Transcript
Leading Organisational Change
Case: Woodward Governor 1996
Oliver ParkerWarwick MBA 1994-95
Woodward GovernorThe 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 CompanyWhy 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 CompanyIdentified 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 ProgrammeThe ICG Mission & Goals
“Woodward Industrial Controls Group is in the business ofdesigning, 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 ProgrammeMarket Opportunity
Automotive
&
High Speed
Industrial Control
&
Plant Control Systems
Market Opportunity $2.1 Billion
Current Market Share 16%?
Slow &
Medium
Engines
Gas
TurbHydro
Turb
•$ 500 million, •40% Market Share,•20% EFO
Change ProgrammeThe 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 ProgrammeOvert Signals
Change ProgrammeIs this a Leader of Change?
Change Programmethat 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
Implementationbased 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 CONFERENCE
Athens ‘98
ICG Global AftermarketProposed Structure
IC G E uroA fte rm ark e t (& G loba l L ink s )
A m ericasA fte rm ark e t
H ydro -M ec han ic a l P roduc ts
E lec tron ic P roduc ts
E uroT ra in ing
U S A R etu rns W arran tyA dm in is tra t ion
M a in tenanc eC on trac ts
S ervice & R epa ir(c us tom er s upport)
T enders /Q uotes ,R e tro fits
S pare P arts
N ew C ontro ls
D is tribu tion N e tw orkC D R eg iona l M anagem ent
S a les & M ark e ting
F ie ld S ervic e E ng ineers
P roduc tO bs o les c ence
T A G H e lpL ine
F ie ld S ervic eA dm in is tra t ion
T A GT ec hn ic a l S upport
A pp lic a tions /C om m is s ion ing E ng ineering(to s upport D is tribu tion . N e tw ork )
E uroa fte rm ak e tM anager
A s ia -P ac if icA fte rm ark e t
G loba l IC G A fte rm ark e t O pera tionsIn fo rm ation T echno logy, W arran ty P o lic y, IC G S tra tegy, M arke ting & S a les , N e tw ork S tandards
(IC G A fte rm ark e t M anagem ent o f 3 s tra teg ic g loba l reg ions - c o -o rd ina tion on ly)
EuroAftermarketReading & Hoofddorp BUs
T B AT ra iner
M echan ica l
T B AT ra in ing M anager
E lec tron ics
D is tribu tion N e tw orkC D s , A D s , A IS F s'T he S a les fo rce '
John R eesS ales M anager
T A GA ud it
W orkshop3 /4 T echn icans
Lance Lennon , Ivo r D ough ty,K evin C o lm an, ?
S ervice E ng ineersD on Lees
G ary V oc k insW ill T rave ll
D ave N orrisS ervice M anager
T A GW kshp/F ie ld S vce
R ead ing R espons ib ility:N orthern E urope
M Idd le E as tA frica
T A G G roup2 E ng ineers
P au l M agrijnT A GA ud it
T ra in ing
D is tribu tion N e tw orkC D & A IS F s
'T he sa les fo rc e '
G erben S eevinckS a les M anager
S ervice E ng ineering T eam
Jan D ijks traS ervice M anager
R on van der G aardenM ich ie l van der M aas
C us tom er S ervice T eamW orkshop T echn ic ians
F ed inand H ansonW orkshop M anagerR epa ir & O verhau l
H oo fddorp R espons ib ility:W es tern E uropeE as te rn E urope
O live r P arkerR dg A fte rm arke t B us . M gr.
F rits F eddem aM R P II P lann ing M anager
E uroA fte rm ark et B us iness P lan
EuroAftermarket Distributor Network Regions
MiddleEast Africa
EasternEurope
Western & CentralEurope
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…
WHATWOULD
YOUDO?
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
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