Best Managed Lab Experience 2018 Imperial Oil Branded Reseller Leadership Conference. May 2, 2018

Transcription

1 Best Managed Lab Experience 2018 Imperial Oil Branded Reseller Leadership Conference May 2, 2018

2 What is the Best Managed companies program? A unique program recognized locally and globally Focuses on privately owned and managed companies Recognizes overall business performance and sustained growth Recognizes the efforts of the entire organization Measures more than financial performance The Best Managed program is currently operating in seven countries and planned expansion to more than 20 by Upcoming launches are taking place in Turkey, Germany, China and the Nordics with deep interest across the network including USA, Japan, Australia, France, Central Europe and more. Best Managed: Coach Program 2

3 EVALUATION FRAMEWORK: What constitutes a Best Managed company?

4 The Four Pillars of a Best Managed company Strategy Capability Commitment Financial Best Managed: Coach Program 4

5 The Four Pillars of a Best Managed company Strategy Capability Commitment Financial Strong sense of direction with a clear focus on the customer and how they will compete to win A robust process to renew and evolve the strategy on a periodic basis Clear communication and measures to bring the team along on the journey Strong execution focus A commitment to innovation A focus on productivity Strong implementation of systems and processes as a means of enhancing execution Leadership development, thoughtful succession, and a commitment to constant upskilling are hallmarks Deep attention to building culture, creating alignment, and maintaining commitment to the vision Strong reporting of what s relevant Good risk management and controls in place A healthy balance sheet Excellent stakeholder relations Top quartile financial performance Best Managed: Coach Program 5

6 Strategy Summary Here s what we heard Strategy Strategy Key Elements: Strategy Process for employees to speak up and provide input. Asking the right questions to get good feedback. Obtain customer feedback and use key suppliers such as Imperial Oil for input ask questions like what can we do better, what do you see competitors doing that we should do, etc. Being honest with yourself and with your teams on the as is Having clear vision, purpose, and mission Document the plans and review externally. Learn from the past strategies. Best Managed: Coach Program 6

7 Strategy Summary Here s what we heard (continued) Strategy Other Strategy Knowing your market: Where can we fit in? Market forces: evolving regulatory framework what ifs, what are the risks? Visual presentations As is vs To Be Use tools such as Customer Relationship Management (CRM) Sales Pipeline. Best Managed: Coach Program 7

8 Strategy Summary Here s what we heard (continued) Strategy Strategy Strategy Communication: Use town halls, line up meetings, huddles, tailgate meetings newsletters etc. to communicate plans. How to communicate to each department, individual, on the plans and their part in it. Use scorecards and metrics to measure progress on plans How do you evaluate strategy? Family business family communication (family vs. business relationship). Strategy Adaptability: Focus on new, adapting, and changes. Search and look outside industry for ideas. Understand the risks, mitigation strategies and execute. Use of intranet to track who sees and reinforce. Consider with periodic reflection on how we are doing and if any adjustments needed to be pointed. Set the goals: reset them, break down to activities. Best Managed: Coach Program 8

9 Best practices: Strategy Most Best Managed companies: Understand and have articulated the company s purpose, and have defined mission and vision to support Have a clearly defined, structured process to create / refresh strategy At least annually use off-site workshops to create priorities Best in class conducts market research (customer feedback) and utilizes supplier and employee insights to help drive annual priority setting Engage next generation leaders in strategy development Have a defined strategy that is: Centered around the company s core strengths Highly customer focused Iterative in nature Measureable over a certain period of time Significantly more using an advisory board to broaden horizons and assist in developing the company s strategy Best Managed Companies Program - Best Practices 9

10 Best practices: Strategy (continued) Most Best Managed companies: To execute their strategy, Best Managed companies have: Financial capability (e.g., capital, cash management, etc.) KPIs (weekly / monthly milestones) to measure strategic progress Extensive industry knowledge Conducted sensitivity analysis and are prepared for the what if scenarios Entrepreneurial leadership that is willing to take risk Built a team that is very eager to drive business forward Strong program management structures that drive key initiatives to execution each year Overall strategy cascades through business units Leadership at Best Managed companies have a high level of interaction with the entire company, as they: Consistently communicate their strategy in a clear and concise way Communicate using a variety of methods, depending on company size (e.g., town halls, newsletters, daily / weekly huddles, quarterly meetings, off-site events, dashboard reports, hot stove meetings, one page strategy execution plan, intranet, etc.) Best Managed companies are often described as most focused Best Managed Companies Program - Best Practices 10

