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1Copyright ©2019, CEMEX International Holding AG. – Confidential InformationCopyright ©2019, CEMEX International Holding AG. – Confidential InformationCopyright ©2019, CEMEX International Holding AG. – Confidential Information
Start From Where You Are, And Do Not Copy Other’s Way Of Working
Zero to One with Kanban method at CEMEXDaniel Escudero - Europe Regional Processes Head at CEMEXKaveh Kalantar - Kanban Coach and Trainer
2Copyright ©2019, CEMEX International Holding AG. – Confidential InformationCopyright ©2019, CEMEX International Holding AG. – Confidential Information
The next Bill Gates will not make an operating system like Windows
The next Jeff Bezos will not make an e-commerce website like Amazon
The next Daniel Ek, will not create a music streaming company like
Spotify
THE NEXT ENTERPRISE AGILITY SUCCESS STORY
will not have guilts, chapters, and squats in it
Continuously look inward & outward
Stay fit for purpose (today & in the future)
Role of Management is not degraded
Autonomy & act of leadership at all levels
Acknowledging unique identity & circumstances
Should not copy others systems of working
Must start from where they are today
Copyright ©2019, CEMEX International Holding AG. – Confidential Information 4
Copyright ©2019, CEMEX International Holding AG. – Confidential Information 5Copyright ©2019, CEMEX International Holding AG. – Confidential Information
About CEMEX Annual sales of US $13.7 billion
Ready-Mix1,505 Plants52 M m3 annual production
Cement66 plants69 M tons annual production
Aggregates285 quarries147 M tons annual production
Founded in Mexico, in 1906
Leading Cement, Ready-Mix & Aggregates company
Close to 40,000 employees
Present in more than 50 countries
Copyright ©2019, CEMEX International Holding AG. – Confidential Information 6
Over the past century, we have grown from a local player to one of the top global companies in our industry. We have the people, the
culture & the opportunities to continue addressing society’s growing needs with high-quality products and innovative solutions
1906 CEMEX is Founded
1930 / 1931 Doubles its production and does it first merger
1987 Deploys a company wide network CEMEXNet
1992 International expansion and establishing its IT arm Neoris
2001 CEMEX online service for ordering is deployed
2017 Introduction of new Digital Platform
1999CEMEX is listed on NSYE
2000 The “CEMEX WAY“ is launched
8Copyright ©2019, CEMEX International Holding AG. – Confidential Information
Superior Customer
ExperienceDigital
Technologies
New Business Models
The convergence ofSocial, Mobile, Analytics, Cloud & Internet of the Things (SMACIT)
presents significant opportunities and risks for CEMEX
Customer-driven world
Innovative commercial models to drive economic
value
Not an easy task, commitments made with internal stakeholders and market
Emerging business models
New sources of revenue & growth
Industry disruption by new entrants
2015… Why are we transforming CEMEX?
Copyright ©2019, CEMEX International Holding AG. – Confidential Information 9
Proud company of Latin America – a symbol ofrobustness andstability
Efficiency and technology driven
Top-downorganization, with conservative roots – mainly driven by industry traditions
New paradigm shift for C-level: Marriage of bottom-up and top-down management
IDENTITY
Copyright ©2019, CEMEX International Holding AG. – Confidential Information 10Copyright ©2019, CEMEX International Holding AG. – Confidential Information
CEO and Top Executive Digital Training Program70 executives
Developing a digital mindsetwithin the organization
100 Digital Professionals in Development (DPiD)
Digital Development CentersMonterrey / Prague
Learn, Work, Connect
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Using Design Thinking & Agilemethodologies to
develop and
deliver customer-centric features
38 SCRUM teams500 people
Minimum Viable Product (MVP)
Customer Journey Experience Program+3000 interviews and surveys
Product Management Process
12Copyright ©2019, CEMEX International Holding AG. – Confidential Information
~33,000 B2B20+
Countries
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Starting with large process framework, learning the hard way. Not fitting to context
Improving agility
Across whole organization
Adoption grew
Emergence of different systems of working
Leadership trust
Loosen up prescriptive process framework, focus on practices and principles
Controlled evolution
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Gradual shift to volunteered based approach
New ways of working ”bloomed” outside of IT
Leadership praised all emerging improvement efforts
Past learnings, experiences & leadership commitment to the cause enabled the above
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Deliver the right things for customers2
Predictable delivery1
Improve quality of work-life balance 3
Continuous and systematic improvement
4
2019 KMM
100+ Interviews after Global VP Prioritized
Copyright ©2019, CEMEX International Holding AG. – Confidential Information 17
VISUALIZE• Make work and its state,
risks & improvements visible
• Visualize teams, application & system health metrics
EXPLICIT POLICIES• Define transition process
policies• Define interdependent
parties interaction policies
LIMIT WIP• Shape demand by DoR• Apply 70-30 pattern
during planning• Encourage finishing
before starting
FEEDBACK LOOPS• Start cross teams and
units coordination• Run cross teams and
