Supplier Development. Bonanza or Bust?
|
|
- Archibald Perkins
- 6 years ago
- Views:
Transcription
1 Supplier Development Bonanza or Bust?
2 The Boston Consulting Group (BCG) is a global management consulting firm and the world s leading advisor on business strategy. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 71 offices in 41 countries. For more information, please visit
3 Supplier Development Bonanza or Bust? Andreas Gocke, Nikolaus Lang, David Lee, Stefan Mauerer, and Arvind Pandey March 2011
4 AT A GLANCE Sourcing from low-cost countries can generate big savings, but subpar suppliers keep many industries from gaining the full benefits. For instance, sectors with highly complex products or stringent safety requirements often find that the risks of using poor-quality inputs far outweigh the potential cost savings. A targeted supplier-development program may be the solution. Why Bother? Done right, a focused supplier-development program can deliver results in as little as six months and provide an enormous return on investment. Guidelines for Success Seven guidelines can help ensure success: target a small number of suppliers; focus efforts on what matters most; align the organization; choose the right development approach; engage and motivate target suppliers; develop a progress road map; and measure and track results.
5 Sourcing from best-cost countries can generate enormous savings, but not all industries are gaining the full benefits. Sectors with highly complex products or stringent safety requirements, for instance, are finding that most suppliers in developing economies fall far short of the quality standards and process excellence of suppliers in the developed world and that the risks of using substandard inputs far outweigh any potential cost savings. Supplier shortcomings are risky for companies in many industries. For example, pharmaceutical companies must ensure the safety of their products ingredients and an uninterrupted supply of life-saving drugs. Toy companies must make sure that their products are safe for infants and children. Automakers need a wide range of inputs from simple pieces of tin to gearboxes with dozens of different parts and must adhere to tight schedules, safety standards, and emission controls. Food and chemical companies need to know that their ingredients are pure and that formulas are strictly adhered to. A problem with just one of a product s parts or ingredients, which can number in the thousands, can lead to recalls, public relations nightmares, and brand erosion all of which extract an extremely high cost. Recent headlines underline this ongoing risk. As a result, although many foreign companies have set up plants in China, India, and other rapidly developing economies, many of those with rigorous engineering or safety needs are still sourcing very little from local suppliers usually less than 1 percent of their worldwide inputs despite an extensive push over the years to buy local. The majority of even best-practice companies source only 3 to 5 percent of their worldwide inputs from low-cost countries. In addition, a large share of their purchases comes from foreign suppliers with local operations but high-cost overhead structures instead of from truly indigenous suppliers with generally lower prices. As a result, the actual cost savings are minimal or perhaps even nonexistent. This reluctance to purchase from local suppliers is due partly to internal resistance. Engineers and R&D groups often have a strong bias toward suppliers that adhere to international standards, even though the cost may be higher. But the shortcomings of the local suppliers themselves are the biggest obstacle. Typical problems include parts and components that fail to meet strict specifications in areas such as precision sizing, corrosion protection, or rigidity, and an inability to deliver on time, which wreaks havoc with tight R&D and production schedules. So OEMs continue to buy from suppliers from developed countries and to miss out on significant cost savings. The Boston Consulting Group 3
6 But as global competition heats up, established companies will need to fight harder to maintain market share. Emerging challengers from rapidly developing economies and other low-cost competitors are creating new buyer expectations with ultracheap products. Examples include Tata s $2,500 car and Vodafone s $16 cellular phone. Producers in both developed and developing countries must squeeze out costs to meet the necessary price points. The solution may be to work with suppliers in emerging economies to improve their capabilities so that they meet international standards. Why Bother? For most companies, the idea of developing local suppliers is a daunting one. A key concern is that once trained, these suppliers will use their new skills to work with competitors, which will benefit without having made any investment. Moreover, many companies believe they lack the skills and resources needed for supplier development, preferring instead to use their engineering capacity for R&D or quality management within their own plants. Finally, from a practical standpoint, many companies see development programs as too time-consuming and costly to undertake, and the results too difficult to evaluate or too long-term, especially if their focus is on meeting quarterly earnings targets. Significant and measurable benefits can be realized within as little as half a year by training suppliers to meet specific performance targets. BCG s experience shows that significant and measurable benefits can be realized within as little as half a year by training suppliers to meet specific performance targets. Improvement potential is often considerable and can lead not only to quality improvements but also to cost savings and the related potential for price reductions. For example, at the Chinese supplier of one worldwide toy manufacturer, a shop-floor analysis revealed a series of shortcomings: operators had unbalanced workloads and were often absent from their stations; workstations were poorly equipped; operations were often idle during production runs; some inventory was produced offline; and materials were poorly managed. A focused supplierdevelopment program led to productivity improvements of about 25 to 30 percent. Benefits such as these extend beyond quality improvements or simple reductions in direct costs. Suppliers with developed capabilities are more reliable and timely in their deliveries, so scheduling and project management are easier and inventorycarrying costs can be reduced. For example, we worked with a supplier of packaging materials to determine the optimum order quantity to hold in inventory on the basis of variables such as production costs and demand levels. Once implemented, our economic order quantity (EOQ) calculations delivered savings of 0.9 million to 1.2 million annually and reduced inventory by 33 percent. Local suppliers can also be a source of innovations and cost-saving ideas, so building closer relationships can be well worth the effort. For instance, a biopharmaceutical company set up a supplier workshop to generate a series of ideas for managing the supply chain more effectively. One idea was to make forecasts more accurate in order to improve production management and predictability. This change resulted in cost savings of more than 19 percent. A supplier to a turbine producer recommended changing how thermal shields were mounted on a steam turbine, which simplified assembly and reduced production lead-time, variability, and rework. For 4 Supplier Development
