Amcor Fibre Packaging - Bevington Group€¦ · Amcor Fibre Packaging: Australia & NZ Manufacturing...
Transcript of Amcor Fibre Packaging - Bevington Group€¦ · Amcor Fibre Packaging: Australia & NZ Manufacturing...
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www.bevingtongroup.com Business Model Design Process Improvement Change Management
Australia and NZ patents, US and Canadian Patents pending
“Transforming the Front end” - a case study
of the Grow to Win program at Amcor
Amcor Fibre Packaging
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© Bevington Group. All rights reserved.
Agenda
Content
Background
The Challenge
Findings: Process
Findings: Structure
The Approach
Solutions
Implementation and Change Management
Outcomes to Date
What’s Next
Lessons Learned
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Background
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The Business Model
PAPER
FEEDSTOCKS
CORRUGATORS CONVERTERS DESPATCH
© Amcor 2012
PAPER
MILLS
DIRECT
DISTRIBUTORS
RESELLERS
ROUTE TO MARKET
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Amcor Fibre Packaging: Australia & NZ Manufacturing Locations
TOWNSVILLE
SYDNEY
MELBOURNE
BRISBANE
ADELAIDE
PERTH
AUCKLAND
HASTINGS
CHRISTCHURCH
DARWIN
LAUNCESTON:
• 13 Manufacturing sites
• 9 depots
• 2300 Employees
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The approach
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We needed to take a systematic approach to the situation to gain revenue and build sustainable competitive advantage.
All three sides of this triangle must be in alignment for a business to sustain a competitive advantage.
We started with Strategic
Direction, Key Processes and
Sales Structure – because we
needed growth fast
Strategic
Direction
Sustainable Competitive
Advantage
• Products
• Markets
• Competition
• Customers
• Costs
Organisational
Competence • Processes
• Structure
• Job Design
• Accountabilities
• Staffing/Recruitment
• Culture
• Experience
• Skills
• Mindset
• Perspective
Individual
Competence
Executives and Managers must be able to realign the strategy, organisation and people.
New appointees must be aligned with the strategy, organisation and people.
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To achieve the objective, methods were used that combined a top down and bottom up approach
The GTW Process
Stream Vision
Exec Team
Structural View
Bottom Up
Role Analysis
Bottom Up
Process Analysis
• Debate and analysis by experts
on what tasks should be
stopped, maintained,
accelerated, reduced or
transferred to achieve strategy
• Debate and analysis by
experts on process and
handover points
• RACIs conducted to clarify role
responsibilities
• Determination of key activities needed to
deliver strategy e.g. National Account
Management, Specific roles for NBD
• Number and type of roles to achieve
Market growth opportunities
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Clear Structural Design Principles were set from the Top
Standardisation
A Functional Approach
Strategic Imperatives
Customer focus (consistent quality & experience)
Sales staff are to be focused on selling
Cost Effective
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The bottom up view involved a detailed study of roles and processes via engagement with the shop floor
Data Collection by work team
Strategic Analysis Implementation
1) Representatives from each
natural work team document
the real tasks & activities
(4 hours)
2) Team members validate the
data (2 hours)
3) All team members allocate
relative time to identify the
focus of effort (2 hours)
• Build the processes
• Identify issues and
improvements
• Implement
• Measure & Documentation
to lock in and achieve
compliance
Solution Generation
• Generate practical solutions
• Quantify benefits
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SMART analysis used to reengineer the roles and quantify the benefits
Role 3
Tasks & Activities
Apply principles to
current data according
to:
1. Structural view
2. Strategic view
3. Noise reduction
4. Discretionary
reductions
Role 2
Tasks & Activities
Role 1
Tasks & Activities
Role 3
Tasks & Activities
Role 2
Tasks & Activities
Role 1
Tasks & Activities
CURRENT VIEW TO BE VIEW
This allows us to obtain:
1. ‘What if’ FTE view of roles
Opportunity
2. Data for RACI’s
3. Data for Job Descriptions
4. Role change management plans
“SMART” Meaning
STOP Stop this task
MAINTAIN Maintain this task at its current level of
effort
ADD Start performing a new task OR increase
the level of an existing task.
REDUCE Do less of this task. Duplication. Noise.
