LEGO Service Center Business Plan
Most important LSC program initiatives
Balanced scorecard
Strategic focus areas
Charge back model
Customers
Continuous improvement
Value creation
LEGO Service Center
Program agenda
Processes
Innovation program
Aligned customer expectations
Multi-functional service desk
Innovation
Employees
Organizational structure
Clear interfaces between LSC and Corporate Functions Gain acceptance externally of the multi-functional LSC setup Build competencies and employee commitment
Page 5
Content
•
Strategic Direction
•
Benefits
Page 6
Why now?
The sense of urgency is about being proactive – the ”why” is about ”Mending the roof while the sun is shining”
Why? To support Shared Vision because…
•
We need the right focus at all functions in Corporate Center. This is not only for optimizing the way we deliver service but also to stress the importance of having corporate functions that really drive strategic
business development
•
We need also to have management focus on all the employees who make the wheels turn – which can be a challenge when we also have to focus on e.g. strategic projects
•
We want to change the perception of our operational departments from being seen as only creating cost to be seen as an asset that deliver highly professional services that supports the business in a way that can not be bought anywhere
•
We need to be able to support the divisions in a decentralized setup in a standardized efficient way by having common customer interfaces and SLAs
•
We need to be able to provide services across the existing functional silos. If not we will not be able to achieve critical mass when the number of employees in the company is being reduced during the coming years
•
We need to be able to document that we are providing the services to be business in the most cost efficient way compared with alternatives in the market Page 7
Mission, Vision and Key Objective…
Why are we here?
Mission:
Our services enable our customers to improve and to focus on their core processes, by giving them the possibility to choose the right balance between cost and customization that fit their and the LEGO Group goals
What do we aim at?
Vision:
To be the right choice for our customers and employees by providing more value than our competitors
What will we deliver?
Key Objective:
To deliver minimum 5% value add every year
Page 8
Core messages – Strategic employee mindsetting
1. Customer focus
We have to keep a strong consistent focus on our customers in order to be seen as a beneficial partner that allows the customers to entirely focus on and improve their core businesses.
2. Continuous improvement
In order to stay competitive we must strive for continuous improvement. By challenging ourselves in everything we do we will seek new and better ways to fulfill the customer’s and the LEGO Group’s goals
3. Performance management
We need to have our ear to the ground. Only by understanding ourselves and the way we do business we will succeed. Using Balanced Scorecard as a tool we will gain more knowledge about our operation which will help us prioritizing our initiatives and developing our competencies.
Page 9
Content
•
Strategic Direction
•
Benefits
Page 10
Value Add Equation
We provide services with the
right agreed and perceived
quality
We ensure the flexibility to provide new
services or eliminate existing services
Volume *
Flexibility
Value Add
Quality *
=
Cost
We ensure an ability to scale up
and down within the known
services
We constantly take a total
company cost perspective of
the services we deliver
Page 11
How to measure the value add
•
•
•
•
Volume represent the level of scalability and is calculated as the number of standard services (part of the service catalogue) delivered.
Quality is measured in two ways. The user perceived quality is measured by use of surveys which are sent to randomly selected users. But the quality can also be documented with quantitative metrics where the Incident rate as a percentage of all services delivered can be calculated.
Flexibility is measured in surveys where the “buyer’s” perception of LEGO Service Center flexibility is evaluated (when the change management process is implemented the Flexibility will instead be calculated as the rate of valid request for new services fulfilled by LEGO Service Center).
Cost is divided into direct and indirect costs. Direct cost will be measured in three ways: –
–
Total cost for LSC divided by total net sale for TLG
Total cost for LSC divided by total number of employees in TLG
The development in Indirect cost will be measured in a customer surveys where the respondents estimate the resources spend on using the most frequently used services. Besides the user impact on new and adjusted processes and
services will be estimated.
Page 12
Value add calculation
Criteria and
example
Page 13
Cooperation and Governance
Corporate Functions
CF LT
Overall strategic direction
and policy decisions
LSC LT
Boards, committees and forums
Division LT
Overall governance
responsibility
CF LT
LSC LT
Demand mgt.
Demand mgt.
