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A Nossa Empresa Os nossos Parceiros Our Products Logoplaste throughout the World Logoplaste in numbers GERAL [email protected] logoplaste.com www.logoplaste.com Transforming an organization's management model from “command and control” to “Beyond Budgeting”: The Logoplaste case This white paper is based upon a public case presentation held on 21.02.2008 at the InterNews seminar “Beyond Budgeting” in São Paulo.

BetaCodexC2 - Case Study "Logoplaste" on Transformation

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Beyond Budgeting Change Case "Logoplaste" in Brasil

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Page 1: BetaCodexC2 - Case Study "Logoplaste" on Transformation

A Nossa EmpresaOs nossos Parceiros

Our Products Logoplaste throughout the World

Logoplaste in numbers

GERAL

[email protected]

logoplaste.comwww.logoplaste.com

Transforming an organization's management model from “command and control” to “Beyond Budgeting”: The Logoplaste case

This white paper is based upon a public case presentation held on 21.02.2008at the InterNews seminar “Beyond Budgeting” in São Paulo.

Page 2: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Founded in 1976.

49 plants in Austria, Brazil, Canada, Czech Republic, France, Holland,

Portugal, Spain, England, USA and Asia.

3rd largest container transformer in Europe.

2nd largest container transformer in Brazil employing 450 people.

1st in integrated operations in Brazil and Europe.

Approx. 150,000 tons of raw material processed in 2007.

5.5 billions in plastic packaging sold in 2007 throughout the world.

The company: Logoplaste Group

Page 3: BetaCodexC2 - Case Study "Logoplaste" on Transformation

2007: 8 plants

Our organization in South America

Page 4: BetaCodexC2 - Case Study "Logoplaste" on Transformation

A selection of Logoplaste plastic packaging products in Brazil

Page 5: BetaCodexC2 - Case Study "Logoplaste" on Transformation

“There is a need to grow, so that we do not disappear (...) The sheer size of this sector is a driving competitive factor.”(Alexandre Relvas, FIEP Conference, February 2002)

Our goal:• “.. 15% annual growth rate in each country”• “A new contract every year, in each country”(Annual Report 2006)

Logoplaste in the FutureTransforming the model to achieve the board's goals:“Competitiveness – Growth – One Logoplaste”

The board's vision for the company's future

Page 6: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Why should we change?

Conclusion: Given the historic results recorded by Logoplaste over the last five years, it is not possible to meet the goals set by the Board (15% per year), if we do not make significant changes.

• Our profitability has decreased over time (greater customer demands are not reflected in the price).

• We are overly reactive to customer demands

• We have lost market space and have not developed the market. • Is our price too high? • Is our structure too expensive? • Are we efficient?• How long can we stand this?

• We lack agility in responding to the market, resulting in missed opportunities.• “Paternalism” from Headquarters in Europe has created a comfort zone,

excessive job stability and bureaucracy in the decision making process.

• We are not regarded as a leading company within our sector in Brazil, today.

Page 7: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Oct/07: How the story began...

Seminar “Leading people and teams –new concepts for the 21st century”Participation: ManagersSpeaker: Niels Pflaeging – Director of the Beyond Budgeting Round Table

10/17/2006

Page 8: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Information Age

1980 1990 2000 2010 2020 2030

Highly competitive, unpredictable

Abrupt/unpredictable change

Demanding employees

Short life cycles

Price pressure

Disloyal customers

Transparency

Spe

ed o

f Cha

nge

Our urgency: The world has changed!

• Recently installed capacity at one of our units is already smaller than what the client needs

• Continuous production re-scheduling• Constant changes in new project assumptions

• Product life spans: from eight years to three years (with impact on investment)

• Demand from customers for greater innovation on the part of Logoplaste

• Strike at one of our units (Nov/07)• Demand for “positions&salaries“ policy

and more recognition

• More complicated contract renewals• More competitive electronic bids • R$ 1.5 MM in Technology and Change

Investments in 1 year

• One project was passed on to our competitors by partner-customer

• Lost 18MM PET containers from our customer• Electronic bids

• ERP Restructuring project• Internal and external audits

Page 9: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Information Age

1980 1990 2000 2010 2020 2030

Critical Success FactorsHighly competitive, unpredictable

Fast response

Best place to work

Innovation

Operational excellence

Customer relationship

Ethical behavior

Abrupt/unpredictable change

Demanding employees

Short life cycles

Price pressure

Disloyal customers

Transparency

Spe

ed o

f Cha

nge

Today's Critical Success Factors (CSF) require “freedom”

All are important today!