7 a one-time investment of about 45,000, the company was able to reduce costs by almost 300,000 per year. Another supplier recommended changes to the turbine s steel structure, which delivered savings of 3 million by reducing size, weight, and materials needed. Without a supplier development program, companies often run into a frustrating cycle: supplier shortcomings lead to production interruptions, workarounds, or costly rush orders from alternative suppliers, followed by a flurry of firefighting to fix the problem but no attempt to address the underlying need for supplier training and development, which would prevent the recurrence of problems. According to the China-based chief procurement officer of one automotive company, this firefighting took up two-thirds of the team s time every day an investment of effort and cost far greater than what a supplier development program would have involved. Many supplier problems can be fixed with a one-time training effort. For example, one supplier had ongoing problems with capacity constraints and manufacturing backlogs, which caused frequent line stops. By training the supplier to analyze and correct bottlenecks, the company solved the problem. Two half-day workshops conducted by its production planning experts were sufficient. To achieve the quality standards of suppliers in developed markets, suppliers in emerging markets need processes adapted to their own capabilities which is why supplier development is often inevitable in emerging markets. Guidelines for Success Many companies make the mistake of transferring their home-country quality systems to their offshore production facilities, assuming the formula will deliver the same level of quality. But different quality processes are often required because of differences in suppliers capabilities. For example, companies may have little or no need to check the quality of incoming parts at their European, U.S., or Japanese operations if they buy from suppliers in developed countries. In developing countries, however, that same system of minimal checking would be very risky, given the relatively high defect rates of local suppliers parts. While suppliers in developed markets may have the skills and insights to improve their own operations, the same may not be true of suppliers in emerging markets. Because of these differences, achieving the quality standards of suppliers in developed markets requires different processes that have been adapted to the capabilities of local suppliers. For these reasons, supplier development is often inevitable in emerging markets. Although product quality issues receive the most media attention, supplier development programs should target other areas as well. These include process quality, R&D, tooling, logistics, capacity management, cost reduction, and project management. Capabilities in these areas are uncommon in most developing countries, even though they are the norm in industrialized nations. Strategic decisions about how to approach a supplier development program are best made centrally to ensure consistency and gain alignment. Centralized decisions and activities typically include selecting suppliers for development; choosing the type of development program, training approach, and tools to be used; monitoring performance; and communicating to suppliers, service providers, and the media. But tactical execution should be decentralized so that local branches can take ownership of the development program and adjust it as needed in consideration of local differences. The Boston Consulting Group 5
8 In our experience with global manufacturers, we have identified seven guidelines for success. Target a small number of suppliers. Not every supplier should be developed, so it s important to choose carefully, using well-established criteria. The best choices are key suppliers whose inputs are critical to the quality of the finished product and that provide a high volume of inputs, sell very little to the competition, have a large need for development, and don t have the ability to help themselves. Suppliers that do not meet these criteria or will soon be phased out should be eliminated from the candidate pool. Don't try to fix everything at once. Instead, focus on a supplier's critical problems in the areas of cost, quality, or timeliness. Focus efforts on what matters most. Don t try to fix everything at once. Instead, focus on a supplier s critical problems in the areas of cost, quality, or timeliness. For instance, one supplier of exhaust systems took too long to fix sizing problems. A development team observed the supplier s engineers in action and discovered that the remote location and a lack of manpower at the supplier s maintenance and tool shops were the root causes of the problem. A new plant layout helped improve turnaround times. Most companies have no need to hire outside resources to evaluate suppliers and determine areas for development. Representatives from the quality, R&D, and purchasing functions typically have the necessary capabilities. To build momentum and credibility, look for quick wins that will deliver immediate cost savings. To increase the odds of a positive outcome, assign people with the needed skills to the development team. Focus on parts-related experts (such as suspension specialists), but use topic experts for non-parts-related areas such as logistics or capacity management. Align the organization. The best place for the supplier development group to live is usually within purchasing, not within the quality function. There are several reasons for this. First, purchasing has more power to motivate suppliers to improve their performance. The threat of losing business is usually a convincing incentive. Second, purchasing must work closely with supplier development teams to ensure that cost savings from supplier performance improvements are translated into price concessions