Growth Through Six Sigma in Marketing & Sales

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  • In July, at $1.923 billion Hard Recurring FV PTOI ($0.591 b Soft). Goal for 2003 is to be at $2.2 billion.
  • In July, at $1.923 billion Hard Recurring FV PTOI ($0.591 b Soft). Goal for 2003 is to be at $2.2 billion.
  • DuPont established five growth platforms in 2002. These platforms remain our engine of growth. They are well positioned to address the essential quality of life needs outlined on the previous charts. They also are well positioned to draw on DuPont’s unique capabilities in science, sustainability and ability to tackle the “big task.” The chart updates sales figures for 2003 estimated actual v. 2002. This represents a 13% increase in sales year-over-year. (These figures exclude DTI.) Looking ahead, our sales targets through 2010 are: - 2002: $20B - 2003: $23B - 2004: $25B - 2006: $30B - 2010: $40B
  • Growth Through Six Sigma in Marketing & Sales

    1. 1. Growth Through Six Sigma in Marketing & Sales Gayle J. Gibson Six Sigma Champion DuPont Electronic & Communication Technologies WCBF Successfully Implementing Six Sigma in Sales & Marketing Conference September 22-23, 2004
    2. 2. “… There is only one valid definition of business purpose: To create a customer….” - Peter Drucker Business & Growth
    3. 3. <ul><li>Marketing = process (to create the mix) </li></ul><ul><li>Value for all parties in the exchange </li></ul><ul><li>starts with understanding needs and wants (VOM, VOC) </li></ul>“ A social and managerial process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products of value with others.” - Philip Kotler Marketing
    4. 4. The Work of Marketing…. <ul><li>Gathering, analyzing, and communicating market place information </li></ul><ul><li>Defining, selecting, and targeting segments </li></ul><ul><li>Designing the market mix elements to create demand </li></ul><ul><li>Guiding the production and delivery of offerings </li></ul><ul><li>Action planning for marketing resources </li></ul><ul><li>Auditing of market place performance against a marketing plan </li></ul>VOC, DMA.. DMA.. DMAI. DMAIC
    5. 5. <ul><li>The Customer Advocate </li></ul><ul><li>Assist customer to recognize needs </li></ul><ul><li>Communicate the value proposition </li></ul><ul><li>Executes the pricing strategy </li></ul><ul><li>Develop new opportunities </li></ul><ul><li>Validate marketing segmentation & strategies </li></ul>Identify, grow, and retain profitable customers Sales
    6. 6. <ul><li>Understand & Choose the value </li></ul><ul><li>Communicate the value </li></ul><ul><li>Provide & Capture the value </li></ul>Marketing & Sales
    7. 7. To be the world’s most dynamic science company, creating sustainable solutions essential to a better, safer, healthier life for people everywhere.
    8. 8. Revenue: $27 billion (2003) Global: Operating in more than 70 countries worldwide R&D: >40 R&D/Customer Service labs in the U.S., >35 outside the U.S. Employees: 55,000
    9. 9. Five Growth Platforms DuPont Safety & Protection $3.5 B $4.1 B DuPont Electronic & Communication Technologies $2.5 B $2.9 B DuPont Coatings & Color Technologies $5.0 B $5.5 B DuPont Performance Materials $4.9 B $5.3 B DuPont Agriculture & Nutrition $4.5 B $5.4 B <ul><li>Market Leadership </li></ul><ul><li>Large Opportunities </li></ul><ul><li>Strong Capabilities </li></ul>Sales figures updated for 2003 actual. Original figures were 2002. Overall a 13% increase in 2003 vs. 2002 DuPont Textiles and Interiors $6.6 B Sold April, 2004
    10. 10. Sustainable Growth 10% Normalized EPS Growth the Operational Drivers of Sustainable Growth: <ul><li>SIX SIGMA </li></ul><ul><li>LEVERAGING OUR SCOPE & SCALE </li></ul>Mission KNOWLEDGE INTENSITY INTEGRATED SCIENCE PRODUCTIVITY
    11. 11. Transforming DuPont…... to our next Century 1802 1830 1850 1900 1925 1945 1990 2000 2050 2090 Birth Growth Maturity Chemicals, Energy Birth Growth Maturity Explosives Birth Growth Maturity Chemistry, Biology, Knowledge-Intensive Solutions
    12. 12. Voice of the Top Leader <ul><li>“ There is one way to execute growth strategies (do things the right way): </li></ul><ul><li>Six Sigma ” </li></ul>CEO Chad Holliday
    13. 13. Voice of Top Leader: M&S <ul><li>“ The key to sales and marketing excellence... is the use of disciplined data-driven processes and Six Sigma is the toolkit of choice at DuPont based on our successful track record.” </li></ul>CM&SO Diane Gulyas