Page 10: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Extension of the decentralized model throughout operations

Alternative path:Transformation, based on radical decentralization, leadership and process change.

Foundation Several decades oldTime Scale –increasing age of the organization

Low degree of decentralization/ empowerment. Out of sync with today's critical success factors!

DifferentiationPhase

IntegrationPhase

But we have gone down a different path: “Classic” and “alternative” paths for an organization's evolution

Classic path: Bureaucratization and functional differentiation, owed to growth and application of “tayloristic“ principles

Pioneering Phase

High degree of decentralization/ empowerment. Aligned with today's critical success factors!

Classic path: Stagnation within the tayloristic model

Alternative path: Maintenance of an empowerment and confidence culture

This is our path now!

Page 11: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Importance of management model: Most organizations use the “management model” that has been designed for efficiency....while the problem today is complexity*.

* Multiple critical factors for competitive success that include efficiency

Creating adaptive organizations:“The secret of success is not being able to predict the future and create an organization that prospers in the unforeseen future.”

Michael Hammer

Critical Success Factors (CSF)

Page 12: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Management control cycle

StrategyStrategy

Strategic Learning cycle

ControlControl

Traditional management processes from the command and control model are “straightjackets.”

“Fixed”performance

contract

“Fixed”performance

contract They conflict with our

Critical Success Factors!

Page 13: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Our entire management model actually restricts performance

Examples of non-alignment

• Delays caused by excessive planning processes

• Innovation is asphyxiated by central bureaucracy

• Budget mentality: ‘spend it or lose it’

• Incentives created short-termism

• Motivation is extrinsic rather than intrinsic

• Individualism causes dysfunctional and even unethical behavior

Success factors

• Fast response

• Innovation

• Operations excellence

• Close customer relations

• The best people

• Ethical behavior

• Financial performance • Inferior financial performance

When pressure increases, the problems get worse!

Page 14: BetaCodexC2 - Case Study "Logoplaste" on Transformation

The Beyond Budgeting model: Rooted in science and in practice.

Sciences: Thought leaders(selected)

Practice: Industry leaders

(selected)

Complexity theories

Social sciences & HR

Leadership & Change

Strategy & performance management

Manufacturing

Distribution

Services

Government & Not-for profit

• Charles Horngren• Henry Mintzberg• Gary Hamel• Jeremy Hope• Michael Hammer• Thomas Johnson• …

• Stafford Beer• Margareth Wheatley• Niklas Luhmann• Kevin Kelly• Ross Ashby• Joseph Bragdon• …• Douglas McGregor

• Chris Argyris• Jeffrey Pfeffer• Stephen Covey• Viktor Frankl• Howard Gardner• Reinhard Sprenger• …

• Peter Drucker• Tom Peters• Charles Handy• John Kotter• Peter Senge• Thomas Davenport• Peter Block• …

Source: Niels Pflaeging/BBTN

Page 15: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Fonte: www.bbrt.org

• ABB • ABC Technologies • ACCO Europe • ACNeilsen • Accenture • Alcan Packaging• Alstom • American Express• Anheuser Busch • Archstone Consulting • Armstrong-Laing • Andersen • Ascom • Barclays Bank • BT Group • Burmah Castrol • BG Transco • Boots The Chemists • Cadbury Schweppes • Charles Schwab• CIBC• CIMA • CITB • Clariant International • Cognos • Coors Brewers • CorVu• CSIRO Livestock

