Leading Change for Strategy Execution -...
Transcript of Leading Change for Strategy Execution -...
Leading Change for Strategy Execution
Dr. Robert S. KaplanBaker Foundation Professor, Harvard Business School
The Balanced Scorecard: The Central Component in a New Strategy Execution Management System
Private Sector Organizations
"If we succeed, how will we look to our shareholders?”
"To achieve our vision, how must we look to
our customers?”
“How do we have a social impact with our
citizens/constituents?”
Mission (Customer) Perspective
Financial Perspective
Customer Perspective
Process
“How do we attract resources and authorization for our
mission?”
Support Perspective
Non Profit and Public Sector Organizations
���� 3
our customers?”
"To satisfy our customers and shareholders, at which processes must we excel?”
“How do we align our intangible assets to improve critical processes?”
“To have a social impact and to attract resources and support, at which processes must we excel?”
“How do we align our intangible assets to improve
critical processes?”
“How should we manage and allocate our resources for maximum social impact?”
Process Perspective
Learning & Growth
Process
Learning & Growth
Financial
The Management System for Strategy Execution Links Vision and Strategy to Operational Excellence
performance measures
1
36
• Mission, Values, Vision
• Strategic Analysis
• Strategy Formulation
DEVELOP THE STRATEGY
• Strategy Map / Themes
• Measures / Targets
• Initiative Portfolios
• Funding / Stratex
TRANSLATE THE STRATEGY
ALIGN THE ORGANIZATION
• Business Units
• Support Units
• Employees
• Board of Directors
• Profitability Analysis
• Strategy Correlations
• Emerging Strategies
TEST & ADAPT
Strategic Plan
• Strategy Map
• Balanced Scorecard
• Stratex
2
results
performance measures
Process
Initiative
EXECUTION
results
45
PLAN OPERATIONS
• Key process improvement
• Sales planning
• Resource capacity plan
• Budgeting
• Strategy Reviews
• Operating Reviews
MONITOR & LEARNOperating Plan
• Sales Forecast
• Resource Requirements
• Dashboards
• Budgets
Leadership: The Necessary and Perhaps Sufficient Co ndition for Successful Strategy Execution
LEADERS …
1. Establish DirectionDevelop a vision of the future along with strategies for producing the changes needed to achieve that vision.
2. Align PeopleCommunicate the direction to all employees, create coalitions that understand the vision and are committed to achieving it.
3. Motivate and InspireEncourage people to move in the right direction by appealing to basic human needs, values and emotions.
The Eight Step Process for Leading Successful Chang e:John Kotter, Leading Change (Harvard Business Press).
1. Establish a Sense of Urgency
2. Form a Powerful Guiding Coalition
3. Create the Vision for Change and a Strategy for Achieving It
4. Communicate the Vision and Strategy
5. Empower Others to Act on the Vision and Strategy
6. Produce Short-Term Wins
7. Sustain the Effort: Produce Still More Change
8. Institutionalize the New Culture
The Eight Step Process for Leading Successful Chang e:
1. Establish a Sense of Urgency
2. Form a Powerful Guiding Coalition
3. Create the Vision for Change and a Strategy for Achieving It
4. Communicate the Vision and Strategy
5. Empower Others to Act on the Vision and Strategy
6. Produce Short-Term Wins
7. Sustain the Effort: Produce Still More Change
8. Institutionalize the New Culture
John Kotter on Complacency versus Leading Change
• Complacency exists when people think what they are
doing is right and they don't need to change. The most
common cause of complacency is past success.
• In a world that is changing faster and faster all the time,
complacency is cancer. Not bad. Not a problem. Cancer .
• Well-known and often still highly respected companies have the disease, and
their futures aren’t pretty. Many people, including capable CEOs, don't recognize
this in their organizations—and even more don't see it in themselves. Success
and scale usually result in an inward focus, where people don't see the threats or
opportunities that lie just outside. They of course deny this, as do people in all
organizations. Just ask a crowd of people how many of them are complacent,
and see how many hands go up.
Leadership Must Overcome Complacency (We’re doing O K) and Communicate the Urgency for Change: “Why” and “Why Now”
Financial Challenges• Weak competitive position (profitability rank in industry)
• High costs
• Mediocre to poor quality
• Stagnant or declining revenues
Competitive ChallengesCompetitive Challenges• Traditional Competitors
• New Competitors
Technology Challenges• Lack of innovation
• Threat from emerging technologies
Regulatory and Environmental Challenges
The Eight Step Process for Leading Successful Chang e:John Kotter, Leading Change (Harvard Business Press).
