Positive Working Climate as Means to Lead Success
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Positive Working Climate as Means to Lead Success

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Merja Fischer, Wartsila Corporation

Merja Fischer, Wartsila Corporation



Positive Working climate as means to lead success

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Positive Working Climate as Means to Lead Success Positive Working Climate as Means to Lead Success Presentation Transcript

  • Positive Working Climate as the means to lead to success! Merja Fischer, Wärtsilä Corporation 27.5.2010
  • WÄRTSILÄ CORPORATION
  • This is Wärtsilä SHIP POWER POWER PLANTS SERVICES3 © Wärtsilä WÄRTSILÄ CORPORATION WÄRTSILÄ CORPORATION
  • Wärtsilä – Global coverage70 countries > 160 locations > 18’000 people WE SUPPORT OUR CUSTOMERS THROUGHOUT THE LIFECYCLE OF THEIR INSTALLATIONS BY OPTIMIZING EFFICIENCY AND PERFORMANCEWe provide the broadest portfolio and best services in the industry for both ship power andpower plants. We offer expertise, proximity and responsiveness for all customers regardlessof their equipment make in the most environmentally sound way.
  • Financial highlights MEUR 2009 2008 2007 2006 Order intake 3 291 5 573 5 663 4 621 Order book at the end of the period 4 491 *) 6 883 6 308 4 439 Net sales 5 260 4 612 3 763 3 190 Operating result before nonrecurring restructuring items 638 525 380 263 % of net sales 12.1 11.4 10.1 8.2 Operating result 592 % of net sales 11.2 Profit before taxes 558 516 372 255 Earnings/share, EUR 4.30 1) 3.88 2.74 2.03 Cash flow from operating activities 349 278 431 302 Gross capital expenditure 152 366 231 193 1) Earnings per share excluding nonrecurring items (EPS including nonrecurring items total EUR 3.94). *) Cancellations amounting to EUR 410 million have been eliminated from the order book during the review period January- December 2009.5 © Wärtsilä WÄRTSILÄ CORPORATION
  • Improved profitability MEUR 700 20% 600 15% 500 400 10% 300 200 5% 100 0 0% 2005 2006 2007 2008 2009 *) EBIT EBIT % *) Operating result before nonrecurring restructuring items6 © Wärtsilä WÄRTSILÄ CORPORATION
  • Topics of discussion• Translating values and vision into operations• Cycles of Chaos and Order• Building productivity through well-being of the people• How to guide Business by pricing of services• End-to-end procurement e-invoicing• National eInvoice project in Finland• The long and the short of it: what really worked in practice?
  • INTERNAL USE ONLY Wärtsilä Shared Service Center Journey March 2004 - Today Sept 2004 / 18 persons June 2007 / 83 pers October 2010 / 78 pers / 26 languages8 © Wärtsilä
  • What has driven us? Mission Vision Values We share InnovateTo ensure operational excellence by process providing innovative, high quality optimization Opand cost efficient globally optimized t en us expertise ne Measure Tr ss services through highly skilled and within & Improve motivated personnel. Wärtsilä. Automate Respect Motivate INTERNAL USE ONLY9 © Wärtsilä
  • 10 Transactions (columns) Transactions (columns) 20 0 0 6 000 12 000 18 000 24 000 30 000 36 000 42 000 48 000 54 000 60 000 20 60 20 0 1 e-Invoices 10 000 12 000 14 000 0 2 000 4 000 6 000 8 000 16 000 20 060 20 60 Transactions per FTE (line) 0 1 0 2© Wärtsilä 20 60 20 60 2 0 3 20 060 20 604 3 0 20 060 20 60 4 0 5 20 060 20 60 5 0 6 20 060 20 607 6 0 EDI, external 20 060 20 60 7 0 8 20 060 20 60 06 8 20 0 0 9 20 610 20 0619 0 0 20 61 20 061 0 1 1 Transactions 20 61 20 061 0 2 07 2 20 70 20 0 1 0 1 20 070 20 70 0 2 Paper, external 2 20 703 20 070 0 07 3 20 0 20 70 INTERNAL USE ONLY 07 4 0 4 20 0 20 70 5 0 5 20 070 20 706 6 0 20 070 20 70 07 7 20 0 0 7 20 70 07 8 20 0 0 8 9 20 70 0 9 Internal Invoices 20 071 0 20 710 20 071 0 20 71 3 months rolling average 07 1 20 1 0 1 08 2 20 71 20 0 0 2 1 20 801 20 080 0 2 20 80 20 080 0 2 08 3 20 0 20 80 08 4 0 3 20 0 20 80 5 0 4 20 080 20 80 6 0 5 20 080 20 80 08 7 0 6 20 0 20 