Developing your Centre of Excellence
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Transcript of Developing your Centre of Excellence
“Developing CoE to accelerate the delivery strategy and optimize delivery performance”
September, 2011
Fast Facts on Kraft Foods
• Approximately $48 billion in revenue
• World’s #2 food company, #1 in North America
• 11 brands with more than $1 billion in revenue
• Approximately 140,000 employees
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Kraft Foods Culture
• Independent & accountable Business Units – incented based on performance
• Regional operating model
• Operational flexibility: acquisitions & divestitures
• Collaborative environment: both the “what” and the “how” is measured
3
is measured
• Kraft Foods values:
We inspire trust
We act like owners
We keep it simple
We are open and inclusive
We tell it like it is
We lead from the head and the heart
We discuss, we decide, we deliver
Enterprise Outsourcing Philosophy
• Kraft has chosen to focus on core competencies and outsource supporting services whenever possible
• Kraft BUs and Functions are governed independently requiring a decentralized approach to outsourcingrequiring a decentralized approach to outsourcing– Functions and businesses are free to independently explore and develop outsourcing relationships for delivery of services
– Each function or business will govern its own outsourcing relationship with the advice and support of the BPO CoE
• The BPO CoE will own and track the overall success of the enterprise outsourcing strategy
BPO CoE at a glance
• In 2009, KET sponsored the creation of a Global BPO CoE using key criteria:
• Centralized, cost-effective global expertise development and knowledge retention
• Efficiency of implementation and optimization of value gain
• Objectivity of Kraft-specific recommendation
• Service oriented / non-mandate operating principles
• The BPO CoE team consists of 25 Kraft SMEs with direct outsourcing experience
gained both internally and externally)
• Operations in Northfield, IL and Mumbai, India
• BPO Full Engagements: – 2006 – 1 (ITO)
– 2008 – 2 (ITO, Facilities)
– 2009 – 3 (ITO, Facilities, HRAO)
– 2010 – 5 (ITO, Facilities, HRAO, Procurement, F&A Cadbury)
– 2011/ 2012 working on 2 incremental opportunities
• BPO Consulting Engagements consists of multiple assignments on an as-needed basis
CentralizedAll BPO support
in one organization
DecentralizedBPO operations within eachFunction with Best Practice
network
HybridConsultative
CoE delivering someBPO support services
» One organization that manages and delivers BPO services centrally
» Single governance team/organization –
» Centralized Center of Excellence provides guidance and direction to distributed teams
» Matrixed responsibility for key
» Decentralized governance teams with high degree of autonomy
» Centralized governance
Outsourcing Operating Models
team/organization –direct reporting & responsibility for governance efforts
» Distributed governance/service management teams –solid line reporting relationship to central team
» Matrixed responsibility for key functional areas and processes
» CoE has dotted-line reporting relationships to host function
» Key governance processes and relationships split between BPO CoE and Host Function
» Centralized governance expertise, consults on process standardization, and best practices
» Governance process management and execution is decentralized
© EquaTerra 2008. All rights are reserved
Copyright
Our Approach
BPO Engagement Types: Full vs. Partial
2.aNew Initiative
1.b Current
Engagement
2.b Current
Engagement
1.Major BPO 2. Partial BPO Project
Categorization
Stage:
- Size / Scope / Complexity
- BPO vs. out-tasking
- Bus objectives
- Resource requirements
1.a New Initiative
1
2
BPO Full EngagementCoE Involvement in all stages of
BPO life-cycle
BPO Consulting
Engagement
or
BPO CoE
On-Going
Engagement
Stage
- Execution
- On-going Contract Mgt
BPO Consulting
Stage
- Strategy Development
- Recommendation
- Tools
BPO Partial
Engagement:
CoE consulting services on an
as needed basis
Procurement
Host Operations
Host Finance
Etc
Etc
2
3
+
Roles and Responsibilities
Role Responsibilities
Host Function Owns services being outsourced, Client of BPO CoE
Leads assessment and implementation…, accountable for services and costs
BPO CoE CoE brings process expertise and thought
Provides consulting services, leads some processes, meets expertise and thought
leadershipleads some processes, meets Client’s requirements
Other Support Functions
Provide support as needed to host function and BPO CoE
Provide expertise from their discipline (Legal, HR, IS, Finance)
Provider Provide services per contract
Meet Service Level Agreements
8
Service Towers
• Service Scope and Metrics Refinement
• Performance Measurement
• Client Satisfaction Measurement
• Project Initiation and Authorization
• Program Infrastructure Setup
• Program Issue Escalation and Resolution
• Consult on / Lead Sourcing Strategy Development
• Sourcing
• Negotiations
• Contracting
• Financial Business Case Development
• Financial processes / documentation
• Financial Performance Mgt
Program
Management
Financial
Management
Sourcing & Contract
Management
Measurement
Management
•Governance Processes and Tools
•Change Management
•Relationship Mgt
• Risk and Compliance Mgt
• CI
Governance
Management
Measurement • Resource Requirement Planning
• Project Mgt / PMO
• Compliance
• Benchmarking
Performance Mgt
Operation Management
• CI
• BPO Information Sharing/ and Innovation
• Transition Mgt.
• Steady State Operations
• Local vendor Management
BPO Lifecycle Wheel
Assessment
and SourcingTransition
- Solution Design
- Provider selection
- Contracting
- Teams Dev
- Communication
- Implementation
- Change Mgt
- Communication
- Hand-offs
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Transformation
& Value
Delivery
Strategy
Refresh- CI
- SRM
- Benchmark
- Measurement
- Reassessment
- Mkt. Evaluation
- Sourcing Strategy
BPO CoE Full Engagement
Transition
Transformation & Value Delivery
Strategy Refresh
Lifecycle Phase
1
Sourcing &
Contract Mgt
HIGH
Finance
HIGH
Measure- ment
MED
Program Mgt
LOW
Governance
MED
Operations
LOW
Assessment and
Sourcing
BPO COE Service Towers
2
3
4
MED
LOW
HIGH
HIGH
LOW
HIGH
HIGH
MED
LOW
HIGH
MED
LOW
HIGH
HIGH
LOW
HIGH
HIGH
LOW
Questions…