through negotiations with the supplier. Finally, the separation from quality ensures that the supplier development group doesn t get caught up in short-term troubleshooting instead of long-term performance improvements. For instance, if a pharmaceutical company has set a target date for the release of a new drug but a problem with a key ingredient threatens the launch, the quality department must draw on all of its resources to fix the problem in a timely manner. If supplier development is under the quality roof, its members will often be caught up in this type of short-term firefighting. Choose the right development approach. We ve identified three types of supplier development programs, each requiring different capabilities. The check in approach involves dropping in on target suppliers every 6 to 12 months, evaluating process and product capabilities for two to three days, and providing assignments or recommendations for improvement. This approach can cover a wide range and 6 Supplier Development
9 number of suppliers as many as 60 to 80 per year. It works best for motivated suppliers with strong project-management skills that can work independently on their assignments. The second type is a SWAT team approach, which entails visiting 20 to 30 critical suppliers with specific issues every three to six months for one or two weeks at a time. An improvement plan, timeline, and audit schedule are jointly developed and agreed upon with the suppliers. This approach is best for suppliers that have significant deficits but also the project management capabilities to implement improvement plans. The third type is a dedicated team approach that involves assigning full-time staff to the sites of 10 to 20 selected suppliers per year on an extended basis. The teams analyze the root causes of key problems and provide hands-on support to help solve them, using predetermined improvement plans. This approach requires an average of two to four specialists per supplier for a period of three to six months, along with regular follow-up audits. We tend to recommend this approach because it s faster, leads to more sustainable results, and doesn t require project management skills on the part of the supplier. But it s more expensive and can address only a small number of key suppliers. One company took this approach for its operations in China, using external agencies and strict performance targets to avoid breaking a ban on staff increases and to ensure a quick payback. Engage and motivate target suppliers. Suppliers are often worried that if a program yields cost savings of, say, 10 percent, then the next time prices are negotiated the buyer will demand a 10 percent discount. Similarly, suppliers often fear that the cost transparency of a development program will prevent them from building margins into future price quotes. Finally, shop-floor managers may be very skeptical of any type of change program, so engaging them may be difficult. In China, India, and many other rapidly developing economies, most suppliers have never gone through any kind of performance improvement program. So it s important to devise incentives and penalties to encourage true commitment and participation, not just lip service. Many companies have found that gain sharing such as sharing a portion of cost savings that a supplier identifies is an effective motivational tool. Other incentives include giving improved suppliers greater purchasing volume or awarding them a higher rating. For many suppliers, the positive experience of developing new skills is a powerful incentive. Penalties such as price cuts, delayed payments, or the threat of a bad rating can also be effective. Assigning full-time staff to the sites of 10 to 20 selected suppliers per year on an extended basis is faster, leads to more sustainable results, and doesn't require project management skills on the part of the supplier. Develop a progress road map. A structured approach to implementation is critical to success. We recommend using a disciplined, computer-based reporting system for tracking and monitoring key milestones and accountabilities. Such a system must meet five criteria: the objectives must be feasible; specifics such as measures, timelines, milestones, responsibilities, and key performance indicators must be explicitly established; there must be clear consequences for delays or underperformance; the road map must provide a clear, high-level overview of progress; and it must be generated and agreed upon by a specific date. Signed program plans or an The Boston Consulting Group 7
10 agreement ceremony can be an effective way to signify alignment and mutual commitment. However, any pragmatic solution that works well will do the job. For example, one financial-services provider used an easy-to-handle Excel-based tracking tool that linked templates for individual initiatives to summary dashboards at the business-unit and corporate levels, allowing for automatic report generation. Measure and track results. Lack of follow-up is often a major obstacle to success. At one company, the main reason why several development programs failed was that its own staff members had neglected to closely track measures and milestones, and had failed to take corrective action the moment suppliers fell short of the commitments outlined in the agreement. Development teams must be held responsible for delivering specific improvements related to quality, cost, or volume, and benefits must be tracked over time to truly measure the impact of supplier development efforts. It s important to start with a baseline of a supplier s current performance, using KPIs against which to measure the supplier s improvement. These KPIs typically center on cost and quality metrics and must be tailored to individual suppliers and their specific problems. For instance, if a supplier s fixed costs or inventory-carrying costs are too high, the KPIs would be designed to track improvements in those areas. But the results of these improvement measures must be meticulously tracked. This high transparency along with monthly check-ins with the head of purchasing put pressure on development teams to deliver results. Although a development program can ensure that suppliers improve their performance, it doesn t guarantee that they will lower their prices in line with the cost savings they ve achieved. So it s equally important to work closely with purchasing to track changes and ensure that this final step is taken. Supplier development can lead to significant price reductions typically in the range of 2 to 5 percent but sometimes as much as 10 percent. These reductions add up, especially when applied to a large volume of purchases, and thus can have a major impact on earnings. I n today s fiercely competitive global economy, companies must reduce costs and improve the quality of their products in order to compete. But using suppliers from low-cost countries can result in high-cost problems: quality issues, production delays, and an inability to meet product specifications. For manufacturers in a wide range of industries, the solution is to invest in developing key suppliers. Done right, a focused supplier-development program can deliver results quickly and provide an enormous return on investment. 8 Supplier Development
