Acquiring companies using TOC principles, and improving its performance using simple, powerful TOC solutions is part of GCPL’s culture now. Each acquisition in different parts of world brings in challenge for core TOC team to quickly understand culture of the company, complexities in business and develop, implement simple solutions to see significant improvement in performance in short time.
Recently GCPL acquired a company in the US, wherein a thin team manages a complex business of wet hair care products. This presentation is about the TOC implementation in this company, the unique challenges faced, flow solutions deployed and results gained in short time span.
- What is THE VALUE for the customers of the company and its relationship with the FLOW
- Process of aligning / subordinating all functions towards global goal of ‘Creating significant value for the customers’ and
- FLOW improvement initiatives can create significant value for the customers in a short period of time.
The focus on FLOW provides a strong platform for the teams to collaborate and also improves harmony. Since there is clarity on what is significant need of the customers, it is now pursued by teams who hitherto had seemingly conflicting local measures.
This presentation covers how the company is using TOC solutions to improve flow, and focus on significant need of customers. Company continues to use innovative yet simple TOC-solutions, which are internally developed.
This case study will illustrate:
- What are the significant unfulfilled needs of the majority of customers, and damage to customers as well as the company.
- Defining the measurements for monitoring level of fulfillment of the significant need of customers
- Inherent simplicity involved in aligning all the business operations to improve level of fulfillment of the identified significant need of the customers.
- Importance of measurements to drive individuals to take decisions which help the common goal of the company (rather than local optima achievement)
- Highlight the importance of building win-win collaboration with key customers to improve the system’s performance
STRUCTURE OF THE PRESENTATION:
A) Why was there a need for change?
In acquisitions environment, we always have to secure the buy in of the team on why are we proposing a change. In this case, following were major reasons for the change:
- Ever-increasing complexity in product portfolio and various functions operating in silos affecting customer significant needs
- Significant loss of top line and bottom line due to unfulfilled significant needs of the customers, sometime resulting penalties and missed margins affecting profits
- Lack of robust IT infrastructure and thin team size were hampering right visibility and decision making
B) Eli’s questions:
Step 1: What to Change?
- Focus of individual functions on achieving local efficiency improvements
- Causes behind unfulfilled needs of the customers
Step 2: What to Change to?
- Bring focus of all teams around a singular common objective of company : Fulfilling significant needs of the customers
Step 3: How to cause the Change?
- Alignment of measurements for entire team to focus on global optima
- Buy-in from top team about the solution direction and benefits therefrom
- Demonstrate that proposed changes bring about quick business results, thereby gaining momentum to scale up quickly
C) How do you measure, refocus, sustain and grow the change?
- Clear, simple trackers and dashboards to measure customer service, which not only drives the new behavior, but also shows progress towards desired business benefits
3 Questions attendees might ask at the end of presentation to elaborate on the subject and improve understanding and transfer of ideas.
- How were the IT challenges addressed during to implement this solution?
- Are these solutions applicable to MTO customers as well?
- What were some of the challenges during implementation of these solutions?