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AALTO UNIVERSITY
QUALITY LEADERSHIP COURSE
CASE VEIKKAUS




KARRI PAAVILAINEN
VP, STRATEGY AND BUSINESS EXCELLENCE
VEIKKAUS OY
Mathematics
                                  +
                              Technology
                                  +
                               Marketing


2   25.7.2012 Case Veikkaus
FINNISH QUALITY AWARD 2010

                              • Veikkaus #1 in the main cathegory


                              • Strenghts:
                                 – ”Visionary leadership”

                                 – “Strong social responsibility”

                                 – “Strategy to action”

                                 – “People making success”


3   25.7.2012 Case Veikkaus
VISION
                                                                                            Change             2013
             In Search of Excellence                                                       2013-2015



                                                                                                             2012
                                                                                                  Cultural
                                                                                                  renewal


                                                                                       Underperformance
                                                                                        High performers
                                                                                                             2011
                                                                 Performance
                                                                 measurement


                                       Continuous
                                                                                       2010
                                      improvement
                                                                   2009

New direction
   2004                                             Leadership
                                                                                      2008
             ISO standards                                                     ESKO

  Quality
management                                                         Management
                                        Process                     systems
                      2005
                      Case Veikkaus   development                                            2007
             25.7.2012                                                                                              4
                                                          2006
OUR APPROACH TO QUALITY
• ISO/certificate approach
      – Selected service processes/areas


• EFQM frame
      – Documented procedures and principles in main EFQM areas


• Culture
      – Continuous improvement: set targets - measure - improve




  5    25.7.2012 Case Veikkaus
ROLES, RESPONSIBILITIES AND TIMETABLE:
ANNUAL EFQM DEVELOPMENT CYCLE
                          Annual                            Annual target
                         planning                            discussions




                        Communicate                         Follow up of
                         focus areas                         focus areas



                               Decision     QUALITY
                                          DEVELOPMENT
 Follow-up                     of focus   ANNUAL TIME-
                                                                            Follow-up
                                areas        TABLE



                        Preparation        EFQM self
                          of focus        assessment
                           areas                            EFQM
                                                         preparation


 6   25.7.2012 Case Veikkaus               Second half
                                            planning
KEY INGREDIENTS FOR EXCELLENCE

                                Culture




          Customer
                                            Leadership
           centricy




                              Performance
                              management

7   25.7.2012 Case Veikkaus
CULTURE IS INITIATED BY LEADERS
 • Results orientation
      – Ability to set clear goals
                                             Sample tools:
      – Encourage to aim high             •Cultural cornerstones
      – Require performance              •Personnel questionnaires

 • Continuous improvement                     •360°- reviews

      – Empower team members
                                           •Target/development
      – Support competence development          discussions
      – Renew processes                         •Recruiting

 • Interaction                             •Career development

      – Participate others
                                          •Management training
      – Give feedback and support            •Communication
      – Listen and coach
 8   25.7.2012
LEADERSHIP DEVELOPMENT

               Cultural cornerstones        Sample tools:
                Leadership culture      •Personnel questionnaire
                                        •Multirater evaluations
        Individual leader development   •Management team self
                                              assessments
      Management team development
                                         •Scenarios/simulations
                                           •EFQM framework
     Management system development




 9   25.7.2012 Case Veikkaus
Organisation

                                     Roles, tasks
        Reward
                                         and
        system
                                    responsibility




Financial          Management                 Decision
                                              making
planning
                     system                   forums




       Operative
                                     Processes
       planning

                       Strategy
                      definition
PERFORMANCE MANAGEMENT
                                 VISION          SUCCESS
              LEARNING
                                                  IDEAS
                                                                                        Sample tools:
                                                               PROGRAMS
                                                                                         •Target setting
                                     Strategy
   REPORTING                         process                                             •Performance
                                                                          GOALS

                                                                                          evaluations
                                 SUPPORT STRATEGY
MEASURES         Measurement
                 and reporting
                                 SUPPORT BUSINESS
                                   ACCOUNTABILITY
                                                     Annual planning
                                                        process          UNIT PLANS   • Talent management
                                 FIT BETWEEN PARTS
                                                                                       •Low performance
    REWARDS                         Individual                         BUDGETS              process
                                   development
                                    discussion                                          •Reward system
               DEVELOPMENT                             COORDINATION

                                     TARGETS


     11    25.7.2012
CUSTOMER CENTRIC APPROACH

                   Marketing
                                      Sample tools:
                                 •Customer orientation: way
               Loyalty program
                                         of thinking

