PERF RMANCE 04 - The Performance Portal - Ernst & Young

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In mid 2009 the SCALE change leadership team decided that a broader coalition from across the EMEALA countries and functions should be mobilized and empowered as key influencers and sponsors for the transformation process at a local country level. Consequently, a supply chain network of change ambassadors was set up. The network quickly became involved in working closely with their country general managers, particularly in the rollout of the new sales and operations planning process launched as part of SCALE. This SCALE “guiding change coalition” within FME is represented in Figure 5. Charting for success The SCALE program presented a series of complex challenges across three dimensions (Figure 6): people, process and technology. These challenges can be summarized as follows: • Orchestrating a series of parallel workstreams across the complete span of supply chain operations • Each workstream with its own scope, stakeholders, timeline, deliverables and go-live date including specific impact of change assessments • Integrating the work of an organizational design initiative with the more operational workstreams Figure 5. SCALE guiding change coalition Every operational unit impacted in the project plan will be engaged SCALE project team “Build processes and tools; coach rollout teams“ SCALE ambassadors Supply chain champions Source: Fresenius Medical Care Figure 6. SCALE is the program delivering this supply chain transformation Supply chain standard New shared processes One integrated system New “one team“ setup Common approach across all functions and countries Transition framework for smooth implementation Supplier Production Central Warehouse (CWH) Source: Fresenius Medical Care Headquarter Initiating change sponsors “Provide strong backing and sponsorship” Country General Managers/Plant Managers “Own rollout with personal objectives” Change Implementation Leaders “Drive country rollout” Country rollout team “Execute rollout processes, behaviors and tools” All Local Warehouses (LWHs) And building one supply chain community across EMEALA Countries Customer
Supply chain transformation • Managing the many critical linkages between the output of the different workstreams while managing the critical path for the implementation of the overall SCALE program • Managing the ongoing rollout of the program deliverables through a series of waves or pilots • Sharing lessons learned during the journey and tracking the real tangible values being realized • And building one supply chain community at the same time We followed a simple rule which was to give the overall SCALE program a series of distinct targets at a strategic level while having specific and tangible, tactical goals for the separate workstreams. Team charters were completed by all of the SCALE workstreams. As well as covering the usual issues such as scope, timeline, deliverables, roles, work-plan, linkages and dependencies, these charters also became another change instrument by addressing the potential areas for transformation and change impact (see Table 1). Table1. Potential areas for transformation impact Criteria Description Stakeholder management Critical Resulting change impacts to be managed • Local stock is legally no longer under the responsibility of the subsidiary. • Local management Low Potential resistance to these changes Recommended next steps to manage change • Local management might be afraid that they no longer control stock levels and run into stock-out situations. • In the kick-off meetings and all presentations make very transparent that the responsibilities regarding stock levels will not change because of the D-GmbH ownership. Criteria Description Stakeholder management Critical Resulting change impacts to be managed Potential resistance to these changes Recommended next steps to manage change • The handling of processes related to stock changes (e.g.,goods entry of different plants) or becomes more difficult (e.g., scrapping, customer returns) because two legal entities are involved. • Local employees might be afraid of the changes in their daily work because they do not fully understand the extent. • Explain the concrete process/ handling changes in detail already in an early stage of the project and invest sufficient time for training before go live. • Employees in the warehouse (goods entry, goods issue on different plants) • Logistics clerk/ manager (scrapping on D-GmbH cost center, handling of customer returns) Medium Source: Fresenius Medical Care 55
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