TPC intro slides_KathyandSusan


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TPC intro slides_KathyandSusan

  1. 1. Delivering better results, faster bottom-up Alexander Hillenbrand Managing Partner May 2011 Discussion support slides
  2. 2. The biggest CEO challenge is to bridge the strategy-results gap… “Our company is embarking on a new phase of growth. How can I rapidly align my managers to the new strategy and drive home the game changing actions required?” “Our company is transforming to meet future needs. How can I infuse our organization with new capabilities, step-change process improvements and true inter-functional collaboration to win the future?” “We need a stronger follow-through to deliver results after adopting a new strategy and organizational focus. How can I deepen managers’ understanding of the company from an investor perspective and get them to act in line with TSR?” Typical CEO challenges/needs:
  3. 3. … also referred to as the knowing-doing gap. Want people to … understand Want people to… do <ul><li>Financial understanding </li></ul><ul><li>Business acumen </li></ul><ul><li>Leadership </li></ul><ul><li>Strategy </li></ul><ul><li>Change management </li></ul><ul><li>Operational efficiency </li></ul><ul><li>Improve (where we are – should be) </li></ul><ul><ul><li>Link daily decision to “SH value” (margin mix, efficiency, cost reduction) </li></ul></ul><ul><ul><li>Do things smarter not work harder </li></ul></ul><ul><ul><li>Step change improvements </li></ul></ul><ul><ul><li>Take-out non-value added in process </li></ul></ul><ul><li>Accelerate (what we do – should do) </li></ul><ul><ul><li>Get quicker results from new process or strategy or learning,.. </li></ul></ul><ul><ul><li>Step change improvements </li></ul></ul><ul><ul><li>Take-out non-value added in process </li></ul></ul><ul><li>Change </li></ul><ul><ul><li>Get ready </li></ul></ul><ul><ul><li>Reduce resistance to new way </li></ul></ul><ul><ul><li>Align org behind new strategy, process… </li></ul></ul><ul><ul><li>Encourage role models </li></ul></ul>Photo:
  4. 4. The most common approaches are top-down & “telling” in essence…
  5. 5. … which works well in the first phases of the “change path”… fragen Rough Planning: 2. Generating Motivation Detailed Planning: 3. Qualification & Cooperation Realization of Measures: 4. Commitment 5. Continual Support: Internalizing (Performance) Time Productivity, Motivation Change Initiation: 1. Create Awareness Original Performance Level Learning Saying Questioning (oneself) Hearing, Seeing and Reading Source: Tata Interactive Systems GmbH
  6. 6. … but can lead to unintended results in the later phases… Different understanding.. … different directions. => leading to frictions between functions that ought to cooperate Force-feeding views to people that have been hired to think for themselves. => Leading to change resistance. Image:
  7. 7. … where results are better & quicker with employee-driven “discovery”. Letting valuable managers discover bad and good approaches on their own terms increases their ownership and propensity to act on their plans. => Resulting in a motivational and inspirational atmosphere and a “can-do” culture. image:
  8. 8. When the employee decides to act, on the right things, results happen. The key to action is for each to resolve his/her goal, belief, feeling, value conflicts. Photo:
  9. 9. Our Behavior Change Path helps bridge the gap and find alignment Participants currently do… Therefore, participants will do… Exposure to the “The Practice Company” Event & Process Makes them: -view…from common perspective -think… -believe… -feel… -know… -choose interpretations role models state of mind Because they currently: -view…from their perspective -think… -believe… -feel… -ignore… -follow directives -follow role models -have a state of mind Photo:
  10. 10. Our events are immersive and practical, => geared towards “aha moments”… Business Simulations E-learning Self-assessment Coaching Team assignments Seminars Groups (small or large) Alone On-location Distance Virtual (ex. Secondlife) Images: Tata Interactive Systems GmbH Big Business Photo:
  11. 11. … and participants’ ownership and commitment to act on their plans.