11 About the Authors Andreas Gocke is a partner and managing director in the Munich office of The Boston Consulting Group. You may contact him by at gocke.andreas@bcg.com. Nikolaus Lang is a partner and managing director in the firm s Munich office. You may contact him by at lang.nikolaus@bcg.com. David Lee is a partner and managing director in BCG s Shanghai office. You may contact him by at lee.david@bcg.com. Stefan Mauerer is a principal in the firm s Munich office. You may contact him by at mauerer.stefan@bcg.com. Arvind Pandey is a partner and managing director in BCG s New Delhi office. You may contact him by at pandey.arvind@bcg.com. Acknowledgments The authors would like to thank Gary Callahan, Martha Craumer, Kim Friedman, and Sharon Slodki for their contributions to the editing, design, and production of this report. For Further Contact If you would like to discuss this report, please contact one of the authors. The Boston Consulting Group 9
12 For a complete list of BCG publications and information about how to obtain copies, please visit our website at To receive future publications in electronic form about this topic or others, please visit our subscription website at The Boston Consulting Group, Inc All rights reserved. 3/11
13 Abu Dhabi Amsterdam Athens Atlanta Auckland Bangkok Barcelona Beijing Berlin Boston Brussels Budapest Buenos Aires Canberra Casablanca Chicago Cologne Copenhagen Dallas Detroit Dubai Düsseldorf Frankfurt Hamburg Helsinki Hong Kong Houston Istanbul Jakarta Kiev Kuala Lumpur Lisbon London Los Angeles Madrid Melbourne Mexico City Miami Milan Minneapolis Monterrey Moscow Mumbai Munich Nagoya New Delhi New Jersey New York Oslo Paris Perth Philadelphia Prague Rome San Francisco Santiago São Paulo Seoul Shanghai Singapore Stockholm Stuttgart Sydney Taipei Tel Aviv Tokyo Toronto Vienna Warsaw Washington Zurich bcg.com
The Emerging Markets Acceleration Program and Globalization Readiness Index. Capturing Breakthrough Growth in Emerging Markets
The Emerging Markets Acceleration Program and Globalization Readiness Index Capturing Breakthrough Growth in Emerging Markets The Boston Consulting Group (BCG) is a global management consulting firm and
More informationOpportunities for Action in Consumer Markets. Procurement: An Untapped Opportunity for Improving Profits
Opportunities for Action in Consumer Markets Procurement: An Untapped Opportunity for Improving Profits Procurement: An Untapped Opportunity for Improving Profits Deep inside every company is a procurement
More informationThe Digital Imperative in Container Shipping
The Digital Imperative in Container Shipping BCG is the leading strategy advisor in shipping 350+ projects in last 3 years across entire value chain Operators, owners, managers Tanker, bulkers, containers,
More informationPerspectives. Acquiring Your Future
Perspectives Acquiring Your Future Acquiring Your Future Assume that innovation will occur elsewhere. So says Joy s Law, a less famous cousin of Murphy s Law. But for many companies, Joy s is the far more
More informationOpportunities for Action in Industrial Goods. Getting Procurement Right: Positioning the Center to Capture Value
Opportunities for Action in Industrial Goods Getting Procurement Right: Positioning the Center to Capture Value Getting Procurement Right: Positioning the Center to Capture Value The current economic slowdown
More informationOpportunities for Action in the Automotive Industry. Devising a Customer Retention Plan That Works
Opportunities for Action in the Automotive Industry Devising a Customer Retention Plan That Works Devising a Customer Retention Plan That Works New forms of automotive retailing, including the increasing
More informationMaximizing the Make-or-Buy Advantage. A Scenario-Based Approach to Increasing Resilience and Value
Maximizing the Make-or-Buy Advantage A Scenario-Based Approach to Increasing Resilience and Value The Boston Consulting Group (BCG) is a global management consulting firm and the world s leading advisor
More information10 Steps. to Achieve Virtual Integration. A guide to building a bond of game-changing collaboration
10 Steps to Achieve Virtual Integration A guide to building a bond of game-changing collaboration Capturing the power of integration without a merger Virtual integration Manufacturer Benefits Jointly pursue
More informationOpportunities for Action in Industrial Goods. Making E-Procurement Real Now
Making E-Procurement 1/29/01 1:38 PM Page 1 Opportunities for Action in Industrial Goods Making E-Procurement Real Now Making E-Procurement Real Now Electronic procurement is supposed to be the slam dunk
More informationOpportunities for Action in Financial Services. Refocusing on Costs
Opportunities for Action in Financial Services Refocusing on Costs Refocusing on Costs Thanks to rapid economic expansion and widespread industry consolidation, banks have grown dramatically during the
More informationUnderstanding the Role of the Chief Strategy Officer
Understanding the Role of the Chief Strategy Officer The Boston Consulting Group (BCG) is a global management consulting firm and the world s leading advisor on business strategy. We partner with clients
More informationMore Than Spare Change. Capturing the MRO Advantage in Manufacturing
More Than Spare Change Capturing the MRO Advantage in Manufacturing The Boston Consulting Group (BCG) is a global management consulting firm and the world s leading advisor on business strategy. We partner
More informationThe Rise of the Female Economy in B2B a source of UK competitiveness
A.T. Kearney in association with the CBI The Rise of the Female Economy in B2B a source of UK competitiveness January 29 th 2014 Agenda Introduction Part 1: The six drivers: Why is the female economy important
More informationPerspectives. The Hotel Clerk
Perspectives The Hotel Clerk 2 BCG PERSPECTIVES The Hotel Clerk What a piece of work is a man! How noble in reason! How infinite in faculty! In form and moving how express and admirable! from William Shakespeare,
More informationFrom the Back Office to Strategic Thought Leadership
