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Fiber
Optimization Strategic Initiative
Background: An
integrated pulp and paper corporation
undertook a strategic initiative targeted to
reduce fiber (key raw material) cost by 5%.
The strategic initiative was to cross all
three major business units and involve key
suppliers. Given the large volume of fiber
used in the corporation, a small improvement
in fiber utilization would have a significant
dollar impact in profit and shareholder value.
Historically, divisions and operating units
would not share technologies, processes and
procedures that improved fiber utilization. At
times, improving fiber cost in one area had a
net negative impact on the value chain cost
structure. Cooperation between operating units
and facilities within divisions was an issue.
There was a high probability that the project
would produce identified savings that would
not be realized because of resistance, lack of
commitment and understanding.
Our consultants were
called in to: Facilitate teams that identified
optimization opportunities at key facilities
and regions. Document the project's history
and process. Serve as project managers and
organization consultants to the project, which
had at times 120 members from both inside and
outside the client organization. The project
was truly a virtual project with only two
people assigned to the project on a full time
basis.
Our Approach: We used task-focused facilitation
with strict deadlines to drive the opportunity
identification teams. Each manufacturing
location had coordinators who oversaw local
initiatives and shared findings with other
locations. An implementation methodology was
developed that assisted manpower-short
facilities in getting projects documented,
proposed and funded. Once funded, projects
could have manpower charged to them. A
comprehensive communication plan and protocol
was created that provided needed information
to executives, project team members,
facilities personnel and corporate support
groups. A project/change methodology was
specifically designed for key initiative type
projects.
Results: Project
goal of 5% realized (not identified) savings
was reached 14 months into a 24-month project.
Project was cash positive (realized savings >
project costs) at 90 days. Annualized savings
realized at the end of the project were three
times the goal and 20 times the total project
cost. Several people from the project were
promoted based on exposure and experiences
provided by the project.
Converting Operations
Productivity Improvement / Culture Change Pulp
& Paper Mill
Challenges: Save
$450,000 a year in the areas of rewinds,
broke, unscheduled downtime and overtime in
order to prevent downsizing. Design work
systems for new extruder production lines that
optimize performance. Improve quality to meet
the increased demands of customers. Create an
environment that adapts naturally to change.
The average age of the work force was 55.
Our Approach: Facilitated the Redesign of Human
and Technical Systems to Optimize
Performance. Provided Team-Based and
Technical Training. Supervisors were
Re-Trained to Become Coaches. The Operational
Structure was Redesigned around Teams and
Quality Principles.
The line was
designed to allow team members time to
troubleshoot, hold plant meetings, train each
other and manage themselves. Teams were
trained to be cross-functional,
customer-driven, quality-focused, and
continuously improving. Quality practices were
designed into the system, including
customer-driven teams visiting clients at
least once a month for feedback on needed
improvements, complaints, etc. Processes were
initiated for information to be shared and
improvements made. Alan H. King worked with
the client to achieve ISO compliance.
Results: Increased
profits. Improvements in recovery of
materials. Prevented downsizing. Flexible,
change-ready teams. ISO accreditation.
All economic
indicators have improved. Recovery of
materials is up from 87% to 92%. The client
achieved a savings of $2 million for the year
and downsizing was prevented. Profits have
increased from $17 million to $42 million.
Teams are able to adapt quickly and easily to
change for FDA regulations, product changes,
ISO compliance, etc.
Change
Management/ IT Integration/ Program Management
Background: A
diverse utility, providing gas and electric
service in eight states and internationally,
was reengineering its core processes while
simultaneously implementing a system-wide
upgrade of the entire IT infrastructure. Seven
major initiatives were underway that included
collapsing 123 call centers into three,
implementing PeopleSoft ERP system for all
enterprise support functions, developing a
system-wide Customer Information System,
automating the mapping and network layout for
a wires and pipes, developing a computer-aided
dispatch of service personnel and preparation
for Y2K. The utility determined it did not
have the appropriately skilled people to
manage the integration of all changes with
ongoing business needs. Our consultants were called to assist the project managers, project
teams, and overall program manager in
preparation and implementation of the changes.
