Zero to One with Kanban method at CEMEX

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 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


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?


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


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


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


~33,000 B2B20+

Countries


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


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


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


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


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


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


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


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


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


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


Do Things Right

Make Things Better

Do the Right Things

Fragile Manager

Mediocre Leader

Great Servant-Leader

Mediocre

Manager

Great Manager


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


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


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


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


MY OFFICE


Acts of Leadership

Transparency

Evolutionary

Change Initial Understanding

Collaboration

Flow

Respect

Achievement


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


THANK YOU

Zero to One with Kanban method at CEMEX

Documents

Transcript of Zero to One with Kanban method at CEMEX