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Innovation Roundtable: Shared Services Week in Orlando, March 2009
Participants
Michael T. Lockard
VP, Wal-Mart
WAL-MART DIVISION Financial Shared Services
Phyllis Alesio
Chief Operating Income
BI Services Center
Richard J. Rowan, Jr.
Director of Service Program Shared
TRW Automotive
Gary Critchley
Head of Finance Shared Services / SCM
Marks FINANCE & Spencer shared services
Paul Bartley
Director, Program Support Center
U.S. DEPT OF HEALTH AND HUMAN SERVICES
Sson: Innovation is much discussion in the shared services today. What does that mean? Michael Lockard: Innovation for us is doing something new, do it differently, in fact, we out the dictionary. It is not about technology or the state of the art, or best in class. What's new for Wal-Mart, we are only a 47-year-old, the company-no necessarily new to others. In fact, we had to do a lot of recycling, because many people still believe that innovation is fundamentally about technology. Our subcommittee focuses on innovation processes and technology: the right people and right process technology. Much of this is about the design process. How is designed for innovation in the process? And to be honest, that's what we're lacking. At the heart of customer contact, how to involve customers in the current design? Self service, Level 1, Level 2, Level 3 … Here is where we innovate, in terms of how to design the process. It's in supplementary part are you going to get the most out of their valuable comments. For example, how part-time, which affects the client, do things differently? Reward personal giving $ 1,000 for each contributing innovative idea, as a result of a process that is changed for the better. But to answer your question specifically, how I handle innovation in the design process? – In fact, project managers manage the strategy, but the client is facing up with the ideas associated with, and are rewarded by presentation and implementation of these ideas.
Phyllis Alesio: For us, Boehringer-Ingelheim, innovation is seen as competitive advantage that everyone must participate in, especially when you have customers like Wal-Mart are just an innovator. They are hoping that their trading partners to do the same. So for us, innovation is about doing business successfully for the future and add value to the customer. It is linked to the goals and objectives of all for the year. We are now really trying to determine what tools can be used to help people to be innovative and reward them, because, really, in the past that were rewarded for doing what they were told to do and not think outside the box.
Richard Rowan: I think Phyllis type referred to our definition innovation, which is to think outside the box. For me, one of the challenges would be in the area of personnel, especially in North America, with restrictions travel have in place now, and everything. I'm going to spend much more time in the States these days, and I've been trying to attract people who can apply, "Why Why not? Why can not we do this or that? "I see a lot of this kind of thinking in my global processing centers. As for out of the box, we're trying going into areas that historically have not been involved in. One of the reasons I like coming to this conference and last year I took my entire staff, is because it is an opportunity to meet with the leading edge as far to the suppliers concerned. The showroom is one of the best places to find what you are leaving OB10 and others in this space, for example. These organizations can help you find the resources they need to promote innovation.
Gary Critchley: Innovation is one of our fundamental values in Marks & Spencer. It is about changing the culture, the DNA wiring, and make people think, every time you sit down and watch a process, "Is this the best way to do it?" If everybody is doing that, then we have the power to make things happen. Once we have the spirit of ongoing innovation, then we add some structure around it. We train people in the "creative thinking", for example. Or let's run "opposite outrageous" sessions to get the flow of ideas. We give people the tools so they can start thinking about how to get there. Other things that we have introduced are "outcome thinking", where we focus on results-then we first find a way to get there. In other words: forget the process.
For larger projects, we will redesign a process-the bike into a wall and take it apart, seeing what's added value and what does not. So there are two approaches: one is the creation of a mental state, and then create a structure and framework around the way you think. The frame is the easy part: many people can tell you how evaluate and redesign. Culture is the hard part because it requires energy, commitment and is more difficult.
Bartley Paul: I think he defines innovation as "a way of thinking changed." Usually in response to something outside the organization that makes you have to change, to take a better understanding of what their customers need. Otherwise, it's just change for change's sake, and there is no value there.
There a number of ways that are driving innovation in the Program Support Center: first, by empowering managers to make changes and propose changes. Right now we are very hierarchical, pretty much run up and down. So there's no reward for innovation. If you have a great idea and try to implement it, but not the favorite idea of someone at the top, you may be frustrated. We are trying to change that. I'm trying to change my part of it, trying to get the people to events like this to get ideas and then give them the opportunity to make changes. It can be as simple as putting something online. What is important is to offer rewards as others have mentioned. We offer cash prizes for the ideas about and try to reward people immediately.
