SlideShare ist ein Scribd-Unternehmen logo
1 von 29
Downloaden Sie, um offline zu lesen
Leading
Organisational
Change
Case: Woodward Governor 1996
Oliver Parker
Warwick MBA 1994-95
Woodward Governor
The Company & History
• Woodward Governor Company: est.1870, HQ; Rockford (Illinois),
3,300 employees
• Products & Services: design, manufactures & distribution of energy
control components & systems.
• Key Customers: OEMs (Caterpillar, GE, Honeywell, Rolls Royce…)
• Target Market Sectors: Power Generation, Transportation, Process
Industries, Aerospace
• Organisation Culture - paternalistic.
Woodward Governor: What
Products?
Custom Control Systems Solutions
Woodward Governor
Company
Why Was Change Needed?
• Marketing Mix – Product (poor quality), Price (high), Promotion
(what?) & Place (delivery)
• Product-led company - tried to dictate what customers would receive.
• Market Changes – WGC didn’t know what customers wanted…
changing markets, technologies & ‘new’ entrants!
• B2B Accounts (OEMs) – rationalisation of suppliers & partners
• End-user Applications – new skills needed, e.g. project management
(‘turnkey’ solutions)
• New Acquisitions - into the organisation structure
Woodward Governor Company
Identified Issues & Problems
The Change
Programme
A Case for Change
Create Vision / Mission
Measure Results
Internal Capabilities
Establish Goals
Determine Strategies
Business Plan Integration
Deployment & implementation
External Environment
Shareholder SatisfactionCustomer Satisfaction Member Satisfaction
Assess Business Performance
Change
Programme
‘Road Map to Business
Excellence’
•$500M in Sales
2003
•40% Market Share
•20% E.F.O.
Change Programme
The ICG Mission & Goals
“Woodward Industrial Controls Group is in the business of
designing, manufacturing, applying, installing and servicing
components and systems for the control of industrial engines
and turbines greater than 300 HP and their driven loads”
Steam
Turb
WGC
Change Programme
Market Opportunity
Automotive
&
High Speed
Industrial Control
&
Plant Control Systems
Market Opportunity $2.1 Billion
Current Market Share 16%?
Slow &
Medium
Engines
Gas
Turb
Hydro
Turb
•$ 500 million,
•40% Market Share,
•20% EFO
Change Programme
The ICG Strategic Plan
Total Customer Satisfaction
QDRC
Invest in People
Grow market position
$ 300M OEM partnership
Winning products
Push pull sales
$ 100M End User sales
$ 100M Distribution
Quality sales
Short development times
Smart components
System / solution capability
Change Programme
Winning OEM Business / Push - Pull
Sales
OEM
Packager
End User
$
$
$
+
+
=
Maximized
Profitability
Components &
Software
Services &
Aftermarket
Systems &
Integration
Push Pull
Change Programme
Overt Signals
Change Programme
Is this a Leader of Change?
Change Programme
that was the plan…now
implementation
• MRPII Business Operations – CP built on this
foundation…also TQM & Six Sigma
• Total Training - ‘Members’ & Agents
• Change Strategy – take ownership &
cascade down…
• Organisation Structure – create new…
• Sell Change to Stakeholders –
– EuroDistribution Conference 1998
Implementation
based on MRP ll
MRP ll Implementation
Woodward & Parker:
an unholy alliance!
• Aftermarket Business Manager – hired 1996,
based in Reading, UK plant
• Objective - from ‘reactive’ Service & Repair to a
‘proactive’ Sales & Services to end-user customer
• Aftermarket Team - ‘Direct’ parts, service, training
(15) + ‘Indirect’ services agents (10) for EMEA
• OP – first job after Warwick MBA (1995)
– Full of tools and models…and jargon…
Oliver Parker MBA
so what did I do?
• Reviewed existing Aftermarket organisation &
service agents (‘AISF’)
• UK Aftermarket ‘back-office’
• Focus: proactive sales solutions.
• Regional distributor network model
• Training - EuroAftermarket Conference 1998
• Co-ordinate WGC ‘Distribution’ Plan ($300M)
• European Aftermarket organisation structure.
EURODISTRIBUTION
Athens ‘98
ICG Global Aftermarket
Proposed Structure
EuroAftermarket
Reading & Hoofddorp BUs
TBA
Trainer
Mechanical
TBA
Training Manager
Electronics
Distribution Network
CDs, ADs, AISFs
'The Salesforce'
John Rees
Sales Manager
TAG
Audit
Workshop
3/4 Technicans
Lance Lennon, Ivor Doughty,
Kevin Colman, ?
Service Engineers
Don Lees
Gary Vockins
Will Travell
Dave Norris
Service Manager
TAG
Wkshp/Field Svce
Reading Responsibility:
Northern Europe
MIddle East
Africa
TAG Group
2 Engineers
Paul Magrijn
TAG
Audit
Training
Distribution Network
CD & AISFs
'The salesforce'
Gerben Seevinck
Sales Manager
Service Engineering Team
Jan Dijkstra
Service Manager
Ron van der Gaarden
Michiel van der Maas
Customer Service Team
Workshop Technicians
Fedinand Hanson
Workshop Manager
Repair & Overhaul
Hoofddorp Responsibility:
Western Europe
Eastern Europe
Oliver Parker
Rdg Aftermarket Bus. Mgr.
Frits Feddema
MRP II Planning Manager
EuroAftermarket Business Plan
EuroAftermarket
Distributor Network Regions
Middle
East
Africa
Eastern
Europe
Western & Central
Europe
Scandinavia
$320K
$290K$800K
$409K
$2.7M
What Really Happened
• Collaboration & Co-ordination (informal):
– EMEA, Americas & Asia-Pacific…co-operative, but…
• EuroAftermarket (organisation & training):
– conflicting interests (UK vs. NL plants)
• Regional Networks:
– Middle East; first to ‘roll-out’
– Other Networks; slow & problematic (Nordic, SA)
• Systems Solutions Sales:
– New agents appointed with WGC Aftermarket support
• …too slow in launch, implementation & results!
What Really Happened?
RE-LAUNCH OF CHANGE
PROGRAMME…
3 YEARS LATER!
Resistance from ‘Old
Guard’ and other
vested interests
Not resolved…
WHAT
WOULD
YOU
DO?
My Reflection
• Too timid…
• Strategic Planning…
– searched for too much info that wasn’t there!
• Took too long to implement
• Needed to create stronger coalitions
• Needed to take tougher ‘HR’ decisions
• Tougher performance management
Faster, Decisive & Results-Driven