11 Capability Summary Here s what we heard Capability Capability Innovation: Premium products offered to customers (new diesel offering). Simplify order to cash process (order placement and associated backend support). Customer experience items such as setting own pin, loyalty programs and transparency around product usage / delivery timing. Security features on online platforms used. Social media: how it is being used to monitor operations, share information and evaluate customer experience. Structuring contracts in a manner that aligns with how customers see value. Strategy Execution: Using Key Performance Indicators (KPI) to measure against strategy including metrics around volume, financial results and considering customer experience. Financial / non-financial metrics. Best Managed: Coach Program 11

12 Capability Summary Here s what we heard (continued) Capability Capability Developing Capabilities: Through infrastructure - a new computer system, updating of existing physical infrastructure, expanded distribution network and coordination of logistics on this network. Customer experience - engaging with customers to help them maximize insights from information made available, improving timeliness and availability of data to customers, providing online access and features such as automatic delivery Investing in employees - training on best practices, developing a culture of timely and constructive feedback. Automation - looking for and executing on opportunities to reduce manual tasks through automation to allow for more focus on the customer and the bottom line. Best Managed: Coach Program 12

13 Capability Summary Here s what we heard (continued) Capability Capability Model and Structure: Scale of business - utilizing the scale that the network has to deliver competitive results for customers. Examining the organizational chart considering what skills are needed by role and beginning the process of identifying who has those skill sets. Tweaking and evolving attracting talent using social media, platforms such as indeed and modifying how interviews are done to attract and identify candidates with the skills needed for where the business is going. Altering how the model of how the business interacts and transacts with customers taking order placement online, providing data access via portal, improved transparency through self serve options and flexibility in how contracts are structured so clients see value that is delivered. Best Managed: Coach Program 13

14 Best practices: Capability Most Best Managed companies: Place significant emphasis on the leaders and employees they hire. They recognize the correlation between having the right people on the bus and their ability to execute on their strategy. Their attraction and retention strategy includes: Hiring people who have a positive attitude Thoughtful about having the right people / leadership to achieve the strategy Disproportionately invest in L&G and leadership development Encouraging promotions from within the company by developing individual specific career paths to inject employee loyalty Have robust focus on first class ability to execute using systems / processes / technology to compete: Have measures to demonstrate performance Measure customer satisfaction Truly get things done. A culture of executing on strategy Have an integrated / consolidated IT platform that provides competitive advantage Through focus have developed operational excellence for core markets Best Managed companies are focused on investing in innovation to: Introduce progressive methodologies of delivering value relative to their competitors within their industry Better connect with their customer Emphasize productivity (doing more with less) Have a culture where they allow their employees to challenge the status quo and create new innovative ideas through their learnings Have a system of continuous feedback Best Managed Companies Program - Best Practices 14

15 Best practices: Capability (continued) Most Best Managed companies: Are pragmatic about where, how, and when investments are made Are open to forming strategic partnerships, acquiring new companies, or engaging in joint ventures to ensure they have access to critical capabilities when required Best Managed Companies Program - Best Practices 15

16 Commitment Summary Here s what we heard Commitment Commitment Culture Defined: Understanding of what the company is asking people to do. Flexibility when working with younger generations technology, deadline driven, embrace eagerness. Generational differences. Treating the family and non-family members equally. Not pushing kids into involving with the business. Investment in Leadership: Encouragement to take risks empowerment. Communication and brainstorming with the group. Focus on small details. Hire third party consultant to help define mission/vision and guideline to follow rules. Live by mission or values and evaluate decisions against them. Best Managed: Coach Program 16

17 Commitment Summary Here s what we heard (continued) Commitment Commitment Employee Retention: Make people feel part of decisions. Decisions to let go of employees when needed. Having clarity of skill sets required for new roles and training to be successful. Perform self-assessments. Provide internal coaching positive, negative, constructive. Testing people s commitments to goals. Performance bonuses. Complete core values extensive training as part of onboarding. Coaching model employee drives solution and has accountability/ownership. Solutioning team/accountability. Having performance improvement plans and goal setting. Understanding how performance leads to success. Celebrate successes. Communication clarity of role expectations. Mentoring programs (formal and informal). Best Managed: Coach Program 17

18 Commitment Summary Here s what we heard (continued) Commitment Commitment Succession/Exit plan: Cross-training. Succession contingency plans: Throughout Imperial. Find online courses. Kellogg offsite family transition. Offer severance pay for people to leave company. Best Managed: Coach Program 18

