Danmarks Biblioteksskole & Danmarks Biblioteksforening Innovation temadag 27. maj 2010 Torsten Bjørn
Leadership development: Pathfinder 2001-2002..Leadership and coaching Managing Corporate Resources (MCR) /IMD 2005 Lausanne MBA Strategic Leadership & Management 2006-2008 Aalborg Torsten Bjørn Gift med Susanne siden 1991 folkeskolelærer (LEGO Design manager/ designer i 18 år) 2 børn Astrid 17 år adopteret fra Kina - 1994 Anthon 16 år adopteret fra Vietnam 1998 Fritid Fodboldcoach/konsulent, løb, tennis, golf, familie-ferie i Frankrig (helst), kunst/kultur Senior Director LEGO Group (1989..) Product & Marketing Dev. * Design Manager, Chef-designer, Project Manager, Director/senior director Concept & Design Management
Agenda LEGO Shared Vision LEGO Innovation LEGO Development Process (LDP) - 2004 LEGO Innovation Model - 2006-2009 122 millioner stk. pr. år - 4 milliarder totalt LEGO Innovation next step.. ------------------------------------------- Case 1 (gruppe + plenum) MBA speciale Next Gen. LDP version 2-2008-2009 Case 2 - (gruppe + plenum) Opsamling
Strategic direction of LEGO
Shared Vision At blive den førende legetøjsvirksomhed ved optimal udnyttelse af vores kerneværdier Mere end 400 millioner børn og voksne vil i år lege med LEGO elementer
Overlevelse Profitabel kerneplatform Organisk vækst Turnaround Forretningstransformation Styrkelse af brand LEGO er verdens største dækproducent med 300 millioner stk. pr. år.
Mission Oplevelser og forventninger At inspirere og udvikle dem, der skal bygge fremtiden Play Promise - vores legeløfte Glæden ved at bygge. Stoltheden ved at skabe. Planet Promise -vores løfte til omverdenen En LEGO autentisk, positiv påvirkning. Partner Promise - løftet til vores samarbejdspartnere Fælles værdiskabelse baseret på LEGO varemærket People Promise - vores medarbejderløfte Vi lykkes sammen. Motto LEGO værdier Det bedste er ikke for godt Kreativitet Sjov leg Læring Kvalitet Omsorg Fantasi
Innovation = Leadership *MWB= Must-Win-Battles Strategisk dialog Corporate Man. Corporate Growth Strategy MWB 2010 AAR MWB* 2011 Opportunity platforms 2011-2015 Business Units BU-Plan 2009-11 New Innovation focus
LEGO Development Process LDP 2004 -
High Speed portefølje - Start your engines! - September 2004 12
Change management LEGO Development Process Principles Projektets hovedformål: Vi skal skabe en betydelig forbedring af udviklingsprocessen på tværs af porteføljen ved at: Reducere udviklingstiden for porteføljen til 12 måneder Øge reaktionsevnen på input fra detailhandlen og forbrugertrends Skabe mindre og mere effektive projektteams Øge den overordnede organisatoriske effektivitet Skabe en performancekultur på tværs af organisationen
LEGO Development Process portfolio milestone overview The strategic part of the development of the portfolio Launch Year 2008 TOTAL 2008 Novelties - for subsequent years Novelties Carry Over Total 2009 2010+ Product Life Consumer Sales 542.0 500.0 1042.0 180.7 60.2 782.9 Gross Sales 650.4 500.0 1150.4 108.4 24.1 782.9 - CTT and Cash discount -75.0-59.6-134.6-12.5-2.8-90.3 Net sales 575.4 440.4 1015.8 95.9 21.3 692.6 - FMC Costs -179.4-133.5-312.9-29.9-6.6-215.9 - Kirkbi royalty -20.1-15.4-35.6-3.4-0.7-24.2 Gross Contribution 1 (GC1) 375.9 291.4 667.3 62.6 13.9 452.5 - Full Distribution Costs -41.2-31.6-72.8-6.9-1.5-49.6 Gross Contribution 2 (GC2) 334.7 259.9 594.5 55.8 12.4 402.8 - Direct Marketing spending -38.0-10.0-48.0-38.0 Gross Contribution 3 (GC3) 296.7 249.9 546.5 55.8 12.4 364.8 - Market overhead costs -62.0-48.0-110.1-10.3-2.3-74.7 Gross Contribution 5 (GC5) 234.6 201.8 