1 © The Delos Partnership 2006 Sanofi Aventis What is required to develop “Process Thinking”

2 © The Delos Partnership 2006 Requirements for Process Ways of working 1.A sponsor for “Process Ways of Working”. 2.A formal definition of organisations’ processes – as-is and to-be 3.Ownership of the processes – managing cross - functionally 4.Definition of a team based culture 5.Pilot an area – e.g. Innovation process for new products and new production line. 6.“Educate” people into new ways of working

3 © The Delos Partnership 2006 The Delos Model For Business Integration Innovation Innovation Vision Strategy Prioritisation Prioritisation Demand Support Supply

4 © The Delos Partnership 2006 IEL Process Steps ACTIONACTION Week 1Week 2Week 3Week 4InnovationReviewInnovationReview CustomerDemandReviewCustomerDemandReview SupplyPlanReviewSupplyPlanReview PriorityReviewPriorityReview Stage 1 Stage 2 SeniorTeamReviewSeniorTeamReview Stage 5 Stage 7 Stage 3 SupportReviewSupportReview Stage 6 Stage 4

5 © The Delos Partnership 2006 Framework for Process Review Process Name : Process Owner : InputsPurpose/AgendaOutputs People Desired Culture Measures Systems to support this step Link to other Processes

6 © The Delos Partnership 2006 Business Processes - Target C a pt ur e a n d Tr a ck C u st o m er O rd er H a n dl e/ re s ol v e c u st o m er q u er ie s M e a s ur e C u st o m er S at isf a cti o n O bt ai n s al e s fo re c a st s M a n a g e P a p er B al a n c e S ell p ar t- fi ni s h e d g o o d s M a n a g e D e m a n d a g ai n st s u p pl y Pl a n P a p er Pr o d u cti o n (t a cti c al ) Pl a n c o n v er ti n g (t a cti c al ) St or e p a p er & fi ni s h e d g o o d s M a n a g e in te r- c o m p a n y tr a n sf er s Di st ri b ut e fi ni s h e d g o o d s M ai nt ai n A cc o u nt s A cc o u nt fo r fix e d a ss et s M a k e p a y m e nt s C oll e ct re c ei v a bl e s R e m u n er at e st af f Tr e a s ur y a n d A ss et M a n a g e m e nt M a n a g e e x p e n di tu re Pr o vi d e In te rn al A u di t R e cr ui t St af f D e v el o p St af f Pl a n St af f b e n ef its S et St af f O bj e cti v e s A p pr ai s e St af f p er fo r m a n c e Pl a n St af f S u cc e ss io n S c h e d ul e Pr o d u cti o n (fi ni s h e d g o o d s) S c h e d ul e Pr o d u cti o n (p a p er ) M a k e P a p er C o n v er t Fi ni s h e d G o o d s M a n a g e M a n uf a ct ur in g O p er at io n s M ai nt ai n Pl a nt S o ur c e St ra te gi c all y S o ur c e lo c all y Pl a c e P ur c h a s e O rd er s R e c ei v e G o o d s M a n a g e V e n d or p er fo r m a n c e Tr a d e M ar k et in g C o n s u m er M ar k et in g A d v er tis in g M a n a g e Pr o m ot io n s D e v el o p a n d R e s e ar c h Pr o d u ct M a n a g e Pr o d u ct s p e cif ic at io n s In tr o d u c e n e w & c h a n g e d Pr o d u ct s R et ir e O b s ol e sc e nt pr o d u ct s In n o v at io n Id e nt ify a n d Pr io rit is e b u si n e ss s ol ut io n s B uil d/ m ai nt ai n b u si n e ss a n d te c h ni c al m o d el s D e v el o p n e w b u si n e ss s ol ut io n s S u p p or t u s er s M ai nt ai n a n d e n h a n c e le g a cy sy st e m s M a n a g e te c h ni c al in fr a st ru ct ur e M a n a g e Fi n a n c e in IS M a n a g e H R in IS M o ni to r e xt er n al tr e n d s D e v el o p pr o d u cti o n st ra te g y a n d pl a n s D e v el o p M ar k et St ra te g y a n d Pl a n s D e v el o p S o ur ci n g st ra te gi e s D e v el o p H u m a n R e s o ur c e st ra te g y C o- or di n at e c o u nt ry /r e gi o n al pl a n s Manage New products Manage New Activities Procurement Manufacturing Order fulfilment and customer service Logistics, Scheduling and Distribution Finance processes HR processes IS and IT processes Strategy and Planning

