Date post: | 29-Nov-2014 |
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Proactive, Reactive and
Anticipatory Change
Eleodor G. Sotropa
Associate Director - Innovation
Global Business Services
Procter & Gamble
Unleash
business
benefits
that count
Create a
strong
foundation
for change
Live long by looking long.
—Tao Te Ching
Agenda
• Context
• A Strong Foundation for Change
– Five steps
• Driving Strategic value
– Business benefits that count
• Six Lessons
• The Future
It’s All About Change
P&G At a Glance • Founded 1837
• HQ in Cincinnati
• $76.5 Billion annual sales
• 138,000 employees
• More than 300 brands sold
in 160 countries
• Operations in more than 80
countries
• Gillette Expansion: October
2005
P&G’s 23 Billion-Dollar Brands
• The market is changing – it’s
harder to reach our consumer
• Consumers are more
demanding than ever
• Our competitors – we have to
work harder to stay ahead
• Innovation is critical to
sustaining long term growth
• Increased productivity = time
for building capabilities and
innovation
The P&G Business Need
Business Landscape 1999
• P&G has sustained
growth and improved the
lives of the world’s
consumers for more
than 160 years.
• Business Challenge:
How can a 160+ year
old company sustain
growth for another 160
years?
Our Opportunity
• Opportunity: Create a stronger
foundation for P&G’s growth by
transforming the Back Office into a
competitive business advantage
• Vision: To become the “go to”
organization for business
transformation
Agenda
• Context
• A Strong Foundation for Change
– Five steps
• Driving Strategic value
– Business benefits that count
• Six Lessons
• The Future
It’s All About Change
Create a strong
foundation for
Change
The Change Journey
Five Steps to a Foundation for Change
1.Going Global
2. Thinking Holistically
3. Growing in Partnership
4. Running as a Business
5. Measuring for Success
1999-2002: Creation of GBS
• Globalized AND standardized
>72 systems in 70 countries
• SAP Integration: Re-engineered
> 70% of our systems
• Formed 13 “service lines”
for business and employee
support
• Reorganized, retrained and
re-focused staff
Business Implications
• Duplicated services across regions
• Structural inability to take
advantage of economies of scale
• Inefficiently allocated staffing and
budgets
“Before”
Our Starting point: A Scattered Structure
In 1999:
Brands / Business Units operating
“independently” in countries around
the globe
Business Services:
“Localized” and dispersed among
business units, brands, geographies
“After”
GBS Service Centers and Data Centers
Cincinnati
San Jose
Newcastle
Brussels
Singapore
Manila
Five Steps to a Foundation for Change
1. Going Global
2.Thinking Holistically
3. Growing in Partnership
4. Running as a Business
5. Measuring for Success
How could a shared service organization really reshape our Company?
Not just IT or HR…but all aspects of business support systems…
Assessing the Holistic Business Needs
GBS’s Service Structure Today:
Employee Services & Solutions Categories
Employee Services
People Management
Facility Services
Computers & Communications
Meeting Services
Travel Services
Business Services & Solutions
Categories
Strategic Sourcing & Procurement
Financial Services & Solutions
Product Innovation
Supply Network Solutions
Consumer Solutions
Customer Solutions
Initiative Management
Business Performance Solutions
Five Steps to a Foundation for Change
1. Going Global
2. Thinking Holistically
3.Growing in Partnership
4. Running as a Business
5. Measuring for Success
Why we did it:
• We needed: Another big
step in our business
model
• What we realized: Could
grow stronger, faster if
we tapped into the
strengths of external
partners.
The Decision to Partner
Leverage Our best, with Their best . . .
