Kaveh Kalantar | Zero to One with Kanban at CEMEX

1Copyright ©2019, CEMEX International Holding AG. – Confidential InformationCopyright ©2019, CEMEX International Holding AG. – Confidential InformationCopyright ©2019, CEMEX International Holding AG. – Confidential Information
Start From Where You
Are, And Do Not Copy
Other’s Way Of Working
Zero to One with
Kanban method at CEMEX
Daniel Escudero - Europe Regional Processes Head at
CEMEX
Kaveh Kalantar - Kanban Coach and Trainer

2Copyright ©2019, CEMEX International Holding AG. – Confidential InformationCopyright ©2019, CEMEX International Holding AG. – Confidential Information
The next Bill Gates will not make an operating system like Windows
The next Jeff Bezos will not make an e-commerce website like Amazon
The next Daniel Ek, will not create a music streaming company like
Spotify
THE NEXT ENTERPRISE AGILITY
SUCCESS STORY
will not have guilts, chapters, and squats in it
Continuously look inward & outward
Stay fit for purpose (today & in the future)
Role of Management is not degraded
Autonomy & act of leadership at all levels
Acknowledging unique identity & circumstances
Should not copy others systems of working
Must start from where they are today

Copyright ©2019, CEMEX International Holding AG. – Confidential Information 5Copyright ©2019, CEMEX International Holding AG. – Confidential Information
About CEMEX Annual sales of
US $13.7 billion
Ready-Mix
1,505 Plants
52 M m3 annual production
Cement
66 plants
69 M tons annual production
Aggregates
285 quarries
147 M tons annual production
Founded in
Mexico,
in 1906
Leading
Cement,
Ready-Mix &
Aggregates
company
Close to
40,000
employees
Present in
more than
50 countries

Over the past century, we have grown from a local player to one of the
top global companies in our industry. We have the people, the
culture & the opportunities to continue addressing society’s growing
needs with high-quality products and innovative solutions
1906
CEMEX is
Founded
1930 / 1931
Doubles its production
and does it first merger
1987
Deploys a company
wide network
CEMEXNet
1992
International expansion
and establishing its IT
arm Neoris
2001
CEMEX online service
for ordering is deployed
2017
Introduction
of new
Digital
Platform
1999
CEMEX is listed on
NSYE
2000
The “CEMEX WAY“
is launched

8Copyright ©2019, CEMEX International Holding AG. – Confidential Information
Superior
Customer
Experience
Digital
Technologie
s
New
Business
Models
The convergence of
Social, Mobile, Analytics, Cloud & Internet of the Things (SMACIT)
presents significant opportunities and risks for CEMEX
Customer-driven
world
Innovative
commercial models
to drive economic
value
Not an easy task, commitments made with internal stakeholders and market
Emerging business
models
New sources of
revenue & growth
Industry disruption
by new entrants
2015… Why are we transforming
CEMEX?

Proud company of
Latin America – a
symbol of
robustness and
stability
Efficiency and
technology driven
Top-down
organization, with
conservative roots
– mainly driven by
industry traditions
New paradigm
shift for C-level:
Marriage of
bottom-up and top-
down management
IDENTITY

CEO and Top Executive
Digital Training Program
70 executives
Developing a
digital mindset
within the
organization
100 Digital
Professionals in
Development (DPiD)
Digital Development
Centers
Monterrey / Prague
Learn, Work, Connect

Using
Design Thinking
& Agile
methodologies to
develop and
deliver customer-
centric features
38 SCRUM teams
500 people
Minimum Viable
Product (MVP)
Customer Journey
Experience Program
+3000 interviews
and surveys
Product Management
Process

~33,000 B2B
20+
Countries

Starting with large
process framework,
learning the hard way.
Not fitting to context
Improving agility
Across whole
organization
Adoption grew
Emergence of
different systems
of working
Leadership
trust
Loosen up prescriptive
process framework, focus
on practices and principles
Controlled evolution

Gradual shift to volunteered
based approach
New ways of working
”bloomed” outside of IT
Leadership praised all
emerging improvement
efforts
Past learnings, experiences &
leadership commitment to the
cause enabled the above

Deliver the right things for customers2
Predictable delivery1
Improve quality of work-life balance3
Continuous and systematic
improvement
4
2019
KMM
100+ Interviews after Global VP Prioritized

