Post on 23-Sep-2020
transcript
Re-wiring..“.. the Business Model through Covid-19”
Dr. Sumit Mitra; CEO Tesco Business Services
Tesco at a glance.
440,000colleagues around
the world
6,809stores
3,400 in the UK
8 countries
1 JV
300,000 UK colleagues
90mnshopping trips
per week
£60bn sales
5 facts about Tesco Business Services.
Single service organisation for Tesco Group supporting Retail, Bank & Mobile 1
Execute 8 out of 10 Tesco Core process across 4 locations 2
Owns Tesco- wide capability for Continuous improvement & Digital transformation 3
70% of all finance processes & 100% store design globally is executed in TBS4
Sponsored by Group CEO & a key ingredient of Group strategy 5
Tesco during Covid 19
Huge demand
for online shopping
Panic Buying
• 52k colleagues absent at peak
• Up to 30% absence
Absence
• From 600k orders per week • 1.3m orders
On-line
• Removed multibuy promos
• Elderly Hour & NHS hour
Food for all
• Wide scale panic buying
• +35% LFL increase
5
We reacted very quickly.
Controlling to
empowering
Privacy to transparenc
y
Planning to experimentati
on
• Every decision was based on customer impact
• Elimination of waste
• Hierarchies to networks
• Focus on volume & utilisation
• Focus on colleague through “pulse survey”
Profit to purpose
• Remote working infrastructure for 5500 colleagues
• People policies launched to support
colleagues
6
Tesco Brand Index continues positive trajectory, consistently ahead of our competitors.
Source: YouGov, 1 week roll – Competitor Average consists of Big 3, Aldi, Lidl, Waitrose, M&S and Co-op
02
/03
/20
20
03
/03
/20
20
04
/03
/20
20
05
/03
/20
20
06
/03
/20
20
07
/03
/20
20
08
/03
/20
20
09
/03
/20
20
10
/03
/20
20
11
/03
/20
20
12
/03
/20
20
13
/03
/20
20
14
/03
/20
20
15
/03
/20
20
16
/03
/20
20
17
/03
/20
20
18
/03
/20
20
19
/03
/20
20
20
/03
/20
20
21
/03
/20
20
22
/03
/20
20
23
/03
/20
20
24
/03
/20
20
25
/03
/20
20
26
/03
/20
20
27
/03
/20
20
28
/03
/20
20
29
/03
/20
20
30
/03
/20
20
31
/03
/20
20
01
/04
/20
20
02
/04
/20
20
03
/04
/20
20
04
/04
/20
20
05
/04
/20
20
06
/04
/20
20
07
/04
/20
20
08
/04
/20
20
09
/04
/20
20
10
/04
/20
20
11
/04
/20
20
12
/04
/20
20
13
/04
/20
20
14
/04
/20
20
15
/04
/20
20
16
/04
/20
20
17
/04
/20
20
18
/04
/20
20
19
/04
/20
20
202001 202002 202003 202004 202005 202006 202007
22.0
24.0
26.0
28.0
30.0
32.0
34.0
YouGov Brand Index- 1 Week Roll
Tesco Big 3 Competitor Average
Government formally advise working from
home
Government ‘lock down’
announcement
Tesco announce £30m package of
community support
Introduction of product limits & priority shopping
hours
Introduction of social distancing measures & Adv
5 steps to re-wire business services to create value.
Theme 1: A seat on the table.
‘Connecting to the purpose’
‘Executing the purpose’
Theme 2: Having the right ingredients.
‘Clear strategy & direction’
‘data is new oil’
Walking Dead
Spectators Players
Cynics
Theme 3: Creating the right culture.
EmpathyAgile
Inclusive
Energy
Att
itu
de
+
+
-
Theme 4: Building stakeholder and board advocacy.
Brilliantbasics
Managedperception
Emotional
engagement
Build engagement
• Authentic “value add” to the P&L = 3 X value
• Export talent for the future/ Net new-skills
• Create end customer value
Manage customer perceptions
• Manage experiences of service not just service
Brilliant basics: do the ‘job’ what you are there to do
• Meet ‘hygiene’ SLA requirements
Build positive advocacy
Eliminate
detractors
+61
Step 5: From reports to cockpit.
Value
Part
ners
hip
Pockets of opportunity – looking at past and predicting the
future
Accurate
Reliable
Partner
Data Information
Anticipation
Decision Cockpits
Dashboards
Reports
Visualized Historic KPIs
Fact File
Bringing it all together at Tesco.
2.0 Develop Propositions and Communication for Customers
3.0 Buy and Manage Product for Customers
4.0 Fulfil Products to Customers
5.0 Serve Products to Customers
6.0 Deliver Financial Accounting
7.0 Manage Colleague Experience
8.0 Buy and Manage GSNFR
9.0 Manage Property Lifecycle
8 SERVICE MODEL PROCESSES
Top Line Growth
Bottom Line Growth
Cash Generation
Customer Satisfaction
Supplier Satisfaction
Colleague Experience
ENABLING VALUE CREATION
Value Multiplier
Organisation
A single integrated global organisation focused on creating a ‘one office’ organisation where Business Services connects back office operations to the customer
Value stream
Drive end to end process simplification and cross-functional value to customers, stakeholders and colleagues
A
B
Digitalisation
Cognitive technology to automate tasks and augment decision making
C
3 TRANSFORMATION STEPS
ROI
UK
CE
Asia
Thank YouFor Your Attention
Feel free to get in touch with me via: