möbius operational excellence seminar 23 04 2015
TRANSCRIPT
Introduction
70%
business consulting. profoundly different.Source: Blog Ivo Mechels, “Consujuisten en Michel van de Colruyt”
Michel showed me the fairtrade rice Jef Colruyt had handpicked in Benin”
26.000
26.000
= 50 participants * 1 idea per week * 10 years
1. RESPECT
Reverse the triangle
“Your people are the experts. The highest form of respect is to continuously challenge them and give them the autonomy to improve their job - Mr. Yoshino, ex-manager Toyota-
8 Business Consulting. Grondig Anders.
9 Business Consulting. Grondig Anders.
How to load a truck in a safe and compact
way?
The Circle of Chalk
business consulting. profoundly different.
“Toyota managers
should be sufficiently
engaged on the
factory floor that they
have to wash their
hands at least three
times a day”
- Taiichi Ohno-
Genchi Genbutsu2. Go see
Everytime you get promoted you get further away from reality. By the time you are CEO, you are the most ignorant person in your organisation”- Sensei Imai Maasaki, founding father of Kaizen -
4%
17%
42%
100%
100%
1%
Mountain ofignorance
Reversed mountainof power
Pro
ble
ms
we k
now
of D
istributio
n o
f pow
er
The FigureTrap
business consulting. profoundly different.
Good morning, I’ll be taking over your
shift today ”
15 business consulting. profoundly different.
Does your company have a “clean desk” policy?
And is your desk clean at this very
moment?
3. Walk the talk
People are looking for integrity in their leaders”
- R. Hogan & R. B.Kaiser, “What we know about leadership”-
Mission & identity
Values & belief
Competencies
Behaviour
Individual
Result
Organisation
Mission & identity
Values & belief
Competencies
Behaviour
Result
“Even our CEO doesn’t have his own
desk” - Möbius-
19
“Good and clear leadership is being on
site with the employees to lead, accompany and
support” - Volvo Cars Ghent-
20
The Eternit KoB management and
Continuous Improvement team
assembling together at the start of their
trajectory
21
GO SEE
WALK THE TALK
RESPECT
BELIEF
LONG-TERM FOCUS
PATIENCE
22
Case Study
BASF Antwerpen NVOperational Excellence
Luc de VosOperational Excellence – Continuous Improvement
AGENDA
• BASF Antwerpen NV – Strategic vision• Operational Excellence• Continuous Improvement
AGENDA
• BASF Antwerpen NV – Strategic vision• Operational Excellence• Continuous Improvement
BASF ANTWERPEN N.V.A healthy company
approx. 7Billion Euro
600Hectares
3.000Employees
BASF ANTWERPEN N.V.Investing for the future
2009 2010 2011 2012 2013 20140.0
100.0
200.0
Mio
€
BASFProduct Portfolio
CHEMICALSPERFORMANCEPRODUCTS
FUNCTIONAL MATERIALS & SOLUTIONS
AGRICULTURALSOLUTIONS OIL & GAS
Dispersions & pigments
Catalysts
Oil & gas
Antwerp BelgiumNutrition & health
Paper chemicals
Petro-chemicals Care chemicals Performance materials
Construction chemicals
Crop protection
Monomers
Intermediates
Performance chemicals
Coatings
Petro-chemicals Care chemicals Performance materials
Construction chemicals
Crop protection
Monomers
Intermediates
Performance chemicals
Coatings
Petro-chemicals Care chemicals Performance materials
Monomers
Intermediates
Performance chemicals
376production sites
112,000employees
No. 1 in chemistry
74billion euro
BASF AROUND THE WORLD
Regional centresSelected production sitesMost important research sitesVerbund sites
Freeport Geismar
Antwerp
Nanjing
Kuantan
Ludwigshafen
VERBUNDPRODUCT INTEGRATION
Energy integration
Know-how network
Logistical integration
Integrationof
environmental protection
Shared infrastructure
Product integration
VERBUNDVerbund Integration
VERBUNDPRODUCT INTEGRATION}
Less transport
Intelligent use of by-products
Less environmental impact
Sharing knowledge
EXAMPLE
From naphtha to nappies
12345
VERBUNDPRODUCT INTEGRATIONVERBUND
Verbund Integration
BASF
In a changing world
BASFin a changing world
A CHALLENGE...BASF RISES TO IT!
