PMO as Strategy Enabler January 26, Giorgio Difronzo Global PMO Director

Transcription

1 PMO as Strategy Enabler January 26, 2018 Giorgio Difronzo Global PMO Director

2 Agenda Campari Group - Introduction PMO Journey in Campari Group PMO and Strategy Execution PMO value creation in Strategic Initiatives Management: Lessons Learned 2

3 Campari Group - Introduction 3

4 Campari Group s History Campari was founded in the year Gaspare Campari invented the bright red bittersweet aperitif in downtown Milan. From 1888 onwards, his successor and son, Davide Campari, developed and implemented an extensive campaign to grow the brand globally, featuring a winning marketing strategy; the creation of the first single-serve aperitif, Campari Soda, in 1932; and a patronage of the arts to enhance product promotion. In the 1960s, Gruppo Campari s distribution power already reached over 80 countries. In the second half of the 1990s, the beverage industry was characterized by a strong M&A trend which led to the creation of corporations with global dimensions and remarkable portfolios appealing to a broad consumer dynamic. Therefore, Campari chose to expand not only via organic growth but also via external growth, turning from a single-brand company as late as 1995 to a multinational company with a solid and expansive portfolio with international appeal today. 4

5 Campari Group today Campari Group today is a major player in the global branded spirits industry, with a portfolio of over 50 premium and super premium brands, marketed and distributed in over 190 markets around the world, with leading positions in Europe and the Americas. The Group employs around 4,000 people and has an extensive portfolio of premium and super premium brands, spreading across Global, Regional and Local priorities. Shares of the parent company Davide Campari - Milano S.p.A. are listed on the Italian Stock Exchange since Campari Group is today the sixth-largest player worldwide in the premium spirits industry* Diageo Pernod Ricard Bacardi Ltd. Brown-Forman Beam Suntory Campari Group Constellation Brands E.&J. Distillers Mast-Jägermeister The Edrington Group * Source: Impact s top 100 Premium Spirits Brands Worldwide by Company, March

6 Worldwide Presence A STRENGTHENED ROUTE-TO-MARKET AND PRODUCT SUPPLY CHAIN Headquartered in Sesto San Giovanni (Milan), Campari Group has its own distribution network in 20 countries. Since 2004, it dramatically strengthened its route-to-market from 5 to 20 in-market companies which account for 90% of Group revenues. The Group insourced bottling activities in the core US and Australia markets and globally increased its manufacturing plants from 8 in 2004 to 18 today: Italy (4), Greece, Scotland, Jamaica (3), France (2), Australia, Mexico, United States, Canada, Argentina, Brazil (2) in-market companies Italy, Germany, USA, Brazil, Switzerland. Additions since 2004 Austria, China, Argentina, Mexico, Ukraine, Belgium, Luxembourg, Australia, Russia, Jamaica, UK, Spain, Canada, Peru, South Africa. 6

7 Growth Strategy Campari Group s growth strategy aims to combine organic growth through strong brand building with shareholder value enhancing acquisitions. Spirits are the company s core business and where it focuses its acquisition efforts. The group s strategic thinking is driven by the desire to reach or enhance critical mass in key geographic markets. Drive faster growth of Global Priorities and incubate Regional Priorities with best-in-class marketing, innovation and brand building Generate steady growth in key Local Priorities through periodical renewals 50% ORGANIC GROWTH 50% EXTERNAL GROWTH Seek acquisitions in markets where Campari Group controls its distribution Acquire local brands with strong equity to build new distribution platforms Leverage on rigorous cost discipline to reinvest savings into strategic brand building Identify Specialty Brands with strong equity and pricing power Develop the Group s presence in high-potential markets Maintain financial discipline

8 A history of successful acquisitions Campari Group focuses its external growth efforts on spirits and the strategic thinking is driven by the desire to reach or enhance critical mass in key geographic markets. Campari has a significant track record of successful acquisitions, having executed 26 since 1995, for an overall value of more than 3 billion. * Distribution Company ** Contract beverage Packer *** Subsequently disposed 8

9 Brand Portfolio Aperitifs Campari Group has a portfolio of over 50 premium and super premium brands in the following categories Whisky Gin Vodka Soft Drink ** Tequila Rum Liqueurs / Distillates / Others Sparkling Wines * Campari Group s portfolio also includes a range of Ready to Drink and other liqueurs and distillates ** Subsequently disposed 9

10 Global Priorities CAMPARI GROUP GLOBAL PRIORITIES ARE: * Source: GfK Total Single Source Panel data - Italian market release , processed by DCM S.p.A. 10