• De Beers • DFW Airport• Diageo • Deutsche Bank • Deloitte & Touche ERS • DHL • EADS• eNiklas • Ernst & Young • EBRD • Exelon• Halifax • Hammond Suddards • HON Comp.• Housing Associations • HP Bulmer • Hyperion • IBM-BCServices• Ingersoll Rand• Interbrew UK • International Finance • Johnsonville Sausage• Kaiser Permanente• Kingfisher • KPMG Consulting• Mars Confectionery• Port of Tyne Authority • MasterCard

• Maxager• Mencap• Millipore Corp.• National Power • Navigant Consulting • Novartis • Omgeo LLC • openBC (agora: XING)• Park Nicollet Health

Services• Parker Hannifin • Pentland Group • proDacapo • Puget Sound Energy• Priority Health• Resorts World• Royal Mail • Rugby Group • Sainsbury's

Supermarkets• SAS Performance

Management • Schneider Electric • Schwan Food• Scottish Enterprise • Siemens • Sight Savers Intl. • SKF

• Softlab• Solver Inc.• Southco• Standard Life • Statoil• Stratature• T-Online• TelecomNewZealand• Texas Instruments • Thames Water • The World Bank • ThinkFast Consulting • Time Warner Telecom• TPG • UBS AG • United Engineering

Forgings • Unilever• US Analytics • Vaisala Oy• Valmet Corporation • Verisign• Wachovia Corp• Welsh Devel. Agency• West Bromwich

Building Society • Wright Williams&Kelly• ...

“Command and control“ and budgetary management: widely recognized as a problem: BBRT membership between 1998 and 2007

Page 16: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Learning more about Beyond Budgeting: pioneering organizations we met, visited, researched or interviewed

- Each one of these companies has developed its own, unique management model, according to its reality.

- However, all of these organizations share the same principles for decentralized and adaptive leadership (“Beyond Budgeting principles“), including clearly defined values, relative performance contracts and result-orientation, aligned with the reality of the “Information Age.”

Page 17: BetaCodexC2 - Case Study "Logoplaste" on Transformation

LOGOPLASTE 27

½B@2010: An ambitious Transformation Program aimed at building the foundations for Logoplaste 2010 centred around 5 themes…

Company-oriented

Align Minds!Align Minds!Align Minds!Think Differently/

Disruptively Innovate!

Think Differently/ Think Differently/ Disruptively Disruptively

Innovate!Innovate!

Nurture our Talent!

Nurture our Nurture our Talent!Talent!

Pursue Commercial

Aggressiveness!

Pursue Pursue Commercial Commercial

Aggressiveness!Aggressiveness!

Reshape the Way We Organize!

Reshape the Way Reshape the Way We Organize!We Organize!

Market-oriented

Critical success factors in today's world

Best for doing business2. Close customer relations

3. Fast response

4. Innovation

5. Operations excellenceBest place to work

1. Best people and teams

Best to invest in7. Creation of greater

sustainable value

Best for the community6. Effective governance

The common factor among pioneering companies: There is a conviction that stakeholders´ interests actually are united within a virtuous cycle, integrating today´s critical success factors within one mental model.

Page 18: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Feb/07: Management workshop and Beyond Budgeting diagnostic

February/2007 Workshop at Logoplaste Duration: 1 day.Participation: Directors and Managers.Workshop facilitators: Valeria Junqueira, César Souza, Niels Pflaeging.BBRT Diagnostic Survey conducted on-line.

Page 19: BetaCodexC2 - Case Study "Logoplaste" on Transformation

D x V x S > R

A formula for change: How transformational change can be achieved

• Dissatisfaction

• Vision

• Strategy & Steps (change strategy and the first steps)

• Resistance

Page 20: BetaCodexC2 - Case Study "Logoplaste" on Transformation

The BBRT online diagnostic: assessing your perception of the firm, in relation to the “Beyond Budgeting” model

Page 21: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Our diagnostic survey results: A first ‘case for change’(Step 1: “Create a sense of urgency”)

Dissatis-faction Vision Re-

sistanceStrategy & Stepsf( x ) > x

Page 22: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Culture = Habits, beliefs, values, modus operandi

Mapping the organizational culture –an analyses of necessary and desired changes made by the team

Acquire EliminateConsolidate

CommunicationInitiativeAccessibilityExtension

Closer relations withcustomers (internal andexternal)

Commitment

SpeedAgility

InnovationPro-activity

DepartmentalizationFeudalism

Communication failures

Reactivity

Lack of commitment withfinal overall result

Prima Donnas

Customer solution

Service Provider Concept

Commitment to the company

Individual competencies

Focus on businessprofitability

Page 23: BetaCodexC2 - Case Study "Logoplaste" on Transformation

How to change: Documenting the top management's commitment to change, early-on.

References

Page 24: BetaCodexC2 - Case Study "Logoplaste" on Transformation

3.Beginning

2.Neutral Zone

1.Ending

Individual change process according to

William Bridges“Double Helix Transformation Framework“Source: Niels Pflaeging/BBTN

Creating profound change, based upon a structured process that encompasses both organizational and individual change

3.

Develop a vision and strategy

4. Communicate the change

vision

5. Create

empower-ment and

broad based action

6. Generate

short term gains

7. Consolidate gains and produce

more change

8. Anchor new approaches

in culture

1.Establish a sense of urgency

2. Create a

coalition that will guide

the program

Organizational changeprocess according to

John Kotter/HBS

References

References

Page 25: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Workshop “Building a vision for change”• Participation: Directores and Managers • Duration: 2 days• Consultants: Niels Pflaeging and Roberto Ebina

Mar/07: Managerial workshop “Building a vision“

Page 26: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Managerial workshop “Building a vision“

Page 27: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Descriptive vision of what we think about as an organization:How we envision our company within 3-5 years

• “We want a decentralized company, run by an inspiring group of leaders, people who can form new leaders to face uncertain situations which the future will certainly bring.”

• “It will be one of the 10 best companies to work for and will make professionals feel attracted enough to want to work for it.”

• “It has a fantastic and transparent information system that enables quick responses and ready solutions anchored to the desire to continually improve.”

• “The people are happy. There is a culture of innovation and creativity, which serves as a market benchmark.”

• “Our management model is talked about throughout the market as a benchmark to be copied. We are asked to bring this experience to other units in other countries and to our surprise the parent company as well.”

• “People will enjoy working at Logoplaste.”

Page 28: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Questions raised by the participants

• “Who will be the teams closest to the customers at Logoplaste? This is an answer that must be found over the short term as well as the level of autonomy they should have.”

• “How do we connect the center and the outside, leading and not managing? This cannot be done by command and control.”

• “How can we create dialogue and transparency among 100% of the people at Logoplaste? Without transparency, there is no change. Several measures refer to transparency.”

• “How can we turn people who occupy space into the enterprising people they deserve?”

• “How do we put an end to our own arrogance?“

Page 29: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Apr/07: Beyond Budgeting conference in São Paulo and visit from Robin Fraser (BBRT) at Logoplaste

e

• Conference: Presentations by BBRT directors related to the Beyond Budgeting concept, and case companies that have achieved success because “they apply a totally different model” (Toyota, Google, Egon Zehnder and Handelsbanken).

• BBRT meeting (www.bbrt.org) with discussions on transformation hosted at Logoplaste´s head office in Brazil.

Page 30: BetaCodexC2 - Case Study "Logoplaste" on Transformation

At Logoplaste Brazil, Beyond Budgeting gets a new brand:“Decentralize – Lead - Grow”, or DLC

Page 31: BetaCodexC2 - Case Study "Logoplaste" on Transformation

“Make sure that a strong group can be relied upon to direct the first changes and who have leadership skills, availability to act, credibility, communication skills, authority and analytical competency.” John Kotter

Forming a Guiding Coalition that will lead the change initiative(Step 2: “Forming the guiding coalition”)

Members of the Guiding Coalition:

June/2007:1. Andreia Gil2. Carlos Reis3. Eugénio Barroso4. José Pilão5. Júlio Fontana6. Oldecir Antunes7. Ricardo Fagionato8. Silvio Carvalho9. Valéria Junqueira