Weitere ähnliche Inhalte

Andere mochten auch

Andere mochten auch (6)

2013 sblo training woodward-m schnorenberg 6-10-13
2013 sblo training woodward-m schnorenberg 6-10-132013 sblo training woodward-m schnorenberg 6-10-13
2013 sblo training woodward-m schnorenberg 6-10-13
 
DTE Presentation
DTE PresentationDTE Presentation
DTE Presentation
 
505 de vol1 copy
505 de vol1   copy505 de vol1   copy
505 de vol1 copy
 
Governor
GovernorGovernor
Governor
 
Linear Programming 1
Linear Programming 1Linear Programming 1
Linear Programming 1
 
Gas turbine course
Gas turbine courseGas turbine course
Gas turbine course
 

Ähnlich wie MoC in Practice (OpExp - Presentation)

Beyond Operation Excellence - Gavin Gillespie, Survitec Group
Beyond Operation Excellence - Gavin Gillespie, Survitec GroupBeyond Operation Excellence - Gavin Gillespie, Survitec Group
Beyond Operation Excellence - Gavin Gillespie, Survitec GroupInvest Northern Ireland
 
Perficient's Reliable Asset World Keynote
Perficient's Reliable Asset World KeynotePerficient's Reliable Asset World Keynote
Perficient's Reliable Asset World KeynotePerficient, Inc.
 
ARC's Greg Gorbach CPM & Operations Mgmt Presentation @ ARC Industry Forum 2010
ARC's Greg Gorbach CPM & Operations Mgmt Presentation @ ARC Industry Forum 2010ARC's Greg Gorbach CPM & Operations Mgmt Presentation @ ARC Industry Forum 2010
ARC's Greg Gorbach CPM & Operations Mgmt Presentation @ ARC Industry Forum 2010ARC Advisory Group
 
Zenithar General Company Presentation 2022
Zenithar General Company Presentation 2022Zenithar General Company Presentation 2022
Zenithar General Company Presentation 2022Zenithar Company
 
Bus106 wk10 ch9 producing world class goods and services
Bus106 wk10 ch9 producing world class goods and servicesBus106 wk10 ch9 producing world class goods and services
Bus106 wk10 ch9 producing world class goods and servicesBhupesh Shah
 
Jay Rao Career Portfolio
Jay Rao Career PortfolioJay Rao Career Portfolio
Jay Rao Career PortfolioJay Rao
 
