compelling business need overview (cbn)

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Compelling Business Need Overview (CBN)

Updated: 11/2/2017

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Training Objectives

After completing this training, you should understand:

• Purpose of CBN

• 5 Steps to creating a CBN

• How to complete a CBN template

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Agenda

• CBN Purpose

• CBN Development Steps

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What is the purpose of a CBN?

The purpose of a CBN is to identify the internal and

external factors that trigger a need for change or

improvement.

It should drive the team to establish a vision of

where they want to be and push them to develop a

clear internal strategy to get there.

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Agenda

• CBN Purpose

• CBN Development Steps

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Steps to develop CBN

1. Understand the Current Situation

2. Develop Site Strategy

3. Create Slogan

4. Complete CBN Template

5. Communication of CBN

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A. Corporate Strategy B. Site Current Situation

1. Understand Current Situation

Long range plans

Corporate initiatives

Corporate vision (3-5 years)

Corporate goals & metrics.

Site reviews current / historical

results

Site develops SWOT

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8

2015 2016 2017 GATORADE

PERFORMANCE SERIES

GATORADE FITNESS SERIES

THE ATHLETE’S BASE

01 02 03

01 02

REFU

EL

REC

OV

ER

IGN

ITE

- Rebuild as an innovation brand

- Increase penetration with teen

athletes

- Bend the trend on the base

- Improved versions of 2015/16

innovations - Incremental occasions with new

health offerings.

CONTINUOUS INNOVATION BASED ON ATHLETE FEEDBACK

Additional forms to cascade down through distribution channels

Improved technologies

Relentless Improvement and accessibility

CONTINUOUS INNNOVATION

Three-Year Strategic Development Calendar

A.

Co

rpo

rate

str

ate

gy

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FROM THE BUSINESS TO THE TEAMS TO THE EMPLOYEE

Pepsi, Gatorade, Tropicana, Quaker

Marketing, R&D, Sales, Supply Chain etc

Albany, Atlanta, Indy, Las Vegas, Orlando, etc

1st Shift, Whse, QC, HSE, etc

A.

Co

rpo

rate

str

ate

gy

D:/Documents and Settings/dankoca/Local Settings/Temporary Internet Files/Content.IE5/Application Data/eRoom/eRoom Client/V7/Application Data/eRoom/eRoom Client/V7/EditingFiles/hpws_connect.swf

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Green at Goal – Yellow better vs. YAG but not at goal - Red worse vs. YAG and not at goal

Injury Prevention - IRR

# of Recordable Injury Claims P6

Location P6 2015

YTD

Better /

(worse)

YTD

index to

Plan

PISCATAWAY 0 1 5 20%

HARRISBURG 0 5 2 80%

JOHNSTOWN 0 3 (2) 217%

LAUREL PKG 1 7 (2) 129%

PHILADELPHIA 0 6 10 49%

CRANSTON 1 6 1 122%

ALBANY 2 11 (3) 105%

Total 4 39 14 84%

Injury Prevention - LTIR

# EE Injured with Lost Time P6

14 less Injuries vs. Prior Year- Meeting Goal (including 2014 Williamsport numbers )

Location P6 2015

YTD

Better /

(worse)

YTD

index to

Plan

PISCATAWAY 0 0 2 0%

HARRISBURG 0 1 (1) 113%

JOHNSTOWN 0 0 - 0%

LAUREL PKG 0 1 (1) 120%

PHILADELPHIA 0 3 2 59%

CRANSTON 0 1 2 57%

ALBANY 1 7 (1) 109%

Total 1 13 4 81%

4 Less lost time injures vs. Prior Year Meeting Goal (including 2014 Williamsport numbers )

B.

Sit

e C

urr

en

t S

itu

ati

on

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Fixed Costs

Production

Variable Cost

Production Warehouse

Q1 Q2 Q3 Q4 Index to Plan 92 108 106 109 Index to LY 88 105 104 106





Total Cost

Variable Cost

Fixed Costs


Total Cost

B.

Sit

e C

urr

en

t S

itu

ati

on

12 Peterborough and Trenton leadership/Site leader training April 2007

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Green at Goal – Yellow better vs. YAG but not at goal - Red worse vs. YAG and not at goal

B.