CRM/KAM
Development
Process
owners
Advisors
Bilateral discussions
and agreements
”Buyer” function
(BRM, HR Partner, Fin. Controllers)
Development
Supply mgt.
Division LT
CF
Advisors
Operators
User policy compliance
Service delivery
Users
Service Desk
LEGO Service Center
Business Units
Page 14
Governance model and principles “Draft”
LEGO Project Model
>2.5 mill Dkk out of
Pocket or 5 mill in
total cost
Strategic projects
0,5 – 2,5 mill dkk
Tactical projects
Budget and resources
agreed
Plan according to
available resources. If
conflicts escalate to
Board
Planned Maintenance
No
Budgeted a year
ahead according to
overall maintenance
plan
Global Facility Board
Participants: Chairman CI, Global Facility Manager +
LSC VP/TJU
Division representative and Facility Board Secretary
Role and responsibility:
Approve, Prioritize, co-ordinate and enforce standards
Meeting: Once a month/10 times a year
Global FAC
Board
approval
CI – Chairman
Local Board
per site.
Customers
approval –
FAC
coordination
One Facility Project Portfolio
formal approval
Approval
Local Facility Board
Participants: Local Facility Manager and
Local business representative and global
facility coordinator
Role and responsibility:
Approve, Prioritize, co-ordinate and
Page 15
Breaking the Strategy Process into Specific Actions
Step 1: Mission and Strategic Vision
Step 2: Strategy Map and Objectives
Step 3: Functional Scope
Step 4: Functional Strategy Map and Objectives
Step 5: Identified Initiatives
Already completed
To be completed in the strategy process
Step 6: Communication and Implementation
Page 16
To close the performance gap LSC FAC have developed the following strategy, described in the format of a Strategy map
Our overall goal is
to drive value add
by optimizing
efficiency and
effectiveness.
“Make services easy to
understand, access and
use”
“Support
business plan”
What we need to do
for our customers
Drive intentions for
“People” and
“Planet promise”
World Class efficiency ahead
of peers
World Class effectiveness
ahead of peers
“Make service delivery
even more competent
and reliable”
Based on this
Which process do
we need to excel at
to meet the
demands?
Improve our
customer
engagement
Transform TLG
needs into
services
Ensure scalable
services
Improve
communication
of services
Develop end to end
bundled services
Continuously
improve service
delivery
Establish Global
LSC with Local
perspective
Drive energy management
Support employee
health and safety
Drive Waste
management
What values,
competencies, etc.
do we need to excel
at our processes?
Be process
oriented
Put end user in
center
Create a continuous
improvement and innovative
culture
Live the
strategy
Improve business knowledge
and understanding
Ensure development of
the needed Competencies
and Capabilities
Live the
values
Page 17
Identifying Initiatives – DRAFT version
2009
Objectives
Initiatives
Support Business Plan
Formalize business dialogue
Improve communication of services
Make a communication plan for LSC
FAC covering a full year.
Actively use the service catalog
Continuously improve service delivery
Implement project and portfolio
management
Implement ITIL processes
Prioritization of task/incidents
Develop end to end bundle services
Actively be involved in Process
Expert Network activities is relevant.
Establish Global LSC Facility services with
Local perspective
Make policies and highlight where
things can be different and where not
they can be different.
Reduce environmental impact
Energy optimization
Define and describe governance and policies
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Set common goals with Corp
Governance and sustainability
Improve our customer engagement
2013
Descripe policies – Who pays for
what
Descripe FAC Standards
Ensure a green approach to service delivery
2012
Service catalogue completion
(markeds areas, production sites)
Make clear policies on facilities services area
2011
Footprint 2020
Make services easy to understand, access
and use
2010
Describe roles and responsibilities in
FAC
Describe approval process
Half year plans with concrete activities linked to the strategic agenda Yearly Business Plans made as a product of the strategic agenda
2nd half
Plan
Business
plan 2009
1st half
Plan
2nd half
Plan
Business plan 2010
1st half
Plan
2nd half
Plan
Business plan 2011
1st half
Plan
2nd half
Plan
Business plan 2012
1st half
Plan
2nd half
Plan
Business plan 2013
Page 18