    14. 14. DuPont Six Sigma Journey 2000 “ The Way We Work” Cost, Capital + Growth 2001 “ TLG” (Top-Line Growth) <ul><li>Transformation </li></ul><ul><li>Marketing & Sales </li></ul><ul><li>Supply Chain </li></ul><ul><li>Innovation </li></ul>2003 “ Processes” 2004 “ Transformation” 2002 “ At the Customer, For the Customer” Customer 1999 “ Focus & Win” Cost and Capital
    15. 15. DuPont has been building a Six Sigma Foundation Black Belts and MBBs - 1200 at the end of 2000 2120 BBs, 310 MBBs trained by year-end 2003 Green Belts - 6000 at the end of 2001 15,400 trained by year-end 2003 Top Line Growth , DfSS 2002 $1.4Bn revenue TLG projects, 2550 projects by yr-end 03 >900 DfSS projects Process Excellence 2003 Identified corporate core processes Transformation 2004 Marketing & Sales Effectiveness Operations Supply Chain
    16. 16. Six Sigma at DuPont Results: over $2.4 billion earnings (cummulative year-end 2003) Approach: VP of Six Sigma leads effort through network of Champions 16 SBUs focused exclusively on TLG 6 Operations/supply chain, 9 functions, & 3 regions Belts: 18,100 people trained DMAIC is core, added DfSS to support TLG Variants tailored to product development, marketing & sales Key Measures: $ PTOI , # Projects, #BB/MBBs, #GBs (trained & certified), future leaders, cultural indicators HR: Published policy requires certification of top leaders, and future leaders Freshness: Each SBU does quarterly reviews, 3x/year corporate network leverages learnings & renewal
    17. 17. Process View of DuPont Manage the Corporation & Business Portfolio Govern/ Plan/ Report Create/ Renew Deliver Current Offering Acquire/ Develop Enabling Infrastructure and Assets I.D. & Develop Markets & Channels Develop New Technologies, Products & Services Manage Physical Resources Financials Manage People Resources Manage Information/ Knowledge Develop Customer Solutions Provide Solutions
    18. 18. Six Sigma for Growth… …Evolution in DuPont <ul><li>Full time, marketing experienced TLG champions assigned in each SBU to extend the use of Six Sigma into development areas (market and product) </li></ul><ul><li>Each SBU set deployment goals in terms of resources (BBs, MBBs) and new revenue growth </li></ul><ul><li>Design for Six Sigma is a critical element of the Top Line Growth Deployment, particularly in product development </li></ul>
    19. 19. Six Sigma Projects at DuPont
    20. 20. “ Growth Equation” New P roducts New A pplications Develop New Business Model “ Go Outside the Box” + + Net Revenue Growth = New S ervices + New M arkets Develop + Create Create “ PAMS” Economic- driven growth + Actions to maintain share <ul><li>Improve: </li></ul><ul><li>quality </li></ul><ul><li>customer services </li></ul><ul><li>pricing </li></ul><ul><li>processes (delivery, ordering, etc) </li></ul><ul><li>Changing role in the value chain </li></ul><ul><li>Licensing </li></ul><ul><li>e-business </li></ul><ul><li>Alliances </li></ul><ul><li>Joint ventures </li></ul><ul><li>Mergers </li></ul><ul><li>Acquisitions </li></ul>Existing New Existing New Markets & Applications Products, Offerings, Technologies Existing business Growth Attrition Maintain Share Share & Improve Loss or Gain Gain Share + Base Improve +
    21. 21. What Types of Projects are “Top Line Growth”? <ul><li>Fighting “the fade” </li></ul><ul><li>At the Customer for the Customer </li></ul><ul><li>Sales and Marketing Processes </li></ul><ul><ul><li>Sales lead management </li></ul></ul><ul><ul><li>Pricing process improvement </li></ul></ul><ul><ul><li>Seller efficiency </li></ul></ul><ul><ul><li>Branding, advertising, MC effectiveness </li></ul></ul><ul><ul><li>Channel effectiveness </li></ul></ul>Share & Improve “ PAMS” <ul><li>Product development </li></ul><ul><li>Application development </li></ul><ul><li>New Market development </li></ul><ul><li>Services </li></ul><ul><li>Quality improvement </li></ul><ul><li>Acquisitions </li></ul><ul><li>New business model </li></ul>New Business Model
    22. 22. Earnings Growth Model ON TREND LINE GROWTH (TLG) SIX SIGMA PRODUCTIVITY RESTRUCTURING INNOVATION ACQUISITION 6  DfSS Time Earnings
    23. 23. Six Sigma and Development in DuPont <ul><li>The data shows we are good at development of exciting new technologies , not good at understanding the real market opportunity </li></ul><ul><li>DfSS brought the potential to improve market understanding by better VOC data, now being embraced by development teams </li></ul>
    24. 24. Before starting DfSS, need Six Sigma Competency & Culture Capable, Disciplined Process Accountability Bottom Line Results Focus on inputs Sense of Urgency Commitment to Training & Development for all employees Fact based, Data driven decisions Management Passion Values CUSTOMERS Communications