How We Did It:
• Considered a “Big Bang”
• Looked for What,
before Who
--- Industry leaders
--- Strong cultural fit
--- Strategic partnerships
• Committed to
completing streamlining
and standardization FIRST
HR / Employee Services
IT Infrastructure
Transactional Accounts Payable
Facilities
Management
• 3 Partnerships
$4.2 Billion agreements
11 months start-to-finish
• Best-in-class industry
leaders
• Strong commitment to
partnership
• Clear measures for
success
What We Did
Five Steps to a Foundation for Change
1. Going Global
2. Thinking Holistically
3. Growing in Partnership
4.Running as a business
5. Measuring for Success
Running GBS as a Business
Why: We wanted to help the
Company do more:
• Grow in breakthrough ways
• Double our business
contribution in the next 4
years
• Deliver lower cost, AND
better services, AND greater
value
P&G’s Approach GBS Equivalents
• Profit/Loss Cost
• Market Share Service Levels
• Sales Volume Value Creation
• Brand Management Service Management
• Consumer Benefits “Total User Experience”
(functional and
emotional)
Running SSO as a Business Borrowing from P&G’s Management Practices
Running GBS as a Business The “New” Terminology
Strategic
Cost Savings Service and value creation
Organizational
How we’re organized What they need
Cost allocation Consumption based
Cultural A captive audience Delighting the user
Either / Or AND
Push Pull
Mandated Services Offerings
Five Important Steps to Creating a Strong
Foundation for Change
1. Going Global
2. Thinking Holistically
3. Growing in Partnership
4. Running as a Business
5.Measuring for Success
• Scorecards
• SLAs
• KEAs
• User Sensing
• Top-to-Top
Connections
Measuring for Success
Agenda
• Context
• A Strong Foundation for Change
– Five steps
• Driving Strategic value
– Business benefits that count
• Six Lessons
• The Future
It’s All About Change
Unleash business
benefits that count
The Path from Reactive to Anticipatory Change
Business Benefits that Count
• Better Service 4 Less
• Scale
• Innovation
• Agility
• Productivity
$600 MM in cost
savings to date
A 16% increase in user
satisfaction with HP last year
Better Service 4 Less
Globalize 72 systems in 70
countries in just 3 years
Replace over 20,000 legacy reports with one reporting tool
@ your fingertips
Scale
Compress Time of
Innovation to Market . . With
Virtualization + Modeling
Revolutionize Delivery of Information by Offering
Personalized Decision Tools
Innovation
Integration of Gillette:
Within 2 weeks, our partners added
700 full-time people to the P&G
business to integrate Gillette
Together: 1100 projects Completed: in 15 months Cost savings: $1 Billion
Agility
Save Time with GBS Services
– helping you to Get Back 30
Building Video Collaboration – using Cisco Technology to
allow Innovators to “Be There without Leaving Here”
Productivity
Today: GBS Change Machine
Global strategy
for products,
Marketing,
R&D, &
Manufacturing
Customer
relationship;
local marketing
& consumer
understanding.
Employee & business
services, IT
infrastructure,
processes & business
support across P&G
Cross-functional
support: HR, PS,
Finance and
Accounting, CMK,
Design, External
Relations, R&D,
Legal, CBD
Agenda
• Context
• A Strong Foundation for Change
– Five steps
• Driving Strategic value
– Business benefits that count
• Six Lessons
• The Future
It’s All About Change
To succeed, you need top-management support
Strive to anticipate the future
Invest in people and new skills
Marketing matters
Shape the culture
Focus is priceless
It’s not always easy… but it is always about Change!
Six Lessons
1. The changing market demands
more personalized, direct
interactions.
2. Predicting the business and key
business drivers is becoming
increasingly important.
3. Greater demands are being placed
on improving speed to market and
innovation delivery.
Create 1:1
connections internally
& externally
Emerging Business Trends:
Strategic Work:
Enable
real-time
decision making
Virtualize
& model
Anticipating the Future
Marketing Matters
We successfully apply the P&G brand
building framework to our GBS services
• Identify our target audience
• Seek insights around what benefits they are
looking for
• We match our messages to meet those
needs
• We want to keep users Informed, Aware &
Engaged
The roll-out of Microsoft
outlook from Lotus Notes
A new generation in video conferencing to
boost global collaboration
Marketing Matters
Agenda
• Context
• A Strong Foundation for Change
– Five steps
• Driving Strategic value
– Business benefits that count
• Six Lessons
• The Future
It’s All About Change
Some Key Concepts…
• Focus on your consumer (user)
and your customer (client)
• Deep consumer understanding
--including un-articulated needs
• Define the What, Who & How
• Use a gated approach
We Borrowed P&G’s Innovation
Process… and adapted it to GBS
Discover
CONCEPT
FRAMING
IDEA
GENERATION
OPPORTUNITY
SEARCH PROTOTYPE
& TEST PILOT LAUNCH
Design Qualify Launch Ready
COMMERC.
PLAN
Defining the Opportunity . . .
• We focus on a few big
opportunities.
• We talk to our top business
leaders to find “what keeps
them up at night”
• We talk to our users using
design shop and consumer
understanding techniques.
Brainstorming & Ideation…
• Design shop techniques (i.e.
Ideo Labs)
• Engage “right side of brain”
• Diverge and converge
several times.
• Produce a mockup of the
experience.
• Consumer (user) belief
• Compelling business
proposition
• Reasons to believe
• Description of desired
experience including a
story board or mockup
The
Defining your Concept…
Building your Mockup…
• Unconstrained concept: Test
“how high is high”
• No real system, good visuals
and good flow that describes
one typical scenario
• It’s non-linear, so be prepared
to Iterate, iterate, and iterate
• Becomes the foundation or
specifications for the first
prototype
Building your Prototype…
• Technical feasibility for
developing FOAK
• This is where you start doing
more serious investing
• Connect & Develop strategy
• If technical constraints change
your promise, re-negotiate
concept with clients and users
• This becomes the kernel for
your pilot test
Build your Pilot...
• Tests entire system including
support processes
• Checks for scale and robustness
• Provides key information for the
commercialization plan
• Purpose is to fine tune, not to
re-design or re-engineer the
proposal
Manage Change: Compress
Time of Innovation to Market . .
With Higher Quality AND Lower
Cost
Revolutionize Delivery of
IT Solutions and Business
Services by Anticipating
This Approach Allows us to…
In the beginning
and to the end:
It’s All About Change