Controlling Conference
Portoroz, 27 October 2011
Controllers
Key Leaders for Excellence
Leon Tossaint former VP Philips Consumer Electronics Honourable Board Member SFPO
Controllers, Key Leaders for Excellence
• Excellence Approach in Europe
• ‘Excellence’ to create Competitive Advantage
• Practical examples on ‘Excellence’ and the role of Controllers
Definition of Excellence
Excellent Organizations achieve and sustain superior levels of performance that meet or exceed the expectations of all their stakeholders
From EFQM : European Foundation for Quality Management
Fundamental Concepts of Excellence
The EFQM Excellence Model
Assessment by the Excellence Model
RADAR: Elements and Attributes:
Results:
Relevance and usability
Performance
Trends
Targets
Comparisons
Approach: Sound Integrated
Assess & Refine:
Measurement
Learning & Creativity
Innovation & Improvement
Deployment: Implemented
Systematic
30 000 organisations around the globe are implementing the EFQM Excellence Model
More than 4500 networking contacts
600 EFQM Excellence Assessors trained since September 2009
500 EFQM Members covering over 50 different sectors
The EFQM Excellence Model
EFQM Members Include:
Innovation
Excellence in Slovenia
SFPO
Slovenian Foundation for Business Excellence
• The ultimate network of Slovenian Organizations aiming for Excellence
• The platform for sharing best practices
• Learning from multinationals
Excellence in Slovenia crucial to improve Competitiveness
Global Competitiveness report 2011 / 2012
World Economic Forum (WEF) shows trends on the competitiveness of Slovenia / Slovenian Companies
Global Competitiveness Index 2011/12
Slovenian Competitiveness has declined over the last 3 years
•2011/12
•2008/09
Financialmarket development (whole cluster)77102
Ease of access to loans56107
Venture capital availability4584
TechnologicalReadiness (whole cluster)3532
FDI and technologytransfer101122
Internetusers (70/110 population)3125
Internetbandwidth, kb/s/capita3519
Innovation (whole cluster)3440
Some practical examples
Target setting some learning
• Make target setting transparent, linked to the company’s strategic targets, deployed up to individual levels
• Review strategic target setting quarterly and adjust targets if needed (e.g economical changes)
• make target setting challenging to motivate people for the ´extra mile´
• Monitor progress on targets : traffic light system
• Benchmark targets, be competitive Business Targets Division Targets Department Targets
Excellence Program Approach for Continuous Cost Reduction
• Process Improvement to reduce costs
•Quality Improvement Teams to involve all people
•Drive ‘Cost-of-non-Quality’
• Suppliers involvement in cost reduction
To Invest in…….. Innovation (Philips)
Make your organisation ‘Lean and Agile’ Drastic reduction of the risk profile by managing the value chain instead of owning it
To be flexible make your organisation ‘Asset light’
Go for Process Excellence for all core Processes
Process Excellence in Finance
Process Survey Tool for Finance
Process Survey Tools (PST’s) are Process Maturity Grids developed by Philips, based on global expert knowledge gained from many World-Class Companies.
Benchmarks
PST for Marketing and Sales
Process Survey Tool for Finance
The 11 elements of the PST for Finance
Assessment by the Excellence Model
Perfect tool for Controllers to review all aspects of the business
In Philips, all controllers were trained as assessor, in every Assessment Team at least one controller….
...Philips´ CFO was lead assessor of the Philips Corporate Research Organization for many years….
Excellence Assessment
Global approach at Robert Bosch CC
Controllers key Assessors
In Global Assessment at Robert Bosch CC
Controllers, Key Leaders for Excellence