Mann-India_SAP_Service-Offering_IS-Oil and Gas
Mann-India_SAP_Service-Offering_IS-Oil and GasMann-India_SAP_Service-Offering_IS-Oil and Gas
Mann-India_SAP_Service-Offering_IS-Oil and GasMann-India
 
Embedded Internship review
Embedded Internship reviewEmbedded Internship review
Embedded Internship reviewHadiRazak4
 
Schneider Electric Presentation at the Supply Chain Insights 2018 Conference
Schneider Electric Presentation at the Supply Chain Insights 2018 ConferenceSchneider Electric Presentation at the Supply Chain Insights 2018 Conference
Schneider Electric Presentation at the Supply Chain Insights 2018 ConferenceLora Cecere
 
S36 Industry Forum - Communications Energy Utilties - v05
S36 Industry Forum - Communications Energy Utilties - v05S36 Industry Forum - Communications Energy Utilties - v05
S36 Industry Forum - Communications Energy Utilties - v05Brian Booden
 
Winners Announced in 2011 Global Awards for Excellence in BPM & Workflow
Winners Announced in 2011 Global Awards for Excellence in BPM & WorkflowWinners Announced in 2011 Global Awards for Excellence in BPM & Workflow
Winners Announced in 2011 Global Awards for Excellence in BPM & WorkflowFuture Strategies Inc.
 
worldclassmanufacturing-111213232400-phpapp01.pptx
worldclassmanufacturing-111213232400-phpapp01.pptxworldclassmanufacturing-111213232400-phpapp01.pptx
worldclassmanufacturing-111213232400-phpapp01.pptxChandrasen Sharma
 
Operations Management Solution – Driving Safety and Profitability One Shift a...
Operations Management Solution – Driving Safety and Profitability One Shift a...Operations Management Solution – Driving Safety and Profitability One Shift a...
Operations Management Solution – Driving Safety and Profitability One Shift a...Yokogawa1
 
Genpact Logistics Analytics - Unlock hidden value from your logistics operati...
Genpact Logistics Analytics - Unlock hidden value from your logistics operati...Genpact Logistics Analytics - Unlock hidden value from your logistics operati...
Genpact Logistics Analytics - Unlock hidden value from your logistics operati...Genpact Ltd
 
Italy MAG Wire Business case _Scada system Jan 2016 english version
Italy MAG Wire Business case _Scada system Jan 2016 english versionItaly MAG Wire Business case _Scada system Jan 2016 english version
Italy MAG Wire Business case _Scada system Jan 2016 english versionLuizclaudiomatto
 
Case Study on Lucas TVS- A Journey towards Manufacturing Excellence
Case Study on Lucas TVS- A Journey towards Manufacturing ExcellenceCase Study on Lucas TVS- A Journey towards Manufacturing Excellence
Case Study on Lucas TVS- A Journey towards Manufacturing ExcellenceKetan Mokal, CSSGB
 

Ähnlich wie MoC in Practice (OpExp - Presentation) (20)

Beyond Operation Excellence - Gavin Gillespie, Survitec Group
Beyond Operation Excellence - Gavin Gillespie, Survitec GroupBeyond Operation Excellence - Gavin Gillespie, Survitec Group
Beyond Operation Excellence - Gavin Gillespie, Survitec Group
 
Perficient's Reliable Asset World Keynote
Perficient's Reliable Asset World KeynotePerficient's Reliable Asset World Keynote
Perficient's Reliable Asset World Keynote
 
ARC's Greg Gorbach CPM & Operations Mgmt Presentation @ ARC Industry Forum 2010
ARC's Greg Gorbach CPM & Operations Mgmt Presentation @ ARC Industry Forum 2010ARC's Greg Gorbach CPM & Operations Mgmt Presentation @ ARC Industry Forum 2010
ARC's Greg Gorbach CPM & Operations Mgmt Presentation @ ARC Industry Forum 2010
 
Zenithar General Company Presentation 2022
Zenithar General Company Presentation 2022Zenithar General Company Presentation 2022
Zenithar General Company Presentation 2022
 
Ryder Systems Inc
Ryder Systems IncRyder Systems Inc
Ryder Systems Inc
 
Bus106 wk10 ch9 producing world class goods and services
Bus106 wk10 ch9 producing world class goods and servicesBus106 wk10 ch9 producing world class goods and services
Bus106 wk10 ch9 producing world class goods and services
 
Jay Rao Career Portfolio
Jay Rao Career PortfolioJay Rao Career Portfolio
Jay Rao Career Portfolio
 
