Master Foods Driving Innovation

8/6/2019 Master Foods Driving Innovation

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Masterfoods USA Case Study: DrivingInnovation in R&D with Network Analysis

February 2006


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2006 Network Roundtable and Rob Cross, LLC, 1/30/2006 2

Agenda

About Masterfoods USA

How Research & Development (R&D) Employed Network Analysis toSupport Corporate Strategy

Approach to Applying Organizational Network Analysis

Key Findings and Recommendations

Building Connectivity Across Divisions Using nTags

Critical Success Factors and Lessons Learned

Appendix

How to Interpret a Network Diagram


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About Masterfoods USA

Mars, Inc Masterfoods USA is a division of ., the well-known company that makes such worldwide favoritesas M&M's, Snickers, and the Mars bar.

Like Mars, Masterfoods USA operates three core

businesses confectionery/snackfood, petcare andmain meal food.

Masterfoods USA employs almost 8,000 associates,and generates almost 30% of Mars revenue.

The 15 manufacturing sites of Masterfoods USA aredistributed across 11 states.
http://www.mars.com/http://www.mars.com/


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Masterfoods USA is Undergoing Major OrganizationChanges to Improve Consumer Focus

To find new ways to grow, such as through newproducts and businesses, since expanding throughnew markets can no longer provide the growthnecessary for long-term success.

The Mars Challenge

Shift from a conservative culture to one that is morewilling to take risks.

Restructure the organization to market-facing,

demand-led business units, designed to be drivenby the consumer.

Encourage employees to leverage the rightexpertise across the extended network (inside andoutside the organization), to bridge otherwisedisconnected worlds.

What This Means

With the focus on creating new products andbusinesses, R&D became the sharp point of the

spear for change across Mars.


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Network Analysis Provided Critical Insights to AssistR&D in its Transition to a Distributed Function

After operating as a centralized group for several years, the R&D core group ofseveral hundred people were recently distributed into business units. Keepingthe scientists and technicians engaged in productive communities is essential tothe innovation process.

Why Network Analysis?

To identify the R&D network, given that it was about to be decentralized. Byunderstanding the current network, a plan could be created to maintain and buildrelationships necessary for ongoing innovation.

To pinpoint where connectivity needed to be improved so interventions would beaccurate and successful. Management believed in the importance of internal andexternal relationships and wanted to measure the extent of relationships within thedivision, the company and the industry.

To take advantage of the diversity of the three core businesses and the best practicesamong them, particularly related to innovation flow. Although best practices were beingshared, diffusions were informal and erratic.

Diverse networks are more likely to yield great business ideas.Therefore, R&Ds goals included: creating networks made up of peopleinside and outside the company; and reducing the consumer degree of

separation to one within a year.


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The Network Analysis Project Ran for Seven Weeks,and Resulted in Specific Recommendations

Plan create network survey

define community members

obtain senior sponsor

Run test diagnostic with small sub-group

administer Web-based diagnostic

send system-generated e-mails to obtainresponses

Assess create recommendation report provide personalized Web sites

Apply develop and implement project plan

take action on personal network results

Weeks

1 2 3 4 5 6 7 8

In less than two months, network analysis provided importantinsights into the current state of the R&D community and

identified actions that would enable the group to continue tocollaborate even after the reorganization.



Network Analysis Clearly Identified Gaps and theTargeted Actions Necessary to Close Them

Network Analysis Helped Identify the Healthof the Community and its Key Roles

Understand the current state

Establish a baseline of measurement

Produce and act on a handful of meaningfulaction items

Identify resources for revitalizing a newcommunity

Network Analysis Will Help Track Progressand Target Future Efforts

Survey community members at future date

Analyze impact of productivity interventions

Validate investment and expand scope aswarranted

Illustrative Network: Initial Analysis

Illustrative Network: After Interventions

By taking a before and after snapshot of collaboration in thecommunity, a leader can both improve effectiveness of their

interventions as well as track progress over time.



Top Findings and Recommendations atMasterfoods USA

Key Findings Recommendations

Network Connectivity

The overall network is well connected for informationsharing and decision making, but there is a very highreliance on a few people, particularly leaders.

Cross-boundary Collaboration

There are comparatively low levels of connectivity acrosssegments and several disconnects across sites.

Distribution of Expertise Several gaps exist between skills that people have andthose people indicate they need or would like to knowmore about.

In some cases, connections were not made betweenexpertise areas that should have been connected.

Innovation and Learning There is potential insularity within the network. However,

more connected people reach out externally more oftenthan those less central.

People tend to have strong relations with those they haveknown for some time.