Our Approach: We began by providing
training in change management techniques for
key personnel and detailed change plan
development for the call center team. Our consultants worked with the project
manager and team to prepare for an almost
immediate implementation. Concurrently, we assessed each major initiative to
determine how best to add value to their
efforts. Our consultants worked closely with
each team to prepare time estimates, develop
detailed implementation plans, consult with
project team members, and train designated
internal personnel to assume the duties of
change management over the life of the
project.
At the program
level, we consulted with the overall
program managers and executives. The focus was
to ensure that all change initiatives were
implemented in a manner that did not overtax
the organization's ability to implement and
assimilate the myriad of changes that were
preparing them for future success in a
deregulated, competitive business environment.
Results: Call
Center consolidation, under tremendous time
constraints, was implemented successfully
without loss of customer contact and quality
and there was a significant drop in complaints
while operating with 1/3 the personnel.
Customer Information System and Y2K compliance
accomplished on time and under budget, and was
used as a model at several technology
conferences of the impact of building
appropriate change management methodologies
into project plans. Implementation timelines
were shifted for several major segments that
would have resulted in major systems overloads
and negative customer impact. Detailed change
management plans were integrated with overall
project plans to ensure successful
implementation. Consistent approach to change
minimized resistance and increased success of
projects.
Self-Directed Team (SDT) Implementation
Background: Our consultants began by assessing the current status of
an internal effort at Self-Directed Team (SDT)
implementation within the Reservation and
Sales department of a major U.S. airline.
Recommendations were needed on how the process
could be improved. The department had
approximately 12,000 employees in eight major
locations across the country.
Our Approach: We surveyed 300
participants in the initial teams, conducted
focus group interviews, and facilitated a
session with all leaders to determine what
changes, if any, needed to be incorporated to
improve the implementation. The results
included a clear identification of two areas
that needed immediate attention-role
clarification for all people in the SDT
environment, and development of performance
measures appropriate for SDTs.
We then
facilitated two design teams to develop roles
and measures for the SDTs. The results
included a new design with clearly defined
roles for all members from District (facility)
Manager to the front line representative.
Concurrently, measures were developed that
clearly connected job behavior to department
and corporate goals and provided focus on team
rather than individual performance.
We worked closely with department staff and
project leadership to ensure that the changes
recommended could be supported from a values,
strategy and business perspective. A Steering
Team was instituted to ensure coordination of
changes across the department. We provided training in Managing Change, the Role
of the Manager and other areas for
self-directed team and team leadership
development.
Results: The
results prompted management to accelerate the
self-directed team implementation, begin a SDT
structure at two new greenfield facilities,
and included improvements in:
Productivity:
Occupancy rate improvement of over 6%, equal
to having 200 extra sales people at no
additional cost. Savings of 192 employees by
elimination of new hire quality assurance
reps. Length of time for new hires to become
fully productive reduced from seven months to
three months. Call average handling time (AHT)
for new hires reduced by 18%. Service
Quality: Calls to the customer service
help desk reduced by 9%. Customer compliments
increased by 33%. Developed new quality
measures that aligned with customer service
needs. People: Attrition of new hires
reduced from 17% to 4% in the first six
months. Heightened feelings of ownership by
SDT members. Improved communication within and
between teams.
Culture
Change/Training Initiative
Challenge: Leading
telecommunications company was not in a
competitive environment prior to deregulation.
The Company was complacent and non-business
oriented in its regulatory mindset. They
recognized the need to re-shape the culture
into a more competitive, market-sensitive
organization. We were charged with
developing a program to train over 27,000
managers in multiple locations to think
competitively.
Our Approach: We designed a five-day program
entitled, "Managing in a Competitive
Environment" that taught managers to: Think
independently. Take risks. Put the customer
first. Manage people. Be leaders. Clarify
their role in a competitive environment.
Results:
Highly-skilled internal trainers. A
company-wide focus on customers. Clear
understanding of the managers' role in a
competitive marketplace.
We trained the company's internal trainers to
successfully facilitate the course around the
country. The program was successfully
delivered to over 27,000 managers across the
country by a host of extremely competent
internal trainers. Trainers continuously
evaluate the course contents for relevancy.
The program is so effective, it continues to
be used to develop managers. |