Mann-India_SAP_Service-Offering_IS-Oil and Gas
Mann-India_SAP_Service-Offering_IS-Oil and GasMann-India_SAP_Service-Offering_IS-Oil and Gas
Mann-India_SAP_Service-Offering_IS-Oil and Gas
 
Embedded Internship review
Embedded Internship reviewEmbedded Internship review
Embedded Internship review
 
Schneider Electric Presentation at the Supply Chain Insights 2018 Conference
Schneider Electric Presentation at the Supply Chain Insights 2018 ConferenceSchneider Electric Presentation at the Supply Chain Insights 2018 Conference
Schneider Electric Presentation at the Supply Chain Insights 2018 Conference
 
S36 Industry Forum - Communications Energy Utilties - v05
S36 Industry Forum - Communications Energy Utilties - v05S36 Industry Forum - Communications Energy Utilties - v05
S36 Industry Forum - Communications Energy Utilties - v05
 
Winners Announced in 2011 Global Awards for Excellence in BPM & Workflow
Winners Announced in 2011 Global Awards for Excellence in BPM & WorkflowWinners Announced in 2011 Global Awards for Excellence in BPM & Workflow
Winners Announced in 2011 Global Awards for Excellence in BPM & Workflow
 
Global Awards for BPM and Workflow
Global Awards for BPM and WorkflowGlobal Awards for BPM and Workflow
Global Awards for BPM and Workflow
 
worldclassmanufacturing-111213232400-phpapp01.pptx
worldclassmanufacturing-111213232400-phpapp01.pptxworldclassmanufacturing-111213232400-phpapp01.pptx
worldclassmanufacturing-111213232400-phpapp01.pptx
 
Operations Management Solution – Driving Safety and Profitability One Shift a...
Operations Management Solution – Driving Safety and Profitability One Shift a...Operations Management Solution – Driving Safety and Profitability One Shift a...
Operations Management Solution – Driving Safety and Profitability One Shift a...
 
Genpact Logistics Analytics - Unlock hidden value from your logistics operati...
Genpact Logistics Analytics - Unlock hidden value from your logistics operati...Genpact Logistics Analytics - Unlock hidden value from your logistics operati...
Genpact Logistics Analytics - Unlock hidden value from your logistics operati...
 
32. ICV Srbija sastanak, SUPPLY CHAIN
32. ICV Srbija sastanak, SUPPLY CHAIN32. ICV Srbija sastanak, SUPPLY CHAIN
32. ICV Srbija sastanak, SUPPLY CHAIN
 
HNA Capabilities
HNA CapabilitiesHNA Capabilities
HNA Capabilities
 
Italy MAG Wire Business case _Scada system Jan 2016 english version
Italy MAG Wire Business case _Scada system Jan 2016 english versionItaly MAG Wire Business case _Scada system Jan 2016 english version
Italy MAG Wire Business case _Scada system Jan 2016 english version
 
Case Study on Lucas TVS- A Journey towards Manufacturing Excellence
Case Study on Lucas TVS- A Journey towards Manufacturing ExcellenceCase Study on Lucas TVS- A Journey towards Manufacturing Excellence
Case Study on Lucas TVS- A Journey towards Manufacturing Excellence
 

MoC in Practice (OpExp - Presentation)