  12. 12. Engagement examples
  13. 13. Engaging middle management in the GloBE journey. <ul><li>CEO change </li></ul><ul><li>Need to streamline & simplify for efficiency </li></ul><ul><ul><li>14 ERPs ->mySAP </li></ul></ul><ul><ul><li>600k -> 167k suppliers </li></ul></ul><ul><ul><li>Huge data ->50% bad </li></ul></ul><ul><li>Decentralized culture can lead to “clash” </li></ul><ul><li>Aim: Global Business Excellence </li></ul><ul><li>GloBE journey = $2.4bn, 3500 people </li></ul><ul><li>Under CFO guidance, standardize on 1 set of financials = EVA </li></ul><ul><li>Target group: international, middle managers (10-25yrs exp.) </li></ul><ul><li>Simplify EVA theory and make it practical </li></ul><ul><li>Include sim in 10 day course as capstone </li></ul><ul><li>First Internet-based seminar for broader roll-out </li></ul>Context: Actions: Nestle: Sales: $70bn, in 200 countries with 250k employees
  14. 14. Quicker business results by working smarter, not harder. <ul><li>Just gone private, new executives </li></ul><ul><li>Poor performance </li></ul><ul><li>Training need: </li></ul><ul><ul><li>GPROI </li></ul></ul><ul><ul><li>Business Acumen for Store Managers </li></ul></ul><ul><li>Pilot seminar for Store Managers w/ final pres to SVPs, VPs, DMs </li></ul><ul><li>Roll-out w/ DM in teams </li></ul><ul><li>Results analysis by Finance </li></ul><ul><ul><li>Payback immediate </li></ul></ul><ul><ul><li>Sig improvement on all KPIs </li></ul></ul>HBC: Sales of $7bn in 550 stores under 3+ banners Context: Actions & Results: 9x 12x 15x 5x Inv turns 33% 24% 22% 30% GP% 305% 285% 330% 150% GPROI $275 $425 $600 $170 Sales/f2 Target WMT Loblaws HBC  
  15. 15. Aligning sales and operations around strategic priorities <ul><li>Pana tough competitive, financial, structural stance </li></ul><ul><li>Pana new CEO 3yrs before & dramatic re-org </li></ul><ul><li>Culture change </li></ul><ul><ul><li>Japanese -> Global </li></ul></ul><ul><ul><li>Hierarchical -> ind. initiative </li></ul></ul><ul><li>Middle Mgr Course but needs improvement </li></ul><ul><li>Needs </li></ul><ul><ul><li>get Middle Mgrs on board </li></ul></ul><ul><ul><li>CCM understanding </li></ul></ul><ul><li>Designed a 5 day event for International middle managers </li></ul><ul><ul><li>Change mgmt </li></ul></ul><ul><ul><li>Business Acumen </li></ul></ul><ul><ul><li>Collaboration of 2 vendors </li></ul></ul><ul><li>Got CFO buy-in & support </li></ul><ul><li>Collect payback evidence </li></ul><ul><li>New challenge on horizon: make bigger business impact </li></ul><ul><li>Initiative: e-com project “” </li></ul>Context: Actions & Results: Pansonic sales: $111bn with a staff of 385k
  16. 16. Other interesting engagements: <ul><li>Sales $100bn, 5 banners, 2100 stores, 33 countries, 290k staff </li></ul><ul><li>Custom-build online Sim for virtual teams of new managers </li></ul><ul><li>Objective: understand the group, strategy, structure, financial measurements </li></ul><ul><li>Sales $15bn, 315 stores TX & MX, 76k staff </li></ul><ul><li>Re-application of HBC program </li></ul><ul><li>Participants: HIPOs, store mgrs, school of retail leadership </li></ul><ul><li>Objective: From Mgr to Leader, Retail Finance, Achieve results through others </li></ul><ul><li>Global, integrated financial services company, 50k staff </li></ul><ul><li>Creation of process simulation authoring platform </li></ul><ul><li>Objective: process improvements & “learning by doing” w/ six sigma program </li></ul><ul><li>Global logistics company part of DP, Sales $75bn, Staff:275k, </li></ul><ul><li>Online competition in 3 stages for university graduates </li></ul><ul><li>Objective: Talent acquisition and employer branding </li></ul>
  17. 17. At the end, we help you deliver results through your people (bottom-up vs. top-down) We simplify even the most complex We get people to find new ways We’re experienced industry execs Practical, leading-edge methodology Our participants deliver results Ex: Nestl é , Panasonic (work smarter not harder) Ex: HBC - online grocery (now part of Migros) - HBC, HEB, BAG-Rewe, Metro, Manor - P&G, Nestl é <ul><li>- Used in life critical situations </li></ul><ul><li>Partnership with client </li></ul><ul><li>Real behavior change </li></ul><ul><li>Take-out non-value added </li></ul><ul><li>Stop sub-optimal/wrong actions </li></ul><ul><li>accelerate understanding & application </li></ul><ul><li>align actions with strategy </li></ul><ul><li>bridge knowing-doing gap in daily actions </li></ul>
  18. 18. Thank you! Alexander Hillenbrand [email_address] Tel: 514 710 0542