67%urban residents
1.2billion cars
2020 2025 2030 2050
+ 50%energy
9billion people
BASFin a changing world
WE CREATECHEMISTRYFOR ASUSTAINABLEFUTURE
FOR ASUSTAINABLEFUTURE
BASFBASF Group worldwide
We create chemistry for a sustainable future
We add value as
one company
We innovate to make our
customers more successful
We drive sustainable
solutions
We form the
best team
Creative
Open
Responsible
Entrepreneurial
BASFWhat – our strategic principles
Sustainability and Safety
Verbund Management Operational excellence
Learning and Growthwe create
chemistry for a sustainable
future
We add value as ONE company
We innovate to make our customers more succesful
We drive sustainable solutions
We form the best team
AGENDA
• BASF Antwerpen NV – Strategic vision• Operational Excellence• Continuous Improvement
OPEXOperational Excellence
Lean Culture
Proj
ect P
ortfo
lio M
anag
emen
t Opex
Energy M
anagement/E
fficiency
Asset E
ffective
ness
Total Te
chnica
l Cost
…
Lean culture as basis to achieve Opex in a sustainable way
OPEXOperational Excellence
Opex in Operations: Opal 21 – Implementation of a continuous improvement process
Opex in Technical Services: Service Excellence
Opex in other Services: HR full force, Ocean 2015,…
Continuous development
Project „Opal 21“
A fundamental mindstep change by implementing the BASF PS
Prod
uctiv
ity p
erfo
rman
ce
site
/pro
duct
ion
Time
BASF Management is convinced that
• “continuous improvement” is a core task within the company,
and complementary to our production process
• “continuous improvement” will be a core task for
EVERYONE within the company
OPERATIONAL EXCELLENCEBASF Production System: 6 core elements
Full potential of BASF production system can only be realized through interaction of all key elements
Qualification Automation
Processoptimization
BetrieblicheQualifi-zierung
MotivatedEmployees
Roles andresponsibilities
Optimization ofplant structures
Lean management
Safe production
OPERATIONAL EXCELLENCEContinuous Improvement
Consolidation of the organization & definition of
improvement measures2
Disturbance of ‘daily operations' by implementing the BASF Productiesysteem
("Change")
1
3
Operational Excellence by Continuous Improvement
Classical way of optimization
α > 0
Operations without optimization
Classical way of optimization
Framework
D
C
Q
S
P
Create breakthrough results
Create problem-solving capability andculture of continuous improvement
AGENDA
• BASF Antwerpen NV – Strategic vision• Operational Excellence• Continuous Improvement
LEAN MANAGEMENTContinuous Improvement
LEAN MANAGEMENTContinuous Improvement - Our Mission Statement
“Day-to-day performance improvement as foundation of our
organization´s culture”
LEAN MANAGEMENTWhat did we achieve so far?
From OPAL21
Connected to Operational Targets (OD)
Request from within the
organisation
Measure capabilities and performance on both Management and Shopfloor level
LEAN MANAGEMENT Lean Performance Dialogue
No audit … new “as-is” is basis to define specific targets and LEAN efforts (improvement kata)
LEAN is only......5S
LEAN is only... ...a toolset
LEAN is only......for production
LEAN is only... ...bottom-up
LEAN... can be done in 6 months
LEAN requires a cultural transformation!
What some people believe... ...deserves better answers:
LEAN is to design processes without waste!
LEAN is to foster mindset and capabilities!
LEAN is for collaboration of all disciplines!
LEAN is to realize profitable growth targets!
LEAN is......for cutting
fixed cost
LEAN is only......for shift people
LEAN is for value-adding use of resources!
LEAN is a leadership responsibility!
LEAN MANAGEMENT7 common myths…
50
But we need to break the wall…
51
1. Leadership demonstrates belief in CI
4. From ad-hoc to development program
2. Reinforce CI roles across the organization
3. Share LEAN practices
52
A new focus based on BELIEF
What do you think you as leadership team can do to truly
understand and live LEAN, pulling the organization?