1. Establish a Sense of Urgency
2. Form a Powerful Guiding Coalition
3. Create the Vision for Change and a Strategy for Achieving It
4. Communicate the Vision and Strategy
5. Empower Others to Act on the Vision and Strategy
6. Produce Short-Term Wins
7. Sustain the Effort: Produce Still More Change
8. Institutionalize the New Culture
2. Form the Guiding Coalition: Achieve Consensus and Commitment Among the Leadership Team
Senior leaders must concur on both the vision and the plan to carry out the strategy successfully
Strategy execution requires two pillars of support from leadership:
− Building consensus
Con
sens
us
Com
mitm
ent
− Building consensus
− Securing commitment Successful Strategy Implementation
Brian Baker, Mobil US Marketing & Refining Executive Vice President
“You could take our scorecard and give it to a competitor and it wouldn’t work. You had to have sweated through the hours and hours of work and effort that went behind the card to get the benefits from the measures. That’s what brings it to life. It’s got to become part of the company’s belief system, almost a religion – the benefits don’t come just from having a piece of don’t come just from having a piece of paper with a scorecard on it.”
The Eight Step Process for Leading Successful Chang e:John Kotter, Leading Change (Harvard Business Press).
1. Establish a Sense of Urgency
2. Form a Powerful Guiding Coalition
3. Create the Vision for Change and a Strategy for A chieving It
4. Communicate the Vision and Strategy
5. Empower Others to Act on the Vision and Strategy
6. Produce Short-Term Wins
7. Sustain the Effort: Produce Still More Change
8. Institutionalize the New Culture
3. Create the Vision for Change and a Strategy for A chieving It
The vision is a concise statement that defines an ambitious me asurable target (a Big Hairy Audacious Goal) and a date by which it mu st be achieved.
Having a stretch target and a date, not too far int o the future, creates the sense of urgency: We must start now on the trajectory to bre akthrough performance.
• Cigna Property and Casualty Insurance Company [when it was the least profitable P&C insurer] : “to be in the top quarter of profitability within 5 years”
• Large Apparel Retailer (with $8 billion in sales): “to achieve $20 billion in sales within 5 years”
• President John F. Kennedy (1962) for the US Space P rogram“to land a man on the moon and return him safely to earth by the end of the decade.”
Stage 1: Develop the Strategy
performance measures
1
36
• Mission, Values,
Vision
• Strategic Analysis
• Strategy Formulation
DEVELOP THE STRATEGY
• Strategy Map / Themes
• Measures / Targets
• Initiative Portfolios
• Funding / Stratex
TRANSLATE THE STRATEGY
ALIGN THE ORGANIZATION
• Business Units
• Support Units
• Employees
• Board of Directors
• Profitability Analysis
• Strategy Correlations
• Emerging Strategies
TEST & ADAPT
Strategic Plan
• Strategy Map
• Balanced Scorecard
• Stratex
2
results
performance measures
Process
Initiative
EXECUTION
results
45
PLAN OPERATIONS
• Key process improvement
• Sales planning
• Resource capacity plan
• Budgeting
• Strategy Reviews
• Operating Reviews
MONITOR & LEARNOperating Plan
• Sales Forecast
• Resource Requirements
• Dashboards
• Budgets
Case Study: Volkswagen do Brasil’s new strategy
Vision: Restore profitability and achieve #1 market share in Brazil by 2009
Advantage: by having our highly-motivated employees work collaboratively with our key suppliers, to produce
• innovatively designed,• high performance• competitively-priced, and• reliable vehicles • reliable vehicles
that are sold and serviced through the best dealer network in Brazil
Scope: to middle and upper-income consumers.
from… …to
Operational, Tactical Management focus Strategic
Fiat, Ford, General Motors CompetitionTraditional 3 + French, Japanese, Korean, and Chinese automakers
Losing money Financial performanceAchieving profitability, eventually an 18% ROCE
Declining: From # 1 to # 3 Market shareExpanding : Regaining #1 position in Brazil
Stale brand, reliable, well-engineered carsCompany brand and
imageExciting, innovatively-designed and high -performance vehicles
VW do Brasil’s Change AgendaHow must we change for our strategy to work?