TRANSFER Do this task in another team / outsource
(benefit in cost to perform or focus)
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The findings: Process improvement review
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Significant waste reduction and process improvement opportunities: 52% noise in the order to cash process, 3% core in the sales process
SALES PROCESSES ORDER TO CASH PROCESSES
Analysis revealed ample process improvement opportunities to reduce noise,
subsequently increasing time and resources available to grow the business
CSDN Legend:
•Core: Selling, Growing Business
•Support: Taking Order, Payment
•Discretionary: Checks, reports
•Noise Incomplete/inaccurate info
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Many people involved in capturing detailed “As Is data” and “To Be improvement ideas”
Scale of Engagement VIC/TAS NSW NZ QLD Total
Number of People
Involved 62 39 49 52 202
Number of Roles 38 22 27 23 110
Number of Process
Steps Collected 5,785 3,821 3,709 3,510 16,825
Number of Improvement
Ideas Collected 671 198 231 512 1,612
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The Focus of Effort analysis further highlighted how noise was keeping people away from their key tasks
Field Sales Account Manager (National Average) Customer Service (National Average)
Only 12% of time selling, with 40% of time in issue management and administration
52% of time in issue management and administration
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The findings: Detailed structural analysis
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Based on the SMART analysis, we quantified the proposed savings from the Process stream with the intent to reinvest in Growth
Direct Sales Roles
Other SPS & OTC Roles
22%
Liberated by
Process
Improvement
Recruitment to
maintain future
Sales as growth
occurs
FTE Savings delivered by
Process Stream FTE Investment to deliver Strategic Growth
These role changes and FTE savings & investments
were locked in through the parallel restructure
18%
Recruitment to
maintain future
Sales as growth
occurs
40% of liberated
resource invested in
winning business.
Remainder in servicing
won business
70% of liberated resource
invested in servicing new
business. Remainder in
supporting NBD
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The solutions
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In conjunction with the operating model a clear set of change imperatives were utilised to communicate the change & prioritise the improvements
Free up time from the
Sales Force
Support the effectiveness
of the Sales Force
Key the data right and
keep it right
Do the job right – on time,
quality product
Utilise the Team
Utilise the systems
CHANGE IMPERATIVE
FUTURE STATE
Account Managers spending most of their
time selling
Account Managers focussed on
profitable growth
Data you can rely on
Consistently meeting or exceeding the
expected service levels
Functional excellence through lean teaming
concepts
Systems that enables and
supports efficient process
CURRENT STATE
Account Managers focused on failure and
issue resolution
Price reviews missed, poor visibility or
true margins & NBD personnel managing
accounts
Systems full of inconsistent, Incorrect,
missing & redundant data
DIFOT & Quality as top customer issues
plus revenue leakage
Unclear roles & responsibilities & wrong
people doing the right tasks
No access for people that need it, different
regional configurations, unused
automation
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A 12 month roadmap was designed to manage the transition from Current state to Future state
Imperative Wave 1 (3 months)
Process quick wins
Wave 2 (3 months)
Big process changes, structural
enablers & mgmt restructure
Wave 3 (3 months)
Detailed structural trials &
system improvements
1. Free up time
from the Sales
force
• Reduce time spent in admin
& reporting
• Reduce time in issue
management
• Reduced time in quotes,
tenders and contracts
2. Support the
effectiveness of
the Sales Force
• Commence tender process
review
• Better customer service
through alignment of customer
facing staff
• Improved costing through
skilled estimators and
business rules
3. Key the data
right and keep
it right
• Initiate cleansing and
assigning data ownership
• Finalise Master Data
cleansing and procedures to
keep it clean
• Ongoing audits of data
quality and compliance
4. Do the job
right
• Improve & standardise the
Batch 1 process
• Standardised processes that
manage the exceptions rather
than the whole
• Improved NCR process that
drives continuous
improvement
5. Utilise the
Team
• Define roles and
responsibility
• Test and revise customer
teaming • Introduce customer teaming
6. Utilise the
systems
• Increase usage of auto
order placement tool • Automate system reporting*
• Improved functionality &
integration*
Wave 4 (3 months): Full restructure including the training of the new roles
and embedding the new standardised operating model
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Implementation
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The implementation approached enabled collaborative development and cross regional deployment & tracking of improvements
(Project Team)
• Prioritisation of ideas
over 3 waves
• Assign idea owners
• Implementation Plan
• Metrics
(Regional Teams) (Regional Teams)
• Develop Solutions
• Continuous Feedback
• Knowledge Management
• Track metrics
• Track local progress
• Solution development
• Implementation
• Track metrics
• Track local progress
(Project Team)
• Automated reports
• Collated metrics
• Communicated progress
• Project governance
* Regional Team consists of
1 Project Team member and
the Regional Process
Owners
Idea Owners
dispersed to Regions
Solutions
refined
Input
measures
Communicate
progress
Communicate
progress
to corporate
PLAN Develop Roll out Report
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Each Implementation Wave focused on delivering quick wins and change enablers
• Wave 1
– 50 quick wins rolled out nationally, breaking the change inertia & generating tangible benefit
• Wave 2
– delivered larger process improvements & small system changes plus background enabling ideas to support the restructure
• Wave 3
– Operating model trials to de-risk the significant structural, behavioural, technological & process change
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2 trials were conducted in different regions over 3 weeks to de-risk the changes and prepare the business for the final restructure