53
A new focus based on BELIEF
54
Top Management State and communicate
clear program goals Commit to provide
resources sustainably Communicate the story for
the “case for change” Role model in LEAN
leadership
Plant/functional Mgt Commit and actively live to
own new role Provide resources and
assign the most skillful team
Promote and communicate change stories
Acknowledge improvement and reward employees
Celebrate success with employees!
Supervisors Area Mgt Coach the continuous
improvement routine Foster problem solving as
daily core activity Build a culture with trust to
learn from failure Cooperate with other
areas - act as a team
A new focus based on BELIEF
A new focus based on BELIEF
150 years
Key Note
Möbius
23/04/2015
Leadership in innovative organizations
Herman Van de VeldeDirector
Design, production and distribution of
luxury lingerie
From craftsmanship to industrial production
1919: Foundation Van de Velde
Achiel and Margaretha Van de Velde• Pioneers• 1st product: ladies corsets with an eye for quality• distribution through retailers
From craftsmanship to industrial production
1919: Foundation Van de Velde
Achiel and Margaretha Van de Velde•pioneers•distribution through retailers
2nd generation: •use of elastic materials•from the 40’s onwards retail in Belgium and the Netherlands •Extension of assortment
– Fashion
– Marketing-driven
– Delocalization of production
– Cultural change
– Governance change
Change VdV business model
Change business model: Fashion
Design department • Team of 50 people (stylists, textile engineers, pattern
makers, etc.)
• 500 new styles per year
• 20.000 SKU’s
• Combination of fashion and fit
Change business model: Marketing-driven
Focus-strategy • Product: lingerie
• Luxury Segment (= price segment)
FOCUS: choice of market segmentSegmentation of the lingerie market
80 % 70 %
< EURO 20STANDARDHunkemöller, Etam
< EURO 20 – 60MIDDLE
< EURO 60 - 100 LUXURYMJ, PrimaDonna, MJ l’Aventure
> Euro 100
Sarda20 %30 %
Northern Europe
Southern Europe
Change business model: Marketing-driven
Focus-strategy • Product: luxury lingerie
• Price Segment
• Distribution channel
FOCUS: choice of distribution channel
Distribution channel % total market Positioning Van de VeldeSpecialized retailers 28 to 50 % XLuxury department stores and chains 7 to 21 %
Department stores X Chains -
Supermarkets and food 50 to 24 % -Mail order 15 to 5 % -
Specialist stores lose market share, but remain THE Van de Velde partner in distribution
Specialist stores lose market share in most European markets
• Germany : 21%, decreasing• France : 13%, decreasing• The Netherlands : 35%, decreasing• Belgium : 40%, stable
Fit: Find the correct
size
Style: Choose the right cut and shape
Fashion: what is the right colour for this
woman and this particular situation?
“STYLING”
“Shaping the bodies and minds of women”www.lingeriestyling.com
3 components of Lingerie Styling
Retail investments
- USA: Intimacy - 18 stores- Turnover 2012: 33,7 mio USD
- The Netherlands: Linchérie- 19 franchises- Turnover 4,8 mio EUR
Retail investments
- Rigby & Peller- England:
- 7 stores in and around London− ‘Bra Fitting’ (Lingerie Styling). − Turnover 2012: 9,2 m£
− Germany: 9 stores− Spain: 3 stores− Denmark : 1 store
- Hong Kong / China : Private Shop− 22 stores in Hong Kong and China− Turnover 2012: 6,7 m$− Joint venture between Getz and Van de Velde
Change business model: Marketing-driven
Focus-strategy • Product: luxury lingerie
• Price Segment
• Distribution channel
• Geographic focus
• Brands instead of private label
1981: Marie Jo 1990: PrimaDonna 1997: Marie Jo L’Aventure
2009: Andres Sarda 2010: PrimaDonna Twist 2014: PrimaDonna Swim
74
Brand policy instead of private label
Change business model: Delocalization
Two tendencies
• Centralization of core activities
• Delocalization of production
Change business model: Delocalization
Centralization of core activities• Strategy and policy• Design• Purchases (European fabrics)• Quality control raw materials• Cutting of the fabric• Core production Belgium• Quality control and expedition
Delocalization of production
49,5%
46,2%
4,3%
China Tunesia Eastern Europe
