möbius operational excellence seminar 23 04 2015

Introduction

70%

business consulting. profoundly different.Source: Blog Ivo Mechels, “Consujuisten en Michel van de Colruyt”

Michel showed me the fairtrade rice Jef Colruyt had handpicked in Benin”

26.000

26.000

= 50 participants * 1 idea per week * 10 years

1. RESPECT

Reverse the triangle

“Your people are the experts. The highest form of respect is to continuously challenge them and give them the autonomy to improve their job - Mr. Yoshino, ex-manager Toyota-

8 Business Consulting. Grondig Anders.

9 Business Consulting. Grondig Anders.

How to load a truck in a safe and compact

way?

The Circle of Chalk

business consulting. profoundly different.

“Toyota managers

should be sufficiently

engaged on the

factory floor that they

have to wash their

hands at least three

times a day”

- Taiichi Ohno-

Genchi Genbutsu2. Go see

Everytime you get promoted you get further away from reality. By the time you are CEO, you are the most ignorant person in your organisation”- Sensei Imai Maasaki, founding father of Kaizen -

4%

17%

42%

100%

100%

1%

Mountain ofignorance

Reversed mountainof power

Pro

ble

ms

we k

now

of D

istributio

n o

f pow

er

The FigureTrap

business consulting. profoundly different.

Good morning, I’ll be taking over your

shift today ”

15 business consulting. profoundly different.

Does your company have a “clean desk” policy?

And is your desk clean at this very

moment?

3. Walk the talk

People are looking for integrity in their leaders”

- R. Hogan & R. B.Kaiser, “What we know about leadership”-

Mission & identity

Values & belief

Competencies

Behaviour

Individual

Result

Organisation

Mission & identity

Values & belief

Competencies

Behaviour

Result

“Even our CEO doesn’t have his own

desk” - Möbius-

19

“Good and clear leadership is being on

site with the employees to lead, accompany and

support” - Volvo Cars Ghent-

20

The Eternit KoB management and

Continuous Improvement team

assembling together at the start of their

trajectory

21

GO SEE

WALK THE TALK

RESPECT

BELIEF

LONG-TERM FOCUS

PATIENCE

22

Case Study

BASF Antwerpen NVOperational Excellence

Luc de VosOperational Excellence – Continuous Improvement

AGENDA

• BASF Antwerpen NV – Strategic vision• Operational Excellence• Continuous Improvement

AGENDA

• BASF Antwerpen NV – Strategic vision• Operational Excellence• Continuous Improvement

BASF ANTWERPEN N.V.A healthy company

approx. 7Billion Euro

600Hectares

3.000Employees

BASF ANTWERPEN N.V.Investing for the future

2009 2010 2011 2012 2013 20140.0

100.0

200.0

Mio

€

BASFProduct Portfolio

CHEMICALSPERFORMANCEPRODUCTS

FUNCTIONAL MATERIALS & SOLUTIONS

AGRICULTURALSOLUTIONS OIL & GAS

Dispersions & pigments

Catalysts

Oil & gas

Antwerp BelgiumNutrition & health

Paper chemicals

Petro-chemicals Care chemicals Performance materials

Construction chemicals

Crop protection

Monomers

Intermediates

Performance chemicals

Coatings

Petro-chemicals Care chemicals Performance materials

Construction chemicals

Crop protection

Monomers

Intermediates

Performance chemicals

Coatings

Petro-chemicals Care chemicals Performance materials

Monomers

Intermediates

Performance chemicals

376production sites

112,000employees

No. 1 in chemistry

74billion euro

BASF AROUND THE WORLD

Regional centresSelected production sitesMost important research sitesVerbund sites

Freeport Geismar

Antwerp

Nanjing

Kuantan

Ludwigshafen

VERBUNDPRODUCT INTEGRATION

Energy integration

Know-how network

Logistical integration

Integrationof

environmental protection

Shared infrastructure

Product integration

VERBUNDVerbund Integration

VERBUNDPRODUCT INTEGRATION}

Less transport

Intelligent use of by-products

Less environmental impact

Sharing knowledge

EXAMPLE

From naphtha to nappies

12345

VERBUNDPRODUCT INTEGRATIONVERBUND

Verbund Integration

BASF

In a changing world

BASFin a changing world

A CHALLENGE...BASF RISES TO IT!