image high -performance vehicles
Declining, below targeted performance Customer SatisfactionHighest among all auto manufacturers in Brazil
Slow, bureaucratic, hierarchicalManagement decision-
makingEmpowered employees making strategically-aligned local decisions
Not engaged Dealers and SuppliersPartners with VWB to achieve highest ratings in Brazil
Better , faster, cheaper ProcessesBetter and faster; high quality and low cost
Demoralized, alienated, adversarial EmployeesHighly motivated, collaborative, participative
• Mission, Values, Vision
• Strategic Analysis
• Strategy Formulation
Stage 2 of the Management System: Plan the Strateg y
performance measures
1
36
DEVELOP THE STRATEGY
• Strategy Map / Themes
• Measures / Targets
• Initiative Portfolios
• Funding / Stratex
PLAN THE STRATEGY
ALIGN THE ORGANIZATION
• Business Units
• Support Units
• Employees
• Board of Directors
• Profitability Analysis
• Strategy Correlations
• Emerging Strategies
TEST & ADAPT
Strategic Plan
• Strategy Map
• Balanced Scorecard
• Stratex
2
results
performance measures
Process
Initiative
EXECUTION
results
45
PLAN OPERATIONS
• Key process improvement
• Sales planning
• Resource capacity plan
• Budgeting
• Strategy Reviews
• Operating Reviews
MONITOR & LEARNOperating Plan
• Dashboards
• Sales Forecast
• Resource Requirements
• Budgets
Satisfy the customer’s
expectations
Improve company image
Create and manage a robust production volume strategy to adapt to industry
Achieve sustainable and positive
financial results
Achieve Market Share growth
Develop dealer organization into
more service
Guarantee customer oriented
innovation
Increase direct processes efficiency
VP Sales & MarketingMetrics:
2.1 Market Share2.2 Price Index 2.3 Contribution Margin2.4 Vertriebsleistung
VP Finance & Corporate StrategyMetrics:
1.1 EBITDA1.2 Return on Investment1.3 Operating Profit as % of Revenue1.4 Facility & Tool Investments1.5 Net Cash Flow
Director Quality Assurance Metrics:
3.1 Things Gone Wrong3.2 Repair per 1000 3.3 Costumer Satisfaction Index3.4 Audit Note
Director Corp. Affairs & PressMetrics:
4.1 Image Quality Index4.2 New Car Buyer4.3 Employees Image Index
VP Product DevelopmentMetrics:
VP OperationsMetric:
VP OperationsMetrics: 10.1 Accomplish Prod. Planning
Volkswagen do Brasil Balanced Scorecard: Metrics an d Accountability
Develop attractive and innovative product
portfolio
adapt to industry volatility
Achieve high performance culture
Become sectorial reference for authorities
and representative entities
more service direction
Guarantee reliable Supplier →
Manufacturer processes
Achieve launch management
efficiency
Increase indirect processes efficiency
innovation management efficiency
Develop sustainability as management principle
New
VP HR & OrganizationMetrics:
13.1 Gallup Index 13.2 Cooperation Barometer 13.3 Training hours/employee .
13.4 Fitness Index13.5 Executive Competence Index13.6 Cell Leaders Screening
Director GovernmentalAffairsMetrics:
14.1 Radar report 14.2 Agreements Success Index14.3 Representative Level in external entities
VP HR & OrganizationMetric:
15.1 Ethos Indicator
Director Product PlanningMetrics:
12.1 Brazilian Market Survey 12.2 Launching Strategy12.3 Product Portfolio Renew
VP Sales & MktMetrics: 5.1 High Performance Program .
5.2 Quality Index Service 5.3 Customer Satisfaction with Last Visit 5.4 Repeated Repair
6.1 Implementation of unique selling point
VP Product DevelopmentMetrics:
7.1 Releases at right moment7.2 Change of Parts at critical phases
Metric:
8.1 Hours per Vehicle
VP SupplyMetrics: 11.1 Cripple Index 11.2 Supply ProgramManagement 11.3 Quality RatesSupplier
VP HR & OrganizationMetrics: 9.1 Efficiency Indicator9.2 # of Kaizen Projects
Planning .
10.2 Achieve InstalledCapacity
Dashboard for Dr. Senn, Vice President Human Resour ces , the “objective owner” for “Achieve a High Performance C ulture.”