436.5 45.4 10.1 290.2 - Project Costs -13.9-13.9-13.9 - Cost of Capital Employed -7.8-5.4-13.2-1.2-0.3-9.3 Earnings Before Allocations 212.9 196.5 409.4 44.2 9.8 267.0 Calculated EBA % of Net Sales 37.0% 44.6% 40.3% 46.1% 46.1% 38.5% Gross Sales /FMC Factor 3.63 3.74 3.68 3.63 3.63 3.63 Project Outgoings (Mill DKK) Costs Total Investments Total Grand Total Concept & Development 2.9 Mould 1.9 Technical Development and purchased samples 1.7 Equipment 0.4 Packaging & Insp. Materials 3.8 Ext. purchased 2.6 Campaign 4.5 Project support 1.0 Total project costs 13.9 Total invest. 4.9 18.8 Year x-2 March May SEP NOV Portfolio milestones P0 P1 P2 P3 Focus area Strategic scoping Strength Opportunity freeze Opportunity 1 Concept portfolio freeze Project portfolio freeze Issue Opportunity 2 Opportunity 3 Weakness Opportunity 4 Opportunity 1 Opportunity Issue Opportunity 2 Opportunity 3 Opportunity 4 Threat
The Project Milestone phases are more organic and the projects decide when they are ready to pass a gate, but we have last date that a gate should be passed Year 2007 TOTAL 2007 Novelties - for subsequent years Product Amounts stated in Mill DKK Novelties Carry Over Total 2008 2009+ Life Consumer Sales 376,4 105,6 482,0 188,2 87,8 652,4 Gross Sales 451,7 126,7 578,4 150,5 50,2 652,4 - CTT and Cash Discounts (50,2) (14,2) (64,4) -16,7-5,6-72,5 Net sales 401,5 112,5 514,0 133,8 44,6 579,9 - FMC Costs (134,2) (41,7) (175,9) -44,7-14,9-193,9 - Kirkby royalty (14,1) (3,9) (18,0) -4,7-1,6-20,3 Group Contribution 1 (GC1) 253,2 66,9 320,1 84,4 28,1 365,7 - Full Distribution Costs (27,0) (8,7) (35,7) -9,1-3,0-39,1 Group Contribution 2 (GC2) 226,2 58,2 284,4 75,3 25,1 326,6 - Direct Marketing costs (27,6) (1,0) (28,6) xxx xxx -27,6 Group Contribution 3 (GC3) 198,6 57,2 255,8 75,3 25,1 299,0 (41,7) (11,7) (53,4) -13,9-4,6-60,2 Group Contribution 5 (GC5) 157,0 45,5 202,4 61,4 20,5 238,8 - Project Costs (11,1) (11,1) -11,1 - Cost of capital employed (4,0) (1,2) (5,2) -1,29-0,4-5,7 Earnings Before Allocations (EBA)141,9 44,3 186,1 60,1 20,0 222,0 EBA % of Net Sales 35,3% 39,3% 36,2% 44,9% 44,9% 38,3% NIP / FMC Factor 3,36 3,04 3,29 3,36 3,36 3,36 Operating Profit 1119,1 316,7 1435,4 417,0 139,3 1674,6 Calculated ROS % 248% 250% 248% 277% 278% 257% Project Investments 0,7 0,7 0,7 Capital employed 30,4 9,4 39,8 10,1 3,4 43,9 Capital Return on Invested Capital (GC8)1115,1 315,5 1430,2 415,7 138,9 1668,9 Calculated ROIC % 3588% 3344% 3530% < Launch year - Project life > 3744% ROI Factor (GC 5/Total outgoings) 13,3 17,1 20,2 Project costs Total Investments Total Grand Total 2,2 0,6 0,8 0,0 2,6 0,1 4,6 0,9 Total project costs 11,1 Total invest. 0,7 11,8 Time NOV Year x-1 JAN FEB MAR APR MAY JUN JUL Aug SEP OCT NOV DEC JAN Project milestones M1 M2 M3 M4 M5 L Project kick-off Business case freeze Product and packaging freeze Communication freeze First Procurement date Launch Project team Novelty Project Financial Business Case Project............. RACERS........ 2007............ Year.................... 2007....... TV spot Packaging graphic Key visual Campaign tool box Employed 31,1 9,4 40,5 10,1 3,4 44,6 Project Outgoings (Mill DKK)
Change management LEGO Development Process Principles Det skal vi gøre ved at implementere fem grundlæggende principper: Fokuserede og sammentømrede teams (færre men bredere og mere dedikerede roller) Parallelle processer Fleksibel beslutningsproces Én virtuel udviklingsplatform Fokuseret mindset
The key pillars of the LEGO Development Process