80 8 0 7 3 months rolling average 20 080 20 80 9 0 8 Last months actual 20 081 0 20 809 0 20 081 1 20 81 0 0 20 081 20 81 09 2 01 0 1 20 812 09 Achievements 2005-2009: 01 0 100 200 300 400 500 600 700 800 900 0 1 000 1 100 1 200 1 300 100 200 300 400 500 600 700 800 900 Last Months Actual 1 000 1 100 1 200 1 300 1 400 Transactions per FTE (line) € € 20 0,00 1,00 2,00 3,00 4,00 5,00 6,00 7,00 8,00 20 06 0,00 2,00 4,00 6,00 8,00 10,00 12,00 14,00 06 2 0 01 20 01 0 0 2 0 6 02 20 6 02 0 06 2 0 6 03 20 03 06 0 20 04 20 6 04 0 0 20 605 20 6 05 06 0 • Den Norske Veritas prosess audit 4/5 20 6 06 20 06 0 0 20 6 07 20 607 06 0 20 08 20 608 0 06 • Employee turnover < 10 % (only internal) 20 6 09 2 0 09 • Process efficiency improvements 40-70% 0 0 20 6 10 2 0 6 10 0 06 • From Regional to one Global Unit in Vaasa 20 6 11 20 11 0 0 20 6 12 20 612 WSSC Operations Vaasa – Performance 07 0 (Europe+Americas+Asia, except for Shanghai) 20 01 20 701 0 • Customer satisfaction high 3,8-4,2 / in 5 scale 07 20 7 02 20 02 07 07 20 03 0 20 03 07 20 7 04 0 2 0 04 20 7 05 0 07 2 0 7 05 20 06 07 0 2 0 06 20 7 07 0 07 2 0 7 07 3 months rolling average 0 3 months rolling average 20 08 0 2 0 7 08 20 7 09 07 0 • Employyee satisfaction one of the highest 2006-2009 20 09 20 7 10 0 0 20 710 20 7 11 07 0 20 11 20 7 12 08 0 20 712 20 01 0 0 • Suppliers have given credit for fast processing of invoices 20 8 02 20 801 0 08 20 8 03 2 0 02 0 0 Last months actual 20 8 04 2 0 8 03 0 08 Last months actual 20 8 05 20 04 08 0 20 06 20 805 0 0 20 8 07 20 806 08 08 20 08 20 07 0 0 20 8 09 20 808 0 08 20 8 10 0 2 0 09 0 20 8 11 0 2 0 8 10 0 20 8 12 2 0 8 11 09 01 08 20 12 09 01
  • What has made this happen ? Clear Strategy People are the most important asset Courage and fast moves Trust and respect in every level Performance measurements: • Employee turnover, sick days, motivation & satisfaction, happiness • Customer satisfaction • Transaction per person • Cost per transaction • Benchmarking INTERNAL USE ONLY11 © Wärtsilä
  • 12 OK Good Happy© Wärtsilä Unhappy Ja Not so good n. 08 Fe b. 08 M ar .0 8 A INTERNAL USE ONLY pr .0 8 M ay .0 8 Ju n. 08 Ju l.0 8 A ug .0 8 S ep .0 8 O ct .0 8 N ov .0 8 D Dr. Feel Good Happiness Index ec .0 8 Ja n. 09 Fe WSSC Operations Vaasa b. 09 M ar .0 9 A pr .0 9 M ay .0 9 Ju n. 09 Ju l.0 9 A ug .0 9 S ep .0 9
  • People make it happen -even in Scorecard ! 13 © Wärtsilä
  • Bold journey with “cycles“ from “chaos to order” – respecting individuals and listening customers 2003 2004 2005 2006 2007 2008 WSSC customer satisfaction survey Asian In January preparation for Central American companies conducted in January indicated Companies implementing WE SAP To be included in regional positive and encouraging results from migrated Workflow started. WSSC in Houston WSSC customer. to Vaasa WIT, CMPL-IT, WFR, WNO, WSE, WDE, WCH, WOMFI, WPNL and WNL, WDK, WES, WGB, WIE joined Shanghai office was established IG process WPNO joined Regional WSSC Europe 17.2.2004 the WSSC strategy was Regional WSSC Europe. Transactions: to support Wärtsilä owned Global Transactions: Pur Inv. 280k and approved Pur. Inv: 460k and Travel: 60k Chinese companeis Monitoring Travel: 40k In April WSSC implemented Payment The Detailed desgn phase was WE SAP Workflow for purchase 1st of April Go-live of WSSC Decision to transfer all companies Handling Conducted 1.3.2004-31.5.2006 invoice handling (1st invoice was Indian Region in Mumbai. except for Shanghai to Vaasa efficiency parked on 5.4.2005 – WOMFI). optimization WSSC opportunityassessment phase started In November In September WSSC Focus on 10.6.2004 info went out that Regional Further optimization of took over the handling of 1st of September Go-live of WSSC Finance WSSC for Europe is to be established End to end processes; especially payment process. North America Region in Houston competence In Vaasa. Global Supplier pmt terms Creation 1.9.2004 WSSC Operation started with In the end of September WSSC WFI, WHQ, Modigen and WDFS and European Region moved to 1st of September WSSC operations All new SAP Promotion of electronic Preparations for the European new facilities and started celebrated its 2 years achievements Companies to Invoices Migrations, hand in hand with WE the team building and team Vaasa (transactions: Pur.inv: 140k and travel: development project. 