Reinvention with respect
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Transcript of Reinvention with respect
Reinvention with Respect
An Interview with Jim Kelly of UPS Jaccy LaiAshly Ling
Yvonne lingAbu Shadath Shaibal
Introduction
WHEN YOU THINK OF UPS, WHAT COMES TO MIND?
MOST LIKELY, YOU CONJURE UP
IMAGES OF BROWN DELIVERY VAN
Introduction
BUT THIS $30 BILLION COMPANY IS MUCH MORE THAN A PACKAGE DELIVERY CARRIER.
SINCE ITS FOUNDING IN 1907, UPS HAS CONTINUALLY
BROADENED ITS TERRITORY, ITS OFFERINGS, AND ITS
MISSION TO BETTER SERVE A CHANGING MARKETPLACE.
TODAY, IT EMPLOYS OVER 360,000 PEOPLE AND
OPERATES IN SOME 200 COUNTRIES AND TERRITORIES.
Introduction
IN THIS INTERVIEW, CEO JIM KELLY, WHO BEGAN HIS UPS CAREER 41 YEARS AGO AS A DRIVER TALKS CANDIDLY ABOUT THE CHALLENGES OF TRYING TO GROW SUCH A HUGE, MATURE BUSINESS.
HE EXPLAINS THE COMPANY'S FOCUS ON INTERNATIONAL
EXPANSION: “GOING FORWARD, THE REST OF THE WORLD OFFERS MORE GROWTH OPPORTUNITY THAN THE UNITED STATES BECAUSE WE HAVE A LONG WAY TO GO TO ACHIEVE THE SAME DENSITY ABROAD THAT WE HAVE DOMESTICALLY”.
About UPS
Known in the industry as "Big Brown" ,United
Parcel Service,Inc is the world's largest package delivery
company.
Was founded in 1907 Seattle by Jim Casey, called
American Messenger Company
Migrated into one of contract services delivering
packages from the large department stores
downtown to homes in the surrounding areas in Seattle and then Los Angeles. UPS
start to develop metropolitan operations – moving packages rather
than messages In the early ‘80s, UPS began to
embrace the air business.
This new approach business made UPS
faced debt problem as they are still a private
company which depends only on
managers’ investment.
Following that UPS expanded globally, did a number of small acquisitions in Europe and Asia. UPS opened up their stock ownership to their employees in order to pull in cash for expanding their business
Did an IPO and joined the public market
'99
UPS made a changes on their mission. The phrase "Worldwide Delivery Service," which had appeared on its 88,000-vehicle fleet, was replaced with "Synchronizing the World of Commerce," thereby reflecting UPS's expanded activities in the wider supply-chain industry. This was a big external message as an internal message.
2003
UPS did a numbers of acquisition for completing their capabilities to manage supply chain
2000-2005
UPS ranked No.1 on Transport Topics’ Top 50 Logistics Companies
2015
UPS TIME CAPSULE
1950Entering the
Common Carrier Era
1907Local
Messenger Service
1920Retail Delivery
Beginnings
1975national company
(48 contiguous state)
1986Global company
1988 Airline
1992Info Business (Total Track)
2010-2014 The New Logistics
About Jim Kelly
● Native of Jersey City, New Jersey● Earned a Bachelor of Science degree in business from
Rutgers University
1964
Package Delivery Driver
1965
Package Distribution Center Manager
1988
Elected Senior Vice President and Appointed
the company's Labor Relations Manager
1991Served on the UPS Board of Directors.
1992Chief Operating
Officer
1997 - 2001Chairman and Chief
Executive Officer
Board of Directors of BellSouth and Dana Corporation
Director of Georgia Pacific Corp. and the
Welfare-to-Work Partnership
Jim Kelly
Board of Councilors of
the Carter Center
Member of the Board of Trustees for The Annie E.
Casey Foundation
Dean's Advisory Committee of
Emory Business School
Member of the International
Trade and Investment
Committee of the Business
Roundtable and the Council on
Competitiveness.
Q&A with Jim Kelly
2 Organizational Challenges
Deliver strategy clearly into
individual roles
Create confidence
among people to move into new sector
"What's keeping people up at night at UPS these days? Besides overnight delivery, I mean."
● To meet the expectations ( achieve 34.5billion business on coming year)
"In the past five years, UPS's net income grew at a compound annual rate of almost 22%. How can you possibly sustain anything like that? What's your strategy?"● Maintain core business whilst expanding new sector
● Understand and anticipate customer's needs● Globalization● Broaden up the core business territorially
"How do you decide what new business lines make sense?"
● Main Purpose: Enabling global commerce (moving information & money)
● Expand to logistic business and global financing services
● Service Parts Logistics maintain a spare-parts inventor make deliveries of critical part provide warranty service
"What's hardest about leading UPS into new areas?"
● Allowing 360,000 subordinates to understand their own strategy● Trained up the confidence within the employees● To sustain the value of innovation-reinvention
Sounds like your approach to reinventing UPS starts with reinventing its self-image or even its mythology. Does that amount to reinventing the culture?
Preserve UPS
culture
honest
Straightforward
Intergrity
Loyalty
Dedication
Deciding what you don't ever want to change & what you
have to throw away
**innovative -room to improve
CULTURE
Does UPS turn people into UPSers or do people who already have those qualities simply self-select into it?
● Turns you into what you are● UPS strengthened people
values, honest & rectitude
Does that strong culture make it easier to build consensus?
● Building up consensus naturally● Not the first priority● Is important during decision
making
Are you concerned about a shift toward short-term thinking as people begin to focus more on the stock price?
● LONG TERM - main concern
● UPS focused on doing the right things & keep costs in line BUT....
Actions = stock price
You've overseen a reinvention of UPS from the old economy to the new one. But I haven't heard you take credit for any of it.
● CEO are being overrated
● UPS - more focused on Collectivism, Individualism
Conclusion
United Parcel Service were brave enough to change the vision, starting at the top, and
committing themselves to it from the top all the way down through every employee of
the company. They managed to do it quickly by making changes in their processes and
organizational structure.
UPS has done a remarkable job of leveraging their core competencies for the
new world of e-commerce. They have figured out how to deliver their core
business services in new ways, while leveraging their tremendous infrastructure
assets.
They haven't forgotten where they came from. In that they have managed to
preserve their company culture. It has served them very well in promoting the
creative thought necessary to come up with new ways to do business and grow the
company.
UPS employees are giving high commitment throughout their tasks and jobs. They
always encourage and establish themselves as independent and they will fight for what
they believe is right.
Using the UPS Distribution tool, Customer Solutions can help customers determine the optimum number and location of facilities and minimize inventory costs – all while
maintaining your customer service requirements.
Lewin’s Change Management modelUNFREEZE
• Determine what needs to change
• Strong support from Upper management
• Create the need for change
CHANGE
• Communicate often
• Empower action
• Involve people in process
REFREEZE
• Anchor the changes into a culture
• Sustain the changes
• Celebrate everyones hardwork
Jim Kelly is successful & effective leader who lead UPS to a better future.