Agenda Target markets and target customers Key success factors Alignment of an organisation to meet market requirements Case study: Saltigo Key learni

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1 Maximizing Executive Team Performance Dr. Uwe Brunk Head of BL Agro & Specialty Chemicals Maximizing Executive Team Performance Dr. Uwe Brunk June 2009 Slide 1

2 Agenda Target markets and target customers Key success factors Alignment of an organisation to meet market requirements Case study: Saltigo Key learnings and profile for team members Resume Maximizing Executive Team Performance Dr. Uwe Brunk June 2009 Slide 2

3 1. Target markets and target customers Custom manufacturing & custom synthesis Innovative industries, mainly pharma & agro Large companies in western world No own products, no product-ip One product for one customer High capital intensity High risks, high rewards? Maximizing Executive Team Performance Dr. Uwe Brunk June 2009 Slide 3

4 2. Key success factors Sound understanding of its customers individual needs Good relationship to customers / reactivity / openness Long-term track record Strong project management Highly skilled people Highly flexible assets Technical strengths, continuously improving Broad process development / process improvement expertise Highly efficient waste management Financial stability Maximizing Executive Team Performance Dr. Uwe Brunk June 2009 Slide 4

5 3. Alignment of an organisation to meet market requirements 3.1 General Organisational structure market driven Specific markets have specific needs Multi-purpose-facilities in one hand: asset management All key service functions in-house, i.e. procurement, human resources, engineering department Maximum outsourcing of non-core service functions Matrix organisation for project teams Long-term assignments Maximizing Executive Team Performance Dr. Uwe Brunk June 2009 Slide 5

6 3. Alignment of an organisation to meet market requirements 3.2 People skills Experienced people for each specific category Broad experience in this specific market Strong financial and chemical understanding Good communicator Teamplayer Willingness to create Openness for change Maximizing Executive Team Performance Dr. Uwe Brunk June 2009 Slide 6

7 3. Alignment of an organisation to meet market requirements 3.3 Performance metrics Long-term objectives / short-term incentives Annual financial objectives (EBITDA, DSI, DSO, Capex, ROCE, net cash flow) Combination of company profitability and customer value Personal objectives interlinked no silo mentality Set of KPI s for each segment (i.e. Right first time, OEE, ) Lessons learned mentality Regular benchmarking Transparent communication of goals and achievements Goals: continuous improvement become the gold standard of the industry Maximizing Executive Team Performance Dr. Uwe Brunk June 2009 Slide 7

8 4. Case Study Creation of Saltigo in 2006 From 2 nd quarter 2006 Saltigo service company of LANXESS Group Mayor role Market-oriented custom manufacturing service provider From September 2004 Business Unit Fine Chemicals of LANXESS External fine chemicals partner for customers, including Bayer Group Until September 2004 Business Unit Fine Chemicals of Bayer Chemicals AG Synthetic and process engineering competence center within the Bayer Group Maximizing Executive Team Performance Dr. Uwe Brunk June 2009 Slide 8

9 4. Case Study Chem Park Leverkusen site Fine chemical production is concentrated on the Leverkusen site (10 plants) Maximizing Executive Team Performance Dr. Uwe Brunk June 2009 Slide 9

10 4. Case Study Saltigo Full service provider for custom manufacturing Agro Specialty Chemicals Pharma Maximizing Executive Team Performance Dr. Uwe Brunk June 2009 Slide 10

11 4. Case Study From the Idea to the Market Idea Lab Process development Pilotation Production Market Competencies of Saltigo Customized synthesis Customized process development Customized manufacturing Customized services Maximizing Executive Team Performance Dr. Uwe Brunk June 2009 Slide 11

12 4. Case Study Saltigo A Distinct Player in Custom Manufacturing Top position in pure custom manufacturing (source: Arthur D. Little) Revenue of about 400 Million Agro: leader in agro customer manufacturing (incl. active ingredients) Specialty Chemicals: strong position in custom manufacturing for Cosmetics, Polymer, F&F and Electronics industry Pharma: pure custom manufacturer serving established and emerging pharmaceutical companies with APIs, RIs and RSMs Maximizing Executive Team Performance Dr. Uwe Brunk June 2009 Slide 12

13 5. Key learnings and profile for team members 5.1 Combination of the strengths of a large conglomerate and an entrepreneurial company Well established processes and discipline Continuous improvement and regular benchmarking People with broad range of experience Good established tracking systems Extensive engineering capabilities Teamwork (one goal for all) People understanding the specific needs of each customer Customer focus in all parts of the organisation Economically viable solutions Fast adaptability to changing market conditions Nimblicity Maximizing Executive Team Performance Dr. Uwe Brunk June 2009 Slide 13

14 5. Key learnings and profile for team members 5.2 Profile for your team Team player Experienced people for each part of the organisation Broad experience in this specific market Broad knowledge (financials and chemistry) Good communicator / good motivators Mix of people with different horizons of experience (different company culture, inter-cultural experience) Mix of young and experienced people Strong customer focus Willingness to create and change Experience in creating economically viable solutions Identification with the company Maximizing Executive Team Performance Dr. Uwe Brunk June 2009 Slide 14

15 5. Key learnings and profile for team members 5.3 Alignment Take time to create a team Be a front runner in customer orientation Develop your strategy together Let them exchange their experiences Bring them together with customers at various levels Let them broaden their horizons by visits to suppliers Regular transparent communication Long-term assignment Set long-term goals and reward them for short-term achievements Maximizing Executive Team Performance Dr. Uwe Brunk June 2009 Slide 15

16 5. Key learnings and profile for team members 5.4 Behaviour in challenging times Keep your staff informed of your plan, the progress being made, especially when major changes are made Keep your promise Give key people a perspective during transition Increase internationality in your team Inform customers upfront of planned changes and keep them regularly informed about progress Keep your good track record Maximizing Executive Team Performance Dr. Uwe Brunk June 2009 Slide 16

17 6. Resume Clear strategy and its regular communication Focus on customers needs Continuous improvements Sense for viable solutions A great team A good track record Partnership with customers in various industries Keep your promise Never stop changing and you will be also successful in challenging times! Maximizing Executive Team Performance Dr. Uwe Brunk June 2009 Slide 17

18 Maximizing Executive Team Performance Dr. Uwe Brunk June 2009 Slide 18