© The Delos Partnership 2007 page 1 Integrated Enterprise Leadership Issues and the Delos Model as a solution

© The Delos Partnership 2007 page 1

Integrated Enterprise Integrated Enterprise LeadershipLeadership

Issues and the Delos Model as a solution


Managing the constraintsManaging the constraints

Project Budgets

Customer Service –OTIF

DevelopmentCosts

Development Flexibility


Vertical Functional OrganisationVertical Functional Organisation

MDMD

SalesSales MarketingMarketing TechnicalTechnical OperationsOperations FinanceFinance HRHR

R& D

R& D

MKTG

MKTG

SALES

SALES

OPS

OPS

ACCTS

ACCTS

HR

HR

Directors

Managers

Supervisors/Team Leaders


The “dysfunctional company”The “dysfunctional company”

• Sales agreeing to new products regardless of the consequences on the supply chain

• Marketing developing products which are wonderful int theory but hopeless in practise

• Manufacturing ignoring the need to produce new products – they get in the way.

• Engineering developing products using parts which the purchasing department cannot easily source

• Finance complaining about project overruns• When anything goes wrong the finger points to someone

else.• Everybody believes that anybody would see that it is

somebody else’s responsibility, but nobody does what needs to be done


Everybody, Somebody, Anybody, And Everybody, Somebody, Anybody, And NobodyNobody

This is a little story about four people named Everybody, Somebody, Anybody, and Nobody.

There was an important job to be done and Everybody was sure that Somebody would do it.

Anybody could have done it, but Nobody did it.

Somebody got angry about that because it was Everybody's job. Everybody thought that Anybody could do it, but Nobody realized that Everybody wouldn't do it.

It ended up that Everybody blamed Somebody when Nobody did what Anybody could have done


The Delos ModelThe Delos ModelFor Business Integration For Business Integration

InnovationInnovation

VisionVision

StrategyStrategy

PrioritisationPrioritisation

DemandDemand

SupportSupport

SupplySupply


Objectives of Integrated Enterprise Objectives of Integrated Enterprise LeadershipLeadership

• Vision and Strategy supported by :• One set of numbers at all times

• Integrated Plans• Realistic Plans

• Visibility and transparency [3-5 years]• Teamwork• Decisions made in timely fashion• More planning, less fire-fighting• Consistent performance measures• Delivery of the strategy• Top Down and bottom up


Vision examplesVision examples

“ I believe we possess all the resources and talents necessary. But the facts of the matter are that we have never made the decisions or marshaled the resources required for such leadership. We have never specified long-range goals on an urgent time schedule, or managed our resources and our time so as to insure their fulfillment.

I believe that this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to earth”


Suppliers’ Suppliers’ BargainingBargaining

PowerPower

Threat

of

Threat

of

NewNew

supplie

r

supplie

r

ss

Customers’ Customers’ BargainingBargaining

powerpower

Industry Industry competitive competitive

situationsituation

The strategic forces of competitionThe strategic forces of competitionProduct

Product andandService

Servicesubstitutio

substitutionn

Freedom

FreedomOfOf

Employee

Employee

movem

ent

movem

entGove

rnm

e

Govern

me

ntnt

Legis

latio

n

Legis

latio

n


Strategic ChoicesStrategic Choices Operational Excellence – Cost Operational Excellence – Cost

LeadershipLeadership

Customer Intimacy – Customer Customer Intimacy – Customer LeadershipLeadership

Product Leadership – Technology Product Leadership – Technology LeadershipLeadership

Difference in FocusDifference in Focus

Sales Marketing Finance Manufacturing Design

CustomerIntimacy

Frequent contact. CRM a key tool. Quick response.Customer is king.

Intense understanding of customer needs. Tailored approach.

Focus on total long-term value of customer, an not profit per unit.

Flexible strategy. Mass customisation.

Custom configuration; focus on customer.

Operational Excellence

Focus on key customers; product focus and not customer focus

Standard product for all customers. limited range. Simple brand

Utilisation key, and manage carefully to minimum cost

Limited product range; efficiency is the watchword.

Limited range of core products. Design not a key element of the proposition

Product Leadership

Persuades to take new products, rather than old.

Focus on the new products, and constant brand development around technology

Project costing and management key, with focus on Product Lifecycle management.

Capable of managing disruption of new products, first of kind etc.

Key element of the strategy, and constant need to develop new ideas.



Workshop – where are you now and Workshop – where are you now and where are you going ?where are you going ?

