ecolab’s powersteering journey - customer case study presentation

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Ecolab is the global leader in water, hygiene and energy technologies and services that protect people and vital resources. With 2012 sales of $12 billion and 44,000 associates, Ecolab delivers comprehensive solutions and on-site service to promote safe food, maintain clean environments, optimize water and energy use and improve operational efficiencies for customers in the food, healthcare, energy, hospitality and industrial markets in more than 170 countries around the world. Ecolab launched LSS in 2006 using PowerSteering as the project management tool to track their LSS and Cost Savings programs. There has been significant growth in the use and application of the tool since Ecolab’s launch in 2006. Ecolab has utilized PowerSteering and its functionality to manage, track and report on the synergies from their Nalco and Champion integrations as Ecolab has grown from a $5B company to a $13B company.

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  • 1. 1Impact 2013 PowerSteering User Conference GREG MELQUIST MANAGER, FINANCIAL ANALYSIS November 7, 2013

2. What Id Like to do Today Introduce Share Keysyou to Ecolabour journeyto success Futureplans2 3. 3Ecolab By the Numbers $13 BILLION ANNUAL SALES44,00025,000 SALES & SERVICEASSOCIATES1.3 MILLION CUSTOMERSSERVING CUSTOMERS IN171 COUNTRIES$30 Billion Market Cap90 YEARS YOUNG6,300 Patents 4. 4Ecolab: Uniquely Positioned To Deliver What Matters MostSAFE FOODCLEAN WATERABUNDANT ENERGYHEALTHY ENVIRONMENTS 5. 5Balanced Business Sales by RegionEcolab Pro Forma 2012 Sales $13BCanadaSales by Segment Other5%Latin America6%Institutional8% Energy Asia PacificEMEA13%31%US27%48%26% 36%Sales by StrategyAbundant Energy27%Safe Food22% Clean Water34%17% Healthier EnvironmentsIndustrial 6. 6Deployment Journey 7. History of Continuous Improvement at Ecolab 7Continuous 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 Enterprise Excellence Ecolab Fueling The Future/LSSEcolab Fueling The Future/LSSNalco/Ecolab Integration Nalco/Ecolab Integration2006Jan 2012Ecolab Europe RenaissanceMar 20121900 new projects 4000 new usersEcolab Fueling The Future/LSS Nalco/Ecolab IntegrationNalco/Ecolab IntegrationEcolab Europe RenaissanceEcolab Europe Champion RenaissanceNalco GetFITEcolab Fueling The Future/LSSEcolab Fueling The Future/LSS/ Nalco GetFITChampion/ NalcoJun 2012May 2013 Healthcare RDE & IT2014 IT Project portfolio 8. 8Enterprise Excellence Why We Exist Take costs and waste out, save $Scope and Impact$300M annual savings3,000 Projects150 trained black belts (50 active)Process improvementsProject executionProject portfolio set up / prioritization615 trained green belts (320 active)Integration leadership20 active deploymentsDevelop talent6 master black belts 9. 9Enterprise Excellence Model Distributed model: business, function or region own results, and resourcesSmall central team: train, track, coach, lead mega projectsOne Problem Solving Tool set: charters, project plans, interdependency, Kaizen, DMAIC, 7 StepResults Tracking: PowerSteering is source of truth for gross savings, owned by project leader, validated by financeRegions: resources aligned to Markets, support functions and businessesProject Management COE Resources, Projects and Results are owned by the Sectors, Functions and Regions Resources Deployment Leader Black Belts Green Belts Project LeadsProject PortfolioMegas Enterprise Excellence PMO provides training, coaching, support and drives MegasResults!! 10. 102013 Objectives Enable GrowthEnterprise ExcellenceDeliver Cost savingsDrive GrowthDrive Growth synergiesEngage TeamsProblem SolvingOwned by region, function, division Continuous Improvement and Integration activitiesCross-selling, Cross-supply Service delivery/ commercial excellenceMethodology and training to fit issue (DMAIC, 7-steps, Lean, Kaizen, etc) 8 Mega Initiatives: cross region, cross functional, central coordination 11. 11Keys to Success 12. Keys to Success Top Down SupportPowerSteering is the one source of truth If its not there, it doesnt existEngagement with our Financial Community A miss with initial launch Rigor around tracking savingsDecentralized approach PowerUsers in each Business/Region/FunctionAdoption of the tool Crawl / Walk / Run Kept the familiar in integration transitions via spreadsheetsEnsure organization ready for the changeOngoing training and support12 13. Financial Rigor Each project is assigned a Financial RepFinancial Rep converts the process metric into a financial metricProject benefits assigned to division(s) that will see them in their P&LFlexible model for updating Project Mgr, Fin Rep, Central ResourceSavings built into division plans and budgeted in PowerSteering Integral to budgeting process, performance tracking and reportingEach month current period is locked Any adjustments/true ups made in future periodsNo history changed13 14. Reporting Who is driving Who is benefittingAdvanced & Report Wizard Reports More robust reporting on Global Matrixed Structure Advanced Metrics Regions: Functions and DivisionsIntegration Reporting Basis for Public ReportingReporting needs to drive project ownership & accountabilityPipeline, projects, programs, blended portfolios14 15. 15New PowerSteering DashboardsDivision CDivision ADivision BNA Sector Division ADivision B Division C 16. 16Future Plans 17. 17Enterprise Excellence Ambition Program Enables and Accelerates Growth Sales process / commercial excellence Growth opportunity assessment Reduce non-selling timeAt the Customer for the Customer ProjectsDeliver 2% in annual Efficiency InitiativesMega Project Execution the hardest projects that cross function and regionDeployment across each relevant region/business/functionHigh performing team, known for: Sharing best practices across regions, divisions, functions Exporting talent to organizationDifferential advantage for Ecolab 18. Future Plans More robust reporting on Global Matrixed Structure IT Project Portfolio Resource Mgmt, Project Planning, Portfolio MgmtHealthcare RDE Regions: Functions and DivisionsStage gateSupply Chain Probability/Time AnalysisLoss Analysis18 19. 19Cleaner Safer Healthier