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UTi Network Conference South Africa Breakthroughs of Champions Dr. Bill Davidson September 2001
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0 2,000 4,000 6,000 8,000 10,000 12,000 SouthwestAmericanNorthwestUnited Company Market Capitalization (in millions) Market Capitalization 4/11/00
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Competitive Dynamics Sources of Innovation Value Share Incumbent Insurgent New Insurgent MS
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Breakthrough Principles n Innovation n Integration n Outrageous Objectives n Hoshin Focus n Aim, Ready, Fire, Adapt n Alignment n Process Innovation, Not Improvement n Aggressive Use of Emerging Technology n Three Dimensional Solutions n Customer-Centric Design
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Planning With Uncertainty “Show me a person with a Five Year Plan, and I’ll show you a person who has no idea what is going on.” Strategy Executive, RBOC
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AIM READY FIRE The Breakthrough Process AcumenArticulationArchitectureAllocationAchievement AnalysisAgendaAlignmentAccountabilityAdjacencies AcumenArticulationArchitectureAllocationAchievement AnalysisAgendaAlignmentAccountabilityAdjacencies Monitor and intervene roll- up program Identify & pursue value creation opportunities Define roles Assign resources Set contracts with owners Launch program management Convert PFS to project management master plan Align leadership, resources & clients with plan Fix priorities Establish program infrastructure Select, develop and deconstruct preferred future state Develop insights on market- evolution & value creation/capture opportunities Review scenarios, competitive positions & assess internal realities & potential
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Organizations in this state exhibit a number of symptoms: Misalignment Symptoms n Many partially completed projects n Extraordinary competition for resources n Low middle-management morale n Extreme politicization of resource use decisions n Fragmentation of enterprise resources and information n Emphasis on vertical command relationships and activities over horizontal and cross functional activities n Slow and painful implementation n Frequent escalation of unresolved decisions and conflicts to senior management levels
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Management Philosophy “My management philosophy is simple - I set tough financial targets for my 13 SBU’s, and make sure they meet them” Group President, Amoco
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What Makes an Enterprise? n Vision n Values n Operating Obsession n Core Strategies n Leadership n Organization n Processes n Training
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Key Capabilities for Breakthrough Enterprise Cohesiveness Collaboration Ability to Scale New Initiatives Prioritization Ability to Integrate Innovation into the Core Polarity Management Consistency/Follow-through Disciplines Internal Monitoring and Intervention Mechanisms Accountability Systems Coaching/Counseling/Change Management Skills Program Management Skills
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15 Prepared expressly for the Williams Corporation by Dr. Bill Davidson Fall, 1999
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Enterprise-Wide Integration Unit 1Unit 2Unit 3Unit 4Unit 5 Enterprise Inputs Local Strategy Inputs P A MM CI GS
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Leadership Characteristics n Strategic leadership n Directional management n Directive management n Disciplined implementation n Confident decision making n Enterprise perspective and entrepreneurial energy n Action factor n Relationship focus
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Ware- housing UTi’s Growth Corridor Logistics Services Contract Mfg. Customs Brokering Consulting SW Carriers Freight Forwarding
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