                 Customer         •Customer database and
                 database              market surveys
                                     •Customer analytics
            Business processes   •Customization of marketing
                                  and customer experience
           Customized customer
                experience


 12   25.7.2012 Case Veikkaus
WRAP-UP: SOME THOUGHTS
• Fact based management is a starting point
• Take care that people work with most important tasks
• Raise the bar every year
• Tackle non-performance early as possible
• Perfect is the enemy of good
• Benchmarking and best practices are for ideas, not for copy-paste
• Make your own interpretation on EFQM framework
• Focus on external results, not internal procedures




  13   25.7.2012 Case Veikkaus

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Veikkaus business excellence development

  • 1. AALTO UNIVERSITY QUALITY LEADERSHIP COURSE CASE VEIKKAUS KARRI PAAVILAINEN VP, STRATEGY AND BUSINESS EXCELLENCE VEIKKAUS OY
  • 2. Mathematics + Technology + Marketing 2 25.7.2012 Case Veikkaus
  • 3. FINNISH QUALITY AWARD 2010 • Veikkaus #1 in the main cathegory • Strenghts: – ”Visionary leadership” – “Strong social responsibility” – “Strategy to action” – “People making success” 3 25.7.2012 Case Veikkaus
  • 4. VISION Change 2013 In Search of Excellence 2013-2015 2012 Cultural renewal Underperformance High performers 2011 Performance measurement Continuous 2010 improvement 2009 New direction 2004 Leadership 2008 ISO standards ESKO Quality management Management Process systems 2005 Case Veikkaus development 2007 25.7.2012 4 2006
  • 5. OUR APPROACH TO QUALITY • ISO/certificate approach – Selected service processes/areas • EFQM frame – Documented procedures and principles in main EFQM areas • Culture – Continuous improvement: set targets - measure - improve 5 25.7.2012 Case Veikkaus
  • 6. ROLES, RESPONSIBILITIES AND TIMETABLE: ANNUAL EFQM DEVELOPMENT CYCLE Annual Annual target planning discussions Communicate Follow up of focus areas focus areas Decision QUALITY DEVELOPMENT Follow-up of focus ANNUAL TIME- Follow-up areas TABLE Preparation EFQM self of focus assessment areas EFQM preparation 6 25.7.2012 Case Veikkaus Second half planning
  • 7. KEY INGREDIENTS FOR EXCELLENCE Culture Customer Leadership centricy Performance management 7 25.7.2012 Case Veikkaus
  • 8. CULTURE IS INITIATED BY LEADERS • Results orientation – Ability to set clear goals Sample tools: – Encourage to aim high •Cultural cornerstones – Require performance •Personnel questionnaires • Continuous improvement •360°- reviews – Empower team members •Target/development – Support competence development discussions – Renew processes •Recruiting • Interaction •Career development – Participate others •Management training – Give feedback and support •Communication – Listen and coach 8 25.7.2012
  • 9. LEADERSHIP DEVELOPMENT Cultural cornerstones Sample tools: Leadership culture •Personnel questionnaire •Multirater evaluations Individual leader development •Management team self assessments Management team development •Scenarios/simulations •EFQM framework Management system development 9 25.7.2012 Case Veikkaus
  • 10. Organisation Roles, tasks Reward and system responsibility Financial Management Decision making planning system forums Operative Processes planning Strategy definition
  • 11. PERFORMANCE MANAGEMENT VISION SUCCESS LEARNING IDEAS Sample tools: PROGRAMS •Target setting Strategy REPORTING process •Performance GOALS evaluations SUPPORT STRATEGY MEASURES Measurement and reporting SUPPORT BUSINESS ACCOUNTABILITY Annual planning process UNIT PLANS • Talent management FIT BETWEEN PARTS •Low performance REWARDS Individual BUDGETS process development discussion •Reward system DEVELOPMENT COORDINATION TARGETS 11 25.7.2012
  • 12. CUSTOMER CENTRIC APPROACH Marketing Sample tools: •Customer orientation: way Loyalty program of thinking Customer •Customer database and database market surveys •Customer analytics Business processes •Customization of marketing and customer experience Customized customer experience 12 25.7.2012 Case Veikkaus
  • 13. WRAP-UP: SOME THOUGHTS • Fact based management is a starting point • Take care that people work with most important tasks • Raise the bar every year • Tackle non-performance early as possible • Perfect is the enemy of good • Benchmarking and best practices are for ideas, not for copy-paste • Make your own interpretation on EFQM framework • Focus on external results, not internal procedures 13 25.7.2012 Case Veikkaus