units retrospectives
MANAGE FLOW• Define end to end
workflows• Identify interdependent
parties
IMPROVE TOGETHER
• Align organizations to objectives
• Empower individuals and team to improve
Principle #1 Work on interdependencies & expectations
Principle #2 Respect all roles & processes – no need to have a grand change plan – evolve daily
Achievement
Acts of Leadership
Transparency
Collaboration
Evolutionary Change
Respect
Flow
Initial Understanding
Copyright ©2019, CEMEX International Holding AG. – Confidential Information 18
Energizing Movement
Allow evolution to happen
Control direction by end in mind
Inject energy when needed
Discovery of improvements opportunities and ideas, while
following core practices
Support of management
Build capability by training
Empower individuals and encourage act of leadership
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CapabilitiesCreate capability within teams or service groups to design and improve their system of working
• Through Trainings, post training coaching• And guided improvements
InterdependenciesUnderstanding interdependencies of teams and units; and explicitly define policies around that
Feedback LoopsWorking on evolutionary feedback loops horizontally and vertically: Across teams and units and at different levels of the organizations
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Distributed team in 7 locations to enable local reach
Europe, Middle East and Asia
» Fronting to the operations» Deployment of global, regional and local
initiatives» Ensure continuous operations» 60+ people» 15+ projects running in parallel. Several
technologies and practices in place
» 20+ Level 1 to 3 level customers distributed in 11 countries
» Many new services requested each month
Regional Deployment Team
Customers
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Role of a Middle Manager as a Leaderin top-down organizations, with tight
social cohesion
Connecting top to bottom
Bridging the flow of information
Model behavior and shape culture
23Copyright ©2019, CEMEX International Holding AG. – Confidential Information
A low mature
leader with
minimum energy
can bring down a
high mature
organization
A high mature
leader needs lots
of energy &
patience to lift a
low mature
organization
24Copyright ©2019, CEMEX International Holding AG. – Confidential Information
Middle Management Principles
Do not try shortcuts, be patient and build the right base first.
Build The Foundation
Focus on the whole system, interaction & feedback between parts
Focus on System
Support individuals and teams to master their trade
Improve Competency
Create environment for groups to design their systems of working
Provide Autonomy
Ensure everyone understands the intent
Make Intent Explicit
Always lead by example, and model desired behavior
Model Behavior
25Copyright ©2019, CEMEX International Holding AG. – Confidential Information
Do Things Right
Make Things Better
Do the Right Things
Fragile Manager
Mediocre Leader
Great Servant-Leader
Mediocre
Manager
Great Manager
26Copyright ©2019, CEMEX International Holding AG. – Confidential Information
Exhausting 2018 & 2019 not looking better
Customers satisfied but not happy
Leadership asking for efficiencies
Low team motivation and engagement
Adopt current market best practices
Copyright ©2019, CEMEX International Holding AG. – Confidential Information 28
Conference in Germany as inspiration: autonomy to teams and new leaders
Meeting with Kaveh (as Lean Kanban Coach)
Internal strategy workshop resulting in initial set of improvementsCo-creation of new organization with generalize and specialize service teams
Trainings to equip EVERYONE with knowledgeLooking to KMM for cultural readiness and practice appropriateness
20192018
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Completion of Kanban Mgmt Professional #1
All teams prepared their Kanban system using STATIK
Map existing service interactions between internal teams and customers
Presentation of achievementsat the Enterprise Agility Europe -'Maturity Matters' Kanban Conference & Workshop ☺
20192018
Copyright ©2019, CEMEX International Holding AG. – Confidential Information 30
20192018
Go global for deployment teamsGamify improvements among teams
Prepare our upstream and downstream for projects and small task
Work on defining our capacity, fine tune WIPs limits
Establish continuous improvements along KMM Framework:
Create habit before engaging in more advanced meetings and Kanban cadence
KMM assessmentsEnsure interactions with other teams continues to show improvements in CEMEX
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MY OFFICE
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Acts of Leadership
Transparency
Evolutionary
Change Initial Understanding
Collaboration
Flow
Respect
Achievement
Copyright ©2019, CEMEX International Holding AG. – Confidential Information 33
Follow up on the change on the improvements.
Team should see potential benefits to improve
Act on change
Ad-hoc or regularly find and start the next
improvement
Identify improvements
Teams seems to be improving, customers are happier, things are moving better.
“Things seem to be ok”
Find something to disrupt & make the team reflect. Should find by them self possible points for self reflection
“How to disrupt the team”
Continuous evolution
Copyright ©2019, CEMEX International Holding AG. – Confidential Information 35Copyright ©2019, CEMEX International Holding AG. – Confidential Information
THANK YOU