  • 1. Leading Organisational Change Case: Woodward Governor 1996 Oliver Parker Warwick MBA 1994-95
  • 2. Woodward Governor The Company & History • Woodward Governor Company: est.1870, HQ; Rockford (Illinois), 3,300 employees • Products & Services: design, manufactures & distribution of energy control components & systems. • Key Customers: OEMs (Caterpillar, GE, Honeywell, Rolls Royce…) • Target Market Sectors: Power Generation, Transportation, Process Industries, Aerospace • Organisation Culture - paternalistic.
  • 3. Woodward Governor: What Products? Custom Control Systems Solutions
  • 4. Woodward Governor Company Why Was Change Needed? • Marketing Mix – Product (poor quality), Price (high), Promotion (what?) & Place (delivery) • Product-led company - tried to dictate what customers would receive. • Market Changes – WGC didn’t know what customers wanted… changing markets, technologies & ‘new’ entrants! • B2B Accounts (OEMs) – rationalisation of suppliers & partners • End-user Applications – new skills needed, e.g. project management (‘turnkey’ solutions) • New Acquisitions - into the organisation structure
  • 7. A Case for Change Create Vision / Mission Measure Results Internal Capabilities Establish Goals Determine Strategies Business Plan Integration Deployment & implementation External Environment Shareholder SatisfactionCustomer Satisfaction Member Satisfaction Assess Business Performance Change Programme ‘Road Map to Business Excellence’
  • 8. •$500M in Sales 2003 •40% Market Share •20% E.F.O. Change Programme The ICG Mission & Goals “Woodward Industrial Controls Group is in the business of designing, manufacturing, applying, installing and servicing components and systems for the control of industrial engines and turbines greater than 300 HP and their driven loads”
  • 9. Steam Turb WGC Change Programme Market Opportunity Automotive & High Speed Industrial Control & Plant Control Systems Market Opportunity $2.1 Billion Current Market Share 16%? Slow & Medium Engines Gas Turb Hydro Turb
  • 10. •$ 500 million, •40% Market Share, •20% EFO Change Programme The ICG Strategic Plan Total Customer Satisfaction QDRC Invest in People Grow market position $ 300M OEM partnership Winning products Push pull sales $ 100M End User sales $ 100M Distribution Quality sales Short development times Smart components System / solution capability
  • 11. Change Programme Winning OEM Business / Push - Pull Sales OEM Packager End User $ $ $ + + = Maximized Profitability Components & Software Services & Aftermarket Systems & Integration Push Pull
  • 13. Change Programme Is this a Leader of Change?
  • 14. Change Programme that was the plan…now implementation • MRPII Business Operations – CP built on this foundation…also TQM & Six Sigma • Total Training - ‘Members’ & Agents • Change Strategy – take ownership & cascade down… • Organisation Structure – create new… • Sell Change to Stakeholders – – EuroDistribution Conference 1998
  • 15.
  • 18. Woodward & Parker: an unholy alliance! • Aftermarket Business Manager – hired 1996, based in Reading, UK plant • Objective - from ‘reactive’ Service & Repair to a ‘proactive’ Sales & Services to end-user customer • Aftermarket Team - ‘Direct’ parts, service, training (15) + ‘Indirect’ services agents (10) for EMEA • OP – first job after Warwick MBA (1995) – Full of tools and models…and jargon…
  • 19. Oliver Parker MBA so what did I do? • Reviewed existing Aftermarket organisation & service agents (‘AISF’) • UK Aftermarket ‘back-office’ • Focus: proactive sales solutions. • Regional distributor network model • Training - EuroAftermarket Conference 1998 • Co-ordinate WGC ‘Distribution’ Plan ($300M) • European Aftermarket organisation structure.
  • 22. EuroAftermarket Reading & Hoofddorp BUs TBA Trainer Mechanical TBA Training Manager Electronics Distribution Network CDs, ADs, AISFs 'The Salesforce' John Rees Sales Manager TAG Audit Workshop 3/4 Technicans Lance Lennon, Ivor Doughty, Kevin Colman, ? Service Engineers Don Lees Gary Vockins Will Travell Dave Norris Service Manager TAG Wkshp/Field Svce Reading Responsibility: Northern Europe MIddle East Africa TAG Group 2 Engineers Paul Magrijn TAG Audit Training Distribution Network CD & AISFs 'The salesforce' Gerben Seevinck Sales Manager Service Engineering Team Jan Dijkstra Service Manager Ron van der Gaarden Michiel van der Maas Customer Service Team Workshop Technicians Fedinand Hanson Workshop Manager Repair & Overhaul Hoofddorp Responsibility: Western Europe Eastern Europe Oliver Parker Rdg Aftermarket Bus. Mgr. Frits Feddema MRP II Planning Manager EuroAftermarket Business Plan
  • 23. EuroAftermarket Distributor Network Regions Middle East Africa Eastern Europe Western & Central Europe Scandinavia $320K $290K$800K $409K $2.7M
  • 24.
  • 25. What Really Happened • Collaboration & Co-ordination (informal): – EMEA, Americas & Asia-Pacific…co-operative, but… • EuroAftermarket (organisation & training): – conflicting interests (UK vs. NL plants) • Regional Networks: – Middle East; first to ‘roll-out’ – Other Networks; slow & problematic (Nordic, SA) • Systems Solutions Sales: – New agents appointed with WGC Aftermarket support • …too slow in launch, implementation & results!
  • 27. RE-LAUNCH OF CHANGE PROGRAMME… 3 YEARS LATER! Resistance from ‘Old Guard’ and other vested interests Not resolved…
  • 29. My Reflection • Too timid… • Strategic Planning… – searched for too much info that wasn’t there! • Took too long to implement • Needed to create stronger coalitions • Needed to take tougher ‘HR’ decisions • Tougher performance management Faster, Decisive & Results-Driven