General Status Info
Achieve a High Performance Culture
Champion:Dr. J.-F. Senn
Projects Status
W = 30%
13.1 Gallup Index
13.2 CooperationBarometerW = 10% 2008 2009 2010
100%
Metrics YTDTarget FC (8+4)
13.3 Training hours/employee 100% 98%
2007 2008 2009 2010
100%
Establish a VW School of Excellence
100%
100%
PID for Cell Leaders
Fitness Contest
Summer Scholl
W = 15%
W = 15%
Page 13
W = 10%employee
W = 20%
13.4 Fitness Index 100%
2008 2009 2010
100%
13.5 Executive CompetenceIndex
13.6 Cell LeadersScreening
100%2008 2009 2010
100%
2009 2010
2007 2008 2009 2010
Establish a VW School of Excellence
Competence Appraisal Improvements
VOLKSWAGEN DO BRASILFC(8+4)
100%
100%
Each strategic objective has at least one strategic initiative selected to drive short-term improvements
General Status
Develop the structure, process and support for all training and development
programs for the Cell Leaders including more than 40 courses divided into classroom
training (29 courses) and online training (12 courses).
Scope Project Metric
Participants Index
ProjectEstablish a Volkswagen School of Excellence
Objective Project Metric
% Training Programs for Cell Leaders included
in the courses structure - Pre Requirement
(2009 - Based on Lider Executor II - 95%)
Unify and standardize training and development programs for
the Cell Leaders providing a continuous professional
improvement
92
10
2009 2010
Achieve High Performance Culture
80
2009 2010
New
Coordinator
R. Ramos
Planned Date Real Date Status
CW 07/10 CW 05/10
CW 12/10 CW 12/10
CW 14/10 CW 14/10
CW 17/10 CW 17/10
CW 22/10 CW 17/10
CW 26/10 CW 25/10
CW 28 to 52/10 on going
Sign-Off (R$000) Real (R$000) Status
Updated on:
by:
*CW = Calendar Week
R$V. Berdague
Information
CW 30/10 Investiments are related to: Content development;
Infrastructure and implementation.R$
Investiments on
Validate Reward process to Instructors
L. Moreira
A. Ferreira
Local HR Managers
Involved areas
Operations
Basic Module - Content Aplication
Presentation VP HR / VP Operations
Start Communication process: all Employees
Pre Requirement Module - Content Conclusion
Pre Requirement Module - Start Group (Leader Cell)
Courses content presentation at Werkleiterrunde
Dr. Senn CW* 07/10 CW 52/10
Project Team Main Milestones
Sponsor Start Date Final Due Date
2009 2010
The Eight Step Process for Leading Successful Chang e:John Kotter, Leading Change (Harvard Business Press).
1. Establish a Sense of Urgency
2. Form a Powerful Guiding Coalition
3. Create the Vision for Change and a Strategy for Achieving It
4. Communicate the Vision and Strategy
5. Empower Others to Act on the Vision and Strategy
6. Produce Short-Term Wins
7. Sustain the Effort: Produce Still More Change
8. Institutionalize the New Culture
Stage 3 of the Management System: Align the Organi zation
performance measures
36
• Mission, Values, Vision
• Stretch Targets
• Strategic Analysis
• Strategy Formulation
DEVELOP THE STRATEGY
• Strategy Map / Themes
• Measures / Targets
• Initiatives
• Funding / Stratex
TRANSLATE THE STRATEGY
ALIGN THE ORGANIZATION
• Business Units
• Support Units
• Employees
• Board of Directors
• Profitability Analysis
• Strategy Correlations
• Emerging Strategies
TEST & ADAPT
Strategic Plan
• Strategy Map
• Balanced Scorecard
• Stratex
21
results
performance measures
Process
Initiative
EXECUTION
results
4
5PLAN OPERATIONS
• Key process improvement
• Sales planning
• Resource capacity plan
• Budgeting
• Strategy Reviews
• Operating Reviews
MONITOR & LEARNOperating Plan
• Sales Forecast
• Resource Requirements
• Dashboards
• Budgets
Align employees to strategy. Communicate “seven tim es seven different ways”
Mr. Thomas Schmall, CEO of Volkswagen do Brasil used the strategy map when he addressed the meeting of 400 senior managers. In this way, he demonstrates his personal commitment to using the Balanced Scorecard as his strategy management system.
The VWB BSC project team introduces a robot, “Giga, ” as the brand for the new strategy execution system.
GIGA congratulates a visitor to the VWB plant about his understanding of the strategy.
Employees use a Learning Map to analyze the VWB str ategy and competitive environment during 90 minute training s essions
The Eight Step Process for Leading Successful Chang e:John Kotter, Leading Change (Harvard Business Press).