24k Main projects: TOPP, Payment Travel cost In December WSSC strategy for Asset accounting accuracy, Workflow optimization, analyses India, Singapore, USA and Canada Processing globally G/L accounts harmonization, more globally was approved. from Vaasa INTERNAL USE ONLY invoices directly to WSSC 14 © Wärtsilä
  • INTERNAL USE ONLY © Life Works Consulting Oy15 © Wärtsilä
  • Together we can Collaboration Emotions/ Moods Sharing/ Innovating Learning/ Developing INTERNAL USE ONLY16 © Wärtsilä
  • Self organizing teams, to foster Organizational Learning Means: • Learning agreements • Self organizing teams • Readings • Development ideas • Cross team meeting Drivers: • Commitment • Values • Theories into practice • Working community is important • Sharing of knowledge INTERNAL USE ONLY17 © Wärtsilä
  • Four Leadership Strategies to enable Positive Deviance Foster compassion Foster forgiveness Foster gratitude Positive Build energy networks Climate Reinforce strengths Positive Positive Meaning Relationship Affect Human well-being Positive Connect to personal values Communication Highlight extended impact Build community Obtain best-self feedback Use supportive communication 18 © Wärtsilä Cameron K. S. p.14 (2008)
  • Productivity is build by and between people ”DARK” ”GREY” ”COLOURFUL” Burn-out Low motivation Energetic, insprired, positive INTERNAL USE ONLY19 © Wärtsilä
  • How to guide business by pricing of the services • Cost per transaction is the advanced model – more effective than agreed FTE. • Example: – paper invoice w/o PO 2 EUR – paper invoice with PO invoice 1 EUR – E-invoice 0.5 EUR similar model can be setup for billing invoice, cash collection, Master Data or contracts setup / maintenance and other processes. This is fair to the business –pays for real activities and it motivates them to use 21st century technology (e-invoices, PO etc.). INTERNAL USE ONLY20 © Wärtsilä
  • Process quality and efficiency is a joint effort Local Goods Accounts Payment Year endWÄRTSILÄ case examples Company Vendor Sourcing Purchasing reception booking Invoice handling handling closing ArchivingReceiving of purchase invoices from local company to WSSCtakes too long.Example 1: Invoice number 145/ payment terms 60 days net,invoice dated 24.3.2006, invoice stamped in local company on5.6.2006, WSSC sent the invoice to purchaser for checking on14.6.2006.Example 2: Invoice numbers 22198, 22274 & 22445/ paymentterms 30 days net, invoices dated 5.10.2005, 13.10.2005 and Step 1. When invoice is received at1.11.2005, invoices received in WSSC on 31.8.2006. Possibly no cost taken WSSC the payment date is already Vendor relations suffer during the correct month due.For more example cases please see the latest copy of invoices ERROR: Step 2. Vendor complains because of late payments, Step 3. Purchaser does not know (if no valuated GR done Step 4. WSSC receives calls fromreceived at WSSC on week 36! 500 invoices received, all overdue Initiator: Invoices are sent about overdue payment. possible problems to delivery why the payment is late, contacts for the PO or if no vendors and purchasers trying tobefore arriving (including "critical" vendors like Gadelius). too late to WSSC. Vendor relationship suffers. accuracy. WSSC to find out. accrual exists). explains the situation.Cross-company ordering.Example: PO 2500003193 WIT purchaser has created a PO usingthe company code/PO number serie for WFI-CMPLIT instead of Step 2. Material is receivedWärtsilä Italia. In this case the goods receipt is done under WIT into WIT Warehouse. Goodsbut the invoice will be sent to WFI-CMPLIT. This will cause extra