The future of the collaborative world: breaking down the silos

Document technical information

Format pdf
Size 2.1 MB
First found Feb 12, 2016

Document content analysis

Language
English
Type
not defined
Concepts

Management wikipedia, lookup

Euro wikipedia, lookup

Collaboration wikipedia, lookup

Harley-Davidson wikipedia, lookup

Lego wikipedia, lookup

Lego Rock Band wikipedia, lookup

Transcript

The future of the collaborative
world: breaking down the silos
Carlos Cordon
IMD Professor
How the silos started?
• The rise of the big corporation: The creation of
functions and the birth of the M-form
Breaking down the silos: why?
• Lean: A big revolution, breaking down the
silos in the factory
Harley Davidson: breaking down the silos
A Harley-Davidson exec:
“What we sell is the ability for a 43year-old accountant to dress in black
leather, ride through small towns and
have people be afraid of him.”
Breaking down the internal silos
• New CEO at Harley Davidson: “The worst
factory I’ve ever seen”
• A factory with 40 independent factories, more
than one per model
• A culture of: “my way or the highway”
• The video shown at the factory canteen:
http://www.youtube.com/watch?v=jHxy0bzxrDY
Harley - Davidson
The video
The Legend
Harley Davidson Evolution Engine
Harley Davidson Motor Company: The Legend
• Biggest ride in the USA: 800.000 riders
• Committed customers and workers: They have tatoos of
Harley-Davidson
• They develop social networks before facebook
• Consumer Co-creation before the internet existed
From 40+ factories to 1:
Soft comes before Hard
• Transition model gave equal importance to:
– Soft parts: people, expectations and skills, leadership, behavior,
values and beliefs.
– Hard parts: tasks, processes, control and information systems.
• Leadership on the floor:
– Management to spend more time in the floor, visible and in touch
with the workers.
– Offices built so they could only be accessed by walking through
the stamping area.
• Spreading of best practices
– Whenever an important problem cropped up, people from other
factories became involved, not only to get fresh points of view
and ideas but also to spread best practices around.
Silos across departments
• Product development:
– We know what customers want
– Manufacturing should make what we tell them to do
• Manufacturing:
– Products incredibly difficult to make
– Low efficiency and too many variations
• Fortunately:
– Demand much bigger than capacity
– Customers were willing to accept what they got
Today: Collaboration all across
• The new culture of Harley Davidson:
– The process is more important than
any department
– Collaboration within the company and
with suppliers
– The state of the art in motor
companies
• Incredible:
– Mass customization for the customers
– The H1 program
– Much more motivated workforce and
suppliers
LEGO and DHL: Heroic efforts in
Prague
• As part of the turnaround at LEGO, logistics
was centralized in the Czech republic and
outsourced to DHL…
• … the situation became very tense in 2007
between LEGO and DHL…
Three-level Distribution Center Structure in Europe
Partially Outsourced; Partially Lego Operated …
3 level DC structure Europe
2004 - 2005
Man u f actu r in g
Ma nufa ct uring
De nm a rk
Pa ck a ging
Cze ch Re p.
Central DC
Denmark
Cen tr al D C
Level 1
Cen tr al W / H
Level 2
Custom e r s
UK &
I r e lan d
Ma nufa ct uring
Sw it ze rla nd
Central
Warehouse
Germany
11 different
European
logistics
operations
Out source d
Mfg EU/ Asia
Central DC
Switzerland
Switzerland
+ 60 suppliers of
logistics and transport
services
Assortment
Pack Assembly
Denmark
DC
Dunkerque
France
[email protected]
Denmark
Consu m e r s
Reg ion al D C
Level 3
Custom e r s
South Eur ope
DC
Lyon
France
LEGO
X--tended
tended line
line
Denmark
Denmark
DC’s
Overseas
DC
Billund
Denmark
DC
Hohenwestedt
Hohenwestedt
Germany
N on Eur opea n
Custom e r s
Custom er s
N or th Eur ope
Custom e r s
Ce ntr al Eur ope
Eur ope a n
Custom er s
LEGO
Education
Denmark
Denmark
Leg en d
Manufacturing
Customers
LEGO Operated
Outsourced
Not in Scope
LEGO and DHL: The four
musketeers
LEGO across silos: forums and
market wheel
• Logistics LEGO video from 8:39 to 10:30:
Forums and market wheels
LEGO new management team:
From 6 to 22 persons
• LEGO webpage history 2012: “Step up”
Philips: The need to collaborate with many suppliers
Rare earth
crisis; 2011
Japan tsunami; 2011
• Unraveling complex n-tier supply chains
• Intensive negotiations
• Supplier Headquarter influencing
Thailand floods; 2011
Financial crisis/Macro economy update: 2012
17
Philips: The Tsunami
• We know:
– Our direct suppliers
– We are going to lose sales
– Our suppliers do not know their suppliers situation
• We do not know:
– Sales to lose, it could be huge
– How to identify the weak points in the chain
– How to react
Philips: The Tsunami reaction
• A SWAT team:
– Find the suppliers of the suppliers of the
suppliers…
– Understand the weak points
– Develop alternative supplies
• What they learned:
– Need to collaborate and know the suppliers
chain
– Apple made 30 billion available to buy
“everything”
