leanorga major changes 2010 communication kit to renault trucks employees - template

LeanOrgaMajor changes 2010

Communication kit to Renault Trucks employees - TEMPLATE

- dateFirst name Last name - Department

Title of the presentation

Agenda Description of hubs Hub level

Golden rules overall consequences Organisation Processes Systems

HQ/RTE/RTI level Overview Organisation Processes Systems

Process reengineering main impact summary

Description of hubs



Zone …

Zone 2

Key characteristics of a hub Generic Hub organization

SupportFunctions

After Sales

CustomerService

NetworkDev.

CommercialTrucks

Area mgr sales

Zone 1

Managing Director(Budapest)

HubManaging Director

NESASRT Europe NESAS /GSEBU/ SSC

A hub covers one or more countries and manages the field forces in the different zonesKey principles of Hubs

1 field team per zone

OperationalMarketing

Hub organization covers one or more countries with Standard processes (e.g. interactions to HQ) and

systems Streamlined organization (mirror with RTE) Homogeneous size & complexity Back office functions mutualized at hub level

Hub level responsibility Sales support/ logistic (Commercial Trucks) Techline (Cust. Service) Dealer/ investor relationship (Network Dev.) Local promotions/ events (Op. Marketing) National type approval / demos / range

Management (Product) Finance, HR & IS/IT (Support functions) Change of status for satellite markets from MC

to zones

Field force is responsible for day to day interfaces with dealers (sales and aftersales)

Zone concept: Geographical territory covering 1 or part of a country Similar size & complexity

Area mgr aftersales

Product



Hub structure in Europe

First Hubs planned

Organisation into "Hubs" will bring functional consistency and efficiency to the sales forces, who will then be able to focus entirely on their sales growth mission.

Albania

Belgium

Bulgaria

Denmark

Germany

Estonia

Finland

France

Greece

United Kingdom

Ireland

Iceland

Italy

Serbia

Latvia

Lithuania

Luxembourg

Macedonia

Moldova

Netherlands

Norway

Austria

Poland

Portugal

Romania

Sweden

Switzerland

Slovakia

Slovenia

Spain

Czech Rep.

Turkey

Hungary

Montenegro

Bosnia andHerzegovina

Croatia

• Spain, Portugal

• France

• Benelux

• Nordic countries: Denmark, Norway (incl. Sweden, Finland, Iceland)

• Alps & Adriatic: Austria / Switzerland (incl. Slovenia, Croatia, Bosnia)

• Hungary & Balkans (incl. Bulgaria, Greece, Serbia, Albania, Macedonia, Montenegro)



Main arguments for hubsRationale for creating a hub structure

Optimize cost performance Analysis of MCs shows a clear correlation between cost performance and size of an MC Small MCs are not in a position to lower S&A below a certain minimum level to maintain

a minimum infrastructure/dealer support Clustering of MCs to hubs would enable scale effects and cost reductions

Optimize support for MCs/hubs by the HQ Currently big MCs receive "too much" support by the HQ (focus on biggest volume),

small MCs receive "not enough" Creating hubs with a more similar size would strengthen the HQ support for the currently

smaller MCs

Opportunity to streamline Headquarter Less interfaces due to smaller number of hubs More homogeneous "customers" for the HQ with more similar needs

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Hub level Major changes 2010



Hub levelManagement perspective & consequences

Golden rules : Standard organisation for functions accross

countries, mirror principle between hubs and HQ/RTE/RTI

One distinct manager per function for all countries involved in the hub

Management director requires validation from Function director on Finance & HR- internal communication & IS/IT issues

Management team requires common decision making with Process owners on Discount management, Marketing plans & budgets follow up & Prioritization of projects roll out

One team single location

Sizing consequences : Creation/staffing of managers positions :

Product, Network development, HR & internal comm

Consolidation at Hub level of managers positions : Commercial Trucks, Customer Service, Finance, Marketing, IS/IT

Management procedures consequences Matrix principle and standardization

People consequences One team and one location forces the

culture & language mix Management positions have a broader

scope, and should attract brilliant people Physical move may be required



Hub levelLegal perspectives & consequences

For legal & tax reasons, existing structures will not be modified without in-depth detailed study & business case

Depending on specific studies by country/hub, the set-up of « to-be » hubs will be refined :

physical location & real estate issues, legal structures, contractual relationships with dealers / importers & physical / administrative flows from Renault Trucks to Country (Market

Company) and country to dealers

These outputs are not a prerequisite to implement hub management teams & common processes.



Hub levelCommercial Trucks function

Organisation Sales of New, Used Trucks, Rental, & Services, Key account & fleet

management

Process Discount management

Systems Partner Distribution Simulation database to prepare & approve discount policies / tariff updates



Hub levelCustomer Service function

Organisation Only one field force profile for parts & service business development Service Quality breakthrough project continuation Dealer Technical support & warranty claim handling removed from field

force & centralized at hub level (techline & warranty line) Dealer training moved to Network Development

Process Warranty & goodwill management Spare parts business development animation Technical support

Systems



Hub levelOp. Marketing function

Organisation Splitted from either Marketing (France, Spain, Denmark, Italy) or Sales

(Swiss, Austria, Belgium) or Sales & Marketing (Netherlands) Existed (UK, Hungary)

Process Marketing plan & budget elaboration & follow-up

Systems



Hub levelProduct function

Organisation See Op. Marketing comments

Process TBD

Systems



Hub levelNetwork Development function

Organisation Dealer Training Management transfer (comes from Customer Service)

Process Dealer Training

Systems



Hub levelFinance & IS/IT function Organisation

Transactional activities transfered to VBS (when positive Business Case) or alternatively on joint company / shared services level in the country

Finance : hierarchical link to RTE/RTI Business Control & functional link to Hub MD IS/IT : hierarchical link to CIO & functional link to Hub Finance

Process Preparation of Invoicing and Dealer Credit check kept local Execution of Invoicing done from HQ

Double synchronized invoicing for New Trucks Direct invoicing for Parts

Systems Partner Distribution for New Trucks ordering / invoicing : roll out complete in Europe

by 2010 SIPRE for Parts invoicing : Impacts of DFO project on Partner Distribution & SIPRE : to be documented



Hub levelHR & Internal Communication function

Organisation HR function to be staffed (Benelux, AdriAlps, France, South-East, Nordics) Hierarchical link to HRBP manager & functional link to Hub MD Internal comm activities transfer (comes from either Marketing or MD

assistant) AB Volvo « Human Ressources Transformation » (HRT) Project is the

guideline for HR Service Delivery Model including Organisation & SAP Systems, to be rolled out in Europe by 2011

Process See comment above on « HRT » project

Systems See comment above on « HRT » project

HQ/RTE/RTI level



RTE/RTI levelManagement perspectives & consequences

4 new activities within scope : Op. marketing Commercial Trucks (groups Sales

management, Business development, Key accounts…)

Customer Service (functional link) RTFS / VFS interface (functional

link)

1 activity removed from scope Importers management transfered

to Hubs

Broader europe management committee

Specific transition plan for Importers management Assistants



RTE/RTI levelCommercial Trucks function

Organisation : this replace the Business Development function, for trucks & services sales

Rental (comes from RTE-Network Development) Used trucks (comes from RTE-Business Development) Key accounts (comes from RTE) Sales management, organised by range instead of by region (comes from

RTE) Commercial support, including Sales reporting, & Partner distribution

support (comes from RTE-Business Development) Process Systems



HQ/RTE/RTI levelCustomer Service function

Organisation : this is an existing mission, to animate parts & service business development

New : Attached functionally to RTE-Head, and sits in RTE management committee

Attached hierarchically to Customer Service-Head Process Systems



RTE/RTI level Op. Marketing function

Organisation : RTE : this activity was transfered from DMPS Oct 01, 2007 RTE Update : range managers are now attached to the Product function RTI : no major change

Process Implementation of centralized marketing / comm budget control

Systems



HQ/RTE/RTI level Product function

Organisation RTE : this activity was transfered from DMPS Oct 01, 2007 RTE Update : range managers are now attached to the Product function Hierarchical link to : Functional link to :

Process Systems



RTE/RTI level Network Development function

Organisation International Training transfer (comes from Customer Service-RTIT) After sales consulting transfer (comes from Customer Service) Network Business systems transfer (comes from CIO) Customer Satisfaction & complaints management process transfer (comes

from Quality) Process

Implementation of roll out projects prioritization process for Hubs & Dealers

Systems



HQ/RTE/RTI level Finance & IS/IT function

Organisation Hierarchical management of Hubs CFO & IS/IT managers

Process Systems



HQ/RTE/RTI level HR & Internal Communication function

Organisation New : relay of HR internal communication for RTE/RTI

Process Systems

Lyon, January 2008

Process re-engineering

Main impacts summary



Discount Management process

Key process re-engineering impacts

New scoring tool in Partner Distribution to automatically calculate discount to dealers1), based on a country-specific set of parameters and rules

Limited number of exceptions2), validated through a formalized process (standard request application form) that could be dematerialized (e-workflow)

ASM role re-focused on truck sales animation, not on discount negotiation with dealers

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1) discount to customers might be included if the decision to follow dealers’ retained margin in the tool is taken

2) additional discount, given on top of standard discount calculated by the Scoring tool



Dealer Training process


Shared Hub Dealer Training strategy, formalized in yearly Training plans that present each Hub’s training need and work plan, aligned with RTIT global Training strategy

Centralized conception of Training programs (RTIT budget)

Centralized translation as far as possible (B-case)

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Operational Marketing process


Control by RTE/ RTI Op. Marketing Director of Hub Op. Marketing plans and budget, through: Regular review meetings (4 per year) Expense approval above certain amount (DOA1) Matrix by Hub)

Standardized reporting structure for Op. Marketing budget and expenses follow-up: Standard analytical structure Engagement follow-up

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1) Delegation of Authority



Spare parts & Workshop Warehouse animation processKey process re-engineering impacts

Field force (ASPSM) focused on business animation (spare parts sales, warehouse and workshop methods), rather than on financial or technical support to dealers :

Technical managers or Quality Service Managers + Spare parts managers replaced by Area Spare Parts and Service Managers Unique dealer interface (similarly as Commercial Trucks’ ASM)

Formalized Business Plans (BSA1)), setting monitored targets and driving a incentive policy : SP targets Warehouse and Workshop targets

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1) Business Strategy Agenda



Warranty ProcessManufacturer Warranty – Customer care – Goodwill Key process re-engineering impacts

Field force re-focused on business animation, rather than warranty and goodwill negotiations with dealers, thanks to a unique ComEx process

Only 1 entry-point for the network: the warranty contact, who answers to warranty, customer care and goodwill requests from dealers, by leveraging “Level 1 support” : Warranty contact “Level 2 support” : HQ – DCS

Goodwill managed at hub level by the warranty contact

Automatized process through RTLink to ensure information transparency : Campaigns conditions (safety recalls and service campaigns) Customer Care directives (digressive grids) Standard Goodwill request form/process

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Aftersales Processes – Relation between warranty, Customer Care and Goodwill

WARRANTY COVERAGE

CUSTOMER CAREDIGRESSIVE GRID

(Repetitive Technical issues)

GOODWILL

Time length after truck sales

Coverage scope



Technical support process


Empowerment of dealers on technical diagnosis

Technical support to dealers provided by the Hub on a case-by-case basis (triggered by a formalized escalation process), and not continuously by Technical Managers any more Flying techliner mission on request.

Formalized tracking of network competence on technical issues by Hub Techlines (regular meetings and analysis on Siebel-Argus database)

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leanorga major changes 2010 communication kit to renault trucks employees - template

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