NOW Five years time

CustomerIntimacy

% %

Operational Excellence % %

Product Leadership % %


Leverage our Product P

and Product L assets

Protect and expand our

Product Family F

franchise

Grow our Product Family B business

Develop / acquire

innovative products and technologies

Achieve a profitable leadership position in

key countries

Derive 70% of company sales from top 10 markets by 2006

Maintain our leading position in S. America & France, Canada, UK, and Italy

Optimize public policy, regulatory, and communications to drive growth

Finalize Corea market strategy by 2003

Articulate a new Branding strategy

Meet timelines on bulk mfg. facility and packaging outsourcing for Bd

Acquire market knowledge in key countries

Develop/acquire Product Bk

Ensure launch of Bd Child by 2008

Develop ATO strategy

Develop Product P end-game strategy that maximizes Industrial utilisation

Accelerate the conversion from extP to intP

Consolidate and optimize ATO strategy to support Product P end-game and extP conversion

Slow competitor XX uptake in US

Develop comprehensive product delivery strategy

Institutionalize the Technology Visioning process

Ensure appropriate upstream / downstream balance

Ensure full alignment of Sales, Development, Legal Affairs and Marketing activities

Implement Goodwill optimization organization

Maximize existing assets for Product Fa and Fc

Ensure leadership in Family F delivery systems

Ensure optimal

capacity, quality and customer

satisfaction

Develop/ Upgrade Quality systems to ensure 50% yearly reduction in rejects and rebuild

Maximize utilization of existing capacity

Achieve Delos Platinum level at all sites

Implement Delos Global Integrated Enterprise Leadership

Explore continuous improvement approaches

Defend, and then expand, our leadership position through sustainable profitable growth.

Launch Product N

and Product M in 2005; >50% of sales

from new products by

2012

Achieve all critical path milestones to ensure 2005 launches

Complete Product N and product M pre-launch activities

Upgrade sales and marketing competencies for adult markets

Develop trust and transparency between IO and R&D groups

implement programs to accelerate the product development process.

Maximize our key assets

Continue to develop and implement e-strategies to enhance the effectiveness of Company corporate strategy.

Align our capacity and capital investment with our strategy.

Rapidly upgrade our

technical and leadership

competencies

Aggressively fill the competency and values gap

Become a truly global organization

Empower through broad spans of control in a flat organization

Differentiate rewards and career opportunities based on performance

Regain our leadership position Regain our leadership position in product development and in product development and

approval approval Reliably supply quality XXX Reliably supply quality XXX Foster a culture that Foster a culture that

demands excellence demands excellence Continue to lead in Continue to lead in

marketing and sales marketing and sales


TeamworkTeamwork

With a common vision and a strategy there is a chance to develop common

Objectives

Commitment

Team direction

WorkshopWorkshop

What are the requirements for ensuring teamwork within an organisation



Suppliers’ Suppliers’ BargainingBargaining

PowerPower

Threat

of

Threat

of

NewNew

supplie

r

supplie

r

ss

Customers’ Customers’ BargainingBargaining

powerpower

Industry Industry competitive competitive

situationsituation

The forces of competition changeThe forces of competition changeProduct

Product andandService

Servicesubstitutio

substitutionn

Freedom

FreedomOfOf

Employee

Employee

movem

ent

movem

entGove

rnm

e

Govern

me

ntnt

Legis

latio

n

Legis

latio

n


Integration of Processes and ToolsIntegration of Processes and Tools

Strategic Review

IEL Review

Demand Plan

Master Schedule

Project Plan

MRP/CRP/

Activities

WTL/

Orders/

Tasks

How Often Yearly Monthly Weekly Daily Hourly

Who Board Board Managers Computer Computer

Units £’s Families Families/

Products

Parts/

Activities

Parts/

Tasks

Horizon 5 years 3 years 2 years 2 years 2 years

Focus 3-5 years 0-3 years 0 to Cum Lead Time

0 to Cum Lead Time

Part Lead Time

Time buckets

Years Months Weeks Days Hours

DetailDetail


CCUUSSTTOOMMEERRSS

CCUUSSTTOOMMEERRSS

Processes link customers to suppliersProcesses link customers to suppliers

SSUUPPPPLLIIEERRSS

SSUUPPPPLLIIEERRSS

CoreCoreCoreCore

VisionVisionAnd StrategyAnd Strategy

VisionVisionAnd StrategyAnd Strategy

SupportingSupportingSupportingSupporting

FinanceFinanceFinanceFinance

Human ResourcesHuman ResourcesHuman ResourcesHuman Resources

Information TechnologyInformation TechnologyInformation TechnologyInformation Technology

Product DevelopmentProduct DevelopmentProduct DevelopmentProduct Development

Business WinningBusiness WinningBusiness WinningBusiness Winning

Customer Order FulfillmentCustomer Order FulfillmentCustomer Order FulfillmentCustomer Order Fulfillment

After Sales ServiceAfter Sales ServiceAfter Sales ServiceAfter Sales Service

Integration of people, process and Integration of people, process and toolstools



IntegrationIntegration

Mission, values, and envisioned future

OperationalRequirements

Business of The Future

Winningbusiness

Strategy, SWOT, Critical success factors,

Measures, responsibilities

Strategy, SWOT, Critical success factors,

Measures, responsibilities

Integrated Operational Plan for all of the functions in the business

ProgrammeManagement

OperationsManagementContract

delivery

Tactics, Detailed plans, Measures, Development

Plans

Tactics, Detailed plans, Measures, Development

Plans

Delivery of requirements for

customers and shareholders

Delivery of requirements for

customers and shareholders

LearningAnd

DevelopmentPerformanceManagement

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Documents

© The Delos Partnership 2007 page 1 Integrated Enterprise Leadership Issues and the Delos Model as a solution