1. Establish a Sense of Urgency
2. Form a Powerful Guiding Coalition
3. Create the Vision for Change and a Strategy for Achieving It
4. Communicate the Vision and Strategy
5. Empower Others to Act on the Vision and Strategy
6. Produce Short-Term Wins
7. Sustain the Effort: Produce Still More Change
8. Institutionalize the New Culture
Stage 4 of the Management System: Plan Operations
performance measures
1
36
• Mission, Values, Vision
• Strategic Analysis
• Strategy Formulation
DEVELOP THE STRATEGY
• Strategy Map / Themes
• Measures / Targets
• Initiative Portfolios
• Funding / Stratex
TRANSLATE THE STRATEGY
ALIGN THE ORGANIZATION
• Business Units• Support Units• Employees
• Profitability Analysis
• Strategy Correlations
• Emerging Strategies
TEST & ADAPT
Strategic Plan
• Strategy Map
• Balanced Scorecard
• Stratex
2
results
performance measures
Process
Initiative
EXECUTION
results
45
PLAN OPERATIONS
• Key process improvements
• Dashboards• Budgeting
• Strategy Reviews
• Operating Reviews
MONITOR & LEARNOperating Plan
• Sales Forecast
• Resource Requirements
• Dashboards
• Budgets
Empower Others to Act on the Vision and StrategyAlign all organizational units and employees to the strategy.
Headquarters Scorecard
Scorecard Cascade
Shared Services
Business and
Scorecard Cascade
Shared Services
Departments
Teams & Individuals
Business and Regional Units
Departments
Teams & Individuals
Strategy MapCause-and-Effect Model
of Each Key Process
Web-based Dashboard of
metrics used to manage a
Key Process
THEME linked to
PROCESSPROCESS linked to
METRICS
METRICS improve
PROCESS
PROCESS supports
THEME
Dashboards articulate the critical link between str ategy management and operations management.
Identify operational processes key to executing strategy and manage those processes with frequent feedback on dashboard KPIs
A display of Top 500 dealer performance indicators is posted in the hall of VWB’s senior executive office suite.
The Eight Step Process for Leading Successful Chang e:John Kotter, Leading Change (Harvard Business Press).
1. Establish a Sense of Urgency
2. Form a Powerful Guiding Coalition
3. Create the Vision for Change and a Strategy for Achieving It
4. Communicate the Vision and Strategy
5. Empower Others to Act on the Vision and Strategy
6. Produce Short-Term Wins
7. Sustain the Effort: Produce Still More Change
8. Institutionalize the New Culture
VWB recognizes employees for outstanding local proj ects aligned to Balanced Scorecard objectives
More than 3,000 local projects enrolled for driving operational improvements.
The Eight Step Process for Leading Successful Chang e:John Kotter, Leading Change (Harvard Business Press).
1. Establish a Sense of Urgency
2. Form a Powerful Guiding Coalition
3. Create the Vision for Change and a Strategy for Achieving It
4. Communicate the Vision and Strategy
5. Empower Others to Act on the Vision and Strategy
6. Produce Short-Term Wins
7. Sustain the Effort: Produce Still More Change
8. Institutionalize the New Culture
Stage 5 of the Management System: Monitor and Lear n
performance measures
1
36
• Mission, Values, Vision
• Strategic Analysis
• Strategy Formulation
DEVELOP THE STRATEGY
• Strategy Map / Themes
• Measures / Targets
• Initiative Portfolios
• Funding / Stratex
TRANSLATE THE STRATEGY
ALIGN THE ORGANIZATION
• Business Units
• Support Units
• Employees
• Profitability Analysis
• Strategy Correlations
• Emerging Strategies
TEST & ADAPT
Strategic Plan
• Strategy Map
• Balanced Scorecard
• Stratex
2
���� 46
results
performance measures
Process
Initiative
EXECUTION
results
45
PLAN OPERATIONS
• Key process improvement
• Sales planning
• Resource capacity plan
• Budgeting
• Strategy Reviews
• Operating Reviews
MONITOR & LEARNOperating Plan
• Sales Forecast
• Resource Requirements
• Dashboards
• Budgets
Stages 6 of the Management System: Test, Learn, an d Adapt
performance measures
1
36
• Mission, Values, Vision
• Strategic Analysis
• Strategy Formulation
DEVELOP THE STRATEGY
• Strategy Map / Themes
• Measures / Targets
• Initiative Portfolios
• Funding / Stratex
TRANSLATE THE STRATEGY
ALIGN THE ORGANIZATION
• Business Units
• Support Units
• Employees
•Strategy Correlations•Emerging Strategies
TEST & ADAPT
Strategic Plan
• Strategy Map
• Balanced Scorecard
• Stratex
2
results
performance measures
Process
Initiative
EXECUTION
results
45
PLAN OPERATIONS
• Key process improvement
• Sales planning
• Resource capacity plan
• Budgeting
• Strategy Reviews• Operating Reviews
MONITOR & LEARNOperating Plan
• Sales Forecast
• Resource Requirements
• Dashboards
• Budgets
7. Sustain the Effort: Produce Still More ChangeContinually Test and Adapt the Strategy
Strategy Learning Loop
FinancialPerspective
CustomerPerspective
InternalPerspective
Learning Perspective
The Strategy
incorporate learning
update the strategy
• Are the data consistent with our strategic hypotheses?
