Strategic Performance Management of Technological Innovations/ CEMS MIM/ Dec. 3, 2013

Reinventing the Wheel

A Case Study by

Ekaterina Gritskevich | Aleksey Konovalenkov |

Anna Lisa Kurzbauer | Nikolay Semakov |

Tibor Verlics

Agenda

1. Company and Product

1. Overview of Daimler

2. The C-Class

2. Problem Statement

1. The New C-Class Ramp Up

2. Encountered Difficulties

3. Analysis of the Current State

1. Strategy Map

2. Knowledge Strategy Framework

3. Knowledge-Sharing Hostility

4. Recommendations

1. Timeline

2. Information Capital Improvements

3. Organization Capital Improvements

4. Human Capital Improvements

5. Impact Assessment (KPIs)

5. Conclusion

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1. Company and Product

3

1.1. Overview of Daimler One of the world’s most successful automotive companies since the birth of the automobile

•Wide product range

•International presence

•Strong position on all markets

•Mercedes-Benz Cars is the most

important division

•Major revenue driver

•Growing market

•Stable revenue growth rate

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1.2. The C-Class The best selling product of Mercedes-Benz was introduced in 2007

Total sales over 1,5 million

Produced in different plants for the different markets

New model is coming in 2014

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2. Problem Statement

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2.1. The New C-Class Ramp Up Its success depends on the transfer of technical know-how & thus requires sharing knowledge

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1st stages of network development: direction by Bremen

• Tacit knowledge sharing: international exchanges

• Creation of awareness: different programs

• Information flows: hierarchically via team leaders

• Communication tools: telephone-, video conferences,

Netview, common files (partially in English), workshops

2.2. Encountered Difficulties Internal communication problems are aggravated by external factors

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3. Analysis of the Current State

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3.1. Strategy Map How the key intangible assets contribute to the company’s overall value creation

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I O H

3.2. Knowledge Strategy Framework Understanding the internal gaps to be overcome in order to achieve sustainable advantage

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3.3. Knowledge-Sharing Hostility IT alone cannot solve the challenge of knowledge-sharing

KN Worker: reduction of own CA

Shop-floor level: underestimation of own knowledge, fear of evaluation,

respect for hierarchy & formal power

KN Worker: acceptance & “Not-Invented-Here” syndrome

Shop-floor level: perception of inferiority of colleagues’ solutions

Transmitter

Receiver

4. Recommendations

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4.1. Timeline Daimler should improve its intangible assets sequentially to leverage its CA

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Information Capital

• Integrated communication platform

Organization Capital

• Changes in processes

• Changes in leadership style

Human Capital

• Trainings

• Onboarding

• Hiring people with a good command of English

4.2. Information Capital Improvements Our recommendation is a state of the art integrated platform to leverage communication

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4.2. Information Capital Improvements Jive is one of the leading solutions for company social networks, used by many satisfied customers

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4.3. Organization Capital Improvements Alignment of business- with knowledge processes: Creating, sharing, applying, replicating

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Cross-plant problem solving

Posting arising problems to Jive

Involve all plants in the process

Shop floor discussions

Involvement of R&D

Workers’ engagement

Overcome cultural barriers

“Letter box”

Monitor flaws

4.3. Organization Capital Improvements Alignment of business- with knowledge processes: Creating, sharing, applying, replicating

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Translation

English as Jive language

Native speakers in US and SAR

Elimination of Ger←→Mand

Beijing cooperation

with US/SAR

‘Process step’ teams

Production steps division

Close team interaction

Increased motivation

4.4. Human Capital Improvements HR’s role in enhancing knowledge sharing within the company is crucial for long-term success

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Teach

IT training

Intercultural seminars

Communication trainings

Language courses

Motivate

Internal campaign

Promotion of excellence

Copied with pride

Rewards

4.5. Impact Assessment (KPIs) Indicators to measure the level of activity of proposed improvements

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Info

rmati

on

•Resources needed for the system

•No. of documents uploaded

•No. of updates

•No. of groups created

•Time to the first response

•No. of replies

•No. of replies from other PST

Org

an

izati

on

•Time to implement

the new ideas

•Resources needed for implementation

Hum

an

•No. of trainings taken

•No. of employees travelled

•No. of employees bringing in new ideas

•Employees’ evaluation of knowledge intensity

•No. of people a worker cooperates with

4.5. Impact Assessment (KPIs) Indicators to measure the outcomes of proposed improvements

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Info

rmati

on

Org

an

izati

on

•No. of repeating

complaints

•Time to produce new knowledge

•Time to solve the problems

•Best practices implemented

•Improved speed of processes

•No .of ideas from idea box taken to further consideration

•No. of submissions sent to R&D as a result of discussions

Hum

an

•Employee satisfaction

•Efforts to get the necessary information

•New ideas implemented

•Communication skills improvement

5. Conclusion Daimler should acknowledge the need to address the problem holistically, and not ”cure symptoms”

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Wheel we reinvent?

Wheel we reinvent?

We’ll C !

Appendix

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Adapted from: Kaplan, R. S. and D. P. Norton. (2004). Measuring the strategic readiness of intangible assets.

Financial perspective

Customer perspective

Internal

process perspective

Learning &

growth perspective