– Suppliers serve their most attractive
customers first
The future: Mass collaboration with
suppliers at Unilever
• Unilever Annual Report 2006: the word supplier is
mentioned 8 times. The report is 150 pages long.
• Unilever Annual Report 2009: the word supplier is
mentioned 24 times. The report is 150 pages long.
Stories and Legends from Unilever
• Lipton ICE TEA
• Supplier investing
Unilever Partner to win…
... over P&G open innovation
• Unilever buys for around 15 Billion Euros (2010 annual
report) and spends 900 million Euros on R&D
• Its suppliers invest around 5-6% of their revenues on R&D
• Thus, 5-6% of 15 Billion = 750-900 million Euros that
“Unilever pays its suppliers to do R&D on its behalf”… as
much as its internal R&D
http://www.youtube.com/watch?v=x7h-udBYE0Y
Unilever: THE SUPPLIERS’ DAY
• A great setting and the CEO of
your biggest customer saying:
“Yes, you heard me right… we
target to increase our sales by
30 billion Euros, while
reducing our environmental
impact compared to today”
• Here you are with another 40
most important suppliers for
that customer.
How to do it?
• Acquisitions? The last one was 1 billion
and there were not many left
• Emerging markets!!! Explosive growth
potential!!!
• 30 new factories per year in those
countries!!!
• “Innovation is a key lever: Bigger, Better
and Faster!!!”: Co-innovation with
suppliers, Openness and Intimacy are
key: “we must tell you what we want so
that you can come with the big ideas”
The CPO Speech
• We need to fuel this massive engine
of growth
• “WE NEED YOU”
• We must reduce our environmental
footprint and most of it is on the
suppliers side
• “We are simplifying our agreements,
we will also be more flexible with IP to
maximize value creation”
Amazing success: Unilever
Supplier innovation: a source of cocoa that provides
twice the pleasure in the brain…
Future trends: 3D Collaboration
• Collaboration between a chemical manufacturer,
a fabric producer and a clothing retailer in Brazil
• An innovation that makes changing the color of
the clothe very easy
• The chemical required is patented by the
chemical manufacturer
• The fabric producer has the know-how of the
process
• The retailer is the one to bring the innovation to
the market
A new Business Model
Chemical Multinational
Local fabric manufacturer
Local/Global retailer
The Innovator: a family company
• The father rescued the company
from Chapter 11 and build a healthy
fabric manufacturer
• They have received from a supplier
an innovative product that make
change the color of the fabric once
the final product has been made
• The fabric market in Brazil is
stagnating, so this is a new value
proposition
The Supplier: a Global company
• A Global leading chemical company
• “We have always been good at solving
customer’s problems, but not good at
transforming the new solutions to money
• There is no system to “breed” start-ups at
our company, less than US 500 M gets killed
by overhead
The Customer: a local retailer
• A local retailer selling in Brazil (between 20100 shops)
• Man t-shirts are a main category
• Positioned as a middle prize point and
usually present in shopping malls
• At the moment able to competing with the
fast fashion chains in the South Hemisphere
How to collaborate across
companies
• The need for governance in
cross company relations
• The role of the new leaders
(sponsor, leader and
administration)
• How to measure those
relations and drive them to
superior results
Governance in cross-company
relations
Supplier
Manufacturer
Sales /
Marketing
KAM
Purchasing –
Several Levels
Senior
Management
Senior
Management
Technical /
Operations /
Particular
Factory
Technical /
Operations /
Particular
Factory
The role of the new Leaders:
Transition Level and Assessment Tools
Dyad Leadership
Transitions
Customer
Supplier
Sponsoring the
Dyad
Sponsoring the
Dyad
Customer
Leading the
Dyad
Customer
Administering
the Dyad
Supplier
Leading the
Dyad
Supplier
Administering
the dyad
Dyad Assessment
Sponsor Level
Dyad Assessment
Leading Level
Dyad Assessment
Administering Level
How to measure: From the Dyad System
Attractivity Index® to the Dyad Maturity Level
From the Dyad Profile and System Attractivity Index®, the customer – supplier Maturity level
along 4 stages is determined:
Strategic Alignment
Cost vs. Value
Best Total Cost
Flawless Execution
DAI® = 1 - 3
DAI® = 4 - 6
DAI® = 3 - 5
DAI® = 2 - 4
Dyad Strategic Potential Index®
High
Product/Service
Innovation Potential
High
Low
Low
Process Improvement Potential
Dyad Profile and Dyad System Attractivity
Index®
The Dyad Profile is defined around 8 Success Factors:
Negotiation
6
Strategy
5
4
Joint Development
3
Top & Bottom Line
Performance
2
1
1
2
0
Mutual KPIs Evaluation
3
4
Key Stakeholders
Alignement
Know-How
Process and Organisation
Conclusion: The future belongs to
teams of companies collaborating
• The silos are a consequence of specialization
• Collaboration brings the advantages of
specialization and those of coordination
• We should manage networks rather than
interfaces
• Breaking the silos is the first step
Thank you very much

Similar documents

×

Report this document