    25. 25. Improve an Existing Product or Process Characterize Requirements & Performance Identify & Characterize Key Elements in the Solution Define the Problem Phase 1 Phase 2 Phase 3 Define Determine the Best Solution Phase 4 Validate & Implement the Solution Phase 5 Measure Analyze Improve Control DfSS Introduction Design a New Product or Process Define Measure Analyze Design Verify
    26. 26. Because of the customer intimacy required… <ul><li>Development Projects are different </li></ul><ul><li>Patience - DMAIC brings fast results… Development and customer data takes time </li></ul><ul><li>Measures of Success - </li></ul><ul><ul><li>Failures are not defects </li></ul></ul><ul><ul><li># of Market DOE’s </li></ul></ul><ul><ul><li>Phase deliverables met vs plan, time to first revenue, cycle time, customer adoption, revenue from new products, etc </li></ul></ul><ul><li>Full engagement of Technology and Marketing </li></ul>
    27. 27. DfSS found broad adoption with TLG... <ul><li>Improved techniques for handling multiple Y’s </li></ul><ul><li>Tools introduced with DfSS were more easily applicable to sales & marketing </li></ul><ul><ul><li>Define & Measure: wove in market research and market segmentation (VOC, Kano, QFD, etc) </li></ul></ul><ul><ul><li>Design & Verify: logical connection to market entry strategy & marketing plans </li></ul></ul><ul><li>Risk management tools helped manage high uncertainty of growth </li></ul><ul><li>Multigenerational project planning and hypothesis-driven approaches helped keep projects ‘bite-size’ </li></ul>
    28. 28. DMAIC and DfSS- the right tools for the right projects Extension New Existing Process (Mfg, business) Product, Service, Offering Use, Market, Customer All needed processes already exists Modifications needed to adapt existing process New process or technology needed New product, service or offering Same basic offering adapted with new technology New end use, Target Mkt or New Customers Extend Target Mkt or Seek New Cust. Same product, service, or offering Design Existing use, Target Market and Customers IMPROVE DEVELOP DMAIC DfSS
    29. 29. Governance/ Decision Processes are also Critical to Success Market Assessment Investment Account DMAIC or DfSS Projects Ideas are Collected and Evaluated using a number of different tools Tools like Rapid Value or Market Assessment have proven useful in evaluating potential ideas Front-End Opportunity Deposited in Idea Bank Deposit Account
    30. 30. TLG: Market Assessments Design New Define the Problem Phase 1 Define Measure Analyze Improve Control Design Verify Characterize Requirements & Performance Phase 2 Identify & Characterize Key Elements in the Solution Phase 3 Determine the Best Solution Phase 4 Validate & Implement the Solution Phase 5 Define Measure Analyze Improve Existing Assess Market Define Measure Analyze ‘ Recommend’ ‘ Close’ D r a f t
    31. 31. Governance/ Decision Processes are also critical to Success DuPont integrated DfSS with its phased development process Decision Processes evaluate the overall portfolio of projects, strategies, and available resources Long Duration Projects require ongoing Assessment by Decision Boards or Stage Gate Processes
    32. 32. More TLG for Marketing & Sales... <ul><li>At The Customer, For the Customer Projects </li></ul><ul><li>Projects benefit customers AND deliver validated $ to DuPont (we must get paid too!) </li></ul><ul><li>Customers have been truly interested in DuPont Six Sigma, but projects must have a partnership </li></ul><ul><li>High interest from customers helps projects get completed quickly </li></ul><ul><li>Contribute significant hard financial benefits </li></ul><ul><li>Engages the selling organization and spreads the culture of Six Sigma </li></ul><ul><li>Many GB projects for Marketing and Sales professionals should be ATCFTC </li></ul>
    33. 33. Voice of Top Leader: M&S <ul><li>“ Data-driven disciplined processes are vital in every aspect of sales and marketing , from target selection to segmentation to pricing to channel management. </li></ul><ul><li>Everything starts with the Voice of the Customer and one role of the sales and marketing team is to ensure that we all hear that Voice and mobilize our resources to help solve our customers problems faster than competition, delivering the right solution at the right value .” </li></ul>CM&SO Diane Gulyas
    34. 34. Critical Success Factors <ul><li>Leadership Commitment </li></ul><ul><li>Resource Commitment </li></ul><ul><li>Data/Technical Rigor </li></ul><ul><li>Tracking Results to the Bottom Line </li></ul><ul><li>Integrating all of the pieces </li></ul>The Best but the Hardest Thing a Company May Ever Do !