11 2016 Figures * EBITDA e EBIT before operating adjustments in full year

12 Sustainable Campari Camparistas are the first ambassadors of our Group around the world and one of the most important assets in assuring the success of our business. Nurturing each unique talent is crucial to embrace the challenges and opportunities presented by the market. Campari Group actively promotes a culture of responsible drinking, having the deep conviction that its brands are a way to enjoy pleasurable moments, celebrations and sociable occasions. Our Group strongly condemns excessive, inappropriate or illegal consumption of alcohol. Consumer safety and worker well-being are key factors for Campari Group s business: this is why Health and Safety in the workplace and protection of the Environment are the milestones upon which our Group bases its production activities. Campari Group s focus is on providing the best products possible to our customers and consumers, and aims to reach this objective by always choosing superior, top-tier business partners. Establishing fair, transparent and loyal relationships enables our Group to offer products of the highest quality while constantly delivering a competitive advantage. In the last few years, Campari Group has grown significantly both in terms of geographical expansion and number of people employed, and it is now directly present in several countries with different social landscapes. For this reason, our group is committed to promoting excellence, entrepreneurship and equal opportunities. 12

13 Mission and Values CAMPARI GROUP AIMS TO BE THE SMALLEST BIG COMPANY IN THE SPIRITS INDUSTRY BUILDING ICONIC BRANDS AND SUPERIOR FINANCIAL RETURNS, TOGETHER WITH INSPIRED AN PASSIONATE CAMPARISTAS 13

14 PMO Journey in Campari Group 14

15 From Process to Value The PMO journey in Campari Group Provide Workshops (training and informative sessions) to emphasize the importance of Project and Portfolio Management to Camparistas Define and implement a scalable Project Management framework (processes, easy to use tools and templates) Project Portfolio Management Assessment & Design Consolidate risks, assumptions, issues and dependencies via Status Report Project Document Storage Approval Workflow Maintenance FROM PROCESS TO VALUE Process, Tools & Capabilities Project Portfolio Administration Project Portfolio Reporting Project Management Support Project Portfolio Management Practice Project Portfolio Reporting & Analysis Project Management Support Facilitate alignment of Projects and strategic goals by means of effective portfolio management Educate on Campari Way of Project and Portfolio Management by means of Workshops (training and informative sessions) Continuous improvement approach leveraging on the New Campari Group Project Management Platform (MS Project Online) Consolidate info/data gathering to facilitate the decision making Analyze Portfolio to promote insights, review key business Projects to ensure correct prioritization and alignment to overall strategy Create Dashboards, ad hoc reports and PMO Executive Reporting Project Type Innovation Renovation Fast Track Supply Chain IT Business Transformation Business Development Provide project management support to functions for selected key initiatives 15

16 PMO Achievements so far. Innovation Project Portfolio : 187 projects managed in 2016 Innovation Time to Market % vs 2015 Less Proliferation of Low GM Product with greater focus on GM accretion 16

17 Global PMO Expected Key Benefits From integrated approach of PM methodology to efficiency of Operational Functions 1 Integrated approach to Project Management methodology across Campari Group Efficient strategic resources prioritization through Project/Program/Portfolio tracking, reporting and analysis. Improved results on business objectives from completed projects, capitalizing on accomplishments and lessons learnt Benefit from staffing of highly skilled project management professionals to increasingly complex projects and programs Improved collaboration, staff productivity, integration and cost-effectiveness, delivering Projects benefits on time and within scope Enhancement of maturity for Campari Group through structured and distributed Project/Program/Portfolio Management 7 Improved efficiency of Operational Functions 17

18 PMO and Strategy Execution 18

19 The new role of PMO: greater focus on Value Creation STRATEGY COMPASS Strategic Pillars, Goals and Objectives PORTFOLIOS Portfolio Management Do the right things PROGRAMS AND PROJECTS Enable Benefits Do things right ENSURE STRATEGIC ALIGNEMENT ENSURE VALUE CREATI ON BUSINESS OPERATIONS Benefit Realization & Sustainament Business Value CUSTOMERS & MARKETS Source: Adapted from 2017 PMO Quick Tip Guide.

