Peter EvansDirector of Process ExcellenceMærsk Line Northern Europe

From “Swamp To Summit”Understanding Culture & Organisational Change

(A Virgin Media Case Study)

A diversified global conglomerate with activities mainly in shipping and energy industries

Founded in 1904 by Mr Arnold Peter Møller

Headquarters in Copenhagen, Denmark

Approximately 89,000 employees in 130 countries

2013 revenue: USD 47.4bn (MSL c$27bn)

Around 76,000 shareholders. Controlling stake heldby A.P. Møller and Chastine Mc-Kinney Møller Foundation

Part of a Diversified Group (A.P. Møller–Mærsk)

1. Maersk Line

2. APM Terminals

3. Maersk Oil

4. Maersk Drilling

5. Maersk Supply Service

6. Maersk Tankers

7. Damco

8. Svitzer

9. Maersk Container Industry

10. Dansk Supermarket

11. Danske Bank

3

5

2

1

7

8

6

4

9

10

11

Container activities ● Terminal activities ● Oil & Gas activities ● Tankers, offshore and other shipping activities ● Retail activity ● Other businesses

If all the Maersk Line containers were stacked on top of each other, they would reach approximately 2,500 kilometres high, equivalent to stacking 8,550 Eiffel Towers on top of each other.

A PS-class vessel such as the EMMA MAERSK can carry15,550 full 20-foot containers. That equals a train 92 kilometres long.

A single 20 foot container can hold about 48,000 bananas.So, in theory, a PS-vessel like the EMMA MÆRSK could transport approximately 746 million bananas in a single voyage.

The anchor of a PS-class vessel weighs 29 tons,equivalent to the weight of five adult African elephants.

Interesting Facts

After 20+ years in Change & Continuous Improvement what have I learned?:

”We work for the companies we work for not the companies we wish we work for!”

i.e. All Change is Situational!

Put another way:

• For any journey we all need to know a few things

• Where are we starting from?

• Where are we going to?

• What hazzards await us on our journey?

• What tools, skills, capabilities we will need to

get there?

• What will we do when we get there?

How did we get started at Virgin Media?

• It started with a simple but disarming question:

• So why are we doing this improvement stuff?

• Once you start to answer that question it becomes obvious that there is a journey involved:

• How do we get from here to there?

• Then you either try to figure it out for yourself or, if you’re sensible, you go look at other examples:

• Who’s doing what and where?

Research approaches

• At Virgin Media we looked at:

– CMMI

– EFQM

– Baldridge

– ISO 9000

– TPS etc…….

We reached the simple conclusion that we needed a maturity model and that it should reflect ”Virgin Media Language”

Find a model that works for your business:

The Virgin Media Journey to Operational Excellence

But what does the maturity model look like? Categories

Maturity LevelsCustomer Strategy &

LeadershipPeople Skills & Resources

Process & Performance Measurement

SupplierChange Management & Continuous Improvement

1. Lost

2. The Swamp

3. The Trail

4. Base Camp

5. The Climb

6. The Summit

Behind the motivational story we must always talk with data

The output has a number of purposes:1. Show where we are today

0,0

1,0

2,0

3,0

4,0

5,0

6,0

CustomerAwareness

SupplierAwareness

CapacityPlanning

SkillsManagement

ProcessManagement

OperationalCommunication

ProductivityManagement

Quality & RiskManagement

DeliveryManagement

WorkplaceEnvironment

ImprovementBasics

Work Organisation

People PerformanceManagement

ManagingCosts

Leadership

TM Training& Development

ManagingTechnology

Operational ExcellenceBuilding Blocks

2. Show a plan for moving along the journey

Milestone/Deliverable

Assoc'd

Risks

Assoc'd

Issues

RAG Status

01-mar-13

08-mar-13

15-mar-13

22-mar-13

29-mar-13

05-

apr-13

12-

apr-13

19-

apr-13

26-

apr-13

03-maj-13

10-maj-13

17-maj-13

24-maj-13

31-maj-13

07-jun-13

14-jun-13

21-jun-13

28-jun-13

1 0 0 Green                                    2 2 0 Green                                    3 0 0 Closed                                    4 0 0 Closed                                    5 0 0 Green                                    

6 0 0 Green                                    

7 0 0 Green                                    8 0 0 Green                                    9 0 0 Closed                                    

10 0 0 Green                                    

11 0 0 Amber                                    

12 0 0 Amber                                    

13 0 0 Closed                                    

3. Identify Capability gaps that need to be

closed

Then STICK TO YOUR GUNS!

• Do Not compromise on the use of your chosen model

• Don’t assume your model won’t change

• Keep validating, internally and externally

• Ensure your team are rigorously trained

• Ensure you calibrate often

• Tie movement along your journey to tangible

business benefits

• Keep the comms campaign going

What Learned So-Far?

• Understanding of what was needed to get to the ”Summit” wasn’t really there...

Or at least not enough to pull us to the top

• Tool is still used and the first part of the journey is absolutely still worthwhile...

>20% Productivity everywhere we went... $ Benefits round every corner...

• Capability development key to the gains made.. Educational and motivational to

the point where demand constantly outstripped supply...

• It’s easy to get carried away at the bottom of the mountain while the real

transformational changes are made by approaching the top!

So what about my new world?• The Top-Down Journey has actually begun...

• But there’s quite a gap between top level thinking and bottom level process capability,

which has it’s own dangers...

• Maersk Line Business Operating System (MLBOS) in early stages of deployment...(Function

oriented but in re-design)

• There is no doubt in my mind that we are making a difference in ML and doing that is

enormous fun!.... And a little hard work..

”Every day is a learning day!” Which is as it should be

When top level guys look down, they see only muck; When bottom level guys look up, they see only backsides…

Thank you!!

Peter R Evanspeter.ronald.evans@maersk.com004523459751