reception is done whichwork in Purchasing, Goods reception, Invoice & Payment ERROR: means that the goods arehandling. Initiator: Purchaser uses the wrong reported under WIT company code/wrong purchase inventory/costs, but WFI- Step 4. Invoice can not be order number serie when creating a CMPLIT receives the invoice. processed because the PO number purchase order. If goods are already reported, used belongs to WFI-CMPLIT but Step 5. Purchaser creates a credit GR has to be reversed if only the rest of the information in the PO invoice and sends to WSSC to possible. A new PO has to Step 3. Costs are is for WIT. Additionally the invoice is correct the wrong invoice. A new be opened and GR to be booked/Inventory value addressed to WFI-CMPLIT. Step 7: Reports do not Step 1. Vendor sends the PO has to be done with the right done again. This needs to be increased under the Purchaser is contacted for match (Warehouse material to WIT but the company code. Statistics of the investigated in more details wrong company. corrections. inventories do not match). invoice sent is addressed to POs done for WIT / CMPL are to clarify what is the excat Possible differences in Step 6. WSSC processes the Possible differences in the WFI-CMPLIT. wrong. procedure in these cases. the GR/IR account. credit invoice made by purchaser. GR/IR account.This is one of the most occuring and time consuming errors.GR (Goods reception) is required for the below mentionedPOs. Purchaser releases the invoice for payment eventhough the GR is not done yet. Step 1. Invoice is received beforeExamples: ERROR: goods are delivered/goods receptionPO 4500208993, Step 2. Initiator: Purchaser done. When system is matchingPO 4500203228, approves the invoice without the invoice with the PO the VendorPO 4500207730, checking if GR is done or not ==> invoice administrator notices thatPO 4500199592. Invoice goes to MRBR list (payment GR is missing. Vendor invoice block list). Purchaser informs administrator sends the invoice to WSSC that GR is done and invoice purchaser for checking. can be completed. Step 3. Vendor invoice Step 5. Purchaser contacts GR administrator can not complete the department to clarify the case. Step 6. Two options: invoice because it is in the MRBR Step 7. In case A: Purchaser A) Goods are received but list. releases the invoice from the MRBR GR is not done = might be Step 4. Vendor invoice list and informs WSSC that the due to heavy workload, administrator informs the purchaser invoice is ready to be completed. In unefficient process flow, that the invoice can not be case B: Purchaser has to wait until unefficient way of working. completed because GR is not done GR is done (for all positions in the GR dpt informs the (there are POs where GR is done Local company might have PO) and after that purchaser has to purchaser that now GR is for 1 position but the rest of the the goods physically in the Vendor relations suffer release the invoice from the MRBR done. positions are without GR). stock but GR is reported because of late payments, list (often not done) and inform B) Goods are not delivered or Costs are not taken Step 9. Invoice is completed for too late (cost taken too Step 10. Vendor complains possible problems to delivery WSSC that the invoice is now ready delivered partly. GR dpt during the correct payment, most likely too late and Costs are taken during late). about overdue payment. accuracy. to be completed. informs the purchaser.. month. the invoice is overdue. wrong months. INTERNAL USE ONLY 21 © Wärtsilä
