Best Practices in Strategic Planning

Transcription

1 Best Practices in Strategic Planning Charles Aubrey V.P. Performance Excellence AndersonBrecon An AmerisourceBergen Company 1

2 Foundation Where do We Begin? 2

3 HOSHIN KANRI Hoshin Kanri Policy Deployment Management by Planning Customer-focused Strategic Quality Planning Systematic Approach Team Oriented Maximum Participation Deploys Quality Organization Wide Aligns Organizational Resources Creates Maximum Buy In 3

4 Strategic Planning Cycle 4

5 Strategic Plan Evolution Mission & Vision FOUNDATION ENGAGE & ALIGN HOSHIN KANRI Values Goals BSC 26 BSC 23 BSC 21 Quality Policy Strategies Teams 5 + Teams 5 + Teams Initiatives Projects Organizational Assessment (Baldrige +/-) Core Competencies 4 Situation, Market & Growth Statements White Paper SWOT Analysis Financial Projections People Involved

6 Strategic Plan Foundation FOUNDATION Mission & Vision Goals 3 3 Strategies 6 Initiatives Situation, Market & Growth Statements Financial Projections People Involved

7 Foundation Vision, Mission Vision To be recognized leader in pharmaceutical packaging through industry leading performance in quality, operational excellence and customer satisfaction. Mission To achieve superior returns and increasing value for all stakeholders by providing a competitive advantage to our customers by high-quality and continuous improvement of pharmaceutical packaging solutions in innovative and costeffective ways. 7

8 Foundation Goals & Strategies Goals: 1) Sales Growth 2) ROCC levels 3) Zero Recalls Strategies: 1) Focused Marketing 2) Strong Regulatory Profile 3) Customer Service 4) Continuous Improvement Culture 5) Leverage Information Technology 6) Process & Product Excellence 8

9 FOUNDATION Examples Initiative: Form strategic partnerships/successful account penetration Situation: U.S. market growing 15% annually Market/Competitors: Cardinal Health, Sharp, etc. Growth: Market share 30% 9

10 Strategic Plan ENGAGE & ALIGN FOUNDATION ENGAGE & ALIGN Mission & Vision Values 7 7 Goals BSC 26 Quality Policy Strategies Teams Initiatives Projects Organizational Assessment (Baldrige +/-) Situation, Market & Growth Statements White Paper SWOT Analysis Financial Projections People Involved

11 ENGAGE & ALIGN Statements Vision We will be the preferred strategic partner to pharmaceutical and biotech manufacturers supporting their drug development and commercialization activities through industry leading performance, agility and customer satisfaction. Mission Our place in this universe is to provide pharmaceutical packaging excellence and innovation to the world s pharmaceutical manufacturers so that they may effectively bring life changing and life saving medicines to patients. Values Customer Focus, Teamwork, Respect, Improve, Engage, Coach Quality Policy We will engage every employee and customer to continuously improve QUALITY in our processes, achieving world class performance and global regulatory compliance while surpassing customer expectations 11

12 ENGAGE & ALIGN White Paper White Paper Topics: Global Perspective Patent Cliff Regulatory & Quality Requirements Challenges Market Segment Perspective Changing Customer Requirements Market Diversification Quality, Service & Technology Current Situation Market Environment Competitors Customer Needs 12

13 ENGAGE & ALIGN - SWOT Analysis Strengths, Weaknesses, Opportunities & Threats Analysis Customer & Employee Feedback Competitive & Regulatory Data Satisfaction Survey Results Horizon Scan (White Paper) Vision, Mission, Values, Quality Policy SWOT Metric Gap Analysis 13

14 Opportunity Strength ENGAGE & ALIGN -SWOT Example Example SWOT Customer Service: Our customer service distinguishes us from competitors. Out-Sourcing: Cost and capital constraints make us a viable alternative to in-sourcing. SWOT Marketing: The ability to market our newly patented package designs. In-Sourcing: In-sourcing could provide sustainable cost savings for customers. Weakness Threat 14

15 ENGAGE & ALIGN Self Assess Self - Assessment Mission, Vision, Values, Quality Policy Workforce capabilities, diversity, culture, satisfaction Customer requirements, expectations, drivers Competitors environment, changes, innovations, limitations Operations efficiency, effectiveness, quality Suppliers roles, key products, communications Metrics and Analysis measure & improve Results how do we perform 15

16 Sample by Team ENGAGE & ALIGN Strategies Value Driven Leadership To create vision, values, strategy, and governance which are effectively modeled, communicated, and deployed to motivate each employee and team to achieve their highest potential and performance. Surpass Customer Expectations We meet and exceed customer expectations both stated and anticipated, and create exceptional value and innovative offerings that delight our customers and engender long term relationships, trust, and loyalty resulting in growth, greater market share and business expansion. Superior Technology & Innovation We encourage creativity, develop innovative solutions and values for customers, employees, and leadership by leveraging our technology and advancing knowledge. World Class Workforce Create a compelling, sustainable strategy to build and inspire a skilled, engaged, motivated and diverse workforce. Process & Quality Management We provide ever-improving customer value and sustainability by developing and operating work processes and systems that create and leverage our strengths. 16

17 ENGAGE & ALIGN Teams/Projects Teams / # of Projects: Value Driven Leadership 16 Surpass Customer Expectations - 15 Superior Technology & Innovation - 12 World Class Workforce - 11 Process & Quality Management 31 # of Projects tied to Bonus s: 28 # of Associates Involved: 130 Teams Included: All Sr. Leaders, All Directors, Selected Managers, and other Associates 17