March/2008:1. Andreia Gil2. Carlos Reis3. Eugénio Barroso4. Hideko Teruya5. José Pilão6. Júlio Fontana7. Morivaldo Souza8. Oldecir Antunes9. Paulo Finardi10. Reginaldo Souza11. Ricardo Fagionato12. Silvio Carvalho13. Valéria Junqueira

Page 32: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Jun/07: Putting a guiding coalition together

The Guiding Coalition's mission:• Write a first draft of the “Change Manifesto” (“Version 1.00”).• Lead the transformation process, in order to assure success. • Involve and influence people to assure implementation of actions. • Initiate and support DLC Task Forces. • Create internal communication platforms to explain and represent DLC,

and to align ideas.• Continuously measure “process temperature” and stand up to resistance.

Page 33: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Aug-Nov/07: Leadership development activities

• Aug/07: Team Building Workshop Participants: Directors and Managers

• Module I – Leadership self-awareness(Create self-awareness for devolved leadership)

• Aug/2007: Managers and directors• Sep/2007: Supervisors and plant forepersons

• Module II – Leadership returned and formation of high Performance teams(Understand and practice devolved leadership and envision the decentralized model)

• Oct/2007 – Managers and directors• Nov/2007 – Supervisors and forepersons

Page 34: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Julho/2007 Workshop Team Building

Aug/07: Team-building workshop with full management team

* Kotter

Participants: Directors and Managers Objectives:• Create understanding of the group for the

need to work as a team • Identify the first steps of change

Page 35: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Jun/07 to Feb/08: Writing up the “Change Manifesto”(Step 3: “Define the change vision and strategy“)

The document's structure and contents:

1. Urgency for change at Logoplaste do Brasil(or: “Why we need to change now!”)

2. Our vision for change (or: “What do we want to be”)

3. Business model and values that are consistent with our company (reason for being, limits etc.)(or: “What will guide us as a firm and as people”)

4. Our strategy for change(or: “What will we do”/“How will we get there”)

5. What will we do so that we will not fall back into the old model and so that the model continues to remain on the minds of people? (or: “How can we guarantee that this will work?”)

6. Final comments: What do we get out of this?

Page 36: BetaCodexC2 - Case Study "Logoplaste" on Transformation

The change manifesto

Page 37: BetaCodexC2 - Case Study "Logoplaste" on Transformation

The change manifesto: On hierarchy and human nature

“Why is it that every time I need a pair or arms, there is a brain that comes with it?”

(Henry Ford)

“Motivation and the potential to develop, a capacity to assume

responsibility, all that is present in all people. It´s not the executives

who induce these qualities.”(Douglas McGregor,

Harvard Business School, 1960).

Theory X Theory Y

Page 38: BetaCodexC2 - Case Study "Logoplaste" on Transformation

The change manifesto: Explaining the principles of a model beyond “command and control”

Pro

cess

es

Goals andrewards

Planning and controls

Resources andcoordination

Lead

ersh

ip

Customers and responsibility

Performance and freedom

Governance and transparency

Goals related to continual improvement

Rewards related to company results

Continuous and inclusive planning

Compare performance against actuals

Resources on demand

Coordinate dynamic interactions

Customer focus

Responsible teams

Performance culture

Autonomy and responsibility

Clearly defined objectives and values

Open and shared information

Do this!

Fiscal year fixed goals

Reward local fixed goals

Top down annual planning

Variations against fixed plans

Annual budget allocations

Departmentalization

Focus on the boss

Centralization

Inspired by the past

Adherence to fixed plans

Impose objectives

Restrict information

Not that!Principles

Source: BBRT

6 devolvedleadership principles

6 adaptive management process principles

Page 39: BetaCodexC2 - Case Study "Logoplaste" on Transformation

3) Grow: company growth depends on the individual

2) Lead: Influence people to work as a team and at their maximum capacity

1) Decentralize: create a chain of collaboration and empower people

4) Be transparent: ethics in relationships, information and experience

5) Respect: Do not discriminate. Do not be biased. Paternalistic attitudes are against our principles.

6) Dialogue: Talk as equals to equals. Work as a team, share.