From the Back Office to Strategic Thought Leadership Driving Organizational Value with Knowledge Management APQC Houston, May 13 th, 2011 Helen Clegg Hugo Evans [Herding Cats Video] A.T. Kearney xx/mm.yyyy/00000
More informationBusiness transformation and the role of change agents
Kuwait Change Management Conference Business transformation and the role of change agents Presentation Kuwait, December 2017 Eduard Gracia Principal A.T. Kearney Every major business transformation is
More informationOpportunities for Action in Consumer Markets. Myths and Realities of On-Line Retailing
Opportunities for Action in Consumer Markets Myths and Realities of On-Line Retailing Myths and Realities of On-Line Retailing Business success is grounded in the ability to understand where the economy
More informationPerspectives. The Hardball Manifesto
Perspectives The Hardball Manifesto The Hardball Manifesto This Perspective is adapted from the authors new book, Hardball: Are You Playing to Play or Playing to Win? (Harvard Business School Press, October
More informationEngaging for Results. Opportunities for Action in Financial Services
Engaging for Results 6/26/03 9:59 AM Page 1 Opportunities for Action in Financial Services Engaging for Results Engaging for Results How many of your organization s employees would honestly describe their
More information(R)Evolution in the Telco & Media Sector
15. konference Telekomunikacije (R)Evolution in the Telco & Media Sector Future challenges - Extract November 2014 Marko Derča This document is exclusively intended for selected client employees. Distribution,
More informationWe help organisations. work. by transforming strategy into reality
We help organisations work by transforming strategy into reality 2 Helping organisations work Hay Group is a global management consulting firm that works with leaders to transform strategy into reality
More informationA.T. Kearney Aerospace & Defense Services. Creating tangible and lasting results in Aerospace & Defense
A.T. Kearney Aerospace & Defense Services Creating tangible and lasting results in Aerospace & Defense A.T. Kearney s Scope of Expertise A.T. KEARNEY IS A GLOBAL MANAGEMENT CONSULTING FIRM THAT uses strategic
More informationOpportunities for Action in Information Technology. Clusters and Nuggets: Mastering Postmerger IT Integration
Opportunities for Action in Information Technology Clusters and Nuggets: Mastering Postmerger IT Integration Clusters and Nuggets: Mastering Postmerger IT Integration In an age when corporate mergers are
More informationJANAF's International Oil Conference
Client logos should not be used on title page unless it is required by client to maintain brand continuity. To add a color block or a picture here, select from alternate title pages in A.T. Kearney Library
More informationFuture of Retail Banking in Romania
What do Banking Executives expect to happen Future of Retail Banking in Romania Survey Summary May 2014 Bucharest Agenda Executive summary "Future of Retail Banking in Romania" survey Y8YbtcQklln07kHyQ1
More informationPayNet UK Salary Tracker: What is the real cost of living for UK employees today?
PayNet UK Salary Tracker: What is the real cost of living for UK employees today? Overview Hay Group s quarterly PayNet UK Salary Tracker looks at how employees pay compares with a range of key economic
More informationHay Group Spectrum. The next generation HR solution
Hay Group Spectrum The next generation HR solution Today, you can t afford to have anything less than an integrated approach to HR. An approach that delivers real insights to strategic decision-making.
More informationDigital Excellence index
Digital Excellence index Key findings - September 2018 Marko Derča, Vice president, Head of Digital Transformation, Eastern Europe Marko.derca@atkearney.com 1 Digital transformation is entering a new phase,
More informationOpportunities for Action in Consumer Markets. Finding New Value in Legacy Assets
Opportunities for Action in Consumer Markets Finding New Value in Legacy Assets Finding New Value in Legacy Assets Great companies make good things happen even in bad times. Now, squeezed by the constraints
More informationExcellence in Nonpersonnel Costs. Uncovering Cost Drivers to Achieve Sustained Improvements
Excellence in Nonpersonnel Costs Uncovering Cost Drivers to Achieve Sustained Improvements The Boston Consulting Group (BCG) is a global management consulting firm and the world s leading advisor on business
More informationWarehousing: Charting the Way to a Winning Strategy
Warehousing: Charting the Way to a Winning Strategy Strong headwinds are challenging how companies operate their warehouses. Successful navigation hinges on optimizing capacity, improving utilization,
More informationSURVEY OF CORPORATE GOVERNANCE PRACTICES IN EUROPEAN FAMILY BUSINESSES
SURVEY OF CORPORATE GOVERNANCE PRACTICES IN EUROPEAN FAMILY BUSINESSES 1 In the summer of 2014, Russell Reynolds Associates and IESE conducted a survey of 400 of Europe s largest family-controlled businesses.
More informationOpportunities for Action in Financial Services. Clusters and Nuggets: Mastering Postmerger IT Integration in Banking
Opportunities for Action in Financial Services Clusters and Nuggets: Mastering Postmerger IT Integration in Banking Clusters and Nuggets: Mastering Postmerger IT Integration in Banking The global trend
More informationIntegrating Suppliers. Moving Impact from Lean Programs to the Next Level
Integrating Suppliers Moving Impact from Lean Programs to the Next Level The Boston Consulting Group (BCG) is a global management consulting firm and the world s leading advisor on business strategy. We
More informationC3X: Looking Back at Five Years in the Chemicals Industry
Fifth Anniversary Edition C3X: Looking Back at Five Years in the Chemicals Industry The Chemical Customer Connectivity Index examines market developments and how chemical manufacturers and their customers
More informationTime to Accelerate in the Race Toward Industry 4.0
Time to Accelerate in the Race Toward Industry 4.0 The Boston Consulting Group (BCG) is a global management consulting firm and the world s leading advisor on business strategy. We partner with clients
More informationassessment in the middle east
The key challenge facing Middle Eastern companies is how to identify and empower the next generation of leaders who can make their businesses compete on the global stage. The purpose of this paper is to
More informationOpportunities for Action in Industrial Goods. Innovation to Cash: Orchestrating the Process
Opportunities for Action in Industrial Goods Innovation to Cash: Orchestrating the Process Innovation to Cash: Orchestrating the Process To generate the growth they need, industrial companies have spent
More informationRetail Banking: A Wealth of Opportunity for Retailers?