VISUALIZE
• Make work and its state,
risks & improvements
visible
• Visualize teams,
application & system
health metrics
EXPLICIT POLICIES
• Define transition process
policies
• Define interdependent
parties interaction policies
LIMIT WIP
• Shape demand by DoR
• Apply 70-30 pattern
during planning
• Encourage finishing
before starting
FEEDBACK LOOPS
• Start cross teams and
units coordination
• Run cross teams and
units retrospectives
MANAGE FLOW
• Define end to end
workflows
• Identify interdependent
parties
IMPROVE
TOGETHER
• Align organizations to
objectives
• Empower individuals and
team to improve
Principle #1 Work on
interdependencies &
expectations
Principle #2 Respect all roles & processes – no
need to have a grand change plan – evolve
daily
Achievement
Acts of Leadership
Transparency
Collaboration
Evolutionary Change
Respect
Flow
Initial Understanding

Energizing Movement
Allow evolution to happen
Control direction by end in mind
Inject energy when needed
Discovery of improvements
opportunities and ideas, while
following core practices
Support of management
Build capability by training
Empower individuals and encourage
act of leadership

Capabilities
Create capability within teams or service
groups to design and improve their system of
working
• Through Trainings, post training coaching
• And guided improvements
Interdependencies
Understanding interdependencies of teams
and units; and explicitly define policies around
that
Feedback Loops
Working on evolutionary feedback loops
horizontally and vertically: Across teams and
units and at different levels of the
organizations

Distributed team in 7 locations
to enable local reach
Europe, Middle East and Asia
» Fronting to the operations
» Deployment of global, regional and local
initiatives
» Ensure continuous operations
» 60+ people
» 15+ projects running in parallel. Several
technologies and practices in place
» 20+ Level 1 to 3 level customers distributed in
11 countries
» Many new services requested each month
Regional Deployment Team
Customers

Role of a Middle Manager as a Leader
in top-down organizations, with tight
social cohesion
Connecting top to bottom
Bridging the flow of information
Model behavior and shape culture

A low mature
leader with
minimum energy
can bring down a
high mature
organization
A high mature
leader needs lots
of energy &
patience to lift a
low mature
organization

Middle Management
Principles
Do not try shortcuts, be
patient and build the right
base first.
Build The Foundation
Focus on the whole
system, interaction &
feedback between parts
Focus on System
Support individuals and
teams to master their
trade
Improve Competency
Create environment for
groups to design their
systems of working
Provide Autonomy
Ensure everyone
understands the intent
Make Intent Explicit
Always lead by example,
and model desired
behavior
Model Behavior

Do Things
Right
Make Things
Better
Do the Right
Things
Fragile Manager
Mediocre Leader
Great Servant-Leader
Mediocre
Manager
Great Manager

Exhausting 2018 &
2019 not looking better
Customers satisfied
but not happy
Leadership asking
for efficiencies
Low team motivation
and engagement
Adopt current market
best practices

Conference in Germany as inspiration: autonomy to teams and new
leaders
Meeting with Kaveh (as Lean Kanban
Coach)
Internal strategy workshop resulting in initial set of improvements
Co-creation of new organization with generalize and specialize service
teams
Trainings to equip EVERYONE with knowledge
Looking to KMM for cultural readiness and practice appropriateness
20192018

Completion of Kanban Mgmt Professional #1
All teams prepared their Kanban
system using STATIK
Map existing service interactions between
internal teams and customers
Presentation of achievements
at the Enterprise Agility Europe -
'Maturity Matters' Kanban
Conference & Workshop ☺
20192018

20192018
Go global for deployment teams
Gamify improvements among teams
Prepare our upstream and downstream for projects and small
task
Work on defining our capacity, fine tune WIPs limits
Establish continuous improvements along KMM
Framework:
Create habit before engaging in more advanced meetings
and Kanban cadence
KMM assessments
Ensure interactions with other teams continues to show improvements in CEMEX

MY OFFICE

Acts of
Leadership
Transparency
Evolutionar
y
Change Initial
Understanding
Collaboratio
n
Flow
Respect
Achievement

Follow up on the change
on the improvements.
Team should see potential
benefits to improve
Act on change
Ad-hoc or regularly find
and start the next
improvement
Identify improvements
Teams seems to be improving,
customers are happier, things
are moving better.
“Things seem to be ok”
Find something to disrupt &
make the team reflect. Should
find by them self possible points
for self reflection
“How to disrupt the team”
Continuou
s evolution

THANK YOU

Kaveh Kalantar | Zero to One with Kanban at CEMEX

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