20 PMO Sustainability and Viability PMO is positioned at an enterprise executive-level, and has senior-executive support. PMO existence allows the other areas of the enterprise to focus attention on their functional areas of operational responsibility. PMO is assigned those formally established and commonly accepted roles and responsibilities of an independent functional organization. PMO is given recognition and acceptance as an integral part of enterprise s organizational structure. PMO leads establishing and institutionalizing Project Management methodology best practices enterprise-wide. PMO has cross-functional organizational support from the enterprise s operations organizations Source: PMO Framework and PMO Models For Project Business Management, Bolles & Hubbard

21 PMO Key Success Factors To create a culture that embraces project management and to increase the business value they bring to the organization, PMOs need to have clear direction, governance and support. They must be 1) staffed with skilled personnel 2) have access to top management. Hiring of people with the necessary business skills or leadership talent to drive strategy implementation is a very high priority at their firms Source: Economist Intelligence Unit. Why Good Strategies Fail: Lessons for the C-Suite

22 High Performers PMO are four times more likely than Low Performers to be rated better than their peers on strategy execution.. With the initiative roadmaps having been rigor-tested, the PMO well positioned, its role clearly understood, and the right processes established for gauging progress against upcoming milestones and objectives, strategically aligned PMOs provide the means for the business managers tasked with delivery to provide senior executives the information they need and only that information with enough time to make course corrections and ensure that the initiative gets delivered in terms of both impact and timing Source: The Boston Consulting Group. Strategic Initiative Management: The PMO Imperative

23 Enterprise wide PMO delivers more Value Overall, a PMO with a broader business-wide responsibility such as an Enterprise-wide PMO (EPMO) is closest to delivering business value to the organization because it is more likely to routinely help in aligning project outcomes to strategic priorities Source: The impact of PMO on strategy PMI Pulse of the Profession

24 PMO value creation in Strategic Initiatives Management: Lessons Learned 24

25 Communication Strategy Clearly communicate organizational strategy, choices and goals to stakeholders, and guide leaders by means of Portfolio Management and Intake Processes. 25

26 SETTING THE DIRECTION PILLAR GOAL OBJECTIVE PRIORITY OPERA- TIONAL KPI STRATEGIC COMPASS ECONOMIC KPI What provides strength and support the Vision? What is the broad primary outcome? What our organiza tion must achieve to make its strategy succeed? How do we enable the project prioriti sation? How do we measure the achieve ment of the strategic objective? How do we measure the achieve ment of the strategic goal? 26

27 Setting Goals Support, clarify and drive processes for capturing departmental goals, and for validating and assessing proposed initiatives against the stated strategy accordingly 27

28 Planning Facilitate the necessary assessments, planning and integration of related initiatives and programs formed to deliver the required outcomes - whether it concerns change or new product and services 28

29 Benchmarking Develop common goal-setting and benchmarking models for your business initiatives 29

30 Scenario Modeling Collaborate with business leaders and finance for strategic portfolio scenario modeling and planning, as well as long-range planning and develop related business cases 30

31 Creating business roadmaps Assist your Portfolio business units with high level roadmaps to illustrate key planned activities and benefits, and leverage them for all leadership 31

32 Benefit Realization Roadmap - High Level 3 Year Plan Q Q4 Q1 Q2 Q3 Q4 Illustrative Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Owner: N. Surname + Strategic Goal A - KPI Ident./Prep Benefit Realization Closure Benefit Sustainament Benefit Owner: D.Chang New Cloud Service Platform Reduce Time to Market 40% POC, Source New Platform SET BASELINE Configuration Customer Care Training Migrate System A + Launch System C Migrate System b 40% 0,5 M Decom Old Benefit Sustainament Product Launch and Maintenaince Benefits Owner: A. Smith Reduce Cost of Invoicing - Reduce # Formats by 60% (1M ) Develop XYZ Migrate XYZ to CRM CRM feed + 30% 60% Develop Training, Comms Decom XYZ Update Revenu Controls 1M Benefit Sustainament Savings Owner: S. Nielsen Customer Service Staffing Increase Region 3 Customer Satisfaction By 1.3 Root Cause, Plan + Migrate XYZ to CRM Decom XYZ Milestone #1 Milestone #2 + Milestone Ident./Prep Benefit Realization Closure Benefit Sustainament Source: 2017 PMO Quick Tip Guide.

33 Maintaining alignment Continuously review the portfolios and confirm that you "do the right things" in line with current strategy 33

34 Reviewing opportunities Organize regular opportunity reviews to consistently guide the organization to expect, anticipate and embrace change and opportunity. Grow capability to identify and integrate change to drive organizational agility 34

35 Leading change Lead change initiatives, develop methods by productizing processes and tools, more broadly across the organization. to create more value together 35

36 You have to learn the rules of the game, and then play better than anyone else Albert Einstein. 36

37 FOR MORE INFO, PLEASE CONTACT: Giorgio Difronzo camparigroup.com