Parker Hannifin Corporation Richard Clark Director Corp. Credit

Transcription

1 Driving Business Process Improvements With High Performance Teams to Support the Company s WIN Strategy Parker Hannifin Corporation Richard Clark Director Corp. Credit 1

2 . Parker Hannifin Corporation Parker can be found on and around everything that moves. Aerospace Climate Control Electromechanical Filtration Oil & Gas Handling Hydraulics Parker manufactures highly engineered components and systems that facilitate motion and the controlled flow of liquids and gasses for a wide variety of global markets. Pneumatics Process Control Sealing & Shielding 2

3 Solving the World s Greatest Engineering Challenges Our focus on solving some of the world s greatest engineering challenges sparks our passion for innovation and secures future growth. Energy Defense Food Life Sciences Water Infrastructure Environment Transportation Parker s WIN Strategy Parker s Win Strategy is a disciplined and consistent business strategy that has helped transform the company and improve operations worldwide since Empowered employees represent the foundation of our strategy and the key to our success. 3

4 Empowerment EMPOWERED EMPLOYEES decide, within agreedupon boundaries, the best course of action to resolve customer issues and to improve the business. EMPOWERING LEADERS create an environment that encourages employees to think creatively, learn continuously, and deliver results that support all stakeholders. EMPOWERED EMPLOYEES execute the companies Strategy by taking responsibility and accepting accountability for results and support a culture of respect for the contribution of every person. Employee Needs: Things People Want Most at Work Meaningful progress in their work Feel valued for their contribution Opportunities for growth Employee Needs Feel trusted and empowered Sense of team and belonging Useful and regular feedback 4

5 Passion and Persistence Persistent predicts success 2X IQ Source: Penn Passionate and engaged employees 2X more likely to take on challenge Source: Deloitte Passionate and engaged employees 2X social capital Source: Deloitte None of us is as smart as all of us. That's good, because the problems we face are too complex to be solved by any one person or any one discipline. Warren Bennis 5

6 Business Case Team based organizations excel on performance dimensions: financial and behavioral Empowerment and Results Global Survey results shows that Return on Sales / Profitability are highest at companies that scored in the upper quartile for Employee Empowerment Empowered Employees 6

7 Video Clip Engaged and Empowered Employees The Empowerment Continuum Management Control Shared Control I II III IV Management Decides, Then Informs Employees Management Gets Employee Input Before Deciding Employees Decide and Recommend Employees Decide and Act Telling Selling Participating Delegating Directing Coaching Facilitating Liaising Management is accountable and responsible Management is in control Employees are told about decisions Employees ideas harnessed as input to decisions Employees are consulted and have input into decisions Accountabilities are clearly shared Employees must consult management before acting to get approval Employees are accountable and responsible Employees can set direction and take action without approvals (within boundaries) Ref: Facilitating With Ease, Ingrid Bens 7

8 Focus on the problems, not people Maintain a regular and consistent flow Be open to ideas and suggestions 8

9 Consensus decision making - - not everyone has to agree, but everyone must support Engage the entire team in analyzing the situation and discuss openly Differentiate facts and data from opinion and antidotes Before the meeting determine purpose and desired outcomes, plan, prepare and distribute an agenda, materials and equipment Have established and effective ground rules Wrap-up by summarizing results, decisions and conclusions, and end on time 9

10 Be descriptive rather than evaluative Focus on what can be changed Be specific instead of general - - facts, not opinions - - demonstrate care with the intent of helping Conflict is inevitable, it s a natural by-product of any decision making effort Conflict can be destructive or productive - - use a process to resolve: Clarify the point by analyzing the situation Look at options and consider alternative solutions Settle on a solution that everyone can support 10

11 High Performance Team Improvement Board Corporate Headquarters Goal Implement a sales tax solution to integrate sales tax certificates with the order management system. Sales Tax Automation Solution Implemented an integrated solution to read the certificates on file to flag the order as taxable or not. Result Significant reduction in invoice errors related to tax (75%) and reduction in state sales tax fines. 11

12 Goal Reduce past due disputes by 25% from a year over year base line; Code 100% of all disputes within 30 days of debit. Shared Services Dispute Management Solution Developed work flows that send disputed items to process owner, to include regular meetings and more focus on root cause. Dispute coding pooled and completed by team, not individual collector. Result Past due disputes reduced by 50%; non-coded disputes reduced by 75%. Improve Order Acknowledgment Process for Major Customers Goal Improve to 100% compliance, Tier 1 customer order acknowledgment process. Solution Cross functional team between credit, IT and customer service created internal standards and set-up controls process. Result Order acknowledgment errors reduced by 75% within 6 mos. 12

13 Goal Major European customer has average past due invoices related to EDI and order process claims in excess of $9.0 mil. Reduce past dues by 50% in 12 mos. Customer EDI Process Issues Solution Correct and eliminate EDI invoice and order acknowledgement issues; put in place consistent controls engage the customer cross functional team effort. Result Reduced past dues to $2.0 mil in 12 mos. Reduced penalties by $500k. Root cause issues resolved with new invoices submitted clean - controls in place. 13