Retail Banking: A Wealth of Opportunity for Retailers? The retail banking sector, facing unprecedented change, offers an exciting opportunity for new entrants and particularly retailers if they ask the
More informationOpportunities for Action in Operations. What Is Globalization Doing to Your Business?
Opportunities for Action in Operations What Is Globalization Doing to Your Business? What Is Globalization Doing to Your Business? Across industries worldwide, globalization is reshaping the playing field
More informationWinning. strategy. The World s Most Admired lead the way in board governance and human capital management
Winning strategy The World s Most Admired lead the way in board governance and human capital management 4 2007 The 2007 study into the World s Most Admired Companies highlights the board s role in effective
More informationOpportunities for Action in the Automotive Industry. Rethinking Automotive Purchasing: From Price Pressure to Partnership
Opportunities for Action in the Automotive Industry Rethinking Automotive Purchasing: From Price Pressure to Partnership Rethinking Automotive Purchasing: From Price Pressure to Partnership Over the last
More informationPutting the Wholesaler in the Driver s Seat. Best practices from the retail industry to improve profitability and gain competitive advantage
Putting the Wholesaler in the Driver s Seat Best practices from the retail industry to improve profitability and gain competitive advantage Wholesalers are more than supply chain intermediaries controlling
More informationPeople, process and technology
People, process and technology Discovering the intelligent connection EY Discovery Services Why EY? Your discovery approach is pivotal. Do it wrong, and you invite risk. Do it right, and discovery acts
More informationThe Purchasing Chessboard
The Purchasing Chessboard In turbulent times, markets become more volatile and differentiated. What does this mean for companies and industries worldwide? That a one size fits all supply strategy no longer
More informationIn a New Era for Boards, Culture Is Key
In a New Era for Boards, Culture Is Key A healthy board culture is increasingly recognized as an important element of board performance. But unlike other areas of board governance composition, risk, succession
More informationShifting the Board s Focus from Compliance to Engagement: Best Practice Examples to Unlock Latent Value
Shifting the Board s Focus from Compliance to Engagement: Best Practice Examples to Unlock Latent Value By Steve Goodman and Roopa Foley Board members today must grapple with increasingly complex matters
More informationHealthcare.
Healthcare www.stantonchase.com Stanton Chase is a leader in executive search and leadership consulting with a global footprint, local expertise, and extensive experience across numerous industries and
More information7 Pivotal HR competencies for global business in 2017
Your Leadership Partner 7 Pivotal HR competencies for global business in 2017 Karen Fogh-Andersen, Managing Partner Stanton Chase Copenhagen, Denmark March 2017 www.stantonchase.com How companies need
More informationThe Coalition Concept
The Coalition Concept Some suggest treating outsourcing as a marriage; others say it is a transactional arrangement. In our view, outsourcing is a coalition an alliance formed for mutual benefit. 1 It
More informationGovernance Watch Webcast #1: Best Practices in Board Succession Planning
Governance Watch Webcast #1: Best Practices in Board Succession Planning In the ever-evolving market, boards must carefully consider how they will both lead and adapt along with their organizations. In
More informationOpportunities for Action in Consumer Markets. Innovation to Cash: Orchestrating in the Consumer Industry
Opportunities for Action in Consumer Markets Innovation to Cash: Orchestrating in the Consumer Industry Innovation to Cash: Orchestrating in the Consumer Industry To generate the growth they need, consumer
More informationThe Five Things I Wish I Had Known When I Was Promoted to the C-Suite
The Five Things I Wish I Had Known When I Was Promoted to the C-Suite I wish I had known then what I know now. The Five Things I Wish I Had Known When I Was Promoted to the C-Suite I wish I had known then
More informationChina Pursues Excellence in Logistics. A.T. Kearney s Logistics Excellence in China Study
China Pursues Excellence in Logistics A.T. Kearney s Logistics Excellence in China Study While China and the world rebound from the worst economic crisis in 80 years, a new operating paradigm awaits companies
More informationRemCo Chairs in the Spotlight
RemCo Chairs in the Spotlight 2 Executive Summary As investor pressure on boards to reduce excessive pay and introduce greater transparency has increased, so too has the level of media scrutiny, with compensation
More informationCargo Sales & Service Presentation. Air Logistics Group
Cargo Sales & Service Presentation Air Logistics Group Air Logistics Group Introduction Introducing Air Logistics Group IATA Approved Over $450m cargo sales 280 employees worldwide Experienced management
More informationLeadership Transitions: Differences Across Leadership Levels
25 June 2013 Leadership Transitions: Differences Across Leadership Levels Joy F. Hazucha The Korn/Ferry Leadership and Talent Consulting family Mission Better leaders, Better world Vision Premier global
More informationOpportunities for Action in Consumer Markets. Aim High, Act Fast: The China Sourcing Imperative
Opportunities for Action in Consumer Markets Aim High, Act Fast: The China Sourcing Imperative Aim High, Act Fast: The China Sourcing Imperative For more than a decade, Made in China has been a compelling
More informationAndrew Clark Daniel West Stuart Groves. Achieving Cost Leadership A Sustainable and Pragmatic Approach
Perspective Peter Bertone Andrew Clark Daniel West Stuart Groves Achieving Cost Leadership A Sustainable and Pragmatic Approach Contact Information London Peter Bertone Senior Partner +44-20-7393-3205
More informationOpportunities for Action in Financial Services. Activate and Integrate: Optimizing the Value of Online Banking
Opportunities for Action in Financial Services Activate and Integrate: Optimizing the Value of Online Banking Activate and Integrate: Optimizing the Value of Online Banking It was just a few years ago
More informationOpportunities for Action in Financial Services. Winning Jack Back: New Challenges in Small-Business Banking
Opportunities for Action in Financial Services Winning Jack Back: New Challenges in Small-Business Banking Winning Jack Back: New Challenges in Small-Business Banking Meet Jack. He runs a small computer-training
More informationDo You Have a Successor?