67%urban residents

1.2billion cars

2020 2025 2030 2050

+ 50%energy

9billion people

BASFin a changing world

WE CREATECHEMISTRYFOR ASUSTAINABLEFUTURE

FOR ASUSTAINABLEFUTURE

BASFBASF Group worldwide

We create chemistry for a sustainable future

We add value as

one company

We innovate to make our

customers more successful

We drive sustainable

solutions

We form the

best team

Creative

Open

Responsible

Entrepreneurial

BASFWhat – our strategic principles

Sustainability and Safety

Verbund Management Operational excellence

Learning and Growthwe create

chemistry for a sustainable

future

We add value as ONE company

We innovate to make our customers more succesful

We drive sustainable solutions

We form the best team

AGENDA

• BASF Antwerpen NV – Strategic vision• Operational Excellence• Continuous Improvement

OPEXOperational Excellence

Lean Culture

Proj

ect P

ortfo

lio M

anag

emen

t Opex

Energy M

anagement/E

fficiency

Asset E

ffective

ness

Total Te

chnica

l Cost

…

Lean culture as basis to achieve Opex in a sustainable way

OPEXOperational Excellence

Opex in Operations: Opal 21 – Implementation of a continuous improvement process

Opex in Technical Services: Service Excellence

Opex in other Services: HR full force, Ocean 2015,…

Continuous development

Project „Opal 21“

A fundamental mindstep change by implementing the BASF PS

Prod

uctiv

ity p

erfo

rman

ce

site

/pro

duct

ion

Time

BASF Management is convinced that

• “continuous improvement” is a core task within the company,

and complementary to our production process

• “continuous improvement” will be a core task for

EVERYONE within the company

OPERATIONAL EXCELLENCEBASF Production System: 6 core elements

Full potential of BASF production system can only be realized through interaction of all key elements

Qualification Automation

Processoptimization

BetrieblicheQualifi-zierung

MotivatedEmployees

Roles andresponsibilities

Optimization ofplant structures

Lean management

Safe production

OPERATIONAL EXCELLENCEContinuous Improvement

Consolidation of the organization & definition of

improvement measures2

Disturbance of ‘daily operations' by implementing the BASF Productiesysteem

("Change")

1

3

Operational Excellence by Continuous Improvement

Classical way of optimization

α > 0

Operations without optimization

Classical way of optimization

Framework

D

C

Q

S

P

Create breakthrough results

Create problem-solving capability andculture of continuous improvement

AGENDA

• BASF Antwerpen NV – Strategic vision• Operational Excellence• Continuous Improvement

LEAN MANAGEMENTContinuous Improvement

LEAN MANAGEMENTContinuous Improvement - Our Mission Statement

“Day-to-day performance improvement as foundation of our

organization´s culture”

LEAN MANAGEMENTWhat did we achieve so far?

From OPAL21

Connected to Operational Targets (OD)

Request from within the

organisation

Measure capabilities and performance on both Management and Shopfloor level

LEAN MANAGEMENT Lean Performance Dialogue

No audit … new “as-is” is basis to define specific targets and LEAN efforts (improvement kata)

LEAN is only......5S

LEAN is only... ...a toolset

LEAN is only......for production

LEAN is only... ...bottom-up

LEAN... can be done in 6 months

LEAN requires a cultural transformation!

What some people believe... ...deserves better answers:

LEAN is to design processes without waste!

LEAN is to foster mindset and capabilities!

LEAN is for collaboration of all disciplines!

LEAN is to realize profitable growth targets!

LEAN is......for cutting

fixed cost

LEAN is only......for shift people

LEAN is for value-adding use of resources!

LEAN is a leadership responsibility!

LEAN MANAGEMENT7 common myths…

50

But we need to break the wall…

51

1. Leadership demonstrates belief in CI

4. From ad-hoc to development program

2. Reinforce CI roles across the organization

3. Share LEAN practices

52

A new focus based on BELIEF

What do you think you as leadership team can do to truly

understand and live LEAN, pulling the organization?

