Operating Systems and Standard Work for Leaders in Matrix Business Organizations

Transcription

1 Operating Systems and Standard Work for Leaders in Matrix Business Organizations Paul Nestor Head of Operational Excellence, Damco B.V. OPEX Global Summit Amsterdam April 20 th 2017

2 Damco is part of the Maersk Group MAERSK GROUP HQ in Denmark revenue USD 40 billion 88,000 employees presence in 135 countries TRANSPORT & LOGISTICS ENERGY Maersk Line Damco - Logistics APM Terminals Port terminal operations Svitzer Towage and Salvage Maersk Container Industry Maersk Tankers Maersk Drilling Maersk Oil Maersk Supply Service 2

3 Damco key facts Customers Customers 10,000+ Key industries served Type of customers Customer loyalty Retail (incl. fresh), lifestyle, mining, chemicals, industrial, technology, government and defense, aid and relief, FMCG Range from large multinational companies to small independent importers/exporters Top 25 customers have been with us on average for 10+ years Offices Locations 300+ Warehouse operations 1.5 million m 2 Global player Presence in about 100 countries Employees Employees 11,000+ CEO Klaus Rud Sejling Key Figures (2015) Ocean freight & supply chain management in TEU million 2.9 Airfreight in tonnes 180,000+ Net revenue in USD billion

4 We serve a wide range of customers Retail Lifestyle Technology Industrial Chemicals Mining Aid & Relief Government & Defence 4

5 Our solutions; customized to client needs Freight Forwarding Customs Brokerage Warehousing & Distribution Supply Chain Visibility & Control Supply Chain Management Supply Chain Design & Optimization 5

6 OPEX has been an integral part of DAMCO strategy past 4 years Build collaborative identity Embed operational excellence Transform finance operating model One global freight forwarding IT system Lead transformational change Embed selling integrated solutions Expand geographical footprint Consolidate 300 operations units into 47 Sales office from 600 to 300 6

7 OPEX deployments were structured along 5 lenses and impact is achieved across 3 levers Lean Management approach addresses 5 areas starting with the customer Impact levers Process efficiency and effectiveness Mindsets and behavior Delivering at lowest cost and lead time while securing position and building efficient processes to grow sales Working together to put the customer at the heart of the business Voice of the Customer Performance management Actively monitor performance at individual and team level to identify opportunities for improvements Organization and skills Organization leveraging span of control, clear roles and responsibilities and capability building Three key levers each impact productivity increase by 1/3 Process Improvement Efficient processes Capacity management Efficient planning Building skills, capabilities and motivation Efficient people 7

8 LEAN management tools implemented were the driver for performance improvements Standard work Standard ways of completing work all team members have access to best practices and know what is expected Process confirmations (sit-ins) Value streams Management systems Value streams Process confirmations of using standard work procedures Beliefs and behaviors Visual performance boards Daily 15 minutes huddles are used to discuss performance vs. goals, raise problems to be addressed, and plan for the day Coaching Weekly coaching sessions focus on how team members and managers are behaving and working Skills matrix A skills matrix indicates each team member s mastery of key skill areas and identifies training requirement Root cause PS process A simple problem solving process helps teams remember to define the problem and seek root causes DILO/WILO DILO/WILOs help to identify problems that pull leaders away from regular work with teams Recognition for solutions Recognizing solutions empowers the frontline and is one way to focus on a steady pace of solutions rather than long lists of problems 8

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12 A structured Operating System is a key element of the Damco Way of Working Current State High focus on performance management No alignment between regions and functions multiple structures co-exist Different formats of data and performance management meetings No clarity on how direction setting cascades down to shop floor Reactive rather than proactive nature 12

13 A structured Operating System is a key element of the Damco Way of Working Future State Better balance between backward and forward looking One single structure for all levels Standard meeting specifications and single source of data one version of the truth One way of working across Damco Transparency on direction setting from top to bottom 13

14 DOS consists of a standardized package containing a structure, meeting details and tools Standard processes Fixed structure and cadence for all functions Structured direction setting, cascaded hierachical and functional Standard Data & Tools Standard data tool and templates to be used to facilitate the dialogue and log actions One version of the truth Execution is done via monthly and weekly meeting cycles within and accross functions Feedback loop installed for bottom up alignment Standard Meetings DOS structure leads into weekly, monthly and quarterly standard calanders on all levels Standard meeting specifications, including purpose, required inputs, agenda and action oriented output to cascade further 14

15 Moving focus from backward looking and explaining numbers to future direction setting BACKWARD LOOKING (25%) FORWARD LOOKING (75%) PERFORMANCE MANAGEMENT FUTURE DIRECTION SETTING Identify risks to next month RoFo delivery and define clear, time bound and actionable countermeasures Create oversight of underperforming elements know where action is needed Performance Management on scorecard elements Thorough preparation to be able to clarify all the numbers Manage by exception Detailed analysis of all individual numbers Joint phrasing of key actions based on underperforming elements, pipeline status and scorecard deviations Translate CEN priorities into local short term actions and circulate feedback Week over week follow up on previously set actions and priorities Defining long-term strategic goals 15

16 Leader behaviors determine more than 70% of the success of DOS what defines good behavior? Meeting effectiveness Don t discuss numbers, explaining the obvious, discuss the So-What Focusing on the future and being forward looking Communication and follow-up What gets followed up gets done Holding high quality performance dialogues Agreeing SMART actions Using Visual Management Agenda structured around specific priorities Good communication and facilitation skills People matter activate the entire team Commitment to action 16

17 We strive to continuously improve DOS leaders help us ensure DOS continues to fit the way we work Employees help improve DOS Our governance set-up allows frontline personnel to introduce change requests and best practice to improve DOS: - In Regions, contact your Regional Focal - In Area s, contact your Area Focal Minor to medium changes or those largely concerning one function are decided by the frontline business owner Changes that are cross-functional are decided by Global Governance via CEN FIN Central mechanisms to improve DOS We are working hard to keep improving DOS: - We continuously integrate frontline feedback and best practice via regular change request cycles - Leadership input is collected via surveys - Key customer feedback sought via yearly (Q3) interview - Regular Gemba s are conducted to monitor implementation Ensuring DOS remains relevant is our shared responsibility! 17

18 A DOS support Community to embed and sustain the change is critical Anchoring of DOS in the organization through global governance, a project team and ultimately the functional managers and meeting owners Supported through Functional, Regional and Area Focals, enabling deployment and improvement of DOS. Project Sponsor (CEO) Project Management (HQ CI) Functional Focal (HQ) Functional Managers and Meeting owners Regional Focal (REGION CI) Global Governance (HQ Finance) Area Focal (AREA CI) 18

19 Community will drive DOS through standard meeting flows & cascade Meeting Flows dictate frequency and timings based on data availability and participants, having a functional and geographical cascading 19

20 DOS provides benefits to the bottom line and our daily work One way of working across Damco Improved interaction across functions and foundation for a forward looking and proactive approach to problem solving Transparency in decision processes, performance management and related data Clear direction setting, one version of the truth facilitates actionable outcomes One team achieving Damco s performance targets A common structure that facilitates geographical mobility as our business units work in the same way Ability to adapt to market changes rapidly Act on timely and reliable standard data 20

21 Thank you Paul Nestor Head of Operational Excellence