7) Consult: Apprenticeship attitude, you cannot know it all, all of the time.

8) Dare: Everything can be improved, risk, challenge surpass limits

9) Work with zeal: Happiness is contagious; celebrate conquests.

10) Act as an entrepreneur:feel as if you owned the business, foresee problems and opportunities.

The change manifesto: 10 guiding principles (or key values), in line with principle # 5 of the model

“To serve as a guide for all actions by all people at Logoplaste, in any situation.”

Page 40: BetaCodexC2 - Case Study "Logoplaste" on Transformation

New model (supports complexity)(“DLC”/“Beyond Budgeting“)

Traditional model (supports efficiency)(“Taylorism”)

Decentralizednetwork,

“Sense andrespond“

Centralizedhierarchy,

“command andcontrol“

Dynamic Coordination

Relative Performance

Contracts

Relative Performance

Contracts Dynamic Processes

Fixedprocesses

StrategyStrategy

ControlControl

Fixed performance

contracts

Fixed performance

contracts

Six criticalsuccess factors

• Fast response

• Innovation

• Operations excellence

• Close customer relations

• The best people

• Ethical behavior

The change manifesto: The firm as a “collaborative network” (with decentralized decision-making power and “devolved” leadership)

Page 41: BetaCodexC2 - Case Study "Logoplaste" on Transformation

The Tandem Bicycle concept enables involvement of all persons in the change process, encouraging dialogue among the 450 people at Logoplaste in Brazil.

Sep/07: Spreading DLC with “tandem bicycles”(Step 4: “Communicate to achieve understanding and acceptance“)

* Kotter

Page 42: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Our change scorecard

Page 43: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Nov/07: “Breaking the pyramid” at one of our eight plants

DLC - DESCENTRALIZAR, LIDERAR E CRESCER

Nosso modelo de gestão é estruturado em célulasauto-gerenciáveis e descentralizadas que regem

através dos seguintes princípios:

1º. Somos responsáveis pela Qualidade

2º. Somos intolerantes com o desperdício

3º. Somos responsáveis por cumprir o programa - assegurar a produção

4º. Somos responsáveis pelo que prometemos

5º. Seremos ágeis, simples e eficientes em todos os processos e combateremos toda forma de burocracia

6º. Trabalharemos como um verdadeiro time, mantendo espírito de equipe, gerando dinâmica e sinergia - “somos solidários”

7º. Nos comprometemos a compartilhar experiência e desenvolver pessoas

8º. Somos parte do problema e da solução

9º. Nós praticaremos a melhoria continua e estimulamos o ambiente de participação e criatividade - “nenhuma idéia pode ser censurada”

10º. Somos transparentes em todas as nossas comunicações

11º. Informações disponíveis com transparência

12º. Somos francos e éticos em todas as nossas atitudes

DLC - DESCENTRALIZAR, LIDERAR E CRESCER

Nosso modelo de gestão é estruturado em célulasauto-gerenciáveis e descentralizadas que regem

através dos seguintes princípios:

1º. Somos responsáveis pela Qualidade

2º. Somos intolerantes com o desperdício

3º. Somos responsáveis por cumprir o programa - assegurar a produção

4º. Somos responsáveis pelo que prometemos

5º. Seremos ágeis, simples e eficientes em todos os processos e combateremos toda forma de burocracia

6º. Trabalharemos como um verdadeiro time, mantendo espírito de equipe, gerando dinâmica e sinergia - “somos solidários”

7º. Nos comprometemos a compartilhar experiência e desenvolver pessoas

8º. Somos parte do problema e da solução

9º. Nós praticaremos a melhoria continua e estimulamos o ambiente de participação e criatividade - “nenhuma idéia pode ser censurada”

10º. Somos transparentes em todas as nossas comunicações

11º. Informações disponíveis com transparência

12º. Somos francos e éticos em todas as nossas atitudes

• Urgency for action in the unit is identified by DLC guiding coalition

• 22/23 November – initial event held at unit with 19 people from different areas of the local team

• Transparency in relation to changes to be made (by commercial director)