Improve business processes and rolesto decrease overload points in the

network (i.e., places where peopleholding certain decision-rights,information and tasks had become soover-loaded they were holding theentire group back)

Deepen functional expertise networksto maintain R&D excellence

Connect layers deeper in organizationto take managers out of key connectorroles

Track changes to rebuild connectionslost in SBU deployment

Connect more broadly to the externalworld to expose the business to newideas and make open innovation areality

Th N k W G d b S Wi h



The Network Was Grouped by Segment WithSeveral Very Highly Connected People

Network Measures

Density = 5%

Cohesion = 2.8Centrality = 15

Central People

(number of ties)# A (48)

# B (38)

# C (36)

# D (36)

Please indicate the extent to which the people listed below provide

you with information that helps you to accomplish your work.

= Food

= Snack Food

= Pet

Group

= Quality= Other

Network Measures Definitions

Density: Robustness of network. The number of connections that exist out of 100% possible in that network.More points connected often can mean quicker and more accurate information flow.

Cohesion (Distance): Ease with which a network can connect. Shows average distance for people to get to allother people. Shorter distances mean faster and more accurate transmission/ sharing.

Centrality (Degree): Identifies influential people (individual measure). Number of direct connections (ties) thatindividuals have with others in the group.

Managementwas

surprised bythe peoplewho were

most central.



The Number of Relationships in the Network Would Fallby 18% if the 12 Most Central People Were Removed

Including the Most Highly Connected People With the 12 Most Connected People Removed

To avoid over-reliance on individuals, it is important toemploy a retention and redundancy strategy.



Improving Collaboration Across Departments WouldReduce Silos, Increasing Innovation Potential

Food Pet

Snack

Foods Quality Other

Food (18) 83% 11% 3% 10% 11%

Pet (49) 8% 48% 3% 9% 11%

Snack Foods (91) 2% 3% 30% 9% 23%

Quality (70) 7% 8% 7% 31% 9%

Other (49) 9% 11% 21% 8% 29%

Information Providers

Information

Seekers

Responses of somewhat frequently and frequently

Raw Materials/Ingredient Functionality

The split between Snack Foods and the Food and Pet segmentsare clear. Quality serves as to bridge connections.

= Food

= Snack Food

= Pet

Group

= Quality

= Other

There is little information sharing betweenSnack Foods, Food, and Pet segments.Improved collaboration would enable meatand protein expertise to be shared betweenthe Pet and the Snack Foods segments todevelop new protein-based snacks. Nutritionexpertise should also be shared between the

Snack Foods and Food segments.

Target collaboration across groups (offdiagonal) is dependent on strategy; the goalbetween these segments is above 25% tocapitalize on key innovation opportunities.

Interpretation of Chart Above

Each cell reflects the percent ofinformation seeking ties out of 100%that could exist if everyone were

connected to everyone else at thatjuncture. For example, we see thatwithin Snack Foods, 30% of the

possible collaborative relationshipsexisted whereas only 3% of possibleties existed between Snack Foodsand Pet segments. The table is readfrom row to column when assessingwho seeks info from whom.



Ideas Would Flow Faster Among Teams with RelevantSkills and Tipping Point Network Positions

Packaging

Supplier

Nutrition

Strong

Tie

Individual-level Assets

Specific Knowledge/Skills

Creativity/Curiosity

Ability to Execute

Team-level Assets

Tech, Business, and Market knowledge

Experience (MFUSA and Industry)

Broad andstrong ties within MFUSA

Leveraging the right expertise and tapping the extended network should result in:

Better and more viable early designs

More effective mobilization of organizational resources Faster development and implementation cycle time

I ti Al Hi U V i ith



Innovation Also Hinges Upon Voices withDifferent Expertise Being Heard

This network suffered from domination, where the voices of a few central networkmembers were drowning out novel ideas. Several expert scientists had moved intohighly central and influential network positions over time. This subtle and invisiblemovement had created an overly rigid informal screening process for new products.

Dominant competency

Other competency areas

In this case, seniormanagement indicated

that new productopportunities were beingmissed because new and

potentially disruptiveideas from less influential

scientists in othercompetency areas were

not being heard.

More Connections Outside of Mars Particularly



More Connections Outside of Mars, ParticularlyWith Labs and Academia, Should Be Created

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

within your

project team

outside project

team, within

R&D function

outside R&D,

within Mars

outside Mars

Percentage

0

5

10

15

20

25

30

35

40

45

within your

project team

outside

project team,within R&D

function

outside R&D,

within Mars

outside Mars

Percentage

Central

All

Network analysis identifiedtwo important findings:

People need to build more

ties outside of Mars Less establishedworkgroups with non-coreexpertise tend to becomeinsular and peripheral

Interestingly, the 12 mostcentral R&D people (whoalso tend to be moresenior) seek a significantlyhigher percentage of

information outside R&Dbut within Mars.