Sit

e C

urr

en

t S

itu

ati

on

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Complete a SWOT Analysis

S W

O T

Strengths Weaknesses

Opportunities ThreatsIn

tern

alEx

tern

al

Positive Negative

What are our

Strengths,

Weaknesses,

Opportunities,

and Threats?

B.

Sit

e C

urr

en

t S

itu

ati

on

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A. Select key objectives B. Select key performance indicators

2. Develop Site Strategy

• Multiple one sentence word statements

• Descriptions of the desired “future state” (should be)

• The statement must be within the capability of the operating unit to achieve

• Statements describe 3-5 years in the future

• Defined measurement type that can be tracked with numbers

• Measurements must be indicators of success for each of the objectives

• Capable of setting baseline and targets

• Capable of tracking and reporting • Trend charts desirable

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• A breakthrough improvement should be defined in a clear, qualitative statement

• The team needs to agree that it is a real need and will lead to major improvements or a step change

• It needs to be specific and should be valid for a time horizon of 6-18 months (depending on the business)

• It needs to mark a key milestone to come closer to the defined vision

• Identify how to measure the improvement

Objective Examples

Example Achieve the lowest conversion cost rate within the company

Example Reduce productivity losses to meet volume increase of 20%

A.

Key O

bje

cti

ves

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Key Results

2015

2017 2016

2014

Zero Loss Journey Example

PEOPLE PRODUCT PROCESS PROFIT PURPOSE

Safety IRR 13.4 Passed - AIB / PCNA & Food Safety Caleb Bradham – No RE = 58.9% / TE = 46.1% OOS = 1.4% 106% Productivity 6.4% Landfill TPM Phase 0

Safety IRR 8.0 Pass - AIB / PCNA & Food Safety Caleb Bradham RE = 62% / TE = 49% OOS = <1% 106% Productivity 5% Landfill TPM Phase 1

Safety IRR 4.0 Pass - AIB / PCNA & Food Safety Caleb Bradham RE = 66% / TE = 55% OOS = <0.75% 106% Productivity 4.5% Landfill TPM Phase 1

Safety IRR 0 Pass - AIB / PCNA & Food Safety Caleb Bradham RE = 70% / TE = 60% OOS = <0.5% 106% Productivity <4% Landfill TPM Phase 2

B. K

ey P

erf

orm

an

ce I

nd

icato

rs

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3. Create a Vision Statement

Clear sentence to represent the desired future state.

• Crisp and Concise

• Easily retained and recitable

• Captures Business Need

• Resonates with all employees

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Indy Gatorade – Compelling Business Need

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Compelling Business Need

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4. Complete CBN Template

CBN Template

• Format to compile the current situation, Slogan,

Objectives and KPIs in one communication

document

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Create a CBN Template

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External Factors

1.

2.

3.

4.

5.

6.

7.

8.

Internal Factors

1.

2.

3.

4.

5.

6.

7.

8. Y

Title Organization Name

Vision

Objective Statements / Key Improvement priority

1.

2.

3.

4.

5.

Measures of Success Baseline # Yr 1 Target # Yr 2 Target # Yr 3 Target #

1.

2.

3.

4.

5.

1.

2.

3.

4.

5.

1.

2.

3.

4.

5.

1.

2.

3.

4.

5.

1.

2.

3.

4.

5.

Summary of the strategic alignment

Vision: “CBN Slogan”

External/Internal factors: Why Do We Need to Change?

Note: SWOT analysis summary

Objectives: What do we need to

accomplish? (Words)

KPIs: How will we know a change has

occurred? (numbers)

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5. Communication

A. Site Leadership

• Once the CBN template

is created, the site must

cascade it to its Business

Units and to each of the

pillar teams.

• The team must create a

communication plan that

targets the “What’s in it

for me” for each of the

leadership groups

(supervisors, managers,

pillar leads, etc.

B. Site Front Line

• The CBN must be

communicated to 100%

of employees in the plant.

The CBN must be

explained in a way that

each level in the

organization understands

their contribution to the

plant objectives and in a

way that resonates with

the front line employees.