• “Museum” exercise and Knowledge Turntables create urgency and vision for new model

• 28 November – local guiding coalition meeting• group being formed by plant manager• outline of the new model is developed

• Detailed preparation of future cell structure, including job analyses and functions during work sessions (local guiding coalition)

• Weekly work meetings/follow-up by local guiding coalition (“on Tuesdays“), supported by coalition support group

• Action groups against waste are being formed

Page 44: BetaCodexC2 - Case Study "Logoplaste" on Transformation

“Breaking the organizational pyramid “ at a production plant: Designing a new, networked model for a 130-people unit

• Unit (local) guiding coalition team develops new structure, helped by the central guiding coalition;

• Members of other plants take part in the process;• At local coalition meetings, real examples from the plant

are discussed in detail.

Page 45: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Designing the model in a production unit at a client site and making it work, by involving a local guiding coalition

Page 46: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Designing a networked organization structure for a 130-people unit – an example

Cell 1Former serigr.and Production

line No.1

Cell 1Former serigr.and Production

line No.1

Cell 2Former

productionline No.2

Cell 3Former

production lines Nos.3/4

Cell 4Former

productionline No.5

Cell 5Former

production line No.6

Support cell II

Support cell I

(rest of former departments)

Supportcell III

“Team”(all cells within a unit)CustomerCustomer

ShareholdersShareholders

MarketMarketCompetitionCompetition

BanksBanks

What characterizes a “cell”, within the model?• It contains several functions,

roles and duties, which would be traditionally separated into different departments. A cell integrates functions and roles

• It offers and sells products and/or services on its own, and is independent in its decisions about them.

• It is customer focused, in that it responds to internal or external clients, not to hierarchy.

• It is held accountable by the company leadership and is responsible for it’s own value creation.

• It applies the 12 Beyond Budgeting principles.

Page 47: BetaCodexC2 - Case Study "Logoplaste" on Transformation

Jan/08: Foundation of further DLC Task Force begins (Step 5: “Empower all others to act”)• Task Force “Cell networks within the plant units”

(“Break the pyramid” – create networks of highly autonomous teams responsible for results)• Task Force “Compensation systems” (reward success based on relative performance)• Task Force “Financial and non-financial reports” (promote open and shared information)• Other Task Forces (TFs) and Work Groups (WGs) to be created:

“TF Cell Network in the main office“, “WG Waste reduction” at units and head office

Page 48: BetaCodexC2 - Case Study "Logoplaste" on Transformation

3.

Develop a vision and strategy

4.

Communi-cate the change vision

5. Create

empower-ment and

broad-based action

6. Generate

short-term gains

7. Consolidate gains and produce

more change

8. Anchor new approaches

in culture

1.Establish a sense of urgency

2. Create a

coalition that will guide the

program

Organizational changeprocess according to

John Kotter/HBS

Apr/08: Ready to put steps 4, 5 and 6 of the organizational change process into action

• Prepare improvement plans at cells;• Attack waste;• Create rational system of variable

compensation;• Eliminate some departments.

• Create mechanisms to test new ideas and solutions;

• Practice waste elimination culture;• Leadership becomes challenging and

is monitored.

• Publish the manifesto;• Run more “tandem bicycles“• Create on-line discussion forum.

• Map and remove areas of resistance; • Create a network of cells and local coalitions for change.• Install DLC Task Forces and work groups.• Make information accessible for decision making processes.• Transfer knowledge and technical competencies to the cells.

Page 49: BetaCodexC2 - Case Study "Logoplaste" on Transformation

If you want one year of prosperity, plant seeds.

If you want 10 years of prosperity, plant trees.

If you want 100 years of prosperity, plant people.

Chinese proverb

Reinventing Logoplaste´s DNA

Page 50: BetaCodexC2 - Case Study "Logoplaste" on Transformation

A Nossa EmpresaOs nossos Parceiros

Our Products Logoplaste throughout the World

Logoplaste in numbers

GERAL

[email protected]

logoplaste.comwww.logoplaste.com

Thank you!

Maria Valéria [email protected]