TRIAL OUTCOMES
1. What are we doing & why?
(Territory Manager Model &
Trial Objectives)
2. How are we going to do it?
(Detailed process flows)
3. What do we need to do to
make it work? (Rules & tools)
Focus
1. Prepare for Trial
2. Conduct Trial
3. Conduct Reviews
4. Consolidate Learning
1. All sales and back office
processes defined
2. Finalised deployment version of
templates, selling aides and
finalise requirements for
supporting infrastructure &
software
3. Finalised skills matrices for all
roles and transactions
4. Agreed deployment plan,
deployment roles &
responsibilities, confirm
resource requirements, agree
risk management &
communication plans (*Required
several iterations to embed in
business)
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Change management
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In-house Change Programs were conducted to help the business understand and engage in the change process
LEADING CHANGE
Program for Leaders (4hrs)
WORKING WITH CHANGE
Program for Office Based Co-
workers (4hrs)
Program for Site Based Co-workers
(1.5hrs)
To create a shared understanding of the business context
To provide an opportunity for leaders and co-workers to discuss the change
Leaders understand what role they need to play during the change
To provide practical strategies for leaders and co-workers to effectively manage the change
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Amcor leading change workshop - GTW edits.pptAmcor working with change workshop - GTW edits.ppt
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A consistent Change Message was established across multiple forums and media
Launch
Roadshows tailored to audience - To people impacted
- To all employees
Elevator Speeches
Intranet Site
“Wall” at each site to post communications
Executive Meeting Updates
GTW Newsletter
Consistent and regular Announcements/Updates to all employees
To ensure
• Reinforcing and embedding
change
• Providing updates and sharing
quick wins and success stories
• All employees receive the
messages
• Launch and roadshows (with
video, gifts and hype) used to
build the change catalyst and
minimise resistance
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Five GTW behaviours established to emphasise behavioural changes needed
Our customers are number one and we
work towards a common goal of improving
our customer’s business
We communicate regularly and share
information openly with each other – we
keep each other in the loop
If we see something that needs to be
done, we do it
We will do what we say we are going to do
– for customers and for each other
We are consistent across the business in
everything we do
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Outcomes to date
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We are receiving positive feedback on the implementation, tools and changes
VOICE OF THE
EMPLOYEE
“Thanks to the
Transformation Project, I
am now executing the
principles of active
management by making
it a priority to walk the
floor more often “
“I was delighted that I was
able to put an idea forward,
have it read, implemented
and then recognised”
“Best managed project that I
have been involved with.
Good processes so far and
excellent communication”
“I have had a play
around with the one
click report today and it
is magnificent. This will
save a lot of planning
time for Reps and sales
support. Great report!”
“This trial has really showed me the
opportunities that are out there. We got 6 leads
just from knocking on doors. I really do have
faith in the processes that have been established
& I’m confident it’s going to make a positive
difference to the business”
“Love it! Getting a process put in place for
rush orders makes the Customer Service job
much easier. No more going backwards &
forwards between planning & the customer &
no more emails being sent out to tell
everyone about the urgents”
“Rush Orders are not as time
consuming as they use to be
– the new process is pretty
good”
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Learnings
Change Management Competence is crucial
Make the Case for Change - Confront the Brutal truth
Be Empathetic to the current situation – Seek first to understand
Front Line involvement is crucial to create Ownership
Over Communicate
Confront the cultural inertia
Establish behavioural standards as part of the process
Celebrate the successes – everyone is nervous
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Leanings - Process
Process mapping to make the case for change
Job redesign to deliver new processes
Beta trials are important to test robustness of the change
You won’t please everyone – some will want to leave, some will
need to leave
Be determined and resilient but don’t stop listening and tweaking
You MUST measure the outcomes (KPIS’s and BCI’s) and don’t
waiver in your review discipline. The actual change happens at
the bottom of the organisation
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Next Steps
Selecting sub processes for review
Modify IT systems to further improve efficiency and effectiveness
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Summary
Using the Bevington methodology in conjunction
with a clear strategy, AMCOR Fibre Packaging
is well underway to turning the business around.
We are far from finished as the change is yet to
be fully embedded into…….
“The way we do things
around here”
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