53

A new focus based on BELIEF

54

Top Management State and communicate

clear program goals Commit to provide

resources sustainably Communicate the story for

the “case for change” Role model in LEAN

leadership

Plant/functional Mgt Commit and actively live to

own new role Provide resources and

assign the most skillful team

Promote and communicate change stories

Acknowledge improvement and reward employees

Celebrate success with employees!

Supervisors Area Mgt Coach the continuous

improvement routine Foster problem solving as

daily core activity Build a culture with trust to

learn from failure Cooperate with other

areas - act as a team

A new focus based on BELIEF

A new focus based on BELIEF

150 years

Key Note

 Möbius

23/04/2015

Leadership in innovative organizations

Herman Van de VeldeDirector

Design, production and distribution of

luxury lingerie

From craftsmanship to industrial production

1919: Foundation Van de Velde

Achiel and Margaretha Van de Velde• Pioneers• 1st product: ladies corsets with an eye for quality• distribution through retailers

From craftsmanship to industrial production

1919: Foundation Van de Velde

Achiel and Margaretha Van de Velde•pioneers•distribution through retailers

2nd generation: •use of elastic materials•from the 40’s onwards retail in Belgium and the Netherlands •Extension of assortment

– Fashion

– Marketing-driven

– Delocalization of production

– Cultural change

– Governance change

Change VdV business model

Change business model: Fashion

Design department • Team of 50 people (stylists, textile engineers, pattern

makers, etc.)

• 500 new styles per year

• 20.000 SKU’s

• Combination of fashion and fit

Change business model: Marketing-driven

Focus-strategy • Product: lingerie

• Luxury Segment (= price segment)

FOCUS: choice of market segmentSegmentation of the lingerie market

80 % 70 %

< EURO 20STANDARDHunkemöller, Etam

< EURO 20 – 60MIDDLE

< EURO 60 - 100 LUXURYMJ, PrimaDonna, MJ l’Aventure

> Euro 100

Sarda20 %30 %

Northern Europe

Southern Europe

Change business model: Marketing-driven

Focus-strategy • Product: luxury lingerie

• Price Segment

• Distribution channel

FOCUS: choice of distribution channel

Distribution channel % total market Positioning Van de VeldeSpecialized retailers 28 to 50 % XLuxury department stores and chains 7 to 21 %

Department stores X Chains -

Supermarkets and food 50 to 24 % -Mail order 15 to 5 % -

Specialist stores lose market share, but remain THE Van de Velde partner in distribution 

Specialist stores lose market share in most European markets

• Germany : 21%, decreasing• France : 13%, decreasing• The Netherlands : 35%, decreasing• Belgium : 40%, stable

Fit: Find the correct

size

Style: Choose the right cut and shape

Fashion: what is the right colour for this

woman and this particular situation?

“STYLING”

“Shaping the bodies and minds of women”www.lingeriestyling.com

3 components of Lingerie Styling

Retail investments

- USA: Intimacy - 18 stores- Turnover 2012: 33,7 mio USD

- The Netherlands: Linchérie- 19 franchises- Turnover 4,8 mio EUR

Retail investments

- Rigby & Peller- England:

- 7 stores in and around London− ‘Bra Fitting’ (Lingerie Styling). − Turnover 2012: 9,2 m£

− Germany: 9 stores− Spain: 3 stores− Denmark : 1 store

- Hong Kong / China : Private Shop− 22 stores in Hong Kong and China− Turnover 2012: 6,7 m$− Joint venture between Getz and Van de Velde

Change business model: Marketing-driven

Focus-strategy • Product: luxury lingerie

• Price Segment

• Distribution channel

• Geographic focus

• Brands instead of private label

1981: Marie Jo 1990: PrimaDonna 1997: Marie Jo L’Aventure

2009: Andres Sarda 2010: PrimaDonna Twist 2014: PrimaDonna Swim

74

Brand policy instead of private label

Change business model: Delocalization

Two tendencies

• Centralization of core activities

• Delocalization of production

Change business model: Delocalization

Centralization of core activities• Strategy and policy• Design• Purchases (European fabrics)• Quality control raw materials• Cutting of the fabric• Core production Belgium• Quality control and expedition