The process is based on a flexible stage-gate model Overall process logic Year X-1 P phase Year X FEB NOV DEC JAN M phase 1 st half projects APR M phase 2 nd half projects Year X+1 JUN Year X-1 Year X Year X+1 Time FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN Mileston es (1 st half launch) P0 PORTFOLIO OBJECTIVES P1 OPPORTUNITY FREEZE P2 P3 M1 M2 M3 Selling-in M4 M5 CONCEPT FREEZE PORTFOLIO FREEZE KICK OFF BUSINESS FREEZE PRODUCT FREEZE COMMUNICATION FREEZE PROCUREMENT FREEZE Product. Launch Funnel 50+ ideas 30-35 opportunities 20-25 concepts 18-20 projects 180-220 products 10-15 campaigns
And it is based on continuous interaction with key stakeholders Year X-1 Year X Year X+1 Time FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN Milestones (1 st half launch) P0 PORTFOLIO OBJECTIVES P1 OPPORTUNITY FREEZE P2 P3 M1 M2 M3 Selling-in M4 M5 CONCEPT FREEZE PORTFOLIO FREEZE KICK OFF BUSINESS FREEZE PRODUCT FREEZE COMMUNICATION FREEZE PROCUREMENT FREEZE Product. Launch Market and customer interaction points MPLT STRATEGY MEETING MPLT BUSINESS PLAN MEETING = Lead Market prep. meetings = Including external customers MARKET LT PORTFOLIO MEETING 1 st HALF PRODUCT INPUT WINDOW 1 st HALF PACKAGING INPUT WINDOW 1 st HALF SELLING-IN STARTS IN US 2 nd HALF PRODUCT INPUT WINDOW 2 nd HALF PACKAGING INPUT WINDOW 2 nd HALF SELLING-IN STARTS IN US 2 nd HALF TOY FAIRS NÜRNBERG, NEW YORK ETC. Supply Ch. and Market Operations interaction points STRATEGIC CAPACITY REVIEW STRATEGIC CAPACITY REVIEW STRATEGIC CAPACITY REVIEW Monthly S&OP Development Reviews PP1 PP2 PP3 Monthly FC s
Focused and close-knit teams build around a dedicated core - Team structure - - Staffing profile example Packaging Equip. Driver Prototype driver Equipment driver Packaging engineer Packaging designer Logistical Masterdata Mould driver Project Supporter Tool constructor Account manager OFF-SITE TEAM CORE TEAM Graphic production manager Engineers Marketing Lead Project Manager Creative Lead 3D artist ON-SITE TEAM BI instruction developer Global Purchasing Production driver Art Director 3D modeler Designers Virtual producer Product Coordinator Legal Market Intelligence Web producer Resource Project manager Marketing Lead Creative Lead Designer Art director Pack. designer Project supporter Engineers Mould driver Tool constructor Pack. Engineer BI instr. developer Account manager Equipment driver Graphic Proj. mgr Sourcing network Production. driver M1 M5 M1 M5
HOT TEAMS High Performance Teams
All project teams are located physically in few buildings
John P. Kotter: Ottetrinsprocessen til at skabe større forandringer: 1. Etablering af en oplevelse af nødvendighed (konkurrence-sit. potentielle kriser etc.) 2. Oprettelse af den styrende koalition (etablere stærk gruppe/team) 3. Udvikling af en vision og en strategi 4.Formidling af forandringsvisionen (konstant kommunikation adfærd ) 5. Skabe grundlag for handling på bred basis (fjernelse af forhindringer ændring af systemer) 6. Generering af kortsigtede gevinster (planlægning af synlige præstationsforbedringer) 7. Konsolidering af resultater og produktion af mere forandring (opstramning af processen) 8. Forankring af nye arbejdsmåder i kulturen (bedre lederskab, midler til at sikre udvikling og kontinuitet i lederskabet
Design For Business Innovation Model
DESIGN FOR BUSINESS PROJECT OBJECTIVES: to improve the contribution to business of the design function by increasing their effectiveness & efficiency without losing creativity with a series of relating tools & processes including coaching & implementation for creative directors, creative leads, designers, marketing leads, project managers, PMD-LT, etc.