Where People Go for Information

Where People Go for Information: All inR&D versus the 12 Most Central

Network Analysis Produced Detailed Individual


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Network Analysis Produced Detailed IndividualAnalyses, In Addition to Group-level Feedback

Each participant in the Network Analysis received a detailed 15-page profile, whichallowed them to assess their own connectivity and ways to improve it, based on thedimensions that research has shown matter for high performance.

Personal action plans are an important vehicle to improve leader and go to person

effectiveness at the individual and team level. Broader actions taken community-wide can leverage these profiles to drive grass roots

change that accumulates into substantial improvement in network effectiveness.

Enhancing Cross-Function Ties

Connecting with Brokers

Building Ties Across Sites

At Masterfoods, the personal

profile provided insights byseveral areas, allowing for atargeted action plan:

Functional Group

Physical Proximity Structured Interaction

Primary Medium of Contact

Time Known

Hierarchical Level

One of the First Actions Taken After the Network


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Analysis Was a Relationship-Building Exercise,Launched During R&D Excellence Week

Purpose for R&D Week

Enhance functional competencies

Extend expertise networks

Instill a new innovation culture

By Measuring our networks

Making our networks visible

Reinforcing the importance of vibrant

networks in R&D

How? By introducing nTAGs to Match on Expertise

The person wearing the tag

The person to whom the message onthe tag is addressed

Expertise Matching Point Award

Indicates an expertise match (you getpoints for these)

Both have same

One has, one wants

Indicates an expertise that only the

wearer has or wants (no points forthese)

During the Exercise the Network Grew in Real


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During the Exercise, the Network Grew in RealTime as Expertise Matches Were Made

Real-Time Display of Network

Just the start: 13people who have

made 8 connections

Rapid growth: 230people who have

made 596 connections

Network explodes: 236people who have made

1,462 connections

This exercise was held during the kickoff, enabling relationships formedto grow during the course of the week. The hope was that the more

important relationships would grow over time.

Factors Critical for Successful Network Analysis


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Factors Critical for Successful Network AnalysisProjects at Masterfoods

An executive sponsor with clout and interest Understanding the people who were well connected, and getting them involved in

the process early on

Beginning by creating a baseline survey and using that to design the full-blownsurvey

Understanding the team behaviors and dynamics and applying that knowledgeappropriately to fill roles such as core team member, leader and facilitator

Engaging the energizers and good networkers on the core team (see EnergizingBehaviors side bar in Critical Connections paper)

Identifying the de-energizers and being prepared to counter their negative influence

Using the data to make interventions

Applying best practices to creating and maintaining the Community of Practice. Forexample, identify a clear purpose, clarify roles and responsibilities, identify and

recruit members (as appropriate), provide mechanisms for communications andcollaboration, engage members and encourage continued involvement. (ReferenceCoP guides.)

SNA makes the invisible informal network visible. And

what you can see, you can improve. Executive Sponsor
https://webapp.comm.virginia.edu/NetworkRoundtable/Portals/0/Networks_and_Innovation_Roundtable_final.pdfhttp://openacademy.mindef.gov.sg/OpenAcademy/Central/HTML%20Folder/KM/bcp/resource_doc.htm#NAVSEAhttp://openacademy.mindef.gov.sg/OpenAcademy/Central/HTML%20Folder/KM/bcp/resource_doc.htm#NAVSEAhttps://webapp.comm.virginia.edu/NetworkRoundtable/Portals/0/Networks_and_Innovation_Roundtable_final.pdf


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Appendix

Why We Should Focus Our Attention on


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Why We Should Focus Our Attention onOrganizational Networks

Where People Engage

Join and commit to

people Trust accrues in

networks of relations

Where Work Happens

Lack of boundaries

Informal networksincreasingly important

BUT

Invisible Complements formal structure

Where Knowledge Lives

Rely on people forinformation

People can provide more

than databases

Key Reasons Why Organizational Networks Are Important


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How to Interpret a Network Diagram

Central People

Are an important source of expertise

May become bottlenecks

Peripheral People

Are underutilized resources

Feel isolated from the network

Have a higher likelihood of leaving

External Connectivity

Provides balanced and appropriate sources oflearning

Holds relevant influence with keystakeholders

Knowled

geBroker;B

oundary

Spanne

r

Peripheral Person

Ce

ntralPerso

nCentral

Perso

n

Brokers

Are critical connectors between diverseinformation sources and specific kinds ofexpertise. High leverage points.

Fragmentation Points

Affect information flow across boundaries (e.g.,

cross functional, hierarchical, geographical, orexpertise)

Provide targeted opportunities

Personal Connectivity

Improves community leader effectiveness

Enables grass roots network development efforts

Fragmentation Point

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Master Foods Driving Innovation