Delocalization of production

49,5%

46,2%

4,3%

China Tunesia Eastern Europe

Change business model: Delocalization

Change business model: Delocalization

Delocalization of production

– Quality is identical all over the world“Made in Belgium” has been replaced by “Made by Marie Jo”

Conditions:• Detailed preparation of the process• Strong local management• Strict compliance rules by headquarters

– SA 8000 (social label)

SA8000Social Accountability 8000

Requirements:1. No child labour2. No forced labour3. Health and Safety4. Freedom of Association & Right to Collective

Bargaining5. No discrimination6. No disciplinary practices7. Working Hours8. Remuneration9. Management Systems

9,4

42,1

78,3

111,9

166,3

179,8 181,8 182,4198,4

0

20

40

60

80

100

120

140

160

180

200

1985 1995 2000 2005 2010 2011 2012 2013 2014

Omzet in miljoen €

Van de Velde has always known a constant turnover growth

People

1997 2000 2005 2010 2011 2012 2013 2014

Belgium 424 417 416 474 490 496 511 526

Hungary 259 322 422 - - - - -

Tunisia 125 183 420 672 614 631 512 429

Spain - - - 65 60 56 27 27

Others (abroad)

27 29 36 56 58 65 60 65

Retail - - 34 227 323 316 345 325

TOTAL 835 951 1328 1494 1544 1564 1455 1372

Van de Velde: changing organisation

Before: Taylorist organisation

• Centralism, control, hierarchy• Little room left for HR• Piece work• Specialization• Repetitive work• Transactional leadership

Van de Velde: changing environment

1. Globalisation

2. Fashion driven

3. Difficulties to attract people

Evolution towards innovation driven organisation

• Lowering the brainline• Teamwork• Polyvalency• Expanding job content• Stimulating initiative• Different reward and compensation systems

Evolution towards innovation driven organisation

• Lowering the brainline• Teamwork• Polyvalency• Expanding job content• Stimulating initiative• Different reward and compensation systems• Coaching leadership / transforming Leadership

Main responsibilities for leadership

1. Define strategy

2. Inspire

3. Continuity

86

Qualities of good leadership

• Trust• Integrity• Empathy• Ambition• Optimism• Authenticity

87

Evolution towards innovation driven organisation

• Lowering the brainline• Teamwork• Polyvalency• Expanding job content• Stimulating initiative• Different reward and compensation systems• Coaching leadership / transforming Leadership• Stimulate enthusiasm and passion

Stimulate enthusiasm and passion

• More than job satisfaction

• They do more and go beyond what is called for (customers, colleagues, organization)

• Welcome rather than resist change

• Willing to go the extra mile

Ratio between ‘bevlogen (enthusiastic)’ versus ‘gedistantieerd (dissociated)’ in average and top companies

Wereldtop Gemiddeld

820

29

50

63

30

Bevlogen

Neutraal

Gedistantieerd

Stimulate enthusiasm and passion

How to stimulate enthusiasm?

• Decisional authority

• Communication/transparancy• Strategic information• Comfort information• Motivation information• Community information

• Fair treatment

• Systematic and honest feedback

• Authenticity

Stimulate enthusiasm and passion

The best workplace on earth according to employees

1. Let people be themselvescapacity to absorb different skill sets and personalities

2. Unleash the flow of informationradical honesty

Example: - sessions

Stimulate enthusiasm and passion

The best workplace on earth according to employees

1. Let people be themselves

2. Unleash the flow of information

3. Magnify people’s strenghts

4. Stand for more than shareholder value

A company is a living entity with different needs

• Fysical level: profit, liquidity, solvability

• Emotional level: loyalty, pride, respect, appreciation

• Mental level: drive (“goesting”)

• Spiritual level: internal and external connectivity

Stimulate enthusiasm and passion

The best workplace on earth according to employees

1. Let people be themselves2. Unleash the flow of information3. Magnify people’s strenghts4. Stand for more than shareholder value

5. Show how the daily work makes sense

6. Have rules people can believe in

7. Inspiring goals

“If you want to build a ship, don’t drum up people to collect wood and don’t assign them tasks and work, but rather teach them to long for the endless immensity of the sea.”

‘Le Petit Prince’

Antoine de Saint-Exupéry