Legal, Compliance & Regulatory Do You Have a Successor? Many general counsel believe they have an internal successor, but do CEOs and boards agree? Many general counsel are confident that they have groomed
More informationConsumer Products & Services
Consumer Products & Services Global Consumer Products and Services Practice Group www.stantonchase.com Stanton Chase is a global leader in executive search and leadership consulting with extensive experience
More informationRethinking the Pharma Supply Chain. New Models for a New Era
Rethinking the Pharma Supply Chain New Models for a New Era The Boston Consulting Group (BCG) is a global management consulting firm and the world s leading advisor on business strategy. We partner with
More informationgetting a merger right Avoid the Value-Eroding Talent Traps
getting a merger right Avoid the Value-Eroding Talent Traps Mergers are announced with much fanfare and attention to the value of the deal in the form of cost savings or new revenue from sales and distribution
More informationProfitable Growth for E-tailers: Managing Fulfillment on a Tightrope
Profitable Growth for E-tailers: Managing Fulfillment on a Tightrope Balancing fulfillment scalability with efficiency through a structured approach can give e-tailers a competitive advantage. 1 Building
More informationThe Boston Consulting Group (BCG) is a global management consulting firm and the world s leading advisor on business strategy.
The Boston Consulting Group (BCG) is a global management consulting firm and the world s leading advisor on business strategy. We partner with clients in all sectors and regions to identify their highest-value
More informationTrade Spend Transformation
Trade Spend Transformation Overcoming Fear to Generate Value Transforming trade spend across brands and channels can be daunting. Six steps can help any organization overcome the fear of change to eliminate
More informationClear Eyes Provide Boards with Better Vision. Insights into Activist Investors Approaches to Targeting Boards
Clear Eyes Provide Boards with Better Vision Insights into Activist Investors Approaches to Targeting Boards 2 Clients who are anticipating or early in the process of an activist situation, and a potential
More informationSupply Chain: Going beyond cost & service
Mashik Conference Supply Chain: Going beyond cost & service Presentation document 28 th June 2017 Jan van der Oord Now more than ever, corporations need to rapidly innovate not only to stay ahead but simply
More informationSprinting to Value in Industry 4.0
Sprinting to Value in Industry 4.0 The Boston Consulting Group (BCG) is a global management consulting firm and the world s leading advisor on business strategy. We partner with clients from the private,
More informationStanton Chase Best Practice Methodology In Executive Search. Step 1: Talent Acquisition Mindset. Your Leadership Partner
Your Leadership Partner Stanton Chase Best Practice Methodology In Executive Search Step 1: Talent Acquisition Mindset October 2017 www.stantonchase.com Stanton Chase is unique in the executive search
More informationCEO Succession Planning The CEO s Critical Role
CEO Succession Planning CEO Succession Planning The CEO s Critical Role The primacy of the board in CEO succession planning is wellestablished, and, indeed, the days when the CEO held sway over the process
More informationHow to. Think About. Assessing Leaders
How to Think About Assessing Leaders Accurately predicting which executives will succeed in a senior leadership role and which will not is critical, but challenging for most organizations. What makes these
More informationCFO and Financial Executives
CFO and Financial Executives www.stantonchase.com Stanton Chase is a leader in executive search and leadership consulting with a global footprint, local expertise, and extensive experience across numerous
More informationEnhancing New Director Performance and Impact
Enhancing New Director Performance and Impact 2 Executive summary Boards are increasingly seeking to diversify their membership and draw on expertise from a wider variety of sources. As a result, they
More informationPlaying to Win in Emerging Markets. Multinational Executive Survey Reveals Gap Between Ambition and Execution
Playing to Win in Emerging Markets Multinational Executive Survey Reveals Gap Between Ambition and Execution The Boston Consulting Group (BCG) is a global management consulting firm and the world s leading
More informationISM Travel & Events. Graham Crawshaw MCIPS Director of Content June 2017
ISM Travel & Events Graham Crawshaw MCIPS Director of Content June 2017 Best in Class: What does good look like? Global Network of Procurement Professionals 10,000+ active participants 70 countries represented
More informationOpportunities for Action in Financial Services. Overcoming the Unexpected: A Business Imperative
Opportunities for Action in Financial Services Overcoming the Unexpected: A Business Imperative Overcoming the Unexpected: A Business Imperative Every financial institution is vulnerable to disruptions
More informationTrends in Postmerger Integration VI. Enabling PMI. Building Capabilities for Effective Integration
Trends in Postmerger Integration VI Enabling PMI Building Capabilities for Effective Integration The Boston Consulting Group (BCG) is a global management consulting firm and the world s leading advisor
More informationten Hay Group a leader s to-do list from
