Strategic Supply Change Management How Change Management Can Make the Difference for Strategic Changes in Supply Chain
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1 Strategic Supply Change Management How Change Management Can Make the Difference for Strategic Changes in Supply Chain Daniel Druwe Araujo CPIM Milton Carrera Maretti Daniel Druwe Araujo CPIM Graduated in Economy, CPIM, Recognized APICS Instructor and Master of Managed Change (LaMarsh Global). Officer of the Brazilian IA (ABAI) and a founding member of ACMP, the Association for Change Management Professionals. Over 23 years as a practitioner and 20 as a consultant in Planning, Strategic Management, Continuous Improvement and Change Management. As an Oliver Wight associate, supported 13 organizations in 8 countries to Class A or Operational Excellence certification. Daniel is Managing Director of T2People, dedicated to Change Management and Business Excellence. 1
2 Milton Carrera Maretti Chemical and Environmental Engineer, specialized in Business Management (Stanford Executive Program), HR Management (Michigan University), Master of Managed Change (LaMarsh Global). At Dow Chemical and Eastman Kodak held key positions as Manufacturing Manager, LATAM Quality Director, WW Operations HR VP and LATAM President. Recognized global leader and co author of a book discussing the executives life, and a founding member of ACMP, the Association for Change Management Professionals. Milton is Managing Director of T2People, dedicated ddi dto Change Management and Business Excellence, and the BOD Chairman of FFE, a Brazilian fruits farming and industrialization company. Topics we will cover today: Changes and the Supply Chain Project drivenchangesvs strategy drivenchanges Project driven changes vs. strategy driven changes Integrate changes to achieve the objectives How do changes interact? Three levers of Change Management Conclusion: benefits from strategy driven changes 2
3 Supply Chain, Value Chain R&D Logistics Planning Engineering Logistics Finance Quality HR Production Distribution Sales supplier inbound logistics internal logistics production A production B distribution client $ $$$ LCC new ERP Empowerment TPM CRM Lean Diversity... WMS Six Sigma... Leadership Sustainability Sarbanes Oxley Project 1 Project 2 Project 3 Project 4 Sponsor Sponsor Sponsor Sponsor Team Team Team Team 3
4 Strategic Objectives Project 1 Sponsor Team Project 2 Sponsor Team Project 3 Sponsor Team Project 4 Sponsor Team Study, benchmark, plan, start to execute reduce costs through waste elimination Strategic Objectives 4 Lean Project Sponsor Team Study, benchmark, plan, start to execute one piece flow 2 5 Takt time 4 reduce costs through waste elimination 4
5 Strategic Objectives Project 1 Project 2 Project 3 Project 4 Sponsor Sponsor Sponsor Sponsor Team Team Team Team Study, benchmark, plan, start to execute change supplier R&D Logistics Planning Engineering Logistics Finance Quality HR Production Distribution Sales inbound internal production production logistics logistics A B distribution client and keep running the business! 5
6 Strategic Initiatives Project 1 Project 2 Project 3 Project 4 Team Team Team Team 6
7 Strategically Defined Changes to the Organization Strategic Changes Integrated support to processes and decisions Ability to eliminate process variation Ability to eliminate waste Orient to customers examine other changes coming with the packages are they needed? can they be avoided? Integrate Change Initiatives to Achieve the Objectives new ERP Six Sigma integrated support to processes and decisions Desired State very reliable processes drastically reduced waste CRM Lean high orientation to customers 7
8 How do Changes Interact? How do Changes Interact? 8
9 Three Levers of Change Management Communication What? I don t know how is it there! How? I am afraid of the trip! Why? I LIKE to be here! 9
10 Three Levers of Change Management Learning The Future State Which competencies are needed to be successful there? Delta the trip Do we need any competence to travel? Today Is there anything that needs to be unlearned? Three Levers of Change Management Rewards / Consequences what will happen... Delta the trip The Future State to who performs well? to those who don t? to who moves and helps others move? to those who don t? Today to today s attitudes, behaviors and results that we need to stop? any positive consequence to eliminate? any negative consequence to institute? 10
11 Aligning the Three Levers align and integrate Communication Learning Consequences supplier R&D Logistics inbound logistics Planning Engineering i Logistics internal logistics Finance Quality HR Production Distribution Sales production A production B distribution client Strategically Managed Changes Focus on the strategically defined changes Avoid conflicts, maximize synergism Identify the impact on the functions that manage the SC Associate to the strategic direction, not initiatives or projects make changes sustainable 11
12 What have we discussed? 1. Changes and the Supply Chain 2. Effects of letting projects decide changes 3. How to integrate changes across projects 4. Align the levers of Change Management 5. Whymove to strategy driven changes Questions? Experiences to share? 12
13 To contact us Daniel Druwe Araujo Milton Carrera Maretti T 2 People ddruwe@t2people.com miltoncm@t2people.com for more on Change Management Thank you! 13
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