Sson: Let's look at cultural challenge to start. Gary mentioned encourage creative thinking in Marks & Spencer. Can you spend on how you're doing that?
Gary Critchley: We are first trying to empower people and get rid of gradism, instead, foster a democracy of ideas. That starts with the leadership team, because if closing the ideas will not work. Another thing is to provide opportunities for people to be empowered. We have a meeting place that is large enough, and we have asked our staff: What do you do with it? So he became a laboratory of ideas, basically an empty room with bean bags, which offers a space that is first theirs, and second, a place in which to be creative. So we have given them some ownership. We also included a number of tools to help them think so creative. So say the results have some thoughts and know what the results have to be, but are stuck on how to get there. We offer a of tools that includes things like "Opposites outrageous. works like this: Q-What do you do? A people-Pay on time. Question-Ok, and what is the opposite of that? Response-not to pay them all. … This creates a great amount of creativity and a lot of ideas in a relatively short.
The laboratory of ideas is used for our "Lean Finance" programs. One week each month we have been there two processes. We will bring the owners of the process from the ground and give them the opportunity leaving her job and the phone, and think whether they are doing things the best way possible.
We have a portfolio of investments and know exactly what "Lean" programs that are investing in. Now I know we have 10 programs, nine of which are loss leaders, and one of whom is a star. When that is paid Again, going to fund all the others. In addition, we operate these projects and Kaizen Blitz week, which means just five days to assign the value, measure, redesign and implement. It's all about the action. They are not gone the route of Black Belt however. It's more about doing things to focus on the credentials.
Phyllis Alesio: Gary, what was one of their "AHA" moments? Could you share that?
Gary Critchley: Well, one springs to mind concerning the licensing of SAP and we will save about $ 120,000. A junior level type that occurred to him. We know there are some people in business posed only one or two purchase orders a month, while we have a core team. Therefore, streamlining the people with low transaction volume, got rid of his license and his piece is placed in the center
Sson: Phyllis, what are you doing in your organization to foster new ideas?
Phyllis Alesio: We have a couple of new initiatives. One is to go beyond the pharmaceutical industry. The fact that we have done this for 120 years does not mean it the right way. What is the automotive industry doing? Is there some application that can introduce and implement, or perhaps modified? We also have launched a corporate initiative, through which the entire company is trying to redesign the way we work. It is called the workplace of the future. "Telework is a big part of this. It is getting rid of cubicles and be a mobile worker, working from home or Starbucks. But when you're here at work, it is to collaborate and exchange ideas. It is about creating a workspace that supports this, with lots of light and windows tested effectiveness so that more creative people.
Michael Lockard: As we are one of Lean Six Sigma organization, we are not, of course, that innovative. It is more likely to teach a philosophy DMAIC. Most likely to put much emphasis on certification rather than actual results, so I'm definitely is taking the "two processes of a month" idea to me. I think we need to refocus on making something a reality rather than have 20 people certified. Could be rewarding the person much compared to the process and results. I think I'll be stealing a lot of ideas of Marks & Spencer!
Richard Rowan: We are very focused on building the side of the culture of our operations. At the moment I'm focused on North America. We need to improve processes and we ensure that internationally. What I found is that our shared services group in Poland is, of course, doing this kind of thinking for themselves. That is not what I'm seeing here. At the bottom level, what I'm trying to do is build on the culture and at this point is to get the right people in place. But I have meetings all over the world with the entire group in trying to conduct this sort of thing. Too often, you are busy just hitting the next delivery and objective. It is interesting because the supervisors have been so focused on delivering that there is a natural step to start thinking creatively leverage their resources, particularly if that involves sending offshore work. The scope of what we do in North America right now is very small compared to what we are doing in Poland and Mexico. We are constantly under pressure as staff reductions and the costs in question are, as expected from the automotive industry. I'm trying to build a creative way my world organization, shift work, and set some goals. It is actually working with people and show them the possibilities. I'm trying to push the process innovation as a whole by driving through human resource assessments each year. My role is to be a catalyst. Years ago I was more focused on area of operations. Now I'm trying to drive the future.