WHAT ARE THE BENEFITS OF A SHARED MODEL FOR INNOVATION Shared understanding & vocabulary across entire company Facilitate strategic dialogue, setting clear direction and objectives Company level Division level Portfolio level Project level Task level
Takeaway 1: Develop an Innovation Model that is tailored to your business and development needs - to secure a broad and holistic approach to development.
The LEGO Innovation Model takes a natural starting point in business and experience objectives.. Business
The LEGO Innovation Model takes a natural starting point in business and experience objectives.. Experience
It talks about 4 different TYPES of innovation. Business
It talks about 4 different TYPES of innovation. Product
It talks about 4 different TYPES of innovation. Communication
It talks about 4 different TYPES of innovation. Process
It comprises 3 different LEVELS of innovation.. Adjust
It comprises 3 different LEVELS of innovation.. Reconfigure
It comprises 3 different LEVELS of innovation.. Redefine
We can draw an Innovation profile for a project
.or an entire portfolio of projects.
.or an entire portfolio of projects.
And it can help us establish a picture of risks, resources and competencies needed to drive forward a project/portfolio of projects What does It take?
INNOVATION DEFINITION TEAM DYNAMIC & PROFILE vs PROJECT PROFILE Core Team PL
P3 2008 P3 CONCEPT FOUNDATION PG X: NAME OF CONCEPT P3 concept foundation contains: 1. concept objectives 2. business rational 3. experience rational 4. innovation objectives 5. business profile appendix A: launch & support overview appendix B: assortment overview 6. product profile 7. communication profile 8. procurement profile appendix C: risk log 9. recommendations & key tasks 10. resources profile
Design process and..project process
Takeaway 5: If you do not keep a scoreboard you are only practicing make sure you constantly measure performance up against set targets.. GO TO NXT GATE DESCRIPTION NO GO TO NXT GATE DESCRIPTION 1. 1. REASONS 2. REASONS 2. 3 3 EVALUATION CRITERIA PROGRESSION OBJECTIVES BUSINESS PRODUCT COMMUNICATION PROCESS RESOURCES
Innovation Workshop We want to lift THE POWER TO INNOVATE!
Innovation Workshop INNOVATION OUT OF THE BOX INSPIRATION TIME TO REFLECT BEYON EXPECTED GETTING SERRIOUS TALKING STRATEGY SETTING AMBTION SETTING DIRECTION
Innovation Workshop 2 LT STRATEGY WORKSHOP : ONE PAGER DOCUMENT: Gather all insights, foundation and material from P0 and Innovation Workshop 1 Foundation for LT discussion and workshop Briefing for PG1 Core Teams IT WORKS!
Vinder - Innovation Cup 2009 Store innovationsmestre LEGO, Gabriel og Oticon ligger alle meget højt, men nogenlunde på linje, når det gælder de fundamentale forhold for innovation samt innovationsprocesser. LEGO viser sig dog noget stærkere indenfor den sidste fase i innovationsprocessen, nemlig implementering. Det er nok en del af årsagen til, at når det kommer til innovationsresultater, så er der dog ikke noget at rafle om her er LEGO i en klasse for sig selv.
Innovation leadership (summary): Facilitation Diversitet (kompetencer) Kultur (adfærd-attitude) Strategiske pejlemærker Skabe merværdi i værdikæden
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