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Engagement; The Corner Stone of Operational Excellence Date: 11 th Oct 2017 By: James Lyons Boston Scientific Galway

Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

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Page 1: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

Engagement; The Corner Stone of

Operational Excellence

Date: 11th Oct 2017

By: James Lyons

Boston Scientific Galway

Page 2: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

Boston Scientific Corporation • Medical Device Industry

• $9B Revenue pa

• 27,000 Employees

• 16 Manufacturing Sites

Some Context…

2

Boston Scientific Galway, Ireland • 3,100 Employees

• 44 Product Families

• 2,200 UPNs (SKUs)

• 50+ Technologies

6 Production Units

DES SES PTA SHP

SDC

PU Size: 250 - 600 people PCT

Page 3: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

The Why?

3

• Commoditisation of products with sale price erosion - Gross Margin Pressure

• Highly competitive environment - Internal

- External

• Maximize our value - Identify & deliver on our core value to the company (Customer)

Why do we need Operational Excellence?

Page 4: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

The How?

• Leadership Great change requires great leadership

… at all levels of the organisation!

• Vision & Strategy We need to envision & plan our future

• Operational Excellence We need to be the best at what we do!

4

Best Practice?

Expertise?

Method?

We need to be a great site in order to deliver great value!

Page 5: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

Benchmarking is a critical part of the process!

5

Best Practice: Do we really know what excellence looks like?

The How?

Page 6: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

6

The How?

Lots of tools and models…

Page 7: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

7

Deming’s 14

Points McGergor:

Theory X-Y

Maslow: Hierarchy

of Needs

Pink

Great Place To

Work Covey: High

Trust Leaders

The How?

Some of the subject matter expertise…

Collins

Hopp

Spearman

Rother

Shook

Womack

Jones

Deming

...

Page 8: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

8

“ Everything should be made as simple as possible,

but not simpler “ - Albert Einstein

Simple Intricate

Inner Workings

The How?

Page 9: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

Learn from the Best!

Strategic Operational Excellence

5P Model: Pryor/Toombs/White

Shingo

EFQM

Kaplan/Norton: Balanced

Scorecard

Hines Model McKinsey 7S Model Porter: Competitive

Advantage Molloy/Delany: Strategic

Leadership

Kotter: Leadership & Change

Management

9

Martin: Own The Gap

Devine: Mass Engagement

Page 10: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

Learn from the Best!

Strategic Operational Excellence

10

People are at the centre of everything we do!

Page 11: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

Some Learnings…

11

The People Environment Is A Multiplier!

Page 12: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

Enable, Engage, Empower!

12

Some Learnings…

Page 13: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

13

Some Learnings…

Hands, Head, Heart!

Page 14: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

14

Some Learnings…

From To

Page 15: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

15

Some Learnings…

High Performance Teams

Goals

Roles

Skills

Relationships

= Results

• Team Goals

• SMART Goals: Specific, Measurable,

Agreed, Realistic, Timelines

• Clearly defined responsibilities

• Deliverables

• Accountability

• What key skills are required?

• Training & proficiency

• Expertise

• Shared values

• Personal Connection

• Respect & Trust

+

+

+

+

Purpose • Team Purpose

Page 16: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

Do you have the right people on the bus?

16

Some Learnings…

Page 17: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

17

Value Of Engagement

Page 18: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

18

Building A High Engagement Culture

Behavioural Standards

Leaders Anyone who has someone reporting

to them

Teams All Teams; Direct & Matrix

Individuals How everyone interacts with

each other

Page 19: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

19

Everyone Participates!

70+ Workshops

2,800 people • Obstacles to Our Future

• Motivational Information

• Consensus Day Representatives Consensus Day

• 1,400

• Data Inputs

• 363 Obstacles

• 7 Themes

Behavioural

Standards

One

Plan

Frank Devine

People Engagement Program

Page 20: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

20

People Engagement Program

Caring

Meaningful

Innovation

High

Performance

Global

Collaboration

Diversity

Winning

Spirit

Our Values Our Future

Page 21: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

21

What’s Different?

• Alignment; Purpose & Vision

• CI workspace for teams

• Absenteeism has halved in last 24 months

• ER Issues down by 40+%

• Inclusive team problem solving

• Preventative safety

• PB (Operators) involved in all key initiatives

• Majority of our behavioural standard training

was facilitated by our PBs (Operators)

Page 22: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

Cost

Some Results …

Safety

Service

Quality Balanced Scorecard

Page 23: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

In Closing...

• People are at the centre of everything we do

• We have underutilised resources right under our

nose … we just need to engage them!

Page 24: Engagement; The Corner Stone of Operational Excellence · The Why? 3 • Commoditisation of products with sale price erosion - Gross Margin Pressure • Highly competitive environment

Thank You!

Your opinion is important to us!

Please take a moment to complete the survey using the conference mobile app.

Session No: WS/41

Engagement; The Corner Stone of Operational

Excellence

James Lyons

Boston Scientific Galway