    35. 35. DuPont’s Learnings are Similar to Other Companies Right Tools Rigorously applied Right People Dedicated 100% Right Business Opportunities Right Results
    36. 36. DuPont’s Learnings are Similar to Other Companies Right Tools Rigorously applied Right People Dedicated 100% Right Business Opportunities Hold people accountable for business results validated to the bottom line VOC , marketing, DfSS, data analysis, process improvement, etc <ul><li>The most strategically important projects (growth, for the customer, retain share, increase price, improve profitability, improve effectiveness, etc) </li></ul><ul><li>Projects with financial impact </li></ul>Marketing, Sales, technology people and make them special Right Results
    37. 37. My TLG Learnings... <ul><li>It works! - Six Sigma applied to Growth with marketing, sales, but… everything is not and does not need to be a Six Sigma project </li></ul><ul><li>Need focused training… help “demystify” Six Sigma : </li></ul><ul><ul><li>show the value proposition of Six Sigma ( success stories ) </li></ul></ul><ul><ul><li>talk their language ( must include examples from marketing/sales/growth) </li></ul></ul><ul><ul><li>heavy VOC training (including market research, Kano analysis, etc) is a must for all TLG Belts (MBB/BB/GB) and help Process Owners demand good VOC </li></ul></ul><ul><ul><li>show marketing & sales that they have processes (but typically have less operational discipline than manufacturing) </li></ul></ul><ul><ul><li>incorporate DfSS tools (QFD, risk assessment, etc)…DMAIC is not enough </li></ul></ul><ul><ul><li>provide financial analysts with examples of validation </li></ul></ul><ul><li>Use dedicated resources (BB, MBB, Champions for Front-End) that are marketing, sales, or technology innovators with with hands-on experience (to help convince their peers) </li></ul><ul><li>Involve sales & marketing people in TLG projects early and often </li></ul><ul><li>Still difficult to get good baselining, CTQ flowdowns, and project definitions for “bite-size” projects, but improving </li></ul><ul><li>Control plans and maintaining process documentation through people turnover is still a challenge </li></ul>
    38. 38. <ul><li>Understand & Choose the value </li></ul><ul><li>Communicate the value </li></ul><ul><li>Provide & Capture the value </li></ul>Marketing & Sales
    39. 40. Gayle J. Gibson Six Sigma Champion Electronic & Communication Technologies DuPont Chestnut Run Plaza, Bldg 711, Rm 2210F Wilmington, DE 19805 Email: [email_address] Phone: 1-302-999-5040 Gayle recently led the growth, Six Sigma, and e-business efforts for the Fluoroproducts SBU in DuPont, a $1.4 billion revenue global business. This set of businesses had significant growth objectives that include new market development, knowledge intensity, new product development, acquisitions, as well as improvement and extensions of the current business. Over the past 3 years, Gayle installed a new growth process that incorporates Six Sigma and other development tools, deployed the use of Six Sigma applied to Top-Line-Growth, and sales and marketing, instituted the use of growth dashboards to track key metrics, improved growth portfolio management, increased resources applied to growth, and worked through the top leaders on cultural shifts required in the organization to support and accelerate growth. Currently Gayle is the Six Sigma Champion for Electronics & Communication Technologies, a $2.9 billion revenue set of global businesses, where her focus is on the transformation of supply chain practices utilizing Six Sigma to improve responsiveness and reliability for customers. Prior to the Six Sigma assignments , Gayle was the Global Product Manager and growth leader for the Teflon® coatings business. She has had a variety of other roles in her 21 years at DuPont ranging from business consultant in Europe for business strategy and market development, growth in developing countries, to market and product development, to manufacturing supervision, R&D, and process engineering. Gayle has an MBA and a B.S. in chemical engineering from Texas A&M University. Bio for Gayle J. Gibson

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