19 Best practices: Commitment Most Best Managed companies: Understand and have articulated the company s purpose, and have defined mission and vision to support Strong ethical principles Tone from the top Commitment to do the right things Invest in their communities and in corporate and social responsibility Focus on building a one-team culture by: Delegating responsibility to ensure employees feel empowered and have ownership to make decisions and solve a clear business issue autonomously Having a relatively flat structure Hosting social events Using employee holistic development programs Recognizing and celebrating team and individual success Encouraging internal collaboration by creating environments where employees can collaborate easily Ensure the performance management system is very well communicated and actively reinforced to promote desired behaviours; Employees are measured against their relevant KPIs (output focused rather than input focused) and are evaluated against their peers through regular performance reviews Best Managed Companies Program - Best Practices 19

20 Best practices: Commitment (continued) Most Best Managed companies: Provide a holistic view of compensation Monetary compensation is usually in the top quartile and is aligned to the strategy and performance Non-Monetary benefits Invest in their current leaders, but also establish continuity by ensuring the next generation is trained and equipped with the right tools and knowledge to succeed in a new role Leaders are usually both young and experienced to ensure long term stability and succession young leadership gives clients confidence in the continuity of the relationship Brand recognition, industry validation (e.g., awards and titles) and community involvement (e.g., CSR initiatives) are all important as they: Instill loyalty in current employees, driving employee retention which leads to maintaining continuity and positive relationships with clients Attract strong top talent who want to work at successful, well-known companies Focus on building engagement and measure impact of initiatives Best Managed Companies Program - Best Practices 20

21 Financial Summary Here s what we heard Financial Financial Key Metrics: Reporting within financial area: Return on Investment (ROI) over life cycle of investment cash flow. Control in expense, revenue, and margins drill down Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA.) More transparency in expenses (i.e. revenue and margins can measure 95% and want to get there with costs.) Daily information on debt service ratio and covenants. All levels of understanding the impact and why it matters on KPI dashboard. Accountable and own at function and treat like own business. More transparency in Purchase Order (PO) system: accrual process and vendor relations. Provide weekly Cash Flow: budget to Cash Flow, understand and analyze weekly results. Best Managed: Coach Program 21

22 Financial Summary Here s what we heard (continued) Financial Financial Driving Performance through dialogue: Train people to understand what they are responsible for. Timely financial information to help with making decisions. Forecast strategy: day-to-day performance. Start discussion with the group: feedback and dialogue. Having expenses meetings and understanding who is involved, understand plans and investments. Collaborate with collections and sales: observations to help with information in their interactions principle. Best Managed: Coach Program 22

23 Financial Summary Here s what we heard (continued) Financial Financial Risk Management & other: Challenge in available data old system and excel. More work and less employees. Too much focus on Return on Capital. Transparency in control tools, segregation of duties. Data within the group s control: expenses analysis, Accounts Receivable collection, product margin & volume (groupings & breakdowns.) Snapshot 10 day version and directional not necessarily perfect. Best Managed: Coach Program 23

24 Financial Summary Here s what we heard (continued) Financial Financial Growth Plans: Build relationship with stakeholder: Banker, Insurance, Legal, Supplier. Use of experts such as: tax experts, relationship with business partners, members on Board of Directors (BOD), Leverage stakeholders and relationships for great access to capital. Private and risk needed vs transparency information for what is in their control tools for decision making. Meetings between Accounting and Operational Teams to bring in each other s perspectives and impact objectives. More focus on revenues versus only costs. Accountability of data and level in timely manner. Tie financial to recognition. Visualize data message in a way everyone can understand. Showing and illustrating impacts, even to customers. Transparency with milestones, current results, trends and directions. Analyze the daily and weekly as margin volumes are sensitive. Report with insight: comments, trends, and what is being booked. Forecasts and insights not just historical. Best Managed: Coach Program 24

25 Best practices: Financial Most Best Managed companies: Have very strong financial reporting systems that produce accurate and relevant reports on a timely basis level of sophistication differs between companies depending on stage of growth Have very mature systems to give managers access to the data they need to run the business Use key customized metrics to drive behaviour Employees are aware of what drives company revenue because communication throughout the organization is strong, clear, and consistent Maintain strong balance sheets Maintain strong relationships with all their stakeholder groups to ensure financial stability Have an appropriate capital strategy to support their growth plans Best Managed Companies Program - Best Practices 25

26 For more on the Canada s Best Managed Companies program: Visit bestmanagedcompanies.ca bestmanagedcompanies@deloitte.ca #BestManaged