Change business model: Delocalization
Change business model: Delocalization
Delocalization of production
– Quality is identical all over the world“Made in Belgium” has been replaced by “Made by Marie Jo”
Conditions:• Detailed preparation of the process• Strong local management• Strict compliance rules by headquarters
– SA 8000 (social label)
SA8000Social Accountability 8000
Requirements:1. No child labour2. No forced labour3. Health and Safety4. Freedom of Association & Right to Collective
Bargaining5. No discrimination6. No disciplinary practices7. Working Hours8. Remuneration9. Management Systems
9,4
42,1
78,3
111,9
166,3
179,8 181,8 182,4198,4
0
20
40
60
80
100
120
140
160
180
200
1985 1995 2000 2005 2010 2011 2012 2013 2014
Omzet in miljoen €
Van de Velde has always known a constant turnover growth
People
1997 2000 2005 2010 2011 2012 2013 2014
Belgium 424 417 416 474 490 496 511 526
Hungary 259 322 422 - - - - -
Tunisia 125 183 420 672 614 631 512 429
Spain - - - 65 60 56 27 27
Others (abroad)
27 29 36 56 58 65 60 65
Retail - - 34 227 323 316 345 325
TOTAL 835 951 1328 1494 1544 1564 1455 1372
Van de Velde: changing organisation
Before: Taylorist organisation
• Centralism, control, hierarchy• Little room left for HR• Piece work• Specialization• Repetitive work• Transactional leadership
Van de Velde: changing environment
1. Globalisation
2. Fashion driven
3. Difficulties to attract people
Evolution towards innovation driven organisation
• Lowering the brainline• Teamwork• Polyvalency• Expanding job content• Stimulating initiative• Different reward and compensation systems
Evolution towards innovation driven organisation
• Lowering the brainline• Teamwork• Polyvalency• Expanding job content• Stimulating initiative• Different reward and compensation systems• Coaching leadership / transforming Leadership
Main responsibilities for leadership
1. Define strategy
2. Inspire
3. Continuity
86
Qualities of good leadership
• Trust• Integrity• Empathy• Ambition• Optimism• Authenticity
87
Evolution towards innovation driven organisation
• Lowering the brainline• Teamwork• Polyvalency• Expanding job content• Stimulating initiative• Different reward and compensation systems• Coaching leadership / transforming Leadership• Stimulate enthusiasm and passion
Stimulate enthusiasm and passion
• More than job satisfaction
• They do more and go beyond what is called for (customers, colleagues, organization)
• Welcome rather than resist change
• Willing to go the extra mile
Ratio between ‘bevlogen (enthusiastic)’ versus ‘gedistantieerd (dissociated)’ in average and top companies
Wereldtop Gemiddeld
820
29
50
63
30
Bevlogen
Neutraal
Gedistantieerd
Stimulate enthusiasm and passion
How to stimulate enthusiasm?
• Decisional authority
• Communication/transparancy• Strategic information• Comfort information• Motivation information• Community information
• Fair treatment
• Systematic and honest feedback
• Authenticity
Stimulate enthusiasm and passion
The best workplace on earth according to employees
1. Let people be themselvescapacity to absorb different skill sets and personalities
2. Unleash the flow of informationradical honesty
Example: - sessions
Stimulate enthusiasm and passion
The best workplace on earth according to employees
1. Let people be themselves
2. Unleash the flow of information
3. Magnify people’s strenghts
4. Stand for more than shareholder value
A company is a living entity with different needs
• Fysical level: profit, liquidity, solvability
• Emotional level: loyalty, pride, respect, appreciation
• Mental level: drive (“goesting”)
• Spiritual level: internal and external connectivity
Stimulate enthusiasm and passion
The best workplace on earth according to employees
1. Let people be themselves2. Unleash the flow of information3. Magnify people’s strenghts4. Stand for more than shareholder value
5. Show how the daily work makes sense
6. Have rules people can believe in
7. Inspiring goals
“If you want to build a ship, don’t drum up people to collect wood and don’t assign them tasks and work, but rather teach them to long for the endless immensity of the sea.”
‘Le Petit Prince’
Antoine de Saint-Exupéry