7 © The Delos Partnership 2006 Generic Process Ownership SalesOpsQualityFinanceEng’g New Product Process NPD Owner Supply process Supply Owner Customer Demand Process Demand Owner Innovation Owner Innovation process Management Team Support: Finance, IT,HR,QA, …. Support Owner

8 © The Delos Partnership 2006 Process Ownership Horizontal Owners Act at the interface with the functions, to provide the link with other processes The Process Managers are responsible for managing the process within the « vertical » function. SalesOpsQualityFinanceEng’g New Product Process NPD Owner Supply process Supply Owner Customer Demand Process Demand Owner Innovation Owner Innovation process Management Team Support: Finance, IT,HR,QA, …. Support Owner

9 © The Delos Partnership 2006 Role of process owners 1.To propose the rules for the operation and management of the process, and ensure respect for the rules of the process 2.To identify the problems at the interface between the process and the functions. To act in concert with the other teams who are part of the same process 3.To take part in the definition of the operation of the supporting information systems 4.Putting the process into action: to agree the priorities and the balance between operational objectives and technical requirements 5.To develop the performance measures relevant to their process, and ensure that they are used 6.To ensure the continuous improvement of the process 7.To sponsor the process managers and their teams 8.To act across each of the functions to ensure the right team-based behaviour.

10 © The Delos Partnership 2006 Development of a cross- functional culture 1.Identify what is good and bad about today’s culture, and what are the barriers. 2.Identify good “Values” for teamwork culture. 3.Identify actions required to implement cross-functional working.

11 © The Delos Partnership 2006 Development of new “culture” TraditionalNowFuture Process problems Not my jobOwnershipAccountability Management Style SuperviseFacilitator/ Team Leader Coach Working Style IndividualTeamEmpowered Teams Training and Education Non-existentLuxuryNecessity KnowledgeIgnorantUnderstandsExpert Attitude to People LiabilityCostAsset

12 © The Delos Partnership 2006 Pilot an area 1.Select a “process” that requires cross- functional activity, and develop a project/team-based activity 2.Communicate to ELT that this is an example of “Process Ways” of working.

13 © The Delos Partnership 2006 ORGANISATIONORGANISATION Elements of Change processes PEOPLE TOOLS PROCESSES

14 © The Delos Partnership 2006 ORGANISATIONORGANISATION No focus on tools CULTURE/ BEHAVIOUR TECHNOLOGY WAYS OF WORKING No tools to do the job - Frustration - Creation of own - spreadsheets..

15 © The Delos Partnership 2006 ORGANISATIONORGANISATION No focus on culture CULTURE/ BEHAVIOUR TECHNOLOGY WAYS OF WORKING No focus on culture - No behaviour change - No change in hearts and minds

16 © The Delos Partnership 2006 ORGANISATIONORGANISATION No focus on process CULTURE/ BEHAVIOUR TECHNOLOGY WAYS OF WORKING No formal procedures - Automated chaos - Anarchy

17 © The Delos Partnership 2006 ORGANISATIONORGANISATION Elements of Change processes PEOPLE TOOLS PROCESSES EDUCATION TRAINING

18 © The Delos Partnership 2006 Education 1.Sharing the knowledge that is unique to the function. Finance Quality Engineering IS HSE 2.Empowering people to take action based on their knowledge. 3.Getting everyone to act as if it were their own pharmaceutical business with customers out there to service. 4.Get people to understand how to act without fear of another “function” telling them they had got it wrong.

19 © The Delos Partnership 2006 Dagenham’s Future

20 © The Delos Partnership 2006 Dagenham’s Future

21 © The Delos Partnership 2006 Workshop Group A 1.How much does the Dagenham SLT want “process ways of thinking and working”? 2.What would be the simplest way of proceeding? 3.What are the next actions required ? Group A 1.How much does the Dagenham SLT want “process ways of thinking and working”? 2.What would be the simplest way of proceeding? 3.What are the next actions required ? Group B 1.Assuming that Dagenham wants to work cross-functionally how would this be brought into the site ? 2.What would be the barriers, and how would they be overcome? Group B 1.Assuming that Dagenham wants to work cross-functionally how would this be brought into the site ? 2.What would be the barriers, and how would they be overcome?