Transcript
Page 1: Ecolab’s PowerSteering Journey - Customer Case Study Presentation

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Impact 2013 PowerSteering User Conference

GREG MELQUISTMANAGER, FINANCIAL ANALYSIS

November 7, 2013

Page 2: Ecolab’s PowerSteering Journey - Customer Case Study Presentation

What I’d Like to do Today

Introduce you to Ecolab

Share our journey

Keys to success

Future plans

Page 3: Ecolab’s PowerSteering Journey - Customer Case Study Presentation

Ecolab By the Numbers

ASSOCIATES

SERVING CUSTOMERS IN

171 COUNTRIES

$30 Billion Market Cap

6,300 Patents

$13 BILLION ANNUAL SALES

44,000 1.3 MILLION CUSTOMERS

90 YEARS YOUNG

25,000 SALES & SERVICE

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Ecolab: Uniquely Positioned To Deliver What Matters Most…

CLEAN WATER

SAFEFOOD

ABUNDANTENERGY

HEALTHYENVIRONMENTS

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34%

17%22%

27%

48%

26%

13%

8%5%

31%

27%

6%

36%

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Balanced BusinessSales by Region Sales by Segment

Asia Pacific

Canada

US

EMEA

Latin America

Abundant Energy Safe Food

HealthierEnvironments

Clean Water

Institutional

Industrial

Energy

Other

Sales by Strategy

Ecolab Pro Forma 2012Sales $13B

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Deployment Journey

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History of Continuous Improvement at Ecolab Continuous Improvement Culture existed at both legacy companies Formal processes started 2006; initially focused on saving 20 Deployments and 400 belts led by function, business and region Nalco Integration accelerated project and program management capability Training and program driven by small Central Office

Ecolab Europe Renaissance

2006 May 2013Jun 2012Mar 2012Jan 2012

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Champion

EcolabFueling The Future/LSS

Nalco/Ecolab Integration

EcolabFueling The Future/LSS

EcolabFueling The Future/LSS

Nalco/Ecolab Integration

EcolabFueling The Future/LSS

Nalco/Ecolab Integration

Ecolab Europe Renaissance

Nalco GetFIT

EcolabFueling The Future/LSS/

Nalco GetFIT

Nalco/Ecolab Integration

Ecolab Europe Renaissance

Healthcare RDE & IT2014

IT Project portfolio

1900 new projects4000 new users

Champion/ Nalco

Enterprise Excellence

Page 8: Ecolab’s PowerSteering Journey - Customer Case Study Presentation

Enterprise Excellence

Scope and Impact

$300M annual savings

3,000 Projects

150 trained black belts (50 active)

615 trained green belts (320 active)

20 active deployments

6 master black belts

Why We Exist

Take costs and waste out, save $

Process improvements

Project execution

Project portfolio set up / prioritization

Integration leadership

Develop talent

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Enterprise Excellence Model Distributed model: business, function or region own results, and

resources

Small central team: train, track, coach, lead mega projects

One Problem Solving Tool set: charters, project plans, interdependency, Kaizen, DMAIC, 7 Step

Results Tracking: PowerSteering is source of truth for gross savings, owned by project leader, validated by finance

Regions: resources aligned to Markets, support functions and businesses

Project Management COE

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Resources, Projects and Results are owned by the Sectors, Functions and Regions

Project PortfolioResources• Deployment Leader• Black Belts• Green Belts• Project Leads

Enterprise Excellence PMO provides training, coaching, support and drives Megas

Results!!

Megas

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Enable Growth

Drive Growth

Engage Teams

Deliver Cost savings

Drive Growth synergies

Problem Solving

2013 Objectives

Owned by region, function, division Continuous Improvement and Integration activities

Cross-selling, Cross-supply Service delivery/ commercial excellence

Methodology and training to fit issue (DMAIC, 7-steps, Lean, Kaizen, etc)

8 Mega Initiatives: cross region, cross functional, central coordination

Enterprise Excellence

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Page 11: Ecolab’s PowerSteering Journey - Customer Case Study Presentation

Keys to Success

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Page 12: Ecolab’s PowerSteering Journey - Customer Case Study Presentation

Keys to Success Top Down Support

PowerSteering is the one source of truth If it’s not there, it doesn’t exist

Engagement with our Financial Community A ‘miss’ with initial launch Rigor around tracking savings

Decentralized approach PowerUsers in each Business/Region/Function

Adoption of the tool Crawl / Walk / Run

Kept the familiar in integration transitions via spreadsheets

Ensure organization ready for the change Ongoing training and support

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Financial Rigor

Each project is assigned a Financial Rep

Financial Rep converts the process metric into a financial metric

Project benefits assigned to division(s) that will see them in their P&L

Flexible model for updating – Project Mgr, Fin Rep, Central Resource

Savings built into division plans and budgeted in PowerSteering Integral to budgeting process, performance tracking and reporting

Each month current period is locked Any adjustments/true ups made in future periods No history changed

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Reporting

Who is driving – Who is benefitting Advanced & Report Wizard Reports

Advanced Metrics More robust reporting on Global Matrixed Structure

Regions: Functions and Divisions Integration Reporting

Basis for Public Reporting Reporting needs to drive project ownership & accountability Pipeline, projects, programs, blended portfolios

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New PowerSteering Dashboards 15

NA Sector Division A Division B

Division C

Division A Division B Division C

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Future Plans

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Program Enables and Accelerates Growth Sales process / commercial excellence Growth opportunity assessment Reduce non-selling time

At the Customer for the Customer Projects

Deliver 2% in annual Efficiency Initiatives

Mega Project Execution – the hardest projects that cross function and region

Deployment across each relevant region/business/function

High performing team, known for: Sharing best practices across regions, divisions, functions Exporting talent to organization

Differential advantage for Ecolab

Enterprise Excellence Ambition17

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Future Plans

More robust reporting on Global Matrixed Structure Regions: Functions and Divisions

IT Project Portfolio Resource Mgmt, Project Planning, Portfolio Mgmt

Healthcare RDE Stage gate

Supply Chain Probability/Time Analysis Loss Analysis

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Cleaner Safer Healthier


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