It is difficult to create an environment where people are not afraid to bring things or make mistakes. The possibilities there are amazing, from a technological standpoint. Our job is to make things happen with the resources we have. It's kind of like chess, except that playing with multiple cards worldwide. So do not be shy about asking for resources, you never know when someone will say yes.
Phyllis Alesio: You had mentioned that Poland does a good job with the processes. Can you talk about that a little more?
Richard Rowan: Party of is that we are a relatively young organization in Poland, and culture is one that is keen to succeed and do everything necessary to succeed. Recently World have changed Ownership Process accounts payable of one of our peoples, based on a person in Poland and the exponential step up has been incredible, he is so proactively go out there and
doing things. The group that I have now in the U.S. is one that has been around for a while. I'm almost looking for ways to improve my turnover here in the U.S., it is too low. So we've hired people in the U.S., I have been interviewing to make sure we're hiring people who do other uncomfortable, that interrupt. In the general ledger, we hired someone who recently has gone far and above the norm. This is a person who only a few years of college. That's where we begin to see what is possible. long tradition people would have said much of what has recently been achieved is not possible. So This opens your mind to possibilities. The new centers in Poland and Mexico have now everyone on edge. I'm trying to take advantage of this, so rises worldwide.
Paul Bartley: This is something that is going well. One initiative that I launched at this time is to empower people at the front. We offer 60 different services, including finance, procurement, information technology, occupational health services, etc. The 60 directors to run the services vary what they think their job entails. To date we have concentrated on improving some areas, one of which is the journey. We run trips for all of HHS, so any office clerk who goes everywhere use our system to create an authorization, the travel book, and then get the reimbursement on the back end. The manager brought us a year ago has become the place completely around. The customer interface is now much easier, communications policy and how using this system have improved, and what you can and can not do it all much clearer now. We had a problem with the online system for a week a while ago, but the manager had established the lists segmented on the basis of hearings likely (system users, approvers, travelers, etc.) and he was able communicate with each group to tell them what they needed to know in the case time to do the job. In fact, it turned out to be such a crisis after all. Now I use it as an example. For example, I asked my group list: what if the payroll is closed? Have you thought about what you do? Who speaks? How?
Now I'm trying to create a new role, to be called a Service Manager role, to help other managers are empowered to improve their services as well as the travel manager. At this point my managers tend to be very technical. If you are the chief of security, you probably know a lot about security, but probably not much to do with budgets or hiring people. We are challenging each of the 60 managers to obtain these business skills "and I think what will happen is that some of those who've been around a while, you do not have these extra skills, I think it's too much work and let someone else do it. They will become experts in the functional area and someone with more business acumen can step into the role of department head. It is actually the creation of business owners. I be able to do each of these 60 people: "Why is the budget this way?" and I say, "Well, go ask the type of budget." We need people to go into a role of technical experts do not necessarily sweet, but knowing how to enter and ask questions. That's innovation in and look at things from a differently.
Michael Lockard: What has changed is that the old model is no longer sustainable. What used to be if you were the expert, you could get you in and solve problems. If you saved a couple of percentage points each year, who got a raise. Now we want 10 to 20% improvement each year. You can not do it yourself, so you have to get the right people on board. I think we see more programs that people now because we are all aware we have to be the people strategy. Our jobs have changed, we are more the type of general manager now, and we are trying to find people like us to help to raise the bar.
Bartley Paul: agreed. I think there are historical reasons. When all this started, was the work of the nominee to drive costs to payroll processing that could be leaner. Now is the time to put someone in there that is not so much a technical expert question: "Why are we paying people in this way at all?" That is the person who can lead us to the next step. When you reach that high level and want another 15% cut, it takes a quantum leap to something else.
Michael Lockard: I remember the 80s, when everything had to pay to increase it gradually. So you worked in struggling to get more than 3-4%. It was then that the companies are still growing, and as a percentage of revenues, expenditures were made under control. Now, with very poor sales, it's all about cost control and discipline. We have never been so valuable to our businesses. This is a time for us to shine.
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About the Author
Barbara Hodge has edited Shared Services News since 2000. She is responsible for all content and format, and develops forward themes with the support of the Advisory Board.
Prior to Shared Services News, Barbara was Editorial Director at Armstrong Information, a London-based specialist publishing firm, with responsibility for the launch and editorial content of a number of management journals including corporate communication, change management and business process reengineering. “Shared services and outsourcing,” says Barbara, “was a natural progression.”
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