  • e-Invoicing Benefits in B-to-B Context Supplier Supplier Scanning Center Invoice Handling WSSC (Wärtsilä) Invoice Handling Payment Handling Business UnitSend the invoice Open the mail Fill the basic data Check the invoice Check the invoice Pay the invoice Paper Assort the invoices Send for the approval Approve the invoice Transfer the invoice Invoice Scan the invoicesSend the invoice Open the mail Fill the basic data Check the invoice Check the invoice Pay the invoice Assort the invoices Send for the approval Approve the invoice Transfer the invoice e-Invoice Scan the invoices Purchase invoice handling process e-Invoicing Target •Faster and high quality invoice processing and booking •Improving payment accuracy •Maximizing early payment discount utilization •Enabling better cash flow predictability and planning INTERNAL USE ONLY •Transparent and real time audit trail 22 © Wärtsilä
  • Finance Process Optimization is a joint and continuous effort! FICO - Core Teams (Divisions, Group, Company repr. WSSC, IM) Out-Box thinking “un-traditional” TARGET: AUTOMATED PROCESSING Cost transaction Open the mail Fill the basic data Check the invoices Check the invoices Process outcome Xxxxxxx Assort the invoices Send for the approval Approve the invoices Transfer the invoices xxxxxxx Scan the invoices INTERNAL USE ONLY23 © Wärtsilä
  • Support our Customer’s value by co-creation process (i.e., productivity and employee wellbeing): Efficient, electronic and automated processing, less cost, better quality , faster reporting and closings Create opportunities for Finance People to have better knowledge and skills (organizational learning) Facilitate development initiatives that benefits all e.g., eInvoicing, automated accounting, streamlined processes. Customers have to understand their active role in the process “ It takes TWO to Tango” Together We Can INTERNAL USE ONLY”Testing Service-Profit Chain Concept by Linking Employee and Customer Satisfaction Data” Licentiate Thesis.Copyright Merja Fischer (HUT)© September 2009
  • National eInvoice project in Finland INTERNAL USE ONLY25 © Wärtsilä
  • Deliverables of the National eInvoice Project by 2/20091. Two main national eInvoice standards harmonized (FINVOICE vs. TEAPPS)2. Minimum and Maximum eInvoice data requirements fieldsdefined by business category3. eInvoicing instructions and guidelines have been updated.4. Requirements of eTesting portal has been defined.5. Improvement and development requirements of eInvoice address portalhas been defined.6. Based on analysis on eInvoice contractual agreements – Conflicts with different contracts have been identified and preferable practices are defined – An optimal tender model will be created to ease the take off and comparability of different services/solutions of service providers7. An eInvoice portal will be created to improve and fasten the utilization of e- Invoicing within small and medium size enterprises.INTERNAL USE ONLY
  • eInvoicing: Business Model- A Holistic view Suppliers Customers Public Sector Households Nation Relational Cost efficiency Productivity No paper/ trash Competitiveness capital Increased “Less routine Smooth Integration work“ Serving the Productivity at payment with Productivity households workplace processes customers Quality and Document Good image as Profitability Transparency archiving a NationINTERNAL USE ONLY
  • Deadlines for incoming paper invoices & PDF: Denmark 1.2.2005 Swedish municipalities 2009 Nordea Bank 1.10.2006 Kone 1.1.2010 Tampere 1.7.2007 Aaltoyliopisto 1.1.2010 Singapore 1.5.2008 FKL 1.1.2010 Italy 1.7.2008 Turku 1.6.2010 Lindström 1.9.2008 Elisa 1.4.2010 IBM, HP 1.2.2009 Basware 1.5.2010 OpusCapita 1.4.2009 Deloitte 30.6.2010 Aditro 1.5.2009 Espoo 30.6.2010 Tieto 1.6.2009 Bank of Finland 30.6.2010 UPM 1.7.2009 Nokia 2010 Rautaruukki 1.8.2009 Oulu? 2010 Helsinki 30.9.2009 Tampere Chamber 31.12.2010 Kesko 1.10.2009 Wärtsilä 31.12.2010 Hansel 1.10.2009 Brazil 2010C o p y r i g h t 2 0 0 8 Ti e t o E n a t o r C o r p o r a t i o n Spain 1.11.2009 Greece 31.12.2010 Finland 31.12.2009 PwC 31.12.2010 This is a national interest => Increases productivity and competitiveness Source: Bo Harald/ Tieto
  • EC Expert Group on e-Invoicing Crystal clear mindset: Paper invoices have NO future in EUC o p y r i g h t 2 0 0 8 Ti e t o E n a t o r C o r p o r a t i o n 29 2010-03-07
  • Thank U all ! Together we are moreINTERNAL USE ONLY