B2G CASE STUDY:
schindler EMEA TURNAROUND
“transform to outperform” FROM DECLINING PROFITABILITY TO HIGH PERFORMING ORGANIZATION
MAIN CHALLENGE
Schindler Group is one of the leading manufacturers of elevators in the world. Maintaining its leading position has become increasingly challenging in recent years due to intense competition. It's operational performance was being impacted, in turn threatening Schindler's cost leadership position. The VP of EMEA Schindler Group identified a significant opportunity to improve cost competitiveness by upgrading their business model and operational capabilities. The initial challenge of thoroughly reviewing and improving the end-toend business model intensified further to include gaining the trust of top management to support implementation of a turnaround program: "Transform to Outperform".
SCOREKEEPER MINDSET
Reactive ad-hoc, efficient but not effective
PEOPLE DEPENDANT
M anual operation s limited system s support
LIMITED PLANNING
Only short term business planning
LACK
OF FRAMEWORK
No operational excellence standards, performance routines
SILOED ORGANIZATION
Internally-focused, lack of collaboration
TRANSACTIONNAL
lack of visibility and optimization, lack of strategic vision of direct reporting team
NO DATA CULTURE
Incompatible systems and low data integrity
HIGH PRODUCT S
COMPLE X IT Y
H igh q uality defect s
Numerous design changes
OUR APPROACH
2.44
9
1 Created sense of urgency, and get buy-in from all top managers 3 Led and coached the recovery task-force with daily monitoring 2 Defined VFO Strategy Execution Plan:
Vital Few Objectives, Game Plan & Scoreboard (Lead & Lag measures) 4 Provided visibility with recovery plan and expected target date for Return to Green (RTG) 5 Appointed interim managers in underperforming facilities 6 Implemented bi-daily monitoring on low performing areas Planning improvement System for Management Data accuracy
& systems integration Industrialization
R&D effiency 7 Deployed mid-terms initiatives to sustain recovery : RESULTS 11.2% EBITDA From 8.4% 6% SPE N D RED U CTIO N From 4.5% 5.5% I N VE N TOR Y T U R N S From 3 . 25 % 1 0 Days LATE ORDE R
BAC K LOG From 60 Days
ASSET T U R N OVER From 1 . 23
5
Y PP M
350
Inventory optimization Products portfoli o
simplification
QU ALIT
From
C ost performanc e
management
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