• Has the environment changed in a fundamental way?
• Have new strategic options emerged?
Test and Adapt the Strategy
48
Performance
Initiatives & Programsoutput
result
Strategy Review Loop
corrections
input
Financial
Cust
Internal
L&G
Strategic Objectives
� Financially Strong
� Delight the Consumer
� Win-Win Relationship
� Safe & Reliable
� Competitive Supplier
� Motivated & Prepared
Strategic Measures
� Return of Capital Employed
� Mystery Shopper Rating
� Dealer/Pioneer Gross Profit Split
� Manufacturing Reliability Index
� Days Away from Work Rate
� Laid Down Cost vs. Best Competitive
Ratable Supply
� Strategic Competency Availability
Balanced Scorecardoptions emerged?
Strategy Review Questions • Why did we miss the target?
• What correcting actions should we consider?
• Are initiatives on schedule?
• Do you need more resources?
• Would an multi-functional task force help?
The Eight Step Process for Leading Successful Chang e:John Kotter, Leading Change (Harvard Business Press).
1. Establish a Sense of Urgency
2. Form a Powerful Guiding Coalition
3. Create the Vision for Change and a Strategy for Achieving It
4. Communicate the Vision and Strategy
5. Empower Others to Act on the Vision and Strategy
6. Produce Short-Term Wins
7. Sustain the Effort: Produce Still More Change
8. Institutionalize the New Culture
8. Institutionalize the New Culture: A New Strategy Management Office Coordinates the Six Stage Management System
performance measures
1
3
6
• Mission, Values,
Vision
• Strategic Analysis
• Strategy
Formulation
DEVELOP THE
STRATEGY
• Strategy Map /
Themes
• Measures / Targets
• Initiative Portfolios
• Funding / Stratex
TRANSLATE THE
STRATEGY
ALIGN THE
ORGANIZATION
• Business Units
• Support Units
• Employees
• Profitability
Analysis
• Strategy
Correlations
• Emerging
Strategies
TEST & ADAPT
Strategic Plan
• Strategy Map
• Balanced
Scorecard
• Stratex
2
Plan the Strategy:
Develop, Translate and Align
(Stages 1-3)
results
performance measures
Process
Initiative
EXECUTION
results
4
5
PLAN OPERATIONS
• Key process
improvement
• Sales planning
• Resource capacity plan
• Budgeting
• Strategy Reviews
• Operating Reviews
MONITOR & LEARN
Operating Plan
• Sales Forecast
• Resource
Requirements
• Dashboards
• Budgets
Execute the Strategy:Link to Operations,
Monitor, Learn and Test
(Stages 4-6)
SMO
VW do Brasil established a new Strategy Management Office
Strategy Formulation
O. Garcia
Strategy/BSC Committee
T. Schmall / J.-F. Senn / C. Isensee
BSC Management
C. Davies
E. BarrosG. Merendi
CorporateAffairs and
Press Relations
H. Araujo
HR &Organization
Finance Operations Sales &Marketing
Supply Product Development
QualityAssurance
KaizenGovernmentAffaris
Legal Affaris
Presidency
Environment
ProductPlanning
InformationTechnology
Autovision
BSC Team
Volkswagen do Brasil Performance Improvements
Measure
2006
(pre-BSC) 2008 2010
Revenue (billions) € 5.2 € 7.0 € 9.2
Profit before taxes (index) 100 443 425
Return-on-Investment 100 900 462
Domestic Sales units 413,000 585,000 697,000
Production (units) 594,000 717,000 825,000
Market share (autos) #2 #1 #2
Employee engagement index 100 200 230
Executive engagement 100 600 680