ten to-do list from a leader s Hay Group To do 10 Win hearts and minds 9 Bring your strategy to life 8 Solve the globalization puzzle 7 Don t just throw money at the problem 6 Don t hold your people back
More informationBecoming a Digital Frontrunner in Aerospace and Defense
Becoming a Digital Frontrunner in Aerospace and Defense The Boston Consulting Group (BCG) is a global management consulting firm and the world s leading advisor on business strategy. We partner with clients
More informationBoards and Board Evaluations: A Missed Opportunity Erik P.M. Vermeulen
Boards and Board Evaluations: A Missed Opportunity Erik P.M. Vermeulen Shareholders Legal/Moral Owners = Corporate ACCOUNTABILITY Board of Directors CEO/Executives Staff EMPOWERMENT Governance Compliance
More informationUnlocking China s Energy Potential
Unlocking China s Energy Potential September 26 2 Unlocking China s Energy Potential OVER THE PAST DECADE, INTERnational energy companies have participated in China s economic growth. Many of them developed
More informationLeadership Jumping Ship. Attracting and retaining the best performers at professional services firms
Leadership Jumping Ship Attracting and retaining the best performers at professional services firms 2 Summary In September 2016, Russell Reynolds Associates surveyed 333 senior executives at professional
More informationAssuming a professional mantle: UK arts boards examined
Assuming a professional mantle: UK arts boards examined 2 Assuming a professional mantle: UK arts boards examined Amidst a broader governance debate spreading across sectors, UK cultural boards must contend
More informationc-suite 2008 A Guide for Human Resources Executives
The Path to the c-suite 2008 A Guide for Human Resources Executives Executive Summary What does it take to achieve the rank of Chief Human Resources Officer (CHRO)? In an effort to answer this question,
More informationGetting More Value from Joint Ventures
Getting More Value from Joint Ventures The Boston Consulting Group (BCG) is a global management consulting firm and the world s leading advisor on business strategy. We partner with clients from the private,
More informationManaging disruption through strategic cost transformation
CII TCM Cost Congress 2017 Managing disruption through strategic cost transformation Conference Presentation 20-Nov-2017 Kaushika Madhavan, Partner A.T. Kearney Indian organizations face multiple disruptions
More informationData leadership: Defining the expertise your organization needs
Technology Officer Practice Data leadership: Defining the expertise your organization needs The world of data and analytics is evolving at a pace unseen in recent memory, with major talent implications
More informationWhat is executive remuneration in high definition?
Executive remuneration in high definition Article two a high definition approach to benchmarking Our latest series of papers turns a high definition lens to different aspects of executive reward. This
More informationEvaluating the Chief Executive Off i c e r. Copyright 1998 Korn/Ferry International
Evaluating the Chief Executive Off i c e r Copyright 1998 Korn/Ferry International 2 Table of Contents The Growth in CEO Evaluations...6 The Benefits of a CEO Evaluation...6 A Step-by-Step Guide to CEO
More informationConsumer Products & Services.
Consumer Products & Services www.stantonchase.com Stanton Chase is a leader in executive management and board search with global reach, local expertise, and extensive experience across numerous industries
More informationWHY 97% OF ALL PRICE INCREASES FAIL and what your company needs to do different this year
WHY 97% OF ALL PRICE INCREASES FAIL and what your company needs to do different this year Image: colourbox.com Philip W. Daus October 2017 www.simon-kucher.com It s that time of the year again. Companies
More informationWorking out post-employment notice pay ( PENP ) steps and examples. April 2018
Working out post-employment notice pay ( PENP ) steps and examples April 2018 Step 1: What is the relevant termination award? The RTA ( relevant termination award ) is any payment or benefit to compensate
More informationDevelopments in predicting CEO success
Leadership Advisory Services Developments in predicting CEO success New perspectives on identifying and assessing the essential traits of effective leaders Senior executive decisions are incredibly high
More informationChallenging Stakeholders
5 Ways to Engage Challenging Stakeholders Graham Crawshaw MCIPS Director of Content December 2016 Not familiar with CASME? 40 benchmarking reports and procurement guides published each year A network of
More informationAirline Employer Branding: How to measure the Unmeasurable
Airline Employer Branding: How to measure the Unmeasurable Hans Nilsson Global Sector Leader Aviation & Aerospace Partner www.stantonchase.com The global airline industry has changed significantly during
More informationWith Advanced Analytics, It s People (Not Data) That Stand in the Way of Change. By Chris Brahm, Lori Sherer, Richard Fleming and Briana Bennett
With Advanced Analytics, It s People (Not Data) That Stand in the Way of Change By Chris Brahm, Lori Sherer, Richard Fleming and Briana Bennett Chris Brahm is a Bain & Company partner who leads the firm
More informationOpportunities for Action in Financial Services. The New Consumer
new consumer final 12/10/01 3:36 PM Page 1 Opportunities for Action in Financial Services The New Consumer The New Consumer In 1999 a woman stood up at the annual general meeting of Marks & Spencer and
More information