18 Sample by Team ENGAGE & ALIGN Sample Projects Value Driven Leadership Develop & implement a proactive Associate Communication strategy Develop & implement a formal succession planning program Surpass Customer Expectations Develop Compliance packaging strategy Superior Technology & Innovation Create metrics tree that links all KPI s to departments World Class Workforce Benchmark, develop & implement a Workforce and Workplace engagement strategy Process & Quality Management Develop & implement the Visual Factory concept to enhance communication & visibility Create a Maintenance Excellence benchmarking system Collaborate to develop Core Competencies and intellectual property vision and approach 18

19 Strategic Plan HOSHIN KANRI Mission & Vision FOUNDATION ENGAGE & ALIGN HOSHIN KANRI Values Goals BSC 26 BSC 23 BSC 21 Quality Policy Strategies Teams 5 + Teams 5 + Teams Initiatives Projects Organizational Assessment (Baldrige +/-) Core Competencies 4 Situation, Market & Growth Statements White Paper SWOT Analysis Financial Projections People Involved

20 HOSHIN KANRI - Statements Vision To be the preferred partner to healthcare providers and pharmaceutical manufacturers Mission To improve patients lives by delivering innovative products and services that drive quality and efficiency in pharmaceutical care Values Accountability, Collaboration, Customer Focus, Innovation, Integrity, Passion Quality Policy We will engage every employee and customer to continuously improve QUALITY in our processes, achieving world class performance and global regulatory compliance while surpassing customer expectations Core Competencies Quality/Continuous Improvement/LSS Culture, Packaging Line Technology & Integration Systems, Unbridled Customer Focus, Packaging Solutions 20

21 HOSHIN KANRI Best Practices Best Practices Continue Mission, Vision, Values, Quality Policy, Core Competencies Re-evaluated 5 Strategy Teams 5 Strategies Reviewed and Confirmed Team Goals Reset: , New Projects Selected: , White Paper Refreshed SWOT Renewed Self-Assessment Retaken # of Associates Involved: ,

22 HOSHIN KANRI Core Processes Develop the Balanced Scorecard Top level processes identified Senior management identified as Owner Owners identify top level metrics for each process President Sales & Marketing Project Management, Planning & Purchasing VP Level Quality Operations Receiving, Warehouse, Shipping AP, Invoicing, AR 22

23 HOSHIN KANRI L1 Measures Balanced Scorecard Level 1 Top level processes Develop Balanced Scorecard Review metrics regularly Identify gaps and take action Add or change measures & goals from feedback Measures aligned with 5 strategy teams 23

24 HOSHIN KANRI L2 Process Map Develop the Departmental Scorecard Level 2 process identification Mid level management determine measure for each process to support top level metrics Regular review, identify gaps, and take action VP of Quality Validation Director Level Documentation Quality Control Quality Assurance Training 24

25 HOSHIN KANRI L2 Scorecard Level 2 Measures To Drive Improvement Look deeper for potential root causes to develop solutions to close the gap 25

26 Project HOSHIN KANRI L2 Goals/Initiatives Level 2 Measures ID Specific Project Goal to close the gap add project to strategic plan During regular review if gap is identified project may be started at any time Develop and deliver a robust training program with an eye on scrap reduction, eliminating defects, meeting regulatory requirements and creating and retaining a talented workforce. Goal: 40 training hours per associate annually Execution Goal: This project is to be completed by Fourth Quarter of FY

27 HOSHIN KANRI L3 Cascade Level 3 Measures Develop Level 3 process maps Identify measures with goals Develop associate awareness & accountability: How does your process impact others? How do other processes impact you? How do your actions impact our measures? How can we improve? Create new lines of communication Benchmark 27

28 HOSHIN KANRI L3 Measures Dive Into the Detail Level 3 28

29 HOSHIN KANRI- Ongoing Three Year Development Plan Mission, Vision, Values, Quality Policy, Core Competencies & White Paper Measures/Goals, Strategies, Projects, Assessment & SWOT Workforce C/C Plans & Budget Define & Prioritize 3 Year Strategic Objectives 1 Yr. Strategic Plan with Cascaded Initiatives & Measures Monthly Project/Metric Reviews by Strategy Teams Tie to Reviews, Merit Pay, Bonus Structure & Succession Planning Process 29

30 Strategic Planning Cycle 1st Quarter FY2 + Ongoing Restart 3 rd Quarter FY1 4th Quarter FY1 30

31 AndersonBrecon Sales 31

32 AndersonBrecon Operating Income (000) $16,000 $14,000 $12,000 12,000 $10,000 10,000 $8,000 8,000 $6,000 $4,000 $2,

33 AndersonBrecon Non-Diversification FY Sales 2010 Spec/Med Dev, 16% High Potency, 0% Cold Chain, 2% Generic, 2% Clinicals, 0% Scheduled Drugs, 3% High Potency Traditional Scheduled Drugs Clinicals Generic Cold Chain Spec/Med Dev Traditional, 77% 33

34 AndersonBrecon Diversification FYTD Sales (000) Spec/Med Dev $16,349 10% High Potency $3,787 2% Cold Chain $10,450 7% Generic $1,316 1% Clinicals $13,486 8% Scheduled Drugs $11,516 7% High Potency Traditional Scheduled Drugs Clinicals Generic Cold Chain Spec/Med Dev Traditional $105,147 65% 34

35 Comparison of 2010 to 2012 Diversification FYTD Sales (000) % 0% $16,349 10% $3,787 2% 2% 3% 0% 2% High Potency Traditional Scheduled Drugs Clinicals $10,450 7% $1,316 1% $13,486 8% 77% Generic Cold Chain Spec/Med Dev $11,516 7% $105,147 65% 35

36 Market Share 36

37 Best Practices in Strategic Planning Charles Aubrey V.P. Performance Excellence AndersonBrecon An AmerisourceBergen Company 37