training/Change Management? • How Do You Create Incentives for Adoption? • How to Apply the Right Process to the Right Projects? • How to Manage Process Changes/Continuous Improvement? • What Are Best-practices for Process Post-launch?
  • 19. Events in the Series Driving Innovation Process Effectiveness How to overcome challenges in the execution & adoption of NPD processes Thursday, March 20th Making Innovation Global How to support standard innovation and NPD processes across the organization Thursday, April 24th Improving Decision-Making in Gate Meetings The right data, people and processes to deliver value Thursday, May 15th bit.ly/innovation x • Register for upcoming events • Watch for content • Access onDemand
  • 20. scott.siegel@kalypso.com www.kalypso.com US: 1-216-378-4290 Europe: +31-651-186-191 bryan.seyfarth@sopheon.com www.sopheon.com US: 1-952-851-7500 Europe: +44 (0) 1483 685 735 Thank You! Feel free to address any follow-up questions to: