Life Cycle Management (LCM) Barriers and enablers to adoption

Claire Mortimer & Anthony HumeLandcare Research

International lit & NZ case studies

• LCM programme with six NZ case studies

• Collation of international experience

Emerging LCM definition

• Institutional shift in nature of business

• Integrated organisational approach

• Integrated value chain • Integrated value chain management approach

• A flexible approach• A pragmatic approach

LCA & LCM uptake internationally

• LCA methodology issues have dominated • Early comparison across sectors/countries • Later comparison of similar firms

• Every firm is different in it’s uptake (tailoring)• Factors driving LCM both internal and external to

firm

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• Critical factor of success• Prioritises focus• Can build commitment• Suggests tailored versus

standardised

Tailoring LCM to firm’s strategy & context (Organisational)

standardised programmes

Recognising complexity (Organisational)

• LCM changes the whole organisation

• Tangible senior management supportsupport

• LCM champion needs communications & organisational skills

NZ experience

• Firm didn’t anticipate time required for communication and organisational change

• LCM big concept - only now starting to embed• Staff had limited literacy in one firm• Staff had limited literacy in one firm• Important to align with existing or concurrent

programmes e.g. LEAN when possible• Difference between being used to change

processes and being good at embedding change processes

Cost–benefit of LCM adoption (Organisational)

• Costs may outweigh the immediate benefitsbenefits

• Need to factor in less tangible benefits

• Prioritise projects that provide quick financial success

NZ experience

Some firms achieved early benefits• 5 new products designed • ‘We have reduced costs with improved environmental

performance’.• ‘It’s been a great programme for us”..costs & benefit • ‘It’s been a great programme for us”..costs & benefit

realised’Intangible and long term benefits• ‘It’s a key part of brand values and our proposition’• ‘LCM will help with future business opportunities’But..• The staff resources high especially for small firms• Recession reduced customer demand

Ability to implement supply chain management

(Organisational Field)

• Shift to inter-organistional collaboration

• Challenge for • Challenge for complex products and small firms

• Different approaches developing based on LCM drivers

NZ experience

Barriers • Few firms felt able to influence supply chain • Supplier relationship often too weak to facilitate info

transfer• Key technical and environmental issues outside

control• Limited of better options in New Zealand

Enabler • Our scale and influence to control makes change

possible

Next steps

• Finish research programme

• Release of findings

• Revise and develop of LCM services for wider use– Develop NZ company business case – Need smart ways of engaging with senior staff upfont– Set up links to other pre-existing programmes

Thank you